diff --git a/e2e-cli/e2e-config.json b/e2e-cli/e2e-config.json
index ac88545d2..a7417576d 100644
--- a/e2e-cli/e2e-config.json
+++ b/e2e-cli/e2e-config.json
@@ -1,9 +1,10 @@
 {
   "sdk": "react-native",
-  "test_suites": "basic,settings,retry",
+  "test_suites": "basic,settings,retry,retry-settings",
   "auto_settings": true,
   "patch": null,
   "env": {
-    "BROWSER_BATCHING": "true"
+    "BROWSER_BATCHING": "true",
+    "HTTP_CONFIG_SETTINGS": "true"
   }
 }
diff --git a/packages/core/src/errors.ts b/packages/core/src/errors.ts
index c55fab691..f661778ea 100644
--- a/packages/core/src/errors.ts
+++ b/packages/core/src/errors.ts
@@ -147,11 +147,19 @@ export const classifyError = (
     default5xxBehavior?: 'drop' | 'retry';
     statusCodeOverrides?: Record<string, 'drop' | 'retry'>;
     rateLimitEnabled?: boolean;
+    backoffEnabled?: boolean;
   }
 ): ErrorClassification => {
   const override = config?.statusCodeOverrides?.[statusCode.toString()];
   if (override !== undefined) {
     if (override === 'retry') {
+      // If the relevant config is disabled, treat retry overrides as permanent
+      if (statusCode === 429 && config?.rateLimitEnabled === false) {
+        return new ErrorClassification('permanent');
+      }
+      if (statusCode !== 429 && config?.backoffEnabled === false) {
+        return new ErrorClassification('permanent');
+      }
       return statusCode === 429
         ? new ErrorClassification('rate_limit')
         : new ErrorClassification('transient');
@@ -159,12 +167,17 @@ export const classifyError = (
     return new ErrorClassification('permanent');
   }
 
-  if (statusCode === 429 && config?.rateLimitEnabled !== false) {
-    return new ErrorClassification('rate_limit');
+  if (statusCode === 429) {
+    return config?.rateLimitEnabled !== false
+      ? new ErrorClassification('rate_limit')
+      : new ErrorClassification('permanent');
   }
 
   if (statusCode >= 400 && statusCode < 500) {
     const behavior = config?.default4xxBehavior ?? 'drop';
+    if (behavior === 'retry' && config?.backoffEnabled === false) {
+      return new ErrorClassification('permanent');
+    }
     return new ErrorClassification(
       behavior === 'retry' ? 'transient' : 'permanent'
     );
@@ -172,6 +185,9 @@ export const classifyError = (
 
   if (statusCode >= 500 && statusCode < 600) {
     const behavior = config?.default5xxBehavior ?? 'retry';
+    if (behavior === 'retry' && config?.backoffEnabled === false) {
+      return new ErrorClassification('permanent');
+    }
     return new ErrorClassification(
       behavior === 'retry' ? 'transient' : 'permanent'
     );
diff --git a/packages/core/src/plugins/SegmentDestination.ts b/packages/core/src/plugins/SegmentDestination.ts
index b802c0d04..b291c8b9d 100644
--- a/packages/core/src/plugins/SegmentDestination.ts
+++ b/packages/core/src/plugins/SegmentDestination.ts
@@ -25,6 +25,7 @@ import {
 } from '../errors';
 import { RetryManager } from '../backoff/RetryManager';
 import type { RetryResult } from '../backoff';
+import { extractHttpConfig } from '../config-validation';
 
 const MAX_EVENTS_PER_BATCH = 100;
 const MAX_PAYLOAD_SIZE_IN_KB = 500;
@@ -86,6 +87,7 @@ export class SegmentDestination extends DestinationPlugin {
       default5xxBehavior: this.getBackoffConfig()?.default5xxBehavior,
       statusCodeOverrides: this.getBackoffConfig()?.statusCodeOverrides,
       rateLimitEnabled: this.getRateLimitConfig()?.enabled,
+      backoffEnabled: this.getBackoffConfig()?.enabled,
     });
 
     switch (classification.errorType) {
@@ -419,7 +421,22 @@ export class SegmentDestination extends DestinationPlugin {
       this.apiHost = `https://${segmentSettings.apiHost}/b`;
     }
 
-    const httpConfig = this.analytics?.getHttpConfig();
+    // Read httpConfig: prefer integration-level settings from CDN, fall back to
+    // top-level CDN config merged with client config (via analytics.getHttpConfig()).
+    const rawIntegration = settings.integrations[this.key] as
+      | Record<string, unknown>
+      | undefined;
+    let httpConfig: HttpConfig | undefined;
+    if (rawIntegration?.httpConfig !== undefined) {
+      httpConfig = extractHttpConfig(
+        rawIntegration.httpConfig as HttpConfig,
+        this.analytics?.logger
+      );
+    }
+    if (!httpConfig) {
+      httpConfig = this.analytics?.getHttpConfig();
+    }
+
     if (httpConfig) {
       this.httpConfig = httpConfig;