diff --git a/packages/analytics-js-common/__mocks__/StoreManager.ts b/packages/analytics-js-common/__mocks__/StoreManager.ts
index 822f0954db..9fe8678245 100644
--- a/packages/analytics-js-common/__mocks__/StoreManager.ts
+++ b/packages/analytics-js-common/__mocks__/StoreManager.ts
@@ -2,7 +2,8 @@ import type { IStoreConfig, IStoreManager } from '../src/types/Store';
 import { defaultPluginsManager } from './PluginsManager';
 import { defaultCookieStorage, defaultInMemoryStorage, defaultLocalStorage } from './Storage';
 import { defaultStore, Store } from './Store';
-
+import { defaultLogger } from './Logger';
+import { defaultErrorHandler } from './ErrorHandler';
 // Mock all the methods of the StoreManager class
 
 class StoreManager implements IStoreManager {
@@ -26,6 +27,8 @@ class StoreManager implements IStoreManager {
   };
   getStore = jest.fn(() => defaultStore);
   initializeStorageState = jest.fn();
+  logger = defaultLogger;
+  errorHandler = defaultErrorHandler;
 }
 
 const defaultStoreManager = new StoreManager();
diff --git a/packages/analytics-js-plugins/.size-limit.mjs b/packages/analytics-js-plugins/.size-limit.mjs
index 8849476fc5..3972f02251 100644
--- a/packages/analytics-js-plugins/.size-limit.mjs
+++ b/packages/analytics-js-plugins/.size-limit.mjs
@@ -16,7 +16,7 @@ export default [
   {
     name: 'Plugins - Legacy - CDN',
     path: 'dist/cdn/legacy/plugins/rsa-plugins-*.min.js',
-    limit: '14.1 KiB',
+    limit: '14.5 KiB',
   },
   {
     name: 'Plugins - Modern - CDN',
diff --git a/packages/analytics-js-plugins/__tests__/utilities/retryQueue/RetryQueue.test.ts b/packages/analytics-js-plugins/__tests__/utilities/retryQueue/RetryQueue.test.ts
index bbbe0e46d6..f9777056d4 100644
--- a/packages/analytics-js-plugins/__tests__/utilities/retryQueue/RetryQueue.test.ts
+++ b/packages/analytics-js-plugins/__tests__/utilities/retryQueue/RetryQueue.test.ts
@@ -3,6 +3,7 @@ import { QueueStatuses } from '@rudderstack/analytics-js-common/constants/QueueS
 import { defaultStoreManager } from '@rudderstack/analytics-js-common/__mocks__/StoreManager';
 import { defaultLocalStorage } from '@rudderstack/analytics-js-common/__mocks__/Storage';
 import { Store } from '@rudderstack/analytics-js-common/__mocks__/Store';
+import { defaultLogger } from '@rudderstack/analytics-js-common/__mocks__/Logger';
 import { Schedule } from '../../../src/utilities/retryQueue/Schedule';
 import { RetryQueue } from '../../../src/utilities/retryQueue/RetryQueue';
 import type { QueueItem, QueueItemData } from '../../../src/types/plugins';
@@ -33,6 +34,8 @@ describe('Queue', () => {
       },
       jest.fn(),
       defaultStoreManager,
+      undefined,
+      defaultLogger,
     );
     queue.schedule = schedule;
   });
@@ -247,7 +250,7 @@ describe('Queue', () => {
   it('should retry a task if it fails', () => {
     queue.start();
 
-    // Fail the first time, Succeed the second time
+    // Fail the first time, succeed the last time
     const mockProcessItemCb = jest
       .fn()
       .mockImplementationOnce((_, cb) => cb(new Error('no')))
@@ -298,6 +301,86 @@ describe('Queue', () => {
     });
   });
 
+  it('should retry queue item if process function throws an error', () => {
+    queue.start();
+
+    const mockProcessItemCb = jest
+      .fn()
+      .mockImplementationOnce(() => {
+        throw new Error('error 1');
+      })
+      .mockImplementationOnce(() => {
+        throw new Error('error 2');
+      })
+      .mockImplementationOnce(() => {
+        throw new Error('error 3');
+      });
+    queue.processQueueCb = mockProcessItemCb;
+    queue.maxAttempts = 2;
+
+    queue.addItem('a');
+
+    expect(mockProcessItemCb).toHaveBeenCalledTimes(1);
+    expect(mockProcessItemCb).toHaveBeenCalledWith('a', expect.any(Function), {
+      retryAttemptNumber: 0,
+      maxRetryAttempts: 2,
+      willBeRetried: true,
+      timeSinceFirstAttempt: expect.any(Number),
+      timeSinceLastAttempt: expect.any(Number),
+      reclaimed: false,
+    });
+    expect(defaultLogger.error).toHaveBeenCalledTimes(1);
+    expect(defaultLogger.error).toHaveBeenCalledWith(
+      'RetryQueue:: An unknown error occurred while processing the queue item. The item will be requeued.',
+      new Error('error 1'),
+    );
+
+    // Delay for the first retry
+    mockProcessItemCb.mockClear();
+    defaultLogger.error.mockClear();
+    jest.advanceTimersByTime(queue.getDelay(1));
+
+    expect(mockProcessItemCb).toHaveBeenCalledTimes(1);
+    expect(mockProcessItemCb).toHaveBeenCalledWith('a', expect.any(Function), {
+      retryAttemptNumber: 1,
+      maxRetryAttempts: 2,
+      willBeRetried: true,
+      timeSinceFirstAttempt: expect.any(Number),
+      timeSinceLastAttempt: expect.any(Number),
+      reclaimed: false,
+    });
+    expect(defaultLogger.error).toHaveBeenCalledTimes(1);
+    expect(defaultLogger.error).toHaveBeenCalledWith(
+      'RetryQueue:: An unknown error occurred while processing the queue item. The item will be requeued. Retry attempt 1 of 2.',
+      new Error('error 2'),
+    );
+
+    // Delay for the second retry
+    mockProcessItemCb.mockClear();
+    defaultLogger.error.mockClear();
+    jest.advanceTimersByTime(queue.getDelay(2));
+
+    expect(mockProcessItemCb).toHaveBeenCalledTimes(1);
+    expect(mockProcessItemCb).toHaveBeenCalledWith('a', expect.any(Function), {
+      retryAttemptNumber: 2,
+      maxRetryAttempts: 2,
+      willBeRetried: false, // because maxAttempts is 2
+      timeSinceFirstAttempt: expect.any(Number),
+      timeSinceLastAttempt: expect.any(Number),
+      reclaimed: false,
+    });
+    expect(defaultLogger.error).toHaveBeenCalledTimes(1);
+    expect(defaultLogger.error).toHaveBeenCalledWith(
+      'RetryQueue:: An unknown error occurred while processing the queue item. Retries exhausted (2). The item will be dropped.',
+      new Error('error 3'),
+    );
+
+    // No retries left as all attempts have been made
+    expect(queue.getStorageEntry('queue')).toEqual([]);
+    expect(queue.getStorageEntry('batchQueue')).toEqual([]);
+    expect(queue.getStorageEntry('inProgress')).toEqual({});
+  });
+
   it('should delay retries', () => {
     const mockProcessItemCb = jest.fn((_, cb) => cb());
     queue.processQueueCb = mockProcessItemCb;
@@ -389,6 +472,19 @@ describe('Queue', () => {
     expect(storedQueue[99].item).toEqual(104);
   });
 
+  it('should respect maxItems configuration value 1', () => {
+    queue.maxItems = 1;
+
+    for (let i = 0; i < 105; i += 1) {
+      jest.advanceTimersByTime(1);
+      queue.addItem(i);
+    }
+
+    const storedQueue = queue.store.get(QueueStatuses.QUEUE);
+    expect(storedQueue.length).toEqual(1);
+    expect(storedQueue[0].item).toEqual(104);
+  });
+
   it('should take over a queued task if a queue is abandoned', () => {
     // a wild queue of interest appears
     const foundQueue = new Store(
diff --git a/packages/analytics-js-plugins/src/utilities/retryQueue/RetryQueue.ts b/packages/analytics-js-plugins/src/utilities/retryQueue/RetryQueue.ts
index ac8651a11f..0f55b5b147 100644
--- a/packages/analytics-js-plugins/src/utilities/retryQueue/RetryQueue.ts
+++ b/packages/analytics-js-plugins/src/utilities/retryQueue/RetryQueue.ts
@@ -48,14 +48,6 @@ const sortByTime = (a: QueueItem, b: QueueItem) => a.time - b.time;
 
 const RETRY_QUEUE = 'RetryQueue';
 
-/**
- * Constructs a RetryQueue backed by localStorage
- *
- * @constructor
- * @param {String} name The name of the queue. Will be used to find abandoned queues and retry their items
- * @param {Object} [opts] Optional argument to override `maxItems`, `maxAttempts`, `minRetryDelay, `maxRetryDelay`, `backoffFactor` and `backoffJitter`.
- * @param {QueueProcessCallback} fn The function to call in order to process an item added to the queue
- */
 class RetryQueue implements IQueue<QueueItemData> {
   name: string;
   id: string;
@@ -78,6 +70,17 @@ class RetryQueue implements IQueue<QueueItemData> {
   reclaimEndVal?: Nullable<string>;
   isPageAccessible: boolean;
 
+  /**
+   * Constructs a RetryQueue backed by localStorage
+   *
+   * @param {String} name The name of the queue. Will be used to find abandoned queues and retry their items
+   * @param {QueueOpts} [options] Optional argument to override `maxItems`, `maxAttempts`, `minRetryDelay, `maxRetryDelay`, `backoffFactor` and `backoffJitter`.
+   * @param {QueueProcessCallback} queueProcessCb The function to call in order to process an item added to the queue
+   * @param {IStoreManager} storeManager The store manager instance to use
+   * @param {StorageType} [storageType] The storage type to use. Defaults to LOCAL_STORAGE
+   * @param {ILogger} [logger] The logger to use
+   * @param {QueueBatchItemsSizeCalculatorCallback} [queueBatchItemsSizeCalculatorCb] The callback to use to calculate the size of items in the batch queue
+   */
   constructor(
     name: string,
     options: QueueOpts,
@@ -375,7 +378,12 @@ class RetryQueue implements IQueue<QueueItemData> {
     let queue =
       (this.getStorageEntry(QueueStatuses.QUEUE) as Nullable<QueueItem<QueueItemData>[]>) ?? [];
 
-    queue = queue.slice(-(this.maxItems - 1));
+    if (this.maxItems > 1) {
+      queue = queue.slice(-(this.maxItems - 1));
+    } else {
+      queue = [];
+    }
+
     queue.push(curEntry);
     queue = queue.sort(sortByTime);
 
@@ -419,9 +427,8 @@ class RetryQueue implements IQueue<QueueItemData> {
    * Adds an item to the retry queue
    *
    * @param {Object} qItem The item to process
-   * @param {Error} [error] The error that occurred during processing
    */
-  requeue(qItem: QueueItem<QueueItemData>, error?: Error) {
+  requeue(qItem: QueueItem<QueueItemData>) {
     const { attemptNumber, item, type, id, firstAttemptedAt, lastAttemptedAt, reclaimed } = qItem;
     // Increment the attempt number as we're about to retry
     const attemptNumberToUse = attemptNumber + 1;
@@ -504,7 +511,7 @@ class RetryQueue implements IQueue<QueueItemData> {
       this.setStorageEntry(QueueStatuses.IN_PROGRESS, inProgress);
 
       if (err) {
-        this.requeue({ ...el, firstAttemptedAt, lastAttemptedAt }, err);
+        this.requeue({ ...el, firstAttemptedAt, lastAttemptedAt });
       }
     };
 
@@ -596,7 +603,24 @@ class RetryQueue implements IQueue<QueueItemData> {
           reclaimed,
         });
       } catch (err) {
-        this.logger?.error(RETRY_QUEUE_PROCESS_ERROR(RETRY_QUEUE), err);
+        let errMsg = '';
+        if (el.attemptNumber < this.maxAttempts) {
+          errMsg = 'The item will be requeued.';
+          if (el.attemptNumber > 0) {
+            errMsg = `${errMsg} Retry attempt ${el.attemptNumber} of ${this.maxAttempts}.`;
+          }
+
+          // requeue the item to be retried
+          el.done(err);
+        } else {
+          errMsg = `Retries exhausted (${this.maxAttempts}). The item will be dropped.`;
+
+          // drop the event as we're unable to process it
+          // after the max attempts are exhausted
+          el.done();
+        }
+
+        this.logger?.error(RETRY_QUEUE_PROCESS_ERROR(RETRY_QUEUE, errMsg), err);
       }
     });
 
@@ -717,7 +741,7 @@ class RetryQueue implements IQueue<QueueItemData> {
     // if the queue is abandoned, all the in-progress are failed. retry them immediately and increment the attempt#
     addConcatQueue(their.inProgress, 1);
 
-    our.queue = our.queue.sort(sortByTime);
+    our.queue.sort(sortByTime);
 
     this.setStorageEntry(QueueStatuses.QUEUE, our.queue);
 
@@ -728,7 +752,6 @@ class RetryQueue implements IQueue<QueueItemData> {
     this.processHead();
   }
 
-  // eslint-disable-next-line class-methods-use-this
   clearQueueEntries(other: IStore, localStorageBackoff: number) {
     this.removeStorageEntry(other, 0, localStorageBackoff);
   }
diff --git a/packages/analytics-js-plugins/src/utilities/retryQueue/logMessages.ts b/packages/analytics-js-plugins/src/utilities/retryQueue/logMessages.ts
index b9703cfd70..a239af98dd 100644
--- a/packages/analytics-js-plugins/src/utilities/retryQueue/logMessages.ts
+++ b/packages/analytics-js-plugins/src/utilities/retryQueue/logMessages.ts
@@ -1,7 +1,7 @@
 import { LOG_CONTEXT_SEPARATOR } from '../../shared-chunks/common';
 
-const RETRY_QUEUE_PROCESS_ERROR = (context: string): string =>
-  `${context}${LOG_CONTEXT_SEPARATOR}Process function threw an error.`;
+const RETRY_QUEUE_PROCESS_ERROR = (context: string, errMsg: string): string =>
+  `${context}${LOG_CONTEXT_SEPARATOR}An unknown error occurred while processing the queue item. ${errMsg}`;
 
 const RETRY_QUEUE_ENTRY_REMOVE_ERROR = (context: string, entry: string, attempt: number): string =>
   `${context}${LOG_CONTEXT_SEPARATOR}Failed to remove local storage entry "${entry}" (attempt: ${attempt}.`;
diff --git a/packages/analytics-js/.size-limit.mjs b/packages/analytics-js/.size-limit.mjs
index bc20526b05..80d4225f06 100644
--- a/packages/analytics-js/.size-limit.mjs
+++ b/packages/analytics-js/.size-limit.mjs
@@ -13,7 +13,7 @@ export default [
     name: 'Core - Legacy - NPM (CJS)',
     path: 'dist/npm/legacy/cjs/index.cjs',
     import: '*',
-    limit: '48 KiB',
+    limit: '48.2 KiB',
   },
   {
     name: 'Core - Legacy - NPM (UMD)',
@@ -59,7 +59,7 @@ export default [
     name: 'Core (Bundled) - Legacy - NPM (CJS)',
     path: 'dist/npm/legacy/bundled/cjs/index.cjs',
     import: '*',
-    limit: '48 KiB',
+    limit: '48.2 KiB',
   },
   {
     name: 'Core (Bundled) - Legacy - NPM (UMD)',