diff --git a/pkg/registration/spoke/spokeagent.go b/pkg/registration/spoke/spokeagent.go
index 5b9cfeeb9..2a7da44ee 100644
--- a/pkg/registration/spoke/spokeagent.go
+++ b/pkg/registration/spoke/spokeagent.go
@@ -359,7 +359,10 @@ func (o *SpokeAgentConfig) RunSpokeAgentWithSpokeInformers(ctx context.Context,
 		if err := wait.PollUntilContextCancel(bootstrapCtx, 1*time.Second, true, o.internalHubConfigValidFunc); err != nil {
 			// TODO need run the bootstrap CSR forever to re-establish the client-cert if it is ever lost.
 			stopBootstrap()
-			return fmt.Errorf("failed to wait for hub client config for managed cluster to be ready: %w", err)
+			// DO NOT return error if context canceled, allows leader election to release the leadership.
+			if err != context.Canceled {
+				return fmt.Errorf("failed to wait for hub client config for managed cluster to be ready: %w", err)
+			}
 		}
 
 		// stop the clientCertForHubController for bootstrap once the hub client config is ready
diff --git a/pkg/singleton/spoke/agent.go b/pkg/singleton/spoke/agent.go
index c0c0e81df..3ede7e678 100644
--- a/pkg/singleton/spoke/agent.go
+++ b/pkg/singleton/spoke/agent.go
@@ -42,7 +42,10 @@ func (a *AgentConfig) RunSpokeAgent(ctx context.Context, controllerContext *cont
 	// wait for the hub client config ready.
 	klog.Info("Waiting for hub client config and managed cluster to be ready")
 	if err := wait.PollUntilContextCancel(ctx, 1*time.Second, true, a.registrationConfig.IsHubKubeConfigValid); err != nil {
-		return err
+		// DO NOT return error if context canceled, allows leader election to release the leadership.
+		if err != context.Canceled {
+			return err
+		}
 	}
 
 	// start work agent