diff --git a/controllers/tf_controller.go b/controllers/tf_controller.go
index 616fc690..7f85e407 100644
--- a/controllers/tf_controller.go
+++ b/controllers/tf_controller.go
@@ -598,6 +598,11 @@ func (r *TerraformReconciler) shouldReconcile(terraform *infrav1.Terraform, sour
 		return true, "source revision has changed since last reconciliation attempt", 0
 	}
 
+	// reconcile if we were last blocked on a not ready dependency
+	if conditions.HasAnyReason(terraform, meta.ReadyCondition, infrav1.DependencyNotReadyReason) {
+		return true, "previously blocked on not ready dependency", 0
+	}
+
 	// reconcile if the last reconciliation failed, and we are within the retry interval
 	if terraform.Status.ReconciliationFailures > 0 && terraform.Status.LastPlanAt != nil && !conditions.IsTrue(terraform, meta.ReadyCondition) {
 		nextRetry := terraform.Status.LastPlanAt.Add(terraform.GetRetryInterval())
diff --git a/controllers/tf_controller_interval_test.go b/controllers/tf_controller_interval_test.go
index d096dea3..be8db4c5 100644
--- a/controllers/tf_controller_interval_test.go
+++ b/controllers/tf_controller_interval_test.go
@@ -227,6 +227,40 @@ func TestShouldReconcileWhenForceEnabled(t *testing.T) {
 	g.Expect(requeueAfter).To(Equal(time.Duration(0)))
 }
 
+func TestShouldReconcileWhenDependencyNotReady(t *testing.T) {
+	Spec("This spec covers reconciling when a dependency is not ready.")
+	It("should return true without delay.")
+
+	g := NewWithT(t)
+	reconciler := &TerraformReconciler{}
+
+	tf := &infrav1.Terraform{
+		ObjectMeta: metav1.ObjectMeta{
+			Generation: 1,
+		},
+		Spec: infrav1.TerraformSpec{
+			Interval: metav1.Duration{Duration: 24 * time.Hour},
+		},
+		Status: infrav1.TerraformStatus{
+			LastPlanAt:         &metav1.Time{Time: time.Now()},
+			ObservedGeneration: 1,
+			Conditions: []metav1.Condition{
+				{
+					Message: "Dependencies do not meet ready condition, retrying in 30s",
+					Reason:  infrav1.DependencyNotReadyReason,
+					Type:    meta.ReadyCondition,
+					Status:  metav1.ConditionFalse,
+				},
+			},
+		},
+	}
+
+	shouldReconcile, reason, requeueAfter := reconciler.shouldReconcile(tf, nil)
+	g.Expect(shouldReconcile).To(BeTrue())
+	g.Expect(reason).To(Equal("previously blocked on not ready dependency"))
+	g.Expect(requeueAfter).To(Equal(time.Duration(0)))
+}
+
 func TestShouldReconcileWhenSourceRevisionChanges(t *testing.T) {
 	Spec("This spec covers reconciling when the source revision has changed.")
 	It("should return true without delay.")