diff --git a/controller/appcontroller.go b/controller/appcontroller.go
index 10319671368e3..d4efd9a88a176 100644
--- a/controller/appcontroller.go
+++ b/controller/appcontroller.go
@@ -529,6 +529,9 @@ func (ctrl *ApplicationController) refreshAppConditions(app *appv1.Application)
 // setApplicationHealth updates the health statuses of all resources performed in the comparison
 func setApplicationHealth(comparisonResult *appv1.ComparisonResult) (*appv1.HealthStatus, error) {
 	appHealth := appv1.HealthStatus{Status: appv1.HealthStatusHealthy}
+	if comparisonResult.Status == appv1.ComparisonStatusUnknown {
+		appHealth.Status = appv1.HealthStatusUnknown
+	}
 	for i, resource := range comparisonResult.Resources {
 		if resource.LiveState == "null" {
 			resource.Health = appv1.HealthStatus{Status: appv1.HealthStatusMissing}
diff --git a/controller/state.go b/controller/state.go
index 42ad48634fe3e..d9bff89c44f36 100644
--- a/controller/state.go
+++ b/controller/state.go
@@ -207,11 +207,13 @@ func (s *ksonnetAppStateManager) getLiveObjs(app *v1alpha1.Application, targetOb
 func (s *ksonnetAppStateManager) CompareAppState(app *v1alpha1.Application, revision string, overrides []v1alpha1.ComponentParameter) (
 	*v1alpha1.ComparisonResult, *repository.ManifestResponse, []v1alpha1.ApplicationCondition, error) {
 
+	failedToLoadObjs := false
 	conditions := make([]v1alpha1.ApplicationCondition, 0)
 	targetObjs, manifestInfo, err := s.getTargetObjs(app, revision, overrides)
 	if err != nil {
 		targetObjs = make([]*unstructured.Unstructured, 0)
 		conditions = append(conditions, v1alpha1.ApplicationCondition{Type: v1alpha1.ApplicationConditionComparisonError, Message: err.Error()})
+		failedToLoadObjs = true
 	}
 
 	controlledLiveObj, liveObjByFullName, err := s.getLiveObjs(app, targetObjs)
@@ -219,6 +221,7 @@ func (s *ksonnetAppStateManager) CompareAppState(app *v1alpha1.Application, revi
 		controlledLiveObj = make([]*unstructured.Unstructured, len(targetObjs))
 		liveObjByFullName = make(map[string]*unstructured.Unstructured)
 		conditions = append(conditions, v1alpha1.ApplicationCondition{Type: v1alpha1.ApplicationConditionComparisonError, Message: err.Error()})
+		failedToLoadObjs = true
 	}
 
 	for _, liveObj := range controlledLiveObj {
@@ -305,6 +308,9 @@ func (s *ksonnetAppStateManager) CompareAppState(app *v1alpha1.Application, revi
 			resources[i] = resource
 		}
 	}
+	if failedToLoadObjs {
+		comparisonStatus = v1alpha1.ComparisonStatusUnknown
+	}
 	compResult := v1alpha1.ComparisonResult{
 		ComparedTo: app.Spec.Source,
 		ComparedAt: metav1.Time{Time: time.Now().UTC()},
diff --git a/pkg/apis/application/v1alpha1/types.go b/pkg/apis/application/v1alpha1/types.go
index 63340f3b52265..ceeabddb5eea4 100644
--- a/pkg/apis/application/v1alpha1/types.go
+++ b/pkg/apis/application/v1alpha1/types.go
@@ -301,7 +301,7 @@ type HealthStatus struct {
 type HealthStatusCode = string
 
 const (
-	HealthStatusUnknown     = ""
+	HealthStatusUnknown     = "Unknown"
 	HealthStatusProgressing = "Progressing"
 	HealthStatusHealthy     = "Healthy"
 	HealthStatusDegraded    = "Degraded"