diff --git a/transact/src/main/java/dev/dbos/transact/execution/DBOSExecutor.java b/transact/src/main/java/dev/dbos/transact/execution/DBOSExecutor.java
index 51ca80ee..9400d82a 100644
--- a/transact/src/main/java/dev/dbos/transact/execution/DBOSExecutor.java
+++ b/transact/src/main/java/dev/dbos/transact/execution/DBOSExecutor.java
@@ -426,8 +426,8 @@ public <T, E extends Exception> T runStepInternal(
           opts.name(),
           opts.retriesAllowed(),
           opts.maxAttempts(),
-          opts.backOffRate(),
           opts.intervalSeconds(),
+          opts.backOffRate(),
           childWfId,
           () -> {
             var res = stepfunc.execute();
diff --git a/transact/src/test/java/dev/dbos/transact/step/ServiceWFAndStep.java b/transact/src/test/java/dev/dbos/transact/step/ServiceWFAndStep.java
index f0c735cd..2ae69b97 100644
--- a/transact/src/test/java/dev/dbos/transact/step/ServiceWFAndStep.java
+++ b/transact/src/test/java/dev/dbos/transact/step/ServiceWFAndStep.java
@@ -19,4 +19,6 @@ public interface ServiceWFAndStep {
   String stepWithLongRetry(String input) throws Exception;
 
   String stepRetryWorkflow(String input);
+
+  String inlineStepRetryWorkflow(String input);
 }
diff --git a/transact/src/test/java/dev/dbos/transact/step/ServiceWFAndStepImpl.java b/transact/src/test/java/dev/dbos/transact/step/ServiceWFAndStepImpl.java
index fed427bd..62726265 100644
--- a/transact/src/test/java/dev/dbos/transact/step/ServiceWFAndStepImpl.java
+++ b/transact/src/test/java/dev/dbos/transact/step/ServiceWFAndStepImpl.java
@@ -135,4 +135,38 @@ public String stepRetryWorkflow(String input) {
 
     return result;
   }
+
+  @Workflow(name = "inlineStepRetryTestWorkflow")
+  public String inlineStepRetryWorkflow(String input) {
+    long ctime = System.currentTimeMillis();
+    boolean caught = false;
+    String result = "2 Retries: ";
+    try {
+      result =
+          result
+              + DBOS.runStep(
+                  () -> {
+                    ++this.stepWithRetryRuns;
+                    throw new Exception("Will not ever run");
+                  },
+                  new StepOptions("inlineStepWithRetries")
+                      .withRetriesAllowed(true)
+                      .withMaxAttempts(2)
+                      .withIntervalSeconds(0.01)
+                      .withBackoffRate(2.0));
+      ;
+    } catch (Exception e) {
+      caught = true;
+    }
+    if (!caught) {
+      result += "<Step with retries should have thrown>";
+    }
+    if (System.currentTimeMillis() - ctime > 1000) {
+      result += "<Retry took too long>";
+    }
+    result += this.stepWithRetryRuns;
+    result += ".";
+
+    return result;
+  }
 }
diff --git a/transact/src/test/java/dev/dbos/transact/step/StepsTest.java b/transact/src/test/java/dev/dbos/transact/step/StepsTest.java
index b6106182..9b129e2a 100644
--- a/transact/src/test/java/dev/dbos/transact/step/StepsTest.java
+++ b/transact/src/test/java/dev/dbos/transact/step/StepsTest.java
@@ -273,4 +273,21 @@ public void stepRetryLogic() throws Exception {
     assertEquals(2, stepInfos.get(2).functionId());
     assertNull(stepInfos.get(2).error());
   }
+
+  @Test
+  public void inlineStepRetryLogic() throws Exception {
+    ServiceWFAndStep service =
+        DBOS.registerWorkflows(ServiceWFAndStep.class, new ServiceWFAndStepImpl());
+
+    DBOS.launch();
+
+    String workflowId = "wf-inlinestepretrytest-1234";
+    try (var id = new WorkflowOptions(workflowId).setContext()) {
+      service.inlineStepRetryWorkflow("input");
+    }
+
+    var handle = DBOS.retrieveWorkflow(workflowId);
+    String expectedRes = "2 Retries: 2.";
+    assertEquals(expectedRes, (String) handle.getResult());
+  }
 }