diff --git a/linera-rpc/src/grpc/client.rs b/linera-rpc/src/grpc/client.rs
index e68f90f34762..b578f6a1f37f 100644
--- a/linera-rpc/src/grpc/client.rs
+++ b/linera-rpc/src/grpc/client.rs
@@ -1,7 +1,16 @@
 // Copyright (c) Zefchain Labs, Inc.
 // SPDX-License-Identifier: Apache-2.0
 
-use std::{collections::BTreeSet, fmt, future::Future, iter};
+use std::{
+    collections::BTreeSet,
+    fmt,
+    future::Future,
+    iter,
+    sync::{
+        atomic::{AtomicU32, Ordering},
+        Arc,
+    },
+};
 
 use futures::{future, stream, StreamExt};
 use linera_base::{
@@ -279,7 +288,8 @@ impl ValidatorNode for GrpcClient {
     async fn subscribe(&self, chains: Vec<ChainId>) -> Result<Self::NotificationStream, NodeError> {
         let retry_delay = self.retry_delay;
         let max_retries = self.max_retries;
-        let mut retry_count = 0;
+        // Use shared atomic counter so unfold can reset it on successful reconnection.
+        let retry_count = Arc::new(AtomicU32::new(0));
         let subscription_request = SubscriptionRequest {
             chain_ids: chains.into_iter().map(|chain| chain.into()).collect(),
         };
@@ -298,17 +308,24 @@ impl ValidatorNode for GrpcClient {
 
         // A stream of `Result<grpc::Notification, tonic::Status>` that keeps calling
         // `client.subscribe(request)` endlessly and without delay.
+        let retry_count_for_unfold = retry_count.clone();
         let endlessly_retrying_notification_stream = stream::unfold((), move |()| {
             let mut client = client.clone();
             let subscription_request = subscription_request.clone();
             let mut stream = stream.take();
+            let retry_count = retry_count_for_unfold.clone();
             async move {
                 let stream = if let Some(stream) = stream.take() {
                     future::Either::Right(stream)
                 } else {
                     match client.subscribe(subscription_request.clone()).await {
                         Err(err) => future::Either::Left(stream::iter(iter::once(Err(err)))),
-                        Ok(response) => future::Either::Right(response.into_inner()),
+                        Ok(response) => {
+                            // Reset retry count on successful reconnection.
+                            retry_count.store(0, Ordering::Relaxed);
+                            trace!("Successfully reconnected subscription stream");
+                            future::Either::Right(response.into_inner())
+                        }
                     }
                 };
                 Some((stream, ()))
@@ -328,15 +345,18 @@ impl ValidatorNode for GrpcClient {
             })
             .take_while(move |result| {
                 let Err(status) = result else {
-                    retry_count = 0;
+                    retry_count.store(0, Ordering::Relaxed);
                     return future::Either::Left(future::ready(true));
                 };
 
-                if !span.in_scope(|| Self::is_retryable(status)) || retry_count >= max_retries {
+                let current_retry_count = retry_count.load(Ordering::Relaxed);
+                if !span.in_scope(|| Self::is_retryable(status))
+                    || current_retry_count >= max_retries
+                {
                     return future::Either::Left(future::ready(false));
                 }
-                let delay = retry_delay.saturating_mul(retry_count);
-                retry_count += 1;
+                let delay = retry_delay.saturating_mul(current_retry_count);
+                retry_count.fetch_add(1, Ordering::Relaxed);
                 future::Either::Right(async move {
                     linera_base::time::timer::sleep(delay).await;
                     true