diff --git a/CHANGELOG.md b/CHANGELOG.md
index a45202c034..b3a1676a06 100644
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -11,6 +11,10 @@ We use *breaking* word for marking changes that are not backward compatible (rel
 
 ## Unreleased
 
+### Fixed
+
+* [#2637](https://github.com/thanos-io/thanos/pull/2637) Compact: detect retryable errors that are inside of a wrapped `tsdb.MultiError`
+
 ## [v0.13.0](https://github.com/thanos-io/thanos/releases) - IN PROGRESS
 
 ### Fixed
diff --git a/pkg/compact/compact.go b/pkg/compact/compact.go
index 09f1037443..26951b0124 100644
--- a/pkg/compact/compact.go
+++ b/pkg/compact/compact.go
@@ -487,7 +487,7 @@ func (e RetryError) Error() string {
 // IsRetryError returns true if the base error is a RetryError.
 // If a multierror is passed, all errors must be retriable.
 func IsRetryError(err error) bool {
-	if multiErr, ok := err.(terrors.MultiError); ok {
+	if multiErr, ok := errors.Cause(err).(terrors.MultiError); ok {
 		for _, err := range multiErr {
 			if _, ok := errors.Cause(err).(RetryError); !ok {
 				return false
diff --git a/pkg/compact/compact_test.go b/pkg/compact/compact_test.go
index 29ecba297d..11ce28c638 100644
--- a/pkg/compact/compact_test.go
+++ b/pkg/compact/compact_test.go
@@ -50,6 +50,8 @@ func TestRetryMultiError(t *testing.T) {
 	errs = terrors.MultiError{retryErr}
 	testutil.Assert(t, IsRetryError(errs), "if all errors are retriable this should return true")
 
+	testutil.Assert(t, IsRetryError(errors.Wrap(errs, "wrap")), "retry error with wrap")
+
 	errs = terrors.MultiError{nonRetryErr, retryErr}
 	testutil.Assert(t, !IsRetryError(errs), "mixed errors should return false")
 }