diff --git a/flytekit/extend/backend/utils.py b/flytekit/extend/backend/utils.py
index dfeb106a42..9bcc654927 100644
--- a/flytekit/extend/backend/utils.py
+++ b/flytekit/extend/backend/utils.py
@@ -20,8 +20,10 @@ def convert_to_flyte_phase(state: str) -> TaskExecution.Phase:
     Convert the state from the connector to the phase in flyte.
     """
     state = state.lower()
-    if state in ["failed", "timeout", "timedout", "canceled", "cancelled", "skipped", "internal_error"]:
+    if state in ["failed", "timeout", "timedout", "canceled", "cancelled", "skipped"]:
         return TaskExecution.FAILED
+    if state in ["internal_error"]:
+        return TaskExecution.RETRYABLE_FAILED
     elif state in ["done", "succeeded", "success", "completed"]:
         return TaskExecution.SUCCEEDED
     elif state in ["running", "terminating"]:
diff --git a/tests/flytekit/unit/extend/test_connector.py b/tests/flytekit/unit/extend/test_connector.py
index 0f29083512..217210171b 100644
--- a/tests/flytekit/unit/extend/test_connector.py
+++ b/tests/flytekit/unit/extend/test_connector.py
@@ -383,7 +383,7 @@ def test_convert_to_flyte_phase():
     assert convert_to_flyte_phase("TIMEDOUT") == TaskExecution.FAILED
     assert convert_to_flyte_phase("CANCELED") == TaskExecution.FAILED
     assert convert_to_flyte_phase("SKIPPED") == TaskExecution.FAILED
-    assert convert_to_flyte_phase("INTERNAL_ERROR") == TaskExecution.FAILED
+    assert convert_to_flyte_phase("INTERNAL_ERROR") == TaskExecution.RETRYABLE_FAILED
 
     assert convert_to_flyte_phase("DONE") == TaskExecution.SUCCEEDED
     assert convert_to_flyte_phase("SUCCEEDED") == TaskExecution.SUCCEEDED
diff --git a/tests/flytekit/unit/utils/test_rate_limiter.py b/tests/flytekit/unit/utils/test_rate_limiter.py
index 23bece6415..862f0d79fb 100644
--- a/tests/flytekit/unit/utils/test_rate_limiter.py
+++ b/tests/flytekit/unit/utils/test_rate_limiter.py
@@ -19,8 +19,7 @@ async def helper_for_async(rpm: int, total: int):
 
 
 def runner_for_async(rpm: int, total: int):
-    loop = asyncio.get_event_loop()
-    return loop.run_until_complete(helper_for_async(rpm, total))
+    return asyncio.run(helper_for_async(rpm, total))
 
 
 @pytest.mark.asyncio
@@ -43,8 +42,7 @@ async def helper_for_sync(rpm: int, total: int):
 
 
 def runner_for_sync(rpm: int, total: int):
-    loop = asyncio.get_event_loop()
-    return loop.run_until_complete(helper_for_sync(rpm, total))
+    return asyncio.run(helper_for_sync(rpm, total))
 
 
 @pytest.mark.asyncio