diff --git a/staging/src/k8s.io/apiextensions-apiserver/pkg/apiserver/customresource_discovery_controller.go b/staging/src/k8s.io/apiextensions-apiserver/pkg/apiserver/customresource_discovery_controller.go
index 865d9389b3c..1e8ffbc69ca 100644
--- a/staging/src/k8s.io/apiextensions-apiserver/pkg/apiserver/customresource_discovery_controller.go
+++ b/staging/src/k8s.io/apiextensions-apiserver/pkg/apiserver/customresource_discovery_controller.go
@@ -320,7 +320,8 @@ func (c *DiscoveryController) Run(stopCh <-chan struct{}, synchedCh chan<- struc
 			utilruntime.HandleError(fmt.Errorf("timed out waiting for initial discovery sync"))
 			return
 		}
-		panic(fmt.Errorf("unexpected error: %v", err))
+		utilruntime.HandleError(fmt.Errorf("unexpected error: %w", err))
+		return
 	}
 	close(synchedCh)