diff --git a/pkg/reconcile/reconcile.go b/pkg/reconcile/reconcile.go
index d51cfc34ab..4c8f8357a5 100644
--- a/pkg/reconcile/reconcile.go
+++ b/pkg/reconcile/reconcile.go
@@ -112,11 +112,15 @@ type terminalError struct {
 	err error
 }
 
+// This function will return nil if te.err is nil.
 func (te *terminalError) Unwrap() error {
 	return te.err
 }
 
 func (te *terminalError) Error() string {
+	if te.err == nil {
+		return "nil terminal error"
+	}
 	return "terminal error: " + te.err.Error()
 }
 
diff --git a/pkg/reconcile/reconcile_test.go b/pkg/reconcile/reconcile_test.go
index b5660f1b4f..9373d5ed5c 100644
--- a/pkg/reconcile/reconcile_test.go
+++ b/pkg/reconcile/reconcile_test.go
@@ -96,5 +96,10 @@ var _ = Describe("reconcile", func() {
 
 			Expect(apierrors.IsGone(terminalError)).To(BeTrue())
 		})
+
+		It("should handle nil terminal errors properly", func() {
+			err := reconcile.TerminalError(nil)
+			Expect(err.Error()).To(Equal("nil terminal error"))
+		})
 	})
 })