diff --git a/pkg/config/polling_manager.go b/pkg/config/polling_manager.go
index 429a8ff5b..e0bf66524 100644
--- a/pkg/config/polling_manager.go
+++ b/pkg/config/polling_manager.go
@@ -94,7 +94,10 @@ func (cm *PollingProjectConfigManager) SyncConfig(datafile []byte) {
 
 		if e != nil {
 			cmLogger.Error(fmt.Sprintf("request returned with http code=%d", code), e)
-			cm.err = e
+			cm.err = nil
+			if cm.projectConfig == nil {
+				cm.err = e
+			}
 			return
 		}
 	}
@@ -103,7 +106,10 @@ func (cm *PollingProjectConfigManager) SyncConfig(datafile []byte) {
 
 	cm.configLock.Lock()
 	closeMutex := func() {
-		cm.err = err
+		cm.err = nil
+		if cm.projectConfig == nil {
+			cm.err = err
+		}
 		cm.configLock.Unlock()
 	}
 	if err != nil {
diff --git a/pkg/config/polling_manager_test.go b/pkg/config/polling_manager_test.go
index 680261883..dc19f90b6 100644
--- a/pkg/config/polling_manager_test.go
+++ b/pkg/config/polling_manager_test.go
@@ -127,6 +127,39 @@ func TestNewPollingProjectConfigManagerWithDifferentDatafileRevisions(t *testing
 	assert.Equal(t, projectConfig2, actual)
 }
 
+func TestNewPollingProjectConfigManagerWithErrorHandling(t *testing.T) {
+	mockDatafile1 := []byte("NOT-VALID")
+	mockDatafile2 := []byte(`{"revision":"43","botFiltering":false}`)
+
+	projectConfig1, _ := datafileprojectconfig.NewDatafileProjectConfig(mockDatafile1)
+	projectConfig2, _ := datafileprojectconfig.NewDatafileProjectConfig(mockDatafile2)
+	mockRequester := new(MockRequester)
+	mockRequester.On("Get", []utils.Header(nil)).Return(mockDatafile1, 200, nil)
+
+	// Test we fetch using requester
+	sdkKey := "test_sdk_key"
+
+	exeCtx := utils.NewCancelableExecutionCtx()
+	configManager := NewPollingProjectConfigManager(sdkKey, Requester(mockRequester))
+	configManager.Start(exeCtx)
+	mockRequester.AssertExpectations(t)
+
+	actual, err := configManager.GetConfig() // polling for bad file
+	assert.NotNil(t, err)
+	assert.Nil(t, actual)
+	assert.Nil(t, projectConfig1)
+
+	configManager.SyncConfig(mockDatafile2) // polling for good file
+	actual, err = configManager.GetConfig()
+	assert.Nil(t, err)
+	assert.Equal(t, projectConfig2, actual)
+
+	configManager.SyncConfig(mockDatafile1) // polling for bad file, error not null but good project
+	actual, err = configManager.GetConfig()
+	assert.Nil(t, err)
+	assert.Equal(t, projectConfig2, actual)
+}
+
 func TestNewPollingProjectConfigManagerOnDecision(t *testing.T) {
 	mockDatafile1 := []byte(`{"revision":"42","botFiltering":true}`)
 	mockDatafile2 := []byte(`{"revision":"43","botFiltering":false}`)