diff --git a/cluster-operator/src/main/java/io/strimzi/operator/cluster/operator/assembly/KafkaRebalanceAssemblyOperator.java b/cluster-operator/src/main/java/io/strimzi/operator/cluster/operator/assembly/KafkaRebalanceAssemblyOperator.java
index 011a9723e8c..3ac85a09d75 100644
--- a/cluster-operator/src/main/java/io/strimzi/operator/cluster/operator/assembly/KafkaRebalanceAssemblyOperator.java
+++ b/cluster-operator/src/main/java/io/strimzi/operator/cluster/operator/assembly/KafkaRebalanceAssemblyOperator.java
@@ -768,7 +768,12 @@ private void handleUserTaskStatusResponse(Reconciliation reconciliation, CruiseC
             // 1. Cruise Control restarted so resetting the state because the tasks queue is not persisted
             // 2. Task's retention time expired, or the cache has become full
             LOGGER.warnCr(reconciliation, "User task {} not found, going to generate a new proposal", sessionId);
-            requestRebalance(reconciliation, host, apiClient, kafkaRebalance, true, rebalanceOptionsBuilder).onSuccess(p::complete);
+            requestRebalance(reconciliation, host, apiClient, kafkaRebalance, true, rebalanceOptionsBuilder)
+                    .onSuccess(p::complete)
+                    .onFailure(e -> {
+                        LOGGER.errorCr(reconciliation, "Generating a new proposal failed", e);
+                        p.fail(e);
+                    });
             return;
         }
 
@@ -923,8 +928,8 @@ private Future<MapAndStatus<ConfigMap, KafkaRebalanceStatus>> onRebalancing(Reco
             apiClient.getUserTaskStatus(reconciliation, host, cruiseControlPort, sessionId)
                 .onSuccess(cruiseControlResponse -> handleUserTaskStatusResponse(reconciliation, cruiseControlResponse, p, sessionId, conditions, kafkaRebalance, configMapOperator, false, host, apiClient, rebalanceOptionsBuilder))
                 .onFailure(e -> {
-                    LOGGER.errorCr(reconciliation, "Cruise Control getting rebalance task status failed", e.getCause());
-                    p.fail(new CruiseControlRestException("Cruise Control getting rebalance task status failed"));
+                    LOGGER.errorCr(reconciliation, "Cruise Control getting rebalance task status failed", e);
+                    p.fail(e);
                 });
         }
         return p.future();
diff --git a/cluster-operator/src/test/java/io/strimzi/operator/cluster/operator/assembly/KafkaRebalanceAssemblyOperatorTest.java b/cluster-operator/src/test/java/io/strimzi/operator/cluster/operator/assembly/KafkaRebalanceAssemblyOperatorTest.java
index 6fa207d8c57..9f89c3b52bc 100644
--- a/cluster-operator/src/test/java/io/strimzi/operator/cluster/operator/assembly/KafkaRebalanceAssemblyOperatorTest.java
+++ b/cluster-operator/src/test/java/io/strimzi/operator/cluster/operator/assembly/KafkaRebalanceAssemblyOperatorTest.java
@@ -1133,6 +1133,48 @@ public void testNewToPendingProposalDeleteRemoveBroker(VertxTestContext context)
         this.krNewToPendingProposalDelete(context, CruiseControlEndpoints.REMOVE_BROKER, kr);
     }
 
+    /**
+     * Tests the transition from 'Rebalancing' to 'NotReady' due to a user task not existing and an error
+     * on re-issuing the optimization proposal request
+     *
+     * 1. A new KafkaRebalance resource is created; it is in the Rebalancing state
+     * 2. The operator requests the status of the corresponding user task through the Cruise Control REST API
+     * 3. The user task doesn't exist anymore and the KafkaRebalance resource moves to the 'NotReady' state
+     */
+    @Test
+    public void testRebalancingToNotReadyRemoveBroker(VertxTestContext context) {
+        cruiseControlServer.setupUserTasktoEmpty();
+        cruiseControlServer.setupCCBrokerDoesNotExist(CruiseControlEndpoints.REMOVE_BROKER);
+
+        KafkaRebalance kr = new KafkaRebalanceBuilder(createKafkaRebalance(namespace, CLUSTER_NAME, RESOURCE_NAME, REMOVE_BROKER_KAFKA_REBALANCE_SPEC, false))
+                .withNewStatus()
+                    .withObservedGeneration(1L)
+                    .withSessionId("test-session-id")
+                    .withConditions(new ConditionBuilder()
+                            .withType(KafkaRebalanceState.Rebalancing.name())
+                            .withStatus("True")
+                            .build())
+                .endStatus()
+                .build();
+
+        Crds.kafkaRebalanceOperation(client).inNamespace(namespace).resource(kr).create();
+        Crds.kafkaRebalanceOperation(client).inNamespace(namespace).resource(kr).updateStatus();
+
+        crdCreateKafka();
+        crdCreateCruiseControlSecrets();
+
+        Checkpoint checkpoint = context.checkpoint();
+        krao.reconcile(new Reconciliation("test-trigger", KafkaRebalance.RESOURCE_KIND, namespace, kr.getMetadata().getName()))
+                .onComplete(context.succeeding(v -> context.verify(() -> {
+                    KafkaRebalance kr1 = Crds.kafkaRebalanceOperation(client).inNamespace(namespace).withName(kr.getMetadata().getName()).get();
+                    assertThat(kr1, StateMatchers.hasState());
+                    Condition condition = KafkaRebalanceUtils.rebalanceStateCondition(kr1.getStatus());
+                    assertThat(condition, StateMatchers.hasStateInCondition(KafkaRebalanceState.NotReady, IllegalArgumentException.class,
+                            "Some/all brokers specified don't exist"));
+                    checkpoint.flag();
+                })));
+    }
+
     private void krNewToPendingProposalDelete(VertxTestContext context, CruiseControlEndpoints endpoint, KafkaRebalance kr) throws IOException, URISyntaxException {
         // Set up the rebalance endpoint with the number of pending calls before a response is received.
         cruiseControlServer.setupCCRebalanceResponse(1, endpoint);