diff --git a/internal/provisioner/controller/gatewayclass.go b/internal/provisioner/controller/gatewayclass.go
index fa511d9a0c9..189ef560853 100644
--- a/internal/provisioner/controller/gatewayclass.go
+++ b/internal/provisioner/controller/gatewayclass.go
@@ -246,11 +246,22 @@ func (r *gatewayClassReconciler) setAcceptedCondition(
 	reason gatewayapi_v1beta1.GatewayClassConditionReason,
 	message string,
 ) error {
+	currentAcceptedCondition := metav1.Condition{
+		Type:               string(gatewayapi_v1beta1.GatewayClassConditionStatusAccepted),
+		Status:             status,
+		ObservedGeneration: gatewayClass.Generation,
+		LastTransitionTime: metav1.Now(),
+		Reason:             string(reason),
+		Message:            message,
+	}
 	var newConds []metav1.Condition
 	for _, cond := range gatewayClass.Status.Conditions {
 		if cond.Type == string(gatewayapi_v1beta1.GatewayClassConditionStatusAccepted) {
 			if cond.Status == status {
-				return nil
+				// If status hasn't changed, don't change the condition, just
+				// update the generation.
+				currentAcceptedCondition = cond
+				currentAcceptedCondition.ObservedGeneration = gatewayClass.Generation
 			}
 
 			continue
@@ -262,14 +273,7 @@ func (r *gatewayClassReconciler) setAcceptedCondition(
 	r.log.WithValues("gatewayclass-name", gatewayClass.Name).Info(fmt.Sprintf("setting gateway class's Accepted condition to %s", status))
 
 	// nolint:gocritic
-	gatewayClass.Status.Conditions = append(newConds, metav1.Condition{
-		Type:               string(gatewayapi_v1beta1.GatewayClassConditionStatusAccepted),
-		Status:             status,
-		ObservedGeneration: gatewayClass.Generation,
-		LastTransitionTime: metav1.Now(),
-		Reason:             string(reason),
-		Message:            message,
-	})
+	gatewayClass.Status.Conditions = append(newConds, currentAcceptedCondition)
 
 	if err := r.client.Status().Update(ctx, gatewayClass); err != nil {
 		return fmt.Errorf("failed to set gatewayclass %s accepted condition: %w", gatewayClass.Name, err)
diff --git a/internal/provisioner/controller/gatewayclass_test.go b/internal/provisioner/controller/gatewayclass_test.go
index f6e515bd20a..383951a5481 100644
--- a/internal/provisioner/controller/gatewayclass_test.go
+++ b/internal/provisioner/controller/gatewayclass_test.go
@@ -384,6 +384,31 @@ func TestGatewayClassReconcile(t *testing.T) {
 				Reason: string(gatewayv1beta1.GatewayClassReasonInvalidParameters),
 			},
 		},
+		"gatewayclass with status from previous generation is updated": {
+			gatewayClass: &gatewayv1beta1.GatewayClass{
+				ObjectMeta: metav1.ObjectMeta{
+					Name:       "gatewayclass-1",
+					Generation: 2,
+				},
+				Spec: gatewayv1beta1.GatewayClassSpec{
+					ControllerName: "projectcontour.io/gateway-controller",
+				},
+				Status: gatewayv1beta1.GatewayClassStatus{
+					Conditions: []metav1.Condition{{
+						Type:               string(gatewayv1beta1.GatewayClassConditionStatusAccepted),
+						Status:             metav1.ConditionTrue,
+						Reason:             string(gatewayv1beta1.GatewayClassReasonAccepted),
+						ObservedGeneration: 1,
+					}},
+				},
+			},
+			wantCondition: &metav1.Condition{
+				Type:               string(gatewayv1beta1.GatewayClassConditionStatusAccepted),
+				Status:             metav1.ConditionTrue,
+				Reason:             string(gatewayv1beta1.GatewayClassReasonAccepted),
+				ObservedGeneration: 2,
+			},
+		},
 	}
 
 	for name, tc := range tests {
@@ -424,6 +449,7 @@ func TestGatewayClassReconcile(t *testing.T) {
 				assert.Equal(t, tc.wantCondition.Type, res.Status.Conditions[0].Type)
 				assert.Equal(t, tc.wantCondition.Status, res.Status.Conditions[0].Status)
 				assert.Equal(t, tc.wantCondition.Reason, res.Status.Conditions[0].Reason)
+				assert.Equal(t, tc.wantCondition.ObservedGeneration, res.Status.Conditions[0].ObservedGeneration)
 			}
 
 			if tc.assertions != nil {