diff --git a/pkg/zfs/volume.go b/pkg/zfs/volume.go
index eb374dd70..322f5f294 100644
--- a/pkg/zfs/volume.go
+++ b/pkg/zfs/volume.go
@@ -402,8 +402,8 @@ func UpdateRestoreInfo(rstr *apis.ZFSRestore, status apis.ZFSRestoreStatus) erro
 }
 
 // GetUserFinalizers returns all the finalizers present on the ZFSVolume object
-// execpt the one owned by ZFS node daemonset. We also need to ignore the foregroundDeletion
-// finalizer as this will be present becasue of the foreground cascading deletion
+// except the one owned by ZFS node daemonset. We also need to ignore the foregroundDeletion
+// finalizer as this will be present because of the foreground cascading deletion
 func GetUserFinalizers(finalizers []string) []string {
 	var userFin []string
 	for _, fin := range finalizers {
@@ -417,17 +417,21 @@ func GetUserFinalizers(finalizers []string) []string {
 
 // IsVolumeReady returns true if volume is Ready
 func IsVolumeReady(vol *apis.ZFSVolume) bool {
-
-	if vol.Status.State == ZFSStatusReady {
-		return true
+	// From v0.8.0, the status was added to ZFSVolume
+	if vol.Status.State != "" {
+		// For newer volumes created after v0.8.0, the status is sufficient to determine if the volume is ready
+		// If we check the finalizer to ensure the volume is Ready while the status is Pending or Failed
+		// the volume may never become Ready again when the controller provisions the volume again due to a timeout or controller crash
+		return vol.Status.State == ZFSStatusReady
 	}
 
-	// For older volumes, there was no Status field
+	// For older volumes created before v0.8.0, there was no Status field
 	// so checking the node finalizer to make sure volume is Ready
 	for _, fin := range vol.Finalizers {
 		if fin == ZFSFinalizer {
 			return true
 		}
 	}
+
 	return false
 }
diff --git a/pkg/zfs/volume_test.go b/pkg/zfs/volume_test.go
new file mode 100644
index 000000000..b15af5dfc
--- /dev/null
+++ b/pkg/zfs/volume_test.go
@@ -0,0 +1,40 @@
+package zfs
+
+import (
+	"testing"
+
+	apis "github.com/openebs/zfs-localpv/pkg/apis/openebs.io/zfs/v1"
+)
+
+func TestIsVolumeReady(t *testing.T) {
+	volGen := func(finalizer string, state string) *apis.ZFSVolume {
+		vol := &apis.ZFSVolume{}
+		if finalizer != "" {
+			vol.Finalizers = append(vol.Finalizers, finalizer)
+		}
+		if state != "" {
+			vol.Status.State = state
+		}
+		return vol
+	}
+	tests := []struct {
+		name         string
+		volFinalizer string
+		volState     string
+		want         bool
+	}{
+		{"Older volume is ready", ZFSFinalizer, "", true},
+		{"Older volume is not ready", "", "", false},
+		{"Newer volume is pending", "", ZFSStatusPending, false},
+		{"Newer volume is pending with finalizer", ZFSFinalizer, ZFSStatusPending, false},
+		{"Newer volume is ready with finalizer", ZFSFinalizer, ZFSStatusReady, true},
+		{"Newer volume is failed", "", ZFSStatusFailed, false},
+	}
+	for _, tt := range tests {
+		t.Run(tt.name, func(t *testing.T) {
+			if got := IsVolumeReady(volGen(tt.volFinalizer, tt.volState)); got != tt.want {
+				t.Errorf("IsVolumeReady() = %v, want %v", got, tt.want)
+			}
+		})
+	}
+}