diff --git a/mysql-test/suite/rpl/r/rpl_parallel_retry.result b/mysql-test/suite/rpl/r/rpl_parallel_retry.result
index cd12d92430b..12e630b3bfa 100644
--- a/mysql-test/suite/rpl/r/rpl_parallel_retry.result
+++ b/mysql-test/suite/rpl/r/rpl_parallel_retry.result
@@ -188,6 +188,52 @@ a	LENGTH(b)
 3	5012
 4	5000
 SET GLOBAL max_relay_log_size=@old_max;
+*** MDEV-7065: Incorrect relay log position in parallel replication after retry of transaction ***
+include/stop_slave.inc
+BEGIN;
+INSERT INTO t1 VALUES (100, 0);
+INSERT INTO t1 VALUES (101, 0);
+INSERT INTO t1 VALUES (102, 0);
+INSERT INTO t1 VALUES (103, 0);
+COMMIT;
+SELECT * FROM t1 WHERE a >= 100 ORDER BY a;
+a	b
+100	0
+101	0
+102	0
+103	0
+SET @old_dbug= @@GLOBAL.debug_dbug;
+SET GLOBAL debug_dbug="+d,rpl_parallel_simulate_temp_err_xid";
+include/start_slave.inc
+SET GLOBAL debug_dbug=@old_dbug;
+retries
+1
+SELECT * FROM t1 WHERE a >= 100 ORDER BY a;
+a	b
+100	0
+101	0
+102	0
+103	0
+include/stop_slave_sql.inc
+INSERT INTO t1 VALUES (104, 1);
+INSERT INTO t1 VALUES (105, 1);
+INSERT INTO t1 VALUES (106, 1);
+INSERT INTO t1 VALUES (107, 1);
+INSERT INTO t1 VALUES (108, 1);
+INSERT INTO t1 VALUES (109, 1);
+include/start_slave.inc
+SELECT * FROM t1 WHERE a >= 100 ORDER BY a;
+a	b
+100	0
+101	0
+102	0
+103	0
+104	1
+105	1
+106	1
+107	1
+108	1
+109	1
 include/stop_slave.inc
 SET GLOBAL slave_parallel_threads=@old_parallel_threads;
 include/start_slave.inc
diff --git a/mysql-test/suite/rpl/t/rpl_parallel_retry.test b/mysql-test/suite/rpl/t/rpl_parallel_retry.test
index d3be6262cb0..6afe11dfa2e 100644
--- a/mysql-test/suite/rpl/t/rpl_parallel_retry.test
+++ b/mysql-test/suite/rpl/t/rpl_parallel_retry.test
@@ -135,7 +135,6 @@ SET GLOBAL debug_dbug="+d,rpl_parallel_simulate_temp_err_gtid_0_x_100,rpl_parall
 let $old_retry= query_get_value(SHOW STATUS LIKE 'Slave_retried_transactions', Value, 1);
 START SLAVE;
 --let $slave_sql_errno= 1213
---let $slave_timeout= 10
 --source include/wait_for_slave_sql_error.inc
 SET GLOBAL debug_dbug=@old_dbug;
 let $new_retry= query_get_value(SHOW STATUS LIKE 'Slave_retried_transactions', Value, 1);
@@ -208,6 +207,58 @@ SELECT a, LENGTH(b) FROM t2 ORDER BY a;
 SET GLOBAL max_relay_log_size=@old_max;
 
 
+--echo *** MDEV-7065: Incorrect relay log position in parallel replication after retry of transaction ***
+
+--connection server_2
+--source include/stop_slave.inc
+
+--connection server_1
+BEGIN;
+INSERT INTO t1 VALUES (100, 0);
+INSERT INTO t1 VALUES (101, 0);
+INSERT INTO t1 VALUES (102, 0);
+INSERT INTO t1 VALUES (103, 0);
+COMMIT;
+SELECT * FROM t1 WHERE a >= 100 ORDER BY a;
+--save_master_pos
+
+--connection server_2
+# Inject a DBUG error insert to cause the XID event of the single transaction
+# from the master to fail with a deadlock error and be retried.
+# The bug was that the retry of the XID would leave the relay log position
+# incorrect (off by the size of XID event).
+SET @old_dbug= @@GLOBAL.debug_dbug;
+SET GLOBAL debug_dbug="+d,rpl_parallel_simulate_temp_err_xid";
+let $old_retry= query_get_value(SHOW STATUS LIKE 'Slave_retried_transactions', Value, 1);
+--source include/start_slave.inc
+--sync_with_master
+SET GLOBAL debug_dbug=@old_dbug;
+let $new_retry= query_get_value(SHOW STATUS LIKE 'Slave_retried_transactions', Value, 1);
+--disable_query_log
+eval SELECT $new_retry - $old_retry AS retries;
+--enable_query_log
+
+SELECT * FROM t1 WHERE a >= 100 ORDER BY a;
+# Stop the SQL thread. When the bug was there to give the incorrect relay log
+# position, the restart of the SQL thread would read garbage data from the
+# middle of an event and fail with relay log IO error.
+--source include/stop_slave_sql.inc
+
+--connection server_1
+INSERT INTO t1 VALUES (104, 1);
+INSERT INTO t1 VALUES (105, 1);
+INSERT INTO t1 VALUES (106, 1);
+INSERT INTO t1 VALUES (107, 1);
+INSERT INTO t1 VALUES (108, 1);
+INSERT INTO t1 VALUES (109, 1);
+--save_master_pos
+
+--connection server_2
+--source include/start_slave.inc
+--sync_with_master
+SELECT * FROM t1 WHERE a >= 100 ORDER BY a;
+
+
 --connection server_2
 --source include/stop_slave.inc
 SET GLOBAL slave_parallel_threads=@old_parallel_threads;
diff --git a/sql/rpl_parallel.cc b/sql/rpl_parallel.cc
index 154a8c0f98f..267f40b7cf2 100644
--- a/sql/rpl_parallel.cc
+++ b/sql/rpl_parallel.cc
@@ -446,7 +446,7 @@ do_retry:
     ev->thd= thd;
 
     mysql_mutex_lock(&rpt->LOCK_rpl_thread);
-    qev= rpt->retry_get_qev(ev, orig_qev, log_name, cur_offset,
+    qev= rpt->retry_get_qev(ev, orig_qev, log_name, old_offset,
                             cur_offset - old_offset);
     mysql_mutex_unlock(&rpt->LOCK_rpl_thread);
     if (!qev)
@@ -776,6 +776,18 @@ handle_rpl_parallel_thread(void *arg)
       if (likely(!rgi->worker_error) && !skip_event_group)
       {
         ++rgi->retry_event_count;
+#ifndef DBUG_OFF
+        err= 0;
+        DBUG_EXECUTE_IF("rpl_parallel_simulate_temp_err_xid",
+          if (event_type == XID_EVENT)
+          {
+            thd->clear_error();
+            thd->get_stmt_da()->reset_diagnostics_area();
+            my_error(ER_LOCK_DEADLOCK, MYF(0));
+            err= 1;
+          });
+        if (!err)
+#endif
         err= rpt_handle_event(qev, rpt);
         delete_or_keep_event_post_apply(rgi, event_type, qev->ev);
         DBUG_EXECUTE_IF("rpl_parallel_simulate_temp_err_gtid_0_x_100",