diff --git a/pkg/registration/spoke/registration/creating_controller.go b/pkg/registration/spoke/registration/creating_controller.go
index 9a6c6931d..11b8fc12e 100644
--- a/pkg/registration/spoke/registration/creating_controller.go
+++ b/pkg/registration/spoke/registration/creating_controller.go
@@ -52,10 +52,11 @@ func NewManagedClusterCreatingController(
 }
 
 func (c *managedClusterCreatingController) sync(ctx context.Context, syncCtx factory.SyncContext) error {
+	logger := klog.FromContext(ctx)
 	existingCluster, err := c.hubClusterClient.ClusterV1().ManagedClusters().Get(ctx, c.clusterName, metav1.GetOptions{})
 	// ManagedCluster is only allowed created during bootstrap. After bootstrap secret expired, an unauthorized error will be got, output log at the debug level
 	if err != nil && skipUnauthorizedError(err) == nil {
-		klog.V(4).Infof("unable to get the managed cluster %q from hub: %v", c.clusterName, err)
+		logger.V(4).Info("unable to get the managed cluster from hub", "clusterName", c.clusterName, "err", err)
 		return nil
 	}
 
@@ -76,8 +77,16 @@ func (c *managedClusterCreatingController) sync(ctx context.Context, syncCtx fac
 		}
 
 		_, err = c.hubClusterClient.ClusterV1().ManagedClusters().Create(ctx, managedCluster, metav1.CreateOptions{})
-		// ManagedCluster is only allowed created during bootstrap. After bootstrap secret expired, an unauthorized error will be got, skip it
-		if skipUnauthorizedError(err) != nil {
+		if errors.IsAlreadyExists(err) {
+			logger.V(4).Info("managed cluster already exists", "clusterName", c.clusterName)
+			return nil
+		}
+
+		if err != nil {
+			// Unauthorized/Forbidden after bootstrap: skip without emitting a create event.
+			if skipUnauthorizedError(err) == nil {
+				return nil
+			}
 			return fmt.Errorf("unable to create managed cluster with name %q on hub: %w", c.clusterName, err)
 		}
 		syncCtx.Recorder().Eventf("ManagedClusterCreated", "Managed cluster %q created on hub", c.clusterName)
diff --git a/test/e2e/addon_lease_test.go b/test/e2e/addon_lease_test.go
index c7e124703..33e526d02 100644
--- a/test/e2e/addon_lease_test.go
+++ b/test/e2e/addon_lease_test.go
@@ -68,7 +68,7 @@ var _ = ginkgo.Describe("Addon Health Check", ginkgo.Label("addon-lease"), func(
 					return err
 				}
 				if !meta.IsStatusConditionTrue(found.Status.Conditions, "Available") {
-					return fmt.Errorf("condition should be available")
+					return fmt.Errorf("condition should be available, got %v", found.Status.Conditions)
 				}
 				return nil
 			}).Should(gomega.Succeed())
diff --git a/test/e2e/addonmanagement_test.go b/test/e2e/addonmanagement_test.go
index e40c1865d..413e9eb3e 100644
--- a/test/e2e/addonmanagement_test.go
+++ b/test/e2e/addonmanagement_test.go
@@ -130,7 +130,7 @@ var _ = ginkgo.Describe("Enable addon management feature gate", ginkgo.Ordered,
 		gomega.Expect(err).ToNot(gomega.HaveOccurred())
 
 		ginkgo.By(fmt.Sprintf("create the addon %v on the managed cluster namespace %v", addOnName, universalClusterName))
-		err = hub.CreateManagedClusterAddOn(universalClusterName, addOnName, "test-ns") // the install namespace will be ignored
+		err = hub.CreateManagedClusterAddOn(universalClusterName, addOnName, addonInstallNamespace)
 		if err != nil {
 			klog.Errorf("failed to create managed cluster addon %v on the managed cluster namespace %v: %v", addOnName, universalClusterName, err)
 			gomega.Expect(errors.IsAlreadyExists(err)).To(gomega.BeTrue())
diff --git a/test/framework/managedclusteraddon.go b/test/framework/managedclusteraddon.go
index cdd35ed44..991e445ab 100644
--- a/test/framework/managedclusteraddon.go
+++ b/test/framework/managedclusteraddon.go
@@ -9,6 +9,7 @@ import (
 	corev1 "k8s.io/api/core/v1"
 	"k8s.io/apimachinery/pkg/api/meta"
 	metav1 "k8s.io/apimachinery/pkg/apis/meta/v1"
+	"k8s.io/client-go/util/retry"
 
 	addonv1alpha1 "open-cluster-management.io/api/addon/v1alpha1"
 )
@@ -21,13 +22,30 @@ func (hub *Hub) CreateManagedClusterAddOn(managedClusterNamespace, addOnName, in
 				Namespace: managedClusterNamespace,
 				Name:      addOnName,
 			},
-			Spec: addonv1alpha1.ManagedClusterAddOnSpec{
-				InstallNamespace: installNamespace,
-			},
+			Spec: addonv1alpha1.ManagedClusterAddOnSpec{},
 		},
 		metav1.CreateOptions{},
 	)
-	return err
+
+	if err != nil {
+		return err
+	}
+
+	return retry.RetryOnConflict(retry.DefaultBackoff, func() error {
+		addOn, err := hub.AddonClient.AddonV1alpha1().ManagedClusterAddOns(managedClusterNamespace).Get(
+			context.TODO(), addOnName, metav1.GetOptions{})
+		if err != nil {
+			return err
+		}
+
+		if addOn.Status.Namespace == installNamespace {
+			return nil
+		}
+		addOn.Status.Namespace = installNamespace
+		_, err = hub.AddonClient.AddonV1alpha1().ManagedClusterAddOns(managedClusterNamespace).UpdateStatus(
+			context.TODO(), addOn, metav1.UpdateOptions{})
+		return err
+	})
 }
 
 func (hub *Hub) CreateManagedClusterAddOnLease(addOnInstallNamespace, addOnName string) error {