diff --git a/Project.toml b/Project.toml
index 3bcc5b7..abac725 100644
--- a/Project.toml
+++ b/Project.toml
@@ -1,7 +1,7 @@
 name = "ParallelTestRunner"
 uuid = "d3525ed8-44d0-4b2c-a655-542cee43accc"
 authors = ["Valentin Churavy <v.churavy@gmail.com>"]
-version = "2.6.3"
+version = "2.7.0"
 
 [deps]
 Dates = "ade2ca70-3891-5945-98fb-dc099432e06a"
diff --git a/src/ParallelTestRunner.jl b/src/ParallelTestRunner.jl
index 1e27ae6..e94d53f 100644
--- a/src/ParallelTestRunner.jl
+++ b/src/ParallelTestRunner.jl
@@ -913,6 +913,17 @@ runtests(MyPackage, args; testsuite)
 
 Workers are automatically recycled when they exceed memory limits to prevent out-of-memory
 issues during long test runs. The memory limit is set based on system architecture.
+
+## Failure Handling
+
+With `recycle_on_failure = true`, a worker is recycled after any test that did not pass, so
+a test that corrupts process-wide state (e.g. wedges a GPU driver) cannot poison subsequent
+tests on the same worker.
+
+With `retries = N` (default 0), tests that did not pass are re-run up to `N` times after
+the main run completes — sequentially, on a single fresh worker, with all other workers
+stopped — so tests that failed due to resource pressure from concurrent workers get an
+otherwise-idle system. Only the final attempt of each test is reported.
 """
 function runtests(mod::Module, args::ParsedArgs;
                   testsuite::Dict{String,Expr} = find_tests(pwd()),
@@ -922,7 +933,8 @@ function runtests(mod::Module, args::ParsedArgs;
                   exename = nothing,
                   exeflags = nothing,
                   env = Vector{Pair{String, String}}(),
-                  stdout = Base.stdout, stderr = Base.stderr, max_worker_rss = get_max_worker_rss())
+                  stdout = Base.stdout, stderr = Base.stderr, max_worker_rss = get_max_worker_rss(),
+                  recycle_on_failure::Bool = false, retries::Integer = 0)
 
     #
     # set-up
@@ -962,6 +974,8 @@ function runtests(mod::Module, args::ParsedArgs;
         stdout,
         stderr,
         max_worker_rss,
+        recycle_on_failure,
+        retries,
     )
 end
 
@@ -981,6 +995,8 @@ function _runtests(mod::Module, args::ParsedArgs;
                    stdout = Base.stdout,
                    stderr = Base.stderr,
                    max_worker_rss = get_max_worker_rss(),
+                   recycle_on_failure::Bool = false,
+                   retries::Integer = 0,
                    )
 
     # determine parallelism
@@ -1190,6 +1206,7 @@ function _runtests(mod::Module, args::ParsedArgs;
 
     tests_to_start = Threads.Atomic{Int}(length(tests))
     next_test = Threads.Atomic{Int}(1)
+    interrupted = false
     try
         @sync for _ in 1:length(tests)
             push!(worker_tasks, Threads.@spawn begin
@@ -1261,6 +1278,11 @@ function _runtests(mod::Module, args::ParsedArgs;
                             # the worker has reached the max-rss limit, recycle it
                             # so future tests start with a smaller working set
                             Malt.stop(wrkr)
+                        elseif recycle_on_failure && anynonpass(result[])
+                            # a failing test may have left the worker in a bad state
+                            # (e.g. a wedged GPU driver whose every later allocation
+                            # fails); recycle it so future tests get a fresh process
+                            Malt.stop(wrkr)
                         end
                     else
                         # One of Malt.TerminatedWorkerException, Malt.RemoteException, or ErrorException
@@ -1299,6 +1321,7 @@ function _runtests(mod::Module, args::ParsedArgs;
             end)
         end
     catch err
+        interrupted = true
         if !(err isa InterruptException)
             println(io_ctx.stderr, "\nCaught an error, stopping...")
         end
@@ -1336,6 +1359,55 @@ function _runtests(mod::Module, args::ParsedArgs;
         end
     end
 
+    # retry failed tests, if requested: sequentially, on a single fresh worker, with every
+    # other worker gone — tests that failed due to resource pressure (e.g. GPU memory
+    # oversubscription from concurrent workers) reliably pass on an otherwise-idle system.
+    # only the retried result is reported; persistent failures fail again and are reported
+    # exactly once.
+    if retries > 0 && !interrupted && args.quickfail === nothing
+        local retry_wrkr = nothing
+        for round in 1:retries
+            retryable = [r.test for r in results.value
+                         if r.result isa Exception || anynonpass(r.result[])]
+            isempty(retryable) && break
+            println(io_ctx.stdout)
+            printstyled(io_ctx.stdout,
+                        "Retrying $(length(retryable)) failed test(s) on a fresh worker...\n";
+                        color = :yellow)
+            for test in retryable
+                if retry_wrkr === nothing || !Malt.isrunning(retry_wrkr)
+                    retry_wrkr = addworker(; init_worker_code, io_ctx.color, exename,
+                                           exeflags, env)
+                end
+                test_t0 = time()
+                result = try
+                    Malt.remote_eval_wait(Main, retry_wrkr.w, :(import ParallelTestRunner))
+                    Malt.remote_call_fetch(invokelatest, retry_wrkr.w, runtest,
+                                           RecordType, testsuite[test], test,
+                                           init_code, test_t0, custom_args)
+                catch ex
+                    isa(ex, InterruptException) && rethrow()
+                    ex
+                end
+                test_t1 = time()
+                output = @lock retry_wrkr.io String(take!(retry_wrkr.io[]))
+                filter!(r -> r.test != test, results.value)
+                push!(results.value, (; test, result, output, test_t0, test_t1))
+                if result isa AbstractTestRecord && !anynonpass(result[])
+                    printstyled(io_ctx.stdout, "  $test passed on retry\n"; color = :green)
+                else
+                    printstyled(io_ctx.stdout, "  $test failed again\n"; color = :red)
+                    # don't let a failure contaminate the next retry
+                    Malt.stop(retry_wrkr)
+                    retry_wrkr = nothing
+                end
+            end
+        end
+        if retry_wrkr !== nothing && Malt.isrunning(retry_wrkr)
+            Malt.stop(retry_wrkr)
+        end
+    end
+
     # print the output generated by each testset
     # (`@sync` above joined all writers, so `results` is quiescent from here on)
     for (testname, result, output, _start, _stop) in results.value