diff --git a/controllers/upgrade_controller.go b/controllers/upgrade_controller.go
index 7481239d1..e82e2de35 100644
--- a/controllers/upgrade_controller.go
+++ b/controllers/upgrade_controller.go
@@ -36,6 +36,7 @@ import (
 	"sigs.k8s.io/controller-runtime/pkg/reconcile"
 	"sigs.k8s.io/controller-runtime/pkg/source"
 
+	upgrade_v1alpha1 "github.com/NVIDIA/k8s-operator-libs/api/upgrade/v1alpha1"
 	"github.com/NVIDIA/k8s-operator-libs/pkg/consts"
 	"github.com/NVIDIA/k8s-operator-libs/pkg/upgrade"
 	"github.com/go-logr/logr"
@@ -169,6 +170,9 @@ func (r *UpgradeReconciler) Reconcile(ctx context.Context, req ctrl.Request) (ct
 	// if the operator is evicted and can't be rescheduled to any other node, e.g. in a single-node cluster.
 	// It's safe to do because the goal of the node draining during the upgrade is to
 	// evict pods that might use driver and operator doesn't use in its own pod.
+	if clusterPolicy.Spec.Driver.UpgradePolicy.DrainSpec == nil {
+		clusterPolicy.Spec.Driver.UpgradePolicy.DrainSpec = &upgrade_v1alpha1.DrainSpec{}
+	}
 	if clusterPolicy.Spec.Driver.UpgradePolicy.DrainSpec.PodSelector == "" {
 		clusterPolicy.Spec.Driver.UpgradePolicy.DrainSpec.PodSelector = UpgradeSkipDrainLabelSelector
 	} else {
diff --git a/controllers/upgrade_controller_test.go b/controllers/upgrade_controller_test.go
new file mode 100644
index 000000000..3b72da082
--- /dev/null
+++ b/controllers/upgrade_controller_test.go
@@ -0,0 +1,71 @@
+/*
+ * Copyright (c) NVIDIA CORPORATION.  All rights reserved.
+ *
+ * Licensed under the Apache License, Version 2.0 (the "License");
+ * you may not use this file except in compliance with the License.
+ * You may obtain a copy of the License at
+ *
+ *     http://www.apache.org/licenses/LICENSE-2.0
+ *
+ * Unless required by applicable law or agreed to in writing, software
+ * distributed under the License is distributed on an "AS IS" BASIS,
+ * WITHOUT WARRANTIES OR CONDITIONS OF ANY KIND, either express or implied.
+ * See the License for the specific language governing permissions and
+ * limitations under the License.
+ */
+
+package controllers
+
+import (
+	"fmt"
+	"testing"
+
+	upgrade_v1alpha1 "github.com/NVIDIA/k8s-operator-libs/api/upgrade/v1alpha1"
+	"github.com/stretchr/testify/assert"
+)
+
+func TestSetDrainSpecPodSelector(t *testing.T) {
+	tests := []struct {
+		name             string
+		drainSpec        *upgrade_v1alpha1.DrainSpec
+		expectedSelector string
+	}{
+		{
+			name:             "nil DrainSpec should be initialized with default PodSelector",
+			drainSpec:        nil,
+			expectedSelector: UpgradeSkipDrainLabelSelector,
+		},
+		{
+			name:             "empty PodSelector should be set to default",
+			drainSpec:        &upgrade_v1alpha1.DrainSpec{},
+			expectedSelector: UpgradeSkipDrainLabelSelector,
+		},
+		{
+			name:             "existing PodSelector should be appended",
+			drainSpec:        &upgrade_v1alpha1.DrainSpec{PodSelector: "app=myapp"},
+			expectedSelector: fmt.Sprintf("app=myapp,%s", UpgradeSkipDrainLabelSelector),
+		},
+	}
+
+	for _, tt := range tests {
+		t.Run(tt.name, func(t *testing.T) {
+			upgradePolicy := &upgrade_v1alpha1.DriverUpgradePolicySpec{
+				AutoUpgrade: true,
+				DrainSpec:   tt.drainSpec,
+			}
+
+			if upgradePolicy.DrainSpec == nil {
+				upgradePolicy.DrainSpec = &upgrade_v1alpha1.DrainSpec{}
+			}
+			if upgradePolicy.DrainSpec.PodSelector == "" {
+				upgradePolicy.DrainSpec.PodSelector = UpgradeSkipDrainLabelSelector
+			} else {
+				upgradePolicy.DrainSpec.PodSelector =
+					fmt.Sprintf("%s,%s", upgradePolicy.DrainSpec.PodSelector, UpgradeSkipDrainLabelSelector)
+			}
+
+			assert.NotNil(t, upgradePolicy.DrainSpec)
+			assert.Equal(t, tt.expectedSelector, upgradePolicy.DrainSpec.PodSelector)
+		})
+	}
+}