diff --git a/app/services/ci/retry_build_service.rb b/app/services/ci/retry_build_service.rb
index d67b9f5cc56..c552193e66b 100644
--- a/app/services/ci/retry_build_service.rb
+++ b/app/services/ci/retry_build_service.rb
@@ -28,6 +28,8 @@ module Ci
 
       attributes.push([:user, current_user])
 
+      build.retried = true
+
       Ci::Build.transaction do
         # mark all other builds of that name as retried
         build.pipeline.builds.latest
diff --git a/app/services/merge_requests/add_todo_when_build_fails_service.rb b/app/services/merge_requests/add_todo_when_build_fails_service.rb
index 727768b1a39..6805b2f7d1c 100644
--- a/app/services/merge_requests/add_todo_when_build_fails_service.rb
+++ b/app/services/merge_requests/add_todo_when_build_fails_service.rb
@@ -3,7 +3,7 @@ module MergeRequests
     # Adds a todo to the parent merge_request when a CI build fails
     #
     def execute(commit_status)
-      return if commit_status.allow_failure?
+      return if commit_status.allow_failure? || commit_status.retried?
 
       commit_status_merge_requests(commit_status) do |merge_request|
         todo_service.merge_request_build_failed(merge_request)
diff --git a/changelogs/unreleased/38236-remove-build-failed-todo-if-it-has-been-auto-retried.yml b/changelogs/unreleased/38236-remove-build-failed-todo-if-it-has-been-auto-retried.yml
new file mode 100644
index 00000000000..48b92c02505
--- /dev/null
+++ b/changelogs/unreleased/38236-remove-build-failed-todo-if-it-has-been-auto-retried.yml
@@ -0,0 +1,5 @@
+---
+title: Don't create build failed todos when the job is automatically retried
+merge_request:
+author:
+type: fixed
diff --git a/spec/models/ci/build_spec.rb b/spec/models/ci/build_spec.rb
index 06f76b5501e..41ecdb604f1 100644
--- a/spec/models/ci/build_spec.rb
+++ b/spec/models/ci/build_spec.rb
@@ -1743,19 +1743,34 @@ describe Ci::Build do
   end
 
   describe 'state transition when build fails' do
-    context 'when build is configured to be retried' do
-      subject { create(:ci_build, :running, options: { retry: 3 }) }
+    let(:service) { MergeRequests::AddTodoWhenBuildFailsService.new(project, user) }
 
-      it 'retries builds and assigns a same user to it' do
+    before do
+      allow(MergeRequests::AddTodoWhenBuildFailsService).to receive(:new).and_return(service)
+      allow(service).to receive(:close)
+    end
+
+    context 'when build is configured to be retried' do
+      subject { create(:ci_build, :running, options: { retry: 3 }, project: project, user: user) }
+
+      it 'retries build and assigns the same user to it' do
         expect(described_class).to receive(:retry)
-          .with(subject, subject.user)
+          .with(subject, user)
+
+        subject.drop!
+      end
+
+      it 'does not try to create a todo' do
+        project.add_developer(user)
+
+        expect(service).not_to receive(:commit_status_merge_requests)
 
         subject.drop!
       end
     end
 
     context 'when build is not configured to be retried' do
-      subject { create(:ci_build, :running) }
+      subject { create(:ci_build, :running, project: project, user: user) }
 
       it 'does not retry build' do
         expect(described_class).not_to receive(:retry)
@@ -1770,6 +1785,14 @@ describe Ci::Build do
 
         subject.drop!
       end
+
+      it 'creates a todo' do
+        project.add_developer(user)
+
+        expect(service).to receive(:commit_status_merge_requests)
+
+        subject.drop!
+      end
     end
   end
 end
diff --git a/spec/services/ci/retry_build_service_spec.rb b/spec/services/ci/retry_build_service_spec.rb
index 9db3568abee..b61d1cb765e 100644
--- a/spec/services/ci/retry_build_service_spec.rb
+++ b/spec/services/ci/retry_build_service_spec.rb
@@ -160,8 +160,9 @@ describe Ci::RetryBuildService do
         expect(new_build).to be_created
       end
 
-      it 'does mark old build as retried' do
+      it 'does mark old build as retried in the database and on the instance' do
         expect(new_build).to be_latest
+        expect(build).to be_retried
         expect(build.reload).to be_retried
       end
     end