diff --git a/pkg/splunk/enterprise/clustermanager.go b/pkg/splunk/enterprise/clustermanager.go
index 4ba7ca38a..92300bf47 100644
--- a/pkg/splunk/enterprise/clustermanager.go
+++ b/pkg/splunk/enterprise/clustermanager.go
@@ -185,10 +185,13 @@ func ApplyClusterManager(ctx context.Context, client splcommon.ControllerClient,
 		return result, err
 	}
 
-	// check if the ClusterManager is ready for version upgrade, if required
-	continueReconcile, err := UpgradePathValidation(ctx, client, cr, cr.Spec.CommonSplunkSpec, nil)
-	if err != nil || !continueReconcile {
-		return result, err
+	// CSPL-3060 - If statefulSet is not created, avoid upgrade path validation
+	if !statefulSet.CreationTimestamp.IsZero() {
+		// check if the ClusterManager is ready for version upgrade, if required
+		continueReconcile, err := UpgradePathValidation(ctx, client, cr, cr.Spec.CommonSplunkSpec, nil)
+		if err != nil || !continueReconcile {
+			return result, err
+		}
 	}
 
 	clusterManagerManager := splctrl.DefaultStatefulSetPodManager{}
diff --git a/pkg/splunk/enterprise/indexercluster.go b/pkg/splunk/enterprise/indexercluster.go
index 723e3c1a6..b14944dcc 100644
--- a/pkg/splunk/enterprise/indexercluster.go
+++ b/pkg/splunk/enterprise/indexercluster.go
@@ -201,11 +201,14 @@ func ApplyIndexerClusterManager(ctx context.Context, client splcommon.Controller
 		}
 	}
 
-	// check if the IndexerCluster is ready for version upgrade
 	cr.Kind = "IndexerCluster"
-	continueReconcile, err := UpgradePathValidation(ctx, client, cr, cr.Spec.CommonSplunkSpec, &mgr)
-	if err != nil || !continueReconcile {
-		return result, err
+	// CSPL-3060 - If statefulSet is not created, avoid upgrade path validation
+	if !statefulSet.CreationTimestamp.IsZero() {
+		// check if the IndexerCluster is ready for version upgrade
+		continueReconcile, err := UpgradePathValidation(ctx, client, cr, cr.Spec.CommonSplunkSpec, &mgr)
+		if err != nil || !continueReconcile {
+			return result, err
+		}
 	}
 
 	// check if version upgrade is set
@@ -453,11 +456,14 @@ func ApplyIndexerCluster(ctx context.Context, client splcommon.ControllerClient,
 		}
 	}
 
-	// check if the IndexerCluster is ready for version upgrade
 	cr.Kind = "IndexerCluster"
-	continueReconcile, err := UpgradePathValidation(ctx, client, cr, cr.Spec.CommonSplunkSpec, &mgr)
-	if err != nil || !continueReconcile {
-		return result, err
+	// CSPL-3060 - If statefulSet is not created, avoid upgrade path validation
+	if !statefulSet.CreationTimestamp.IsZero() {
+		// check if the IndexerCluster is ready for version upgrade
+		continueReconcile, err := UpgradePathValidation(ctx, client, cr, cr.Spec.CommonSplunkSpec, &mgr)
+		if err != nil || !continueReconcile {
+			return result, err
+		}
 	}
 
 	// check if version upgrade is set
@@ -628,8 +634,8 @@ func ApplyIdxcSecret(ctx context.Context, mgr *indexerClusterPodManager, replica
 	// If namespace scoped secret revision is the same ignore
 	if len(mgr.cr.Status.NamespaceSecretResourceVersion) == 0 {
 		// First time, set resource version in CR
-		scopedLog.Info("Setting CrStatusNamespaceSecretResourceVersion for the first time")
 		mgr.cr.Status.NamespaceSecretResourceVersion = namespaceSecret.ObjectMeta.ResourceVersion
+		scopedLog.Info("Setting CrStatusNamespaceSecretResourceVersion for the first time")
 		return nil
 	} else if mgr.cr.Status.NamespaceSecretResourceVersion == namespaceSecret.ObjectMeta.ResourceVersion {
 		// If resource version hasn't changed don't return
@@ -777,6 +783,7 @@ func (mgr *indexerClusterPodManager) Update(ctx context.Context, c splcommon.Con
 		}
 	} else {
 		mgr.log.Info("Cluster Manager is not ready yet", "reason ", err)
+		return enterpriseApi.PhaseError, err
 	}
 
 	// Get the podExecClient with empty targetPodName.
diff --git a/pkg/splunk/enterprise/monitoringconsole.go b/pkg/splunk/enterprise/monitoringconsole.go
index 83af4a482..a3d3c68ce 100644
--- a/pkg/splunk/enterprise/monitoringconsole.go
+++ b/pkg/splunk/enterprise/monitoringconsole.go
@@ -141,10 +141,13 @@ func ApplyMonitoringConsole(ctx context.Context, client splcommon.ControllerClie
 		return result, err
 	}
 
-	// check if the Monitoring Console is ready for version upgrade, if required
-	continueReconcile, err := UpgradePathValidation(ctx, client, cr, cr.Spec.CommonSplunkSpec, nil)
-	if err != nil || !continueReconcile {
-		return result, err
+	// CSPL-3060 - If statefulSet is not created, avoid upgrade path validation
+	if !statefulSet.CreationTimestamp.IsZero() {
+		// check if the Monitoring Console is ready for version upgrade, if required
+		continueReconcile, err := UpgradePathValidation(ctx, client, cr, cr.Spec.CommonSplunkSpec, nil)
+		if err != nil || !continueReconcile {
+			return result, err
+		}
 	}
 
 	mgr := splctrl.DefaultStatefulSetPodManager{}
diff --git a/pkg/splunk/enterprise/monitoringconsole_test.go b/pkg/splunk/enterprise/monitoringconsole_test.go
index 7e24cb5e1..2ca2436b1 100644
--- a/pkg/splunk/enterprise/monitoringconsole_test.go
+++ b/pkg/splunk/enterprise/monitoringconsole_test.go
@@ -98,11 +98,11 @@ func TestApplyMonitoringConsole(t *testing.T) {
 		"app.kubernetes.io/component":  "versionedSecrets",
 		"app.kubernetes.io/managed-by": "splunk-operator",
 	}
+
 	listOpts := []client.ListOption{
 		client.InNamespace("test"),
 		client.MatchingLabels(labels),
 	}
-
 	listOpts2 := []client.ListOption{
 		client.InNamespace("test"),
 	}
@@ -112,8 +112,8 @@ func TestApplyMonitoringConsole(t *testing.T) {
 		{ListOpts: listOpts2},
 	}
 
-	createCalls := map[string][]spltest.MockFuncCall{"Get": funcCalls, "Create": {funcCalls[0], funcCalls[3], funcCalls[4], funcCalls[7], funcCalls[9], funcCalls[10], funcCalls[5]}, "Update": {funcCalls[0], funcCalls[10]}, "List": {listmockCall[0], listmockCall[1], listmockCall[1], listmockCall[1], listmockCall[1], listmockCall[1]}}
-	updateCalls := map[string][]spltest.MockFuncCall{"Get": updateFuncCalls, "Update": {updateFuncCalls[4]}, "List": {listmockCall[0], listmockCall[1], listmockCall[1], listmockCall[1], listmockCall[1], listmockCall[1]}}
+	createCalls := map[string][]spltest.MockFuncCall{"Get": funcCalls, "Create": {funcCalls[0], funcCalls[3], funcCalls[4], funcCalls[7], funcCalls[9], funcCalls[10], funcCalls[5]}, "Update": {funcCalls[0], funcCalls[10]}, "List": {listmockCall[0]}}
+	updateCalls := map[string][]spltest.MockFuncCall{"Get": updateFuncCalls, "Update": {updateFuncCalls[4]}, "List": {listmockCall[0]}}
 
 	current := enterpriseApi.MonitoringConsole{
 		TypeMeta: metav1.TypeMeta{
diff --git a/pkg/splunk/enterprise/searchheadcluster.go b/pkg/splunk/enterprise/searchheadcluster.go
index 6cbef29f3..26a0412a1 100644
--- a/pkg/splunk/enterprise/searchheadcluster.go
+++ b/pkg/splunk/enterprise/searchheadcluster.go
@@ -166,9 +166,12 @@ func ApplySearchHeadCluster(ctx context.Context, client splcommon.ControllerClie
 		return result, err
 	}
 
-	continueReconcile, err := UpgradePathValidation(ctx, client, cr, cr.Spec.CommonSplunkSpec, nil)
-	if err != nil || !continueReconcile {
-		return result, err
+	// CSPL-3060 - If statefulSet is not created, avoid upgrade path validation
+	if !statefulSet.CreationTimestamp.IsZero() {
+		continueReconcile, err := UpgradePathValidation(ctx, client, cr, cr.Spec.CommonSplunkSpec, nil)
+		if err != nil || !continueReconcile {
+			return result, err
+		}
 	}
 
 	deployerManager := splctrl.DefaultStatefulSetPodManager{}
diff --git a/pkg/splunk/enterprise/searchheadcluster_test.go b/pkg/splunk/enterprise/searchheadcluster_test.go
index 6bc37c2c8..0ce729aa3 100644
--- a/pkg/splunk/enterprise/searchheadcluster_test.go
+++ b/pkg/splunk/enterprise/searchheadcluster_test.go
@@ -81,7 +81,6 @@ func TestApplySearchHeadCluster(t *testing.T) {
 		{MetaName: "*v1.Secret-test-splunk-test-secret"},
 		{MetaName: "*v1.Secret-test-splunk-stack1-deployer-secret-v1"},
 
-		{MetaName: "*v1.StatefulSet-test-splunk-stack1-search-head"},
 		{MetaName: "*v1.StatefulSet-test-splunk-stack1-deployer"},
 		{MetaName: "*v1.StatefulSet-test-splunk-stack1-search-head"},
 
@@ -108,7 +107,7 @@ func TestApplySearchHeadCluster(t *testing.T) {
 		{MetaName: "*v1.ConfigMap-test-splunk-test-probe-configmap"},
 		{MetaName: "*v1.Secret-test-splunk-test-secret"},
 		{MetaName: "*v1.Secret-test-splunk-stack1-deployer-secret-v1"},
-		{MetaName: "*v1.StatefulSet-test-splunk-stack1-search-head"},
+		//{MetaName: "*v1.StatefulSet-test-splunk-stack1-search-head"},
 		{MetaName: "*v1.StatefulSet-test-splunk-stack1-deployer"},
 		{MetaName: "*v1.StatefulSet-test-splunk-stack1-deployer"},
 		{MetaName: "*v1.StatefulSet-test-splunk-stack1-search-head"},
@@ -135,8 +134,8 @@ func TestApplySearchHeadCluster(t *testing.T) {
 	listmockCall := []spltest.MockFuncCall{
 		{ListOpts: listOpts}}
 
-	createCalls := map[string][]spltest.MockFuncCall{"Get": funcCalls, "Create": {funcCalls[0], funcCalls[3], funcCalls[4], funcCalls[5], funcCalls[8], funcCalls[10], funcCalls[12], funcCalls[16], funcCalls[17]}, "Update": {funcCalls[0]}, "List": {listmockCall[0], listmockCall[0]}}
-	updateCalls := map[string][]spltest.MockFuncCall{"Get": createFuncCalls, "Update": {createFuncCalls[5], createFuncCalls[9]}, "List": {listmockCall[0], listmockCall[0]}}
+	createCalls := map[string][]spltest.MockFuncCall{"Get": funcCalls, "Create": {funcCalls[0], funcCalls[3], funcCalls[4], funcCalls[5], funcCalls[8], funcCalls[10], funcCalls[11], funcCalls[15], funcCalls[16]}, "Update": {funcCalls[0]}, "List": {listmockCall[0], listmockCall[0]}}
+	updateCalls := map[string][]spltest.MockFuncCall{"Get": createFuncCalls, "Update": {createFuncCalls[5], createFuncCalls[11]}, "List": {listmockCall[0], listmockCall[0]}}
 	statefulSet := enterpriseApi.SearchHeadCluster{
 		TypeMeta: metav1.TypeMeta{
 			Kind: "SearchHeadCluster",