diff --git a/pkg/envtest/crd.go b/pkg/envtest/crd.go
index ed54e3da57..0b002115a8 100644
--- a/pkg/envtest/crd.go
+++ b/pkg/envtest/crd.go
@@ -127,14 +127,17 @@ func WaitForCRDs(config *rest.Config, crds []client.Object, options CRDInstallOp
 		if err != nil {
 			return err
 		}
-		if crdVersion != "" {
-			gvs = append(gvs, schema.GroupVersion{Group: crdGroup, Version: crdVersion})
-		}
-
-		versions, _, err := unstructured.NestedSlice(crd.Object, "spec", "versions")
+		versions, found, err := unstructured.NestedSlice(crd.Object, "spec", "versions")
 		if err != nil {
 			return err
 		}
+
+		// gvs should be added here only if single version is found. If multiple version is found we will add those version
+		// based on the version is served or not.
+		if crdVersion != "" && !found {
+			gvs = append(gvs, schema.GroupVersion{Group: crdGroup, Version: crdVersion})
+		}
+
 		for _, version := range versions {
 			versionMap, ok := version.(map[string]interface{})
 			if !ok {
diff --git a/pkg/envtest/envtest_test.go b/pkg/envtest/envtest_test.go
index 7f1885f88b..7caa9e75de 100644
--- a/pkg/envtest/envtest_test.go
+++ b/pkg/envtest/envtest_test.go
@@ -81,6 +81,44 @@ var _ = Describe("Test", func() {
 	}, teardownTimeoutSeconds)
 
 	Describe("InstallCRDs", func() {
+		It("should install the unserved CRDs into the cluster", func() {
+			crds, err = InstallCRDs(env.Config, CRDInstallOptions{
+				Paths: []string{filepath.Join(".", "testdata", "crds", "examplecrd_unserved.yaml")},
+			})
+			Expect(err).NotTo(HaveOccurred())
+
+			// Expect to find the CRDs
+
+			crdv1 := &apiextensionsv1.CustomResourceDefinition{}
+			err = c.Get(context.TODO(), types.NamespacedName{Name: "frigates.ship.example.com"}, crdv1)
+			Expect(err).NotTo(HaveOccurred())
+			Expect(crdv1.Spec.Names.Kind).To(Equal("Frigate"))
+
+			err = WaitForCRDs(env.Config, []client.Object{
+				&v1beta1.CustomResourceDefinition{
+					Spec: v1beta1.CustomResourceDefinitionSpec{
+						Group: "ship.example.com",
+						Names: v1beta1.CustomResourceDefinitionNames{
+							Plural: "frigates",
+						},
+						Versions: []v1beta1.CustomResourceDefinitionVersion{
+							{
+								Name:    "v1",
+								Storage: true,
+								Served:  false,
+							},
+							{
+								Name:    "v1beta1",
+								Storage: false,
+								Served:  false,
+							},
+						}},
+				},
+			},
+				CRDInstallOptions{MaxTime: 50 * time.Millisecond, PollInterval: 15 * time.Millisecond},
+			)
+			Expect(err).NotTo(HaveOccurred())
+		})
 		It("should install the CRDs into the cluster using directory", func(done Done) {
 			crds, err = InstallCRDs(env.Config, CRDInstallOptions{
 				Paths: []string{validDirectory},
diff --git a/pkg/envtest/testdata/crds/examplecrd_unserved.yaml b/pkg/envtest/testdata/crds/examplecrd_unserved.yaml
new file mode 100644
index 0000000000..cf759009a0
--- /dev/null
+++ b/pkg/envtest/testdata/crds/examplecrd_unserved.yaml
@@ -0,0 +1,61 @@
+
+---
+apiVersion: apiextensions.k8s.io/v1beta1
+kind: CustomResourceDefinition
+metadata:
+  annotations:
+    controller-gen.kubebuilder.io/version: v0.3.0
+  creationTimestamp: null
+  name: frigates.ship.example.com
+spec:
+  group: ship.example.com
+  names:
+    kind: Frigate
+    listKind: FrigateList
+    plural: frigates
+    singular: frigate
+  scope: Namespaced
+  subresources:
+    status: {}
+  validation:
+    openAPIV3Schema:
+      description: Frigate is the Schema for the frigates API
+      properties:
+        apiVersion:
+          description: 'APIVersion defines the versioned schema of this representation
+            of an object. Servers should convert recognized schemas to the latest
+            internal value, and may reject unrecognized values. More info: https://git.k8s.io/community/contributors/devel/sig-architecture/api-conventions.md#resources'
+          type: string
+        kind:
+          description: 'Kind is a string value representing the REST resource this
+            object represents. Servers may infer this from the endpoint the client
+            submits requests to. Cannot be updated. In CamelCase. More info: https://git.k8s.io/community/contributors/devel/sig-architecture/api-conventions.md#types-kinds'
+          type: string
+        metadata:
+          type: object
+        spec:
+          description: FrigateSpec defines the desired state of Frigate
+          properties:
+            foo:
+              description: Foo is an example field of Frigate. Edit Frigate_types.go
+                to remove/update
+              type: string
+          type: object
+        status:
+          description: FrigateStatus defines the observed state of Frigate
+          type: object
+      type: object
+  version: v1
+  versions:
+  - name: v1
+    served: false
+    storage: true
+  - name: v1beta1
+    served: false
+    storage: false
+status:
+  acceptedNames:
+    kind: ""
+    plural: ""
+  conditions: []
+  storedVersions: []