diff --git a/exp/api/v1beta2/conditions_consts.go b/exp/api/v1beta2/conditions_consts.go
index 45e8bf3923..2d052fae53 100644
--- a/exp/api/v1beta2/conditions_consts.go
+++ b/exp/api/v1beta2/conditions_consts.go
@@ -108,7 +108,11 @@ const (
 	RosaMachinePoolReadyCondition clusterv1.ConditionType = "RosaMchinePoolReady"
 	// RosaMachinePoolUpgradingCondition condition reports whether ROSAMachinePool is upgrading or not.
 	RosaMachinePoolUpgradingCondition clusterv1.ConditionType = "RosaMchinePoolUpgrading"
+
 	// WaitingForRosaControlPlaneReason used when the machine pool is waiting for
 	// ROSA control plane infrastructure to be ready before proceeding.
 	WaitingForRosaControlPlaneReason = "WaitingForRosaControlPlane"
+
+	// RosaMachinePoolReconciliationFailedReason used to report failures while reconciling ROSAMachinePool.
+	RosaMachinePoolReconciliationFailedReason = "ReconciliationFailed"
 )
diff --git a/exp/controllers/rosamachinepool_controller.go b/exp/controllers/rosamachinepool_controller.go
index 8d1936c309..e145b50ee3 100644
--- a/exp/controllers/rosamachinepool_controller.go
+++ b/exp/controllers/rosamachinepool_controller.go
@@ -272,6 +272,11 @@ func (r *ROSAMachinePoolReconciler) reconcileNormal(ctx context.Context,
 
 	nodePool, err = ocmClient.CreateNodePool(machinePoolScope.ControlPlane.Status.ID, nodePoolSpec)
 	if err != nil {
+		conditions.MarkFalse(rosaMachinePool,
+			expinfrav1.RosaMachinePoolReadyCondition,
+			expinfrav1.RosaMachinePoolReconciliationFailedReason,
+			clusterv1.ConditionSeverityError,
+			"failed to create ROSAMachinePool: %s", err.Error())
 		return ctrl.Result{}, fmt.Errorf("failed to create nodepool: %w", err)
 	}
 
@@ -308,11 +313,7 @@ func (r *ROSAMachinePoolReconciler) reconcileDelete(
 
 func (r *ROSAMachinePoolReconciler) reconcileMachinePoolVersion(machinePoolScope *scope.RosaMachinePoolScope, ocmClient *ocm.Client, nodePool *cmv1.NodePool) error {
 	version := machinePoolScope.RosaMachinePool.Spec.Version
-	if version == "" {
-		version = machinePoolScope.ControlPlane.Spec.Version
-	}
-
-	if version == rosa.RawVersionID(nodePool.Version()) {
+	if version == "" || version == rosa.RawVersionID(nodePool.Version()) {
 		conditions.MarkFalse(machinePoolScope.RosaMachinePool, expinfrav1.RosaMachinePoolUpgradingCondition, "upgraded", clusterv1.ConditionSeverityInfo, "")
 		return nil
 	}
@@ -370,6 +371,11 @@ func (r *ROSAMachinePoolReconciler) updateNodePool(machinePoolScope *scope.RosaM
 
 	updatedNodePool, err := ocmClient.UpdateNodePool(machinePoolScope.ControlPlane.Status.ID, nodePoolSpec)
 	if err != nil {
+		conditions.MarkFalse(machinePoolScope.RosaMachinePool,
+			expinfrav1.RosaMachinePoolReadyCondition,
+			expinfrav1.RosaMachinePoolReconciliationFailedReason,
+			clusterv1.ConditionSeverityError,
+			"failed to update ROSAMachinePool: %s", err.Error())
 		return nil, fmt.Errorf("failed to update nodePool: %w", err)
 	}