diff --git a/.changeset/cuddly-roses-yawn.md b/.changeset/cuddly-roses-yawn.md
new file mode 100644
index 0000000000..5460c449f3
--- /dev/null
+++ b/.changeset/cuddly-roses-yawn.md
@@ -0,0 +1,10 @@
+---
+'@api3/airnode-utilities': minor
+'@api3/airnode-validator': minor
+'@api3/airnode-deployer': minor
+'@api3/airnode-adapter': minor
+'@api3/airnode-admin': minor
+'@api3/airnode-node': minor
+---
+
+update promise-utils to v0.4.0
diff --git a/package.json b/package.json
index 49aab5b87e..ff3f56411d 100644
--- a/package.json
+++ b/package.json
@@ -106,7 +106,7 @@
   },
   "dependencies": {},
   "devDependencies": {
-    "@api3/promise-utils": "^0.3.0",
+    "@api3/promise-utils": "^0.4.0",
     "@changesets/changelog-github": "^0.4.8",
     "@changesets/cli": "^2.26.0",
     "@octokit/core": "^4.2.0",
diff --git a/packages/airnode-adapter/package.json b/packages/airnode-adapter/package.json
index db97a1b0a6..8b3a9cf9b8 100644
--- a/packages/airnode-adapter/package.json
+++ b/packages/airnode-adapter/package.json
@@ -20,7 +20,7 @@
   },
   "dependencies": {
     "@api3/ois": "2.0.0",
-    "@api3/promise-utils": "^0.3.0",
+    "@api3/promise-utils": "^0.4.0",
     "axios": "^1.3.4",
     "bignumber.js": "^9.1.1",
     "ethers": "^5.7.2",
diff --git a/packages/airnode-admin/package.json b/packages/airnode-admin/package.json
index 8f069397ff..c2f165fbcd 100644
--- a/packages/airnode-admin/package.json
+++ b/packages/airnode-admin/package.json
@@ -28,7 +28,7 @@
     "@api3/airnode-protocol": "^0.10.0",
     "@api3/airnode-utilities": "^0.10.0",
     "@api3/airnode-validator": "^0.10.0",
-    "@api3/promise-utils": "^0.3.0",
+    "@api3/promise-utils": "^0.4.0",
     "ethers": "^5.7.2",
     "lodash": "^4.17.21",
     "yargs": "^17.7.1"
diff --git a/packages/airnode-deployer/package.json b/packages/airnode-deployer/package.json
index c634b5c3dc..09f2897632 100644
--- a/packages/airnode-deployer/package.json
+++ b/packages/airnode-deployer/package.json
@@ -28,7 +28,7 @@
     "@api3/airnode-protocol": "^0.10.0",
     "@api3/airnode-utilities": "^0.10.0",
     "@api3/airnode-validator": "^0.10.0",
-    "@api3/promise-utils": "^0.3.0",
+    "@api3/promise-utils": "^0.4.0",
     "@aws-sdk/client-s3": "^3.295.0",
     "@aws-sdk/signature-v4-crt": "^3.295.0",
     "@google-cloud/storage": "^6.9.4",
diff --git a/packages/airnode-node/package.json b/packages/airnode-node/package.json
index 2cd46be6cd..0cd2472618 100644
--- a/packages/airnode-node/package.json
+++ b/packages/airnode-node/package.json
@@ -30,7 +30,7 @@
     "@api3/airnode-utilities": "^0.10.0",
     "@api3/airnode-validator": "^0.10.0",
     "@api3/ois": "2.0.0",
-    "@api3/promise-utils": "^0.3.0",
+    "@api3/promise-utils": "^0.4.0",
     "@aws-sdk/client-lambda": "^3.295.0",
     "date-fns": "^2.29.3",
     "dotenv": "^16.0.3",
diff --git a/packages/airnode-node/src/api/index.test.ts b/packages/airnode-node/src/api/index.test.ts
index b0e8ca82d4..6d5061f335 100644
--- a/packages/airnode-node/src/api/index.test.ts
+++ b/packages/airnode-node/src/api/index.test.ts
@@ -4,7 +4,7 @@ import { AxiosError, AxiosHeaders } from 'axios';
 import * as fixtures from '../../test/fixtures';
 import { getExpectedTemplateIdV0 } from '../evm/templates';
 import { ApiCallErrorResponse, RequestErrorMessage } from '../types';
-import { API_CALL_TIMEOUT } from '../constants';
+import { FIRST_API_CALL_TIMEOUT, SECOND_API_CALL_TIMEOUT } from '../constants';
 import { callApi, verifyTemplateId } from '.';
 
 describe('callApi', () => {
@@ -63,7 +63,7 @@ describe('callApi', () => {
           },
         ],
       },
-      { timeout: API_CALL_TIMEOUT }
+      { timeout: FIRST_API_CALL_TIMEOUT }
     );
   });
 
@@ -108,7 +108,7 @@ describe('callApi', () => {
           },
         ],
       },
-      { timeout: API_CALL_TIMEOUT }
+      { timeout: FIRST_API_CALL_TIMEOUT }
     );
   });
 
@@ -146,7 +146,7 @@ describe('callApi', () => {
           },
         ],
       },
-      { timeout: API_CALL_TIMEOUT }
+      { timeout: FIRST_API_CALL_TIMEOUT }
     );
   });
 
@@ -197,7 +197,7 @@ describe('callApi', () => {
           },
         ],
       },
-      { timeout: API_CALL_TIMEOUT }
+      { timeout: FIRST_API_CALL_TIMEOUT }
     );
   });
 
@@ -216,7 +216,65 @@ describe('callApi', () => {
       expect.objectContaining({
         parameters: { from: 'ETH', amount: '1' },
       }),
-      { timeout: API_CALL_TIMEOUT }
+      { timeout: FIRST_API_CALL_TIMEOUT }
+    );
+  });
+
+  it('retries the API call if the first attempt fails', async () => {
+    const spy = jest.spyOn(adapter, 'buildAndExecuteRequest') as any;
+    spy.mockRejectedValueOnce(new Error('First attempt failed'));
+    spy.mockResolvedValueOnce({ data: { price: 1000 } });
+    const requestedGasPrice = '100000000';
+    const requestedMinConfirmations = '0';
+    const parameters = {
+      _type: 'int256',
+      _path: 'price',
+      from: 'ETH',
+      _gasPrice: requestedGasPrice,
+      _minConfirmations: requestedMinConfirmations,
+    };
+
+    const [logs, res] = await callApi({
+      type: 'regular',
+      config: fixtures.buildConfig(),
+      aggregatedApiCall: fixtures.buildAggregatedRegularApiCall({ parameters }),
+    });
+
+    expect(logs).toEqual([]);
+    expect(res).toEqual({
+      success: true,
+      data: {
+        encodedValue: '0x0000000000000000000000000000000000000000000000000000000005f5e100',
+        signature:
+          '0xe92f5ee40ddb5aa42cab65fcdc025008b2bc026af80a7c93a9aac4e474f8a88f4f2bd861b9cf9a2b050bf0fd13e9714c4575cebbea658d7501e98c0963a5a38b1c',
+      },
+      // _minConfirmations is processed before making API calls
+      reservedParameterOverrides: {
+        gasPrice: requestedGasPrice,
+      },
+    });
+    expect(spy).toHaveBeenCalledTimes(2);
+    expect(spy).toHaveBeenCalledWith(
+      {
+        endpointName: 'convertToUSD',
+        ois: fixtures.buildOIS(),
+        parameters: { from: 'ETH', amount: '1' },
+        metadata: {
+          chainId: '31337',
+          chainType: 'evm',
+          requestId: '0xf40127616f09d41b20891bcfd326957a0e3d5a5ecf659cff4d8106c04b024374',
+          requesterAddress: '0xe7f1725E7734CE288F8367e1Bb143E90bb3F0512',
+          sponsorAddress: '0x2479808b1216E998309A727df8A0A98A1130A162',
+          sponsorWalletAddress: '0x1C1CEEF1a887eDeAB20219889971e1fd4645b55D',
+        },
+        apiCredentials: [
+          {
+            securitySchemeName: 'myApiSecurityScheme',
+            securitySchemeValue: 'supersecret',
+          },
+        ],
+      },
+      { timeout: SECOND_API_CALL_TIMEOUT }
     );
   });
 
@@ -224,7 +282,7 @@ describe('callApi', () => {
     const spy = jest.spyOn(adapter, 'buildAndExecuteRequest') as any;
     const nonAxiosError = new Error('A non-axios error');
     spy.mockRejectedValueOnce(nonAxiosError);
-
+    spy.mockRejectedValueOnce(nonAxiosError);
     const parameters = { _type: 'int256', _path: 'unknown', from: 'ETH' };
     const aggregatedApiCall = fixtures.buildAggregatedRegularApiCall({ parameters });
     const [logs, res] = await callApi({ type: 'regular', config: fixtures.buildConfig(), aggregatedApiCall });
@@ -256,6 +314,7 @@ describe('callApi', () => {
     const spy = jest.spyOn(adapter, 'buildAndExecuteRequest') as any;
     const axiosError = e;
     spy.mockRejectedValueOnce(axiosError);
+    spy.mockRejectedValueOnce(axiosError);
 
     const parameters = { _type: 'int256', _path: 'unknown', from: 'ETH' };
     const aggregatedApiCall = fixtures.buildAggregatedRegularApiCall({ parameters });
@@ -388,7 +447,7 @@ describe('callApi', () => {
         expect.objectContaining({
           parameters: { from: 'BTC', source: 'airnode', amount: '1' },
         }),
-        { timeout: API_CALL_TIMEOUT }
+        { timeout: FIRST_API_CALL_TIMEOUT }
       );
     });
 
@@ -432,7 +491,7 @@ describe('callApi', () => {
         expect.objectContaining({
           parameters: { from: 'ETH', amount: '1' },
         }),
-        { timeout: API_CALL_TIMEOUT }
+        { timeout: FIRST_API_CALL_TIMEOUT }
       );
     });
   });
diff --git a/packages/airnode-node/src/api/index.ts b/packages/airnode-node/src/api/index.ts
index 8ae423db30..e71e5c85b2 100644
--- a/packages/airnode-node/src/api/index.ts
+++ b/packages/airnode-node/src/api/index.ts
@@ -9,7 +9,7 @@ import compact from 'lodash/compact';
 import { postProcessApiSpecifications, preProcessApiSpecifications } from './processing';
 import { getAirnodeWalletFromPrivateKey, deriveSponsorWalletFromMnemonic } from '../evm';
 import { getReservedParameters } from '../adapters/http/parameters';
-import { API_CALL_TIMEOUT } from '../constants';
+import { FIRST_API_CALL_TIMEOUT, SECOND_API_CALL_TIMEOUT } from '../constants';
 import { isValidRequestId } from '../evm/verification';
 import { getExpectedTemplateIdV0, getExpectedTemplateIdV1 } from '../evm/templates';
 import {
@@ -201,21 +201,27 @@ export async function performApiCall(
   payload: ApiCallPayload
 ): Promise<LogsData<ApiCallErrorResponse | PerformApiCallSuccess>> {
   const options = buildOptions(payload);
-  const timeout = API_CALL_TIMEOUT;
-  // We also pass the timeout to adapter to gracefully abort the request after the timeout
-  const goRes = await go(() => adapter.buildAndExecuteRequest(options, { timeout }), {
-    totalTimeoutMs: timeout,
+  // We also pass the timeout to adapter to gracefully abort the request after the timeout.
+  // timeout passed to adapter will cause axios socket to hang until the timeout is reached
+  // even if the totalTimeoutMs is reached and the 2nd attempt is made
+  const goAttempt1 = await go(() => adapter.buildAndExecuteRequest(options, { timeout: FIRST_API_CALL_TIMEOUT }), {
+    totalTimeoutMs: FIRST_API_CALL_TIMEOUT,
   });
-  if (!goRes.success) {
-    const { aggregatedApiCall } = payload;
-    const log = logger.pend('ERROR', `Failed to call Endpoint:${aggregatedApiCall.endpointName}`, goRes.error);
-    // eslint-disable-next-line import/no-named-as-default-member
-    const axiosErrorMsg = axios.isAxiosError(goRes.error) ? errorMsgFromAxiosError(goRes.error) : '';
-    const errorMessage = compact([RequestErrorMessage.ApiCallFailed, axiosErrorMsg]).join(' ');
-    return [[log], { success: false, errorMessage: errorMessage }];
+  if (goAttempt1.success) {
+    return [[], { ...goAttempt1.data }];
   }
-
-  return [[], { ...goRes.data }];
+  const goAttempt2 = await go(() => adapter.buildAndExecuteRequest(options, { timeout: SECOND_API_CALL_TIMEOUT }), {
+    totalTimeoutMs: SECOND_API_CALL_TIMEOUT,
+  });
+  if (goAttempt2.success) {
+    return [[], { ...goAttempt2.data }];
+  }
+  const { aggregatedApiCall } = payload;
+  const log = logger.pend('ERROR', `Failed to call Endpoint:${aggregatedApiCall.endpointName}`, goAttempt2.error);
+  // eslint-disable-next-line import/no-named-as-default-member
+  const axiosErrorMsg = axios.isAxiosError(goAttempt2.error) ? errorMsgFromAxiosError(goAttempt2.error) : '';
+  const errorMessage = compact([RequestErrorMessage.ApiCallFailed, axiosErrorMsg]).join(' ');
+  return [[log], { success: false, errorMessage: errorMessage }];
 }
 
 export async function processSuccessfulApiCall(
diff --git a/packages/airnode-node/src/constants.ts b/packages/airnode-node/src/constants.ts
index a173c2ccee..77e0dea4f0 100644
--- a/packages/airnode-node/src/constants.ts
+++ b/packages/airnode-node/src/constants.ts
@@ -1,5 +1,8 @@
 // The maximum time a single API call has before it is timed out
-export const API_CALL_TIMEOUT = 30_000;
+export const FIRST_API_CALL_TIMEOUT = 10_000;
+
+// The maximum time a single API call has before it is timed out in the second attempt
+export const SECOND_API_CALL_TIMEOUT = 20_000;
 
 // The number of past blocks to lookup when fetching Airnode RRP events.
 export const BLOCK_COUNT_HISTORY_LIMIT = 300;
diff --git a/packages/airnode-node/src/coordinator/calls/coordinated-execution.test.ts b/packages/airnode-node/src/coordinator/calls/coordinated-execution.test.ts
index d4d4c75e4a..691350dc16 100644
--- a/packages/airnode-node/src/coordinator/calls/coordinated-execution.test.ts
+++ b/packages/airnode-node/src/coordinator/calls/coordinated-execution.test.ts
@@ -96,6 +96,7 @@ describe('callApis', () => {
     jest.spyOn(validator, 'unsafeParseConfigWithSecrets').mockReturnValue(config);
     const spy = jest.spyOn(adapter, 'buildAndExecuteRequest') as jest.SpyInstance;
     spy.mockRejectedValueOnce(new Error('Unexpected error'));
+    spy.mockRejectedValueOnce(new Error('Unexpected error'));
     const parameters = { _type: 'int256', _path: 'prices.1' };
     const aggregatedApiCall = fixtures.buildAggregatedRegularApiCall({ parameters });
     const workerOpts = fixtures.buildWorkerOptions();
@@ -116,8 +117,8 @@ describe('callApis', () => {
         errorMessage: `${RequestErrorMessage.ApiCallFailed}`,
       },
     ]);
-    expect(spy).toHaveBeenCalledTimes(1);
-  });
+    expect(spy).toHaveBeenCalledTimes(2);
+  }, 35000);
 
   it('returns an error if the worker crashes', async () => {
     const spy = jest.spyOn(workers, 'spawn');
diff --git a/packages/airnode-node/test/e2e/signed-data.feature.ts b/packages/airnode-node/test/e2e/signed-data.feature.ts
index 54cd2b42d2..b920bc4d68 100644
--- a/packages/airnode-node/test/e2e/signed-data.feature.ts
+++ b/packages/airnode-node/test/e2e/signed-data.feature.ts
@@ -35,6 +35,6 @@ it('makes a call for signed API data', async () => {
   // Verify that all internal parameters have been removed from the parameters forwarded to the API
   expect(adapter.buildAndExecuteRequest).toHaveBeenCalledWith(
     expect.objectContaining({ parameters: { from: 'ETH', amount: '1' } }),
-    { timeout: 30000 }
+    { timeout: 10000 }
   );
 });
diff --git a/packages/airnode-utilities/package.json b/packages/airnode-utilities/package.json
index 7d63edd8e0..874a76a1a1 100644
--- a/packages/airnode-utilities/package.json
+++ b/packages/airnode-utilities/package.json
@@ -19,7 +19,7 @@
   "main": "dist/index.js",
   "dependencies": {
     "@api3/airnode-validator": "^0.10.0",
-    "@api3/promise-utils": "^0.3.0",
+    "@api3/promise-utils": "^0.4.0",
     "date-fns": "^2.29.3",
     "ethers": "^5.7.2"
   },
diff --git a/packages/airnode-validator/package.json b/packages/airnode-validator/package.json
index 131ca0c190..7887c0ef0a 100644
--- a/packages/airnode-validator/package.json
+++ b/packages/airnode-validator/package.json
@@ -22,7 +22,7 @@
   },
   "dependencies": {
     "@api3/ois": "2.0.0",
-    "@api3/promise-utils": "^0.3.0",
+    "@api3/promise-utils": "^0.4.0",
     "dotenv": "^16.0.3",
     "ethers": "^5.7.2",
     "lodash": "^4.17.21",
diff --git a/yarn.lock b/yarn.lock
index e41b879fdf..74db3d233e 100644
--- a/yarn.lock
+++ b/yarn.lock
@@ -18,10 +18,10 @@
     lodash "^4.17.21"
     zod "^3.20.6"
 
-"@api3/promise-utils@^0.3.0":
-  version "0.3.0"
-  resolved "https://registry.yarnpkg.com/@api3/promise-utils/-/promise-utils-0.3.0.tgz#e7ebf92bfd8c1d39983321fc5445070c51fce176"
-  integrity sha512-fH3CzEcsCQjoX6BZ5M+3yRIXZ2zz4/nFdzKUB4wvn3KjvvzvroHFZrzhbKa4mB9E4AS0xnou1AXhlrnN5Fcy+A==
+"@api3/promise-utils@^0.4.0":
+  version "0.4.0"
+  resolved "https://registry.yarnpkg.com/@api3/promise-utils/-/promise-utils-0.4.0.tgz#d1dcd77d74377b4fdb3071d2cc76d98c9151309c"
+  integrity sha512-+8fcNjjQeQAuuSXFwu8PMZcYzjwjDiGYcMUfAQ0lpREb1zHonwWZ2N0B9h/g1cvWzg9YhElbeb/SyhCrNm+b/A==
 
 "@aws-crypto/crc32@3.0.0":
   version "3.0.0"