diff --git a/lifecycle-operator/controllers/common/phasehandler.go b/lifecycle-operator/controllers/common/phasehandler.go
index 3ca5ce5c46..50460ca38d 100644
--- a/lifecycle-operator/controllers/common/phasehandler.go
+++ b/lifecycle-operator/controllers/common/phasehandler.go
@@ -94,7 +94,8 @@ func (r PhaseHandler) handleCompletedPhase(state apicommon.KeptnState, piWrapper
 		return &PhaseResult{Continue: false, Result: ctrl.Result{}}, nil
 	}
 
-	piWrapper.SetState(apicommon.StateSucceeded)
+	// end the current phase do not set the overall state of the whole object to Succeeded here, as this can cause
+	// premature progression of reconcile objects that depend on the completion of another
 	spanPhaseTrace.AddEvent(phase.LongName + " has succeeded")
 	spanPhaseTrace.SetStatus(codes.Ok, "Succeeded")
 	spanPhaseTrace.End()
diff --git a/lifecycle-operator/controllers/common/phasehandler_test.go b/lifecycle-operator/controllers/common/phasehandler_test.go
index afcc5cdc51..51bc1d732d 100644
--- a/lifecycle-operator/controllers/common/phasehandler_test.go
+++ b/lifecycle-operator/controllers/common/phasehandler_test.go
@@ -152,7 +152,7 @@ func TestPhaseHandler(t *testing.T) {
 			wantErr: nil,
 			wantObject: &v1alpha3.KeptnAppVersion{
 				Status: v1alpha3.KeptnAppVersionStatus{
-					Status:       apicommon.StateSucceeded,
+					Status:       apicommon.StatePending,
 					CurrentPhase: apicommon.PhaseAppDeployment.ShortName,
 				},
 			},
diff --git a/lifecycle-operator/controllers/lifecycle/keptnappversion/controller.go b/lifecycle-operator/controllers/lifecycle/keptnappversion/controller.go
index f6e8bf063e..4402effdea 100644
--- a/lifecycle-operator/controllers/lifecycle/keptnappversion/controller.go
+++ b/lifecycle-operator/controllers/lifecycle/keptnappversion/controller.go
@@ -160,25 +160,21 @@ func (r *KeptnAppVersionReconciler) Reconcile(ctx context.Context, req ctrl.Requ
 		}
 	}
 
-	err = r.Client.Status().Update(ctx, appVersion)
-	if err != nil {
-		span.SetStatus(codes.Error, err.Error())
-		return ctrl.Result{Requeue: true}, err
-	}
 	// AppVersion is completed at this place
-
-	return r.finishKeptnAppVersionReconcile(ctx, appVersion, spanAppTrace)
+	return r.finishKeptnAppVersionReconcile(ctx, appVersion, spanAppTrace, span)
 }
 
-func (r *KeptnAppVersionReconciler) finishKeptnAppVersionReconcile(ctx context.Context, appVersion *klcv1alpha3.KeptnAppVersion, spanAppTrace trace.Span) (ctrl.Result, error) {
+func (r *KeptnAppVersionReconciler) finishKeptnAppVersionReconcile(ctx context.Context, appVersion *klcv1alpha3.KeptnAppVersion, spanAppTrace, span trace.Span) (ctrl.Result, error) {
 
 	if !appVersion.IsEndTimeSet() {
 		appVersion.Status.CurrentPhase = apicommon.PhaseCompleted.ShortName
+		appVersion.Status.Status = apicommon.StateSucceeded
 		appVersion.SetEndTime()
 	}
 
 	err := r.Client.Status().Update(ctx, appVersion)
 	if err != nil {
+		span.SetStatus(codes.Error, err.Error())
 		return ctrl.Result{Requeue: true}, err
 	}