diff --git a/workflow/controller/operator.go b/workflow/controller/operator.go
index 3646f100ac74..9ef636c6cadd 100644
--- a/workflow/controller/operator.go
+++ b/workflow/controller/operator.go
@@ -591,6 +591,17 @@ func (woc *wfOperationCtx) processNodeRetries(node *wfv1.NodeStatus, retryStrate
 		return node, true, nil
 	}
 
+	if !lastChildNode.Completed() {
+		// last child node is still running.
+		return node, true, nil
+	}
+
+	if lastChildNode.Successful() {
+		node.Outputs = lastChildNode.Outputs.DeepCopy()
+		woc.wf.Status.Nodes[node.ID] = *node
+		return woc.markNodePhase(node.Name, wfv1.NodeSucceeded), true, nil
+	}
+
 	if retryStrategy.Backoff != nil {
 		// Process max duration limit
 		if retryStrategy.Backoff.MaxDuration != "" && len(node.Children) > 0 {
@@ -648,17 +659,6 @@ func (woc *wfOperationCtx) processNodeRetries(node *wfv1.NodeStatus, retryStrate
 		return nil, false, fmt.Errorf("%s is not a valid RetryPolicy", retryStrategy.RetryPolicy)
 	}
 
-	if !lastChildNode.Completed() {
-		// last child node is still running.
-		return node, true, nil
-	}
-
-	if lastChildNode.Successful() {
-		node.Outputs = lastChildNode.Outputs.DeepCopy()
-		woc.wf.Status.Nodes[node.ID] = *node
-		return woc.markNodePhase(node.Name, wfv1.NodeSucceeded), true, nil
-	}
-
 	if (lastChildNode.Phase == wfv1.NodeFailed && !retryOnFailed) || (lastChildNode.Phase == wfv1.NodeError && !retryOnError) {
 		woc.log.Infof("Node not set to be retried after status: %s", lastChildNode.Phase)
 		return woc.markNodePhase(node.Name, lastChildNode.Phase, lastChildNode.Message), true, nil
diff --git a/workflow/controller/operator_test.go b/workflow/controller/operator_test.go
index e6267641213d..baf40478b488 100644
--- a/workflow/controller/operator_test.go
+++ b/workflow/controller/operator_test.go
@@ -254,6 +254,61 @@ func TestProcessNodesWithRetriesOnErrors(t *testing.T) {
 	assert.Equal(t, n.Phase, wfv1.NodeError)
 }
 
+func TestProcessNodesWithRetriesWithBackoff(t *testing.T) {
+	controller := newController()
+	assert.NotNil(t, controller)
+	wf := unmarshalWF(helloWorldWf)
+	assert.NotNil(t, wf)
+	woc := newWorkflowOperationCtx(wf, controller)
+	assert.NotNil(t, woc)
+
+	// Verify that there are no nodes in the wf status.
+	assert.Zero(t, len(woc.wf.Status.Nodes))
+
+	// Add the parent node for retries.
+	nodeName := "test-node"
+	nodeID := woc.wf.NodeID(nodeName)
+	node := woc.initializeNode(nodeName, wfv1.NodeTypeRetry, "", &wfv1.Template{}, "", wfv1.NodeRunning)
+	retries := wfv1.RetryStrategy{}
+	retryLimit := int32(2)
+	retries.Limit = &retryLimit
+	retries.Backoff = &wfv1.Backoff{
+		Duration:    "10s",
+		Factor:      2,
+		MaxDuration: "10m",
+	}
+	retries.RetryPolicy = wfv1.RetryPolicyAlways
+	woc.wf.Status.Nodes[nodeID] = *node
+
+	assert.Equal(t, node.Phase, wfv1.NodeRunning)
+
+	// Ensure there are no child nodes yet.
+	lastChild, err := woc.getLastChildNode(node)
+	assert.Nil(t, err)
+	assert.Nil(t, lastChild)
+
+	woc.initializeNode("child-node-1", wfv1.NodeTypePod, "", &wfv1.Template{}, "", wfv1.NodeRunning)
+	woc.addChildNode(nodeName, "child-node-1")
+
+	n := woc.getNodeByName(nodeName)
+	lastChild, err = woc.getLastChildNode(n)
+	assert.Nil(t, err)
+	assert.NotNil(t, lastChild)
+
+	// Last child is still running. processNodesWithRetries() should return false since
+	// there should be no retries at this point.
+	n, _, err = woc.processNodeRetries(n, retries)
+	assert.Nil(t, err)
+	assert.Equal(t, n.Phase, wfv1.NodeRunning)
+
+	// Mark lastChild as successful.
+	woc.markNodePhase(lastChild.Name, wfv1.NodeSucceeded)
+	n, _, err = woc.processNodeRetries(n, retries)
+	assert.Nil(t, err)
+	// The parent node also gets marked as Succeeded.
+	assert.Equal(t, n.Phase, wfv1.NodeSucceeded)
+}
+
 // TestProcessNodesWithRetries tests retrying when RetryOn.Error is disabled
 func TestProcessNodesNoRetryWithError(t *testing.T) {
 	controller := newController()