diff --git a/fn.go b/fn.go
index ec83cd8..bb14adf 100644
--- a/fn.go
+++ b/fn.go
@@ -31,6 +31,21 @@ func (f *Function) RunFunction(_ context.Context, req *fnv1.RunFunctionRequest)
 
 	rsp := response.To(req, response.DefaultTTL)
 
+	if f.shouldIgnore(req) {
+		response.ConditionTrue(rsp, "FunctionSuccess", "Success").TargetCompositeAndClaim()
+		response.Normal(rsp, "received an ignored resource, skipping")
+		return rsp, nil
+	}
+
+	fctx := req.GetContext()
+	if len(fctx.AsMap()) == 0 {
+		// init map
+		fctx.Fields = make(map[string]*structpb.Value)
+	}
+	// Default to ignore.
+	fctx.Fields["ops.upbound.io/ignored-resource"] = structpb.NewBoolValue(true)
+	rsp.Context = fctx
+
 	in := &v1alpha1.Input{}
 	if err := request.GetInput(req, in); err != nil {
 		// You can set a custom status condition on the claim. This allows you to
@@ -78,18 +93,7 @@ func (f *Function) RunFunction(_ context.Context, req *fnv1.RunFunctionRequest)
 		return rsp, nil
 	}
 
-	fmt.Println("receieved resource:")
-	fmt.Printf("%+v\n", e)
-
 	if !match(in, e) {
-		fctx := req.GetContext()
-		if len(fctx.AsMap()) == 0 {
-			// init map
-			fctx.Fields = make(map[string]*structpb.Value)
-		}
-		fctx.Fields["ops.upbound.io/ignored-resource"] = structpb.NewBoolValue(true)
-		rsp.Context = fctx
-
 		response.ConditionTrue(rsp, "FunctionSuccess", "Success").TargetCompositeAndClaim()
 		response.Normal(rsp, fmt.Sprintf("not interested in the given event %s, skipping", types.NamespacedName{Name: e.GetName(), Namespace: e.GetNamespace()}))
 		return rsp, nil
@@ -100,9 +104,28 @@ func (f *Function) RunFunction(_ context.Context, req *fnv1.RunFunctionRequest)
 	// https://github.com/kubernetes/community/blob/master/contributors/devel/sig-architecture/api-conventions.md#typical-status-properties
 	response.ConditionTrue(rsp, "FunctionSuccess", "Success").TargetCompositeAndClaim()
 	response.Normal(rsp, "passing along given event")
+	f.log.Info("shouldn't filter", "event", fmt.Sprintf("%+v", e))
+
+	fctx.Fields["ops.upbound.io/ignored-resource"] = structpb.NewBoolValue(false)
+	rsp.Context = fctx
+
 	return rsp, nil
 }
 
+// shouldIgnore returns true if the caller has communicated that the resource
+// is an ignored resource. False otherwise.
+func (f *Function) shouldIgnore(req *fnv1.RunFunctionRequest) bool {
+	fctx := req.GetContext()
+	ignored, ok := fctx.AsMap()["ops.upbound.io/ignored-resource"]
+	if ok {
+		i, ok := ignored.(bool)
+		if ok && i {
+			return true
+		}
+	}
+	return false
+}
+
 func match(in *v1alpha1.Input, e corev1.Event) bool { //nolint:gocyclo // This method is above our cyclomatic complexity level. Be wary of adding additional complexity.
 	ib, err := json.Marshal(in.InvolvedObject)
 	if err != nil {
diff --git a/go.mod b/go.mod
index 515ff73..7af2ba6 100644
--- a/go.mod
+++ b/go.mod
@@ -6,7 +6,7 @@ toolchain go1.24.4
 
 require (
 	github.com/alecthomas/kong v0.9.0
-	github.com/crossplane/function-sdk-go v0.5.0-rc.0.0.20250715215746-ca27889cd196
+	github.com/crossplane/function-sdk-go v0.5.0-rc.0.0.20250805171053-2910b68d255d
 	github.com/google/go-cmp v0.6.0
 	google.golang.org/protobuf v1.34.3-0.20240816073751-94ecbc261689
 	k8s.io/api v0.31.0
diff --git a/go.sum b/go.sum
index 62c66a0..fa834ec 100644
--- a/go.sum
+++ b/go.sum
@@ -24,8 +24,8 @@ github.com/cpuguy83/go-md2man/v2 v2.0.4/go.mod h1:tgQtvFlXSQOSOSIRvRPT7W67SCa46t
 github.com/creack/pty v1.1.9/go.mod h1:oKZEueFk5CKHvIhNR5MUki03XCEU+Q6VDXinZuGJ33E=
 github.com/crossplane/crossplane-runtime v1.18.0 h1:aAQIMNOgPbbXaqj9CUSv+gPl3QnVbn33YlzSe145//0=
 github.com/crossplane/crossplane-runtime v1.18.0/go.mod h1:p7nVVsLn0CWjsLvLCtr7T40ErbTgNWKRxmYnwFdfXb4=
-github.com/crossplane/function-sdk-go v0.5.0-rc.0.0.20250715215746-ca27889cd196 h1:wsaHsx3jIuJzEB+9O8+AegjfwaVM0j7IIlOegUTVtDE=
-github.com/crossplane/function-sdk-go v0.5.0-rc.0.0.20250715215746-ca27889cd196/go.mod h1:fEwSBgMH6+kicaBeOWz6PZRwhjLg4tu9QEDeP/9O2yE=
+github.com/crossplane/function-sdk-go v0.5.0-rc.0.0.20250805171053-2910b68d255d h1:bzt8qEg9I2GrLc216IuuTn4x+GECxc+DoGlDZ4PMuJY=
+github.com/crossplane/function-sdk-go v0.5.0-rc.0.0.20250805171053-2910b68d255d/go.mod h1:fEwSBgMH6+kicaBeOWz6PZRwhjLg4tu9QEDeP/9O2yE=
 github.com/crossplane/upjet v1.4.1-0.20240911184956-3afbb7796d46 h1:2IH1YPTBrNmBj0Z1OCjEBTrQCuRaLutZbWLaswFeCFQ=
 github.com/crossplane/upjet v1.4.1-0.20240911184956-3afbb7796d46/go.mod h1:wkdZf/Cvhr6PI30VdHIOjg4dX39Z5uijqnLWFk5PbGM=
 github.com/davecgh/go-spew v1.1.0/go.mod h1:J7Y8YcW2NihsgmVo/mv3lAwl/skON4iLHjSsI+c5H38=