diff --git a/changes/ticket40692 b/changes/ticket40692
new file mode 100644
index 0000000000..8405486115
--- /dev/null
+++ b/changes/ticket40692
@@ -0,0 +1,3 @@
+  o Minor bugfixes (onion service client):
+    - A collapsing onion service circuit should be seen as an "unreachable"
+      error so it can be retried. Fixes bug 40692; bugfix on 0.3.5.1-alpha.
diff --git a/src/feature/hs/hs_client.c b/src/feature/hs/hs_client.c
index d08b518d94..a50598d9f3 100644
--- a/src/feature/hs/hs_client.c
+++ b/src/feature/hs/hs_client.c
@@ -1964,7 +1964,7 @@ void
 hs_client_circuit_cleanup_on_free(const circuit_t *circ)
 {
   bool has_timed_out;
-  rend_intro_point_failure_t failure = INTRO_POINT_FAILURE_GENERIC;
+  rend_intro_point_failure_t failure = INTRO_POINT_FAILURE_UNREACHABLE;
   const origin_circuit_t *orig_circ = NULL;
 
   tor_assert(circ);