diff --git a/server/src/main/java/org/elasticsearch/cluster/routing/allocation/AllocationService.java b/server/src/main/java/org/elasticsearch/cluster/routing/allocation/AllocationService.java
index c688a120a8b6a..d0a3a6ea63bbb 100644
--- a/server/src/main/java/org/elasticsearch/cluster/routing/allocation/AllocationService.java
+++ b/server/src/main/java/org/elasticsearch/cluster/routing/allocation/AllocationService.java
@@ -337,16 +337,16 @@ public CommandsResult reroute(final ClusterState clusterState, AllocationCommand
         allocation.debugDecision(true);
         // we ignore disable allocation, because commands are explicit
         allocation.ignoreDisable(true);
-        RoutingExplanations explanations = commands.execute(allocation, explain);
-        // we revert the ignore disable flag, since when rerouting, we want the original setting to take place
-        allocation.ignoreDisable(false);
-        // the assumption is that commands will move / act on shards (or fail through exceptions)
-        // so, there will always be shard "movements", so no need to check on reroute
 
         if (retryFailed) {
             resetFailedAllocationCounter(allocation);
         }
 
+        RoutingExplanations explanations = commands.execute(allocation, explain);
+        // we revert the ignore disable flag, since when rerouting, we want the original setting to take place
+        allocation.ignoreDisable(false);
+        // the assumption is that commands will move / act on shards (or fail through exceptions)
+        // so, there will always be shard "movements", so no need to check on reroute
         reroute(allocation);
         return new CommandsResult(explanations, buildResultAndLogHealthChange(clusterState, allocation, "reroute commands"));
     }
diff --git a/server/src/test/java/org/elasticsearch/cluster/routing/allocation/RetryFailedAllocationTests.java b/server/src/test/java/org/elasticsearch/cluster/routing/allocation/RetryFailedAllocationTests.java
new file mode 100644
index 0000000000000..1ca516da26286
--- /dev/null
+++ b/server/src/test/java/org/elasticsearch/cluster/routing/allocation/RetryFailedAllocationTests.java
@@ -0,0 +1,97 @@
+/*
+ * Licensed to Elasticsearch under one or more contributor
+ * license agreements. See the NOTICE file distributed with
+ * this work for additional information regarding copyright
+ * ownership. Elasticsearch licenses this file to you under
+ * the Apache License, Version 2.0 (the "License"); you may
+ * not use this file except in compliance with the License.
+ * You may obtain a copy of the License at
+ *
+ *    http://www.apache.org/licenses/LICENSE-2.0
+ *
+ * Unless required by applicable law or agreed to in writing,
+ * software distributed under the License is distributed on an
+ * "AS IS" BASIS, WITHOUT WARRANTIES OR CONDITIONS OF ANY
+ * KIND, either express or implied.  See the License for the
+ * specific language governing permissions and limitations
+ * under the License.
+ */
+
+package org.elasticsearch.cluster.routing.allocation;
+
+import org.elasticsearch.ElasticsearchException;
+import org.elasticsearch.Version;
+import org.elasticsearch.cluster.ClusterName;
+import org.elasticsearch.cluster.ClusterState;
+import org.elasticsearch.cluster.ESAllocationTestCase;
+import org.elasticsearch.cluster.metadata.IndexMetaData;
+import org.elasticsearch.cluster.metadata.MetaData;
+import org.elasticsearch.cluster.node.DiscoveryNodes;
+import org.elasticsearch.cluster.routing.RoutingTable;
+import org.elasticsearch.cluster.routing.ShardRouting;
+import org.elasticsearch.cluster.routing.ShardRoutingState;
+import org.elasticsearch.cluster.routing.allocation.command.AllocateReplicaAllocationCommand;
+import org.elasticsearch.cluster.routing.allocation.command.AllocationCommands;
+import org.elasticsearch.cluster.routing.allocation.decider.MaxRetryAllocationDecider;
+import org.elasticsearch.common.settings.Settings;
+
+import java.util.Collections;
+import java.util.List;
+
+import static org.hamcrest.Matchers.equalTo;
+import static org.hamcrest.Matchers.sameInstance;
+
+public class RetryFailedAllocationTests extends ESAllocationTestCase {
+
+    private MockAllocationService strategy;
+    private ClusterState clusterState;
+    private final String INDEX_NAME = "index";
+
+    @Override
+    public void setUp() throws Exception {
+        super.setUp();
+        MetaData metaData = MetaData.builder().put(IndexMetaData.builder(INDEX_NAME)
+            .settings(settings(Version.CURRENT)).numberOfShards(1).numberOfReplicas(1)).build();
+        RoutingTable routingTable = RoutingTable.builder().addAsNew(metaData.index(INDEX_NAME)).build();
+        clusterState = ClusterState.builder(ClusterName.DEFAULT).metaData(metaData).routingTable(routingTable)
+            .nodes(DiscoveryNodes.builder().add(newNode("node1")).add(newNode("node2"))).build();
+        strategy = createAllocationService(Settings.EMPTY);
+    }
+
+    private ShardRouting getPrimary() {
+        return clusterState.getRoutingTable().index(INDEX_NAME).shard(0).primaryShard();
+    }
+
+    private ShardRouting getReplica() {
+        return clusterState.getRoutingTable().index(INDEX_NAME).shard(0).replicaShards().get(0);
+    }
+
+    public void testRetryFailedResetForAllocationCommands() {
+        final int retries = MaxRetryAllocationDecider.SETTING_ALLOCATION_MAX_RETRY.get(Settings.EMPTY);
+        clusterState = strategy.reroute(clusterState, "initial allocation");
+        clusterState = strategy.applyStartedShards(clusterState, Collections.singletonList(getPrimary()));
+
+        // Exhaust all replica allocation attempts with shard failures
+        for (int i = 0; i < retries; i++) {
+            List<FailedShard> failedShards = Collections.singletonList(
+                new FailedShard(getReplica(), "failing-shard::attempt-" + i,
+                    new ElasticsearchException("simulated"), randomBoolean()));
+            clusterState = strategy.applyFailedShards(clusterState, failedShards);
+            clusterState = strategy.reroute(clusterState, "allocation retry attempt-" + i);
+        }
+        assertThat("replica should not be assigned", getReplica().state(), equalTo(ShardRoutingState.UNASSIGNED));
+        assertThat("reroute should be a no-op", strategy.reroute(clusterState, "test"), sameInstance(clusterState));
+
+        // Now allocate replica with retry_failed flag set
+        AllocationService.CommandsResult result = strategy.reroute(clusterState,
+            new AllocationCommands(new AllocateReplicaAllocationCommand(INDEX_NAME, 0,
+                getPrimary().currentNodeId().equals("node1") ? "node2" : "node1")),
+            false, true);
+        clusterState = result.getClusterState();
+
+        assertEquals(ShardRoutingState.INITIALIZING, getReplica().state());
+        clusterState = strategy.applyStartedShards(clusterState, Collections.singletonList(getReplica()));
+        assertEquals(ShardRoutingState.STARTED, getReplica().state());
+        assertFalse(clusterState.getRoutingNodes().hasUnassignedShards());
+    }
+}