diff --git a/pkg/condition/condition.go b/pkg/condition/condition.go
index e903dee..244b79f 100644
--- a/pkg/condition/condition.go
+++ b/pkg/condition/condition.go
@@ -395,6 +395,21 @@ func WithTerminalCondition(
 	return ko
 }
 
+// WithRecoverableCondition returns a new AWSResource with the
+// ConditionTypeRecoverable set based on the err parameter
+func WithRecoverableCondition(
+	resource acktypes.AWSResource,
+	err error,
+) acktypes.AWSResource {
+	ko := resource.DeepCopy()
+
+	if err != nil {
+		errString := err.Error()
+		SetRecoverable(ko, corev1.ConditionTrue, &errString, nil)
+	}
+	return ko
+}
+
 // LateInitializationInProgress return true if ConditionTypeLateInitialized has "False" status
 // False status means that resource has LateInitializationConfig but has not been completely
 // late initialized yet.
diff --git a/pkg/runtime/reconciler.go b/pkg/runtime/reconciler.go
index 1e2d284..1d0d1b1 100644
--- a/pkg/runtime/reconciler.go
+++ b/pkg/runtime/reconciler.go
@@ -662,10 +662,10 @@ func (r *resourceReconciler) Sync(
 			return latest, err
 		}
 		if adoptionPolicy == AdoptionPolicy_Adopt || isAdopted {
-			return nil, ackerr.AdoptedResourceNotFound
+			return ackcondition.WithRecoverableCondition(desired, ackerr.AdoptedResourceNotFound), ackerr.AdoptedResourceNotFound
 		}
 		if isReadOnly {
-			return nil, ackerr.ReadOnlyResourceNotFound
+			return ackcondition.WithRecoverableCondition(desired, ackerr.ReadOnlyResourceNotFound), ackerr.ReadOnlyResourceNotFound
 		}
 		if latest, err = r.createResource(ctx, rm, resolved); err != nil {
 			return latest, err