diff --git a/client/retry.go b/client/retry.go
index cdae7a6b..06e2d40c 100644
--- a/client/retry.go
+++ b/client/retry.go
@@ -2,9 +2,10 @@ package client
 
 import "golang.org/x/net/context"
 
+// note that returning either true or a non-nil error will result in the call not being retried
 type RetryFunc func(ctx context.Context, req Request, retryCount int, err error) (bool, error)
 
 // always retry on error
 func alwaysRetry(ctx context.Context, req Request, retryCount int, err error) (bool, error) {
-	return true, err
+	return true, nil
 }
diff --git a/client/rpc_client.go b/client/rpc_client.go
index ede9e899..1d6b743f 100644
--- a/client/rpc_client.go
+++ b/client/rpc_client.go
@@ -300,10 +300,16 @@ func (r *rpcClient) Call(ctx context.Context, request Request, response interfac
 				return nil
 			}
 
-			if retry, err := callOpts.Retry(ctx, request, i, err); !retry {
+			retry, rerr := callOpts.Retry(ctx, request, i, err)
+			if rerr != nil {
+				return rerr
+			}
+
+			if !retry {
 				return err
 			}
 
+
 			gerr = err
 		}
 	}
@@ -406,8 +412,13 @@ func (r *rpcClient) Stream(ctx context.Context, request Request, opts ...CallOpt
 				return rsp.stream, nil
 			}
 
-			if retry, err := callOpts.Retry(ctx, request, i, rsp.err); !retry {
-				return nil, err
+			retry, rerr := callOpts.Retry(ctx, request, i, rsp.err)
+			if rerr != nil {
+				return nil, rerr
+			}
+
+			if !retry {
+				return nil, rsp.err
 			}
 
 			grr = err