diff --git a/.chloggen/signalfx-exp-retry-dim-update-without-tags.yaml b/.chloggen/signalfx-exp-retry-dim-update-without-tags.yaml
new file mode 100644
index 000000000000..1fed01836004
--- /dev/null
+++ b/.chloggen/signalfx-exp-retry-dim-update-without-tags.yaml
@@ -0,0 +1,27 @@
+# One of 'breaking', 'deprecation', 'new_component', 'enhancement', 'bug_fix'
+change_type: enhancement
+
+# The name of the component, or a single word describing the area of concern, (e.g. filelogreceiver)
+component: exporter/signalfx
+
+# A brief description of the change.  Surround your text with quotes ("") if it needs to start with a backtick (`).
+note: Enabling retrying for dimension properties update without tags in case of 400 response error.
+
+# Mandatory: One or more tracking issues related to the change. You can use the PR number here if no issue exists.
+issues: [36044]
+
+# (Optional) One or more lines of additional information to render under the primary note.
+# These lines will be padded with 2 spaces and then inserted directly into the document.
+# Use pipe (|) for multiline entries.
+subtext: |
+  Property and tag updates are done using the same API call. After this change, the exporter will retry once to sync
+  properties in case of 400 response error.
+
+# If your change doesn't affect end users or the exported elements of any package,
+# you should instead start your pull request title with [chore] or use the "Skip Changelog" label.
+# Optional: The change log or logs in which this entry should be included.
+# e.g. '[user]' or '[user, api]'
+# Include 'user' if the change is relevant to end users.
+# Include 'api' if there is a change to a library API.
+# Default: '[user]'
+change_logs: [user]
diff --git a/exporter/signalfxexporter/internal/dimensions/dimclient.go b/exporter/signalfxexporter/internal/dimensions/dimclient.go
index ccfdf0c03fac..ff0337767d3b 100644
--- a/exporter/signalfxexporter/internal/dimensions/dimclient.go
+++ b/exporter/signalfxexporter/internal/dimensions/dimclient.go
@@ -237,30 +237,32 @@ func (dc *DimensionClient) handleDimensionUpdate(ctx context.Context, dimUpdate
 
 	req = req.WithContext(
 		context.WithValue(req.Context(), RequestFailedCallbackKey, RequestFailedCallback(func(statusCode int, err error) {
-			if statusCode >= 400 && statusCode < 500 && statusCode != 404 {
-				dc.logger.Error(
-					"Unable to update dimension, not retrying",
-					zap.Error(err),
-					zap.String("URL", sanitize.URL(req.URL)),
-					zap.String("dimensionUpdate", dimUpdate.String()),
-					zap.Int("statusCode", statusCode),
-				)
-
-				// Don't retry if it is a 4xx error (except 404) since these
-				// imply an input/auth error, which is not going to be remedied
-				// by retrying.
-				// 404 errors are special because they can occur due to races
-				// within the dimension patch endpoint.
-				return
+			retry := false
+			retryMsg := "not retrying"
+			if statusCode == 400 && len(dimUpdate.Tags) > 0 {
+				// It's possible that number of tags is too large. In this case,
+				// we should retry the request without tags to update the dimension properties at least.
+				dimUpdate.Tags = nil
+				retry = true
+				retryMsg = "retrying without tags"
+			} else if statusCode == 404 || statusCode >= 500 {
+				// Retry on 5xx server errors or 404s which can occur due to races within the dimension patch endpoint.
+				retry = true
+				retryMsg = "retrying"
 			}
 
 			dc.logger.Error(
-				"Unable to update dimension, retrying",
+				"Unable to update dimension, "+retryMsg,
 				zap.Error(err),
 				zap.String("URL", sanitize.URL(req.URL)),
 				zap.String("dimensionUpdate", dimUpdate.String()),
 				zap.Int("statusCode", statusCode),
 			)
+
+			if !retry {
+				return
+			}
+
 			// The retry is meant to provide some measure of robustness against
 			// temporary API failures.  If the API is down for significant
 			// periods of time, dimension updates will probably eventually back
diff --git a/exporter/signalfxexporter/internal/dimensions/dimclient_test.go b/exporter/signalfxexporter/internal/dimensions/dimclient_test.go
index fb84254029f6..e82fbb9dfcab 100644
--- a/exporter/signalfxexporter/internal/dimensions/dimclient_test.go
+++ b/exporter/signalfxexporter/internal/dimensions/dimclient_test.go
@@ -273,6 +273,63 @@ func TestDimensionClient(t *testing.T) {
 		require.EqualValues(t, 2, server.requestCount.Load())
 	})
 
+	t.Run("successful retry without tags on 400 response", func(t *testing.T) {
+		server.reset()
+		server.respCode = http.StatusBadRequest
+
+		require.NoError(t, client.acceptDimension(&DimensionUpdate{
+			Name:  "AWSUniqueID",
+			Value: "abcd",
+			Properties: map[string]*string{
+				"c": newString("d"),
+			},
+			Tags: map[string]bool{
+				"running": true,
+			},
+		}))
+		server.handleRequest()
+		require.Empty(t, server.acceptedDims)
+
+		// The next successful request should be sent without tags.
+		server.respCode = http.StatusOK
+		server.handleRequest()
+		require.Equal(t, []dim{
+			{
+				Key:   "AWSUniqueID",
+				Value: "abcd",
+				Properties: map[string]*string{
+					"c": newString("d"),
+				},
+			},
+		}, server.acceptedDims)
+		require.EqualValues(t, 2, server.requestCount.Load())
+	})
+
+	t.Run("retry without tags only once", func(t *testing.T) {
+		server.reset()
+		server.respCode = http.StatusBadRequest
+
+		require.NoError(t, client.acceptDimension(&DimensionUpdate{
+			Name:  "AWSUniqueID",
+			Value: "abcd",
+			Properties: map[string]*string{
+				"c": newString("d"),
+			},
+			Tags: map[string]bool{
+				"running": true,
+			},
+		}))
+		server.handleRequest()
+		require.Empty(t, server.acceptedDims)
+
+		// handle retry
+		server.handleRequest()
+
+		// ensure no more retries
+		time.Sleep(100 * time.Millisecond)
+		require.EqualValues(t, 2, server.requestCount.Load())
+	})
+
 	t.Run("send successive quick updates to same dim", func(t *testing.T) {
 		server.reset()