diff --git a/http/rest-client-reactive/src/main/java/io/quarkus/ts/http/restclient/reactive/failures/FailingClientResource.java b/http/rest-client-reactive/src/main/java/io/quarkus/ts/http/restclient/reactive/failures/FailingClientResource.java
new file mode 100644
index 0000000000..e56ce07ab5
--- /dev/null
+++ b/http/rest-client-reactive/src/main/java/io/quarkus/ts/http/restclient/reactive/failures/FailingClientResource.java
@@ -0,0 +1,31 @@
+package io.quarkus.ts.http.restclient.reactive.failures;
+
+import jakarta.ws.rs.GET;
+import jakarta.ws.rs.Path;
+import jakarta.ws.rs.Produces;
+import jakarta.ws.rs.core.MediaType;
+
+import org.eclipse.microprofile.rest.client.inject.RestClient;
+
+import io.smallrye.mutiny.Uni;
+
+@Path("/client/failing")
+public class FailingClientResource {
+    @RestClient
+    FailureClient client;
+
+    @GET
+    @Produces(MediaType.TEXT_PLAIN)
+    @Path("/straight")
+    public String getStraightResult() {
+        return client.getVisitor();
+    }
+
+    @GET
+    @Produces(MediaType.TEXT_PLAIN)
+    @Path("/reactive")
+    public Uni<String> getReactiveResult() {
+        return client.getVisitorReactively()
+                .onFailure().retry().atMost(5);
+    }
+}
diff --git a/http/rest-client-reactive/src/main/java/io/quarkus/ts/http/restclient/reactive/failures/FailingResource.java b/http/rest-client-reactive/src/main/java/io/quarkus/ts/http/restclient/reactive/failures/FailingResource.java
new file mode 100644
index 0000000000..27c9fbc032
--- /dev/null
+++ b/http/rest-client-reactive/src/main/java/io/quarkus/ts/http/restclient/reactive/failures/FailingResource.java
@@ -0,0 +1,28 @@
+package io.quarkus.ts.http.restclient.reactive.failures;
+
+import java.util.concurrent.atomic.AtomicInteger;
+
+import jakarta.ws.rs.GET;
+import jakarta.ws.rs.Path;
+import jakarta.ws.rs.Produces;
+import jakarta.ws.rs.core.MediaType;
+
+@Path("/fail")
+public class FailingResource {
+    private static final AtomicInteger counter = new AtomicInteger(0);
+    private static final boolean[] fail = { true, true, true, true, false };
+    // in earlier versions, connection was closed after three errors. We need to ensure, that this is no a case.
+
+    @GET
+    @Produces(MediaType.TEXT_PLAIN)
+    @Path("/cyclic")
+    public String fail() {
+        int visit = counter.getAndIncrement();
+        int index = visit % fail.length;
+        if (fail[index]) {
+            throw new RuntimeException("Whoops, we encountered a problem!");
+        } else {
+            return "You're the " + (visit + 1) + "th visitor of this page";
+        }
+    }
+}
diff --git a/http/rest-client-reactive/src/main/java/io/quarkus/ts/http/restclient/reactive/failures/FailureClient.java b/http/rest-client-reactive/src/main/java/io/quarkus/ts/http/restclient/reactive/failures/FailureClient.java
new file mode 100644
index 0000000000..994427edb3
--- /dev/null
+++ b/http/rest-client-reactive/src/main/java/io/quarkus/ts/http/restclient/reactive/failures/FailureClient.java
@@ -0,0 +1,25 @@
+package io.quarkus.ts.http.restclient.reactive.failures;
+
+import java.time.temporal.ChronoUnit;
+
+import jakarta.ws.rs.GET;
+import jakarta.ws.rs.Path;
+
+import org.eclipse.microprofile.faulttolerance.Retry;
+import org.eclipse.microprofile.rest.client.inject.RegisterRestClient;
+
+import io.smallrye.mutiny.Uni;
+
+@RegisterRestClient(baseUri = "http://localhost:8080/")
+@Path("/fail")
+public interface FailureClient {
+
+    @GET
+    @Retry(delay = 1, delayUnit = ChronoUnit.SECONDS, maxRetries = 5)
+    @Path("/cyclic")
+    String getVisitor();
+
+    @GET
+    @Path("/cyclic")
+    Uni<String> getVisitorReactively();
+}
diff --git a/http/rest-client-reactive/src/main/resources/modern.properties b/http/rest-client-reactive/src/main/resources/modern.properties
index f549a895c4..13e4f0ffbb 100644
--- a/http/rest-client-reactive/src/main/resources/modern.properties
+++ b/http/rest-client-reactive/src/main/resources/modern.properties
@@ -5,6 +5,7 @@ quarkus.rest-client."io.quarkus.ts.http.restclient.reactive.BookClient".url=http
 quarkus.rest-client."io.quarkus.ts.http.restclient.reactive.BookClient.AuthorClient".url=http://localhost:${quarkus.http.port}
 quarkus.rest-client."io.quarkus.ts.http.restclient.reactive.ResourceAndSubResourcesClient".url=http://localhost:${quarkus.http.port}
 quarkus.rest-client."io.quarkus.ts.http.restclient.reactive.MalformedClient".url=http://localhost:${quarkus.http.port}
+quarkus.rest-client."io.quarkus.ts.http.restclient.reactive.failures.FailureClient".url=http://localhost:${quarkus.http.port}
 
 quarkus.rest-client.logging.scope=request-response
 quarkus.log.category."org.jboss.resteasy.reactive.client.logging".level=DEBUG
diff --git a/http/rest-client-reactive/src/test/java/io/quarkus/ts/http/restclient/reactive/ReactiveRestClientIT.java b/http/rest-client-reactive/src/test/java/io/quarkus/ts/http/restclient/reactive/ReactiveRestClientIT.java
index c580aba9b5..73b88cb4a4 100644
--- a/http/rest-client-reactive/src/test/java/io/quarkus/ts/http/restclient/reactive/ReactiveRestClientIT.java
+++ b/http/rest-client-reactive/src/test/java/io/quarkus/ts/http/restclient/reactive/ReactiveRestClientIT.java
@@ -46,6 +46,7 @@ public class ReactiveRestClientIT {
     }
 
     static final String MALFORMED_URL = "quarkus.rest-client.\"io.quarkus.ts.http.restclient.reactive.MalformedClient\".url";
+
     @QuarkusApplication
     static RestService app = new RestService()
             .withProperties("modern.properties")
@@ -275,6 +276,24 @@ public void clientHeaderInjectionTest() {
                 .body(containsString("clientFilterInvoked"));
     }
 
+    @Test
+    @Tag("https://github.com/quarkusio/quarkus/issues/37323")
+    public void clientRetry() {
+        app.given().get("/client/failing/straight")
+                .then()
+                .statusCode(200)
+                .body(containsString("visitor of this page"));
+    }
+
+    @Test
+    @Tag("https://github.com/quarkusio/quarkus/issues/37323")
+    public void clientReactiveRetry() {
+        app.given().get("/client/failing/reactive")
+                .then()
+                .statusCode(200)
+                .body(containsString("visitor of this page"));
+    }
+
     @AfterAll
     static void afterAll() {
         mockServer.stop();
diff --git a/quarkus-cli/src/test/java/io/quarkus/ts/quarkus/cli/QuarkusCliCreateJvmApplicationIT.java b/quarkus-cli/src/test/java/io/quarkus/ts/quarkus/cli/QuarkusCliCreateJvmApplicationIT.java
index 512d90c741..c7d59636d9 100644
--- a/quarkus-cli/src/test/java/io/quarkus/ts/quarkus/cli/QuarkusCliCreateJvmApplicationIT.java
+++ b/quarkus-cli/src/test/java/io/quarkus/ts/quarkus/cli/QuarkusCliCreateJvmApplicationIT.java
@@ -309,7 +309,6 @@ public void shouldCreateJacocoReportsFromApplicationOnJvm() {
 
     @Tag("QUARKUS-1296")
     @Test
-    @Disabled("https://github.com/quarkusio/quarkus/issues/40410")
     public void verifyRestEasyReactiveAndClassicResteasyCollisionUserMsg() {
         QuarkusCliRestService app = cliClient.createApplication("dependencyCollision",
                 defaultWithFixedStream().withExtensions("resteasy", "rest"));