diff --git a/internal/controller/controllers/clusterdeployments_controller.go b/internal/controller/controllers/clusterdeployments_controller.go
index 55497030869a..56652d765edc 100644
--- a/internal/controller/controllers/clusterdeployments_controller.go
+++ b/internal/controller/controllers/clusterdeployments_controller.go
@@ -2691,6 +2691,12 @@ func (r *ClusterDeploymentsReconciler) handleClusterInstalled(ctx context.Contex
 		err = r.updateClusterMetadata(ctx, log, clusterDeployment, cluster, clusterInstall)
 		if err != nil {
 			log.WithError(err).Error("failed to update cluster metadata")
+		} else {
+			clusterDeployment.Spec.Installed = true
+			if updateErr := r.Update(ctx, clusterDeployment); updateErr != nil {
+				log.WithError(updateErr).Error("failed to set ClusterDeployment.Spec.Installed")
+				return r.updateStatus(ctx, log, clusterInstall, clusterDeployment, cluster, updateErr)
+			}
 		}
 		return r.updateStatus(ctx, log, clusterInstall, clusterDeployment, cluster, err)
 	}
diff --git a/internal/controller/controllers/clusterdeployments_controller_test.go b/internal/controller/controllers/clusterdeployments_controller_test.go
index 41680a71b304..3117d27d406a 100644
--- a/internal/controller/controllers/clusterdeployments_controller_test.go
+++ b/internal/controller/controllers/clusterdeployments_controller_test.go
@@ -2385,6 +2385,32 @@ var _ = Describe("cluster reconcile", func() {
 			Expect(aci.Status.DebugInfo.State).To(Equal(models.ClusterStatusAddingHosts))
 		})
 
+		It("should set ClusterDeployment.Spec.Installed to true after Day1 completion", func() {
+			openshiftID := strfmt.UUID(uuid.New().String())
+			backEndCluster.Status = swag.String(models.ClusterStatusInstalled)
+			backEndCluster.OpenshiftClusterID = openshiftID
+			backEndCluster.Kind = swag.String(models.ClusterKindCluster)
+			mockInstallerInternal.EXPECT().GetClusterByKubeKey(gomock.Any()).Return(backEndCluster, nil).Times(1)
+			mockInstallerInternal.EXPECT().ValidatePullSecret(gomock.Any(), gomock.Any(), gomock.Any(), gomock.Any()).Return(nil).AnyTimes()
+			kubeconfig := "kubeconfig content"
+			mockInstallerInternal.EXPECT().GetCredentialsInternal(gomock.Any(), gomock.Any()).Return(&models.Credentials{Password: "foo", Username: "bar"}, nil).Times(1)
+			mockInstallerInternal.EXPECT().V2DownloadClusterCredentialsInternal(gomock.Any(), gomock.Any()).Return(io.NopCloser(strings.NewReader(kubeconfig)), int64(len(kubeconfig)), nil).Times(1)
+			mockInstallerInternal.EXPECT().HostWithCollectedLogsExists(gomock.Any()).Return(false, nil).AnyTimes()
+			mockInstallerInternal.EXPECT().UpdateClusterNonInteractive(gomock.Any(), gomock.Any(), gomock.Any()).Return(backEndCluster, nil).AnyTimes()
+
+			request := newClusterDeploymentRequest(cluster)
+			result, err := cr.Reconcile(ctx, request)
+			Expect(err).To(BeNil())
+			Expect(result).To(Equal(ctrl.Result{}))
+
+			aci = getTestClusterInstall()
+			Expect(aci.Status.DebugInfo.State).To(Equal(models.ClusterStatusInstalled))
+			Expect(FindStatusCondition(aci.Status.Conditions, hiveext.ClusterCompletedCondition).Reason).To(Equal(hiveext.ClusterInstalledReason))
+
+			cluster = getTestCluster()
+			Expect(cluster.Spec.Installed).To(BeTrue())
+		})
+
 		It("update kubeconfig ingress", func() {
 			openshiftID := strfmt.UUID(uuid.New().String())
 			backEndCluster.Status = swag.String(models.ClusterStatusInstalling)