diff --git a/pkg/library/kubernetes/provision.go b/pkg/library/kubernetes/provision.go
index 5e6e1bdcd..b8019443c 100644
--- a/pkg/library/kubernetes/provision.go
+++ b/pkg/library/kubernetes/provision.go
@@ -16,6 +16,7 @@ package kubernetes
 import (
 	"fmt"
 	"reflect"
+	"strings"
 
 	"github.com/devfile/devworkspace-operator/pkg/common"
 	"github.com/devfile/devworkspace-operator/pkg/constants"
@@ -32,13 +33,18 @@ import (
 // has the correct permissions to create/update/delete these objects and instead assumes the
 // workspace owner has all applicable RBAC permissions.
 // Only Kubernetes/OpenShift components that are inlined are supported; components that define
-// a URI will cause a FailError to be returned
+// a URI will cause a WarningError to be returned
 func HandleKubernetesComponents(workspace *common.DevWorkspaceWithConfig, api sync.ClusterAPI) error {
-	kubeComponents, err := filterForKubeLikeComponents(workspace.Spec.Template.Components)
+	kubeComponents, warnings, err := filterForKubeLikeComponents(workspace.Spec.Template.Components)
 	if err != nil {
 		return err
 	}
 	if len(kubeComponents) == 0 {
+		if len(warnings) > 0 {
+			return &dwerrors.WarningError{
+				Message: fmt.Sprintf("Ignored components that use unsupported features: %s", strings.Join(warnings, ", ")),
+			}
+		}
 		return nil
 	}
 	for _, component := range kubeComponents {
@@ -64,6 +70,11 @@ func HandleKubernetesComponents(workspace *common.DevWorkspaceWithConfig, api sy
 			return dwerrors.WrapSyncError(syncErr)
 		}
 	}
+	if len(warnings) > 0 {
+		return &dwerrors.WarningError{
+			Message: fmt.Sprintf("Ignored components that use unsupported features: %s", strings.Join(warnings, ", ")),
+		}
+	}
 	return nil
 }
 
diff --git a/pkg/library/kubernetes/testdata/provision_tests/error-if-object-not-inlined.yaml b/pkg/library/kubernetes/testdata/provision_tests/error-if-object-not-inlined.yaml
index 57ece164b..c5cbdd8cd 100644
--- a/pkg/library/kubernetes/testdata/provision_tests/error-if-object-not-inlined.yaml
+++ b/pkg/library/kubernetes/testdata/provision_tests/error-if-object-not-inlined.yaml
@@ -25,4 +25,4 @@ input:
               targetPort: 8081
 
 output:
-  errRegexp: "components that define a URI are unsupported"
+  errRegexp: "Ignored components that use unsupported features"
diff --git a/pkg/library/kubernetes/util.go b/pkg/library/kubernetes/util.go
index a3f73ef11..b96da0c62 100644
--- a/pkg/library/kubernetes/util.go
+++ b/pkg/library/kubernetes/util.go
@@ -18,7 +18,6 @@ import (
 
 	dw "github.com/devfile/api/v2/pkg/apis/workspaces/v1alpha2"
 	"github.com/devfile/devworkspace-operator/pkg/common"
-	"github.com/devfile/devworkspace-operator/pkg/dwerrors"
 	metav1 "k8s.io/apimachinery/pkg/apis/meta/v1"
 )
 
@@ -31,24 +30,35 @@ func HasKubelikeComponent(workspace *common.DevWorkspaceWithConfig) bool {
 	return false
 }
 
-func filterForKubeLikeComponents(components []dw.Component) ([]dw.Component, error) {
+func filterForKubeLikeComponents(components []dw.Component) (kubeComponents []dw.Component, warnings []string, err error) {
 	var k8sLikeComponents []dw.Component
 	for _, component := range components {
 		k8sLikeComponent, err := getK8sLikeComponent(component)
 		if err != nil {
+			// Not a kube component (e.g. container, image, etc.)
 			continue
 		}
+
+		if !k8sLikeComponent.GetDeployByDefault() {
+			// Not handled by operator
+			continue
+		}
+
 		if k8sLikeComponent.Uri != "" {
-			return nil, &dwerrors.FailError{Message: fmt.Sprintf("kubernetes/openshift components that define a URI are unsupported (component %s)", component.Name)}
+			// Not currently supported; return a warning and ignore it but do not fail startup
+			warnings = append(warnings, fmt.Sprintf("component %s defines a Kubernetes/OpenShift component via URI", component.Name))
+			continue
 		}
+
 		if k8sLikeComponent.Inlined == "" {
 			continue
 		}
+
 		if k8sLikeComponent.GetDeployByDefault() {
 			k8sLikeComponents = append(k8sLikeComponents, component)
 		}
 	}
-	return k8sLikeComponents, nil
+	return k8sLikeComponents, warnings, nil
 }
 
 // getK8sLikeComponent returns the K8sLikeComponent from a DevWorkspace component,
diff --git a/webhook/workspace/handler/kubernetes.go b/webhook/workspace/handler/kubernetes.go
index 9c397af90..5233e7ffa 100644
--- a/webhook/workspace/handler/kubernetes.go
+++ b/webhook/workspace/handler/kubernetes.go
@@ -42,7 +42,8 @@ func (h *WebhookHandler) validateKubernetesObjectPermissionsOnCreate(ctx context
 			continue
 		}
 		if component.Uri != "" {
-			return fmt.Errorf("kubenetes components specified via URI are unsupported")
+			// We're going to ignore URI components for now
+			continue
 		}
 		if component.Inlined == "" {
 			return fmt.Errorf("kubernetes component does not define inlined content")
@@ -66,7 +67,8 @@ func (h *WebhookHandler) validateKubernetesObjectPermissionsOnUpdate(ctx context
 		}
 
 		if newComponent.Uri != "" {
-			return fmt.Errorf("kubenetes components specified via URI are unsupported")
+			// We're going to ignore URI components for now
+			continue
 		}
 		if newComponent.Inlined == "" {
 			return fmt.Errorf("kubernetes component does not define inlined content")