diff --git a/api/kyverno/v2alpha1/global_context_entry_types.go b/api/kyverno/v2alpha1/global_context_entry_types.go
index 2273a8c955..f25ed08b9a 100644
--- a/api/kyverno/v2alpha1/global_context_entry_types.go
+++ b/api/kyverno/v2alpha1/global_context_entry_types.go
@@ -28,6 +28,8 @@ import (
 // +kubebuilder:object:root=true
 // +k8s:deepcopy-gen:interfaces=k8s.io/apimachinery/pkg/runtime.Object
 // +kubebuilder:resource:shortName=gctxentry,categories=kyverno,scope="Cluster"
+// +kubebuilder:subresource:status
+// +kubebuilder:printcolumn:name="READY",type=string,JSONPath=`.status.conditions[?(@.type == "Ready")].status`
 
 // GlobalContextEntry declares resources to be cached.
 type GlobalContextEntry struct {
diff --git a/charts/kyverno/charts/crds/templates/kyverno.io/kyverno.io_globalcontextentries.yaml b/charts/kyverno/charts/crds/templates/kyverno.io/kyverno.io_globalcontextentries.yaml
index 7c6fb2e581..fed7a39165 100644
--- a/charts/kyverno/charts/crds/templates/kyverno.io/kyverno.io_globalcontextentries.yaml
+++ b/charts/kyverno/charts/crds/templates/kyverno.io/kyverno.io_globalcontextentries.yaml
@@ -24,7 +24,11 @@ spec:
     singular: globalcontextentry
   scope: Cluster
   versions:
-  - name: v2alpha1
+  - additionalPrinterColumns:
+    - jsonPath: .status.conditions[?(@.type == "Ready")].status
+      name: READY
+      type: string
+    name: v2alpha1
     schema:
       openAPIV3Schema:
         description: GlobalContextEntry declares resources to be cached.
@@ -199,4 +203,6 @@ spec:
         type: object
     served: true
     storage: true
+    subresources:
+      status: {}
 {{- end }}
diff --git a/charts/kyverno/templates/admission-controller/clusterrole.yaml b/charts/kyverno/templates/admission-controller/clusterrole.yaml
index 4b5e5b6855..4ea7088614 100644
--- a/charts/kyverno/templates/admission-controller/clusterrole.yaml
+++ b/charts/kyverno/templates/admission-controller/clusterrole.yaml
@@ -60,6 +60,8 @@ rules:
       - clusterpolicies/status
       - updaterequests
       - updaterequests/status
+      - globalcontextentries
+      - globalcontextentries/status
       - admissionreports
       - clusteradmissionreports
       - backgroundscanreports
@@ -74,13 +76,6 @@ rules:
       - update
       - watch
       - deletecollection
-  - apiGroups:
-      - kyverno.io
-    resources:
-      - globalcontextentries
-    verbs:
-      - list
-      - watch
   - apiGroups:
       - reports.kyverno.io
     resources:
diff --git a/charts/kyverno/templates/admission-controller/flowschema.yaml b/charts/kyverno/templates/admission-controller/flowschema.yaml
index ecad34df23..8bb6f52311 100644
--- a/charts/kyverno/templates/admission-controller/flowschema.yaml
+++ b/charts/kyverno/templates/admission-controller/flowschema.yaml
@@ -50,6 +50,8 @@ spec:
       resources:
         - clusterpolicies
         - clusterpolicies/status
+        - globalcontextentries
+        - globalcontextentries/status
         - clusteradmissionreports
         - clusterbackgroundscanreports
       verbs:
diff --git a/charts/kyverno/templates/background-controller/clusterrole.yaml b/charts/kyverno/templates/background-controller/clusterrole.yaml
index 47400d4c12..2c47558136 100644
--- a/charts/kyverno/templates/background-controller/clusterrole.yaml
+++ b/charts/kyverno/templates/background-controller/clusterrole.yaml
@@ -32,6 +32,8 @@ rules:
       - policyexceptions
       - updaterequests
       - updaterequests/status
+      - globalcontextentries
+      - globalcontextentries/status
     verbs:
       - create
       - delete
@@ -41,13 +43,6 @@ rules:
       - update
       - watch
       - deletecollection
-  - apiGroups:
-      - kyverno.io
-    resources:
-      - globalcontextentries
-    verbs:
-      - list
-      - watch
   - apiGroups:
       - ''
     resources:
diff --git a/charts/kyverno/templates/cleanup-controller/clusterrole.yaml b/charts/kyverno/templates/cleanup-controller/clusterrole.yaml
index 42b1404694..4584dba1c5 100644
--- a/charts/kyverno/templates/cleanup-controller/clusterrole.yaml
+++ b/charts/kyverno/templates/cleanup-controller/clusterrole.yaml
@@ -55,9 +55,16 @@ rules:
       - kyverno.io
     resources:
       - globalcontextentries
+      - globalcontextentries/status
     verbs:
+      - create
+      - delete
+      - get
       - list
+      - patch
+      - update
       - watch
+      - deletecollection
   - apiGroups:
       - kyverno.io
     resources:
diff --git a/charts/kyverno/templates/reports-controller/clusterrole.yaml b/charts/kyverno/templates/reports-controller/clusterrole.yaml
index 3ddb7465e3..45bccb9c2c 100644
--- a/charts/kyverno/templates/reports-controller/clusterrole.yaml
+++ b/charts/kyverno/templates/reports-controller/clusterrole.yaml
@@ -38,12 +38,7 @@ rules:
       - kyverno.io
     resources:
       - globalcontextentries
-    verbs:
-      - list
-      - watch
-  - apiGroups:
-      - kyverno.io
-    resources:
+      - globalcontextentries/status
       - admissionreports
       - clusteradmissionreports
       - backgroundscanreports
diff --git a/cmd/background-controller/main.go b/cmd/background-controller/main.go
index 0ae6e2884b..276c68ec58 100644
--- a/cmd/background-controller/main.go
+++ b/cmd/background-controller/main.go
@@ -160,8 +160,11 @@ func main() {
 		globalcontextcontroller.NewController(
 			kyvernoInformer.Kyverno().V2alpha1().GlobalContextEntries(),
 			setup.KyvernoDynamicClient,
+			setup.KyvernoClient,
 			gcstore,
+			eventGenerator,
 			maxAPICallResponseLength,
+			false,
 		),
 		globalcontextcontroller.Workers,
 	) // this controller only subscribe to events, nothing is returned...
diff --git a/cmd/cleanup-controller/main.go b/cmd/cleanup-controller/main.go
index 25c86bdb56..05a0b05df1 100644
--- a/cmd/cleanup-controller/main.go
+++ b/cmd/cleanup-controller/main.go
@@ -166,8 +166,11 @@ func main() {
 		globalcontextcontroller.NewController(
 			kyvernoInformer.Kyverno().V2alpha1().GlobalContextEntries(),
 			setup.KyvernoDynamicClient,
+			setup.KyvernoClient,
 			gcstore,
+			eventGenerator,
 			maxAPICallResponseLength,
+			false,
 		),
 		globalcontextcontroller.Workers,
 	)
@@ -305,6 +308,7 @@ func main() {
 					cmResolver,
 					setup.Jp,
 					eventGenerator,
+					gcstore,
 				),
 				cleanup.Workers,
 			)
diff --git a/cmd/kyverno/main.go b/cmd/kyverno/main.go
index 9db068e30f..24f6c94ac9 100644
--- a/cmd/kyverno/main.go
+++ b/cmd/kyverno/main.go
@@ -362,8 +362,11 @@ func main() {
 		globalcontextcontroller.NewController(
 			kyvernoInformer.Kyverno().V2alpha1().GlobalContextEntries(),
 			setup.KyvernoDynamicClient,
+			setup.KyvernoClient,
 			gcstore,
+			eventGenerator,
 			maxAPICallResponseLength,
+			true,
 		),
 		globalcontextcontroller.Workers,
 	)
@@ -508,7 +511,7 @@ func main() {
 	)
 	policyHandlers := webhookspolicy.NewHandlers(
 		setup.KyvernoDynamicClient,
-		kyvernoInformer.Kyverno().V2alpha1().GlobalContextEntries(),
+		setup.KyvernoClient,
 		backgroundServiceAccountName,
 	)
 	resourceHandlers := webhooksresource.NewHandlers(
diff --git a/cmd/reports-controller/main.go b/cmd/reports-controller/main.go
index c7725c0159..ddfddac2cd 100644
--- a/cmd/reports-controller/main.go
+++ b/cmd/reports-controller/main.go
@@ -278,8 +278,11 @@ func main() {
 		globalcontextcontroller.NewController(
 			kyvernoInformer.Kyverno().V2alpha1().GlobalContextEntries(),
 			setup.KyvernoDynamicClient,
+			setup.KyvernoClient,
 			gcstore,
+			eventGenerator,
 			maxAPICallResponseLength,
+			false,
 		),
 		globalcontextcontroller.Workers,
 	)
diff --git a/config/crds/kyverno/kyverno.io_globalcontextentries.yaml b/config/crds/kyverno/kyverno.io_globalcontextentries.yaml
index bff7086a7f..7f9b73bad1 100644
--- a/config/crds/kyverno/kyverno.io_globalcontextentries.yaml
+++ b/config/crds/kyverno/kyverno.io_globalcontextentries.yaml
@@ -18,7 +18,11 @@ spec:
     singular: globalcontextentry
   scope: Cluster
   versions:
-  - name: v2alpha1
+  - additionalPrinterColumns:
+    - jsonPath: .status.conditions[?(@.type == "Ready")].status
+      name: READY
+      type: string
+    name: v2alpha1
     schema:
       openAPIV3Schema:
         description: GlobalContextEntry declares resources to be cached.
@@ -193,3 +197,5 @@ spec:
         type: object
     served: true
     storage: true
+    subresources:
+      status: {}
diff --git a/config/install-latest-testing.yaml b/config/install-latest-testing.yaml
index 0972faf938..1669dde384 100644
--- a/config/install-latest-testing.yaml
+++ b/config/install-latest-testing.yaml
@@ -28569,7 +28569,11 @@ spec:
     singular: globalcontextentry
   scope: Cluster
   versions:
-  - name: v2alpha1
+  - additionalPrinterColumns:
+    - jsonPath: .status.conditions[?(@.type == "Ready")].status
+      name: READY
+      type: string
+    name: v2alpha1
     schema:
       openAPIV3Schema:
         description: GlobalContextEntry declares resources to be cached.
@@ -28744,6 +28748,8 @@ spec:
         type: object
     served: true
     storage: true
+    subresources:
+      status: {}
 ---
 apiVersion: apiextensions.k8s.io/v1
 kind: CustomResourceDefinition
@@ -51279,6 +51285,8 @@ rules:
       - clusterpolicies/status
       - updaterequests
       - updaterequests/status
+      - globalcontextentries
+      - globalcontextentries/status
       - admissionreports
       - clusteradmissionreports
       - backgroundscanreports
@@ -51293,13 +51301,6 @@ rules:
       - update
       - watch
       - deletecollection
-  - apiGroups:
-      - kyverno.io
-    resources:
-      - globalcontextentries
-    verbs:
-      - list
-      - watch
   - apiGroups:
       - reports.kyverno.io
     resources:
@@ -51414,6 +51415,8 @@ rules:
       - policyexceptions
       - updaterequests
       - updaterequests/status
+      - globalcontextentries
+      - globalcontextentries/status
     verbs:
       - create
       - delete
@@ -51423,13 +51426,6 @@ rules:
       - update
       - watch
       - deletecollection
-  - apiGroups:
-      - kyverno.io
-    resources:
-      - globalcontextentries
-    verbs:
-      - list
-      - watch
   - apiGroups:
       - ''
     resources:
@@ -51556,9 +51552,16 @@ rules:
       - kyverno.io
     resources:
       - globalcontextentries
+      - globalcontextentries/status
     verbs:
+      - create
+      - delete
+      - get
       - list
+      - patch
+      - update
       - watch
+      - deletecollection
   - apiGroups:
       - kyverno.io
     resources:
@@ -51867,12 +51870,7 @@ rules:
       - kyverno.io
     resources:
       - globalcontextentries
-    verbs:
-      - list
-      - watch
-  - apiGroups:
-      - kyverno.io
-    resources:
+      - globalcontextentries/status
       - admissionreports
       - clusteradmissionreports
       - backgroundscanreports
diff --git a/pkg/controllers/cleanup/controller.go b/pkg/controllers/cleanup/controller.go
index 94d97a1f36..0d916bdb1f 100644
--- a/pkg/controllers/cleanup/controller.go
+++ b/pkg/controllers/cleanup/controller.go
@@ -17,6 +17,7 @@ import (
 	"github.com/kyverno/kyverno/pkg/controllers"
 	engineapi "github.com/kyverno/kyverno/pkg/engine/api"
 	enginecontext "github.com/kyverno/kyverno/pkg/engine/context"
+	"github.com/kyverno/kyverno/pkg/engine/context/loaders"
 	"github.com/kyverno/kyverno/pkg/engine/factories"
 	"github.com/kyverno/kyverno/pkg/engine/jmespath"
 	"github.com/kyverno/kyverno/pkg/event"
@@ -57,6 +58,7 @@ type controller struct {
 	eventGen      event.Interface
 	jp            jmespath.Interface
 	metrics       cleanupMetrics
+	gctxStore     loaders.Store
 }
 
 type cleanupMetrics struct {
@@ -80,6 +82,7 @@ func NewController(
 	cmResolver engineapi.ConfigmapResolver,
 	jp jmespath.Interface,
 	eventGen event.Interface,
+	gctxStore loaders.Store,
 ) controllers.Controller {
 	queue := workqueue.NewNamedRateLimitingQueue(workqueue.DefaultControllerRateLimiter(), ControllerName)
 	keyFunc := controllerutils.MetaNamespaceKeyT[kyvernov2alpha1.CleanupPolicyInterface]
@@ -112,6 +115,7 @@ func NewController(
 		eventGen:      eventGen,
 		metrics:       newCleanupMetrics(logger),
 		jp:            jp,
+		gctxStore:     gctxStore,
 	}
 	if _, err := controllerutils.AddEventHandlersT(
 		cpolInformer.Informer(),
@@ -181,7 +185,7 @@ func (c *controller) cleanup(ctx context.Context, logger logr.Logger, policy kyv
 	var errs []error
 
 	enginectx := enginecontext.NewContext(c.jp)
-	ctxFactory := factories.DefaultContextLoaderFactory(c.cmResolver)
+	ctxFactory := factories.DefaultContextLoaderFactory(c.cmResolver, factories.WithGlobalContextStore(c.gctxStore))
 
 	loader := ctxFactory(nil, kyvernov1.Rule{})
 	if err := loader.Load(
diff --git a/pkg/controllers/globalcontext/controller.go b/pkg/controllers/globalcontext/controller.go
index a06b2613b4..e8939af7ac 100644
--- a/pkg/controllers/globalcontext/controller.go
+++ b/pkg/controllers/globalcontext/controller.go
@@ -6,17 +6,21 @@ import (
 
 	"github.com/go-logr/logr"
 	kyvernov2alpha1 "github.com/kyverno/kyverno/api/kyverno/v2alpha1"
+	"github.com/kyverno/kyverno/pkg/client/clientset/versioned"
 	kyvernov2alpha1informers "github.com/kyverno/kyverno/pkg/client/informers/externalversions/kyverno/v2alpha1"
 	kyvernov2alpha1listers "github.com/kyverno/kyverno/pkg/client/listers/kyverno/v2alpha1"
 	"github.com/kyverno/kyverno/pkg/clients/dclient"
 	"github.com/kyverno/kyverno/pkg/controllers"
 	"github.com/kyverno/kyverno/pkg/engine/adapters"
+	"github.com/kyverno/kyverno/pkg/event"
 	"github.com/kyverno/kyverno/pkg/globalcontext/externalapi"
 	"github.com/kyverno/kyverno/pkg/globalcontext/k8sresource"
 	"github.com/kyverno/kyverno/pkg/globalcontext/store"
 	controllerutils "github.com/kyverno/kyverno/pkg/utils/controller"
+	datautils "github.com/kyverno/kyverno/pkg/utils/data"
 	apierrors "k8s.io/apimachinery/pkg/api/errors"
 	"k8s.io/apimachinery/pkg/runtime/schema"
+	"k8s.io/client-go/tools/cache"
 	"k8s.io/client-go/util/workqueue"
 )
 
@@ -35,29 +39,66 @@ type controller struct {
 	queue workqueue.RateLimitingInterface
 
 	// state
-	dclient           dclient.Interface
-	store             store.Store
-	maxResponseLength int64
+	dclient            dclient.Interface
+	kyvernoClient      versioned.Interface
+	store              store.Store
+	eventGen           event.Interface
+	maxResponseLength  int64
+	shouldUpdateStatus bool
 }
 
 func NewController(
 	gceInformer kyvernov2alpha1informers.GlobalContextEntryInformer,
 	dclient dclient.Interface,
+	kyvernoClient versioned.Interface,
 	storage store.Store,
+	eventGen event.Interface,
 	maxResponseLength int64,
+	shouldUpdateStatus bool,
 ) controllers.Controller {
 	queue := workqueue.NewNamedRateLimitingQueue(workqueue.DefaultControllerRateLimiter(), ControllerName)
-	_, _, err := controllerutils.AddDefaultEventHandlers(logger, gceInformer.Informer(), queue)
-	if err != nil {
+	c := &controller{
+		gceLister:          gceInformer.Lister(),
+		queue:              queue,
+		dclient:            dclient,
+		kyvernoClient:      kyvernoClient,
+		store:              storage,
+		eventGen:           eventGen,
+		maxResponseLength:  maxResponseLength,
+		shouldUpdateStatus: shouldUpdateStatus,
+	}
+
+	if _, err := controllerutils.AddEventHandlersT(gceInformer.Informer(), c.addGTXEntry, c.updateGTXEntry, c.deleteGTXEntry); err != nil {
 		logger.Error(err, "failed to register event handlers")
 	}
-	return &controller{
-		gceLister:         gceInformer.Lister(),
-		queue:             queue,
-		dclient:           dclient,
-		store:             storage,
-		maxResponseLength: maxResponseLength,
+
+	return c
+}
+
+func (c *controller) addGTXEntry(obj *kyvernov2alpha1.GlobalContextEntry) {
+	logger.Info("globalcontextentry created", "uid", obj.GetUID(), "kind", obj.Kind, "name", obj.GetName())
+	c.enqueueGCTXEntry(obj)
+}
+
+func (c *controller) updateGTXEntry(old, obj *kyvernov2alpha1.GlobalContextEntry) {
+	if datautils.DeepEqual(old.Spec, obj.Spec) {
+		return
 	}
+	logger.Info("globalcontextentry updated", "uid", obj.GetUID(), "kind", obj.Kind, "name", obj.GetName())
+	c.enqueueGCTXEntry(obj)
+}
+
+func (c *controller) deleteGTXEntry(obj *kyvernov2alpha1.GlobalContextEntry) {
+	c.enqueueGCTXEntry(obj)
+}
+
+func (c *controller) enqueueGCTXEntry(gctxentry *kyvernov2alpha1.GlobalContextEntry) {
+	key, err := cache.MetaNamespaceKeyFunc(gctxentry)
+	if err != nil {
+		logger.Error(err, "failed to enqueue global context entry")
+		return
+	}
+	c.queue.Add(key)
 }
 
 func (c *controller) Run(ctx context.Context, workers int) {
@@ -95,14 +136,29 @@ func (c *controller) makeStoreEntry(ctx context.Context, gce *kyvernov2alpha1.Gl
 			Version:  gce.Spec.KubernetesResource.Version,
 			Resource: gce.Spec.KubernetesResource.Resource,
 		}
-		return k8sresource.New(ctx, c.dclient.GetDynamicInterface(), gvr, gce.Spec.KubernetesResource.Namespace)
+		return k8sresource.New(
+			ctx,
+			gce,
+			c.eventGen,
+			c.dclient.GetDynamicInterface(),
+			c.kyvernoClient,
+			logger,
+			gvr,
+			gce.Spec.KubernetesResource.Namespace,
+			c.shouldUpdateStatus,
+		)
 	}
 	return externalapi.New(
 		ctx,
+		gce,
+		c.eventGen,
+		c.kyvernoClient,
+		c.gceLister,
 		logger,
 		adapters.Client(c.dclient),
 		gce.Spec.APICall.APICall,
 		gce.Spec.APICall.RefreshInterval.Duration,
 		c.maxResponseLength,
+		c.shouldUpdateStatus,
 	)
 }
diff --git a/pkg/controllers/webhook/controller.go b/pkg/controllers/webhook/controller.go
index d55f175386..5959a0604a 100644
--- a/pkg/controllers/webhook/controller.go
+++ b/pkg/controllers/webhook/controller.go
@@ -426,7 +426,7 @@ func (c *controller) reconcileMutatingWebhookConfiguration(ctx context.Context,
 func (c *controller) isGlobalContextEntryReady(name string, gctxentries []*kyvernov2alpha1.GlobalContextEntry) bool {
 	for _, gctxentry := range gctxentries {
 		if gctxentry.Name == name {
-			return true
+			return gctxentry.Status.IsReady()
 		}
 	}
 	return false
diff --git a/pkg/event/controller.go b/pkg/event/controller.go
index 83c131c3c4..0570c305df 100644
--- a/pkg/event/controller.go
+++ b/pkg/event/controller.go
@@ -135,7 +135,9 @@ func (gen *controller) processNextWorkItem(ctx context.Context) bool {
 func (gen *controller) emitEvent(key Info) {
 	logger := gen.logger
 	eventType := corev1.EventTypeWarning
-	if key.Reason == PolicyApplied || key.Reason == PolicySkipped {
+	if key.Type != "" {
+		eventType = key.Type
+	} else if key.Reason == PolicyApplied || key.Reason == PolicySkipped {
 		eventType = corev1.EventTypeNormal
 	}
 
diff --git a/pkg/event/info.go b/pkg/event/info.go
index d3d054414e..9c5455d49d 100644
--- a/pkg/event/info.go
+++ b/pkg/event/info.go
@@ -14,6 +14,7 @@ type Info struct {
 	Message   string
 	Action    Action
 	Source    Source
+	Type      string
 }
 
 func (i *Info) Resource() string {
diff --git a/pkg/globalcontext/event/event.go b/pkg/globalcontext/event/event.go
new file mode 100644
index 0000000000..1fd384642c
--- /dev/null
+++ b/pkg/globalcontext/event/event.go
@@ -0,0 +1,22 @@
+package event
+
+import (
+	"github.com/kyverno/kyverno/pkg/event"
+	corev1 "k8s.io/api/core/v1"
+)
+
+const (
+	source = "globalcontext-controller"
+	action = "Retrying"
+)
+
+func NewErrorEvent(regarding corev1.ObjectReference, reason event.Reason, err error) event.Info {
+	return event.Info{
+		Regarding: regarding,
+		Source:    source,
+		Reason:    reason,
+		Message:   err.Error(),
+		Action:    action,
+		Type:      corev1.EventTypeWarning,
+	}
+}
diff --git a/pkg/globalcontext/event/reason.go b/pkg/globalcontext/event/reason.go
new file mode 100644
index 0000000000..879d8e8757
--- /dev/null
+++ b/pkg/globalcontext/event/reason.go
@@ -0,0 +1,7 @@
+package event
+
+const (
+	ReasonResourceListFailure = "FailedToList"
+	ReasonAPICallFailure      = "FailedToCallAPI"
+	ReasonCacheSyncFailure    = "FailedToWaitForCacheSync"
+)
diff --git a/pkg/globalcontext/externalapi/entry.go b/pkg/globalcontext/externalapi/entry.go
index 2db5d91179..c8962a3fa2 100644
--- a/pkg/globalcontext/externalapi/entry.go
+++ b/pkg/globalcontext/externalapi/entry.go
@@ -8,8 +8,18 @@ import (
 
 	"github.com/go-logr/logr"
 	kyvernov1 "github.com/kyverno/kyverno/api/kyverno/v1"
+	kyvernov2alpha1 "github.com/kyverno/kyverno/api/kyverno/v2alpha1"
+	"github.com/kyverno/kyverno/pkg/client/clientset/versioned"
+	kyvernov2alpha1listers "github.com/kyverno/kyverno/pkg/client/listers/kyverno/v2alpha1"
 	"github.com/kyverno/kyverno/pkg/engine/apicall"
+	"github.com/kyverno/kyverno/pkg/event"
+	entryevent "github.com/kyverno/kyverno/pkg/globalcontext/event"
+	"github.com/kyverno/kyverno/pkg/globalcontext/store"
+	controllerutils "github.com/kyverno/kyverno/pkg/utils/controller"
+	corev1 "k8s.io/api/core/v1"
+	metav1 "k8s.io/apimachinery/pkg/apis/meta/v1"
 	"k8s.io/apimachinery/pkg/util/wait"
+	"k8s.io/client-go/util/retry"
 )
 
 type entry struct {
@@ -21,12 +31,17 @@ type entry struct {
 
 func New(
 	ctx context.Context,
+	gce *kyvernov2alpha1.GlobalContextEntry,
+	eventGen event.Interface,
+	kyvernoClient versioned.Interface,
+	gceLister kyvernov2alpha1listers.GlobalContextEntryLister,
 	logger logr.Logger,
 	client apicall.ClientInterface,
 	call kyvernov1.APICall,
 	period time.Duration,
 	maxResponseLength int64,
-) (*entry, error) {
+	shouldUpdateStatus bool,
+) (store.Entry, error) {
 	var group wait.Group
 	ctx, cancel := context.WithCancel(ctx)
 	stop := func() {
@@ -38,19 +53,42 @@ func New(
 	e := &entry{
 		stop: stop,
 	}
+
 	group.StartWithContext(ctx, func(ctx context.Context) {
-		// TODO: make sure we have called it at least once before returning
 		config := apicall.NewAPICallConfiguration(maxResponseLength)
 		caller := apicall.NewCaller(logger, "globalcontext", client, config)
+
 		wait.UntilWithContext(ctx, func(ctx context.Context) {
 			if data, err := doCall(ctx, caller, call); err != nil {
-				logger.Error(err, "failed to get data from api caller")
 				e.setData(nil, err)
+
+				logger.Error(err, "failed to get data from api caller")
+
+				eventGen.Add(entryevent.NewErrorEvent(corev1.ObjectReference{
+					APIVersion: gce.APIVersion,
+					Kind:       gce.Kind,
+					Name:       gce.Name,
+					Namespace:  gce.Namespace,
+					UID:        gce.UID,
+				}, entryevent.ReasonAPICallFailure, err))
+
+				if shouldUpdateStatus {
+					if updateErr := updateStatus(ctx, gce.Name, kyvernoClient, false, entryevent.ReasonAPICallFailure); updateErr != nil {
+						logger.Error(updateErr, "failed to update status")
+					}
+				}
 			} else {
 				e.setData(data, nil)
+
+				if shouldUpdateStatus {
+					if updateErr := updateStatus(ctx, gce.Name, kyvernoClient, true, "APICallSuccess"); updateErr != nil {
+						logger.Error(updateErr, "failed to update status")
+					}
+				}
 			}
 		}, period)
 	})
+
 	return e, nil
 }
 
@@ -89,3 +127,24 @@ func (e *entry) setData(data any, err error) {
 func doCall(ctx context.Context, caller apicall.Caller, call kyvernov1.APICall) (any, error) {
 	return caller.Execute(ctx, &call)
 }
+
+func updateStatus(ctx context.Context, gceName string, kyvernoClient versioned.Interface, ready bool, reason string) error {
+	retryErr := retry.RetryOnConflict(retry.DefaultRetry, func() error {
+		latestGCE, getErr := kyvernoClient.KyvernoV2alpha1().GlobalContextEntries().Get(ctx, gceName, metav1.GetOptions{})
+		if getErr != nil {
+			return getErr
+		}
+
+		_, updateErr := controllerutils.UpdateStatus(ctx, latestGCE, kyvernoClient.KyvernoV2alpha1().GlobalContextEntries(), func(latest *kyvernov2alpha1.GlobalContextEntry) error {
+			if latest == nil {
+				return fmt.Errorf("failed to update status: %s", latestGCE.Name)
+			}
+			latest.Status.SetReady(ready, reason)
+			return nil
+		})
+
+		return updateErr
+	})
+
+	return retryErr
+}
diff --git a/pkg/globalcontext/k8sresource/entry.go b/pkg/globalcontext/k8sresource/entry.go
index 9de39b6fca..b5fa3afd22 100644
--- a/pkg/globalcontext/k8sresource/entry.go
+++ b/pkg/globalcontext/k8sresource/entry.go
@@ -4,6 +4,15 @@ import (
 	"context"
 	"fmt"
 
+	"github.com/go-logr/logr"
+	kyvernov2alpha1 "github.com/kyverno/kyverno/api/kyverno/v2alpha1"
+	"github.com/kyverno/kyverno/pkg/client/clientset/versioned"
+	"github.com/kyverno/kyverno/pkg/event"
+	entryevent "github.com/kyverno/kyverno/pkg/globalcontext/event"
+	"github.com/kyverno/kyverno/pkg/globalcontext/invalid"
+	"github.com/kyverno/kyverno/pkg/globalcontext/store"
+	controllerutils "github.com/kyverno/kyverno/pkg/utils/controller"
+	corev1 "k8s.io/api/core/v1"
 	metav1 "k8s.io/apimachinery/pkg/apis/meta/v1"
 	"k8s.io/apimachinery/pkg/labels"
 	"k8s.io/apimachinery/pkg/runtime/schema"
@@ -14,11 +23,24 @@ import (
 )
 
 type entry struct {
-	lister cache.GenericLister
-	stop   func()
+	lister   cache.GenericLister
+	stop     func()
+	gce      *kyvernov2alpha1.GlobalContextEntry
+	eventGen event.Interface
 }
 
-func New(ctx context.Context, client dynamic.Interface, gvr schema.GroupVersionResource, namespace string) (*entry, error) {
+// TODO: Handle Kyverno Pod Ready State
+func New(
+	ctx context.Context,
+	gce *kyvernov2alpha1.GlobalContextEntry,
+	eventGen event.Interface,
+	client dynamic.Interface,
+	kyvernoClient versioned.Interface,
+	logger logr.Logger,
+	gvr schema.GroupVersionResource,
+	namespace string,
+	shouldUpdateStatus bool,
+) (store.Entry, error) {
 	indexers := cache.Indexers{
 		cache.NamespaceIndex: cache.MetaNamespaceIndexFunc,
 	}
@@ -39,17 +61,48 @@ func New(ctx context.Context, client dynamic.Interface, gvr schema.GroupVersionR
 	})
 	if !cache.WaitForCacheSync(ctx.Done(), informer.Informer().HasSynced) {
 		stop()
-		return nil, fmt.Errorf("failed to wait for cache sync: %s", gvr.Resource)
+
+		if shouldUpdateStatus {
+			if err := updateStatus(ctx, gce, kyvernoClient, false, "CacheSyncFailure"); err != nil {
+				logger.Error(err, "failed to update status")
+			}
+		}
+
+		err := fmt.Errorf("failed to sync cache for %s", gvr)
+		eventGen.Add(entryevent.NewErrorEvent(corev1.ObjectReference{
+			APIVersion: gce.APIVersion,
+			Kind:       gce.Kind,
+			Name:       gce.Name,
+			Namespace:  gce.Namespace,
+			UID:        gce.UID,
+		}, entryevent.ReasonCacheSyncFailure, err))
+
+		return invalid.New(err), nil
 	}
+
+	if shouldUpdateStatus {
+		if err := updateStatus(ctx, gce, kyvernoClient, true, "CacheSyncSuccess"); err != nil {
+			logger.Error(err, "failed to update status")
+		}
+	}
+
 	return &entry{
-		lister: informer.Lister(),
-		stop:   stop,
+		lister:   informer.Lister(),
+		stop:     stop,
+		eventGen: eventGen,
 	}, nil
 }
 
 func (e *entry) Get() (any, error) {
 	obj, err := e.lister.List(labels.Everything())
 	if err != nil {
+		e.eventGen.Add(entryevent.NewErrorEvent(corev1.ObjectReference{
+			APIVersion: e.gce.APIVersion,
+			Kind:       e.gce.Kind,
+			Name:       e.gce.Name,
+			Namespace:  e.gce.Namespace,
+			UID:        e.gce.UID,
+		}, entryevent.ReasonResourceListFailure, err))
 		return nil, err
 	}
 	return obj, nil
@@ -58,3 +111,14 @@ func (e *entry) Get() (any, error) {
 func (e *entry) Stop() {
 	e.stop()
 }
+
+func updateStatus(ctx context.Context, gce *kyvernov2alpha1.GlobalContextEntry, kyvernoClient versioned.Interface, ready bool, reason string) error {
+	_, err := controllerutils.UpdateStatus(ctx, gce, kyvernoClient.KyvernoV2alpha1().GlobalContextEntries(), func(latest *kyvernov2alpha1.GlobalContextEntry) error {
+		if latest == nil {
+			return fmt.Errorf("failed to update status: %s", gce.Name)
+		}
+		latest.Status.SetReady(ready, reason)
+		return nil
+	})
+	return err
+}
diff --git a/pkg/validation/policy/validate.go b/pkg/validation/policy/validate.go
index be08f8ca94..6e21f5c93a 100644
--- a/pkg/validation/policy/validate.go
+++ b/pkg/validation/policy/validate.go
@@ -1,6 +1,7 @@
 package policy
 
 import (
+	"context"
 	"encoding/json"
 	"errors"
 	"fmt"
@@ -19,7 +20,7 @@ import (
 	kyvernov2alpha1 "github.com/kyverno/kyverno/api/kyverno/v2alpha1"
 	"github.com/kyverno/kyverno/ext/wildcard"
 	"github.com/kyverno/kyverno/pkg/autogen"
-	kyvernov2alpha1listers "github.com/kyverno/kyverno/pkg/client/listers/kyverno/v2alpha1"
+	"github.com/kyverno/kyverno/pkg/client/clientset/versioned"
 	"github.com/kyverno/kyverno/pkg/clients/dclient"
 	enginecontext "github.com/kyverno/kyverno/pkg/engine/context"
 	"github.com/kyverno/kyverno/pkg/engine/variables"
@@ -33,7 +34,6 @@ import (
 	admissionregistrationv1alpha1 "k8s.io/api/admissionregistration/v1alpha1"
 	"k8s.io/apiextensions-apiserver/pkg/apis/apiextensions"
 	metav1 "k8s.io/apimachinery/pkg/apis/meta/v1"
-	"k8s.io/apimachinery/pkg/labels"
 	"k8s.io/apimachinery/pkg/util/sets"
 	"k8s.io/apimachinery/pkg/util/validation/field"
 	"k8s.io/apimachinery/pkg/util/yaml"
@@ -128,7 +128,7 @@ func checkValidationFailureAction(spec *kyvernov1.Spec) []string {
 }
 
 // Validate checks the policy and rules declarations for required configurations
-func Validate(policy, oldPolicy kyvernov1.PolicyInterface, client dclient.Interface, gctxentryLister kyvernov2alpha1listers.GlobalContextEntryLister, mock bool, username string) ([]string, error) {
+func Validate(policy, oldPolicy kyvernov1.PolicyInterface, client dclient.Interface, kyvernoClient versioned.Interface, mock bool, username string) ([]string, error) {
 	var warnings []string
 	spec := policy.GetSpec()
 	background := spec.BackgroundProcessingEnabled()
@@ -404,8 +404,8 @@ func Validate(policy, oldPolicy kyvernov1.PolicyInterface, client dclient.Interf
 	}
 
 	// global context entry validation
-	if gctxentryLister != nil {
-		gctxentries, err := gctxentryLister.List(labels.Everything())
+	if kyvernoClient != nil {
+		gctxentries, err := kyvernoClient.KyvernoV2alpha1().GlobalContextEntries().List(context.Background(), metav1.ListOptions{})
 		if err != nil {
 			return nil, err
 		}
@@ -416,7 +416,7 @@ func Validate(policy, oldPolicy kyvernov1.PolicyInterface, client dclient.Interf
 			for _, ctxEntry := range rule.Context {
 				if ctxEntry.GlobalReference != nil {
 					if !isGlobalContextEntryReady(ctxEntry.GlobalReference.Name, gctxentries) {
-						return nil, fmt.Errorf("global context entry %s is not ready", ctxEntry.Name)
+						return nil, fmt.Errorf("global context entry %s is not ready", ctxEntry.GlobalReference.Name)
 					}
 				}
 			}
@@ -473,10 +473,10 @@ func Validate(policy, oldPolicy kyvernov1.PolicyInterface, client dclient.Interf
 	return warnings, nil
 }
 
-func isGlobalContextEntryReady(name string, gctxentries []*kyvernov2alpha1.GlobalContextEntry) bool {
-	for _, gctxentry := range gctxentries {
+func isGlobalContextEntryReady(name string, gctxentries *kyvernov2alpha1.GlobalContextEntryList) bool {
+	for _, gctxentry := range gctxentries.Items {
 		if gctxentry.Name == name {
-			return true
+			return gctxentry.Status.IsReady()
 		}
 	}
 	return false
diff --git a/pkg/webhooks/policy/handlers.go b/pkg/webhooks/policy/handlers.go
index f4a67f9700..5dc2d0652b 100644
--- a/pkg/webhooks/policy/handlers.go
+++ b/pkg/webhooks/policy/handlers.go
@@ -5,8 +5,7 @@ import (
 	"time"
 
 	"github.com/go-logr/logr"
-	kyvernov2alpha1informers "github.com/kyverno/kyverno/pkg/client/informers/externalversions/kyverno/v2alpha1"
-	kyvernov2alpha1listers "github.com/kyverno/kyverno/pkg/client/listers/kyverno/v2alpha1"
+	"github.com/kyverno/kyverno/pkg/client/clientset/versioned"
 	"github.com/kyverno/kyverno/pkg/clients/dclient"
 	admissionutils "github.com/kyverno/kyverno/pkg/utils/admission"
 	policyvalidate "github.com/kyverno/kyverno/pkg/validation/policy"
@@ -16,14 +15,14 @@ import (
 
 type policyHandlers struct {
 	client                       dclient.Interface
-	gctxentryLister              kyvernov2alpha1listers.GlobalContextEntryLister
+	kyvernoClient                versioned.Interface
 	backgroundServiceAccountName string
 }
 
-func NewHandlers(client dclient.Interface, gctxentryInformer kyvernov2alpha1informers.GlobalContextEntryInformer, serviceaccount string) webhooks.PolicyHandlers {
+func NewHandlers(client dclient.Interface, kyvernoClient versioned.Interface, serviceaccount string) webhooks.PolicyHandlers {
 	return &policyHandlers{
 		client:                       client,
-		gctxentryLister:              gctxentryInformer.Lister(),
+		kyvernoClient:                kyvernoClient,
 		backgroundServiceAccountName: serviceaccount,
 	}
 }
@@ -34,7 +33,7 @@ func (h *policyHandlers) Validate(ctx context.Context, logger logr.Logger, reque
 		logger.Error(err, "failed to unmarshal policies from admission request")
 		return admissionutils.Response(request.UID, err)
 	}
-	warnings, err := policyvalidate.Validate(policy, oldPolicy, h.client, h.gctxentryLister, false, h.backgroundServiceAccountName)
+	warnings, err := policyvalidate.Validate(policy, oldPolicy, h.client, h.kyvernoClient, false, h.backgroundServiceAccountName)
 	if err != nil {
 		logger.Error(err, "policy validation errors")
 	}
diff --git a/test/conformance/chainsaw/globalcontext/apicall-correct/chainsaw-test.yaml b/test/conformance/chainsaw/globalcontext/apicall-correct/chainsaw-test.yaml
index 4c74ff5137..b077033504 100755
--- a/test/conformance/chainsaw/globalcontext/apicall-correct/chainsaw-test.yaml
+++ b/test/conformance/chainsaw/globalcontext/apicall-correct/chainsaw-test.yaml
@@ -2,7 +2,7 @@ apiVersion: chainsaw.kyverno.io/v1alpha1
 kind: Test
 metadata:
   creationTimestamp: null
-  name: resource-correct
+  name: apicall-correct
 spec:
   steps:
   - name: scenario
@@ -13,11 +13,13 @@ spec:
         file: main-deployment.yaml
     - apply:
         file: gctxentry.yaml
+    - sleep:
+        duration: 15s
     - apply:
         file: clusterpolicy.yaml
+    - assert:
+        file: clusterpolicy-ready.yaml
     - apply:
         file: new-deployment.yaml
-    - assert:
-        file: clusterpolicy-succeeded.yaml
     - assert:
         file: new-deployment-exists.yaml
diff --git a/test/conformance/chainsaw/globalcontext/apicall-correct/clusterpolicy-succeeded.yaml b/test/conformance/chainsaw/globalcontext/apicall-correct/clusterpolicy-ready.yaml
similarity index 79%
rename from test/conformance/chainsaw/globalcontext/apicall-correct/clusterpolicy-succeeded.yaml
rename to test/conformance/chainsaw/globalcontext/apicall-correct/clusterpolicy-ready.yaml
index 47b54ce1f2..d456c1b81c 100755
--- a/test/conformance/chainsaw/globalcontext/apicall-correct/clusterpolicy-succeeded.yaml
+++ b/test/conformance/chainsaw/globalcontext/apicall-correct/clusterpolicy-ready.yaml
@@ -1,7 +1,7 @@
 apiVersion: kyverno.io/v1
 kind: ClusterPolicy
 metadata:
-  name: namespace-has-coordinator
+  name: cpol-apicall-correct
 status:
   conditions:
   - reason: Succeeded
diff --git a/test/conformance/chainsaw/globalcontext/apicall-correct/clusterpolicy.yaml b/test/conformance/chainsaw/globalcontext/apicall-correct/clusterpolicy.yaml
index 1c459b0a16..31c1c8adf2 100755
--- a/test/conformance/chainsaw/globalcontext/apicall-correct/clusterpolicy.yaml
+++ b/test/conformance/chainsaw/globalcontext/apicall-correct/clusterpolicy.yaml
@@ -1,7 +1,7 @@
 apiVersion: kyverno.io/v1
 kind: ClusterPolicy
 metadata:
-  name: namespace-has-coordinator
+  name: cpol-apicall-correct
 spec:
   validationFailureAction: Enforce
   failurePolicy: Fail
@@ -10,7 +10,7 @@ spec:
     context:
     - name: deploymentCount
       globalReference:
-        name: deployments
+        name: gctxentry-apicall-correct
         jmesPath: "items | length(@)"
     match:
       all:
diff --git a/test/conformance/chainsaw/globalcontext/apicall-correct/gctxentry.yaml b/test/conformance/chainsaw/globalcontext/apicall-correct/gctxentry.yaml
index 46d1da9f8f..4cd652dfbf 100755
--- a/test/conformance/chainsaw/globalcontext/apicall-correct/gctxentry.yaml
+++ b/test/conformance/chainsaw/globalcontext/apicall-correct/gctxentry.yaml
@@ -1,8 +1,8 @@
 apiVersion: kyverno.io/v2alpha1
 kind: GlobalContextEntry
 metadata:
-  name: deployments
+  name: gctxentry-apicall-correct
 spec:
   apiCall:
-    urlPath: "/apis/apps/v1/namespaces/test-globalcontext/deployments"
-    refreshInterval: 10s
+    urlPath: "/apis/apps/v1/namespaces/test-globalcontext-apicall-correct/deployments"
+    refreshInterval: 1h
diff --git a/test/conformance/chainsaw/globalcontext/apicall-correct/main-deployment.yaml b/test/conformance/chainsaw/globalcontext/apicall-correct/main-deployment.yaml
index bd269e4252..09fac90b00 100755
--- a/test/conformance/chainsaw/globalcontext/apicall-correct/main-deployment.yaml
+++ b/test/conformance/chainsaw/globalcontext/apicall-correct/main-deployment.yaml
@@ -2,7 +2,7 @@ apiVersion: apps/v1
 kind: Deployment
 metadata:
   name: main-deployment
-  namespace: test-globalcontext
+  namespace: test-globalcontext-apicall-correct
   labels:
     app: main-deployment
 spec:
diff --git a/test/conformance/chainsaw/globalcontext/apicall-correct/namespace.yaml b/test/conformance/chainsaw/globalcontext/apicall-correct/namespace.yaml
index 9310828450..80f2b8e573 100755
--- a/test/conformance/chainsaw/globalcontext/apicall-correct/namespace.yaml
+++ b/test/conformance/chainsaw/globalcontext/apicall-correct/namespace.yaml
@@ -1,4 +1,4 @@
 apiVersion: v1
 kind: Namespace
 metadata:
-  name: test-globalcontext
+  name: test-globalcontext-apicall-correct
diff --git a/test/conformance/chainsaw/globalcontext/apicall-correct/new-deployment-exists.yaml b/test/conformance/chainsaw/globalcontext/apicall-correct/new-deployment-exists.yaml
index 969c3bc053..24d08fe849 100755
--- a/test/conformance/chainsaw/globalcontext/apicall-correct/new-deployment-exists.yaml
+++ b/test/conformance/chainsaw/globalcontext/apicall-correct/new-deployment-exists.yaml
@@ -2,6 +2,6 @@ apiVersion: apps/v1
 kind: Deployment
 metadata:
   name: new-deployment
-  namespace: test-globalcontext
+  namespace: test-globalcontext-apicall-correct
   labels:
     app: new-deployment
diff --git a/test/conformance/chainsaw/globalcontext/apicall-correct/new-deployment.yaml b/test/conformance/chainsaw/globalcontext/apicall-correct/new-deployment.yaml
index 343cbc492b..c162c0a48b 100755
--- a/test/conformance/chainsaw/globalcontext/apicall-correct/new-deployment.yaml
+++ b/test/conformance/chainsaw/globalcontext/apicall-correct/new-deployment.yaml
@@ -2,7 +2,7 @@ apiVersion: apps/v1
 kind: Deployment
 metadata:
   name: new-deployment
-  namespace: test-globalcontext
+  namespace: test-globalcontext-apicall-correct
   labels:
     app: new-deployment
 spec:
diff --git a/test/conformance/chainsaw/globalcontext/apicall-failed/README.md b/test/conformance/chainsaw/globalcontext/apicall-failed/README.md
new file mode 100644
index 0000000000..e4830f2597
--- /dev/null
+++ b/test/conformance/chainsaw/globalcontext/apicall-failed/README.md
@@ -0,0 +1,11 @@
+## Description
+
+This test verifies that Global Context Entries are evaluated correctly.
+
+## Expected Behavior
+
+`new-deployment` should be created.
+
+## Reference Issues
+
+
diff --git a/test/conformance/chainsaw/globalcontext/apicall-failed/chainsaw-test.yaml b/test/conformance/chainsaw/globalcontext/apicall-failed/chainsaw-test.yaml
new file mode 100755
index 0000000000..a2f0d2f3ac
--- /dev/null
+++ b/test/conformance/chainsaw/globalcontext/apicall-failed/chainsaw-test.yaml
@@ -0,0 +1,13 @@
+apiVersion: chainsaw.kyverno.io/v1alpha1
+kind: Test
+metadata:
+  creationTimestamp: null
+  name: apicall-failed
+spec:
+  steps:
+  - name: scenario
+    try:
+    - apply:
+        file: gctxentry.yaml
+    - assert:
+        file: gctxentry-not-ready.yaml
diff --git a/test/conformance/chainsaw/globalcontext/apicall-failed/gctxentry-not-ready.yaml b/test/conformance/chainsaw/globalcontext/apicall-failed/gctxentry-not-ready.yaml
new file mode 100755
index 0000000000..a7ece467cb
--- /dev/null
+++ b/test/conformance/chainsaw/globalcontext/apicall-failed/gctxentry-not-ready.yaml
@@ -0,0 +1,8 @@
+apiVersion: kyverno.io/v2alpha1
+kind: GlobalContextEntry
+metadata:
+  name: gctxentry-apicall-failed
+status:
+  conditions:
+  - status: "False"
+    type: Ready
diff --git a/test/conformance/chainsaw/globalcontext/apicall-failed/gctxentry.yaml b/test/conformance/chainsaw/globalcontext/apicall-failed/gctxentry.yaml
new file mode 100755
index 0000000000..e1cc305a27
--- /dev/null
+++ b/test/conformance/chainsaw/globalcontext/apicall-failed/gctxentry.yaml
@@ -0,0 +1,8 @@
+apiVersion: kyverno.io/v2alpha1
+kind: GlobalContextEntry
+metadata:
+  name: gctxentry-apicall-failed
+spec:
+  apiCall:
+    urlPath: "/apis/apps/v1/namespaces/default/unknown"
+    refreshInterval: 10s
diff --git a/test/conformance/chainsaw/globalcontext/gctxentry-not-exist/README.md b/test/conformance/chainsaw/globalcontext/gctxentry-not-exist/README.md
index 8e678c56af..e4c4d50cc5 100644
--- a/test/conformance/chainsaw/globalcontext/gctxentry-not-exist/README.md
+++ b/test/conformance/chainsaw/globalcontext/gctxentry-not-exist/README.md
@@ -1,10 +1,10 @@
 ## Description
 
-This test verifies that policies are not ready if referenced Global Context Entries don't exist.
+This test verifies that policies cannot be created if referenced Global Context Entries don't exist.
 
 ## Expected Behavior
 
-`new-deployment` should not be created because the policy is not ready.
+The clusterpolicy ` cpol-gctxentry-not-exist` should not be created because the globalcontextentry does not exist.
 
 ## Reference Issues
 
diff --git a/test/conformance/chainsaw/globalcontext/gctxentry-not-exist/chainsaw-test.yaml b/test/conformance/chainsaw/globalcontext/gctxentry-not-exist/chainsaw-test.yaml
index bc17ae4ed1..b04cc4ab16 100755
--- a/test/conformance/chainsaw/globalcontext/gctxentry-not-exist/chainsaw-test.yaml
+++ b/test/conformance/chainsaw/globalcontext/gctxentry-not-exist/chainsaw-test.yaml
@@ -11,8 +11,6 @@ spec:
         file: namespace.yaml
     - apply:
         file: main-deployment.yaml
-    - apply:
-        file: gctxentry.yaml
   - name: negative
     try:
     - apply:
diff --git a/test/conformance/chainsaw/globalcontext/gctxentry-not-exist/clusterpolicy.yaml b/test/conformance/chainsaw/globalcontext/gctxentry-not-exist/clusterpolicy.yaml
index b2775d0b10..bce134a389 100755
--- a/test/conformance/chainsaw/globalcontext/gctxentry-not-exist/clusterpolicy.yaml
+++ b/test/conformance/chainsaw/globalcontext/gctxentry-not-exist/clusterpolicy.yaml
@@ -1,7 +1,7 @@
 apiVersion: kyverno.io/v1
 kind: ClusterPolicy
 metadata:
-  name: namespace-has-coordinator
+  name: cpol-gctxentry-not-exist
 spec:
   validationFailureAction: Enforce
   failurePolicy: Fail
diff --git a/test/conformance/chainsaw/globalcontext/gctxentry-not-exist/gctxentry.yaml b/test/conformance/chainsaw/globalcontext/gctxentry-not-exist/gctxentry.yaml
index 334874bd89..5ad29c3338 100755
--- a/test/conformance/chainsaw/globalcontext/gctxentry-not-exist/gctxentry.yaml
+++ b/test/conformance/chainsaw/globalcontext/gctxentry-not-exist/gctxentry.yaml
@@ -1,10 +1,10 @@
 apiVersion: kyverno.io/v2alpha1
 kind: GlobalContextEntry
 metadata:
-  name: deployments
+  name: non-existent-gctx
 spec:
   kubernetesResource:
     group: apps
     version: v1
     resource: deployments
-    namespace: test-globalcontext
+    namespace: test-globalcontext-gctxentry-not-exist
diff --git a/test/conformance/chainsaw/globalcontext/gctxentry-not-exist/main-deployment.yaml b/test/conformance/chainsaw/globalcontext/gctxentry-not-exist/main-deployment.yaml
index bd269e4252..a79c3f841f 100755
--- a/test/conformance/chainsaw/globalcontext/gctxentry-not-exist/main-deployment.yaml
+++ b/test/conformance/chainsaw/globalcontext/gctxentry-not-exist/main-deployment.yaml
@@ -2,7 +2,7 @@ apiVersion: apps/v1
 kind: Deployment
 metadata:
   name: main-deployment
-  namespace: test-globalcontext
+  namespace: test-globalcontext-gctxentry-not-exist
   labels:
     app: main-deployment
 spec:
diff --git a/test/conformance/chainsaw/globalcontext/gctxentry-not-exist/namespace.yaml b/test/conformance/chainsaw/globalcontext/gctxentry-not-exist/namespace.yaml
index 9310828450..3d1958b313 100755
--- a/test/conformance/chainsaw/globalcontext/gctxentry-not-exist/namespace.yaml
+++ b/test/conformance/chainsaw/globalcontext/gctxentry-not-exist/namespace.yaml
@@ -1,4 +1,4 @@
 apiVersion: v1
 kind: Namespace
 metadata:
-  name: test-globalcontext
+  name: test-globalcontext-gctxentry-not-exist
diff --git a/test/conformance/chainsaw/globalcontext/gctxentry-not-exist/new-deployment.yaml b/test/conformance/chainsaw/globalcontext/gctxentry-not-exist/new-deployment.yaml
deleted file mode 100755
index 343cbc492b..0000000000
--- a/test/conformance/chainsaw/globalcontext/gctxentry-not-exist/new-deployment.yaml
+++ /dev/null
@@ -1,22 +0,0 @@
-apiVersion: apps/v1
-kind: Deployment
-metadata:
-  name: new-deployment
-  namespace: test-globalcontext
-  labels:
-    app: new-deployment
-spec:
-  replicas: 1
-  selector:
-    matchLabels:
-      app: new-deployment
-  template:
-    metadata:
-      labels:
-        app: new-deployment
-    spec:
-      containers:
-      - name: nginx
-        image: nginx:1.14.2
-        ports:
-        - containerPort: 80
diff --git a/test/conformance/chainsaw/globalcontext/not-ready/README.md b/test/conformance/chainsaw/globalcontext/not-ready/README.md
index 8e678c56af..bf33ac73a9 100644
--- a/test/conformance/chainsaw/globalcontext/not-ready/README.md
+++ b/test/conformance/chainsaw/globalcontext/not-ready/README.md
@@ -1,6 +1,6 @@
 ## Description
 
-This test verifies that policies are not ready if referenced Global Context Entries don't exist.
+This test verifies that the policy becomes not ready if the referenced  Global Context Entries don't exist anymore.
 
 ## Expected Behavior
 
diff --git a/test/conformance/chainsaw/globalcontext/not-ready/chainsaw-test.yaml b/test/conformance/chainsaw/globalcontext/not-ready/chainsaw-test.yaml
index d920e77e1b..4349ddc67b 100755
--- a/test/conformance/chainsaw/globalcontext/not-ready/chainsaw-test.yaml
+++ b/test/conformance/chainsaw/globalcontext/not-ready/chainsaw-test.yaml
@@ -13,15 +13,19 @@ spec:
         file: main-deployment.yaml
     - apply:
         file: gctxentry.yaml
-    - assert:
-        file: gctxentry-exists.yaml
+    - sleep:
+        duration: 15s
     - apply:
         file: clusterpolicy.yaml
+    - assert:
+        file: clusterpolicy-ready.yaml
     - delete:
         ref:
           apiVersion: kyverno.io/v2alpha1
           kind: GlobalContextEntry
-          name: deployments
+          name: gctx-not-ready
+    - sleep:
+        duration: 5s
     - assert:
         file: clusterpolicy-failed.yaml
     - apply:
diff --git a/test/conformance/chainsaw/globalcontext/not-ready/clusterpolicy-failed.yaml b/test/conformance/chainsaw/globalcontext/not-ready/clusterpolicy-failed.yaml
index 8e33aa69ed..0b45387ea7 100755
--- a/test/conformance/chainsaw/globalcontext/not-ready/clusterpolicy-failed.yaml
+++ b/test/conformance/chainsaw/globalcontext/not-ready/clusterpolicy-failed.yaml
@@ -1,7 +1,7 @@
 apiVersion: kyverno.io/v1
 kind: ClusterPolicy
 metadata:
-  name: namespace-has-coordinator
+  name: cpol-not-ready
 status:
   conditions:
   - reason: Failed
diff --git a/test/conformance/chainsaw/globalcontext/resource-correct/clusterpolicy-succeeded.yaml b/test/conformance/chainsaw/globalcontext/not-ready/clusterpolicy-ready.yaml
similarity index 79%
rename from test/conformance/chainsaw/globalcontext/resource-correct/clusterpolicy-succeeded.yaml
rename to test/conformance/chainsaw/globalcontext/not-ready/clusterpolicy-ready.yaml
index 47b54ce1f2..ce59fdcea4 100755
--- a/test/conformance/chainsaw/globalcontext/resource-correct/clusterpolicy-succeeded.yaml
+++ b/test/conformance/chainsaw/globalcontext/not-ready/clusterpolicy-ready.yaml
@@ -1,7 +1,7 @@
 apiVersion: kyverno.io/v1
 kind: ClusterPolicy
 metadata:
-  name: namespace-has-coordinator
+  name: cpol-not-ready
 status:
   conditions:
   - reason: Succeeded
diff --git a/test/conformance/chainsaw/globalcontext/not-ready/clusterpolicy.yaml b/test/conformance/chainsaw/globalcontext/not-ready/clusterpolicy.yaml
index 1c459b0a16..da32709a9e 100755
--- a/test/conformance/chainsaw/globalcontext/not-ready/clusterpolicy.yaml
+++ b/test/conformance/chainsaw/globalcontext/not-ready/clusterpolicy.yaml
@@ -1,7 +1,7 @@
 apiVersion: kyverno.io/v1
 kind: ClusterPolicy
 metadata:
-  name: namespace-has-coordinator
+  name: cpol-not-ready
 spec:
   validationFailureAction: Enforce
   failurePolicy: Fail
@@ -10,7 +10,7 @@ spec:
     context:
     - name: deploymentCount
       globalReference:
-        name: deployments
+        name: gctx-not-ready
         jmesPath: "items | length(@)"
     match:
       all:
diff --git a/test/conformance/chainsaw/globalcontext/not-ready/gctxentry-exists.yaml b/test/conformance/chainsaw/globalcontext/not-ready/gctxentry-exists.yaml
deleted file mode 100755
index 1b74e4595c..0000000000
--- a/test/conformance/chainsaw/globalcontext/not-ready/gctxentry-exists.yaml
+++ /dev/null
@@ -1,4 +0,0 @@
-apiVersion: kyverno.io/v2alpha1
-kind: GlobalContextEntry
-metadata:
-  name: deployments
diff --git a/test/conformance/chainsaw/globalcontext/not-ready/gctxentry.yaml b/test/conformance/chainsaw/globalcontext/not-ready/gctxentry.yaml
index 46d1da9f8f..68e4359cde 100755
--- a/test/conformance/chainsaw/globalcontext/not-ready/gctxentry.yaml
+++ b/test/conformance/chainsaw/globalcontext/not-ready/gctxentry.yaml
@@ -1,8 +1,8 @@
 apiVersion: kyverno.io/v2alpha1
 kind: GlobalContextEntry
 metadata:
-  name: deployments
+  name: gctx-not-ready
 spec:
   apiCall:
-    urlPath: "/apis/apps/v1/namespaces/test-globalcontext/deployments"
+    urlPath: "/apis/apps/v1/namespaces/test-globalcontext-not-ready/deployments"
     refreshInterval: 10s
diff --git a/test/conformance/chainsaw/globalcontext/not-ready/main-deployment.yaml b/test/conformance/chainsaw/globalcontext/not-ready/main-deployment.yaml
index bd269e4252..05c7d1ae44 100755
--- a/test/conformance/chainsaw/globalcontext/not-ready/main-deployment.yaml
+++ b/test/conformance/chainsaw/globalcontext/not-ready/main-deployment.yaml
@@ -2,7 +2,7 @@ apiVersion: apps/v1
 kind: Deployment
 metadata:
   name: main-deployment
-  namespace: test-globalcontext
+  namespace: test-globalcontext-not-ready
   labels:
     app: main-deployment
 spec:
diff --git a/test/conformance/chainsaw/globalcontext/not-ready/namespace.yaml b/test/conformance/chainsaw/globalcontext/not-ready/namespace.yaml
index 9310828450..a145dd302e 100755
--- a/test/conformance/chainsaw/globalcontext/not-ready/namespace.yaml
+++ b/test/conformance/chainsaw/globalcontext/not-ready/namespace.yaml
@@ -1,4 +1,4 @@
 apiVersion: v1
 kind: Namespace
 metadata:
-  name: test-globalcontext
+  name: test-globalcontext-not-ready
diff --git a/test/conformance/chainsaw/globalcontext/not-ready/new-deployment-exists.yaml b/test/conformance/chainsaw/globalcontext/not-ready/new-deployment-exists.yaml
index 969c3bc053..c09c5f44a2 100755
--- a/test/conformance/chainsaw/globalcontext/not-ready/new-deployment-exists.yaml
+++ b/test/conformance/chainsaw/globalcontext/not-ready/new-deployment-exists.yaml
@@ -2,6 +2,6 @@ apiVersion: apps/v1
 kind: Deployment
 metadata:
   name: new-deployment
-  namespace: test-globalcontext
+  namespace: test-globalcontext-not-ready
   labels:
     app: new-deployment
diff --git a/test/conformance/chainsaw/globalcontext/not-ready/new-deployment.yaml b/test/conformance/chainsaw/globalcontext/not-ready/new-deployment.yaml
index 343cbc492b..53e0128f2f 100755
--- a/test/conformance/chainsaw/globalcontext/not-ready/new-deployment.yaml
+++ b/test/conformance/chainsaw/globalcontext/not-ready/new-deployment.yaml
@@ -2,7 +2,7 @@ apiVersion: apps/v1
 kind: Deployment
 metadata:
   name: new-deployment
-  namespace: test-globalcontext
+  namespace: test-globalcontext-not-ready
   labels:
     app: new-deployment
 spec:
diff --git a/test/conformance/chainsaw/globalcontext/resource-correct/chainsaw-test.yaml b/test/conformance/chainsaw/globalcontext/resource-correct/chainsaw-test.yaml
index 4c74ff5137..4a2dde9d2e 100755
--- a/test/conformance/chainsaw/globalcontext/resource-correct/chainsaw-test.yaml
+++ b/test/conformance/chainsaw/globalcontext/resource-correct/chainsaw-test.yaml
@@ -13,11 +13,13 @@ spec:
         file: main-deployment.yaml
     - apply:
         file: gctxentry.yaml
+    - sleep:
+        duration: 5s
     - apply:
         file: clusterpolicy.yaml
+    - assert:
+        file: clusterpolicy-ready.yaml
     - apply:
         file: new-deployment.yaml
-    - assert:
-        file: clusterpolicy-succeeded.yaml
     - assert:
         file: new-deployment-exists.yaml
diff --git a/test/conformance/chainsaw/globalcontext/resource-correct/clusterpolicy-ready.yaml b/test/conformance/chainsaw/globalcontext/resource-correct/clusterpolicy-ready.yaml
new file mode 100755
index 0000000000..941491ba9c
--- /dev/null
+++ b/test/conformance/chainsaw/globalcontext/resource-correct/clusterpolicy-ready.yaml
@@ -0,0 +1,9 @@
+apiVersion: kyverno.io/v1
+kind: ClusterPolicy
+metadata:
+  name: cpol-resource-correct
+status:
+  conditions:
+  - reason: Succeeded
+    status: "True"
+    type: Ready
diff --git a/test/conformance/chainsaw/globalcontext/resource-correct/clusterpolicy.yaml b/test/conformance/chainsaw/globalcontext/resource-correct/clusterpolicy.yaml
index 35e172629e..ec2126c4f5 100755
--- a/test/conformance/chainsaw/globalcontext/resource-correct/clusterpolicy.yaml
+++ b/test/conformance/chainsaw/globalcontext/resource-correct/clusterpolicy.yaml
@@ -1,7 +1,7 @@
 apiVersion: kyverno.io/v1
 kind: ClusterPolicy
 metadata:
-  name: namespace-has-coordinator
+  name: cpol-resource-correct
 spec:
   validationFailureAction: Enforce
   failurePolicy: Fail
@@ -10,7 +10,7 @@ spec:
     context:
     - name: deploymentCount
       globalReference:
-        name: deployments
+        name: gctxentry-resource-correct
         jmesPath: "length(@)"
     match:
       all:
diff --git a/test/conformance/chainsaw/globalcontext/resource-correct/gctxentry.yaml b/test/conformance/chainsaw/globalcontext/resource-correct/gctxentry.yaml
index 334874bd89..041fd312a8 100755
--- a/test/conformance/chainsaw/globalcontext/resource-correct/gctxentry.yaml
+++ b/test/conformance/chainsaw/globalcontext/resource-correct/gctxentry.yaml
@@ -1,10 +1,10 @@
 apiVersion: kyverno.io/v2alpha1
 kind: GlobalContextEntry
 metadata:
-  name: deployments
+  name: gctxentry-resource-correct
 spec:
   kubernetesResource:
     group: apps
     version: v1
     resource: deployments
-    namespace: test-globalcontext
+    namespace: test-globalcontext-resource-correct
diff --git a/test/conformance/chainsaw/globalcontext/resource-correct/main-deployment.yaml b/test/conformance/chainsaw/globalcontext/resource-correct/main-deployment.yaml
index bd269e4252..ca3b365478 100755
--- a/test/conformance/chainsaw/globalcontext/resource-correct/main-deployment.yaml
+++ b/test/conformance/chainsaw/globalcontext/resource-correct/main-deployment.yaml
@@ -2,7 +2,7 @@ apiVersion: apps/v1
 kind: Deployment
 metadata:
   name: main-deployment
-  namespace: test-globalcontext
+  namespace: test-globalcontext-resource-correct
   labels:
     app: main-deployment
 spec:
diff --git a/test/conformance/chainsaw/globalcontext/resource-correct/namespace.yaml b/test/conformance/chainsaw/globalcontext/resource-correct/namespace.yaml
index 9310828450..614c18b9b4 100755
--- a/test/conformance/chainsaw/globalcontext/resource-correct/namespace.yaml
+++ b/test/conformance/chainsaw/globalcontext/resource-correct/namespace.yaml
@@ -1,4 +1,4 @@
 apiVersion: v1
 kind: Namespace
 metadata:
-  name: test-globalcontext
+  name: test-globalcontext-resource-correct
diff --git a/test/conformance/chainsaw/globalcontext/resource-correct/new-deployment-exists.yaml b/test/conformance/chainsaw/globalcontext/resource-correct/new-deployment-exists.yaml
index 969c3bc053..b958612a92 100755
--- a/test/conformance/chainsaw/globalcontext/resource-correct/new-deployment-exists.yaml
+++ b/test/conformance/chainsaw/globalcontext/resource-correct/new-deployment-exists.yaml
@@ -2,6 +2,6 @@ apiVersion: apps/v1
 kind: Deployment
 metadata:
   name: new-deployment
-  namespace: test-globalcontext
+  namespace: test-globalcontext-resource-correct
   labels:
     app: new-deployment
diff --git a/test/conformance/chainsaw/globalcontext/resource-correct/new-deployment.yaml b/test/conformance/chainsaw/globalcontext/resource-correct/new-deployment.yaml
index 343cbc492b..c9812eda73 100755
--- a/test/conformance/chainsaw/globalcontext/resource-correct/new-deployment.yaml
+++ b/test/conformance/chainsaw/globalcontext/resource-correct/new-deployment.yaml
@@ -2,7 +2,7 @@ apiVersion: apps/v1
 kind: Deployment
 metadata:
   name: new-deployment
-  namespace: test-globalcontext
+  namespace: test-globalcontext-resource-correct
   labels:
     app: new-deployment
 spec: