diff --git a/src/nvidia_resiliency_ext/fault_tolerance/launcher.py b/src/nvidia_resiliency_ext/fault_tolerance/launcher.py
index db31fe22..08b8962a 100644
--- a/src/nvidia_resiliency_ext/fault_tolerance/launcher.py
+++ b/src/nvidia_resiliency_ext/fault_tolerance/launcher.py
@@ -408,18 +408,22 @@ def _invoke_run_with_any_failed_policy(self, role: str = DEFAULT_ROLE) -> RunRes
                         rank=self._worker_group.group_rank,
                     )
 
-                    logger.info(
-                        "[%s] Detected cluster changes from group_rank=%s "
-                        "(unhealthy_nodes=%s, nodes_waiting=%s); will restart worker group",
-                        role,
-                        group_rank,
-                        unhealthy_count,
-                        num_nodes_waiting,
-                    )
-
-                    # Note: The node that triggered the change (unhealthy or new) already opened
-                    # the rendezvous, so we don't need to open it again here.
-                    self._restart_workers(self._worker_group)
+                    if self._remaining_restarts > 0:
+                        logger.info(
+                            "[%s] Detected cluster changes from group_rank=%s "
+                            "(unhealthy_nodes=%s, nodes_waiting=%s); will restart worker group",
+                            role,
+                            group_rank,
+                            unhealthy_count,
+                            num_nodes_waiting,
+                        )
+                        self._remaining_restarts -= 1
+                        # Note: The node that triggered the change (unhealthy or new) already opened
+                        # the rendezvous, so we don't need to open it again here.
+                        self._restart_workers(self._worker_group)
+                    else:
+                        self._stop_workers(self._worker_group)
+                        return RunResult(state=WorkerState.FAILED)
             else:
                 raise Exception(f"[{role}] Worker group in {state.name} state")