diff --git a/services/core/java/com/android/server/vcn/VcnGatewayConnection.java b/services/core/java/com/android/server/vcn/VcnGatewayConnection.java
index 4d5cf4ff750ac..2503e812f9e1b 100644
--- a/services/core/java/com/android/server/vcn/VcnGatewayConnection.java
+++ b/services/core/java/com/android/server/vcn/VcnGatewayConnection.java
@@ -1208,7 +1208,64 @@ public class VcnGatewayConnection extends StateMachine {
      */
     class RetryTimeoutState extends ActiveBaseState {
         @Override
-        protected void processStateMsg(Message msg) {}
+        protected void enterState() throws Exception {
+            // Reset upon entry to ConnectedState
+            mFailedAttempts++;
+
+            if (mUnderlying == null) {
+                Slog.wtf(TAG, "Underlying network was null in retry state");
+                transitionTo(mDisconnectedState);
+            } else {
+                sendMessageDelayed(
+                        EVENT_RETRY_TIMEOUT_EXPIRED, mCurrentToken, getNextRetryIntervalsMs());
+            }
+        }
+
+        @Override
+        protected void processStateMsg(Message msg) {
+            switch (msg.what) {
+                case EVENT_UNDERLYING_NETWORK_CHANGED:
+                    final UnderlyingNetworkRecord oldUnderlying = mUnderlying;
+                    mUnderlying = ((EventUnderlyingNetworkChangedInfo) msg.obj).newUnderlying;
+
+                    // If new underlying is null, all networks were lost; go back to disconnected.
+                    if (mUnderlying == null) {
+                        removeMessages(EVENT_RETRY_TIMEOUT_EXPIRED);
+
+                        transitionTo(mDisconnectedState);
+                        return;
+                    } else if (oldUnderlying != null
+                            && mUnderlying.network.equals(oldUnderlying.network)) {
+                        // If the network has not changed, do nothing.
+                        return;
+                    }
+
+                    // Fallthrough
+                case EVENT_RETRY_TIMEOUT_EXPIRED:
+                    removeMessages(EVENT_RETRY_TIMEOUT_EXPIRED);
+
+                    transitionTo(mConnectingState);
+                    break;
+                case EVENT_DISCONNECT_REQUESTED:
+                    handleDisconnectRequested(((EventDisconnectRequestedInfo) msg.obj).reason);
+                    break;
+                default:
+                    logUnhandledMessage(msg);
+                    break;
+            }
+        }
+
+        private long getNextRetryIntervalsMs() {
+            final int retryDelayIndex = mFailedAttempts - 1;
+            final long[] retryIntervalsMs = mConnectionConfig.getRetryIntervalsMs();
+
+            // Repeatedly use last item in retry timeout list.
+            if (retryDelayIndex >= retryIntervalsMs.length) {
+                return retryIntervalsMs[retryIntervalsMs.length - 1];
+            }
+
+            return retryIntervalsMs[retryDelayIndex];
+        }
     }
 
     @VisibleForTesting(visibility = Visibility.PRIVATE)
diff --git a/tests/vcn/java/com/android/server/vcn/VcnGatewayConnectionRetryTimeoutStateTest.java b/tests/vcn/java/com/android/server/vcn/VcnGatewayConnectionRetryTimeoutStateTest.java
new file mode 100644
index 0000000000000..3f2b47cd58fd5
--- /dev/null
+++ b/tests/vcn/java/com/android/server/vcn/VcnGatewayConnectionRetryTimeoutStateTest.java
@@ -0,0 +1,78 @@
+/*
+ * Copyright (C) 2020 The Android Open Source Project
+ *
+ * Licensed 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 com.android.server.vcn;
+
+import static org.junit.Assert.assertEquals;
+
+import androidx.test.filters.SmallTest;
+import androidx.test.runner.AndroidJUnit4;
+
+import org.junit.Before;
+import org.junit.Test;
+import org.junit.runner.RunWith;
+
+/** Tests for VcnGatewayConnection.RetryTimeoutState */
+@RunWith(AndroidJUnit4.class)
+@SmallTest
+public class VcnGatewayConnectionRetryTimeoutStateTest extends VcnGatewayConnectionTestBase {
+    @Before
+    public void setUp() throws Exception {
+        super.setUp();
+
+        mGatewayConnection.setUnderlyingNetwork(TEST_UNDERLYING_NETWORK_RECORD_1);
+        mGatewayConnection.transitionTo(mGatewayConnection.mRetryTimeoutState);
+        mTestLooper.dispatchAll();
+    }
+
+    @Test
+    public void testNewNetworkTriggerRetry() throws Exception {
+        mGatewayConnection
+                .getUnderlyingNetworkTrackerCallback()
+                .onSelectedUnderlyingNetworkChanged(TEST_UNDERLYING_NETWORK_RECORD_2);
+        mTestLooper.dispatchAll();
+
+        assertEquals(mGatewayConnection.mConnectingState, mGatewayConnection.getCurrentState());
+    }
+
+    @Test
+    public void testSameNetworkDoesNotTriggerRetry() throws Exception {
+        mGatewayConnection
+                .getUnderlyingNetworkTrackerCallback()
+                .onSelectedUnderlyingNetworkChanged(TEST_UNDERLYING_NETWORK_RECORD_1);
+        mTestLooper.dispatchAll();
+
+        assertEquals(mGatewayConnection.mRetryTimeoutState, mGatewayConnection.getCurrentState());
+    }
+
+    @Test
+    public void testNullNetworkTriggersDisconnect() throws Exception {
+        mGatewayConnection
+                .getUnderlyingNetworkTrackerCallback()
+                .onSelectedUnderlyingNetworkChanged(null);
+        mTestLooper.dispatchAll();
+
+        assertEquals(mGatewayConnection.mDisconnectedState, mGatewayConnection.getCurrentState());
+    }
+
+    @Test
+    public void testTimeoutElapsingTriggersRetry() throws Exception {
+        mTestLooper.moveTimeForward(mConfig.getRetryIntervalsMs()[0]);
+        mTestLooper.dispatchAll();
+
+        assertEquals(mGatewayConnection.mConnectingState, mGatewayConnection.getCurrentState());
+    }
+}