diff --git a/sdk/monitor/Azure.Monitor.OpenTelemetry.Exporter/src/Internals/AzureMonitorTransmitter.cs b/sdk/monitor/Azure.Monitor.OpenTelemetry.Exporter/src/Internals/AzureMonitorTransmitter.cs
index b49852391aa3..0421a3ea5cf3 100644
--- a/sdk/monitor/Azure.Monitor.OpenTelemetry.Exporter/src/Internals/AzureMonitorTransmitter.cs
+++ b/sdk/monitor/Azure.Monitor.OpenTelemetry.Exporter/src/Internals/AzureMonitorTransmitter.cs
@@ -26,6 +26,8 @@ internal class AzureMonitorTransmitter : ITransmitter
         internal PersistentBlobProvider? _fileBlobProvider;
         private readonly AzureMonitorStatsbeat? _statsbeat;
         private readonly ConnectionVars _connectionVars;
+        internal readonly TransmissionStateManager _transmissionStateManager;
+        internal readonly TransmitFromStorageHandler? _transmitFromStorageHandler;
         private bool _disposed;
 
         public AzureMonitorTransmitter(AzureMonitorExporterOptions options)
@@ -41,8 +43,15 @@ public AzureMonitorTransmitter(AzureMonitorExporterOptions options)
 
             _applicationInsightsRestClient = InitializeRestClient(options, _connectionVars);
 
+            _transmissionStateManager = new TransmissionStateManager();
+
             _fileBlobProvider = InitializeOfflineStorage(options);
 
+            if (_fileBlobProvider != null)
+            {
+                _transmitFromStorageHandler = new TransmitFromStorageHandler(_applicationInsightsRestClient, _fileBlobProvider, _transmissionStateManager);
+            }
+
             _statsbeat = InitializeStatsbeat(options, _connectionVars);
         }
 
@@ -165,10 +174,13 @@ await _applicationInsightsRestClient.InternalTrackAsync(telemetryItems, cancella
 
                 if (result == ExportResult.Failure && _fileBlobProvider != null)
                 {
+                    _transmissionStateManager.EnableBackOff(httpMessage.Response);
                     result = HttpPipelineHelper.HandleFailures(httpMessage, _fileBlobProvider);
                 }
                 else
                 {
+                    _transmissionStateManager.ResetConsecutiveErrors();
+                    _transmissionStateManager.CloseTransmission();
                     AzureMonitorExporterEventSource.Log.WriteInformational("TransmissionSuccess", "Successfully transmitted a batch of telemetry Items.");
                 }
             }
diff --git a/sdk/monitor/Azure.Monitor.OpenTelemetry.Exporter/src/Internals/TransmissionStateManager.cs b/sdk/monitor/Azure.Monitor.OpenTelemetry.Exporter/src/Internals/TransmissionStateManager.cs
index 8d6483cabd0b..e36cca073ab0 100644
--- a/sdk/monitor/Azure.Monitor.OpenTelemetry.Exporter/src/Internals/TransmissionStateManager.cs
+++ b/sdk/monitor/Azure.Monitor.OpenTelemetry.Exporter/src/Internals/TransmissionStateManager.cs
@@ -86,6 +86,7 @@ internal void CloseTransmission()
         /// </summary>
         internal void ResetConsecutiveErrors()
         {
+            _nextMinTimeToUpdateConsecutiveErrors = DateTimeOffset.MinValue;
             Interlocked.Exchange(ref _consecutiveErrors, 0);
         }
 
diff --git a/sdk/monitor/Azure.Monitor.OpenTelemetry.Exporter/src/Internals/TransmitFromStorageHandler.cs b/sdk/monitor/Azure.Monitor.OpenTelemetry.Exporter/src/Internals/TransmitFromStorageHandler.cs
index 51909d7e8853..91e11d286092 100644
--- a/sdk/monitor/Azure.Monitor.OpenTelemetry.Exporter/src/Internals/TransmitFromStorageHandler.cs
+++ b/sdk/monitor/Azure.Monitor.OpenTelemetry.Exporter/src/Internals/TransmitFromStorageHandler.cs
@@ -12,7 +12,7 @@ namespace Azure.Monitor.OpenTelemetry.Exporter.Internals
     internal class TransmitFromStorageHandler : IDisposable
     {
         private readonly ApplicationInsightsRestClient _applicationInsightsRestClient;
-        private readonly PersistentBlobProvider _blobProvider;
+        internal PersistentBlobProvider _blobProvider;
         private readonly TransmissionStateManager _transmissionStateManager;
         private readonly System.Timers.Timer _transmitFromStorageTimer;
         private bool _disposed;
diff --git a/sdk/monitor/Azure.Monitor.OpenTelemetry.Exporter/tests/Azure.Monitor.OpenTelemetry.Exporter.Tests/OfflineStorageTests.cs b/sdk/monitor/Azure.Monitor.OpenTelemetry.Exporter/tests/Azure.Monitor.OpenTelemetry.Exporter.Tests/OfflineStorageTests.cs
index ae50ab732193..d5dbdb6ee12a 100644
--- a/sdk/monitor/Azure.Monitor.OpenTelemetry.Exporter/tests/Azure.Monitor.OpenTelemetry.Exporter.Tests/OfflineStorageTests.cs
+++ b/sdk/monitor/Azure.Monitor.OpenTelemetry.Exporter/tests/Azure.Monitor.OpenTelemetry.Exporter.Tests/OfflineStorageTests.cs
@@ -155,8 +155,13 @@ public void TelemetryIsTransmittedSuccessfullyFromStorage()
             Assert.NotNull(transmitter._fileBlobProvider);
             Assert.Single(transmitter._fileBlobProvider.GetBlobs());
 
-            var transmitFromStorageHandler = new TransmitFromStorageHandler(transmitter._applicationInsightsRestClient, transmitter._fileBlobProvider, new TransmissionStateManager());
-            transmitFromStorageHandler.TransmitFromStorage(null, null);
+            Assert.Equal(TransmissionState.Open, transmitter._transmissionStateManager.State);
+
+            // Reset transmission state
+            transmitter._transmissionStateManager.ResetConsecutiveErrors();
+            transmitter._transmissionStateManager.CloseTransmission();
+
+            transmitter._transmitFromStorageHandler?.TransmitFromStorage(null, null);
 
             // Assert
             // Blob will be deleted on successful transmission
@@ -184,18 +189,9 @@ public void TelemetryIsNotTransmittedWhenTransmissionStateIsOpen()
             Assert.NotNull(transmitter._fileBlobProvider);
             Assert.Single(transmitter._fileBlobProvider.GetBlobs());
 
-            var transmissionStateManager = new TransmissionStateManager(
-                 random: new(),
-                 minIntervalToUpdateConsecutiveErrors: TimeSpan.FromSeconds(20),
-                 nextMinTimeToUpdateConsecutiveErrors: DateTimeOffset.MinValue,
-                 backOffIntervalTimer: new System.Timers.Timer(),
-                 TransmissionState.Open
-                 );
-
-            Assert.Equal(TransmissionState.Open, transmissionStateManager.State);
+            Assert.Equal(TransmissionState.Open, transmitter._transmissionStateManager.State);
 
-            var transmitFromStorageHandler = new TransmitFromStorageHandler(transmitter._applicationInsightsRestClient, transmitter._fileBlobProvider, transmissionStateManager);
-            transmitFromStorageHandler.TransmitFromStorage(null, null);
+            transmitter._transmitFromStorageHandler?.TransmitFromStorage(null, null);
 
             // Assert
             // Blob will not be deleted as the transmission state is open.
@@ -221,16 +217,17 @@ public void TransmissionStateIsSetToOpenOnFailedRequest()
             Assert.NotNull(transmitter._fileBlobProvider);
             Assert.Single(transmitter._fileBlobProvider.GetBlobs());
 
-            var transmissionStateManager = new TransmissionStateManager();
-            var transmitFromStorageHandler = new TransmitFromStorageHandler(transmitter._applicationInsightsRestClient, transmitter._fileBlobProvider, transmissionStateManager);
+            Assert.Equal(TransmissionState.Open, transmitter._transmissionStateManager.State);
 
-            Assert.Equal(TransmissionState.Closed, transmissionStateManager.State);
+            // Reset transmission state
+            transmitter._transmissionStateManager.ResetConsecutiveErrors();
+            transmitter._transmissionStateManager.CloseTransmission();
 
-            transmitFromStorageHandler.TransmitFromStorage(null, null);
+            transmitter._transmitFromStorageHandler?.TransmitFromStorage(null, null);
 
             // Assert
             // Blob will not be deleted as the transmission state is open.
-            Assert.Equal(TransmissionState.Open, transmissionStateManager.State);
+            Assert.Equal(TransmissionState.Open, transmitter._transmissionStateManager.State);
             Assert.Single(transmitter._fileBlobProvider.GetBlobs());
 
             transmitter.Dispose();
@@ -250,6 +247,10 @@ private static AzureMonitorTransmitter GetTransmitter(params MockResponse[] mock
 
             // Overwrite storage with mock
             transmitter._fileBlobProvider = new MockFileProvider();
+            if (transmitter._transmitFromStorageHandler != null)
+            {
+                transmitter._transmitFromStorageHandler._blobProvider = transmitter._fileBlobProvider;
+            }
 
             return transmitter;
         }