diff --git a/swift-sdk/Internal/AuthManager.swift b/swift-sdk/Internal/AuthManager.swift
index 165704144..731ec9f35 100644
--- a/swift-sdk/Internal/AuthManager.swift
+++ b/swift-sdk/Internal/AuthManager.swift
@@ -67,8 +67,16 @@ class AuthManager: IterableAuthManagerProtocol {
     }
     
     private func shouldPauseRetry(_ shouldIgnoreRetryPolicy: Bool) -> Bool {
-        return (!shouldIgnoreRetryPolicy && pauseAuthRetry) ||
-               (retryCount >= authRetryPolicy.maxRetry && !shouldIgnoreRetryPolicy)
+        if pauseAuthRetry {
+            return true
+        }
+        
+        // Scheduled refresh should never bypass retry safety limits.
+        if isInScheduledRefreshCallback {
+            return retryCount >= authRetryPolicy.maxRetry
+        }
+        
+        return retryCount >= authRetryPolicy.maxRetry && !shouldIgnoreRetryPolicy
     }
     
     private func shouldUseLastValidToken(_ shouldIgnoreRetryPolicy: Bool) -> Bool {
@@ -113,6 +121,7 @@ class AuthManager: IterableAuthManagerProtocol {
     private var isLastAuthTokenValid: Bool = false
     private var pauseAuthRetry: Bool = false
     private var isTimerScheduled: Bool = false
+    private var isInScheduledRefreshCallback: Bool = false
     
     private var pendingSuccessCallbacks: [AuthTokenRetrievalHandler] = []
     private let callbackQueue = DispatchQueue(label: "com.iterable.authCallbackQueue")
@@ -205,6 +214,7 @@ class AuthManager: IterableAuthManagerProtocol {
         let timeIntervalToRefresh = TimeInterval(expirationDate) - dateProvider.currentDate.timeIntervalSince1970 - expirationRefreshPeriod
         if timeIntervalToRefresh > 0 {
             scheduleAuthTokenRefreshTimer(interval: timeIntervalToRefresh, isScheduledRefresh: true, successCallback: onSuccess)
+            resetRetryCount()
             return true  // Only return true when we successfully queue a refresh
         }
         return false
@@ -228,14 +238,17 @@ class AuthManager: IterableAuthManagerProtocol {
         addPendingCallback(successCallback)
         
         expirationRefreshTimer = Timer.scheduledTimer(withTimeInterval: interval, repeats: false) { [weak self] _ in
-            self?.isTimerScheduled = false
-            if self?.localStorage.email != nil || self?.localStorage.userId != nil {
-                self?.requestNewAuthToken(hasFailedPriorAuth: false, onSuccess: { [weak self] token in
+            guard let self else { return }
+            self.isTimerScheduled = false
+            if self.localStorage.email != nil || self.localStorage.userId != nil {
+                self.isInScheduledRefreshCallback = isScheduledRefresh
+                self.requestNewAuthToken(hasFailedPriorAuth: false, onSuccess: { [weak self] token in
                     self?.invokePendingCallbacks(with: token)
                 }, shouldIgnoreRetryPolicy: isScheduledRefresh)
+                self.isInScheduledRefreshCallback = false
             } else {
                 ITBDebug("Email or userId is not available. Skipping token refresh")
-                self?.clearPendingCallbacks()
+                self.clearPendingCallbacks()
             }
         }
         
diff --git a/tests/unit-tests/AuthTests.swift b/tests/unit-tests/AuthTests.swift
index 0574a2779..74577e546 100644
--- a/tests/unit-tests/AuthTests.swift
+++ b/tests/unit-tests/AuthTests.swift
@@ -425,7 +425,9 @@ class AuthTests: XCTestCase {
         
         let expirationRefreshPeriod: TimeInterval = 0
         let waitTime: TimeInterval = 1.0
-        let expirationTimeSinceEpoch = Date(timeIntervalSinceNow: expirationRefreshPeriod + waitTime).timeIntervalSince1970
+        let mockDateProvider = MockDateProvider()
+        mockDateProvider.currentDate = Date(timeIntervalSince1970: 1_000_000_000)
+        let expirationTimeSinceEpoch = mockDateProvider.currentDate.timeIntervalSince1970 + expirationRefreshPeriod + waitTime
         let mockEncodedPayload = createMockEncodedPayload(exp: Int(expirationTimeSinceEpoch))
         
         let localStorage = MockLocalStorage()
@@ -437,12 +439,83 @@ class AuthTests: XCTestCase {
                                       authRetryPolicy: RetryPolicy(maxRetry: 1, retryInterval: 0, retryBackoff: .linear),
                                       expirationRefreshPeriod: expirationRefreshPeriod,
                                       localStorage: localStorage,
-                                      dateProvider: MockDateProvider())
+                                      dateProvider: mockDateProvider)
         
         let _ = authManager
         
         wait(for: [condition1], timeout: testExpectationTimeout)
     }
+
+    func testPauseAuthRetriesBlocksScheduledRefresh() {
+        let callbackNotCalledExpectation = expectation(description: "\(#function) - callback got called when it shouldn't while paused")
+        callbackNotCalledExpectation.isInverted = true
+        
+        let authDelegate = createAuthDelegate({
+            callbackNotCalledExpectation.fulfill()
+            return nil
+        })
+        
+        let expirationRefreshPeriod: TimeInterval = 0
+        let waitTime: TimeInterval = 1.0
+        
+        let mockDateProvider = MockDateProvider()
+        mockDateProvider.currentDate = Date(timeIntervalSince1970: 1_000_000_000)
+        let expirationTimeSinceEpoch = mockDateProvider.currentDate.timeIntervalSince1970 + expirationRefreshPeriod + waitTime
+        let mockEncodedPayload = createMockEncodedPayload(exp: Int(expirationTimeSinceEpoch))
+        
+        let localStorage = MockLocalStorage()
+        localStorage.authToken = mockEncodedPayload
+        localStorage.userId = AuthTests.userId
+        
+        let authManager = AuthManager(delegate: authDelegate,
+                                      authRetryPolicy: RetryPolicy(maxRetry: 1, retryInterval: 0, retryBackoff: .linear),
+                                      expirationRefreshPeriod: expirationRefreshPeriod,
+                                      localStorage: localStorage,
+                                      dateProvider: mockDateProvider)
+        
+        authManager.pauseAuthRetries(true)
+        
+        wait(for: [callbackNotCalledExpectation], timeout: waitTime + 1.0)
+    }
+
+    func testMaxRetryLimitRespectedForScheduledRefresh() {
+        let secondCallbackNotCalledExpectation = expectation(description: "\(#function) - scheduled refresh requested auth token beyond maxRetry")
+        secondCallbackNotCalledExpectation.isInverted = true
+        
+        let expirationRefreshPeriod: TimeInterval = 0
+        let mockDateProvider = MockDateProvider()
+        mockDateProvider.currentDate = Date(timeIntervalSince1970: 1_000_000_000)
+        
+        let expiredExp = Int(mockDateProvider.currentDate.timeIntervalSince1970 - 10)
+        let expiredToken = createMockEncodedPayload(exp: expiredExp)
+        
+        var callbackCount = 0
+        let authDelegate = createAuthDelegate({
+            callbackCount += 1
+            if callbackCount > 1 {
+                secondCallbackNotCalledExpectation.fulfill()
+            }
+            return expiredToken
+        })
+        
+        let localStorage = MockLocalStorage()
+        localStorage.userId = AuthTests.userId
+        
+        let authManager = AuthManager(delegate: authDelegate,
+                                      authRetryPolicy: RetryPolicy(maxRetry: 1, retryInterval: 0, retryBackoff: .linear),
+                                      expirationRefreshPeriod: expirationRefreshPeriod,
+                                      localStorage: localStorage,
+                                      dateProvider: mockDateProvider)
+        
+        // 1st attempt increments retryCount to maxRetry
+        authManager.requestNewAuthToken(hasFailedPriorAuth: false, onSuccess: nil, shouldIgnoreRetryPolicy: true)
+        
+        // Scheduled refresh attempt must respect maxRetry even when shouldIgnoreRetryPolicy is true.
+        authManager.scheduleAuthTokenRefreshTimer(interval: 0.01, isScheduledRefresh: true, successCallback: nil)
+        
+        wait(for: [secondCallbackNotCalledExpectation], timeout: 1.0)
+        XCTAssertEqual(callbackCount, 1)
+    }
     
     func testAuthTokenRefreshOnInit() {
         let condition1 = expectation(description: "\(#function) - callback didn't get called when refresh was fired")