diff --git a/airbyte_cdk/sources/declarative/parsers/model_to_component_factory.py b/airbyte_cdk/sources/declarative/parsers/model_to_component_factory.py
index 788681d41..8f7f9fc55 100644
--- a/airbyte_cdk/sources/declarative/parsers/model_to_component_factory.py
+++ b/airbyte_cdk/sources/declarative/parsers/model_to_component_factory.py
@@ -618,6 +618,7 @@
     NoopMessageRepository,
 )
 from airbyte_cdk.sources.message.repository import StateFilteringMessageRepository
+from airbyte_cdk.sources.streams import NO_CURSOR_STATE_KEY
 from airbyte_cdk.sources.streams.call_rate import (
     APIBudget,
     FixedWindowCallRatePolicy,
@@ -3578,7 +3579,14 @@ def create_state_delegating_stream(
         has_parent = False if has_parent_state is None else has_parent_state
 
         if not stream_state and not has_parent:
-            return self._create_component_from_model(model.full_refresh_stream, config=config, **kwargs)  # type: ignore[no-any-return]
+            return self._create_component_from_model(
+                model.full_refresh_stream, config=config, **kwargs
+            )  # type: ignore[no-any-return]
+
+        if stream_state and stream_state.get(NO_CURSOR_STATE_KEY):
+            return self._create_component_from_model(
+                model.incremental_stream, config=config, **kwargs
+            )  # type: ignore[no-any-return]
 
         incremental_stream: DefaultStream = self._create_component_from_model(
             model.incremental_stream, config=config, **kwargs
@@ -3615,20 +3623,12 @@ def _is_cursor_older_than_retention_period(
 
         for cursor in cursors:
             if not hasattr(cursor, "get_cursor_datetime_from_state"):
-                raise SystemError(
-                    f"Stream '{stream_name}' cursor type '{type(cursor).__name__}' does not have "
-                    f"get_cursor_datetime_from_state method. Cursor age validation with "
-                    f"api_retention_period is not supported for this cursor type."
-                )
+                continue
 
             try:
                 cursor_datetime = cursor.get_cursor_datetime_from_state(stream_state)
             except NotImplementedError:
-                raise SystemError(
-                    f"Stream '{stream_name}' cursor type '{type(cursor).__name__}' does not implement "
-                    f"get_cursor_datetime_from_state. Cursor age validation with "
-                    f"api_retention_period is not supported for this cursor type."
-                )
+                continue
 
             if cursor_datetime is not None:
                 break
diff --git a/unit_tests/sources/declarative/test_state_delegating_stream.py b/unit_tests/sources/declarative/test_state_delegating_stream.py
index 1a7df9c07..e8a5573b5 100644
--- a/unit_tests/sources/declarative/test_state_delegating_stream.py
+++ b/unit_tests/sources/declarative/test_state_delegating_stream.py
@@ -566,3 +566,40 @@ def test_cursor_age_validation_raises_error_for_unparseable_cursor():
 
     with pytest.raises(ValueError, match="not-a-date"):
         source.discover(logger=MagicMock(), config=_CONFIG)
+
+
+@freezegun.freeze_time("2024-07-15")
+def test_final_state_cursor_skips_retention_check_and_uses_incremental():
+    """When state is a final state from FinalStateCursor, skip retention check and use incremental."""
+    manifest = _create_manifest_with_retention_period("P7D")
+
+    with HttpMocker() as http_mocker:
+        http_mocker.get(
+            HttpRequest(
+                url="https://api.test.com/items_with_filtration?start=2024-07-01&end=2024-07-15"
+            ),
+            HttpResponse(
+                body=json.dumps(
+                    [
+                        {"id": 1, "name": "item_1", "updated_at": "2024-07-14"},
+                    ]
+                )
+            ),
+        )
+
+        state = [
+            AirbyteStateMessage(
+                type=AirbyteStateType.STREAM,
+                stream=AirbyteStreamState(
+                    stream_descriptor=StreamDescriptor(name="TestStream", namespace=None),
+                    stream_state=AirbyteStateBlob(__ab_no_cursor_state_message=True),
+                ),
+            )
+        ]
+        source = ConcurrentDeclarativeSource(
+            source_config=manifest, config=_CONFIG, catalog=None, state=state
+        )
+        configured_catalog = create_configured_catalog(source, _CONFIG)
+
+        records = get_records(source, _CONFIG, configured_catalog, state)
+        assert len(records) == 1