A retarding system for a mobile machine is disclosed. The machine may have a power source and a traction device driven by the power source. The retarding system may have a speed sensor configured to generate a speed signal indicative of a speed of the machine. Additionally, the retarding system may have a service brake configured to retard motion of the traction device. The retarding system may also have an engine brake configured to retard motion of the power source. In addition, the retarding system may have a controller in communication with the speed sensor, the service brake, and the engine brake. The controller may be configured to substantially concurrently retard motion of the traction device based on the speed signal and retard motion of the power source based on the speed signal.