diff --git a/optimizely/odp/odp_event_manager.py b/optimizely/odp/odp_event_manager.py
index 3fb961ac..09269297 100644
--- a/optimizely/odp/odp_event_manager.py
+++ b/optimizely/odp/odp_event_manager.py
@@ -164,7 +164,7 @@ def _flush_batch(self) -> None:
         self.logger.debug(f'ODP event queue: flushing batch size {batch_len}.')
         should_retry = False
         initial_retry_interval = 0.2  # 200ms
-        max_retry_interval = 1.0  # 1 second
+        max_retry_interval = 3.0  # 3 seconds
 
         for i in range(1 + self.retry_count):
             try:
diff --git a/tests/test_odp_event_manager.py b/tests/test_odp_event_manager.py
index acec396f..0b7e10a3 100644
--- a/tests/test_odp_event_manager.py
+++ b/tests/test_odp_event_manager.py
@@ -305,6 +305,41 @@ def test_odp_event_manager_retry_success(self, *args):
         self.assertStrictTrue(event_manager.is_running)
         event_manager.stop()
 
+    def test_odp_event_manager_retry_max_interval_3_seconds(self, *args):
+        """Verify that max retry interval is capped at 3 seconds."""
+        mock_logger = mock.Mock()
+        event_manager = OdpEventManager(mock_logger)
+        event_manager.start(self.odp_config)
+        event_manager.retry_count = 5  # Increase retry count to test higher exponential values
+
+        number_of_tries = event_manager.retry_count + 1
+
+        with mock.patch.object(
+            event_manager.api_manager, 'send_odp_events', new_callable=CopyingMock, return_value=True
+        ) as mock_send, mock.patch('time.sleep') as mock_sleep:
+            event_manager.send_event(**self.events[0])
+            event_manager.flush()
+            event_manager.event_queue.join()
+
+        mock_send.assert_has_calls(
+            [mock.call(self.api_key, self.api_host, [self.processed_events[0]])] * number_of_tries
+        )
+        self.assertEqual(len(event_manager._current_batch), 0)
+        # Verify exponential backoff with 3s cap: 0.2s, 0.4s, 0.8s, 1.6s, 3.0s (capped)
+        # Delays are: 0.2 * 2^0, 0.2 * 2^1, 0.2 * 2^2, 0.2 * 2^3, min(0.2 * 2^4, 3.0)
+        mock_sleep.assert_has_calls([
+            mock.call(0.2),   # 1st retry: 0.2 * 2^0 = 0.2
+            mock.call(0.4),   # 2nd retry: 0.2 * 2^1 = 0.4
+            mock.call(0.8),   # 3rd retry: 0.2 * 2^2 = 0.8
+            mock.call(1.6),   # 4th retry: 0.2 * 2^3 = 1.6
+            mock.call(3.0)    # 5th retry: min(0.2 * 2^4, 3.0) = min(3.2, 3.0) = 3.0
+        ])
+        mock_logger.debug.assert_any_call('Error dispatching ODP events, retrying after 3.0s.')
+        mock_logger.error.assert_called_once_with(
+            f'ODP event send failed (Failed after 5 retries: {[self.processed_events[0]]}).'
+        )
+        event_manager.stop()
+
     def test_odp_event_manager_send_failure(self, *args):
         mock_logger = mock.Mock()
         event_manager = OdpEventManager(mock_logger)