diff --git a/agency_swarm/threads/thread.py b/agency_swarm/threads/thread.py
index ccab5567..5c3d0393 100644
--- a/agency_swarm/threads/thread.py
+++ b/agency_swarm/threads/thread.py
@@ -5,7 +5,7 @@
 import time
 from typing import List, Optional, Type, Union
 
-from openai import BadRequestError
+from openai import APIError, BadRequestError
 from openai.types.beta import AssistantToolChoice
 from openai.types.beta.threads.message import Attachment
 from openai.types.beta.threads.run import TruncationStrategy
@@ -40,6 +40,8 @@ def __init__(self, agent: Union[Agent, User], recipient_agent: Agent):
         self.run = None
         self.stream = None
 
+        self.num_run_retries = 0
+
     def init_thread(self):
         if self.id:
             self.thread = self.client.beta.threads.retrieve(self.id)
@@ -235,22 +237,22 @@ def handle_output(tool_call, output):
             # error
             elif self.run.status == "failed":
                 full_message += self._get_last_message_text()
-                # retry run 2 times
-                if error_attempts < 1 and ("something went wrong" in self.run.last_error.message.lower() or "The server had an error processing your request" in self.run.last_error.message.lower()):
-                    time.sleep(1)
-                    self._create_run(recipient_agent, additional_instructions, event_handler, tool_choice, response_format=response_format)
-                    error_attempts += 1
-                elif 1 <= error_attempts < 5 and "something went wrong" in self.run.last_error.message.lower():
-                    self.create_message(
-                        message="Continue.",
-                        role="user"
-                    )
-                    self._create_run(recipient_agent, additional_instructions, event_handler, tool_choice, response_format=response_format)
+                common_errors = ["something went wrong", "the server had an error processing your request", "rate limit reached"]
+                error_message = self.run.last_error.message.lower()
+
+                if error_attempts < 3 and any(error in error_message for error in common_errors):
+                    if error_attempts < 2:
+                        time.sleep(1 + error_attempts)
+                    else:
+                        self.create_message(message="Continue.", role="user")
+                    
+                    self._create_run(recipient_agent, additional_instructions, event_handler, 
+                                     tool_choice, response_format=response_format)
                     error_attempts += 1
                 else:
                     raise Exception("OpenAI Run Failed. Error: ", self.run.last_error.message)
             elif self.run.status == "incomplete":
-                raise Exception("OpenAI Run Incomplete. Error: ", self.run.incomplete_details)
+                raise Exception("OpenAI Run Incomplete. Details: ", self.run.incomplete_details)
             # return assistant message
             else:
                 message_obj = self._get_last_assistant_message()
@@ -302,10 +304,26 @@ def handle_output(tool_call, output):
                 return last_message
 
     def _create_run(self, recipient_agent, additional_instructions, event_handler, tool_choice, temperature=None, response_format: Optional[dict] = None):
-        if event_handler:
-            with self.client.beta.threads.runs.stream(
+        try:
+            if event_handler:
+                with self.client.beta.threads.runs.stream(
+                        thread_id=self.thread.id,
+                        event_handler=event_handler(),
+                        assistant_id=recipient_agent.id,
+                        additional_instructions=additional_instructions,
+                        tool_choice=tool_choice,
+                        max_prompt_tokens=recipient_agent.max_prompt_tokens,
+                        max_completion_tokens=recipient_agent.max_completion_tokens,
+                        truncation_strategy=recipient_agent.truncation_strategy,
+                        temperature=temperature,
+                        extra_body={"parallel_tool_calls": recipient_agent.parallel_tool_calls},
+                        response_format=response_format
+                ) as stream:
+                    stream.until_done()
+                    self.run = stream.get_final_run()
+            else:
+                self.run = self.client.beta.threads.runs.create(
                     thread_id=self.thread.id,
-                    event_handler=event_handler(),
                     assistant_id=recipient_agent.id,
                     additional_instructions=additional_instructions,
                     tool_choice=tool_choice,
@@ -313,29 +331,21 @@ def _create_run(self, recipient_agent, additional_instructions, event_handler, t
                     max_completion_tokens=recipient_agent.max_completion_tokens,
                     truncation_strategy=recipient_agent.truncation_strategy,
                     temperature=temperature,
-                    extra_body={"parallel_tool_calls": recipient_agent.parallel_tool_calls},
+                    parallel_tool_calls=recipient_agent.parallel_tool_calls,
                     response_format=response_format
-            ) as stream:
-                stream.until_done()
-                self.run = stream.get_final_run()
-        else:
-            self.run = self.client.beta.threads.runs.create(
-                thread_id=self.thread.id,
-                assistant_id=recipient_agent.id,
-                additional_instructions=additional_instructions,
-                tool_choice=tool_choice,
-                max_prompt_tokens=recipient_agent.max_prompt_tokens,
-                max_completion_tokens=recipient_agent.max_completion_tokens,
-                truncation_strategy=recipient_agent.truncation_strategy,
-                temperature=temperature,
-                parallel_tool_calls=recipient_agent.parallel_tool_calls,
-                response_format=response_format
-            )
-            self.run = self.client.beta.threads.runs.poll(
-                thread_id=self.thread.id,
-                run_id=self.run.id,
-                # poll_interval_ms=500,
-            )
+                )
+                self.run = self.client.beta.threads.runs.poll(
+                    thread_id=self.thread.id,
+                    run_id=self.run.id,
+                    # poll_interval_ms=500,
+                )
+        except APIError as e:
+            if "The server had an error processing your request" in e.message and self.num_run_retries < 3:
+                time.sleep(1 + self.num_run_retries)
+                self._create_run(recipient_agent, additional_instructions, event_handler, tool_choice, response_format=response_format)
+                self.num_run_retries += 1
+            else:
+                raise e
 
     def _run_until_done(self):
         while self.run.status in ['queued', 'in_progress', "cancelling"]: