diff --git a/go.mod b/go.mod
index 3661248..afdefa9 100644
--- a/go.mod
+++ b/go.mod
@@ -1,6 +1,6 @@
 module github.com/project-codeflare/appwrapper
 
-go 1.22.4
+go 1.22.2
 
 require (
 	github.com/distribution/reference v0.5.0
@@ -21,6 +21,9 @@ require (
 	sigs.k8s.io/yaml v1.4.0
 )
 
+// On the CF release branch, we want to use ODH fork of Kueue
+replace sigs.k8s.io/kueue v0.8.3 => github.com/opendatahub-io/kueue v0.8.3
+
 require (
 	github.com/beorn7/perks v1.0.1 // indirect
 	github.com/blang/semver/v4 v4.0.0 // indirect
diff --git a/go.sum b/go.sum
index 8f34f0d..1bdfbe1 100644
--- a/go.sum
+++ b/go.sum
@@ -136,6 +136,8 @@ github.com/open-policy-agent/frameworks/constraint v0.0.0-20230822235116-f0b62fe
 github.com/open-policy-agent/frameworks/constraint v0.0.0-20230822235116-f0b62fe1e4c4/go.mod h1:54/KzLMvA5ndBVpm7B1OjLeV0cUtTLTz2bZ2OtydLpU=
 github.com/opencontainers/go-digest v1.0.0 h1:apOUWs51W5PlhuyGyz9FCeeBIOUDA/6nW8Oi/yOhh5U=
 github.com/opencontainers/go-digest v1.0.0/go.mod h1:0JzlMkj0TRzQZfJkVvzbP0HBR3IKzErnv2BNG4W4MAM=
+github.com/opendatahub-io/kueue v0.8.3 h1:MLkHCmIrQR1KM1IcPiGuoEAT3Y+ZTs7493sMkmSUMow=
+github.com/opendatahub-io/kueue v0.8.3/go.mod h1:jzRyUhAXHIpEPjt4pMx79t/Cg1g29GlNZY6wiLJE2YI=
 github.com/pkg/errors v0.9.1 h1:FEBLx1zS214owpjy7qsBeixbURkuhQAwrK5UwLGTwt4=
 github.com/pkg/errors v0.9.1/go.mod h1:bwawxfHBFNV+L2hUp1rHADufV3IMtnDRdf1r5NINEl0=
 github.com/pmezard/go-difflib v1.0.0/go.mod h1:iKH77koFhYxTK1pcRnkKkqfTogsbg7gZNVY4sRDYZ/4=
@@ -320,8 +322,6 @@ sigs.k8s.io/jobset v0.5.2 h1:276q5Pi/ErLYj+GQ0ydEXR6tx3LwBhEzHLQv+k8bYF4=
 sigs.k8s.io/jobset v0.5.2/go.mod h1:Vg99rj/6OoGvy1uvywGEHOcVLCWWJYkJtisKqdWzcFw=
 sigs.k8s.io/json v0.0.0-20221116044647-bc3834ca7abd h1:EDPBXCAspyGV4jQlpZSudPeMmr1bNJefnuqLsRAsHZo=
 sigs.k8s.io/json v0.0.0-20221116044647-bc3834ca7abd/go.mod h1:B8JuhiUyNFVKdsE8h686QcCxMaH6HrOAZj4vswFpcB0=
-sigs.k8s.io/kueue v0.8.3 h1:H4ZUSWYWnbnUrchunkaeubNVbSEhO8FhyxVlI+IsNLA=
-sigs.k8s.io/kueue v0.8.3/go.mod h1:JO87rmNX7d71ZQvCX+TS5H5g1NtSWHDaXXEzbJi6Muk=
 sigs.k8s.io/kustomize/api v0.17.2 h1:E7/Fjk7V5fboiuijoZHgs4aHuexi5Y2loXlVOAVAG5g=
 sigs.k8s.io/kustomize/api v0.17.2/go.mod h1:UWTz9Ct+MvoeQsHcJ5e+vziRRkwimm3HytpZgIYqye0=
 sigs.k8s.io/kustomize/kustomize/v5 v5.3.0 h1:OUKaQwArd1udTz3ykibOjaUwdfly6FnkQiDSSft6+Fg=
diff --git a/internal/controller/appwrapper/appwrapper_controller.go b/internal/controller/appwrapper/appwrapper_controller.go
index 2a91850..2f57e96 100644
--- a/internal/controller/appwrapper/appwrapper_controller.go
+++ b/internal/controller/appwrapper/appwrapper_controller.go
@@ -266,21 +266,26 @@ func (r *AppWrapperReconciler) Reconcile(ctx context.Context, req ctrl.Request)
 		}
 
 		// Detect externally deleted components and transition to Failed with no GracePeriod or retry
-		detailMsg := fmt.Sprintf("Only found %v deployed components, but was expecting %v", compStatus.deployed, compStatus.expected)
 		if compStatus.deployed != compStatus.expected {
-			meta.SetStatusCondition(&aw.Status.Conditions, metav1.Condition{
-				Type:    string(workloadv1beta2.Unhealthy),
-				Status:  metav1.ConditionTrue,
-				Reason:  "MissingComponent",
-				Message: detailMsg,
-			})
-			r.Recorder.Event(aw, v1.EventTypeNormal, string(workloadv1beta2.Unhealthy), "MissingComponent: "+detailMsg)
-			return ctrl.Result{}, r.transitionToPhase(ctx, orig, aw, workloadv1beta2.AppWrapperFailed)
+			// There may be a lag before created resources become visible in the cache; don't react too quickly.
+			whenDeployed := meta.FindStatusCondition(aw.Status.Conditions, string(workloadv1beta2.ResourcesDeployed)).LastTransitionTime
+			graceDuration := r.admissionGraceDuration(ctx, aw)
+			if time.Now().After(whenDeployed.Add(graceDuration)) {
+				detailMsg := fmt.Sprintf("Only found %v deployed components, but was expecting %v", compStatus.deployed, compStatus.expected)
+				meta.SetStatusCondition(&aw.Status.Conditions, metav1.Condition{
+					Type:    string(workloadv1beta2.Unhealthy),
+					Status:  metav1.ConditionTrue,
+					Reason:  "MissingComponent",
+					Message: detailMsg,
+				})
+				r.Recorder.Event(aw, v1.EventTypeNormal, string(workloadv1beta2.Unhealthy), "MissingComponent: "+detailMsg)
+				return ctrl.Result{}, r.transitionToPhase(ctx, orig, aw, workloadv1beta2.AppWrapperFailed)
+			}
 		}
 
 		// If a component's controller has put it into a failed state, we do not need
 		// to allow a grace period.  The situation will not self-correct.
-		detailMsg = fmt.Sprintf("Found %v failed components", compStatus.failed)
+		detailMsg := fmt.Sprintf("Found %v failed components", compStatus.failed)
 		if compStatus.failed > 0 {
 			meta.SetStatusCondition(&aw.Status.Conditions, metav1.Condition{
 				Type:    string(workloadv1beta2.Unhealthy),
diff --git a/test/e2e/appwrapper_test.go b/test/e2e/appwrapper_test.go
index 362f507..6b808a4 100644
--- a/test/e2e/appwrapper_test.go
+++ b/test/e2e/appwrapper_test.go
@@ -297,8 +297,13 @@ var _ = Describe("AppWrapper E2E Test", func() {
 			Expect(aw.Status.Retries).Should(Equal(int32(2)))
 		})
 
-		It("Deleting a Running Component yields a failed AppWrapper", func() {
-			aw := createAppWrapper(ctx, pytorchjob(2, 500))
+		It("Deleting a Running Component yields a failed AppWrapper", Label("slow"), func() {
+			aw := toAppWrapper(pytorchjob(2, 500))
+			if aw.Annotations == nil {
+				aw.Annotations = make(map[string]string)
+			}
+			aw.Annotations[workloadv1beta2.AdmissionGracePeriodDurationAnnotation] = "5s"
+			Expect(getClient(ctx).Create(ctx, aw)).To(Succeed())
 			appwrappers = append(appwrappers, aw)
 			Eventually(AppWrapperPhase(ctx, aw), 60*time.Second).Should(Equal(workloadv1beta2.AppWrapperRunning))
 			aw = getAppWrapper(ctx, types.NamespacedName{Name: aw.Name, Namespace: aw.Namespace})