diff --git a/images/virtualization-artifact/pkg/controller/vd/internal/datasource_ready.go b/images/virtualization-artifact/pkg/controller/vd/internal/datasource_ready.go
index 00c73d1155..19d85f47e3 100644
--- a/images/virtualization-artifact/pkg/controller/vd/internal/datasource_ready.go
+++ b/images/virtualization-artifact/pkg/controller/vd/internal/datasource_ready.go
@@ -53,6 +53,13 @@ func (h DatasourceReadyHandler) Handle(ctx context.Context, vd *v1alpha2.Virtual
 		return reconcile.Result{}, nil
 	}
 
+	// Data is already on PV or provisioning is done; DataSource is not needed for export, migration, or when disk is ready/lost.
+	if vd.Status.Phase == v1alpha2.DiskExporting || vd.Status.Phase == v1alpha2.DiskMigrating ||
+		vd.Status.Phase == v1alpha2.DiskReady || vd.Status.Phase == v1alpha2.DiskLost {
+		conditions.RemoveCondition(vdcondition.DatasourceReadyType, &vd.Status.Conditions)
+		return reconcile.Result{}, nil
+	}
+
 	readyCondition, _ := conditions.GetCondition(vdcondition.ReadyType, vd.Status.Conditions)
 	if source.IsDiskProvisioningFinished(readyCondition) {
 		conditions.RemoveCondition(vdcondition.DatasourceReadyType, &vd.Status.Conditions)
diff --git a/images/virtualization-artifact/pkg/controller/vd/internal/life_cycle.go b/images/virtualization-artifact/pkg/controller/vd/internal/life_cycle.go
index b53e426b50..3f8c61473d 100644
--- a/images/virtualization-artifact/pkg/controller/vd/internal/life_cycle.go
+++ b/images/virtualization-artifact/pkg/controller/vd/internal/life_cycle.go
@@ -98,7 +98,11 @@ func (h LifeCycleHandler) Handle(ctx context.Context, vd *v1alpha2.VirtualDisk)
 
 	cb := conditions.NewConditionBuilder(vdcondition.ReadyType).Generation(vd.Generation)
 
-	if !source.IsDiskProvisioningFinished(readyCondition) {
+	// DataSource is not required when data is already on PV (exporting or migrating).
+	requireDatasourceReady := !source.IsDiskProvisioningFinished(readyCondition) &&
+		vd.Status.Phase != v1alpha2.DiskExporting && vd.Status.Phase != v1alpha2.DiskMigrating
+
+	if requireDatasourceReady {
 		ds, _ := conditions.GetCondition(vdcondition.DatasourceReadyType, vd.Status.Conditions)
 
 		if ds.Status != metav1.ConditionTrue || !conditions.IsLastUpdated(ds, vd) {