diff --git a/spring-cloud-commons/src/main/java/org/springframework/cloud/client/loadbalancer/LoadBalancerAutoConfiguration.java b/spring-cloud-commons/src/main/java/org/springframework/cloud/client/loadbalancer/LoadBalancerAutoConfiguration.java
index 02257ac0..9f4cb42d 100644
--- a/spring-cloud-commons/src/main/java/org/springframework/cloud/client/loadbalancer/LoadBalancerAutoConfiguration.java
+++ b/spring-cloud-commons/src/main/java/org/springframework/cloud/client/loadbalancer/LoadBalancerAutoConfiguration.java
@@ -126,8 +126,8 @@ public class LoadBalancerAutoConfiguration {
 		public RetryLoadBalancerInterceptor ribbonInterceptor(
 				LoadBalancerClient loadBalancerClient, LoadBalancerRetryProperties properties,
 				LoadBalancedRetryPolicyFactory lbRetryPolicyFactory,
-				LoadBalancerRequestFactory requestFactory, RetryTemplate retryTemplate) {
-			return new RetryLoadBalancerInterceptor(loadBalancerClient, retryTemplate, properties,
+				LoadBalancerRequestFactory requestFactory) {
+			return new RetryLoadBalancerInterceptor(loadBalancerClient, properties,
 					lbRetryPolicyFactory, requestFactory);
 		}
 
diff --git a/spring-cloud-commons/src/main/java/org/springframework/cloud/client/loadbalancer/RetryLoadBalancerInterceptor.java b/spring-cloud-commons/src/main/java/org/springframework/cloud/client/loadbalancer/RetryLoadBalancerInterceptor.java
index d632b471..0bab8127 100644
--- a/spring-cloud-commons/src/main/java/org/springframework/cloud/client/loadbalancer/RetryLoadBalancerInterceptor.java
+++ b/spring-cloud-commons/src/main/java/org/springframework/cloud/client/loadbalancer/RetryLoadBalancerInterceptor.java
@@ -43,24 +43,15 @@ public class RetryLoadBalancerInterceptor implements ClientHttpRequestIntercepto
 	private LoadBalancerRequestFactory requestFactory;
 
 
-	public RetryLoadBalancerInterceptor(LoadBalancerClient loadBalancer, RetryTemplate retryTemplate,
+	public RetryLoadBalancerInterceptor(LoadBalancerClient loadBalancer,
 										LoadBalancerRetryProperties lbProperties,
 										LoadBalancedRetryPolicyFactory lbRetryPolicyFactory,
 										LoadBalancerRequestFactory requestFactory) {
 		this.loadBalancer = loadBalancer;
 		this.lbRetryPolicyFactory = lbRetryPolicyFactory;
-		this.retryTemplate = retryTemplate;
 		this.lbProperties = lbProperties;
 		this.requestFactory = requestFactory;
 	}
-	
-	public RetryLoadBalancerInterceptor(LoadBalancerClient loadBalancer, RetryTemplate retryTemplate,
-										LoadBalancerRetryProperties lbProperties,
-										LoadBalancedRetryPolicyFactory lbRetryPolicyFactory) {
-		// for backwards compatibility
-		this(loadBalancer, retryTemplate, lbProperties, lbRetryPolicyFactory, 
-				new LoadBalancerRequestFactory(loadBalancer));
-	}
 
 	@Override
 	public ClientHttpResponse intercept(final HttpRequest request, final byte[] body,
@@ -70,11 +61,13 @@ public class RetryLoadBalancerInterceptor implements ClientHttpRequestIntercepto
 		Assert.state(serviceName != null, "Request URI does not contain a valid hostname: " + originalUri);
 		final LoadBalancedRetryPolicy retryPolicy = lbRetryPolicyFactory.create(serviceName,
 				loadBalancer);
-		retryTemplate.setRetryPolicy(
+		RetryTemplate template = this.retryTemplate == null ? new RetryTemplate() : this.retryTemplate;
+		template.setThrowLastExceptionOnExhausted(true);
+		template.setRetryPolicy(
 				!lbProperties.isEnabled() || retryPolicy == null ? new NeverRetryPolicy()
 						: new InterceptorRetryPolicy(request, retryPolicy, loadBalancer,
 						serviceName));
-		return retryTemplate
+		return template
 				.execute(new RetryCallback<ClientHttpResponse, IOException>() {
 					@Override
 					public ClientHttpResponse doWithRetry(RetryContext context)
diff --git a/spring-cloud-commons/src/test/java/org/springframework/cloud/client/loadbalancer/RetryLoadBalancerInterceptorTest.java b/spring-cloud-commons/src/test/java/org/springframework/cloud/client/loadbalancer/RetryLoadBalancerInterceptorTest.java
index 3601834e..025d8654 100644
--- a/spring-cloud-commons/src/test/java/org/springframework/cloud/client/loadbalancer/RetryLoadBalancerInterceptorTest.java
+++ b/spring-cloud-commons/src/test/java/org/springframework/cloud/client/loadbalancer/RetryLoadBalancerInterceptorTest.java
@@ -34,14 +34,12 @@ import static org.mockito.Mockito.when;
 public class RetryLoadBalancerInterceptorTest {
 
     private LoadBalancerClient client;
-    private RetryTemplate retryTemplate;
     private LoadBalancerRetryProperties lbProperties;
     private LoadBalancerRequestFactory lbRequestFactory;
 
     @Before
     public void setUp() throws Exception {
         client = mock(LoadBalancerClient.class);
-        retryTemplate = spy(new RetryTemplate());
         lbProperties = new LoadBalancerRetryProperties();
         lbRequestFactory = mock(LoadBalancerRequestFactory.class);
 
@@ -50,7 +48,6 @@ public class RetryLoadBalancerInterceptorTest {
     @After
     public void tearDown() throws Exception {
         client = null;
-        retryTemplate = null;
         lbProperties = null;
     }
 
@@ -64,14 +61,13 @@ public class RetryLoadBalancerInterceptorTest {
         when(client.choose(eq("foo"))).thenReturn(serviceInstance);
         when(client.execute(eq("foo"), eq(serviceInstance), any(LoadBalancerRequest.class))).thenThrow(new IOException());
         lbProperties.setEnabled(false);
-        RetryLoadBalancerInterceptor interceptor = new RetryLoadBalancerInterceptor(client, retryTemplate, lbProperties, lbRetryPolicyFactory, lbRequestFactory);
+        RetryLoadBalancerInterceptor interceptor = new RetryLoadBalancerInterceptor(client, lbProperties, lbRetryPolicyFactory, lbRequestFactory);
         byte[] body = new byte[]{};
         ClientHttpRequestExecution execution = mock(ClientHttpRequestExecution.class);
 
         when(this.lbRequestFactory.createRequest(any(), any(), any())).thenReturn(mock(LoadBalancerRequest.class));
 
         interceptor.intercept(request, body, execution);
-        verify(retryTemplate, times(1)).setRetryPolicy(any(NeverRetryPolicy.class));
         verify(lbRequestFactory).createRequest(request, body, execution);
     }
 
@@ -81,7 +77,7 @@ public class RetryLoadBalancerInterceptorTest {
         when(request.getURI()).thenReturn(new URI("http://foo_underscore"));
         LoadBalancedRetryPolicyFactory lbRetryPolicyFactory = mock(LoadBalancedRetryPolicyFactory.class);
         lbProperties.setEnabled(true);
-        RetryLoadBalancerInterceptor interceptor = new RetryLoadBalancerInterceptor(client, retryTemplate, lbProperties, lbRetryPolicyFactory);
+        RetryLoadBalancerInterceptor interceptor = new RetryLoadBalancerInterceptor(client, lbProperties, lbRetryPolicyFactory, lbRequestFactory);
         byte[] body = new byte[]{};
         ClientHttpRequestExecution execution = mock(ClientHttpRequestExecution.class);
         ClientHttpResponse rsp = interceptor.intercept(request, body, execution);
@@ -96,11 +92,10 @@ public class RetryLoadBalancerInterceptorTest {
         ServiceInstance serviceInstance = mock(ServiceInstance.class);
         when(client.choose(eq("foo"))).thenReturn(serviceInstance);
         lbProperties.setEnabled(true);
-        RetryLoadBalancerInterceptor interceptor = new RetryLoadBalancerInterceptor(client, retryTemplate, lbProperties, lbRetryPolicyFactory, lbRequestFactory);
+        RetryLoadBalancerInterceptor interceptor = new RetryLoadBalancerInterceptor(client, lbProperties, lbRetryPolicyFactory, lbRequestFactory);
         byte[] body = new byte[]{};
         ClientHttpRequestExecution execution = mock(ClientHttpRequestExecution.class);
         interceptor.intercept(request, body, execution);
-        verify(retryTemplate, times(1)).setRetryPolicy(any(NeverRetryPolicy.class));
         verify(lbRequestFactory).createRequest(request, body, execution);
     }
 
@@ -116,16 +111,13 @@ public class RetryLoadBalancerInterceptorTest {
         ServiceInstance serviceInstance = mock(ServiceInstance.class);
         when(client.choose(eq("foo"))).thenReturn(serviceInstance);
         when(client.execute(eq("foo"), eq(serviceInstance), any(LoadBalancerRequest.class))).thenReturn(clientHttpResponse);
-
 		when(this.lbRequestFactory.createRequest(any(), any(), any())).thenReturn(mock(LoadBalancerRequest.class));
-
-		lbProperties.setEnabled(true);
-        RetryLoadBalancerInterceptor interceptor = new RetryLoadBalancerInterceptor(client, retryTemplate, lbProperties, lbRetryPolicyFactory, lbRequestFactory);
+        lbProperties.setEnabled(true);
+        RetryLoadBalancerInterceptor interceptor = new RetryLoadBalancerInterceptor(client, lbProperties, lbRetryPolicyFactory, lbRequestFactory);
         byte[] body = new byte[]{};
         ClientHttpRequestExecution execution = mock(ClientHttpRequestExecution.class);
         ClientHttpResponse rsp = interceptor.intercept(request, body, execution);
         assertThat(rsp, is(clientHttpResponse));
-        verify(retryTemplate, times(1)).setRetryPolicy(eq(interceptorRetryPolicy));
         verify(lbRequestFactory).createRequest(request, body, execution);
     }
 
@@ -146,13 +138,12 @@ public class RetryLoadBalancerInterceptorTest {
         when(client.execute(eq("foo"), eq(serviceInstance), nullable(LoadBalancerRequest.class))).
                 thenReturn(clientHttpResponseNotFound).thenReturn(clientHttpResponseOk);
         lbProperties.setEnabled(true);
-        RetryLoadBalancerInterceptor interceptor = new RetryLoadBalancerInterceptor(client, retryTemplate, lbProperties, lbRetryPolicyFactory, lbRequestFactory);
+        RetryLoadBalancerInterceptor interceptor = new RetryLoadBalancerInterceptor(client, lbProperties, lbRetryPolicyFactory, lbRequestFactory);
         byte[] body = new byte[]{};
         ClientHttpRequestExecution execution = mock(ClientHttpRequestExecution.class);
         ClientHttpResponse rsp = interceptor.intercept(request, body, execution);
         verify(client, times(2)).execute(eq("foo"), eq(serviceInstance), nullable(LoadBalancerRequest.class));
         assertThat(rsp, is(clientHttpResponseOk));
-        verify(retryTemplate, times(1)).setRetryPolicy(eq(interceptorRetryPolicy));
         verify(lbRequestFactory, times(2)).createRequest(request, body, execution);
     }
 
@@ -168,17 +159,14 @@ public class RetryLoadBalancerInterceptorTest {
         ServiceInstance serviceInstance = mock(ServiceInstance.class);
         when(client.choose(eq("foo"))).thenReturn(serviceInstance);
         when(client.execute(eq("foo"), eq(serviceInstance), any(LoadBalancerRequest.class))).thenThrow(new IOException()).thenReturn(clientHttpResponse);
-
 		when(this.lbRequestFactory.createRequest(any(), any(), any())).thenReturn(mock(LoadBalancerRequest.class));
-
-		lbProperties.setEnabled(true);
-        RetryLoadBalancerInterceptor interceptor = new RetryLoadBalancerInterceptor(client, retryTemplate, lbProperties, lbRetryPolicyFactory, lbRequestFactory);
+        lbProperties.setEnabled(true);
+        RetryLoadBalancerInterceptor interceptor = new RetryLoadBalancerInterceptor(client, lbProperties, lbRetryPolicyFactory, lbRequestFactory);
         byte[] body = new byte[]{};
         ClientHttpRequestExecution execution = mock(ClientHttpRequestExecution.class);
         ClientHttpResponse rsp = interceptor.intercept(request, body, execution);
         verify(client, times(2)).execute(eq("foo"), eq(serviceInstance), any(LoadBalancerRequest.class));
         assertThat(rsp, is(clientHttpResponse));
-        verify(retryTemplate, times(1)).setRetryPolicy(any(InterceptorRetryPolicy.class));
         verify(lbRequestFactory, times(2)).createRequest(request, body, execution);
     }
 
@@ -194,11 +182,9 @@ public class RetryLoadBalancerInterceptorTest {
         ServiceInstance serviceInstance = mock(ServiceInstance.class);
         when(client.choose(eq("foo"))).thenReturn(serviceInstance);
         when(client.execute(eq("foo"), eq(serviceInstance), any(LoadBalancerRequest.class))).thenThrow(new IOException()).thenReturn(clientHttpResponse);
-
 		when(this.lbRequestFactory.createRequest(any(), any(), any())).thenReturn(mock(LoadBalancerRequest.class));
-
-		lbProperties.setEnabled(true);
-        RetryLoadBalancerInterceptor interceptor = new RetryLoadBalancerInterceptor(client, retryTemplate, lbProperties, lbRetryPolicyFactory, lbRequestFactory);
+        lbProperties.setEnabled(true);
+        RetryLoadBalancerInterceptor interceptor = new RetryLoadBalancerInterceptor(client, lbProperties, lbRetryPolicyFactory, lbRequestFactory);
         byte[] body = new byte[]{};
         ClientHttpRequestExecution execution = mock(ClientHttpRequestExecution.class);
         ClientHttpResponse rsp = interceptor.intercept(request, body, execution);