diff --git a/api/v1alpha1/eventing_types.go b/api/v1alpha1/eventing_types.go
index f2d61252..b0998694 100644
--- a/api/v1alpha1/eventing_types.go
+++ b/api/v1alpha1/eventing_types.go
@@ -66,6 +66,7 @@ const (
 	ConditionReasonEventMeshSubManagerReady      ConditionReason = "EventMeshSubscriptionManagerReady"
 	ConditionReasonEventMeshSubManagerFailed     ConditionReason = "EventMeshSubscriptionManagerFailed"
 	ConditionReasonEventMeshSubManagerStopFailed ConditionReason = "EventMeshSubscriptionManagerStopFailed"
+	ConditionReasonSubscriptionManagerProcessing ConditionReason = "SubscriptionManagerProcessing"
 )
 
 // NOTE: json tags are required.  Any new fields you add must have json tags for the fields to be serialized.
@@ -86,9 +87,10 @@ type Eventing struct {
 
 // EventingStatus defines the observed state of Eventing
 type EventingStatus struct {
-	ActiveBackend BackendType        `json:"activeBackend"`
-	State         string             `json:"state"`
-	Conditions    []metav1.Condition `json:"conditions,omitempty"`
+	ActiveBackend     BackendType        `json:"activeBackend"`
+	BackendConfigHash uint64             `json:"specHash"`
+	State             string             `json:"state"`
+	Conditions        []metav1.Condition `json:"conditions,omitempty"`
 }
 
 // EventingSpec defines the desired state of Eventing
diff --git a/config/crd/bases/operator.kyma-project.io_eventings.yaml b/config/crd/bases/operator.kyma-project.io_eventings.yaml
index 3458e3df..a586a239 100644
--- a/config/crd/bases/operator.kyma-project.io_eventings.yaml
+++ b/config/crd/bases/operator.kyma-project.io_eventings.yaml
@@ -325,10 +325,14 @@ spec:
                   - type
                   type: object
                 type: array
+              specHash:
+                format: int64
+                type: integer
               state:
                 type: string
             required:
             - activeBackend
+            - specHash
             - state
             type: object
         type: object
diff --git a/go.mod b/go.mod
index 6b1327af..e72931ca 100644
--- a/go.mod
+++ b/go.mod
@@ -12,6 +12,7 @@ require (
 	github.com/kyma-incubator/api-gateway v0.0.0-20220819093753-296e6704d413
 	github.com/kyma-project/kyma/components/eventing-controller v0.0.0-20230921090956-f27b81d3d8cb
 	github.com/kyma-project/nats-manager v0.0.0-20230718133808-9241d3b926bd
+	github.com/mitchellh/hashstructure/v2 v2.0.2
 	github.com/onsi/gomega v1.27.10
 	github.com/pkg/errors v0.9.1
 	github.com/stretchr/testify v1.8.4
@@ -50,7 +51,6 @@ require (
 	github.com/mailru/easyjson v0.7.7 // indirect
 	github.com/matttproud/golang_protobuf_extensions v1.0.4 // indirect
 	github.com/minio/highwayhash v1.0.2 // indirect
-	github.com/mitchellh/hashstructure/v2 v2.0.2 // indirect
 	github.com/modern-go/concurrent v0.0.0-20180306012644-bacd9c7ef1dd // indirect
 	github.com/modern-go/reflect2 v1.0.2 // indirect
 	github.com/munnerz/goautoneg v0.0.0-20191010083416-a7dc8b61c822 // indirect
diff --git a/internal/controller/eventing/controller.go b/internal/controller/eventing/controller.go
index c409d9b2..9c20a9d5 100644
--- a/internal/controller/eventing/controller.go
+++ b/internal/controller/eventing/controller.go
@@ -384,7 +384,7 @@ func (r *Reconciler) reconcileNATSBackend(ctx context.Context, eventing *eventin
 	}
 
 	// start NATS subscription manager
-	if err := r.reconcileNATSSubManager(eventing, log); err != nil {
+	if err := r.reconcileNATSSubManager(ctx, eventing, log); err != nil {
 		return ctrl.Result{}, r.syncStatusWithNATSErr(ctx, eventing, err, log)
 	}
 
diff --git a/internal/controller/eventing/mocks/controller.go b/internal/controller/eventing/mocks/controller.go
index 38727445..ad5f91df 100644
--- a/internal/controller/eventing/mocks/controller.go
+++ b/internal/controller/eventing/mocks/controller.go
@@ -1,4 +1,4 @@
-// Code generated by mockery v2.30.1. DO NOT EDIT.
+// Code generated by mockery v2.30.16. DO NOT EDIT.
 
 package mocks
 
diff --git a/internal/controller/eventing/mocks/manager.go b/internal/controller/eventing/mocks/manager.go
index 0080ab91..9286f29b 100644
--- a/internal/controller/eventing/mocks/manager.go
+++ b/internal/controller/eventing/mocks/manager.go
@@ -1,4 +1,4 @@
-// Code generated by mockery v2.30.1. DO NOT EDIT.
+// Code generated by mockery v2.30.16. DO NOT EDIT.
 
 package mocks
 
diff --git a/internal/controller/eventing/mocks/nats_config_handler.go b/internal/controller/eventing/mocks/nats_config_handler.go
index 75479e12..88b6f69f 100644
--- a/internal/controller/eventing/mocks/nats_config_handler.go
+++ b/internal/controller/eventing/mocks/nats_config_handler.go
@@ -1,4 +1,4 @@
-// Code generated by mockery v2.30.1. DO NOT EDIT.
+// Code generated by mockery v2.30.16. DO NOT EDIT.
 
 package mocks
 
diff --git a/internal/controller/eventing/nats.go b/internal/controller/eventing/nats.go
index 4521686e..eb935c9a 100644
--- a/internal/controller/eventing/nats.go
+++ b/internal/controller/eventing/nats.go
@@ -3,6 +3,8 @@ package eventing
 import (
 	"context"
 	"fmt"
+	eventingv1alpha1 "github.com/kyma-project/eventing-manager/api/v1alpha1"
+	ecenv "github.com/kyma-project/kyma/components/eventing-controller/pkg/env"
 
 	"github.com/kyma-project/eventing-manager/api/v1alpha1"
 	"github.com/kyma-project/eventing-manager/pkg/env"
@@ -12,12 +14,21 @@ import (
 	"go.uber.org/zap"
 )
 
-func (r *Reconciler) reconcileNATSSubManager(eventing *v1alpha1.Eventing, log *zap.SugaredLogger) error {
+func (r *Reconciler) reconcileNATSSubManager(ctx context.Context, eventing *v1alpha1.Eventing, log *zap.SugaredLogger) error {
+	// get the subscription config
+	defaultSubsConfig := r.getDefaultSubscriptionConfig()
+	// get the nats config
+	natsConfig, err := r.natsConfigHandler.GetNatsConfig(context.Background(), *eventing)
+	if err != nil {
+		return err
+	}
+	// get the hash of current config
+	specHash, err := r.getNATSBackendConfigHash(defaultSubsConfig, *natsConfig)
+	if err != nil {
+		return err
+	}
+
 	if r.natsSubManager == nil {
-		natsConfig, err := r.natsConfigHandler.GetNatsConfig(context.Background(), *eventing)
-		if err != nil {
-			return err
-		}
 		// create instance of NATS subscription manager
 		natsSubManager := r.subManagerFactory.NewJetStreamManager(*eventing, *natsConfig)
 
@@ -29,6 +40,24 @@ func (r *Reconciler) reconcileNATSSubManager(eventing *v1alpha1.Eventing, log *z
 		log.Info("NATS subscription-manager initialized")
 		// save instance only when init is successful.
 		r.natsSubManager = natsSubManager
+	} else {
+		// update the config if hashes differ
+		if eventing.Status.BackendConfigHash != specHash && r.isNATSSubManagerStarted {
+			// set the eventing CR status to processing
+			if err = r.syncStatusWithSubscriptionManagerProcessingWithReason(ctx,
+				eventingv1alpha1.ConditionReasonSubscriptionManagerProcessing,
+				eventing, "Updating NATS subscription-manager with new config.", log); err != nil {
+				return err
+			}
+
+			// stop the subsManager without cleanup
+
+			if err := r.stopNATSSubManager(false, log); err != nil {
+				return err
+			}
+			return nil
+
+		}
 	}
 
 	if r.isNATSSubManagerStarted {
@@ -36,10 +65,19 @@ func (r *Reconciler) reconcileNATSSubManager(eventing *v1alpha1.Eventing, log *z
 		return nil
 	}
 
-	// start the subscription manager.
-	defaultSubsConfig := r.eventingManager.GetBackendConfig().
-		DefaultSubscriptionConfig.ToECENVDefaultSubscriptionConfig()
+	err = r.startNATSSubManager(defaultSubsConfig, log)
+	if err != nil {
+		return err
+	}
 
+	// update the hash of the current config only once subManager is started
+	eventing.Status.BackendConfigHash = specHash
+	log.Info(fmt.Sprintf("NATS subscription-manager has been updated, new hash: %d", specHash))
+
+	return nil
+}
+
+func (r *Reconciler) startNATSSubManager(defaultSubsConfig ecenv.DefaultSubscriptionConfig, log *zap.SugaredLogger) error {
 	if err := r.natsSubManager.Start(defaultSubsConfig, ecsubscriptionmanager.Params{}); err != nil {
 		return err
 	}
@@ -47,10 +85,14 @@ func (r *Reconciler) reconcileNATSSubManager(eventing *v1alpha1.Eventing, log *z
 	log.Info("NATS subscription-manager started")
 	// update flag so it do not try to start the manager again.
 	r.isNATSSubManagerStarted = true
-
 	return nil
 }
 
+func (r *Reconciler) getDefaultSubscriptionConfig() ecenv.DefaultSubscriptionConfig {
+	return r.eventingManager.GetBackendConfig().
+		DefaultSubscriptionConfig.ToECENVDefaultSubscriptionConfig()
+}
+
 func (r *Reconciler) stopNATSSubManager(runCleanup bool, log *zap.SugaredLogger) error {
 	log.Debug("stopping NATS subscription-manager")
 	if r.natsSubManager == nil || !r.isNATSSubManagerStarted {
diff --git a/internal/controller/eventing/nats_test.go b/internal/controller/eventing/nats_test.go
index 188e6b75..7824ce40 100644
--- a/internal/controller/eventing/nats_test.go
+++ b/internal/controller/eventing/nats_test.go
@@ -27,6 +27,8 @@ func Test_reconcileNATSSubManager(t *testing.T) {
 
 	// given - common for all test cases.
 	givenEventing := utils.NewEventingCR(
+		utils.WithEventingCRName("eventing"),
+		utils.WithEventingCRNamespace("kyma-system"),
 		utils.WithEventingStreamData("Memory", "650M", 99, 98),
 		utils.WithEventingEventTypePrefix("one.two.three"),
 	)
@@ -60,33 +62,46 @@ func Test_reconcileNATSSubManager(t *testing.T) {
 		name                         string
 		givenIsNATSSubManagerStarted bool
 		givenShouldRetry             bool
+		givenUpdateTest              bool
+		givenHashBefore              uint64
 		givenNATSSubManagerMock      func() *ecsubmanagermocks.Manager
 		givenEventingManagerMock     func() *managermocks.Manager
 		givenNatsConfigHandlerMock   func() *mocks.NatsConfigHandler
 		givenManagerFactoryMock      func(*ecsubmanagermocks.Manager) *subscriptionmanagermocks.ManagerFactory
 		wantAssertCheck              bool
 		wantError                    error
+		wantHashAfter                uint64
 	}{
 		{
 			name:                         "it should do nothing because subscription manager is already started",
 			givenIsNATSSubManagerStarted: true,
+			givenHashBefore:              uint64(10896066536699660582),
 			givenNATSSubManagerMock: func() *ecsubmanagermocks.Manager {
-				return new(ecsubmanagermocks.Manager)
+				jetStreamSubManagerMock := new(ecsubmanagermocks.Manager)
+				jetStreamSubManagerMock.On("Start", mock.Anything, mock.Anything).Return(nil).Once()
+				jetStreamSubManagerMock.On("Stop", mock.Anything, mock.Anything).Return(nil).Once()
+				return jetStreamSubManagerMock
 			},
 			givenEventingManagerMock: func() *managermocks.Manager {
-				return nil
+				emMock := new(managermocks.Manager)
+				emMock.On("GetBackendConfig").Return(givenBackendConfig)
+				return emMock
 			},
 			givenNatsConfigHandlerMock: func() *mocks.NatsConfigHandler {
-				return nil
+				nchMock := new(mocks.NatsConfigHandler)
+				nchMock.On("GetNatsConfig", mock.Anything, mock.Anything).Return(givenNATSConfig, nil)
+				return nchMock
 			},
 			givenManagerFactoryMock: func(_ *ecsubmanagermocks.Manager) *subscriptionmanagermocks.ManagerFactory {
 				return nil
 			},
+			wantHashAfter: uint64(10896066536699660582),
 		},
 		{
 			name: "it should initialize and start subscription manager because " +
 				"subscription manager is not started",
 			givenIsNATSSubManagerStarted: false,
+			givenHashBefore:              uint64(0),
 			givenNATSSubManagerMock: func() *ecsubmanagermocks.Manager {
 				jetStreamSubManagerMock := new(ecsubmanagermocks.Manager)
 				jetStreamSubManagerMock.On("Init", mock.Anything).Return(nil).Once()
@@ -109,11 +124,13 @@ func Test_reconcileNATSSubManager(t *testing.T) {
 				return subManagerFactoryMock
 			},
 			wantAssertCheck: true,
+			wantHashAfter:   uint64(10896066536699660582),
 		},
 		{
 			name: "it should retry to start subscription manager when subscription manager was " +
 				"successfully initialized but failed to start",
 			givenIsNATSSubManagerStarted: false,
+			givenHashBefore:              uint64(0),
 			givenNATSSubManagerMock: func() *ecsubmanagermocks.Manager {
 				jetStreamSubManagerMock := new(ecsubmanagermocks.Manager)
 				jetStreamSubManagerMock.On("Init", mock.Anything).Return(nil).Once()
@@ -138,6 +155,38 @@ func Test_reconcileNATSSubManager(t *testing.T) {
 			wantAssertCheck:  true,
 			givenShouldRetry: true,
 			wantError:        errors.New("failed to start"),
+			wantHashAfter:    uint64(0),
+		},
+		{
+			name:                         "it should update the subscription manager when the backend config changes",
+			givenIsNATSSubManagerStarted: true,
+			givenHashBefore:              uint64(17644964695675018020),
+			givenUpdateTest:              true,
+			givenNATSSubManagerMock: func() *ecsubmanagermocks.Manager {
+				jetStreamSubManagerMock := new(ecsubmanagermocks.Manager)
+				jetStreamSubManagerMock.On("Init", mock.Anything).Return(nil).Once()
+				jetStreamSubManagerMock.On("Start", mock.Anything, mock.Anything).Return(nil).Once()
+				jetStreamSubManagerMock.On("Stop", mock.Anything, mock.Anything).Return(nil).Once()
+				return jetStreamSubManagerMock
+			},
+			givenEventingManagerMock: func() *managermocks.Manager {
+				emMock := new(managermocks.Manager)
+				emMock.On("GetBackendConfig").Return(givenBackendConfig).Twice()
+				return emMock
+			},
+			givenNatsConfigHandlerMock: func() *mocks.NatsConfigHandler {
+				nchMock := new(mocks.NatsConfigHandler)
+				nchMock.On("GetNatsConfig", mock.Anything, mock.Anything).Return(givenNATSConfig, nil)
+				return nchMock
+			},
+			givenManagerFactoryMock: func(subManager *ecsubmanagermocks.Manager) *subscriptionmanagermocks.ManagerFactory {
+				subManagerFactoryMock := new(subscriptionmanagermocks.ManagerFactory)
+				subManagerFactoryMock.On("NewJetStreamManager", mock.Anything, mock.Anything).Return(subManager).Once()
+				return subManagerFactoryMock
+			},
+			wantAssertCheck:  true,
+			givenShouldRetry: true,
+			wantHashAfter:    uint64(10896066536699660582),
 		},
 	}
 
@@ -145,10 +194,8 @@ func Test_reconcileNATSSubManager(t *testing.T) {
 	for _, tc := range testCases {
 		tc := tc
 		t.Run(tc.name, func(t *testing.T) {
-			t.Parallel()
-
 			// given
-			testEnv := NewMockedUnitTestEnvironment(t)
+			testEnv := NewMockedUnitTestEnvironment(t, givenEventing)
 			logger := testEnv.Reconciler.logger.WithContext().Named(ControllerName)
 
 			// get mocks from test-case.
@@ -163,18 +210,29 @@ func Test_reconcileNATSSubManager(t *testing.T) {
 			testEnv.Reconciler.natsConfigHandler = givenNatConfigHandlerMock
 			testEnv.Reconciler.subManagerFactory = givenManagerFactoryMock
 			testEnv.Reconciler.natsSubManager = nil
-			if givenManagerFactoryMock == nil {
+			if givenManagerFactoryMock == nil || tc.givenUpdateTest {
 				testEnv.Reconciler.natsSubManager = givenNATSSubManagerMock
 			}
 
+			// set the backend hash before depending on test
+			givenEventing.Status.BackendConfigHash = tc.givenHashBefore
+
 			// when
-			err := testEnv.Reconciler.reconcileNATSSubManager(givenEventing, logger)
+			err := testEnv.Reconciler.reconcileNATSSubManager(testEnv.Context, givenEventing, logger)
 			if err != nil && tc.givenShouldRetry {
 				// This is to test the scenario where initialization of natsSubManager was successful but
 				// starting the natsSubManager failed. So on next try it should again try to start the natsSubManager.
-				err = testEnv.Reconciler.reconcileNATSSubManager(givenEventing, logger)
+				err = testEnv.Reconciler.reconcileNATSSubManager(testEnv.Context, givenEventing, logger)
+			}
+			if err == nil && tc.givenShouldRetry {
+				// Run reconcile again with newBackendConfig:
+				err = testEnv.Reconciler.reconcileNATSSubManager(testEnv.Context, givenEventing, logger)
+				require.NoError(t, err)
 			}
 
+			// check for backend hash after
+			require.Equal(t, tc.wantHashAfter, givenEventing.Status.BackendConfigHash)
+
 			// then
 			if tc.wantError != nil {
 				require.Error(t, err)
@@ -187,9 +245,11 @@ func Test_reconcileNATSSubManager(t *testing.T) {
 
 			if tc.wantAssertCheck {
 				givenNATSSubManagerMock.AssertExpectations(t)
-				givenManagerFactoryMock.AssertExpectations(t)
 				givenEventingManagerMock.AssertExpectations(t)
-				givenNATSSubManagerMock.AssertExpectations(t)
+				givenNatConfigHandlerMock.AssertExpectations(t)
+			}
+			if !tc.givenIsNATSSubManagerStarted {
+				givenManagerFactoryMock.AssertExpectations(t)
 			}
 		})
 	}
diff --git a/internal/controller/eventing/status.go b/internal/controller/eventing/status.go
index 5fcdb0ff..79a22472 100644
--- a/internal/controller/eventing/status.go
+++ b/internal/controller/eventing/status.go
@@ -71,6 +71,16 @@ func (r *Reconciler) syncStatusWithSubscriptionManagerErrWithReason(ctx context.
 	return errors.Join(err, r.syncEventingStatus(ctx, eventing, log))
 }
 
+func (r *Reconciler) syncStatusWithSubscriptionManagerProcessingWithReason(ctx context.Context,
+	reason eventingv1alpha1.ConditionReason,
+	eventing *eventingv1alpha1.Eventing,
+	message string, log *zap.SugaredLogger) error {
+	// Set processing state in status
+	eventing.Status.SetStateProcessing()
+	eventing.Status.UpdateConditionSubscriptionManagerReady(metav1.ConditionFalse, reason, message)
+	return r.syncEventingStatus(ctx, eventing, log)
+}
+
 // syncStatusWithSubscriptionManagerFailedCondition updates subscription manager condition and
 // sets an error state. It doesn't return the incoming error.
 func (r *Reconciler) syncStatusWithSubscriptionManagerFailedCondition(ctx context.Context,
diff --git a/internal/controller/eventing/utils.go b/internal/controller/eventing/utils.go
index c8e25553..2543beea 100644
--- a/internal/controller/eventing/utils.go
+++ b/internal/controller/eventing/utils.go
@@ -2,8 +2,10 @@ package eventing
 
 import (
 	"context"
-
 	eventingv1alpha1 "github.com/kyma-project/eventing-manager/api/v1alpha1"
+	"github.com/kyma-project/eventing-manager/pkg/env"
+	ecenv "github.com/kyma-project/kyma/components/eventing-controller/pkg/env"
+	"github.com/mitchellh/hashstructure/v2"
 
 	ctrl "sigs.k8s.io/controller-runtime"
 	"sigs.k8s.io/controller-runtime/pkg/controller/controllerutil"
@@ -29,3 +31,15 @@ func (r *Reconciler) removeFinalizer(ctx context.Context, eventing *eventingv1al
 
 	return ctrl.Result{}, nil
 }
+
+func (r *Reconciler) getNATSBackendConfigHash(defaultSubscriptionConfig ecenv.DefaultSubscriptionConfig, natsConfig env.NATSConfig) (uint64, error) {
+	natsBackendConfig := struct {
+		ecenv.DefaultSubscriptionConfig
+		env.NATSConfig
+	}{defaultSubscriptionConfig, natsConfig}
+	hash, err := hashstructure.Hash(natsBackendConfig, hashstructure.FormatV2, nil)
+	if err != nil {
+		return 0, err
+	}
+	return hash, nil
+}
diff --git a/pkg/eventing/mocks/manager.go b/pkg/eventing/mocks/manager.go
index c7ba7c9a..4fc6d764 100644
--- a/pkg/eventing/mocks/manager.go
+++ b/pkg/eventing/mocks/manager.go
@@ -1,4 +1,4 @@
-// Code generated by mockery v2.30.1. DO NOT EDIT.
+// Code generated by mockery v2.30.16. DO NOT EDIT.
 
 package mocks
 
diff --git a/pkg/k8s/mocks/client.go b/pkg/k8s/mocks/client.go
index 8900a22e..4f0f0808 100644
--- a/pkg/k8s/mocks/client.go
+++ b/pkg/k8s/mocks/client.go
@@ -1,4 +1,4 @@
-// Code generated by mockery v2.30.1. DO NOT EDIT.
+// Code generated by mockery v2.30.16. DO NOT EDIT.
 
 package mocks
 
diff --git a/pkg/subscriptionmanager/mocks/ec/manager.go b/pkg/subscriptionmanager/mocks/ec/manager.go
index 44007a8f..913f6b72 100644
--- a/pkg/subscriptionmanager/mocks/ec/manager.go
+++ b/pkg/subscriptionmanager/mocks/ec/manager.go
@@ -1,4 +1,4 @@
-// Code generated by mockery v2.30.1. DO NOT EDIT.
+// Code generated by mockery v2.30.16. DO NOT EDIT.
 
 package mocks
 
diff --git a/pkg/subscriptionmanager/mocks/manager_factory.go b/pkg/subscriptionmanager/mocks/manager_factory.go
index 16d0caf1..850d0973 100644
--- a/pkg/subscriptionmanager/mocks/manager_factory.go
+++ b/pkg/subscriptionmanager/mocks/manager_factory.go
@@ -1,4 +1,4 @@
-// Code generated by mockery v2.30.1. DO NOT EDIT.
+// Code generated by mockery v2.30.16. DO NOT EDIT.
 
 package mocks