diff --git a/pkg/controller/core.oam.dev/v1alpha2/application/apply.go b/pkg/controller/core.oam.dev/v1alpha2/application/apply.go
index 614ce06f6..f63b2724a 100644
--- a/pkg/controller/core.oam.dev/v1alpha2/application/apply.go
+++ b/pkg/controller/core.oam.dev/v1alpha2/application/apply.go
@@ -249,8 +249,10 @@ func (h *AppHandler) collectHealthStatus(wl *appfile.Workload, appRev *v1beta1.A
 		}
 		if configuration.Status.Apply.State != terraformtypes.Available {
 			status.Healthy = false
+			isHealth = false
 		} else {
 			status.Healthy = true
+			isHealth = true
 		}
 		status.Message = configuration.Status.Apply.Message
 	} else {