diff --git a/garden-service/src/plugins/kubernetes/init.ts b/garden-service/src/plugins/kubernetes/init.ts
index 78d9dce350..0f95db9867 100644
--- a/garden-service/src/plugins/kubernetes/init.ts
+++ b/garden-service/src/plugins/kubernetes/init.ts
@@ -85,10 +85,11 @@ export async function getEnvironmentStatus({ ctx, log }: GetEnvironmentStatusPar
     systemReady = systemTillerReady && sysNamespaceUpToDate && systemServiceStatus.state === "ready"
     dashboardPages = systemServiceStatus.dashboardPages
 
-    // If we require manual init and system services are outdated (as opposed to unhealthy, missing etc.), we warn
+    // If we require manual init and system services are outdated but none are *missing*, we warn
     // in the prepareEnvironment handler, instead of flagging as not ready here. This avoids blocking users where
     // there's variance in configuration between users of the same cluster, that most likely shouldn't affect usage.
-    if (needManualInit && systemServiceStatus.state === "outdated") {
+    const states = Object.values(systemServiceStatus.serviceStatuses).map(s => s.state)
+    if (needManualInit && systemServiceStatus.state === "outdated" && !states.includes("missing")) {
       needManualInit = false
     }