diff --git a/hudi-utilities/src/main/java/org/apache/hudi/utilities/deltastreamer/HoodieDeltaStreamer.java b/hudi-utilities/src/main/java/org/apache/hudi/utilities/deltastreamer/HoodieDeltaStreamer.java
index 408a71484d8d4..110b189474966 100644
--- a/hudi-utilities/src/main/java/org/apache/hudi/utilities/deltastreamer/HoodieDeltaStreamer.java
+++ b/hudi-utilities/src/main/java/org/apache/hudi/utilities/deltastreamer/HoodieDeltaStreamer.java
@@ -46,8 +46,10 @@
 import org.apache.hudi.common.util.collection.Pair;
 import org.apache.hudi.config.HoodieClusteringConfig;
 import org.apache.hudi.config.HoodieWriteConfig;
+import org.apache.hudi.exception.HoodieClusteringUpdateException;
 import org.apache.hudi.exception.HoodieException;
 import org.apache.hudi.exception.HoodieIOException;
+import org.apache.hudi.exception.HoodieUpsertException;
 import org.apache.hudi.hive.HiveSyncTool;
 import org.apache.hudi.utilities.HiveIncrementalPuller;
 import org.apache.hudi.utilities.IdentitySplitter;
@@ -649,6 +651,8 @@ protected Pair<CompletableFuture, ExecutorService> startService() {
                     + toSleepMs + " ms.");
                 Thread.sleep(toSleepMs);
               }
+            } catch (HoodieUpsertException ue) {
+              handleUpsertException(ue);
             } catch (Exception e) {
               LOG.error("Shutting down delta-sync due to exception", e);
               error = true;
@@ -662,6 +666,21 @@ protected Pair<CompletableFuture, ExecutorService> startService() {
       }, executor), executor);
     }
 
+    private void handleUpsertException(HoodieUpsertException ue) {
+      if (ue.getCause() instanceof HoodieClusteringUpdateException) {
+        LOG.warn("Write rejected due to conflicts with pending clustering operation. Going to retry after 1 min with the hope "
+            + "that clustering will complete by then.", ue);
+        try {
+          Thread.sleep(60000); // Intentionally not using cfg.minSyncIntervalSeconds, since it could be too high or it could be 0.
+          // Once the delta streamer gets past this clustering update exception, regular syncs will honor cfg.minSyncIntervalSeconds.
+        } catch (InterruptedException e) {
+          throw new HoodieException("Deltastreamer interrupted while waiting for next round ", e);
+        }
+      } else {
+        throw ue;
+      }
+    }
+
     /**
      * Shutdown async services like compaction/clustering as DeltaSync is shutdown.
      */
diff --git a/hudi-utilities/src/test/java/org/apache/hudi/utilities/functional/TestHoodieDeltaStreamer.java b/hudi-utilities/src/test/java/org/apache/hudi/utilities/functional/TestHoodieDeltaStreamer.java
index 227623eeb5a1e..f595ed04a7503 100644
--- a/hudi-utilities/src/test/java/org/apache/hudi/utilities/functional/TestHoodieDeltaStreamer.java
+++ b/hudi-utilities/src/test/java/org/apache/hudi/utilities/functional/TestHoodieDeltaStreamer.java
@@ -145,7 +145,7 @@ protected HoodieClusteringJob initialHoodieClusteringJob(String tableBasePath, S
 
   protected HoodieClusteringJob initialHoodieClusteringJob(String tableBasePath, String clusteringInstantTime, Boolean runSchedule, String scheduleAndExecute, Boolean retryLastFailedClusteringJob) {
     HoodieClusteringJob.Config scheduleClusteringConfig = buildHoodieClusteringUtilConfig(tableBasePath,
-            clusteringInstantTime, runSchedule, scheduleAndExecute, retryLastFailedClusteringJob);
+        clusteringInstantTime, runSchedule, scheduleAndExecute, retryLastFailedClusteringJob);
     return new HoodieClusteringJob(jsc, scheduleClusteringConfig);
   }
 
@@ -924,6 +924,31 @@ public void testAsyncClusteringService() throws Exception {
     });
   }
 
+  /**
+   * When deltastreamer writes clashes with pending clustering, deltastreamer should keep retrying and eventually succeed(once clustering completes)
+   * w/o failing mid way.
+   *
+   * @throws Exception
+   */
+  @Test
+  public void testAsyncClusteringServiceWithConflicts() throws Exception {
+    String tableBasePath = dfsBasePath + "/asyncClusteringWithConflicts";
+    // Keep it higher than batch-size to test continuous mode
+    int totalRecords = 3000;
+
+    // Initial bulk insert
+    HoodieDeltaStreamer.Config cfg = TestHelpers.makeConfig(tableBasePath, WriteOperationType.UPSERT);
+    cfg.continuousMode = true;
+    cfg.tableType = HoodieTableType.COPY_ON_WRITE.name();
+    cfg.configs.addAll(getAsyncServicesConfigs(totalRecords, "false", "", "", "true", "2"));
+    HoodieDeltaStreamer ds = new HoodieDeltaStreamer(cfg, jsc);
+    deltaStreamerTestRunner(ds, cfg, (r) -> {
+      TestHelpers.assertAtLeastNCommits(2, tableBasePath, dfs);
+      TestHelpers.assertAtLeastNReplaceCommits(2, tableBasePath, dfs);
+      return true;
+    });
+  }
+
   @ParameterizedTest
   @ValueSource(strings = {"true", "false"})
   public void testAsyncClusteringServiceWithCompaction(String preserveCommitMetadata) throws Exception {
@@ -1312,7 +1337,7 @@ private void testORCDFSSource(boolean useSchemaProvider, List<String> transforme
 
     // Properties used for testing delta-streamer with orc source
     orcProps.setProperty("include", "base.properties");
-    orcProps.setProperty("hoodie.embed.timeline.server","false");
+    orcProps.setProperty("hoodie.embed.timeline.server", "false");
     orcProps.setProperty("hoodie.datasource.write.recordkey.field", "_row_key");
     orcProps.setProperty("hoodie.datasource.write.partitionpath.field", "not_there");
     if (useSchemaProvider) {
@@ -1326,9 +1351,9 @@ private void testORCDFSSource(boolean useSchemaProvider, List<String> transforme
 
     String tableBasePath = dfsBasePath + "/test_orc_source_table" + testNum;
     HoodieDeltaStreamer deltaStreamer = new HoodieDeltaStreamer(
-            TestHelpers.makeConfig(tableBasePath, WriteOperationType.INSERT, ORCDFSSource.class.getName(),
-                    transformerClassNames, PROPS_FILENAME_TEST_ORC, false,
-                    useSchemaProvider, 100000, false, null, null, "timestamp", null), jsc);
+        TestHelpers.makeConfig(tableBasePath, WriteOperationType.INSERT, ORCDFSSource.class.getName(),
+            transformerClassNames, PROPS_FILENAME_TEST_ORC, false,
+            useSchemaProvider, 100000, false, null, null, "timestamp", null), jsc);
     deltaStreamer.sync();
     TestHelpers.assertRecordCount(ORC_NUM_RECORDS, tableBasePath + "/*/*.parquet", sqlContext);
     testNum++;
@@ -1797,8 +1822,8 @@ public Schema getTargetSchema() {
   private static Stream<Arguments> testORCDFSSource() {
     // arg1 boolean useSchemaProvider, arg2 List<String> transformerClassNames
     return Stream.of(
-            arguments(false, null),
-            arguments(true, Collections.singletonList(TripsWithDistanceTransformer.class.getName()))
+        arguments(false, null),
+        arguments(true, Collections.singletonList(TripsWithDistanceTransformer.class.getName()))
     );
   }