diff --git a/vmware_nsxlib/v3/client.py b/vmware_nsxlib/v3/client.py
index 4c02a99b..3f18c700 100644
--- a/vmware_nsxlib/v3/client.py
+++ b/vmware_nsxlib/v3/client.py
@@ -39,7 +39,8 @@ def http_error_to_exception(status_code, error_code):
              '60514': exceptions.NsxSearchTimeout,
              '500045': exceptions.NsxPendingDelete,
              '500030': exceptions.ResourceInUse,
-             '500105': exceptions.NsxOverlapAddresses},
+             '500105': exceptions.NsxOverlapAddresses,
+             '503040': exceptions.NsxSegemntWithVM},
         requests.codes.CONFLICT: exceptions.StaleRevision,
         requests.codes.PRECONDITION_FAILED: exceptions.StaleRevision,
         requests.codes.INTERNAL_SERVER_ERROR:
diff --git a/vmware_nsxlib/v3/exceptions.py b/vmware_nsxlib/v3/exceptions.py
index 77ac0a92..a4c3c0a4 100644
--- a/vmware_nsxlib/v3/exceptions.py
+++ b/vmware_nsxlib/v3/exceptions.py
@@ -199,6 +199,10 @@ class NsxPendingDelete(NsxLibException):
                 "remove the deleted object")
 
 
+class NsxSegemntWithVM(ManagerError):
+    message = _("Cannot delete segment as it still has VMs or VIFs attached")
+
+
 class NsxOverlapAddresses(NsxLibInvalidInput):
     message = _("Overlapping addresses found: %(details)s")
 
diff --git a/vmware_nsxlib/v3/policy/core_resources.py b/vmware_nsxlib/v3/policy/core_resources.py
index 6adaba47..828b24d8 100644
--- a/vmware_nsxlib/v3/policy/core_resources.py
+++ b/vmware_nsxlib/v3/policy/core_resources.py
@@ -1774,7 +1774,14 @@ class NsxPolicySegmentApi(NsxPolicyResourceBase):
     def delete(self, segment_id,
                tenant=constants.POLICY_INFRA_TENANT):
         segment_def = self.entry_def(segment_id=segment_id, tenant=tenant)
-        self.policy_api.delete(segment_def)
+
+        @utils.retry_upon_exception(
+            exceptions.NsxSegemntWithVM,
+            max_attempts=self.policy_api.client.max_attempts)
+        def do_delete():
+            self.policy_api.delete(segment_def)
+
+        do_delete()
 
     def get(self, segment_id,
             tenant=constants.POLICY_INFRA_TENANT, silent=False):