diff --git a/pkg/controller/daemon/daemon_controller.go b/pkg/controller/daemon/daemon_controller.go
index 1fedc7b1c5f..3a5072923e9 100644
--- a/pkg/controller/daemon/daemon_controller.go
+++ b/pkg/controller/daemon/daemon_controller.go
@@ -1068,7 +1068,7 @@ func storeDaemonSetStatus(dsClient unversionedapps.DaemonSetInterface, ds *apps.
 	toUpdate := ds.DeepCopy()
 
 	var updateErr, getErr error
-	for i := 0; i < StatusUpdateRetries; i++ {
+	for i := 0; ; i++ {
 		if updateObservedGen {
 			toUpdate.Status.ObservedGeneration = ds.Generation
 		}
@@ -1084,6 +1084,10 @@ func storeDaemonSetStatus(dsClient unversionedapps.DaemonSetInterface, ds *apps.
 			return nil
 		}
 
+		// Stop retrying if we exceed statusUpdateRetries - the DaemonSet will be requeued with a rate limit.
+		if i >= StatusUpdateRetries {
+			break
+		}
 		// Update the set with the latest resource version for the next poll
 		if toUpdate, getErr = dsClient.Get(context.TODO(), ds.Name, metav1.GetOptions{}); getErr != nil {
 			// If the GET fails we can't trust status.Replicas anymore. This error
diff --git a/pkg/controller/daemon/daemon_controller_test.go b/pkg/controller/daemon/daemon_controller_test.go
index ea9fbc21ffe..2d81e73ae4a 100644
--- a/pkg/controller/daemon/daemon_controller_test.go
+++ b/pkg/controller/daemon/daemon_controller_test.go
@@ -3284,3 +3284,80 @@ func TestSurgeDeletesOldReadyWithUnsatisfiedMinReady(t *testing.T) {
 		t.Errorf("unexpected deletes\nexpected: %v\n  actual: %v", expected.List(), actual.List())
 	}
 }
+
+func TestStoreDaemonSetStatus(t *testing.T) {
+	getError := fmt.Errorf("fake get error")
+	updateError := fmt.Errorf("fake update error")
+	tests := []struct {
+		name                 string
+		updateErrorNum       int
+		getErrorNum          int
+		expectedUpdateCalled int
+		expectedGetCalled    int
+		expectedError        error
+	}{
+		{
+			name:                 "succeed immediately",
+			updateErrorNum:       0,
+			getErrorNum:          0,
+			expectedUpdateCalled: 1,
+			expectedGetCalled:    0,
+			expectedError:        nil,
+		},
+		{
+			name:                 "succeed after one update failure",
+			updateErrorNum:       1,
+			getErrorNum:          0,
+			expectedUpdateCalled: 2,
+			expectedGetCalled:    1,
+			expectedError:        nil,
+		},
+		{
+			name:                 "fail after two update failures",
+			updateErrorNum:       2,
+			getErrorNum:          0,
+			expectedUpdateCalled: 2,
+			expectedGetCalled:    1,
+			expectedError:        updateError,
+		},
+		{
+			name:                 "fail after one update failure and one get failure",
+			updateErrorNum:       1,
+			getErrorNum:          1,
+			expectedUpdateCalled: 1,
+			expectedGetCalled:    1,
+			expectedError:        getError,
+		},
+	}
+	for _, tt := range tests {
+		t.Run(tt.name, func(t *testing.T) {
+			ds := newDaemonSet("foo")
+			fakeClient := &fake.Clientset{}
+			getCalled := 0
+			fakeClient.AddReactor("get", "daemonsets", func(action core.Action) (bool, runtime.Object, error) {
+				getCalled += 1
+				if getCalled <= tt.getErrorNum {
+					return true, nil, getError
+				}
+				return true, ds, nil
+			})
+			updateCalled := 0
+			fakeClient.AddReactor("update", "daemonsets", func(action core.Action) (bool, runtime.Object, error) {
+				updateCalled += 1
+				if updateCalled <= tt.updateErrorNum {
+					return true, nil, updateError
+				}
+				return true, ds, nil
+			})
+			if err := storeDaemonSetStatus(fakeClient.AppsV1().DaemonSets("default"), ds, 2, 2, 2, 2, 2, 2, 2, true); err != tt.expectedError {
+				t.Errorf("storeDaemonSetStatus() got %v, expected %v", err, tt.expectedError)
+			}
+			if getCalled != tt.expectedGetCalled {
+				t.Errorf("Get() was called %v times, expected %v times", getCalled, tt.expectedGetCalled)
+			}
+			if updateCalled != tt.expectedUpdateCalled {
+				t.Errorf("UpdateStatus() was called %v times, expected %v times", updateCalled, tt.expectedUpdateCalled)
+			}
+		})
+	}
+}