diff --git a/core/src/actions/base.ts b/core/src/actions/base.ts
index e76afb096e..7817102945 100644
--- a/core/src/actions/base.ts
+++ b/core/src/actions/base.ts
@@ -59,7 +59,7 @@ import { PickTypeByKind } from "../graph/config-graph"
 import { DeployAction } from "./deploy"
 import { TestAction } from "./test"
 import { RunAction } from "./run"
-import { uuidv4 } from "../util/util"
+import { uuidv4 } from "../util/random"
 
 // TODO-G2: split this file
 
diff --git a/core/src/actions/types.ts b/core/src/actions/types.ts
index 07017b83ca..ffb3ca3d0d 100644
--- a/core/src/actions/types.ts
+++ b/core/src/actions/types.ts
@@ -98,8 +98,23 @@ export interface ActionConfigTypes {
   Test: TestActionConfig<string, any>
 }
 
-// See https://melvingeorge.me/blog/convert-array-into-string-literal-union-type-typescript
-export const actionStateTypes = ["getting-status", "ready", "not-ready", "processing", "failed", "unknown"] as const
+/**
+ * These are the states returned from actions.
+ *
+ * See https://melvingeorge.me/blog/convert-array-into-string-literal-union-type-typescript
+ */
+export const actionStateTypes = ["ready", "not-ready", "processing", "failed", "unknown"] as const
+export type ActionState = typeof actionStateTypes[number]
+
+/**
+ * These are the states emitted in status events. Here, we include additional states to help distinguish status event
+ * emitted around status/cache checks VS statuses emitted around the execution after a failed status check.
+ */
+export const actionStateTypesForEvent = [
+  ...actionStateTypes,
+  "getting-status",
+  "cached",
+] as const
 /**
  * This type represents the lifecycle of an individual action execution.
  *
@@ -110,7 +125,7 @@ export const actionStateTypes = ["getting-status", "ready", "not-ready", "proces
  * initial state: "getting-status"
  * final state: "ready" or "failed"
  *
- * "getting-status" -> "ready" | "not-ready"
+ * "getting-status" -> "cached" | "not-ready"
  * "not-ready" -> "processing"
  * "processing" -> "ready" | "failed"
  * ```
@@ -125,10 +140,13 @@ export const actionStateTypes = ["getting-status", "ready", "not-ready", "proces
  *   - Or for a Kubernetes deployment, this might involve checking if the requested resources are already live and up
  *     to date.
  *
- * - `"ready"`: An up-to-date result exists for the action.
- *   - This state can be reached by a status check that returned a successful cache hit (e.g. an up-to-date build
- *     artifact / deployed resource / test result / run result already exists), or by successfully processing the
- *     action after getting a `"not-ready"` state from the status check.
+ * - `"cached"`: This state indicates a cache hit. An up-to-date result exists for the action.
+ *   - This state can be reached e.g. when a status check indicates that an up-to-date build artifact / deployed
+ *     resource / test result / run result already exists.
+ *
+ * - `"ready"`: The action was executed successfully, and an up-to-date result exists for the action.
+ *   - This state can be reached by successfully processing the action after getting a `"not-ready"` state from the
+ *     status check.
  *
  * - `"not-ready"`: No result (or no healthy result) for the action exists with the requested version.
  *   - This state is reached by a status check that doesn't find an up-to-date result (e.g. no up-to-date container
@@ -140,7 +158,11 @@ export const actionStateTypes = ["getting-status", "ready", "not-ready", "proces
  * - `"failed"`: The action was executed, but a failure or error occurred, so no up-to-date result was created for
  *   the action.
  */
-export type ActionState = typeof actionStateTypes[number]
+export type ActionStateForEvent = typeof actionStateTypesForEvent[number]
+
+export const stateForCacheStatusEvent = (state: ActionState): ActionStateForEvent => {
+  return state === "ready" ? "cached" : state
+}
 
 export interface ActionStatus<
   T extends BaseAction = BaseAction,
diff --git a/core/src/events.ts b/core/src/events.ts
index d47cbeef9c..f15654425e 100644
--- a/core/src/events.ts
+++ b/core/src/events.ts
@@ -18,9 +18,9 @@ import type { CommandInfo } from "./plugin-context"
 import type { ActionReference } from "./config/common"
 import type { GraphResult } from "./graph/results"
 import { NamespaceStatus } from "./types/namespace"
-import { sanitizeValue } from "./util/logging"
-import { ActionState } from "./actions/types"
 import { BuildState } from "./plugin/handlers/Build/get-status"
+import { ActionStateForEvent } from "./actions/types"
+import { sanitizeValue } from "./util/logging"
 
 export type GardenEventListener<T extends EventName> = (payload: Events[T]) => void
 
@@ -109,7 +109,7 @@ export interface ActionStatusPayload<S = {}> {
   moduleName: string | null // DEPRECATED: Remove in 0.14
   startedAt: string
   completedAt?: string
-  state: ActionState
+  state: ActionStateForEvent
   status: S
 }
 
diff --git a/core/src/plugins/exec/deploy.ts b/core/src/plugins/exec/deploy.ts
index 769fbe7866..c1a83892bc 100644
--- a/core/src/plugins/exec/deploy.ts
+++ b/core/src/plugins/exec/deploy.ts
@@ -25,7 +25,7 @@ import { ExecLogsFollower } from "./logs"
 import { PluginContext } from "../../plugin-context"
 import { ExecDeploy } from "./config"
 import { DeployActionHandler } from "../../plugin/action-types"
-import { DeployStatus } from "../../plugin/handlers/Deploy/get-status"
+import { deployStateToActionState, DeployStatus } from "../../plugin/handlers/Deploy/get-status"
 import { Resolved } from "../../actions/types"
 import { convertCommandSpec, execRun, getDefaultEnvVars } from "./common"
 import { kill } from "process"
@@ -50,7 +50,7 @@ export const getExecDeployStatus: DeployActionHandler<"getStatus", ExecDeploy> =
     const state = result.exitCode === 0 ? "ready" : "outdated"
 
     return {
-      state,
+      state: deployStateToActionState(state),
       detail: {
         state,
         version: action.versionString(),
@@ -64,7 +64,7 @@ export const getExecDeployStatus: DeployActionHandler<"getStatus", ExecDeploy> =
     const state = "unknown"
 
     return {
-      state,
+      state: deployStateToActionState(state),
       detail: { state, version: action.versionString(), detail: {} },
       outputs: {
         log: "",
diff --git a/core/src/router/build.ts b/core/src/router/build.ts
index d957456a65..59b043a25d 100644
--- a/core/src/router/build.ts
+++ b/core/src/router/build.ts
@@ -11,9 +11,8 @@ import chalk from "chalk"
 import { renderOutputStream } from "../util/util"
 import { PluginEventBroker } from "../plugin-context"
 import { BaseRouterParams, createActionRouter } from "./base"
-import { ActionState } from "../actions/types"
+import { ActionState, stateForCacheStatusEvent } from "../actions/types"
 import { PublishActionResult } from "../plugin/handlers/Build/publish"
-import { uuidv4 } from "../util/random"
 
 export const buildRouter = (baseParams: BaseRouterParams) =>
   createActionRouter("Build", baseParams, {
@@ -42,14 +41,15 @@ export const buildRouter = (baseParams: BaseRouterParams) =>
         handlerType: "getStatus",
         defaultHandler: async () => ({ state: <ActionState>"unknown", detail: {}, outputs: {} }),
       })
+      const { state } = status
 
       // TODO-G2: only validate if state is ready?
       await router.validateActionOutputs(action, "runtime", status.outputs)
       garden.events.emit("buildStatus", {
         ...payloadAttrs,
         completedAt: new Date().toISOString(),
-        state: status.state,
-        status: { state: status.state === "ready" ? "fetched" : "outdated" },
+        state: stateForCacheStatusEvent(state),
+        status: { state: state === "ready" ? "fetched" : "outdated" },
       })
       return status
     },
diff --git a/core/src/router/deploy.ts b/core/src/router/deploy.ts
index 6698376c80..db12960d2c 100644
--- a/core/src/router/deploy.ts
+++ b/core/src/router/deploy.ts
@@ -8,7 +8,7 @@
 
 import chalk from "chalk"
 import { omit } from "lodash"
-import { ActionState } from "../actions/types"
+import { ActionState, stateForCacheStatusEvent } from "../actions/types"
 import { PluginEventBroker } from "../plugin-context"
 import { DeployState } from "../types/service"
 import { renderOutputStream } from "../util/util"
@@ -159,7 +159,7 @@ export const deployRouter = (baseParams: BaseRouterParams) =>
       garden.events.emit("deployStatus", {
         ...payloadAttrs,
         completedAt: new Date().toISOString(),
-        state: result.state,
+        state: stateForCacheStatusEvent(result.state),
         status: omit(result.detail, "detail")
       })
 
diff --git a/core/src/router/run.ts b/core/src/router/run.ts
index 63d82a44c2..83d67ce552 100644
--- a/core/src/router/run.ts
+++ b/core/src/router/run.ts
@@ -9,7 +9,7 @@
 import { realpath } from "fs-extra"
 import normalizePath from "normalize-path"
 import tmp from "tmp-promise"
-import { ActionState } from "../actions/types"
+import { ActionState, stateForCacheStatusEvent } from "../actions/types"
 import { PluginEventBroker } from "../plugin-context"
 import { runStatusForEventPayload } from "../plugin/base"
 import { copyArtifacts, getArtifactKey } from "../util/artifacts"
@@ -124,7 +124,7 @@ export const runRouter = (baseParams: BaseRouterParams) =>
 
       garden.events.emit("runStatus", {
         ...payloadAttrs,
-        state: result.state,
+        state: stateForCacheStatusEvent(result.state),
         completedAt: new Date().toISOString(),
         status: runStatusForEventPayload(result.detail),
       })
diff --git a/core/src/router/test.ts b/core/src/router/test.ts
index 21f09ee514..5bcf6dd6c4 100644
--- a/core/src/router/test.ts
+++ b/core/src/router/test.ts
@@ -8,7 +8,7 @@
 
 import { realpath } from "fs-extra"
 import normalizePath from "normalize-path"
-import { ActionState } from "../actions/types"
+import { ActionState, stateForCacheStatusEvent } from "../actions/types"
 import { PluginEventBroker } from "../plugin-context"
 import { runStatusForEventPayload } from "../plugin/base"
 import { copyArtifacts, getArtifactKey } from "../util/artifacts"
@@ -122,7 +122,7 @@ export const testRouter = (baseParams: BaseRouterParams) =>
 
       garden.events.emit("testStatus", {
         ...payloadAttrs,
-        state: result.state,
+        state: stateForCacheStatusEvent(result.state),
         completedAt: new Date().toISOString(),
         status: runStatusForEventPayload(result.detail),
       })
diff --git a/core/test/unit/src/router/build.ts b/core/test/unit/src/router/build.ts
index 15b5a80ecb..7dae2e034f 100644
--- a/core/test/unit/src/router/build.ts
+++ b/core/test/unit/src/router/build.ts
@@ -64,7 +64,7 @@ describe("build actions", () => {
       expect(event2.name).to.eql("buildStatus")
       expect(event2.payload.moduleName).to.eql("module-a")
       expect(event2.payload.actionUid).to.eql(event1.payload.actionUid)
-      expect(event2.payload.state).to.eql("ready")
+      expect(event2.payload.state).to.eql("cached")
       expect(event2.payload.status.state).to.eql("fetched")
     })
   })
diff --git a/core/test/unit/src/router/deploy.ts b/core/test/unit/src/router/deploy.ts
index 1ed2562358..b0edc6b2d8 100644
--- a/core/test/unit/src/router/deploy.ts
+++ b/core/test/unit/src/router/deploy.ts
@@ -80,7 +80,7 @@ describe("deploy actions", () => {
       expect(event2.payload.actionVersion).to.eql(resolvedDeployAction.versionString())
       expect(event2.payload.moduleName).to.eql("module-a")
       expect(event2.payload.actionUid).to.eql(event1.payload.actionUid)
-      expect(event2.payload.state).to.eql("ready")
+      expect(event2.payload.state).to.eql("cached")
       expect(event2.payload.status.state).to.eql("ready")
     })
 
diff --git a/core/test/unit/src/router/run.ts b/core/test/unit/src/router/run.ts
index 82ad2caf5c..4c50e4387d 100644
--- a/core/test/unit/src/router/run.ts
+++ b/core/test/unit/src/router/run.ts
@@ -93,7 +93,7 @@ describe("run actions", () => {
       expect(event2.name).to.eql("runStatus")
       expect(event2.payload.moduleName).to.eql("module-a")
       expect(event2.payload.actionUid).to.eql(event1.payload.actionUid)
-      expect(event2.payload.state).to.eql("ready")
+      expect(event2.payload.state).to.eql("cached")
       expect(event2.payload.status.state).to.eql("succeeded")
     })
 
diff --git a/core/test/unit/src/router/test.ts b/core/test/unit/src/router/test.ts
index 6e5b1183db..f86628226c 100644
--- a/core/test/unit/src/router/test.ts
+++ b/core/test/unit/src/router/test.ts
@@ -201,7 +201,7 @@ describe("test actions", () => {
     expect(event2.name).to.eql("testStatus")
     expect(event1.payload.moduleName).to.eql("module-a")
     expect(event2.payload.actionUid).to.eql(event1.payload.actionUid)
-    expect(event2.payload.state).to.eql("ready")
+    expect(event2.payload.state).to.eql("cached")
     expect(event2.payload.status.state).to.eql("succeeded")
   })
 })