diff --git a/pkg/serviceprovider/apireconciler.go b/pkg/serviceprovider/apireconciler.go
index 75475b8..869319a 100644
--- a/pkg/serviceprovider/apireconciler.go
+++ b/pkg/serviceprovider/apireconciler.go
@@ -14,6 +14,7 @@ import (
 	apierrors "k8s.io/apimachinery/pkg/api/errors"
 	"k8s.io/apimachinery/pkg/apis/meta/v1/unstructured"
 	ctrl "sigs.k8s.io/controller-runtime"
+	"sigs.k8s.io/controller-runtime/pkg/builder"
 	"sigs.k8s.io/controller-runtime/pkg/client"
 	"sigs.k8s.io/controller-runtime/pkg/client/apiutil"
 	"sigs.k8s.io/controller-runtime/pkg/controller/controllerutil"
@@ -397,7 +398,19 @@ func (r *APIReconciler[T, C]) SetupWithManager(mgr ctrl.Manager, providerName st
 	}
 	r.providerName = providerName
 	controller := ctrl.NewControllerManagedBy(mgr).
-		For(r.emptyObj()).
+		For(r.emptyObj(), builder.WithPredicates(
+			predicate.And(
+				predicate.Or(
+					predicate.GenerationChangedPredicate{},
+					controllerutil2.DeletionTimestampChangedPredicate{},
+					predicate.LabelChangedPredicate{},
+					predicate.AnnotationChangedPredicate{},
+				),
+				predicate.Not(
+					controllerutil2.HasAnnotationPredicate(apiconst.OperationAnnotation, apiconst.OperationAnnotationValueIgnore),
+				),
+			),
+		)).
 		// add provider config watch
 		WatchesRawSource(source.Kind(
 			r.platformCluster.Cluster().GetCache(),
diff --git a/pkg/serviceprovider/apireconciler_test.go b/pkg/serviceprovider/apireconciler_test.go
index db57f58..36f9f5b 100644
--- a/pkg/serviceprovider/apireconciler_test.go
+++ b/pkg/serviceprovider/apireconciler_test.go
@@ -1295,9 +1295,6 @@ var _ = Describe("API Reconciler", func() {
 				Expect(onboardingClient.Get(ctx, fooKey, foo)).To(Succeed())
 				return foo.Status
 			}).Should(HaveField("Phase", Equal("Ready")))
-			// consume the finalizer/status update reconcile request to have a quiet update channel for the following test.
-			// depending on reconciliation timing, the provider config update could otherwise be picked up by during the reconcile request caused by the primary watch.
-			Eventually(reconciler.createOrUpdateConfig).Should(Receive())
 		})
 
 		It("The Foo resource is reconciled when the provider config changes", func() {