diff --git a/api/v1/multiclusterengine_types.go b/api/v1/multiclusterengine_types.go
index 5357b9cb..5e9fec7e 100644
--- a/api/v1/multiclusterengine_types.go
+++ b/api/v1/multiclusterengine_types.go
@@ -143,6 +143,7 @@ type PhaseType string
 
 const (
 	MultiClusterEnginePhaseProgressing   PhaseType = "Progressing"
+	MultiClusterEnginePhasePaused        PhaseType = "Paused"
 	MultiClusterEnginePhaseAvailable     PhaseType = "Available"
 	MultiClusterEnginePhaseUninstalling  PhaseType = "Uninstalling"
 	MultiClusterEnginePhaseError         PhaseType = "Error"
diff --git a/pkg/status/status.go b/pkg/status/status.go
index 2e007abe..52b01e19 100644
--- a/pkg/status/status.go
+++ b/pkg/status/status.go
@@ -95,6 +95,12 @@ func (sm *StatusTracker) reportConditions() []bpv1.MultiClusterEngineCondition {
 func (sm *StatusTracker) reportPhase(mce bpv1.MultiClusterEngine, components []bpv1.ComponentCondition, conditions []bpv1.MultiClusterEngineCondition) bpv1.PhaseType {
 	progress := getCondition(conditions, bpv1.MultiClusterEngineProgressing)
 
+	for _, condition := range conditions {
+		if condition.Reason == PausedReason {
+			return bpv1.MultiClusterEnginePhasePaused
+		}
+	}
+
 	// If operator isn't progressing show error phase
 	if progress != nil && progress.Status == metav1.ConditionFalse {
 		return bpv1.MultiClusterEnginePhaseError