diff --git a/contrib/postgres_fdw/connection.c b/contrib/postgres_fdw/connection.c
index 76994f3820..8bbad61c3b 100644
--- a/contrib/postgres_fdw/connection.c
+++ b/contrib/postgres_fdw/connection.c
@@ -74,6 +74,7 @@ static unsigned int prep_stmt_number = 0;
 static bool xact_got_connection = false;
 
 /* prototypes of private functions */
+static void make_new_connection(ConnCacheEntry *entry, UserMapping *user);
 static PGconn *connect_pg_server(ForeignServer *server, UserMapping *user);
 static void disconnect_pg_server(ConnCacheEntry *entry);
 static void check_conn_params(const char **keywords, const char **values, UserMapping *user);
@@ -108,9 +109,10 @@ PGconn *
 GetConnection(UserMapping *user, bool will_prep_stmt)
 {
 	bool		found;
-	volatile bool retry_conn = false;
+	bool		retry = false;
 	ConnCacheEntry *entry;
 	ConnCacheKey key;
+	MemoryContext ccxt = CurrentMemoryContext;
 
 	/* First time through, initialize connection cache hashtable */
 	if (ConnectionHash == NULL)
@@ -160,23 +162,14 @@ GetConnection(UserMapping *user, bool will_prep_stmt)
 	/* Reject further use of connections which failed abort cleanup. */
 	pgfdw_reject_incomplete_xact_state_change(entry);
 
-retry:
-
 	/*
 	 * If the connection needs to be remade due to invalidation, disconnect as
-	 * soon as we're out of all transactions. Also, if previous attempt to
-	 * start new remote transaction failed on the cached connection,
-	 * disconnect it to retry a new connection.
+	 * soon as we're out of all transactions.
 	 */
-	if ((entry->conn != NULL && entry->invalidated &&
-		 entry->xact_depth == 0) || retry_conn)
+	if (entry->conn != NULL && entry->invalidated && entry->xact_depth == 0)
 	{
-		if (retry_conn)
-			elog(DEBUG3, "closing connection %p to reestablish a new one",
-				 entry->conn);
-		else
-			elog(DEBUG3, "closing connection %p for option changes to take effect",
-				 entry->conn);
+		elog(DEBUG3, "closing connection %p for option changes to take effect",
+			 entry->conn);
 		disconnect_pg_server(entry);
 	}
 
@@ -186,58 +179,67 @@ retry:
 	 * will remain in a valid empty state, ie conn == NULL.)
 	 */
 	if (entry->conn == NULL)
-	{
-		ForeignServer *server = GetForeignServer(user->serverid);
-
-		/* Reset all transient state fields, to be sure all are clean */
-		entry->xact_depth = 0;
-		entry->have_prep_stmt = false;
-		entry->have_error = false;
-		entry->changing_xact_state = false;
-		entry->invalidated = false;
-		entry->server_hashvalue =
-			GetSysCacheHashValue1(FOREIGNSERVEROID,
-								  ObjectIdGetDatum(server->serverid));
-		entry->mapping_hashvalue =
-			GetSysCacheHashValue1(USERMAPPINGOID,
-								  ObjectIdGetDatum(user->umid));
-
-		/* Now try to make the connection */
-		entry->conn = connect_pg_server(server, user);
-
-		elog(DEBUG3, "new postgres_fdw connection %p for server \"%s\" (user mapping oid %u, userid %u)",
-			 entry->conn, server->servername, user->umid, user->userid);
-	}
+		make_new_connection(entry, user);
 
 	/*
 	 * We check the health of the cached connection here when starting a new
-	 * remote transaction. If a broken connection is detected in the first
-	 * attempt, we try to reestablish a new connection. If broken connection
-	 * is detected again here, we give up getting a connection.
+	 * remote transaction. If a broken connection is detected, we try to
+	 * reestablish a new connection later.
 	 */
 	PG_TRY();
 	{
 		/* Start a new transaction or subtransaction if needed. */
 		begin_remote_xact(entry);
-		retry_conn = false;
 	}
 	PG_CATCH();
 	{
-		if (PQstatus(entry->conn) != CONNECTION_BAD ||
-			entry->xact_depth > 0 ||
-			retry_conn)
+		MemoryContext ecxt = MemoryContextSwitchTo(ccxt);
+		ErrorData  *errdata = CopyErrorData();
+
+		/*
+		 * The error code ERRCODE_CONNECTION_FAILURE indicates a broken
+		 * connection. If it's detected when starting a new remote transaction
+		 * (not subtransaction), new connection will be reestablished later.
+		 */
+		if (errdata->sqlerrcode != ERRCODE_CONNECTION_FAILURE ||
+			entry->xact_depth > 0)
+		{
+			MemoryContextSwitchTo(ecxt);
 			PG_RE_THROW();
-		retry_conn = true;
+		}
+
+		/* Clean up the error state */
+		FlushErrorState();
+		FreeErrorData(errdata);
+		errdata = NULL;
+
+		retry = true;
 	}
 	PG_END_TRY();
 
-	if (retry_conn)
+	/*
+	 * If a broken connection is detected, disconnect it, reestablish a new
+	 * connection and retry a new remote transaction. If connection failure
+	 * is reported again, we give up getting a connection.
+	 */
+	if (retry)
 	{
+		Assert(PQstatus(entry->conn) == CONNECTION_BAD);
+		Assert(entry->xact_depth == 0);
+
 		ereport(DEBUG3,
 				(errmsg_internal("could not start remote transaction on connection %p",
 								 entry->conn)),
 				errdetail_internal("%s", pchomp(PQerrorMessage(entry->conn))));
-		goto retry;
+
+		elog(DEBUG3, "closing connection %p to reestablish a new one",
+			 entry->conn);
+		disconnect_pg_server(entry);
+
+		if (entry->conn == NULL)
+			make_new_connection(entry, user);
+
+		begin_remote_xact(entry);
 	}
 
 	/* Remember if caller will prepare statements */
@@ -246,6 +248,37 @@ retry:
 	return entry->conn;
 }
 
+/*
+ * Reset all transient state fields in the cached connection entry and
+ * establish new connection to the remote server.
+ */
+static void
+make_new_connection(ConnCacheEntry *entry, UserMapping *user)
+{
+	ForeignServer *server = GetForeignServer(user->serverid);
+
+	Assert(entry->conn == NULL);
+
+	/* Reset all transient state fields, to be sure all are clean */
+	entry->xact_depth = 0;
+	entry->have_prep_stmt = false;
+	entry->have_error = false;
+	entry->changing_xact_state = false;
+	entry->invalidated = false;
+	entry->server_hashvalue =
+		GetSysCacheHashValue1(FOREIGNSERVEROID,
+							  ObjectIdGetDatum(server->serverid));
+	entry->mapping_hashvalue =
+		GetSysCacheHashValue1(USERMAPPINGOID,
+							  ObjectIdGetDatum(user->umid));
+
+	/* Now try to make the connection */
+	entry->conn = connect_pg_server(server, user);
+
+	elog(DEBUG3, "new postgres_fdw connection %p for server \"%s\" (user mapping oid %u, userid %u)",
+		 entry->conn, server->servername, user->umid, user->userid);
+}
+
 /*
  * Connect to remote server using specified server and user mapping properties.
  */