diff --git a/api/v1alpha1/modelregistry_webhook.go b/api/v1alpha1/modelregistry_webhook.go
index 853513b..367c890 100644
--- a/api/v1alpha1/modelregistry_webhook.go
+++ b/api/v1alpha1/modelregistry_webhook.go
@@ -134,10 +134,15 @@ func (r *ModelRegistry) Default() {
 // and it removes default runtime values that match default runtime properties set in the operator
 // since they are redundant as custom property values.
 func (r *ModelRegistry) cleanupRuntimeDefaults() {
+	// if specDefaults hasn't been set for new MRs or all properties were set in a previous version
 	if r.Status.SpecDefaults != "" && r.Status.SpecDefaults != "{}" {
-		// nothing to do as model registries with specDefaults set
-		// will only have custom properties set by users
-		return
+		// also check if any runtime default properties will be set in the next reconcile
+		// this is required because specDefaults could be stale
+		deepCopy := r.DeepCopy() // do not modify this registry
+		if deepCopy.RuntimeDefaults() {
+			// model registry has custom values set for runtime properties
+			return
+		}
 	}
 
 	// check grpc image against operator default grpc image repo
@@ -208,22 +213,29 @@ func (r *ModelRegistry) cleanupRuntimeDefaults() {
 	}
 }
 
-// RuntimeDefaults sets default values from the operator environment, which could change at runtime
-func (r *ModelRegistry) RuntimeDefaults() {
+// RuntimeDefaults sets default values from the operator environment, which could change at runtime.
+// Returns true if any properties were set to a default value, false if all default values are overridden.
+func (r *ModelRegistry) RuntimeDefaults() bool {
 	modelregistrylog.Info("runtime defaults", "name", r.Name)
 
+	modified := false
+
 	if r.Spec.Grpc.Resources == nil {
 		r.Spec.Grpc.Resources = config.MlmdGRPCResourceRequirements.DeepCopy()
+		modified = true
 	}
 	if len(r.Spec.Grpc.Image) == 0 {
 		r.Spec.Grpc.Image = config.GetStringConfigWithDefault(config.GrpcImage, config.DefaultGrpcImage)
+		modified = true
 	}
 
 	if r.Spec.Rest.Resources == nil {
 		r.Spec.Rest.Resources = config.MlmdRestResourceRequirements.DeepCopy()
+		modified = true
 	}
 	if len(r.Spec.Rest.Image) == 0 {
 		r.Spec.Rest.Image = config.GetStringConfigWithDefault(config.RestImage, config.DefaultRestImage)
+		modified = true
 	}
 
 	// istio defaults
@@ -231,20 +243,24 @@ func (r *ModelRegistry) RuntimeDefaults() {
 		// set default audiences
 		if len(r.Spec.Istio.Audiences) == 0 {
 			r.Spec.Istio.Audiences = config.GetDefaultAudiences()
+			modified = true
 		}
 		// set default authprovider
 		if len(r.Spec.Istio.AuthProvider) == 0 {
 			r.Spec.Istio.AuthProvider = config.GetDefaultAuthProvider()
+			modified = true
 		}
 		// set default authconfig labels
 		if len(r.Spec.Istio.AuthConfigLabels) == 0 {
 			r.Spec.Istio.AuthConfigLabels = config.GetDefaultAuthConfigLabels()
+			modified = true
 		}
 
 		if r.Spec.Istio.Gateway != nil {
 			// set default domain
 			if len(r.Spec.Istio.Gateway.Domain) == 0 {
 				r.Spec.Istio.Gateway.Domain = config.GetDefaultDomain()
+				modified = true
 			}
 
 			// set default cert
@@ -252,14 +268,18 @@ func (r *ModelRegistry) RuntimeDefaults() {
 				(r.Spec.Istio.Gateway.Rest.TLS.CredentialName == nil || len(*r.Spec.Istio.Gateway.Rest.TLS.CredentialName) == 0) {
 				cert := config.GetDefaultCert()
 				r.Spec.Istio.Gateway.Rest.TLS.CredentialName = &cert
+				modified = true
 			}
 			if r.Spec.Istio.Gateway.Grpc.TLS != nil && r.Spec.Istio.Gateway.Grpc.TLS.Mode != DefaultTlsMode &&
 				(r.Spec.Istio.Gateway.Grpc.TLS.CredentialName == nil || len(*r.Spec.Istio.Gateway.Grpc.TLS.CredentialName) == 0) {
 				cert := config.GetDefaultCert()
 				r.Spec.Istio.Gateway.Grpc.TLS.CredentialName = &cert
+				modified = true
 			}
 		}
 	}
+
+	return modified
 }
 
 // ValidateRegistry validates registry spec
diff --git a/internal/controller/modelregistry_controller_status.go b/internal/controller/modelregistry_controller_status.go
index e0c0aef..1ccfbe0 100644
--- a/internal/controller/modelregistry_controller_status.go
+++ b/internal/controller/modelregistry_controller_status.go
@@ -20,7 +20,7 @@ import (
 	"bufio"
 	"context"
 	"fmt"
-	jsonpatch "github.com/evanphx/json-patch/v5"
+	"github.com/evanphx/json-patch/v5"
 	"github.com/go-logr/logr"
 	authorino "github.com/kuadrant/authorino/api/v1beta2"
 	modelregistryv1alpha1 "github.com/opendatahub-io/model-registry-operator/api/v1alpha1"