diff --git a/src/main/kotlin/com/amazon/opendistroforelasticsearch/indexstatemanagement/ManagedIndexRunner.kt b/src/main/kotlin/com/amazon/opendistroforelasticsearch/indexstatemanagement/ManagedIndexRunner.kt
index 823ffe2c0..19a3ad4fe 100644
--- a/src/main/kotlin/com/amazon/opendistroforelasticsearch/indexstatemanagement/ManagedIndexRunner.kt
+++ b/src/main/kotlin/com/amazon/opendistroforelasticsearch/indexstatemanagement/ManagedIndexRunner.kt
@@ -45,6 +45,7 @@ import com.amazon.opendistroforelasticsearch.indexstatemanagement.util.getAction
 import com.amazon.opendistroforelasticsearch.indexstatemanagement.util.getStartingManagedIndexMetaData
 import com.amazon.opendistroforelasticsearch.indexstatemanagement.util.getStateToExecute
 import com.amazon.opendistroforelasticsearch.indexstatemanagement.util.getCompletedManagedIndexMetaData
+import com.amazon.opendistroforelasticsearch.indexstatemanagement.util.getUpdatedActionMetaData
 import com.amazon.opendistroforelasticsearch.indexstatemanagement.util.hasDifferentJobInterval
 import com.amazon.opendistroforelasticsearch.indexstatemanagement.util.hasTimedOut
 import com.amazon.opendistroforelasticsearch.indexstatemanagement.util.hasVersionConflict
@@ -233,6 +234,7 @@ object ManagedIndexRunner : ScheduledJobRunner,
         val state = policy.getStateToExecute(managedIndexMetaData)
         val action: Action? = state?.getActionToExecute(clusterService, scriptService, client, managedIndexMetaData)
         val step: Step? = action?.getStepToExecute()
+        val currentActionMetaData = action?.getUpdatedActionMetaData(managedIndexMetaData, state)
 
         // If Index State Management is disabled and the current step is not null and safe to disable on
         // then disable the job and return early
@@ -241,11 +243,11 @@ object ManagedIndexRunner : ScheduledJobRunner,
             return
         }
 
-        if (action?.hasTimedOut(managedIndexMetaData.actionMetaData) == true) {
+        if (action?.hasTimedOut(currentActionMetaData) == true) {
             val info = mapOf("message" to "Action timed out")
             logger.error("Action=${action.type.type} has timed out")
             val updated = updateManagedIndexMetaData(managedIndexMetaData
-                .copy(actionMetaData = managedIndexMetaData.actionMetaData?.copy(failed = true), info = info))
+                .copy(actionMetaData = currentActionMetaData?.copy(failed = true), info = info))
             if (updated) disableManagedIndexConfig(managedIndexConfig)
             return
         }
@@ -255,7 +257,7 @@ object ManagedIndexRunner : ScheduledJobRunner,
             return
         }
 
-        val shouldBackOff = action?.shouldBackoff(managedIndexMetaData.actionMetaData, action.config.configRetry)
+        val shouldBackOff = action?.shouldBackoff(currentActionMetaData, action.config.configRetry)
         if (shouldBackOff?.first == true) {
             // If we should back off then exit early.
             logger.info("Backoff for retrying. Remaining time ${shouldBackOff.second}")
@@ -282,9 +284,7 @@ object ManagedIndexRunner : ScheduledJobRunner,
         val startingManagedIndexMetaData = managedIndexMetaData.getStartingManagedIndexMetaData(state, action, step)
         val updateResult = updateManagedIndexMetaData(startingManagedIndexMetaData)
 
-        val actionMetaData = startingManagedIndexMetaData.actionMetaData
-
-        if (updateResult && state != null && action != null && step != null && actionMetaData != null) {
+        if (updateResult && state != null && action != null && step != null && currentActionMetaData != null) {
             // Step null check is done in getStartingManagedIndexMetaData
             step.execute()
             var executedManagedIndexMetaData = startingManagedIndexMetaData.getCompletedManagedIndexMetaData(action, step)
diff --git a/src/test/kotlin/com/amazon/opendistroforelasticsearch/indexstatemanagement/action/ActionTimeoutIT.kt b/src/test/kotlin/com/amazon/opendistroforelasticsearch/indexstatemanagement/action/ActionTimeoutIT.kt
index a667ac43a..8f94b5741 100644
--- a/src/test/kotlin/com/amazon/opendistroforelasticsearch/indexstatemanagement/action/ActionTimeoutIT.kt
+++ b/src/test/kotlin/com/amazon/opendistroforelasticsearch/indexstatemanagement/action/ActionTimeoutIT.kt
@@ -76,4 +76,60 @@ class ActionTimeoutIT : IndexStateManagementRestTestCase() {
             )
         }
     }
+
+    // https://github.com/opendistro-for-elasticsearch/index-management/issues/130
+    fun `test action timeout doesn't bleed over into next action`() {
+        val indexName = "${testIndexName}_index_1"
+        val policyID = "${testIndexName}_testPolicyName_1"
+        val testPolicy = """
+        {"policy":{"description":"Default policy","default_state":"rolloverstate","states":[
+        {"name":"rolloverstate","actions":[{"timeout": "5s","open":{}},{"timeout":"1s","rollover":{"min_doc_count":100}}],
+        "transitions":[]}]}}
+        """.trimIndent()
+
+        createPolicyJson(testPolicy, policyID)
+
+        createIndex(indexName, policyID, "some_alias")
+
+        val managedIndexConfig = getExistingManagedIndexConfig(indexName)
+        // Change the start time so the job will trigger in 2 seconds.
+        // First execution. We need to initialize the policy.
+        updateManagedIndexConfigStartTime(managedIndexConfig)
+
+        waitFor {
+            assertPredicatesOnMetaData(
+                listOf(indexName to listOf(ManagedIndexMetaData.POLICY_ID to policyID::equals)),
+                getExplainMap(indexName),
+                strict = false
+            )
+        }
+
+        // the second execution we move into open action, we won't hit the timeout as this is the execution that sets the startTime
+        updateManagedIndexConfigStartTime(managedIndexConfig)
+
+        val expectedOpenInfoString = mapOf("message" to "Successfully opened index").toString()
+        waitFor {
+            assertPredicatesOnMetaData(
+                listOf(indexName to listOf(ManagedIndexMetaData.INFO to fun(info: Any?): Boolean = expectedOpenInfoString == info.toString())),
+                getExplainMap(indexName),
+                strict = false
+            )
+        }
+
+        // wait 5 seconds for the timeout from the first action to have passed
+        Thread.sleep(5000L)
+
+        // the third execution we move into rollover action, we should not hit the timeout yet because its the first execution of rollover
+        // but there was a bug before where it would use the startTime from the previous actions metadata and immediately fail
+        updateManagedIndexConfigStartTime(managedIndexConfig)
+
+        val expectedRolloverInfoString = mapOf("message" to "Attempting to rollover").toString()
+        waitFor {
+            assertPredicatesOnMetaData(
+                listOf(indexName to listOf(ManagedIndexMetaData.INFO to fun(info: Any?): Boolean = expectedRolloverInfoString == info.toString())),
+                getExplainMap(indexName),
+                strict = false
+            )
+        }
+    }
 }