diff --git a/components/kserve/kserve.go b/components/kserve/kserve.go
index 0459895d005..b5e1de72ffb 100644
--- a/components/kserve/kserve.go
+++ b/components/kserve/kserve.go
@@ -108,13 +108,8 @@ func (k *Kserve) ReconcileComponent(ctx context.Context, cli client.Client, resC
 				return err
 			}
 		}
-		// check on dependent operators if all installed in cluster
-		dependOpsErrors := checkDependentOperators(cli).ErrorOrNil()
-		if dependOpsErrors != nil {
-			return dependOpsErrors
-		}
 
-		if err := k.configureServerless(dscispec); err != nil {
+		if err := k.configureServerless(cli, dscispec); err != nil {
 			return err
 		}
 
@@ -175,7 +170,7 @@ func (k *Kserve) Cleanup(_ client.Client, instance *dsciv1.DSCInitializationSpec
 	return k.removeServiceMeshConfigurations(instance)
 }
 
-func (k *Kserve) configureServerless(instance *dsciv1.DSCInitializationSpec) error {
+func (k *Kserve) configureServerless(cli client.Client, instance *dsciv1.DSCInitializationSpec) error {
 	switch k.Serving.ManagementState {
 	case operatorv1.Unmanaged: // Bring your own CR
 		fmt.Println("Serverless CR is not configured by the operator, we won't do anything")
@@ -192,6 +187,12 @@ func (k *Kserve) configureServerless(instance *dsciv1.DSCInitializationSpec) err
 			return fmt.Errorf("ServiceMesh is need to set to 'Managed' in DSCI CR, it is required by KServe serving field")
 		}
 
+		// check on dependent operators if all installed in cluster
+		dependOpsErrors := checkDependentOperators(cli).ErrorOrNil()
+		if dependOpsErrors != nil {
+			return dependOpsErrors
+		}
+
 		serverlessFeatures := feature.ComponentFeaturesHandler(k, instance, k.configureServerlessFeatures())
 
 		if err := serverlessFeatures.Apply(); err != nil {
diff --git a/tests/e2e/dsc_creation_test.go b/tests/e2e/dsc_creation_test.go
index c68c5419367..41736d4d6e3 100644
--- a/tests/e2e/dsc_creation_test.go
+++ b/tests/e2e/dsc_creation_test.go
@@ -241,14 +241,12 @@ func (tc *testContext) testAllApplicationCreation(t *testing.T) error { //nolint
 		// speed testing in parallel
 		t.Parallel()
 		err = tc.testApplicationCreation(&(tc.testDsc.Spec.Components.Kserve))
+		// test Unmanaged state, since servicemesh is not installed.
 		if tc.testDsc.Spec.Components.Kserve.ManagementState == operatorv1.Managed {
-			if err != nil {
-				// depedent operator error, as expected
-				if strings.Contains(err.Error(), "Please install the operator before enabling component") {
-					t.Logf("expected error: %v", err.Error())
-				} else {
-					require.NoError(t, err, "error validating application %v when enabled", tc.testDsc.Spec.Components.Kserve.GetComponentName())
-				}
+			if err != nil && tc.testDsc.Spec.Components.Kserve.Serving.ManagementState == operatorv1.Unmanaged {
+				require.NoError(t, err, "error validating application %v when enabled", tc.testDsc.Spec.Components.Workbenches.GetComponentName())
+			} else {
+				require.NoError(t, err, "error validating application %v when enabled", tc.testDsc.Spec.Components.Kserve.GetComponentName())
 			}
 		} else {
 			require.Error(t, err, "error validating application %v when disabled", tc.testDsc.Spec.Components.Kserve.GetComponentName())
diff --git a/tests/e2e/helper_test.go b/tests/e2e/helper_test.go
index 40d22fb67a2..c48fe448727 100644
--- a/tests/e2e/helper_test.go
+++ b/tests/e2e/helper_test.go
@@ -26,6 +26,7 @@ import (
 	"github.com/opendatahub-io/opendatahub-operator/v2/components/ray"
 	"github.com/opendatahub-io/opendatahub-operator/v2/components/trustyai"
 	"github.com/opendatahub-io/opendatahub-operator/v2/components/workbenches"
+	infrav1 "github.com/opendatahub-io/opendatahub-operator/v2/infrastructure/v1"
 )
 
 func (tc *testContext) waitForControllerDeployment(name string, replicas int32) error {
@@ -108,6 +109,9 @@ func setupDSCInstance(name string) *dsc.DataScienceCluster {
 					Component: components.Component{
 						ManagementState: operatorv1.Managed,
 					},
+					Serving: infrav1.ServingSpec{
+						ManagementState: operatorv1.Unmanaged,
+					},
 				},
 				CodeFlare: codeflare.CodeFlare{
 					Component: components.Component{