diff --git a/controller/appcontroller_test.go b/controller/appcontroller_test.go
index 05b5d42d7d4fcc..6898290e10127b 100644
--- a/controller/appcontroller_test.go
+++ b/controller/appcontroller_test.go
@@ -1709,7 +1709,7 @@ apps/Deployment:
 
 	for _, tc := range testCases {
 		t.Run(tc.name, func(t *testing.T) {
-                        deployment.SetLabels(map[string]string{"status": tc.initialStatus})
+			deployment.SetLabels(map[string]string{"status": tc.initialStatus})
 			ctrl.processAppRefreshQueueItem()
 			apps, err := ctrl.appLister.List(labels.Everything())
 			require.NoError(t, err)
diff --git a/controller/health.go b/controller/health.go
index b1c457776886ea..0720578c7981fb 100644
--- a/controller/health.go
+++ b/controller/health.go
@@ -86,17 +86,15 @@ func setApplicationHealth(resources []managedResource, statuses []appv1.Resource
 
 		if health.IsWorse(appHealth.Status, healthStatus.Status) {
 			appHealth.Status = healthStatus.Status
-			if persistResourceHealth {
-				appHealth.LastTransitionTime = statuses[i].Health.LastTransitionTime
-			} else {
-				appHealth.LastTransitionTime = now
-			}
-		} else if healthStatus.Status == health.HealthStatusHealthy {
-			appHealth.LastTransitionTime = lastTransitionTime
 		}
 	}
 	if persistResourceHealth {
 		app.Status.ResourceHealthSource = appv1.ResourceHealthLocationInline
+		if app.Status.Health.Status == appHealth.Status {
+			appHealth.LastTransitionTime = lastTransitionTime
+		} else {
+			appHealth.LastTransitionTime = metav1.Now()
+		}
 	} else {
 		app.Status.ResourceHealthSource = appv1.ResourceHealthLocationAppTree
 	}