diff --git a/api/cloud-resources/v1beta1/condition.go b/api/cloud-resources/v1beta1/condition.go
index 581bf1ff..25d5a472 100644
--- a/api/cloud-resources/v1beta1/condition.go
+++ b/api/cloud-resources/v1beta1/condition.go
@@ -70,4 +70,5 @@ const (
 	ReasonUnknownSchedule       = "UnknownSchedule"
 	ReasonInvalidStartTime      = "InvalidStartTime"
 	ReasonInvalidEndTime        = "InvalidEndTime"
+	ReasonBackupFailed          = "BackupFailed"
 )
diff --git a/pkg/skr/awsnfsvolumebackup/markFailed.go b/pkg/skr/awsnfsvolumebackup/markFailed.go
index d2b066a0..033534c3 100644
--- a/pkg/skr/awsnfsvolumebackup/markFailed.go
+++ b/pkg/skr/awsnfsvolumebackup/markFailed.go
@@ -5,6 +5,7 @@ import (
 	"fmt"
 	"github.com/kyma-project/cloud-manager/api/cloud-resources/v1beta1"
 	"github.com/kyma-project/cloud-manager/pkg/composed"
+	"k8s.io/apimachinery/pkg/api/meta"
 	metav1 "k8s.io/apimachinery/pkg/apis/meta/v1"
 	"sigs.k8s.io/controller-runtime/pkg/client"
 )
@@ -63,8 +64,20 @@ func markFailed(ctx context.Context, st composed.State) (error, context.Context)
 	for _, item := range list.Items {
 
 		if item.CreationTimestamp.Time.After(backup.CreationTimestamp.Time) {
+			errCondition := meta.FindStatusCondition(backup.Status.Conditions, v1beta1.ConditionTypeError)
+			message := "Backup moved to Failed state as more recent backup(s) is available."
+			if errCondition != nil {
+				message = errCondition.Message + "\n" + message
+			}
+
 			backup.Status.State = v1beta1.StateFailed
 			return composed.PatchStatus(backup).
+				SetExclusiveConditions(metav1.Condition{
+					Type:    v1beta1.ConditionTypeError,
+					Status:  metav1.ConditionTrue,
+					Reason:  v1beta1.ReasonBackupFailed,
+					Message: message,
+				}).
 				SuccessLogMsg("AwsNfsVolumeBackup status updated with Failed state. ").
 				SuccessError(composed.StopAndForget).
 				Run(ctx, state)
diff --git a/pkg/skr/awsnfsvolumebackup/markFailed_test.go b/pkg/skr/awsnfsvolumebackup/markFailed_test.go
index 3c9476f5..806d84c6 100644
--- a/pkg/skr/awsnfsvolumebackup/markFailed_test.go
+++ b/pkg/skr/awsnfsvolumebackup/markFailed_test.go
@@ -205,6 +205,9 @@ func (suite *markFailedSuite) TestWhenBackupIsNotLatestAndInError() {
 	suite.Nil(err)
 
 	suite.Equal(v1beta1.StateFailed, fromK8s.Status.State)
+	suite.Equal(v1beta1.ConditionTypeError, fromK8s.Status.Conditions[0].Type)
+	suite.Equal(v1.ConditionTrue, fromK8s.Status.Conditions[0].Status)
+	suite.Equal(v1beta1.ReasonBackupFailed, fromK8s.Status.Conditions[0].Reason)
 }
 
 func TestMarkFailed(t *testing.T) {
diff --git a/pkg/skr/gcpnfsvolumebackup/markFailed.go b/pkg/skr/gcpnfsvolumebackup/markFailed.go
index 221f9ea7..4ca2ff95 100644
--- a/pkg/skr/gcpnfsvolumebackup/markFailed.go
+++ b/pkg/skr/gcpnfsvolumebackup/markFailed.go
@@ -5,6 +5,7 @@ import (
 	"fmt"
 	"github.com/kyma-project/cloud-manager/api/cloud-resources/v1beta1"
 	"github.com/kyma-project/cloud-manager/pkg/composed"
+	"k8s.io/apimachinery/pkg/api/meta"
 	metav1 "k8s.io/apimachinery/pkg/apis/meta/v1"
 	"sigs.k8s.io/controller-runtime/pkg/client"
 )
@@ -62,8 +63,20 @@ func markFailed(ctx context.Context, st composed.State) (error, context.Context)
 	for _, item := range list.Items {
 
 		if item.CreationTimestamp.Time.After(backup.CreationTimestamp.Time) {
+			errCondition := meta.FindStatusCondition(backup.Status.Conditions, v1beta1.ConditionTypeError)
+			message := "Backup moved to Failed state as more recent backup(s) is available."
+			if errCondition != nil {
+				message = errCondition.Message + "\n" + message
+			}
+
 			backup.Status.State = v1beta1.GcpNfsBackupFailed
 			return composed.PatchStatus(backup).
+				SetExclusiveConditions(metav1.Condition{
+					Type:    v1beta1.ConditionTypeError,
+					Status:  metav1.ConditionTrue,
+					Reason:  v1beta1.ReasonBackupFailed,
+					Message: message,
+				}).
 				SuccessLogMsg("GcpNfsVolumeBackup status updated with Failed state. ").
 				SuccessError(composed.StopAndForget).
 				Run(ctx, state)
diff --git a/pkg/skr/gcpnfsvolumebackup/markFailed_test.go b/pkg/skr/gcpnfsvolumebackup/markFailed_test.go
index 63588b18..29dbf930 100644
--- a/pkg/skr/gcpnfsvolumebackup/markFailed_test.go
+++ b/pkg/skr/gcpnfsvolumebackup/markFailed_test.go
@@ -220,6 +220,9 @@ func (suite *markFailedSuite) TestWhenBackupIsNotLatestAndInError() {
 	suite.Nil(err)
 
 	suite.Equal(v1beta1.GcpNfsBackupFailed, fromK8s.Status.State)
+	suite.Equal(v1beta1.ConditionTypeError, fromK8s.Status.Conditions[0].Type)
+	suite.Equal(v1.ConditionTrue, fromK8s.Status.Conditions[0].Status)
+	suite.Equal(v1beta1.ReasonBackupFailed, fromK8s.Status.Conditions[0].Reason)
 }
 
 func TestMarkFailed(t *testing.T) {