diff --git a/server/src/main/java/org/opensearch/index/shard/ReleasableRetryableRefreshListener.java b/server/src/main/java/org/opensearch/index/shard/ReleasableRetryableRefreshListener.java
index 757275932c5f1..80daefc4482fc 100644
--- a/server/src/main/java/org/opensearch/index/shard/ReleasableRetryableRefreshListener.java
+++ b/server/src/main/java/org/opensearch/index/shard/ReleasableRetryableRefreshListener.java
@@ -13,6 +13,7 @@
 import org.opensearch.common.lease.Releasable;
 import org.opensearch.common.lease.Releasables;
 import org.opensearch.common.unit.TimeValue;
+import org.opensearch.core.concurrency.OpenSearchRejectedExecutionException;
 import org.opensearch.threadpool.ThreadPool;
 
 import java.io.IOException;
@@ -129,6 +130,12 @@ private void scheduleRetry(TimeValue interval, String retryThreadPoolName, boole
             );
             scheduled = true;
             getLogger().info("Scheduled retry with didRefresh={}", didRefresh);
+        } catch (OpenSearchRejectedExecutionException e) {
+            if (e.isExecutorShutdown()) {
+                getLogger().info("Scheduling retry with didRefresh={} failed due to executor shut down", didRefresh);
+            } else {
+                throw e;
+            }
         } finally {
             if (scheduled == false) {
                 retryScheduled.set(false);
diff --git a/server/src/test/java/org/opensearch/index/shard/ReleasableRetryableRefreshListenerTests.java b/server/src/test/java/org/opensearch/index/shard/ReleasableRetryableRefreshListenerTests.java
index a0641c365a2a1..e0ad09efac367 100644
--- a/server/src/test/java/org/opensearch/index/shard/ReleasableRetryableRefreshListenerTests.java
+++ b/server/src/test/java/org/opensearch/index/shard/ReleasableRetryableRefreshListenerTests.java
@@ -316,7 +316,32 @@ protected Logger getLogger() {
     public void testScheduleRetryAfterClose() throws Exception {
         // This tests that once the listener has been closed, even the retries would not be scheduled.
         final AtomicLong runCount = new AtomicLong();
-        ReleasableRetryableRefreshListener testRefreshListener = new ReleasableRetryableRefreshListener(threadPool) {
+        ReleasableRetryableRefreshListener testRefreshListener = getRetryableRefreshListener(runCount);
+        Thread thread1 = new Thread(() -> {
+            try {
+                testRefreshListener.afterRefresh(true);
+            } catch (IOException e) {
+                throw new AssertionError(e);
+            }
+        });
+        Thread thread2 = new Thread(() -> {
+            try {
+                Thread.sleep(500);
+                testRefreshListener.drainRefreshes();
+            } catch (InterruptedException e) {
+                throw new AssertionError(e);
+            }
+        });
+        thread1.start();
+        thread2.start();
+        thread1.join();
+        thread2.join();
+        assertBusy(() -> assertEquals(1, runCount.get()));
+        assertRefreshListenerClosed(testRefreshListener);
+    }
+
+    private ReleasableRetryableRefreshListener getRetryableRefreshListener(AtomicLong runCount) {
+        return new ReleasableRetryableRefreshListener(threadPool) {
             @Override
             protected boolean performAfterRefreshWithPermit(boolean didRefresh) {
                 try {
@@ -341,6 +366,11 @@ protected String getRetryThreadPoolName() {
                 return ThreadPool.Names.REMOTE_REFRESH_RETRY;
             }
 
+            @Override
+            protected boolean isRetryEnabled() {
+                return true;
+            }
+
             @Override
             protected TimeValue getNextRetryInterval() {
                 try {
@@ -351,6 +381,12 @@ protected TimeValue getNextRetryInterval() {
                 return TimeValue.timeValueMillis(100);
             }
         };
+    }
+
+    public void testScheduleRetryAfterThreadpoolShutdown() throws Exception {
+        // This tests that once the thread-pool is shut down, the exception is handled.
+        final AtomicLong runCount = new AtomicLong();
+        ReleasableRetryableRefreshListener testRefreshListener = getRetryableRefreshListener(runCount);
         Thread thread1 = new Thread(() -> {
             try {
                 testRefreshListener.afterRefresh(true);
@@ -361,7 +397,7 @@ protected TimeValue getNextRetryInterval() {
         Thread thread2 = new Thread(() -> {
             try {
                 Thread.sleep(500);
-                testRefreshListener.drainRefreshes();
+                threadPool.shutdown();
             } catch (InterruptedException e) {
                 throw new AssertionError(e);
             }
@@ -371,7 +407,7 @@ protected TimeValue getNextRetryInterval() {
         thread1.join();
         thread2.join();
         assertBusy(() -> assertEquals(1, runCount.get()));
-        assertRefreshListenerClosed(testRefreshListener);
+        assertFalse(testRefreshListener.getRetryScheduledStatus());
     }
 
     public void testConcurrentScheduleRetry() throws Exception {