diff --git a/src/xai_sdk/retry.py b/src/xai_sdk/retry.py
new file mode 100644
index 0000000..19f85c0
--- /dev/null
+++ b/src/xai_sdk/retry.py
@@ -0,0 +1,99 @@
+"""Retry utilities for resilient SDK operations.
+
+Provides retry strategies and decorators for handling transient failures
+in xAI SDK operations.
+"""
+
+import time
+from typing import Callable, TypeVar, Any, Optional
+from functools import wraps
+
+T = TypeVar("T")
+
+
+class RetryPolicy:
+    """Configuration for retry behavior.
+    
+    Attributes:
+        max_retries: Maximum number of retry attempts (default: 3).
+        initial_delay: Initial delay in seconds before first retry (default: 0.1).
+        max_delay: Maximum delay in seconds between retries (default: 10.0).
+        exponential_base: Base for exponential backoff (default: 2.0).
+    """
+
+    def __init__(
+        self,
+        max_retries: int = 3,
+        initial_delay: float = 0.1,
+        max_delay: float = 10.0,
+        exponential_base: float = 2.0,
+    ) -> None:
+        """Initialize a retry policy.
+        
+        Args:
+            max_retries: Maximum number of attempts.
+            initial_delay: Initial delay before first retry.
+            max_delay: Maximum delay between retries.
+            exponential_base: Base for exponential backoff calculation.
+        """
+        self.max_retries = max_retries
+        self.initial_delay = initial_delay
+        self.max_delay = max_delay
+        self.exponential_base = exponential_base
+
+    def get_delay(self, attempt: int) -> float:
+        """Calculate delay for a given attempt number.
+        
+        Args:
+            attempt: The attempt number (0-indexed).
+            
+        Returns:
+            The delay in seconds.
+        """
+        delay = self.initial_delay * (self.exponential_base ** attempt)
+        return min(delay, self.max_delay)
+
+
+def retry(
+    policy: Optional[RetryPolicy] = None,
+    retryable_exceptions: tuple = (Exception,),
+) -> Callable[[Callable[..., T]], Callable[..., T]]:
+    """Decorator to retry a function with exponential backoff.
+    
+    Args:
+        policy: The retry policy to use (default: standard policy).
+        retryable_exceptions: Exceptions that should trigger a retry.
+        
+    Returns:
+        A decorator that adds retry logic to a function.
+        
+    Example:
+        ```
+        from xai_sdk.retry import retry
+        
+        @retry()
+        def unstable_operation():
+            # This will be retried up to 3 times if it raises an exception
+            pass
+        ```
+    """
+    if policy is None:
+        policy = RetryPolicy()
+
+    def decorator(func: Callable[..., T]) -> Callable[..., T]:
+        @wraps(func)
+        def wrapper(*args: Any, **kwargs: Any) -> T:
+            for attempt in range(policy.max_retries + 1):
+                try:
+                    return func(*args, **kwargs)
+                except retryable_exceptions as e:
+                    if attempt == policy.max_retries:
+                        raise
+                    delay = policy.get_delay(attempt)
+                    time.sleep(delay)
+            # Should never reach here
+            raise RuntimeError("Unexpected retry logic error")
+
+        return wrapper
+
+    return decorator