diff --git a/pkg/controller/status/controller.go b/pkg/controller/status/controller.go
index 34c8af51f..12194ea22 100644
--- a/pkg/controller/status/controller.go
+++ b/pkg/controller/status/controller.go
@@ -13,6 +13,7 @@ import (
 
 	"golang.org/x/time/rate"
 
+	"github.com/blang/semver/v4"
 	configv1 "github.com/openshift/api/config/v1"
 	configv1client "github.com/openshift/client-go/config/clientset/versioned/typed/config/v1"
 	"k8s.io/apimachinery/pkg/api/errors"
@@ -181,15 +182,28 @@ func (c *Controller) merge(clusterOperator *configv1.ClusterOperator) *configv1.
 	c.updateControllerConditions(cs, isInitializing)
 	c.updateControllerConditionsByStatus(cs, isInitializing)
 
-	// all status conditions from conditions to cluster operator
-	clusterOperator.Status.Conditions = cs.entries()
+	if releaseVersion := os.Getenv("RELEASE_VERSION"); len(releaseVersion) > 0 {
+		setProgressing, err := shouldSetProgressingCondition(releaseVersion, clusterOperator.Status.Versions)
+		if err != nil {
+			klog.Errorf("failed checking openshift release version: %s with err: %v", releaseVersion, err)
+		}
 
-	if release := os.Getenv("RELEASE_VERSION"); len(release) > 0 {
 		clusterOperator.Status.Versions = []configv1.OperandVersion{
-			{Name: "operator", Version: release},
+			{Name: "operator", Version: releaseVersion},
+		}
+
+		if setProgressing {
+			cs.setCondition(
+				configv1.OperatorProgressing,
+				configv1.ConditionTrue,
+				"Openshift Upgrade",
+				"Cluster version is updated")
 		}
 	}
 
+	// all status conditions from conditions to cluster operator
+	clusterOperator.Status.Conditions = cs.entries()
+
 	reported := Reported{LastReportTime: metav1.Time{Time: c.LastReportedTime()}}
 	if data, err := json.Marshal(reported); err != nil {
 		klog.Errorf("Unable to marshal status extension: %v", err)
@@ -199,6 +213,34 @@ func (c *Controller) merge(clusterOperator *configv1.ClusterOperator) *configv1.
 	return clusterOperator
 }
 
+// shouldSetProgressingCondition checks if the openshift version was changed and decides whether we should
+// switch the Progressing condition to true or not. We should do that only if the major or minor version
+// is changed and ignore the patch version.
+func shouldSetProgressingCondition(newVersion string, clusterOperatorVersions []configv1.OperandVersion) (bool, error) {
+	newVersionParsed, err := semver.Parse(newVersion)
+	if err != nil {
+		return false, err
+	}
+
+	// Skip initial run, the condition is set there
+	if len(clusterOperatorVersions) == 0 {
+		return false, nil
+	}
+
+	for _, cov := range clusterOperatorVersions {
+		covParsed, err := semver.Parse(cov.Version)
+		if err != nil {
+			return false, err
+		}
+
+		// Change Progressing condition only on major or minor version update
+		if newVersionParsed.Major != covParsed.Major || newVersionParsed.Minor != covParsed.Minor {
+			return true, nil
+		}
+	}
+	return false, nil
+}
+
 // calculate the current controller status based on its given sources
 func (c *Controller) currentControllerStatus() (allReady bool) { //nolint: gocyclo
 	var errorReason string
diff --git a/pkg/controller/status/controller_test.go b/pkg/controller/status/controller_test.go
index ec19761ac..adfd9253b 100644
--- a/pkg/controller/status/controller_test.go
+++ b/pkg/controller/status/controller_test.go
@@ -253,6 +253,75 @@ func Test_updatingConditionsFromDegradedToDisabled(t *testing.T) {
 	assert.Equal(t, disabledCondition, getConditionByType(updatedCO.Status.Conditions, OperatorDisabled))
 }
 
+func Test_shouldSetProgressingCondition(t *testing.T) {
+	tests := []struct {
+		name                    string
+		newVersion              string
+		clusterOperatorVersions []configv1.OperandVersion
+		expectedShouldUpdate    bool
+		expectError             bool
+	}{
+		{
+			name:                    "Invalid new version returns error",
+			newVersion:              "invalid-version",
+			clusterOperatorVersions: []configv1.OperandVersion{{Name: "operator", Version: "4.21.0-0.nightly-2026-01-07-204315"}},
+			expectedShouldUpdate:    false,
+			expectError:             true,
+		},
+		{
+			name:                    "Empty clusterOperatorVersions returns false",
+			newVersion:              "4.21.0-0.nightly-2026-01-07-204315",
+			clusterOperatorVersions: []configv1.OperandVersion{},
+			expectedShouldUpdate:    false,
+			expectError:             false,
+		},
+		{
+			name:                    "Major version change triggers update",
+			newVersion:              "5.21.0-0.nightly-2026-01-07-204315",
+			clusterOperatorVersions: []configv1.OperandVersion{{Name: "operator", Version: "4.21.0-0.nightly-2026-01-07-204315"}},
+			expectedShouldUpdate:    true,
+			expectError:             false,
+		},
+		{
+			name:                    "Minor version change triggers update",
+			newVersion:              "4.22.0-0.nightly-2026-01-07-204315",
+			clusterOperatorVersions: []configv1.OperandVersion{{Name: "operator", Version: "4.21.0-0.nightly-2026-01-07-204315"}},
+			expectedShouldUpdate:    true,
+			expectError:             false,
+		},
+		{
+			name:                    "Patch version change does not trigger update",
+			newVersion:              "4.21.1-0.nightly-2026-01-07-204315",
+			clusterOperatorVersions: []configv1.OperandVersion{{Name: "operator", Version: "4.21.0-0.nightly-2026-01-07-204315"}},
+			expectedShouldUpdate:    false,
+			expectError:             false,
+		},
+		{
+			name:                    "Invalid existing version returns error",
+			newVersion:              "4.21.0-0.nightly-2026-01-07-204315",
+			clusterOperatorVersions: []configv1.OperandVersion{{Name: "operator", Version: "invalid"}},
+			expectedShouldUpdate:    false,
+			expectError:             true,
+		},
+	}
+
+	for _, tt := range tests {
+		t.Run(tt.name, func(t *testing.T) {
+			shouldUpdate, err := shouldSetProgressingCondition(tt.newVersion, tt.clusterOperatorVersions)
+
+			if tt.expectError {
+				assert.Error(t, err, "Expected an error but got nil")
+			} else {
+				assert.NoError(t, err, "Expected no error but got: %v", err)
+			}
+
+			assert.Equal(t, tt.expectedShouldUpdate, shouldUpdate,
+				"shouldUpdateVersion(%q, %v) = %v, want %v",
+				tt.newVersion, tt.clusterOperatorVersions, shouldUpdate, tt.expectedShouldUpdate)
+		})
+	}
+}
+
 func getConditionByType(conditions []configv1.ClusterOperatorStatusCondition,
 	ctype configv1.ClusterStatusConditionType,
 ) *configv1.ClusterOperatorStatusCondition {