diff --git a/staging/src/k8s.io/component-helpers/apimachinery/lease/controller.go b/staging/src/k8s.io/component-helpers/apimachinery/lease/controller.go
index 843eb36133c..282eeea2426 100644
--- a/staging/src/k8s.io/component-helpers/apimachinery/lease/controller.go
+++ b/staging/src/k8s.io/component-helpers/apimachinery/lease/controller.go
@@ -65,9 +65,8 @@ type controller struct {
 	latestLease *coordinationv1.Lease
 
 	// newLeasePostProcessFunc allows customizing a lease object (e.g. setting OwnerReference)
-	// before every time the lease is created/refreshed(updated). Note that an error will block
-	// a lease CREATE, causing the controller to retry next time, but an error won't block a
-	// lease UPDATE.
+	// before every time the lease is created/refreshed(updated).
+	// Note that an error will block the lease operation.
 	newLeasePostProcessFunc ProcessLeaseFunc
 }
 
@@ -184,17 +183,21 @@ func (c *controller) ensureLease(ctx context.Context) (*coordinationv1.Lease, bo
 // call this once you're sure the lease has been created
 func (c *controller) retryUpdateLease(ctx context.Context, base *coordinationv1.Lease) error {
 	for i := 0; i < maxUpdateRetries; i++ {
-		leaseToUpdate, _ := c.newLease(base)
-		lease, err := c.leaseClient.Update(ctx, leaseToUpdate, metav1.UpdateOptions{})
-		if err == nil {
-			c.latestLease = lease
-			return nil
-		}
-		klog.FromContext(ctx).Error(err, "Failed to update lease")
-		// OptimisticLockError requires getting the newer version of lease to proceed.
-		if apierrors.IsConflict(err) {
-			base, _ = c.backoffEnsureLease(ctx)
-			continue
+		leaseToUpdate, err := c.newLease(base)
+		if err != nil {
+			klog.FromContext(ctx).Error(err, "Failed to prepare lease")
+		} else {
+			lease, err := c.leaseClient.Update(ctx, leaseToUpdate, metav1.UpdateOptions{})
+			if err == nil {
+				c.latestLease = lease
+				return nil
+			}
+			klog.FromContext(ctx).Error(err, "Failed to update lease")
+			// OptimisticLockError requires getting the newer version of lease to proceed.
+			if apierrors.IsConflict(err) {
+				base, _ = c.backoffEnsureLease(ctx)
+				continue
+			}
 		}
 		if i > 0 && c.onRepeatedHeartbeatFailure != nil {
 			c.onRepeatedHeartbeatFailure()
diff --git a/staging/src/k8s.io/component-helpers/apimachinery/lease/controller_test.go b/staging/src/k8s.io/component-helpers/apimachinery/lease/controller_test.go
index 42ab50efe5e..2729ba8edfa 100644
--- a/staging/src/k8s.io/component-helpers/apimachinery/lease/controller_test.go
+++ b/staging/src/k8s.io/component-helpers/apimachinery/lease/controller_test.go
@@ -227,6 +227,7 @@ func TestRetryUpdateNodeLease(t *testing.T) {
 		getReactor                 func(action clienttesting.Action) (bool, runtime.Object, error)
 		onRepeatedHeartbeatFailure func()
 		expectErr                  bool
+		client                     *fake.Clientset
 	}{
 		{
 			desc: "no errors",
@@ -236,6 +237,7 @@ func TestRetryUpdateNodeLease(t *testing.T) {
 			getReactor:                 nil,
 			onRepeatedHeartbeatFailure: nil,
 			expectErr:                  false,
+			client:                     fake.NewSimpleClientset(node),
 		},
 		{
 			desc: "connection errors",
@@ -245,6 +247,7 @@ func TestRetryUpdateNodeLease(t *testing.T) {
 			getReactor:                 nil,
 			onRepeatedHeartbeatFailure: nil,
 			expectErr:                  true,
+			client:                     fake.NewSimpleClientset(node),
 		},
 		{
 			desc: "optimistic lock errors",
@@ -267,12 +270,24 @@ func TestRetryUpdateNodeLease(t *testing.T) {
 			},
 			onRepeatedHeartbeatFailure: func() { t.Fatalf("onRepeatedHeartbeatFailure called") },
 			expectErr:                  false,
+			client:                     fake.NewSimpleClientset(node),
+		},
+		{
+			desc: "node not found errors",
+			updateReactor: func(action clienttesting.Action) (bool, runtime.Object, error) {
+				t.Fatalf("lease was updated when node does not exist!")
+				return true, nil, nil
+			},
+			getReactor:                 nil,
+			onRepeatedHeartbeatFailure: nil,
+			expectErr:                  true,
+			client:                     fake.NewSimpleClientset(),
 		},
 	}
 	for _, tc := range cases {
 		t.Run(tc.desc, func(t *testing.T) {
 			_, ctx := ktesting.NewTestContext(t)
-			cl := fake.NewSimpleClientset(node)
+			cl := tc.client
 			if tc.updateReactor != nil {
 				cl.PrependReactor("update", "leases", tc.updateReactor)
 			}