diff --git a/server/src/internalClusterTest/java/org/elasticsearch/indices/recovery/SnapshotBasedIndexRecoveryIT.java b/server/src/internalClusterTest/java/org/elasticsearch/indices/recovery/SnapshotBasedIndexRecoveryIT.java
index 75a1d35b853a8..48aa03c07abe3 100644
--- a/server/src/internalClusterTest/java/org/elasticsearch/indices/recovery/SnapshotBasedIndexRecoveryIT.java
+++ b/server/src/internalClusterTest/java/org/elasticsearch/indices/recovery/SnapshotBasedIndexRecoveryIT.java
@@ -73,6 +73,7 @@
 import java.util.Map;
 import java.util.concurrent.CountDownLatch;
 import java.util.concurrent.TimeUnit;
+import java.util.concurrent.atomic.AtomicBoolean;
 import java.util.concurrent.atomic.AtomicInteger;
 import java.util.concurrent.atomic.AtomicLong;
 import java.util.concurrent.atomic.AtomicReference;
@@ -1010,6 +1011,70 @@ public void testRecoveryReEstablishKeepsTheGrantedSnapshotFileDownloadPermit() t
         });
     }
 
+    public void testRecoveryRetryKeepsTheGrantedSnapshotFileDownloadPermit() throws Exception {
+        executeRecoveryWithSnapshotFileDownloadThrottled((indices,
+                                                          sourceNode,
+                                                          targetNode,
+                                                          targetMockTransportService,
+                                                          recoverySnapshotFileRequests,
+                                                          awaitForRecoverSnapshotFileRequestReceived,
+                                                          respondToRecoverSnapshotFile) -> {
+            MockTransportService sourceMockTransportService =
+                (MockTransportService) internalCluster().getInstance(TransportService.class, sourceNode);
+
+            CountDownLatch startRecoveryRetryReceived = new CountDownLatch(1);
+            AtomicBoolean delayRecoveryExceptionSent = new AtomicBoolean();
+            sourceMockTransportService.addRequestHandlingBehavior(PeerRecoverySourceService.Actions.START_RECOVERY,
+                (handler, request, channel, task) -> {
+                if (delayRecoveryExceptionSent.compareAndSet(false, true)) {
+                    channel.sendResponse(new DelayRecoveryException("delay"));
+                } else {
+                    startRecoveryRetryReceived.countDown();
+                    handler.messageReceived(request, channel, task);
+                }
+            });
+
+            String indexRecoveredFromSnapshot1 = indices.get(0);
+            assertAcked(
+                client().admin().indices().prepareUpdateSettings(indexRecoveredFromSnapshot1)
+                    .setSettings(Settings.builder()
+                        .put("index.routing.allocation.require._name", targetNode)).get()
+            );
+
+            startRecoveryRetryReceived.await();
+            sourceMockTransportService.clearAllRules();
+            awaitForRecoverSnapshotFileRequestReceived.run();
+
+            String indexRecoveredFromPeer = indices.get(1);
+            assertAcked(
+                client().admin().indices().prepareUpdateSettings(indexRecoveredFromPeer)
+                    .setSettings(Settings.builder()
+                        .put("index.routing.allocation.require._name", targetNode)).get()
+            );
+
+            ensureGreen(indexRecoveredFromPeer);
+            assertPeerRecoveryDidNotUseSnapshots(indexRecoveredFromPeer, sourceNode, targetNode);
+
+            respondToRecoverSnapshotFile.run();
+
+            ensureGreen(indexRecoveredFromSnapshot1);
+            assertPeerRecoveryUsedSnapshots(indexRecoveredFromSnapshot1, sourceNode, targetNode);
+
+            targetMockTransportService.clearAllRules();
+
+            final String indexRecoveredFromSnapshot2 = indices.get(2);
+            assertAcked(
+                client().admin().indices().prepareUpdateSettings(indexRecoveredFromSnapshot2)
+                    .setSettings(Settings.builder()
+                        .put("index.routing.allocation.require._name", targetNode)).get()
+            );
+
+            ensureGreen(indexRecoveredFromSnapshot2);
+            assertPeerRecoveryUsedSnapshots(indexRecoveredFromSnapshot2, sourceNode, targetNode);
+        });
+    }
+
+
     private void executeRecoveryWithSnapshotFileDownloadThrottled(SnapshotBasedRecoveryThrottlingTestCase testCase) throws Exception {
         updateSetting(INDICES_RECOVERY_MAX_CONCURRENT_SNAPSHOT_FILE_DOWNLOADS.getKey(), "1");
         updateSetting(INDICES_RECOVERY_MAX_CONCURRENT_SNAPSHOT_FILE_DOWNLOADS_PER_NODE.getKey(), "1");
diff --git a/server/src/main/java/org/elasticsearch/indices/recovery/RecoveryTarget.java b/server/src/main/java/org/elasticsearch/indices/recovery/RecoveryTarget.java
index 1a8e29e48c2de..f3406cf22cf71 100644
--- a/server/src/main/java/org/elasticsearch/indices/recovery/RecoveryTarget.java
+++ b/server/src/main/java/org/elasticsearch/indices/recovery/RecoveryTarget.java
@@ -67,8 +67,6 @@ public class RecoveryTarget extends AbstractRefCounted implements RecoveryTarget
     private final IndexShard indexShard;
     private final DiscoveryNode sourceNode;
     private final SnapshotFilesProvider snapshotFilesProvider;
-    @Nullable // if we're not downloading files from snapshots in this recovery
-    private final Releasable snapshotFileDownloadsPermit;
     private final MultiFileWriter multiFileWriter;
     private final RecoveryRequestTracker requestTracker = new RecoveryRequestTracker();
     private final Store store;
@@ -83,6 +81,9 @@ public class RecoveryTarget extends AbstractRefCounted implements RecoveryTarget
 
     private volatile boolean recoveryMonitorEnabled = true;
 
+    @Nullable // if we're not downloading files from snapshots in this recovery or we're retrying
+    private volatile Releasable snapshotFileDownloadsPermit;
+
     // latch that can be used to blockingly wait for RecoveryTarget to be closed
     private final CountDownLatch closedLatch = new CountDownLatch(1);
 
@@ -125,7 +126,11 @@ public RecoveryTarget(IndexShard indexShard,
      * @return a copy of this recovery target
      */
     public RecoveryTarget retryCopy() {
-        return new RecoveryTarget(indexShard, sourceNode, snapshotFilesProvider, snapshotFileDownloadsPermit, listener);
+        // If we're retrying we should remove the reference from this instance as the underlying resources
+        // get released after the retry copy is created
+        Releasable snapshotFileDownloadsPermitCopy = snapshotFileDownloadsPermit;
+        snapshotFileDownloadsPermit = null;
+        return new RecoveryTarget(indexShard, sourceNode, snapshotFilesProvider, snapshotFileDownloadsPermitCopy, listener);
     }
 
     @Nullable