diff --git a/pkg/kubelet/kubelet_node_status.go b/pkg/kubelet/kubelet_node_status.go
index ebfdd22ae0f..41e648b4ee2 100644
--- a/pkg/kubelet/kubelet_node_status.go
+++ b/pkg/kubelet/kubelet_node_status.go
@@ -22,7 +22,6 @@ import (
 	"math"
 	"net"
 	goruntime "runtime"
-	"strings"
 	"time"
 
 	"github.com/golang/glog"
@@ -646,84 +645,6 @@ func (kl *Kubelet) setNodeStatusInfo(node *v1.Node) {
 	}
 }
 
-// Set Ready condition for the node.
-func (kl *Kubelet) setNodeReadyCondition(node *v1.Node) {
-	// NOTE(aaronlevy): NodeReady condition needs to be the last in the list of node conditions.
-	// This is due to an issue with version skewed kubelet and master components.
-	// ref: https://github.com/kubernetes/kubernetes/issues/16961
-	currentTime := metav1.NewTime(kl.clock.Now())
-	newNodeReadyCondition := v1.NodeCondition{
-		Type:              v1.NodeReady,
-		Status:            v1.ConditionTrue,
-		Reason:            "KubeletReady",
-		Message:           "kubelet is posting ready status",
-		LastHeartbeatTime: currentTime,
-	}
-	rs := append(kl.runtimeState.runtimeErrors(), kl.runtimeState.networkErrors()...)
-	requiredCapacities := []v1.ResourceName{v1.ResourceCPU, v1.ResourceMemory, v1.ResourcePods}
-	if utilfeature.DefaultFeatureGate.Enabled(features.LocalStorageCapacityIsolation) {
-		requiredCapacities = append(requiredCapacities, v1.ResourceEphemeralStorage)
-	}
-	missingCapacities := []string{}
-	for _, resource := range requiredCapacities {
-		if _, found := node.Status.Capacity[resource]; !found {
-			missingCapacities = append(missingCapacities, string(resource))
-		}
-	}
-	if len(missingCapacities) > 0 {
-		rs = append(rs, fmt.Sprintf("Missing node capacity for resources: %s", strings.Join(missingCapacities, ", ")))
-	}
-	if len(rs) > 0 {
-		newNodeReadyCondition = v1.NodeCondition{
-			Type:              v1.NodeReady,
-			Status:            v1.ConditionFalse,
-			Reason:            "KubeletNotReady",
-			Message:           strings.Join(rs, ","),
-			LastHeartbeatTime: currentTime,
-		}
-	}
-	// Append AppArmor status if it's enabled.
-	// TODO(tallclair): This is a temporary message until node feature reporting is added.
-	if newNodeReadyCondition.Status == v1.ConditionTrue &&
-		kl.appArmorValidator != nil && kl.appArmorValidator.ValidateHost() == nil {
-		newNodeReadyCondition.Message = fmt.Sprintf("%s. AppArmor enabled", newNodeReadyCondition.Message)
-	}
-
-	// Record any soft requirements that were not met in the container manager.
-	status := kl.containerManager.Status()
-	if status.SoftRequirements != nil {
-		newNodeReadyCondition.Message = fmt.Sprintf("%s. WARNING: %s", newNodeReadyCondition.Message, status.SoftRequirements.Error())
-	}
-
-	readyConditionUpdated := false
-	needToRecordEvent := false
-	for i := range node.Status.Conditions {
-		if node.Status.Conditions[i].Type == v1.NodeReady {
-			if node.Status.Conditions[i].Status == newNodeReadyCondition.Status {
-				newNodeReadyCondition.LastTransitionTime = node.Status.Conditions[i].LastTransitionTime
-			} else {
-				newNodeReadyCondition.LastTransitionTime = currentTime
-				needToRecordEvent = true
-			}
-			node.Status.Conditions[i] = newNodeReadyCondition
-			readyConditionUpdated = true
-			break
-		}
-	}
-	if !readyConditionUpdated {
-		newNodeReadyCondition.LastTransitionTime = currentTime
-		node.Status.Conditions = append(node.Status.Conditions, newNodeReadyCondition)
-	}
-	if needToRecordEvent {
-		if newNodeReadyCondition.Status == v1.ConditionTrue {
-			kl.recordNodeStatusEvent(v1.EventTypeNormal, events.NodeReady)
-		} else {
-			kl.recordNodeStatusEvent(v1.EventTypeNormal, events.NodeNotReady)
-			glog.Infof("Node became not ready: %+v", newNodeReadyCondition)
-		}
-	}
-}
-
 // record if node schedulable change.
 func (kl *Kubelet) recordNodeSchedulableEvent(node *v1.Node) {
 	kl.lastNodeUnschedulableLock.Lock()
@@ -786,6 +707,10 @@ func (kl *Kubelet) defaultNodeStatusFuncs() []func(*v1.Node) error {
 	if kl.cloud != nil {
 		nodeAddressesFunc = kl.cloudResourceSyncManager.NodeAddresses
 	}
+	var validateHostFunc func() error
+	if kl.appArmorValidator != nil {
+		validateHostFunc = kl.appArmorValidator.ValidateHost
+	}
 	return []func(*v1.Node) error{
 		nodestatus.NodeAddress(kl.nodeIP, kl.nodeIPValidator, kl.hostname, kl.externalCloudProvider, kl.cloud, nodeAddressesFunc),
 		withoutError(kl.setNodeStatusInfo),
@@ -793,7 +718,7 @@ func (kl *Kubelet) defaultNodeStatusFuncs() []func(*v1.Node) error {
 		nodestatus.MemoryPressureCondition(kl.clock.Now, kl.evictionManager.IsUnderMemoryPressure, kl.recordNodeStatusEvent),
 		nodestatus.DiskPressureCondition(kl.clock.Now, kl.evictionManager.IsUnderDiskPressure, kl.recordNodeStatusEvent),
 		nodestatus.PIDPressureCondition(kl.clock.Now, kl.evictionManager.IsUnderPIDPressure, kl.recordNodeStatusEvent),
-		withoutError(kl.setNodeReadyCondition),
+		nodestatus.ReadyCondition(kl.clock.Now, kl.runtimeState.runtimeErrors, kl.runtimeState.networkErrors, validateHostFunc, kl.containerManager.Status, kl.recordNodeStatusEvent),
 		withoutError(kl.setNodeVolumesInUseStatus),
 		withoutError(kl.recordNodeSchedulableEvent),
 	}
diff --git a/pkg/kubelet/nodestatus/BUILD b/pkg/kubelet/nodestatus/BUILD
index 0fe196b85b9..a405e615a5c 100644
--- a/pkg/kubelet/nodestatus/BUILD
+++ b/pkg/kubelet/nodestatus/BUILD
@@ -7,10 +7,14 @@ go_library(
     visibility = ["//visibility:public"],
     deps = [
         "//pkg/cloudprovider:go_default_library",
+        "//pkg/features:go_default_library",
         "//pkg/kubelet/apis:go_default_library",
+        "//pkg/kubelet/cm:go_default_library",
+        "//pkg/kubelet/events:go_default_library",
         "//staging/src/k8s.io/api/core/v1:go_default_library",
         "//staging/src/k8s.io/apimachinery/pkg/apis/meta/v1:go_default_library",
         "//staging/src/k8s.io/apimachinery/pkg/util/net:go_default_library",
+        "//staging/src/k8s.io/apiserver/pkg/util/feature:go_default_library",
         "//vendor/github.com/golang/glog:go_default_library",
     ],
 )
@@ -35,8 +39,11 @@ go_test(
     embed = [":go_default_library"],
     deps = [
         "//pkg/cloudprovider/providers/fake:go_default_library",
+        "//pkg/kubelet/cm:go_default_library",
+        "//pkg/kubelet/events:go_default_library",
         "//staging/src/k8s.io/api/core/v1:go_default_library",
         "//staging/src/k8s.io/apimachinery/pkg/api/equality:go_default_library",
+        "//staging/src/k8s.io/apimachinery/pkg/api/resource:go_default_library",
         "//staging/src/k8s.io/apimachinery/pkg/apis/meta/v1:go_default_library",
         "//staging/src/k8s.io/apimachinery/pkg/util/diff:go_default_library",
         "//vendor/github.com/stretchr/testify/assert:go_default_library",
diff --git a/pkg/kubelet/nodestatus/setters.go b/pkg/kubelet/nodestatus/setters.go
index 0a547ba678f..5e0a0ecb29c 100644
--- a/pkg/kubelet/nodestatus/setters.go
+++ b/pkg/kubelet/nodestatus/setters.go
@@ -19,13 +19,18 @@ package nodestatus
 import (
 	"fmt"
 	"net"
+	"strings"
 	"time"
 
 	"k8s.io/api/core/v1"
 	metav1 "k8s.io/apimachinery/pkg/apis/meta/v1"
 	utilnet "k8s.io/apimachinery/pkg/util/net"
+	utilfeature "k8s.io/apiserver/pkg/util/feature"
 	"k8s.io/kubernetes/pkg/cloudprovider"
+	"k8s.io/kubernetes/pkg/features"
 	kubeletapis "k8s.io/kubernetes/pkg/kubelet/apis"
+	"k8s.io/kubernetes/pkg/kubelet/cm"
+	"k8s.io/kubernetes/pkg/kubelet/events"
 
 	"github.com/golang/glog"
 )
@@ -142,6 +147,95 @@ func NodeAddress(nodeIP net.IP, // typically Kubelet.nodeIP
 	}
 }
 
+// ReadyCondition returns a Setter that updates the v1.NodeReady condition on the node.
+func ReadyCondition(
+	nowFunc func() time.Time, // typically Kubelet.clock.Now
+	runtimeErrorsFunc func() []string, // typically Kubelet.runtimeState.runtimeErrors
+	networkErrorsFunc func() []string, // typically Kubelet.runtimeState.networkErrors
+	appArmorValidateHostFunc func() error, // typically Kubelet.appArmorValidator.ValidateHost, might be nil depending on whether there was an appArmorValidator
+	cmStatusFunc func() cm.Status, // typically Kubelet.containerManager.Status
+	recordEventFunc func(eventType, event string), // typically Kubelet.recordNodeStatusEvent
+) Setter {
+	return func(node *v1.Node) error {
+		// NOTE(aaronlevy): NodeReady condition needs to be the last in the list of node conditions.
+		// This is due to an issue with version skewed kubelet and master components.
+		// ref: https://github.com/kubernetes/kubernetes/issues/16961
+		currentTime := metav1.NewTime(nowFunc())
+		newNodeReadyCondition := v1.NodeCondition{
+			Type:              v1.NodeReady,
+			Status:            v1.ConditionTrue,
+			Reason:            "KubeletReady",
+			Message:           "kubelet is posting ready status",
+			LastHeartbeatTime: currentTime,
+		}
+		rs := append(runtimeErrorsFunc(), networkErrorsFunc()...)
+		requiredCapacities := []v1.ResourceName{v1.ResourceCPU, v1.ResourceMemory, v1.ResourcePods}
+		if utilfeature.DefaultFeatureGate.Enabled(features.LocalStorageCapacityIsolation) {
+			requiredCapacities = append(requiredCapacities, v1.ResourceEphemeralStorage)
+		}
+		missingCapacities := []string{}
+		for _, resource := range requiredCapacities {
+			if _, found := node.Status.Capacity[resource]; !found {
+				missingCapacities = append(missingCapacities, string(resource))
+			}
+		}
+		if len(missingCapacities) > 0 {
+			rs = append(rs, fmt.Sprintf("Missing node capacity for resources: %s", strings.Join(missingCapacities, ", ")))
+		}
+		if len(rs) > 0 {
+			newNodeReadyCondition = v1.NodeCondition{
+				Type:              v1.NodeReady,
+				Status:            v1.ConditionFalse,
+				Reason:            "KubeletNotReady",
+				Message:           strings.Join(rs, ","),
+				LastHeartbeatTime: currentTime,
+			}
+		}
+		// Append AppArmor status if it's enabled.
+		// TODO(tallclair): This is a temporary message until node feature reporting is added.
+		if appArmorValidateHostFunc != nil && newNodeReadyCondition.Status == v1.ConditionTrue {
+			if err := appArmorValidateHostFunc(); err == nil {
+				newNodeReadyCondition.Message = fmt.Sprintf("%s. AppArmor enabled", newNodeReadyCondition.Message)
+			}
+		}
+
+		// Record any soft requirements that were not met in the container manager.
+		status := cmStatusFunc()
+		if status.SoftRequirements != nil {
+			newNodeReadyCondition.Message = fmt.Sprintf("%s. WARNING: %s", newNodeReadyCondition.Message, status.SoftRequirements.Error())
+		}
+
+		readyConditionUpdated := false
+		needToRecordEvent := false
+		for i := range node.Status.Conditions {
+			if node.Status.Conditions[i].Type == v1.NodeReady {
+				if node.Status.Conditions[i].Status == newNodeReadyCondition.Status {
+					newNodeReadyCondition.LastTransitionTime = node.Status.Conditions[i].LastTransitionTime
+				} else {
+					newNodeReadyCondition.LastTransitionTime = currentTime
+					needToRecordEvent = true
+				}
+				node.Status.Conditions[i] = newNodeReadyCondition
+				readyConditionUpdated = true
+				break
+			}
+		}
+		if !readyConditionUpdated {
+			newNodeReadyCondition.LastTransitionTime = currentTime
+			node.Status.Conditions = append(node.Status.Conditions, newNodeReadyCondition)
+		}
+		if needToRecordEvent {
+			if newNodeReadyCondition.Status == v1.ConditionTrue {
+				recordEventFunc(v1.EventTypeNormal, events.NodeReady)
+			} else {
+				recordEventFunc(v1.EventTypeNormal, events.NodeNotReady)
+				glog.Infof("Node became not ready: %+v", newNodeReadyCondition)
+			}
+		}
+		return nil
+	}
+}
+
 // MemoryPressureCondition returns a Setter that updates the v1.NodeMemoryPressure condition on the node.
 func MemoryPressureCondition(nowFunc func() time.Time, // typically Kubelet.clock.Now
 	pressureFunc func() bool, // typically Kubelet.evictionManager.IsUnderMemoryPressure
diff --git a/pkg/kubelet/nodestatus/setters_test.go b/pkg/kubelet/nodestatus/setters_test.go
index 19a3180b97b..ee17e2de02a 100644
--- a/pkg/kubelet/nodestatus/setters_test.go
+++ b/pkg/kubelet/nodestatus/setters_test.go
@@ -17,15 +17,20 @@ limitations under the License.
 package nodestatus
 
 import (
+	"fmt"
 	"net"
 	"sort"
 	"testing"
+	"time"
 
 	"k8s.io/api/core/v1"
 	apiequality "k8s.io/apimachinery/pkg/api/equality"
+	"k8s.io/apimachinery/pkg/api/resource"
 	metav1 "k8s.io/apimachinery/pkg/apis/meta/v1"
 	"k8s.io/apimachinery/pkg/util/diff"
 	fakecloud "k8s.io/kubernetes/pkg/cloudprovider/providers/fake"
+	"k8s.io/kubernetes/pkg/kubelet/cm"
+	"k8s.io/kubernetes/pkg/kubelet/events"
 
 	"github.com/stretchr/testify/assert"
 	"github.com/stretchr/testify/require"
@@ -185,6 +190,175 @@ func TestNodeAddress(t *testing.T) {
 	}
 }
 
+func TestReadyCondition(t *testing.T) {
+	now := time.Now()
+	before := now.Add(-time.Second)
+	nowFunc := func() time.Time { return now }
+
+	withCapacity := &v1.Node{
+		Status: v1.NodeStatus{
+			Capacity: v1.ResourceList{
+				v1.ResourceCPU:              *resource.NewMilliQuantity(2000, resource.DecimalSI),
+				v1.ResourceMemory:           *resource.NewQuantity(10E9, resource.BinarySI),
+				v1.ResourcePods:             *resource.NewQuantity(100, resource.DecimalSI),
+				v1.ResourceEphemeralStorage: *resource.NewQuantity(5000, resource.BinarySI),
+			},
+		},
+	}
+
+	cases := []struct {
+		desc                     string
+		node                     *v1.Node
+		runtimeErrors            []string
+		networkErrors            []string
+		appArmorValidateHostFunc func() error
+		cmStatus                 cm.Status
+		expectConditions         []v1.NodeCondition
+		expectEvents             []testEvent
+	}{
+		{
+			desc:             "new, ready",
+			node:             withCapacity.DeepCopy(),
+			expectConditions: []v1.NodeCondition{*makeReadyCondition(true, "kubelet is posting ready status", now, now)},
+			// TODO(mtaufen): The current behavior is that we don't send an event for the initial NodeReady condition,
+			// the reason for this is unclear, so we may want to actually send an event, and change these test cases
+			// to ensure an event is sent.
+		},
+		{
+			desc: "new, ready: apparmor validator passed",
+			node: withCapacity.DeepCopy(),
+			appArmorValidateHostFunc: func() error { return nil },
+			expectConditions:         []v1.NodeCondition{*makeReadyCondition(true, "kubelet is posting ready status. AppArmor enabled", now, now)},
+		},
+		{
+			desc: "new, ready: apparmor validator failed",
+			node: withCapacity.DeepCopy(),
+			appArmorValidateHostFunc: func() error { return fmt.Errorf("foo") },
+			// absence of an additional message is understood to mean that AppArmor is disabled
+			expectConditions: []v1.NodeCondition{*makeReadyCondition(true, "kubelet is posting ready status", now, now)},
+		},
+		{
+			desc: "new, ready: soft requirement warning",
+			node: withCapacity.DeepCopy(),
+			cmStatus: cm.Status{
+				SoftRequirements: fmt.Errorf("foo"),
+			},
+			expectConditions: []v1.NodeCondition{*makeReadyCondition(true, "kubelet is posting ready status. WARNING: foo", now, now)},
+		},
+		{
+			desc:             "new, not ready: runtime errors",
+			node:             withCapacity.DeepCopy(),
+			runtimeErrors:    []string{"foo", "bar"},
+			expectConditions: []v1.NodeCondition{*makeReadyCondition(false, "foo,bar", now, now)},
+		},
+		{
+			desc:             "new, not ready: network errors",
+			node:             withCapacity.DeepCopy(),
+			networkErrors:    []string{"foo", "bar"},
+			expectConditions: []v1.NodeCondition{*makeReadyCondition(false, "foo,bar", now, now)},
+		},
+		{
+			desc:             "new, not ready: runtime and network errors",
+			node:             withCapacity.DeepCopy(),
+			runtimeErrors:    []string{"runtime"},
+			networkErrors:    []string{"network"},
+			expectConditions: []v1.NodeCondition{*makeReadyCondition(false, "runtime,network", now, now)},
+		},
+		{
+			desc:             "new, not ready: missing capacities",
+			node:             &v1.Node{},
+			expectConditions: []v1.NodeCondition{*makeReadyCondition(false, "Missing node capacity for resources: cpu, memory, pods, ephemeral-storage", now, now)},
+		},
+		// the transition tests ensure timestamps are set correctly, no need to test the entire condition matrix in this section
+		{
+			desc: "transition to ready",
+			node: func() *v1.Node {
+				node := withCapacity.DeepCopy()
+				node.Status.Conditions = []v1.NodeCondition{*makeReadyCondition(false, "", before, before)}
+				return node
+			}(),
+			expectConditions: []v1.NodeCondition{*makeReadyCondition(true, "kubelet is posting ready status", now, now)},
+			expectEvents: []testEvent{
+				{
+					eventType: v1.EventTypeNormal,
+					event:     events.NodeReady,
+				},
+			},
+		},
+		{
+			desc: "transition to not ready",
+			node: func() *v1.Node {
+				node := withCapacity.DeepCopy()
+				node.Status.Conditions = []v1.NodeCondition{*makeReadyCondition(true, "", before, before)}
+				return node
+			}(),
+			runtimeErrors:    []string{"foo"},
+			expectConditions: []v1.NodeCondition{*makeReadyCondition(false, "foo", now, now)},
+			expectEvents: []testEvent{
+				{
+					eventType: v1.EventTypeNormal,
+					event:     events.NodeNotReady,
+				},
+			},
+		},
+		{
+			desc: "ready, no transition",
+			node: func() *v1.Node {
+				node := withCapacity.DeepCopy()
+				node.Status.Conditions = []v1.NodeCondition{*makeReadyCondition(true, "", before, before)}
+				return node
+			}(),
+			expectConditions: []v1.NodeCondition{*makeReadyCondition(true, "kubelet is posting ready status", before, now)},
+			expectEvents:     []testEvent{},
+		},
+		{
+			desc: "not ready, no transition",
+			node: func() *v1.Node {
+				node := withCapacity.DeepCopy()
+				node.Status.Conditions = []v1.NodeCondition{*makeReadyCondition(false, "", before, before)}
+				return node
+			}(),
+			runtimeErrors:    []string{"foo"},
+			expectConditions: []v1.NodeCondition{*makeReadyCondition(false, "foo", before, now)},
+			expectEvents:     []testEvent{},
+		},
+	}
+	for _, tc := range cases {
+		t.Run(tc.desc, func(t *testing.T) {
+			runtimeErrorsFunc := func() []string {
+				return tc.runtimeErrors
+			}
+			networkErrorsFunc := func() []string {
+				return tc.networkErrors
+			}
+			cmStatusFunc := func() cm.Status {
+				return tc.cmStatus
+			}
+			events := []testEvent{}
+			recordEventFunc := func(eventType, event string) {
+				events = append(events, testEvent{
+					eventType: eventType,
+					event:     event,
+				})
+			}
+			// construct setter
+			setter := ReadyCondition(nowFunc, runtimeErrorsFunc, networkErrorsFunc, tc.appArmorValidateHostFunc, cmStatusFunc, recordEventFunc)
+			// call setter on node
+			if err := setter(tc.node); err != nil {
+				t.Fatalf("unexpected error: %v", err)
+			}
+			// check expected condition
+			assert.True(t, apiequality.Semantic.DeepEqual(tc.expectConditions, tc.node.Status.Conditions),
+				"Diff: %s", diff.ObjectDiff(tc.expectConditions, tc.node.Status.Conditions))
+			// check expected events
+			require.Equal(t, len(tc.expectEvents), len(events))
+			for i := range tc.expectEvents {
+				assert.Equal(t, tc.expectEvents[i], events[i])
+			}
+		})
+	}
+}
+
 func TestMemoryPressureCondition(t *testing.T) {
 	now := time.Now()
 	before := now.Add(-time.Second)
@@ -569,6 +743,27 @@ type testEvent struct {
 	event     string
 }
 
+func makeReadyCondition(ready bool, message string, transition, heartbeat time.Time) *v1.NodeCondition {
+	if ready {
+		return &v1.NodeCondition{
+			Type:               v1.NodeReady,
+			Status:             v1.ConditionTrue,
+			Reason:             "KubeletReady",
+			Message:            message,
+			LastTransitionTime: metav1.NewTime(transition),
+			LastHeartbeatTime:  metav1.NewTime(heartbeat),
+		}
+	}
+	return &v1.NodeCondition{
+		Type:               v1.NodeReady,
+		Status:             v1.ConditionFalse,
+		Reason:             "KubeletNotReady",
+		Message:            message,
+		LastTransitionTime: metav1.NewTime(transition),
+		LastHeartbeatTime:  metav1.NewTime(heartbeat),
+	}
+}
+
 func makeMemoryPressureCondition(pressure bool, transition, heartbeat time.Time) *v1.NodeCondition {
 	if pressure {
 		return &v1.NodeCondition{