diff --git a/packages/rest/src/Requester.ts b/packages/rest/src/Requester.ts
index 7a1f74a09..ff97ac9f8 100644
--- a/packages/rest/src/Requester.ts
+++ b/packages/rest/src/Requester.ts
@@ -115,9 +115,9 @@ export async function defaultRequestHandler(endpoint: string, options?: RequestO
     if (response.ok) return parseResponse(response, asStream);
     if (!retryCodes.includes(response.status)) await throwFailedRequestError(request, response);
 
-    // Retry
+    // Retry with exponential backoff (in milliseconds)
     lastStatus = response.status;
-    await delay(2 ** i * 0.25);
+    await delay(2 ** i * 250);
 
     continue;
   }
diff --git a/packages/rest/test/unit/Requester.ts b/packages/rest/test/unit/Requester.ts
index d5c6d96d4..c725a42cb 100644
--- a/packages/rest/test/unit/Requester.ts
+++ b/packages/rest/test/unit/Requester.ts
@@ -377,6 +377,8 @@ describe('defaultRequestHandler', () => {
   });
 
   it('should return a default error if retries are unsuccessful', async () => {
+    jest.useFakeTimers();
+
     const responseContent = { error: 'msg' };
     const fakeReturnValue = Promise.resolve(
       Promise.resolve(
@@ -392,14 +394,21 @@ describe('defaultRequestHandler', () => {
 
     mockFetch.mockReturnValue(fakeReturnValue);
 
-    const error = await getError<GitbeakerRetryError>(() =>
+    const errorPromise = getError<GitbeakerRetryError>(() =>
       defaultRequestHandler('http://test.com', {} as RequestOptions),
     );
 
+    // Fast-forward through all retry delays
+    await jest.runAllTimersAsync();
+
+    const error = await errorPromise;
+
     expect(error.message).toBe(
       'Could not successfully complete this request after 10 retries, last status code: 429. Check the applicable rate limits for this endpoint.',
     );
     expect(error).toBeInstanceOf(GitbeakerRetryError);
+
+    jest.useRealTimers();
   });
 
   it('should return correct properties if request is valid', async () => {