diff --git a/package-lock.json b/package-lock.json
index 9987ca56..d500c31e 100644
--- a/package-lock.json
+++ b/package-lock.json
@@ -145,9 +145,9 @@
       }
     },
     "node_modules/@azure/core-rest-pipeline": {
-      "version": "1.12.1",
-      "resolved": "https://registry.npmjs.org/@azure/core-rest-pipeline/-/core-rest-pipeline-1.12.1.tgz",
-      "integrity": "sha512-SsyWQ+T5MFQRX+M8H/66AlaI6HyCbQStGfFngx2fuiW+vKI2DkhtOvbYodPyf9fOe/ARLWWc3ohX54lQ5Kmaog==",
+      "version": "1.12.2",
+      "resolved": "https://registry.npmjs.org/@azure/core-rest-pipeline/-/core-rest-pipeline-1.12.2.tgz",
+      "integrity": "sha512-wLLJQdL4v1yoqYtEtjKNjf8pJ/G/BqVomAWxcKOR1KbZJyCEnCv04yks7Y1NhJ3JzxbDs307W67uX0JzklFdCg==",
       "dependencies": {
         "@azure/abort-controller": "^1.0.0",
         "@azure/core-auth": "^1.4.0",
@@ -160,7 +160,7 @@
         "tslib": "^2.2.0"
       },
       "engines": {
-        "node": ">=14.0.0"
+        "node": ">=16.0.0"
       }
     },
     "node_modules/@azure/core-tracing": {
@@ -3655,9 +3655,9 @@
       }
     },
     "@azure/core-rest-pipeline": {
-      "version": "1.12.1",
-      "resolved": "https://registry.npmjs.org/@azure/core-rest-pipeline/-/core-rest-pipeline-1.12.1.tgz",
-      "integrity": "sha512-SsyWQ+T5MFQRX+M8H/66AlaI6HyCbQStGfFngx2fuiW+vKI2DkhtOvbYodPyf9fOe/ARLWWc3ohX54lQ5Kmaog==",
+      "version": "1.12.2",
+      "resolved": "https://registry.npmjs.org/@azure/core-rest-pipeline/-/core-rest-pipeline-1.12.2.tgz",
+      "integrity": "sha512-wLLJQdL4v1yoqYtEtjKNjf8pJ/G/BqVomAWxcKOR1KbZJyCEnCv04yks7Y1NhJ3JzxbDs307W67uX0JzklFdCg==",
       "requires": {
         "@azure/abort-controller": "^1.0.0",
         "@azure/core-auth": "^1.4.0",
diff --git a/test/clientOptions.test.ts b/test/clientOptions.test.ts
index c5496fb9..2bf146f1 100644
--- a/test/clientOptions.test.ts
+++ b/test/clientOptions.test.ts
@@ -28,12 +28,12 @@ class HttpRequestCountPolicy {
 
 describe("custom client options", function () {
     const fakeEndpoint = "https://azure.azconfig.io";
-    before(() => {
+    beforeEach(() => {
         // Thus here mock it to reply 500, in which case the retry mechanism works.
         nock(fakeEndpoint).persist().get(() => true).reply(500);
     });
 
-    after(() => {
+    afterEach(() => {
         nock.restore();
     })
 
@@ -96,9 +96,26 @@ describe("custom client options", function () {
         expect(countPolicy.count).eq(2);
     });
 
-    // Note:
-    // core-rest-pipeline skips the retry throwing `RestError: getaddrinfo ENOTFOUND azure.azconfig.io`
-    // Probably would be fixed in upstream libs.
-    // See https://github.com/Azure/azure-sdk-for-js/issues/27037
-    it("should retry on DNS failure");
+    it("should retry on DNS failure", async () => {
+        nock.restore(); // stop mocking with 500 error but sending real requests which will fail with ENOTFOUND
+        const countPolicy = new HttpRequestCountPolicy();
+        const loadPromise = () => {
+            return load(createMockedConnectionString(fakeEndpoint), {
+                clientOptions: {
+                    additionalPolicies: [{
+                        policy: countPolicy,
+                        position: "perRetry"
+                    }]
+                }
+            })
+        };
+        let error;
+        try {
+            await loadPromise();
+        } catch (e) {
+            error = e;
+        }
+        expect(error).not.undefined;
+        expect(countPolicy.count).eq(3);
+    });
 })