diff --git a/CHANGELOG.md b/CHANGELOG.md
index 920b85fb2..954b4ac33 100644
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -37,6 +37,7 @@
 
 ### Bug Fixes
 
+- Ignore internal Sidekiq::JobRetry::Handled exception [#2337](https://github.com/getsentry/sentry-ruby/pull/2337)
 - Fix Vernier profiler not stopping when already stopped [#2429](https://github.com/getsentry/sentry-ruby/pull/2429)
 - Fix `send_default_pii` handling in rails controller spans [#2443](https://github.com/getsentry/sentry-ruby/pull/2443)
   - Fixes [#2438](https://github.com/getsentry/sentry-ruby/issues/2438)
diff --git a/sentry-sidekiq/lib/sentry/sidekiq/configuration.rb b/sentry-sidekiq/lib/sentry/sidekiq/configuration.rb
index b6ef3856c..eea6f4c35 100644
--- a/sentry-sidekiq/lib/sentry/sidekiq/configuration.rb
+++ b/sentry-sidekiq/lib/sentry/sidekiq/configuration.rb
@@ -11,7 +11,10 @@ class Configuration
   end
 
   module Sidekiq
-    IGNORE_DEFAULT = ["Sidekiq::JobRetry::Skip"]
+    IGNORE_DEFAULT = [
+      "Sidekiq::JobRetry::Skip",
+      "Sidekiq::JobRetry::Handled"
+    ]
 
     class Configuration
       # Set this option to true if you want Sentry to only capture the last job
diff --git a/sentry-sidekiq/spec/sentry/sidekiq/configuration_spec.rb b/sentry-sidekiq/spec/sentry/sidekiq/configuration_spec.rb
index 7e9066ffe..2bcab6c58 100644
--- a/sentry-sidekiq/spec/sentry/sidekiq/configuration_spec.rb
+++ b/sentry-sidekiq/spec/sentry/sidekiq/configuration_spec.rb
@@ -15,6 +15,12 @@
     expect(config.excluded_exceptions).to include("Sidekiq::JobRetry::Skip")
   end
 
+  it "adds Sidekiq::JobRetry::Handled to the ignore list" do
+    config = Sentry::Configuration.new
+
+    expect(config.excluded_exceptions).to include("Sidekiq::JobRetry::Handled")
+  end
+
   describe "#report_after_job_retries" do
     it "has correct default value" do
       expect(subject.report_after_job_retries).to eq(false)