diff --git a/reactivex/operators/_retry.py b/reactivex/operators/_retry.py
index 10920687..c86502eb 100644
--- a/reactivex/operators/_retry.py
+++ b/reactivex/operators/_retry.py
@@ -1,7 +1,7 @@
 from typing import TypeVar
 
 import reactivex
-from reactivex import Observable
+from reactivex import Observable, abc
 from reactivex.internal import curry_flip
 from reactivex.internal.utils import infinite
 
@@ -17,6 +17,10 @@ def retry_(
     times or until it successfully terminates. If the retry count is
     not specified, it retries indefinitely.
 
+    The retry budget is per-subscription, so combining ``retry(n)`` with
+    ``repeat()`` works as expected: each resubscription by ``repeat()``
+    starts with a fresh retry allowance.
+
     Examples:
         >>> result = source.pipe(retry())
         >>> result = retry()(source)
@@ -32,12 +36,21 @@ def retry_(
         sequence repeatedly until it terminates successfully.
     """
 
-    if retry_count is None:
-        gen = infinite()
-    else:
-        gen = range(retry_count)
-
-    return reactivex.catch_with_iterable(source for _ in gen)
+    def subscribe(
+        observer: abc.ObserverBase[_T], scheduler_: abc.SchedulerBase | None = None
+    ) -> abc.DisposableBase:
+        # Create a fresh generator on every subscription so that the retry
+        # budget is not shared across resubscriptions (e.g. via repeat()).
+        if retry_count is None:
+            gen = infinite()
+        else:
+            gen = range(retry_count)
+
+        return reactivex.catch_with_iterable(source for _ in gen).subscribe(
+            observer, scheduler=scheduler_
+        )
+
+    return Observable(subscribe)
 
 
 __all__ = ["retry_"]
diff --git a/tests/test_observable/test_retry.py b/tests/test_observable/test_retry.py
index b9f4bd7d..9f9ac083 100644
--- a/tests/test_observable/test_retry.py
+++ b/tests/test_observable/test_retry.py
@@ -193,6 +193,31 @@ def dispose(_, __):
         with pytest.raises(Exception):
             xss.subscribe()
 
+    def test_retry_with_count_combined_with_repeat(self):
+        """retry(n) should reset its budget per subscription so repeat() works correctly.
+
+        Regression test for https://github.com/ReactiveX/RxPY/issues/712.
+        """
+        scheduler = TestScheduler()
+        xs = scheduler.create_cold_observable(on_next(90, 42), on_completed(200))
+
+        result = scheduler.start(
+            lambda: xs.pipe(ops.retry(2), ops.repeat()),
+            disposed=1000,
+        )
+        assert result.messages == [
+            on_next(290, 42),
+            on_next(490, 42),
+            on_next(690, 42),
+            on_next(890, 42),
+        ]
+        assert xs.subscriptions == [
+            subscribe(200, 400),
+            subscribe(400, 600),
+            subscribe(600, 800),
+            subscribe(800, 1000),
+        ]
+
 
 if __name__ == "__main__":
     unittest.main()