diff --git a/knative-operator/pkg/controller/knativeserving/consoleutil/util.go b/knative-operator/pkg/controller/knativeserving/consoleutil/util.go
index f7a45e365f..05e18a647b 100644
--- a/knative-operator/pkg/controller/knativeserving/consoleutil/util.go
+++ b/knative-operator/pkg/controller/knativeserving/consoleutil/util.go
@@ -25,7 +25,7 @@ func IsConsoleInstalled() bool {
 // and checks if it is available.
 func IsClusterOperatorAvailable(status configv1.ClusterOperatorStatus) bool {
 	for _, cond := range status.Conditions {
-		if cond.Type == configv1.OperatorAvailable && cond.Status == configv1.ConditionTrue {
+		if cond.Type == configv1.OperatorAvailable && (cond.Status == configv1.ConditionTrue || cond.Reason == "Unmanaged") { {
 			return true
 		}
 	}