diff --git a/pkg/node/volumemgr.go b/pkg/node/volumemgr.go
index fac40e58f..69ad1764f 100644
--- a/pkg/node/volumemgr.go
+++ b/pkg/node/volumemgr.go
@@ -1310,12 +1310,23 @@ func (m *VolumeManager) overrideDriveHealth(drive *api.Drive, overriddenHealth,
 		m.log.Warnf("Drive %s has health annotation. Health %s has been overridden with %s.",
 			driveCRName, drive.Health, overriddenHealth)
 		drive.Health = overriddenHealth
+		m.overrideDriveStatusWhenHealthBad(drive, overriddenHealth, driveCRName)
 	} else {
 		m.log.Errorf("Drive %s has health annotation, but value %s is not %s/%s/%s/%s. Health is not overridden.",
 			driveCRName, overriddenHealth, apiV1.HealthGood, apiV1.HealthSuspect, apiV1.HealthBad, apiV1.HealthUnknown)
 	}
 }
 
+// overrideDriveStatusWhenHealthBad replaces drive status to offline when health is being overidden to bad or unknown
+func (m *VolumeManager) overrideDriveStatusWhenHealthBad(drive *api.Drive, overriddenHealth, driveCRName string) {
+	if (overriddenHealth == apiV1.HealthBad) ||
+		(overriddenHealth == apiV1.HealthUnknown) {
+		m.log.Warnf("Drive %s has health %s. Status is overridden with %s.",
+			driveCRName, drive.Health, apiV1.DriveStatusOffline)
+		drive.Status = apiV1.DriveStatusOffline
+	}
+}
+
 func (m *VolumeManager) setWbtValue(vol *volumecrd.Volume) error {
 	device, err := m.findDeviceName(vol)
 	if err != nil {
diff --git a/pkg/node/volumemgr_test.go b/pkg/node/volumemgr_test.go
index b6a40fb9d..e63015ab9 100644
--- a/pkg/node/volumemgr_test.go
+++ b/pkg/node/volumemgr_test.go
@@ -831,6 +831,7 @@ func TestVolumeManager_updatesDrivesCRs_Success(t *testing.T) {
 		assert.Nil(t, vm.k8sClient.ReadCR(testCtx, drive.Name, "", actualDrive))
 		assert.Nil(t, err)
 		assert.Equal(t, actualDrive.Spec.Health, apiV1.HealthBad)
+		assert.Equal(t, apiV1.DriveStatusOffline, actualDrive.Spec.Status)
 	})
 
 	t.Run("new drive", func(t *testing.T) {