diff --git a/pkg/controller/osimagestream/osimagestream_controller.go b/pkg/controller/osimagestream/osimagestream_controller.go
index 2d9bb4e736..1c31415f8e 100644
--- a/pkg/controller/osimagestream/osimagestream_controller.go
+++ b/pkg/controller/osimagestream/osimagestream_controller.go
@@ -47,7 +47,7 @@ type Controller struct {
 	eventRecorder record.EventRecorder
 	fgHandler     ctrlcommon.FeatureGatesHandler
 
-	syncHandler func(key string) error
+	syncHandler func(ctx context.Context, key string) error
 
 	osImageStreamLister       mcfglistersv1.OSImageStreamLister
 	osImageStreamListerSynced cache.InformerSynced
@@ -169,7 +169,7 @@ func (ctrl *Controller) Run(ctx context.Context, workers int) {
 	klog.Info("Starting MachineConfigController-OSImageStreamController")
 	defer klog.Info("Shutting down MachineConfigController-OSImageStreamController")
 
-	go wait.Until(ctrl.worker, time.Second, ctx.Done())
+	go wait.Until(func() { ctrl.worker(ctx) }, time.Second, ctx.Done())
 
 	// Run once at start at least to make sure the OSImageStream is created when creating the cluster
 	ctrl.enqueue()
@@ -192,19 +192,19 @@ func (ctrl *Controller) EnsureOSImageStream(ctx context.Context) error {
 	}
 }
 
-func (ctrl *Controller) worker() {
-	for ctrl.processNextWorkItem() {
+func (ctrl *Controller) worker(ctx context.Context) {
+	for ctrl.processNextWorkItem(ctx) {
 	}
 }
 
-func (ctrl *Controller) processNextWorkItem() bool {
+func (ctrl *Controller) processNextWorkItem(ctx context.Context) bool {
 	key, quit := ctrl.queue.Get()
 	if quit {
 		return false
 	}
 	defer ctrl.queue.Done(key)
 
-	err := ctrl.syncHandler(key)
+	err := ctrl.syncHandler(ctx, key)
 	ctrl.handleErr(err, key)
 
 	return true
@@ -269,7 +269,7 @@ func (ctrl *Controller) updateOSImageStream(old, cur interface{}) {
 	ctrl.enqueue()
 }
 
-func (ctrl *Controller) syncOSImageStream(key string) error {
+func (ctrl *Controller) syncOSImageStream(ctx context.Context, key string) error {
 	startTime := time.Now()
 	klog.V(4).Infof("Started syncing OSImageStream %q (%v)", key, startTime)
 	defer func() {
@@ -286,21 +286,26 @@ func (ctrl *Controller) syncOSImageStream(key string) error {
 		return err
 	}
 
+	var current *mcfgv1.OSImageStream
 	if rebuildRequired {
-		if err := ctrl.buildOSImageStream(context.TODO(), existing); err != nil {
+		built, err := ctrl.buildOSImageStream(ctx, existing)
+		if err != nil {
 			return err
 		}
+		current = built
 	} else if existing != nil {
-		if err := ctrl.handleOSImageStreamUpdate(context.TODO(), existing); err != nil {
+		updated, err := ctrl.handleOSImageStreamUpdate(ctx, existing)
+		if err != nil {
 			return err
 		}
+		current = updated
 	}
 
 	ctrl.initialSyncOnce.Do(func() {
-		if osis, err := ctrl.getExistingOSImageStream(); err == nil && osis != nil {
+		if current != nil {
 			klog.Infof("OSImageStream synced successfully. Available streams: %s. Default stream: %s",
-				osimagestream.GetStreamSetsNames(osis.Status.AvailableStreams),
-				osis.Status.DefaultStream)
+				osimagestream.GetStreamSetsNames(current.Status.AvailableStreams),
+				current.Status.DefaultStream)
 		}
 		ctrl.initialSyncDone <- nil
 	})
@@ -353,16 +358,16 @@ func (ctrl *Controller) getExistingOSImageStream() (*mcfgv1.OSImageStream, error
 	return osis, nil
 }
 
-func (ctrl *Controller) buildOSImageStream(ctx context.Context, existing *mcfgv1.OSImageStream) error {
+func (ctrl *Controller) buildOSImageStream(ctx context.Context, existing *mcfgv1.OSImageStream) (*mcfgv1.OSImageStream, error) {
 	klog.Info("Starting building of the OSImageStream instance")
 
 	clusterVersion, err := osimagestream.GetClusterVersion(ctrl.clusterVersionLister)
 	if err != nil {
-		return fmt.Errorf("getting cluster version for OSImageStream inspection: %w", err)
+		return nil, fmt.Errorf("getting cluster version for OSImageStream inspection: %w", err)
 	}
 	image, err := osimagestream.GetReleasePayloadImage(clusterVersion)
 	if err != nil {
-		return fmt.Errorf("getting the Release Image digest from the ClusterVersion for OSImageStream sync: %w", err)
+		return nil, fmt.Errorf("getting the Release Image digest from the ClusterVersion for OSImageStream sync: %w", err)
 	}
 
 	installVersion, err := osimagestream.GetInstallVersion(clusterVersion)
@@ -384,7 +389,7 @@ func (ctrl *Controller) buildOSImageStream(ctx context.Context, existing *mcfgv1
 			InstallVersion:        installVersion,
 		})
 	if err != nil {
-		return fmt.Errorf("building the OSImageStream: %w", err)
+		return nil, fmt.Errorf("building the OSImageStream: %w", err)
 	}
 
 	var updateOSImageStream *mcfgv1.OSImageStream
@@ -392,7 +397,7 @@ func (ctrl *Controller) buildOSImageStream(ctx context.Context, existing *mcfgv1
 		klog.V(4).Info("Creating OSImageStream singleton instance")
 		updateOSImageStream, err = ctrl.mcfgClient.MachineconfigurationV1().OSImageStreams().Create(ctx, osImageStream, metav1.CreateOptions{})
 		if err != nil {
-			return fmt.Errorf("error creating the OSImageStream: %w", err)
+			return nil, fmt.Errorf("error creating the OSImageStream: %w", err)
 		}
 		klog.Infof("Created OSImageStream with %d available streams, default stream: %s",
 			len(osImageStream.Status.AvailableStreams), osImageStream.Status.DefaultStream)
@@ -406,7 +411,7 @@ func (ctrl *Controller) buildOSImageStream(ctx context.Context, existing *mcfgv1
 		maps.Copy(desired.Annotations, osImageStream.Annotations)
 		updateOSImageStream, err = ctrl.mcfgClient.MachineconfigurationV1().OSImageStreams().Update(ctx, desired, metav1.UpdateOptions{})
 		if err != nil {
-			return fmt.Errorf("error updating the OSImageStream: %w", err)
+			return nil, fmt.Errorf("error updating the OSImageStream: %w", err)
 		}
 	}
 
@@ -415,36 +420,38 @@ func (ctrl *Controller) buildOSImageStream(ctx context.Context, existing *mcfgv1
 		MachineconfigurationV1().
 		OSImageStreams().
 		UpdateStatus(ctx, updateOSImageStream, metav1.UpdateOptions{}); err != nil {
-		return fmt.Errorf("error updating the OSImageStream status: %w", err)
+		return nil, fmt.Errorf("error updating the OSImageStream status: %w", err)
 	}
 
-	return nil
+	return updateOSImageStream, nil
 }
 
-func (ctrl *Controller) handleOSImageStreamUpdate(ctx context.Context, existing *mcfgv1.OSImageStream) error {
+func (ctrl *Controller) handleOSImageStreamUpdate(ctx context.Context, existing *mcfgv1.OSImageStream) (*mcfgv1.OSImageStream, error) {
 	requestedDefault := osimagestream.GetOSImageStreamSpecDefault(existing)
 	if requestedDefault == "" {
-		return nil
+		return existing, nil
 	}
 
 	currentDefault := existing.Status.DefaultStream
 	if currentDefault != requestedDefault {
 		if _, err := osimagestream.GetOSImageStreamSetByName(existing, requestedDefault); err != nil {
-			return fmt.Errorf("syncing default OSImageStream with OSImageStream %s: %w", requestedDefault, err)
+			return nil, fmt.Errorf("syncing default OSImageStream with OSImageStream %s: %w", requestedDefault, err)
 		}
 
 		osis := existing.DeepCopy()
 		osis.Status.DefaultStream = requestedDefault
-		if _, err := ctrl.mcfgClient.
+		updated, err := ctrl.mcfgClient.
 			MachineconfigurationV1().
 			OSImageStreams().
-			UpdateStatus(ctx, osis, metav1.UpdateOptions{}); err != nil {
-			return fmt.Errorf("updating the default OSImageStream status: %w", err)
+			UpdateStatus(ctx, osis, metav1.UpdateOptions{})
+		if err != nil {
+			return nil, fmt.Errorf("updating the default OSImageStream status: %w", err)
 		}
 
 		klog.Infof("OSImageStream default has changed from %s to %s", currentDefault, requestedDefault)
+		return updated, nil
 	}
-	return nil
+	return existing, nil
 }
 
 // osImageStreamRequiresRebuild checks if the OSImageStream needs to be created or updated.
@@ -466,7 +473,6 @@ func osImageStreamRequiresRebuild(osImageStream *mcfgv1.OSImageStream, releaseIm
 	return !ok || storedVersion != version.Hash
 }
 
-
 // Retain implements CacheEvicter — it keeps cached digests referenced by the
 // OSImage and OSExtensionsImage of each available stream in the OSImageStream.
 func (ctrl *Controller) Retain(digests []string) []string {