diff --git a/app/models/service_retire_task.rb b/app/models/service_retire_task.rb
index 88d323139ce..6704d376061 100644
--- a/app/models/service_retire_task.rb
+++ b/app/models/service_retire_task.rb
@@ -37,6 +37,7 @@ def after_request_task_create
 
   def create_retire_subtasks(parent_service, parent_task)
     parent_service.service_resources.collect do |svc_rsc|
+      next if svc_rsc.resource.respond_to?(:retired?) && svc_rsc.resource.retired?
       next unless svc_rsc.resource.try(:retireable?)
       # TODO: the next line deals with the filtering for provisioning
       # (https://github.com/ManageIQ/manageiq/blob/3921e87915b5a69937b9d4a70bb24ab71b97c165/app/models/service_template/filter.rb#L5)
diff --git a/spec/models/service_retire_task_spec.rb b/spec/models/service_retire_task_spec.rb
index 0e35521db58..bca214ffd24 100644
--- a/spec/models/service_retire_task_spec.rb
+++ b/spec/models/service_retire_task_spec.rb
@@ -163,6 +163,15 @@
       it "returns a description based upon the source service name" do
         expect(ServiceRetireTask.get_description(miq_request)).to eq("Service Retire for: #{service.name}")
       end
+
+      it "does not create vm retire subtask for retired vm" do
+        service.add_resource!(FactoryBot.create(:vm_openstack, :retired => true))
+        service_retire_task.after_request_task_create
+
+        expect(service_retire_task.description).to eq("Service Retire for: #{service.name} - ")
+        expect(VmRetireTask.count).to eq(0)
+        expect(ServiceRetireTask.count).to eq(1)
+      end
     end
 
     context "bundled service retires all children" do