diff --git a/api/v1alpha1/operator_types.go b/api/v1alpha1/operator_types.go
index 0fc09278b..1234e8e68 100644
--- a/api/v1alpha1/operator_types.go
+++ b/api/v1alpha1/operator_types.go
@@ -33,10 +33,11 @@ const (
 	// TODO(user): add more Types, here and into init()
 	TypeReady = "Ready"
 
-	ReasonInstallationSucceeded  = "InstallationSucceeded"
-	ReasonResolutionFailed       = "ResolutionFailed"
-	ReasonBundleLookupFailed     = "BundleLookupFailed"
-	ReasonBundleDeploymentFailed = "BundleDeploymentFailed"
+	ReasonInstallationSucceeded     = "InstallationSucceeded"
+	ReasonResolutionFailed          = "ResolutionFailed"
+	ReasonBundleLookupFailed        = "BundleLookupFailed"
+	ReasonInstallationFailed        = "InstallationFailed"
+	ReasonInstallationStatusUnknown = "InstallationStatusUnknown"
 )
 
 func init() {
@@ -49,7 +50,8 @@ func init() {
 		ReasonInstallationSucceeded,
 		ReasonResolutionFailed,
 		ReasonBundleLookupFailed,
-		ReasonBundleDeploymentFailed,
+		ReasonInstallationFailed,
+		ReasonInstallationStatusUnknown,
 	)
 }
 
diff --git a/controllers/operator_controller.go b/controllers/operator_controller.go
index fe79edcb9..8492bb8df 100644
--- a/controllers/operator_controller.go
+++ b/controllers/operator_controller.go
@@ -155,7 +155,7 @@ func (r *OperatorReconciler) reconcile(ctx context.Context, op *operatorsv1alpha
 		apimeta.SetStatusCondition(&op.Status.Conditions, metav1.Condition{
 			Type:               operatorsv1alpha1.TypeReady,
 			Status:             metav1.ConditionFalse,
-			Reason:             operatorsv1alpha1.ReasonBundleDeploymentFailed,
+			Reason:             operatorsv1alpha1.ReasonInstallationFailed,
 			Message:            err.Error(),
 			ObservedGeneration: op.GetGeneration(),
 		})
@@ -168,7 +168,7 @@ func (r *OperatorReconciler) reconcile(ctx context.Context, op *operatorsv1alpha
 		apimeta.SetStatusCondition(&op.Status.Conditions, metav1.Condition{
 			Type:               operatorsv1alpha1.TypeReady,
 			Status:             metav1.ConditionUnknown,
-			Reason:             operatorsv1alpha1.ReasonInstallationSucceeded,
+			Reason:             operatorsv1alpha1.ReasonInstallationStatusUnknown,
 			Message:            err.Error(),
 			ObservedGeneration: op.GetGeneration(),
 		})
@@ -320,11 +320,14 @@ func mapBDStatusToReadyCondition(existingBD *rukpakv1alpha1.BundleDeployment, ob
 	// 3. If the Operator "Ready" status is "False": There is error observed from Rukpak. Update the status accordingly.
 	status, message := verifyBDStatus(existingBD)
 	var reason string
-	// TODO: introduce a new reason for condition Unknown, instead of defaulting it to Installation Succeeded.
-	if status == metav1.ConditionTrue {
+
+	switch status {
+	case metav1.ConditionTrue:
 		reason = operatorsv1alpha1.ReasonInstallationSucceeded
-	} else {
-		reason = operatorsv1alpha1.ReasonBundleDeploymentFailed
+	case metav1.ConditionFalse:
+		reason = operatorsv1alpha1.ReasonInstallationFailed
+	default:
+		reason = operatorsv1alpha1.ReasonInstallationStatusUnknown
 	}
 
 	return metav1.Condition{
diff --git a/controllers/operator_controller_test.go b/controllers/operator_controller_test.go
index 1e682d519..f1764ca19 100644
--- a/controllers/operator_controller_test.go
+++ b/controllers/operator_controller_test.go
@@ -116,7 +116,7 @@ var _ = Describe("Reconcile Test", func() {
 					cond := apimeta.FindStatusCondition(operator.Status.Conditions, operatorsv1alpha1.TypeReady)
 					Expect(cond).NotTo(BeNil())
 					Expect(cond.Status).To(Equal(metav1.ConditionUnknown))
-					Expect(cond.Reason).To(Equal(operatorsv1alpha1.ReasonBundleDeploymentFailed))
+					Expect(cond.Reason).To(Equal(operatorsv1alpha1.ReasonInstallationStatusUnknown))
 					Expect(cond.Message).To(ContainSubstring("waiting for bundleDeployment"))
 				})
 			})
@@ -179,7 +179,7 @@ var _ = Describe("Reconcile Test", func() {
 					cond := apimeta.FindStatusCondition(operator.Status.Conditions, operatorsv1alpha1.TypeReady)
 					Expect(cond).NotTo(BeNil())
 					Expect(cond.Status).To(Equal(metav1.ConditionUnknown))
-					Expect(cond.Reason).To(Equal(operatorsv1alpha1.ReasonBundleDeploymentFailed))
+					Expect(cond.Reason).To(Equal(operatorsv1alpha1.ReasonInstallationStatusUnknown))
 					Expect(cond.Message).To(ContainSubstring("waiting for bundleDeployment"))
 				})
 			})
@@ -227,7 +227,7 @@ var _ = Describe("Reconcile Test", func() {
 					cond := apimeta.FindStatusCondition(operator.Status.Conditions, operatorsv1alpha1.TypeReady)
 					Expect(cond).NotTo(BeNil())
 					Expect(cond.Status).To(Equal(metav1.ConditionUnknown))
-					Expect(cond.Reason).To(Equal(operatorsv1alpha1.ReasonBundleDeploymentFailed))
+					Expect(cond.Reason).To(Equal(operatorsv1alpha1.ReasonInstallationStatusUnknown))
 					Expect(cond.Message).To(ContainSubstring("waiting for bundleDeployment"))
 				})
 			})
@@ -363,7 +363,7 @@ var _ = Describe("Reconcile Test", func() {
 				cond := apimeta.FindStatusCondition(op.Status.Conditions, operatorsv1alpha1.TypeReady)
 				Expect(cond).NotTo(BeNil())
 				Expect(cond.Status).To(Equal(metav1.ConditionUnknown))
-				Expect(cond.Reason).To(Equal(operatorsv1alpha1.ReasonBundleDeploymentFailed))
+				Expect(cond.Reason).To(Equal(operatorsv1alpha1.ReasonInstallationStatusUnknown))
 				Expect(cond.Message).To(ContainSubstring(`waiting for bundleDeployment`))
 			})
 
@@ -393,7 +393,7 @@ var _ = Describe("Reconcile Test", func() {
 				cond := apimeta.FindStatusCondition(op.Status.Conditions, operatorsv1alpha1.TypeReady)
 				Expect(cond).NotTo(BeNil())
 				Expect(cond.Status).To(Equal(metav1.ConditionFalse))
-				Expect(cond.Reason).To(Equal(operatorsv1alpha1.ReasonBundleDeploymentFailed))
+				Expect(cond.Reason).To(Equal(operatorsv1alpha1.ReasonInstallationFailed))
 				Expect(cond.Message).To(ContainSubstring(`failed to unpack`))
 			})
 
@@ -423,7 +423,7 @@ var _ = Describe("Reconcile Test", func() {
 				cond := apimeta.FindStatusCondition(op.Status.Conditions, operatorsv1alpha1.TypeReady)
 				Expect(cond).NotTo(BeNil())
 				Expect(cond.Status).To(Equal(metav1.ConditionFalse))
-				Expect(cond.Reason).To(Equal(operatorsv1alpha1.ReasonBundleDeploymentFailed))
+				Expect(cond.Reason).To(Equal(operatorsv1alpha1.ReasonInstallationFailed))
 				Expect(cond.Message).To(ContainSubstring(`failed to install`))
 			})
 
@@ -490,7 +490,7 @@ var _ = Describe("Reconcile Test", func() {
 				cond := apimeta.FindStatusCondition(op.Status.Conditions, operatorsv1alpha1.TypeReady)
 				Expect(cond).NotTo(BeNil())
 				Expect(cond.Status).To(Equal(metav1.ConditionUnknown))
-				Expect(cond.Reason).To(Equal(operatorsv1alpha1.ReasonBundleDeploymentFailed))
+				Expect(cond.Reason).To(Equal(operatorsv1alpha1.ReasonInstallationStatusUnknown))
 				Expect(cond.Message).To(ContainSubstring(`could not determine the state of bundleDeployment`))
 			})
 
@@ -520,7 +520,7 @@ var _ = Describe("Reconcile Test", func() {
 				cond := apimeta.FindStatusCondition(op.Status.Conditions, operatorsv1alpha1.TypeReady)
 				Expect(cond).NotTo(BeNil())
 				Expect(cond.Status).To(Equal(metav1.ConditionUnknown))
-				Expect(cond.Reason).To(Equal(operatorsv1alpha1.ReasonBundleDeploymentFailed))
+				Expect(cond.Reason).To(Equal(operatorsv1alpha1.ReasonInstallationStatusUnknown))
 				Expect(cond.Message).To(ContainSubstring(`could not determine the state of bundleDeployment`))
 			})
 		})