diff --git a/pkg/apis/extensions/types.go b/pkg/apis/extensions/types.go
index 2a18b06e557..fc676ea6a0d 100644
--- a/pkg/apis/extensions/types.go
+++ b/pkg/apis/extensions/types.go
@@ -478,6 +478,10 @@ type DaemonSetStatus struct {
 	// NumberReady is the number of nodes that should be running the daemon pod and have one
 	// or more of the daemon pod running and ready.
 	NumberReady int32
+
+	// ObservedGeneration is the most recent generation observed by the daemon set controller.
+	// +optional
+	ObservedGeneration int64
 }
 
 // +genclient=true
diff --git a/pkg/apis/extensions/v1beta1/types.go b/pkg/apis/extensions/v1beta1/types.go
index eb687f0adc8..37212fcf9b8 100644
--- a/pkg/apis/extensions/v1beta1/types.go
+++ b/pkg/apis/extensions/v1beta1/types.go
@@ -568,6 +568,10 @@ type DaemonSetStatus struct {
 	// NumberReady is the number of nodes that should be running the daemon pod and have one
 	// or more of the daemon pod running and ready.
 	NumberReady int32 `json:"numberReady" protobuf:"varint,4,opt,name=numberReady"`
+
+	// ObservedGeneration is the most recent generation observed by the daemon set controller.
+	// +optional
+	ObservedGeneration int64 `json:"observedGeneration,omitempty" protobuf:"varint,5,opt,name=observedGeneration"`
 }
 
 // +genclient=true
diff --git a/pkg/apis/extensions/validation/validation.go b/pkg/apis/extensions/validation/validation.go
index 9434163f7ba..8b03025e877 100644
--- a/pkg/apis/extensions/validation/validation.go
+++ b/pkg/apis/extensions/validation/validation.go
@@ -109,6 +109,7 @@ func validateDaemonSetStatus(status *extensions.DaemonSetStatus, fldPath *field.
 	allErrs = append(allErrs, apivalidation.ValidateNonnegativeField(int64(status.NumberMisscheduled), fldPath.Child("numberMisscheduled"))...)
 	allErrs = append(allErrs, apivalidation.ValidateNonnegativeField(int64(status.DesiredNumberScheduled), fldPath.Child("desiredNumberScheduled"))...)
 	allErrs = append(allErrs, apivalidation.ValidateNonnegativeField(int64(status.NumberReady), fldPath.Child("numberReady"))...)
+	allErrs = append(allErrs, apivalidation.ValidateNonnegativeField(status.ObservedGeneration, fldPath.Child("observedGeneration"))...)
 	return allErrs
 }
 
diff --git a/pkg/apis/extensions/validation/validation_test.go b/pkg/apis/extensions/validation/validation_test.go
index cb0ca2a98c3..173fb2c8cb6 100644
--- a/pkg/apis/extensions/validation/validation_test.go
+++ b/pkg/apis/extensions/validation/validation_test.go
@@ -80,6 +80,7 @@ func TestValidateDaemonSetStatusUpdate(t *testing.T) {
 					NumberMisscheduled:     2,
 					DesiredNumberScheduled: 3,
 					NumberReady:            1,
+					ObservedGeneration:     3,
 				},
 			},
 			update: extensions.DaemonSet{
@@ -93,6 +94,7 @@ func TestValidateDaemonSetStatusUpdate(t *testing.T) {
 					NumberMisscheduled:     -1,
 					DesiredNumberScheduled: -3,
 					NumberReady:            -1,
+					ObservedGeneration:     -3,
 				},
 			},
 		},
@@ -108,6 +110,7 @@ func TestValidateDaemonSetStatusUpdate(t *testing.T) {
 					NumberMisscheduled:     2,
 					DesiredNumberScheduled: 3,
 					NumberReady:            1,
+					ObservedGeneration:     3,
 				},
 			},
 			update: extensions.DaemonSet{
@@ -121,6 +124,7 @@ func TestValidateDaemonSetStatusUpdate(t *testing.T) {
 					NumberMisscheduled:     1,
 					DesiredNumberScheduled: 3,
 					NumberReady:            1,
+					ObservedGeneration:     3,
 				},
 			},
 		},
@@ -136,6 +140,7 @@ func TestValidateDaemonSetStatusUpdate(t *testing.T) {
 					NumberMisscheduled:     2,
 					DesiredNumberScheduled: 3,
 					NumberReady:            1,
+					ObservedGeneration:     3,
 				},
 			},
 			update: extensions.DaemonSet{
@@ -149,6 +154,7 @@ func TestValidateDaemonSetStatusUpdate(t *testing.T) {
 					NumberMisscheduled:     -1,
 					DesiredNumberScheduled: 3,
 					NumberReady:            1,
+					ObservedGeneration:     3,
 				},
 			},
 		},
@@ -164,6 +170,7 @@ func TestValidateDaemonSetStatusUpdate(t *testing.T) {
 					NumberMisscheduled:     2,
 					DesiredNumberScheduled: 3,
 					NumberReady:            1,
+					ObservedGeneration:     3,
 				},
 			},
 			update: extensions.DaemonSet{
@@ -177,6 +184,7 @@ func TestValidateDaemonSetStatusUpdate(t *testing.T) {
 					NumberMisscheduled:     1,
 					DesiredNumberScheduled: -3,
 					NumberReady:            1,
+					ObservedGeneration:     3,
 				},
 			},
 		},
@@ -192,6 +200,7 @@ func TestValidateDaemonSetStatusUpdate(t *testing.T) {
 					NumberMisscheduled:     2,
 					DesiredNumberScheduled: 3,
 					NumberReady:            1,
+					ObservedGeneration:     3,
 				},
 			},
 			update: extensions.DaemonSet{
@@ -205,6 +214,37 @@ func TestValidateDaemonSetStatusUpdate(t *testing.T) {
 					NumberMisscheduled:     1,
 					DesiredNumberScheduled: 3,
 					NumberReady:            -1,
+					ObservedGeneration:     3,
+				},
+			},
+		},
+		"negative ObservedGeneration": {
+			old: extensions.DaemonSet{
+				ObjectMeta: api.ObjectMeta{
+					Name:            "abc",
+					Namespace:       api.NamespaceDefault,
+					ResourceVersion: "10",
+				},
+				Status: extensions.DaemonSetStatus{
+					CurrentNumberScheduled: 1,
+					NumberMisscheduled:     2,
+					DesiredNumberScheduled: 3,
+					NumberReady:            1,
+					ObservedGeneration:     3,
+				},
+			},
+			update: extensions.DaemonSet{
+				ObjectMeta: api.ObjectMeta{
+					Name:            "abc",
+					Namespace:       api.NamespaceDefault,
+					ResourceVersion: "10",
+				},
+				Status: extensions.DaemonSetStatus{
+					CurrentNumberScheduled: 1,
+					NumberMisscheduled:     1,
+					DesiredNumberScheduled: 3,
+					NumberReady:            1,
+					ObservedGeneration:     -3,
 				},
 			},
 		},
diff --git a/pkg/controller/daemon/daemoncontroller.go b/pkg/controller/daemon/daemoncontroller.go
index f5de5acbd10..af8d747516f 100644
--- a/pkg/controller/daemon/daemoncontroller.go
+++ b/pkg/controller/daemon/daemoncontroller.go
@@ -540,7 +540,8 @@ func storeDaemonSetStatus(dsClient unversionedextensions.DaemonSetInterface, ds
 	if int(ds.Status.DesiredNumberScheduled) == desiredNumberScheduled &&
 		int(ds.Status.CurrentNumberScheduled) == currentNumberScheduled &&
 		int(ds.Status.NumberMisscheduled) == numberMisscheduled &&
-		int(ds.Status.NumberReady) == numberReady {
+		int(ds.Status.NumberReady) == numberReady &&
+		ds.Status.ObservedGeneration >= ds.Generation {
 		return nil
 	}
 
@@ -553,6 +554,7 @@ func storeDaemonSetStatus(dsClient unversionedextensions.DaemonSetInterface, ds
 
 	var updateErr, getErr error
 	for i := 0; i < StatusUpdateRetries; i++ {
+		toUpdate.Status.ObservedGeneration = ds.Generation
 		toUpdate.Status.DesiredNumberScheduled = int32(desiredNumberScheduled)
 		toUpdate.Status.CurrentNumberScheduled = int32(currentNumberScheduled)
 		toUpdate.Status.NumberMisscheduled = int32(numberMisscheduled)
diff --git a/pkg/controller/daemon/daemoncontroller_test.go b/pkg/controller/daemon/daemoncontroller_test.go
index 904fd940fec..ab8fb5b03d4 100644
--- a/pkg/controller/daemon/daemoncontroller_test.go
+++ b/pkg/controller/daemon/daemoncontroller_test.go
@@ -609,3 +609,28 @@ func TestNumberReadyStatus(t *testing.T) {
 		t.Errorf("Wrong daemon %s status: %v", updated.Name, updated.Status)
 	}
 }
+
+func TestObservedGeneration(t *testing.T) {
+	daemon := newDaemonSet("foo")
+	daemon.Generation = 1
+	manager, podControl, clientset := newTestController()
+	var updated *extensions.DaemonSet
+	clientset.PrependReactor("update", "daemonsets", func(action core.Action) (handled bool, ret runtime.Object, err error) {
+		if action.GetSubresource() != "status" {
+			return false, nil, nil
+		}
+		if u, ok := action.(core.UpdateAction); ok {
+			updated = u.GetObject().(*extensions.DaemonSet)
+		}
+		return false, nil, nil
+	})
+
+	addNodes(manager.nodeStore.Store, 0, 1, simpleNodeLabel)
+	addPods(manager.podStore.Indexer, "node-0", simpleDaemonSetLabel, 1)
+	manager.dsStore.Add(daemon)
+
+	syncAndValidateDaemonSets(t, manager, daemon, podControl, 0, 0)
+	if updated.Status.ObservedGeneration != daemon.Generation {
+		t.Errorf("Wrong ObservedGeneration for daemon %s in status. Expected %d, got %d", updated.Name, daemon.Generation, updated.Status.ObservedGeneration)
+	}
+}