As the interconnect delay is becoming a larger fraction of the clock cycle time, the conventional global stalling mechanism, which is used to correct error in general synchronous circuits, would be no longer feasible because of the expensive timing cost for the stalling signal to travel across the circuit. In this paper, we propose recovery-based resilient latency-insensitive systems (RLISs) that efficiently integrate error-recovery techniques with latency-insensitive design to replace the global stalling. We first demonstrate a baseline RLIS as the motivation of our work that uses additional output buffer which guarantees that only correct data can enter the output channel. However this baseline RLIS suffers from performance degradations even when errors do not occur. We propose a novel improved RLIS that allows erroneous data to propagate in the system. Equipped with improved queues that prevent accumulation of erroneous data, the improved RLIS retains the system performance. We provide theoretical study that analyzes the impact of errors on system performance and the queue sizing problem. We also theoretically prove that the improved RLIS performs no worse than the global stalling mechanism. Experimental results show that the improved RLIS has 40.3% and even 3.1% throughput improvements compared to the baseline RLIS and the infeasible global stalling mechanism respectively, with less than 10% hardware overhead.