diff --git a/gax-java/gax/src/main/java/com/google/api/gax/retrying/ExponentialRetryAlgorithm.java b/gax-java/gax/src/main/java/com/google/api/gax/retrying/ExponentialRetryAlgorithm.java
index b035246746..96aba4a1ec 100644
--- a/gax-java/gax/src/main/java/com/google/api/gax/retrying/ExponentialRetryAlgorithm.java
+++ b/gax-java/gax/src/main/java/com/google/api/gax/retrying/ExponentialRetryAlgorithm.java
@@ -70,7 +70,7 @@ public TimedAttemptSettings createFirstAttempt() {
     return TimedAttemptSettings.newBuilder()
         .setGlobalSettings(globalSettings)
         .setRetryDelay(Duration.ZERO)
-        .setRpcTimeout(globalSettings.getInitialRpcTimeout())
+        .setRpcTimeout(getInitialTimeout(globalSettings))
         .setRandomizedRetryDelay(Duration.ZERO)
         .setAttemptCount(0)
         .setOverallAttemptCount(0)
@@ -93,12 +93,13 @@ public TimedAttemptSettings createFirstAttempt(RetryingContext context) {
     }
 
     RetrySettings retrySettings = context.getRetrySettings();
+
     return TimedAttemptSettings.newBuilder()
         // Use the given retrySettings rather than the settings this was created with.
         // Attempts created using the TimedAttemptSettings built here will use these
         // retrySettings, but a new call will not (unless overridden again).
         .setGlobalSettings(retrySettings)
-        .setRpcTimeout(retrySettings.getInitialRpcTimeout())
+        .setRpcTimeout(getInitialTimeout(retrySettings))
         .setRetryDelay(Duration.ZERO)
         .setRandomizedRetryDelay(Duration.ZERO)
         .setAttemptCount(0)
@@ -261,4 +262,18 @@ protected long nextRandomLong(long bound) {
         ? ThreadLocalRandom.current().nextLong(bound)
         : bound;
   }
+
+  /**
+   * Returns the timeout of the first attempt. The initial timeout will be min(initialRpcTimeout,
+   * totalTimeout) if totalTimeout is set.
+   */
+  private Duration getInitialTimeout(RetrySettings retrySettings) {
+    // If the totalTimeout is zero (not set), then retries are capped by the max attempt
+    // number. The first attempt will use the initialRpcTimeout value for RPC timeout.
+    long totalTimeout = retrySettings.getTotalTimeout().toMillis();
+    return totalTimeout == 0
+        ? retrySettings.getInitialRpcTimeout()
+        : Duration.ofMillis(
+            Math.min(retrySettings.getInitialRpcTimeout().toMillis(), totalTimeout));
+  }
 }
diff --git a/gax-java/gax/src/main/java/com/google/api/gax/retrying/RetrySettings.java b/gax-java/gax/src/main/java/com/google/api/gax/retrying/RetrySettings.java
index caf25725dc..12774a81b0 100644
--- a/gax-java/gax/src/main/java/com/google/api/gax/retrying/RetrySettings.java
+++ b/gax-java/gax/src/main/java/com/google/api/gax/retrying/RetrySettings.java
@@ -158,6 +158,10 @@ public abstract class RetrySettings implements Serializable {
    * Duration.ZERO} allows the RPC to continue indefinitely (until it hits a Connect Timeout or the
    * connection has been terminated).
    *
+   * <p>{@link #getTotalTimeout()} caps how long the logic should keep trying the RPC until it gives
+   * up completely. If {@link #getTotalTimeout()} is set, initialRpcTimeout should be <=
+   * totalTimeout.
+   *
    * <p>If there are no configurations, Retries have the default initial RPC timeout value of {@code
    * Duration.ZERO}. LRO polling does not use the Initial RPC Timeout value.
    */
@@ -283,6 +287,10 @@ public abstract static class Builder {
      * Duration.ZERO} allows the RPC to continue indefinitely (until it hits a Connect Timeout or
      * the connection has been terminated).
      *
+     * <p>{@link #getTotalTimeout()} caps how long the logic should keep trying the RPC until it
+     * gives up completely. If {@link #getTotalTimeout()} is set, initialRpcTimeout should be <=
+     * totalTimeout.
+     *
      * <p>If there are no configurations, Retries have the default initial RPC timeout value of
      * {@code Duration.ZERO}. LRO polling does not use the Initial RPC Timeout value.
      */
@@ -382,6 +390,10 @@ public abstract static class Builder {
      * Duration.ZERO} allows the RPC to continue indefinitely (until it hits a Connect Timeout or
      * the connection has been terminated).
      *
+     * <p>{@link #getTotalTimeout()} caps how long the logic should keep trying the RPC until it
+     * gives up completely. If {@link #getTotalTimeout()} is set, initialRpcTimeout should be <=
+     * totalTimeout.
+     *
      * <p>If there are no configurations, Retries have the default initial RPC timeout value of
      * {@code Duration.ZERO}. LRO polling does not use the Initial RPC Timeout value.
      */
diff --git a/gax-java/gax/src/test/java/com/google/api/gax/retrying/ExponentialRetryAlgorithmTest.java b/gax-java/gax/src/test/java/com/google/api/gax/retrying/ExponentialRetryAlgorithmTest.java
index d0c1ee3ed9..ca39a429cd 100644
--- a/gax-java/gax/src/test/java/com/google/api/gax/retrying/ExponentialRetryAlgorithmTest.java
+++ b/gax-java/gax/src/test/java/com/google/api/gax/retrying/ExponentialRetryAlgorithmTest.java
@@ -97,6 +97,48 @@ public void testCreateFirstAttemptOverride() {
     assertEquals(Duration.ZERO, attempt.getRetryDelay());
   }
 
+  @Test
+  public void testCreateFirstAttemptHasCorrectTimeout() {
+    long rpcTimeout = 100;
+    long totalTimeout = 10;
+    RetrySettings retrySettings =
+        RetrySettings.newBuilder()
+            .setMaxAttempts(6)
+            .setInitialRetryDelay(Duration.ofMillis(1L))
+            .setRetryDelayMultiplier(2.0)
+            .setMaxRetryDelay(Duration.ofMillis(8L))
+            .setInitialRpcTimeout(Duration.ofMillis(rpcTimeout))
+            .setRpcTimeoutMultiplier(1.0)
+            .setMaxRpcTimeout(Duration.ofMillis(rpcTimeout))
+            .setTotalTimeout(Duration.ofMillis(totalTimeout))
+            .build();
+
+    ExponentialRetryAlgorithm algorithm = new ExponentialRetryAlgorithm(retrySettings, clock);
+
+    TimedAttemptSettings attempt = algorithm.createFirstAttempt();
+    assertEquals(Duration.ofMillis(totalTimeout), attempt.getRpcTimeout());
+
+    long overrideRpcTimeout = 100;
+    long overrideTotalTimeout = 20;
+    RetrySettings retrySettingsOverride =
+        retrySettings
+            .toBuilder()
+            .setInitialRpcTimeout(Duration.ofMillis(overrideRpcTimeout))
+            .setMaxRpcTimeout(Duration.ofMillis(overrideRpcTimeout))
+            .setTotalTimeout(Duration.ofMillis(overrideTotalTimeout))
+            .build();
+    RetryingContext retryingContext =
+        FakeCallContext.createDefault().withRetrySettings(retrySettingsOverride);
+    attempt = algorithm.createFirstAttempt(retryingContext);
+    assertEquals(Duration.ofMillis(overrideTotalTimeout), attempt.getRpcTimeout());
+
+    RetrySettings noTotalTimeout = retrySettings.toBuilder().setTotalTimeout(Duration.ZERO).build();
+
+    algorithm = new ExponentialRetryAlgorithm(noTotalTimeout, clock);
+    attempt = algorithm.createFirstAttempt();
+    assertEquals(attempt.getRpcTimeout(), retrySettings.getInitialRpcTimeout());
+  }
+
   @Test
   public void testCreateNextAttempt() {
     TimedAttemptSettings firstAttempt = algorithm.createFirstAttempt();