diff --git a/pkg/reconciler/image/image.go b/pkg/reconciler/image/image.go
index 9bf7fe1fc..1f8362fd1 100644
--- a/pkg/reconciler/image/image.go
+++ b/pkg/reconciler/image/image.go
@@ -143,7 +143,6 @@ func (c *Reconciler) reconcileImage(ctx context.Context, image *buildapi.Image)
 		return nil, err
 	} else if k8serrors.IsNotFound(err) {
 		image.Status.Conditions = image.BuilderNotFound()
-		image.Status.ObservedGeneration = image.Generation
 		return image, nil
 	}
 
@@ -153,6 +152,7 @@ func (c *Reconciler) reconcileImage(ctx context.Context, image *buildapi.Image)
 	}
 
 	if lastBuild.IsRunning() {
+		image.Status.Conditions = buildRunningCondition(lastBuild, builder)
 		return image, nil
 	}
 
diff --git a/pkg/reconciler/image/image_test.go b/pkg/reconciler/image/image_test.go
index 5f3ad17f1..b56e211b8 100644
--- a/pkg/reconciler/image/image_test.go
+++ b/pkg/reconciler/image/image_test.go
@@ -2033,7 +2033,7 @@ func testImageReconciler(t *testing.T, when spec.G, it spec.S) {
 				})
 			})
 
-			it("does not schedule a build if the previous build is running", func() {
+			it("does not schedule a build if the previous build is running and updates image status with build status", func() {
 				imageWithBuilder.Status.BuildCounter = 1
 				imageWithBuilder.Status.LatestBuildRef = "image-name-build-1"
 
@@ -2073,8 +2073,9 @@ func testImageReconciler(t *testing.T, when spec.G, it spec.S) {
 								Status: corev1alpha1.Status{
 									Conditions: corev1alpha1.Conditions{
 										{
-											Type:   corev1alpha1.ConditionSucceeded,
-											Status: corev1.ConditionUnknown,
+											Type:    corev1alpha1.ConditionSucceeded,
+											Status:  corev1.ConditionUnknown,
+											Message: "Some build message",
 										},
 									},
 								},
@@ -2082,6 +2083,33 @@ func testImageReconciler(t *testing.T, when spec.G, it spec.S) {
 						},
 					},
 					WantErr: false,
+					WantStatusUpdates: []clientgotesting.UpdateActionImpl{
+						{
+							Object: &buildapi.Image{
+								ObjectMeta: imageWithBuilder.ObjectMeta,
+								Spec:       imageWithBuilder.Spec,
+								Status: buildapi.ImageStatus{
+									Status: corev1alpha1.Status{
+										ObservedGeneration: originalGeneration,
+										Conditions: corev1alpha1.Conditions{
+											{
+												Type:    corev1alpha1.ConditionReady,
+												Status:  corev1.ConditionUnknown,
+												Reason:  "BuildRunning",
+												Message: "Some build message",
+											},
+											{
+												Type:   buildapi.ConditionBuilderReady,
+												Status: corev1.ConditionTrue,
+											},
+										},
+									},
+									LatestBuildRef: "image-name-build-1",
+									BuildCounter:   1,
+								},
+							},
+						},
+					},
 				})
 			})
 
diff --git a/pkg/reconciler/image/reconcile_build.go b/pkg/reconciler/image/reconcile_build.go
index f782e7ccb..003bd8461 100644
--- a/pkg/reconciler/image/reconcile_build.go
+++ b/pkg/reconciler/image/reconcile_build.go
@@ -13,6 +13,8 @@ import (
 	corev1alpha1 "github.com/pivotal/kpack/pkg/apis/core/v1alpha1"
 )
 
+const BuildRunningReason = "BuildRunning"
+
 func (c *Reconciler) reconcileBuild(ctx context.Context, image *buildapi.Image, latestBuild *buildapi.Build, sourceResolver *buildapi.SourceResolver, builder buildapi.BuilderResource, buildCacheName string) (buildapi.ImageStatus, error) {
 	currentBuildNumber, err := buildCounter(latestBuild)
 	if err != nil {
@@ -157,3 +159,16 @@ func buildCounter(build *buildapi.Build) (int64, error) {
 	buildNumber := build.Labels[buildapi.BuildNumberLabel]
 	return strconv.ParseInt(buildNumber, 10, 64)
 }
+
+func buildRunningCondition(build *buildapi.Build, builder buildapi.BuilderResource) corev1alpha1.Conditions {
+	return corev1alpha1.Conditions{
+		{
+			Type:               corev1alpha1.ConditionReady,
+			Status:             corev1.ConditionUnknown,
+			Reason:             BuildRunningReason,
+			Message:            emptyMessageIfNil(build.Status.GetCondition(corev1alpha1.ConditionSucceeded)),
+			LastTransitionTime: corev1alpha1.VolatileTime{Inner: metav1.Now()},
+		},
+		builderCondition(builder),
+	}
+}