diff --git a/plugin/framework/errors.py b/plugin/framework/errors.py
index 55f2aa562..4b228b4f2 100644
--- a/plugin/framework/errors.py
+++ b/plugin/framework/errors.py
@@ -101,6 +101,32 @@ def safe_json_loads(text: Any, default: Any = None) -> Any:
         return default
 
 
+def handle_network_error(e, context="network_operation"):
+    """Handle network errors with appropriate logging and user messaging."""
+    import logging
+    log = logging.getLogger(__name__)
+
+    error_payload = format_error_payload(e)
+
+    if isinstance(e, NetworkError):
+        log.error(f"Network error [{context}]: {e.message}",
+                 extra={"network_error": error_payload})
+    else:
+        # Wrap non-network exceptions
+        wrapped = NetworkError(
+            f"Network-related error in {context}",
+            code="NETWORK_WRAPPED_ERROR",
+            details={
+                "original_error": str(e),
+                "type": type(e).__name__,
+                "context": context
+            }
+        )
+        log.error(f"Wrapped network error [{context}]: {wrapped.message}")
+        error_payload = format_error_payload(wrapped)
+
+    return error_payload
+
 def safe_python_literal_eval(text: Any, default: Any = None) -> Any:
     """Safely parse a Python-style literal (e.g. from an LLM) without using ast.literal_eval.
     Supports scalars (bool, None, number, string) and simple JSON-compatible lists/dicts.
diff --git a/plugin/framework/retry_decorator.py b/plugin/framework/retry_decorator.py
new file mode 100644
index 000000000..5dde352d8
--- /dev/null
+++ b/plugin/framework/retry_decorator.py
@@ -0,0 +1,70 @@
+import time
+import random
+from functools import wraps
+from typing import Callable, TypeVar, Any
+
+from plugin.framework.errors import NetworkError
+
+T = TypeVar('T')
+
+def retry_with_backoff(
+    max_attempts: int = 3,
+    base_delay: float = 0.1,
+    max_delay: float = 2.0,
+    retry_exceptions: tuple = (ConnectionError, TimeoutError, OSError),
+    logger=None
+) -> Callable:
+    """Retry decorator with exponential backoff.
+
+    Args:
+        max_attempts: Maximum number of retry attempts
+        base_delay: Base delay in seconds
+        max_delay: Maximum delay in seconds
+        retry_exceptions: Tuple of exceptions to retry on
+        logger: Optional logger for retry logging
+    """
+    def decorator(func: Callable[..., T]) -> Callable[..., T]:
+        @wraps(func)
+        def wrapper(*args, **kwargs) -> T:
+            attempt = 1
+            last_exception = None
+
+            while attempt <= max_attempts:
+                try:
+                    return func(*args, **kwargs)
+                except retry_exceptions as e:
+                    last_exception = e
+                    if attempt == max_attempts:
+                        break
+
+                    # Exponential backoff with jitter
+                    delay = min(base_delay * (2 ** (attempt - 1)), max_delay)
+                    delay = delay * random.uniform(0.5, 1.5)  # Add jitter
+
+                    if logger:
+                        logger.warning(
+                            f"Attempt {attempt} failed: {str(e)}. "
+                            f"Retrying in {delay:.2f}s..."
+                        )
+
+                    time.sleep(delay)
+                    attempt += 1
+
+            # If all attempts failed, raise the last exception
+            if last_exception:
+                raise NetworkError(
+                    f"Operation failed after {max_attempts} attempts",
+                    code="NETWORK_RETRY_FAILED",
+                    details={
+                        "attempts": max_attempts,
+                        "last_error": str(last_exception),
+                        "type": type(last_exception).__name__
+                    }
+                ) from last_exception
+
+            # Shouldn't reach here
+            raise NetworkError("Unexpected retry failure")
+
+        return wrapper
+
+    return decorator
diff --git a/plugin/modules/http/client.py b/plugin/modules/http/client.py
index a192ffa2e..068f632f7 100644
--- a/plugin/modules/http/client.py
+++ b/plugin/modules/http/client.py
@@ -37,6 +37,7 @@
 from plugin.framework.auth import resolve_auth_for_config, build_auth_headers, AuthError
 from plugin.framework.errors import NetworkError, safe_json_loads
 from plugin.framework.utils import get_url_hostname, get_url_path_and_query
+from plugin.framework.retry_decorator import retry_with_backoff
 
 from plugin.modules.http.errors import format_error_message, _format_http_error_response
 from plugin.modules.http.ssl_helpers import (
@@ -449,6 +450,13 @@ def stream_completion(
             stop_checker=stop_checker,
         )
 
+    @retry_with_backoff(
+        max_attempts=3,
+        base_delay=0.2,
+        max_delay=3.0,
+        retry_exceptions=(ConnectionError, TimeoutError, OSError, http.client.HTTPException),
+        logger=log
+    )
     def _run_streaming_loop(
         self,
         method,
@@ -459,7 +467,6 @@ def _run_streaming_loop(
         on_thinking=None,
         on_delta=None,
         stop_checker=None,
-        _retry=True,
     ):
         """Common low-level streaming engine."""
         init_logging(self.ctx)
@@ -575,29 +582,13 @@ def _run_streaming_loop(
             if stop_checker and stop_checker():
                 log.error("Connection error during stop; exiting streaming loop")
                 return "stop"
-            if self._enable_local_ssl_fallback(e):
-                return self._run_streaming_loop(
-                    method, path, body, headers,
-                    on_content=on_content,
-                    on_thinking=on_thinking,
-                    on_delta=on_delta,
-                    stop_checker=stop_checker,
-                    _retry=False,
-                )
             
-            err_msg = format_error_message(e)
-            if _retry:
-                log.warning("Retrying streaming request once on fresh connection")
-                return self._run_streaming_loop(
-                    method, path, body, headers,
-                    on_content=on_content,
-                    on_thinking=on_thinking,
-                    on_delta=on_delta,
-                    stop_checker=stop_checker,
-                    _retry=False,
-                )
-            log.error("Connection retry failed: %s" % err_msg)
-            raise NetworkError(err_msg, code="CONNECTION_ERROR", context={"url": path}) from e
+            # Check for local SSL fallback; state changes internally
+            self._enable_local_ssl_fallback(e)
+
+            # Re-raise so the @retry_with_backoff decorator catches it
+            raise e
+
         except NetworkError:
             self._close_connection()
             raise
@@ -649,6 +640,35 @@ def stream_chat_response(
             stop_checker=stop_checker,
         )
 
+    @retry_with_backoff(
+        max_attempts=3,
+        base_delay=0.2,
+        max_delay=3.0,
+        retry_exceptions=(ConnectionError, TimeoutError, OSError, http.client.HTTPException),
+        logger=log
+    )
+    def _execute_sync_request(self, method, path, body, headers):
+        """Execute a synchronous request with retry logic."""
+        try:
+            conn = self._get_connection()
+            conn.request(method, path, body=body, headers=headers)
+            response = conn.getresponse()
+            if response.status != 200:
+                err_body = response.read().decode("utf-8", errors="replace")
+                log.error("API Error %d: %s" % (response.status, err_body))
+                self._close_connection()
+                raise NetworkError(
+                    _format_http_error_response(response.status, response.reason, err_body),
+                    code="HTTP_ERROR",
+                    context={"url": path, "status": response.status}
+                )
+            return json.loads(response.read().decode("utf-8"))
+        except (http.client.HTTPException, socket.error, OSError) as e:
+            log.error("Connection error in sync request, closing: %s" % e)
+            self._close_connection()
+            self._enable_local_ssl_fallback(e)
+            raise e
+
     def request_with_tools(
         self,
         messages,
@@ -711,39 +731,14 @@ def request_with_tools(
             usage = message_snapshot.get("usage", {})
         else:
             # Sync path
-            result = None
-            for attempt in (0, 1):
-                try:
-                    conn = self._get_connection()
-                    conn.request(method, path, body=body, headers=headers)
-                    response = conn.getresponse()
-                    if response.status != 200:
-                        err_body = response.read().decode("utf-8", errors="replace")
-                        log.error("API Error %d: %s" % (response.status, err_body))
-                        self._close_connection()
-                        raise NetworkError(
-                            _format_http_error_response(response.status, response.reason, err_body),
-                            code="HTTP_ERROR",
-                            context={"url": path, "status": response.status}
-                        )
-                    result = json.loads(response.read().decode("utf-8"))
-                    break
-                except (http.client.HTTPException, socket.error, OSError) as e:
-                    log.error("Connection error, closing: %s" % e)
-                    self._close_connection()
-                    if self._enable_local_ssl_fallback(e):
-                        continue
-                    if attempt == 0:
-                        log.warning("Retrying request_with_tools once on fresh connection")
-                        continue
-                    log.error("Connection retry failed: %s" % format_error_message(e))
-                    raise NetworkError(format_error_message(e), code="CONNECTION_ERROR", context={"url": path}) from e
-                except NetworkError:
-                    raise
-                except Exception as e:
-                    err_msg = format_error_message(e)
-                    log.error("request_with_tools ERROR: %s -> %s" % (type(e).__name__, err_msg))
-                    raise NetworkError(err_msg, context={"url": path}) from e
+            try:
+                result = self._execute_sync_request(method, path, body, headers)
+            except NetworkError:
+                raise
+            except Exception as e:
+                err_msg = format_error_message(e)
+                log.error("request_with_tools ERROR: %s -> %s" % (type(e).__name__, err_msg))
+                raise NetworkError(err_msg, context={"url": path}) from e
 
             log.debug("=== Sync response: %s" % json.dumps(result, indent=2))
 
diff --git a/plugin/modules/http/mcp_protocol.py b/plugin/modules/http/mcp_protocol.py
index 5d1e9f7c0..cf06943ee 100644
--- a/plugin/modules/http/mcp_protocol.py
+++ b/plugin/modules/http/mcp_protocol.py
@@ -30,6 +30,7 @@
 
 from plugin.framework.main_thread import execute_on_main_thread
 from plugin.framework.errors import WriterAgentException, safe_json_loads
+from plugin.framework.retry_decorator import retry_with_backoff
 from plugin.modules.http.mcp_state import (
     MCPState, MCPStateStr, EventKind, MCPEvent,
     ParseRequestEffect, ResolveDocumentEffect,
@@ -531,6 +532,13 @@ def _process_jsonrpc(self, msg, document_url=None):
 
     # ── Backpressure execution ───────────────────────────────────────
 
+    @retry_with_backoff(
+        max_attempts=3,
+        base_delay=0.1,
+        max_delay=1.0,
+        retry_exceptions=(BusyError, TimeoutError),
+        logger=log
+    )
     def _execute_with_backpressure(self, tool_name, arguments, document_url=None):
         """Execute a tool on the VCL main thread with backpressure."""
         acquired = _tool_semaphore.acquire(timeout=_WAIT_TIMEOUT)
diff --git a/plugin/tests/test_network_resilience.py b/plugin/tests/test_network_resilience.py
new file mode 100644
index 000000000..1ede40689
--- /dev/null
+++ b/plugin/tests/test_network_resilience.py
@@ -0,0 +1,99 @@
+import pytest
+import time
+from unittest.mock import MagicMock, patch
+
+from plugin.framework.errors import NetworkError, format_error_payload
+from plugin.framework.retry_decorator import retry_with_backoff
+from plugin.framework.errors import handle_network_error
+from plugin.modules.http.mcp_protocol import BusyError
+
+def test_retry_success_on_first_try():
+    mock_func = MagicMock(return_value="success")
+
+    @retry_with_backoff(max_attempts=3, base_delay=0.01)
+    def test_func():
+        return mock_func()
+
+    result = test_func()
+    assert result == "success"
+    assert mock_func.call_count == 1
+
+def test_retry_success_after_failure():
+    mock_func = MagicMock(side_effect=[ConnectionError("fail"), "success"])
+
+    @retry_with_backoff(max_attempts=3, base_delay=0.01)
+    def test_func():
+        return mock_func()
+
+    result = test_func()
+    assert result == "success"
+    assert mock_func.call_count == 2
+
+def test_retry_exhaustion_raises_network_error():
+    mock_func = MagicMock(side_effect=ConnectionError("fail"))
+
+    @retry_with_backoff(max_attempts=3, base_delay=0.01)
+    def test_func():
+        return mock_func()
+
+    with pytest.raises(NetworkError) as excinfo:
+        test_func()
+
+    assert "Operation failed after 3 attempts" in str(excinfo.value)
+    assert excinfo.value.code == "NETWORK_RETRY_FAILED"
+    assert mock_func.call_count == 3
+
+def test_retry_ignores_unspecified_exceptions():
+    mock_func = MagicMock(side_effect=ValueError("fail"))
+
+    @retry_with_backoff(max_attempts=3, base_delay=0.01, retry_exceptions=(ConnectionError,))
+    def test_func():
+        return mock_func()
+
+    with pytest.raises(ValueError) as excinfo:
+        test_func()
+
+    assert mock_func.call_count == 1
+
+@patch("time.sleep")
+def test_retry_backoff_timing(mock_sleep):
+    mock_func = MagicMock(side_effect=ConnectionError("fail"))
+
+    @retry_with_backoff(max_attempts=3, base_delay=0.1, max_delay=1.0)
+    def test_func():
+        return mock_func()
+
+    with pytest.raises(NetworkError):
+        test_func()
+
+    assert mock_sleep.call_count == 2
+    # First sleep base_delay * (2^0) = 0.1 * jitter
+    # Second sleep base_delay * (2^1) = 0.2 * jitter
+    # Just check sleep was called
+
+def test_handle_network_error_with_network_error():
+    err = NetworkError("Test error", code="TEST_CODE")
+    payload = handle_network_error(err, "test_context")
+
+    assert payload["status"] == "error"
+    assert payload["code"] == "TEST_CODE"
+    assert payload["message"] == "Test error"
+
+def test_handle_network_error_with_other_exception():
+    err = ValueError("Test error")
+    payload = handle_network_error(err, "test_context")
+
+    assert payload["status"] == "error"
+    assert payload["code"] == "NETWORK_WRAPPED_ERROR"
+    assert "Network-related error in test_context" in payload["message"]
+    assert payload["details"]["type"] == "ValueError"
+
+def test_mcp_busy_error_retry():
+    mock_func = MagicMock(side_effect=[BusyError("busy"), "success"])
+
+    @retry_with_backoff(max_attempts=3, base_delay=0.01, retry_exceptions=(BusyError,))
+    def execute():
+        return mock_func()
+
+    assert execute() == "success"
+    assert mock_func.call_count == 2