diff --git a/controller/konnect/ops/ops_kongsni.go b/controller/konnect/ops/ops_kongsni.go
index a172cf237..2bedd1c5d 100644
--- a/controller/konnect/ops/ops_kongsni.go
+++ b/controller/konnect/ops/ops_kongsni.go
@@ -23,7 +23,6 @@ func createSNI(
 	sdk SNIsSDK,
 	sni *configurationv1alpha1.KongSNI,
 ) error {
-
 	cpID := sni.GetControlPlaneID()
 	if cpID == "" {
 		return fmt.Errorf("can't create %T %s without a Konnect ControlPlane ID", sni, client.ObjectKeyFromObject(sni))
@@ -70,9 +69,34 @@ func updateSNI(
 		SNIWithoutParents: kongSNIToSNIWithoutParents(sni),
 	})
 
-	if errWrapped := wrapErrIfKonnectOpFailed(err, UpdateOp, sni); errWrapped != nil {
-		SetKonnectEntityProgrammedConditionFalse(sni, "FailedToUpdate", errWrapped.Error())
-		return errWrapped
+	// TODO: handle already exists
+	// Can't adopt it as it will cause conflicts between the controller
+	// that created that entity and already manages it, hm
+	if errWrap := wrapErrIfKonnectOpFailed(err, UpdateOp, sni); errWrap != nil {
+		// SNI update operation returns an SDKError instead of a NotFoundError.
+		var sdkError *sdkkonnecterrs.SDKError
+		if errors.As(errWrap, &sdkError) {
+			switch sdkError.StatusCode {
+			case 404:
+				if err := createSNI(ctx, sdk, sni); err != nil {
+					return FailedKonnectOpError[configurationv1alpha1.KongSNI]{
+						Op:  UpdateOp,
+						Err: err,
+					}
+				}
+				// Create succeeded, createSNI sets the status so no need to do this here.
+
+				return nil
+			default:
+				return FailedKonnectOpError[configurationv1alpha1.KongSNI]{
+					Op:  UpdateOp,
+					Err: sdkError,
+				}
+			}
+		}
+
+		SetKonnectEntityProgrammedConditionFalse(sni, "FailedToUpdate", errWrap.Error())
+		return errWrap
 	}
 
 	SetKonnectEntityProgrammedCondition(sni)