diff --git a/aws/lambda/pytorch-auto-revert/pytorch_auto_revert/tests/test_retry_with_backoff.py b/aws/lambda/pytorch-auto-revert/pytorch_auto_revert/tests/test_retry_with_backoff.py
new file mode 100644
index 0000000000..58f22052d0
--- /dev/null
+++ b/aws/lambda/pytorch-auto-revert/pytorch_auto_revert/tests/test_retry_with_backoff.py
@@ -0,0 +1,81 @@
+import sys
+import unittest
+from unittest.mock import call, patch
+
+
+# Ensure package import when running from repo root
+sys.path.insert(0, "aws/lambda/pytorch-auto-revert")
+
+from pytorch_auto_revert.utils import RetryWithBackoff  # noqa: E402
+
+
+def run_with_retry(op, **kwargs):
+    """Helper mirroring how RetryWithBackoff is used in code.
+
+    for attempt in RetryWithBackoff(...):
+        with attempt:
+            return op()
+    """
+    for attempt in RetryWithBackoff(**kwargs):
+        with attempt:
+            return op()
+
+
+EX = ValueError("boom")
+
+
+class UnstableOp:
+    def __init__(self, fail_times: int, exc: Exception = EX):
+        self.fail_times = fail_times
+        self.calls = 0
+        self.exc = exc
+
+    def __call__(self):
+        self.calls += 1
+        if self.calls <= self.fail_times:
+            raise self.exc
+        return 42
+
+
+class TestRetryWithBackoff(unittest.TestCase):
+    @patch("pytorch_auto_revert.utils.time.sleep")
+    def test_success_first_try_no_sleep(self, sleep_mock):
+        op = UnstableOp(fail_times=0)
+        res = run_with_retry(op, max_retries=3, base_delay=0.1, jitter=False)
+        self.assertEqual(res, 42)
+        self.assertEqual(op.calls, 1)
+        sleep_mock.assert_not_called()
+
+    @patch("pytorch_auto_revert.utils.time.sleep")
+    def test_eventual_success_after_retries(self, sleep_mock):
+        op = UnstableOp(fail_times=2)
+        res = run_with_retry(op, max_retries=5, base_delay=0.1, jitter=False)
+        self.assertEqual(res, 42)
+        self.assertEqual(op.calls, 3)
+        # Backoff without jitter: 0.1, 0.2
+        self.assertEqual(sleep_mock.call_args_list, [call(0.1), call(0.2)])
+
+    @patch("pytorch_auto_revert.utils.time.sleep")
+    def test_raises_after_max_retries(self, sleep_mock):
+        op = UnstableOp(fail_times=10)
+        with self.assertRaises(ValueError):
+            run_with_retry(op, max_retries=3, base_delay=0.1, jitter=False)
+        # Two sleeps for attempts 1 and 2; none after final failed attempt
+        self.assertEqual(sleep_mock.call_args_list, [call(0.1), call(0.2)])
+        self.assertEqual(op.calls, 3)
+
+    @patch("pytorch_auto_revert.utils.random.uniform", side_effect=lambda a, b: b)
+    @patch("pytorch_auto_revert.utils.time.sleep")
+    def test_jitter_applied_to_backoff(self, sleep_mock, _uniform_mock):
+        op = UnstableOp(fail_times=1)
+        res = run_with_retry(op, max_retries=3, base_delay=0.2, jitter=True)
+        self.assertEqual(res, 42)
+        self.assertEqual(op.calls, 2)
+        # With max jitter (10%), expected delay = 0.2 * (1 + 0.1) = 0.22
+        # Allow tiny floating point drift
+        self.assertEqual(len(sleep_mock.call_args_list), 1)
+        self.assertAlmostEqual(sleep_mock.call_args_list[0].args[0], 0.22, places=6)
+
+
+if __name__ == "__main__":
+    unittest.main()
diff --git a/aws/lambda/pytorch-auto-revert/pytorch_auto_revert/utils.py b/aws/lambda/pytorch-auto-revert/pytorch_auto_revert/utils.py
index 4c4b7285ce..88756a70a2 100644
--- a/aws/lambda/pytorch-auto-revert/pytorch_auto_revert/utils.py
+++ b/aws/lambda/pytorch-auto-revert/pytorch_auto_revert/utils.py
@@ -80,8 +80,8 @@ def __exit__(self, exc_type, exc, tb):
             delay += random.uniform(0, 0.1 * delay)
         time.sleep(delay)
 
-        # Tell the iterator to yield another attempt
-        raise _TryAgain()
+        # Swallow the original exception so the iterator can decide to retry
+        return True
 
 
 class RetryWithBackoff:
@@ -101,12 +101,12 @@ def __iter__(self):
         self._attempt = 1
         self._done = False
         while True:
-            try:
-                yield _Attempt(self)
-                # If the with-block succeeded, stop iterating.
-                if self._done:
-                    return
-                return  # defensive: stop if block exited cleanly
-            except _TryAgain:
-                self._attempt += 1
-                continue
+            # Yield a context manager for the attempt; if the with-block
+            # raised but is retryable, __exit__ returns True to suppress it.
+            yield _Attempt(self)
+            # If the with-block succeeded, stop iterating.
+            if self._done:
+                return
+            # Otherwise, a retryable exception occurred and was suppressed.
+            # Move to the next attempt.
+            self._attempt += 1