diff --git a/pkg/embeddedcluster/upgrade.go b/pkg/embeddedcluster/upgrade.go
index 796ba22f56..2868d0cc33 100644
--- a/pkg/embeddedcluster/upgrade.go
+++ b/pkg/embeddedcluster/upgrade.go
@@ -76,13 +76,16 @@ func startClusterUpgrade(
 
 	log.Printf("Starting cluster upgrade to version %s...", newcfg.Version)
 
-	// We cannot notify the upgrade started until the new install is created
+	// We cannot notify the upgrade started until the new install is available
 	if err := NotifyUpgradeStarted(ctx, license.Spec.Endpoint, newInstall, current, versionLabel); err != nil {
 		logger.Errorf("Failed to notify upgrade started: %v", err)
 	}
 
 	err = runClusterUpgrade(ctx, k8sClient, newInstall, registrySettings, license, versionLabel)
 	if err != nil {
+		if err := NotifyUpgradeFailed(ctx, license.Spec.Endpoint, newInstall, current, err.Error()); err != nil {
+			logger.Errorf("Failed to notify upgrade failed: %v", err)
+		}
 		return fmt.Errorf("run cluster upgrade: %w", err)
 	}
 
diff --git a/pkg/operator/operator.go b/pkg/operator/operator.go
index e5def5d443..2e750b5ef8 100644
--- a/pkg/operator/operator.go
+++ b/pkg/operator/operator.go
@@ -1052,14 +1052,14 @@ func (o *Operator) waitForClusterUpgrade(appID string, appSlug string) error {
 		}
 		if embeddedcluster.InstallationSucceeded(ctx, ins) {
 			logger.Infof("Cluster upgrade succeeded")
-			if err := o.notifyUpgradeSucceeded(ctx, kbClient, ins, appID); err != nil {
+			if err := o.notifyClusterUpgradeSucceeded(ctx, kbClient, ins, appID); err != nil {
 				logger.Errorf("Failed to notify upgrade succeeded: %v", err)
 			}
 			return nil
 		}
 		if embeddedcluster.InstallationFailed(ctx, ins) {
 			logger.Infof("Cluster upgrade failed")
-			if err := o.notifyUpgradeFailed(ctx, kbClient, ins, appID); err != nil {
+			if err := o.notifyClusterUpgradeFailed(ctx, kbClient, ins, appID); err != nil {
 				logger.Errorf("Failed to notify upgrade failed: %v", err)
 			}
 			if err := upgradeservicetask.SetStatusUpgradeFailed(appSlug, ins.Status.Reason); err != nil {
@@ -1074,8 +1074,8 @@ func (o *Operator) waitForClusterUpgrade(appID string, appSlug string) error {
 	}
 }
 
-// notifyUpgradeSucceeded sends a metrics event to the api that the upgrade succeeded.
-func (o *Operator) notifyUpgradeSucceeded(ctx context.Context, kbClient kbclient.Client, ins *embeddedclusterv1beta1.Installation, appID string) error {
+// notifyClusterUpgradeSucceeded sends a metrics event to the api that the upgrade succeeded.
+func (o *Operator) notifyClusterUpgradeSucceeded(ctx context.Context, kbClient kbclient.Client, ins *embeddedclusterv1beta1.Installation, appID string) error {
 	if ins.Spec.AirGap {
 		return nil
 	}
@@ -1099,8 +1099,8 @@ func (o *Operator) notifyUpgradeSucceeded(ctx context.Context, kbClient kbclient
 	return nil
 }
 
-// notifyUpgradeFailed sends a metrics event to the api that the upgrade failed.
-func (o *Operator) notifyUpgradeFailed(ctx context.Context, kbClient kbclient.Client, ins *embeddedclusterv1beta1.Installation, appID string) error {
+// notifyClusterUpgradeFailed sends a metrics event to the api that the upgrade failed.
+func (o *Operator) notifyClusterUpgradeFailed(ctx context.Context, kbClient kbclient.Client, ins *embeddedclusterv1beta1.Installation, appID string) error {
 	if ins.Spec.AirGap {
 		return nil
 	}
diff --git a/pkg/upgradeservice/deploy/deploy.go b/pkg/upgradeservice/deploy/deploy.go
index 3bd84c42d7..6ca7b3d7da 100644
--- a/pkg/upgradeservice/deploy/deploy.go
+++ b/pkg/upgradeservice/deploy/deploy.go
@@ -120,9 +120,6 @@ func Deploy(opts DeployOptions) error {
 	go func() (finalError error) {
 		defer func() {
 			if finalError != nil {
-				if err := notifyUpgradeFailed(context.Background(), kbClient, opts, finalError.Error()); err != nil {
-					logger.Errorf("Failed to notify upgrade failed: %v", err)
-				}
 				if err := task.SetStatusUpgradeFailed(opts.Params.AppSlug, finalError.Error()); err != nil {
 					logger.Error(errors.Wrap(err, "failed to set task status to upgrade failed"))
 				}
@@ -145,6 +142,9 @@ func Deploy(opts DeployOptions) error {
 			tgzArchiveKey:                tgzArchiveKey,
 			requiresClusterUpgrade:       true,
 		}); err != nil {
+			if err := notifyClusterUpgradeFailed(context.Background(), kbClient, opts, finalError.Error()); err != nil {
+				logger.Errorf("Failed to notify upgrade failed: %v", err)
+			}
 			return errors.Wrap(err, "failed to create deployment")
 		}
 
@@ -154,8 +154,8 @@ func Deploy(opts DeployOptions) error {
 	return nil
 }
 
-// notifyUpgradeFailed sends a metrics event to the api that the upgrade failed.
-func notifyUpgradeFailed(ctx context.Context, kbClient kbclient.Client, opts DeployOptions, reason string) error {
+// notifyClusterUpgradeFailed sends a metrics event to the api that the upgrade failed.
+func notifyClusterUpgradeFailed(ctx context.Context, kbClient kbclient.Client, opts DeployOptions, reason string) error {
 	ins, err := embeddedcluster.GetCurrentInstallation(ctx, kbClient)
 	if err != nil {
 		return fmt.Errorf("failed to get current installation: %w", err)