diff --git a/test/envtest/konnect_entities_gatewaycontrolplane_test.go b/test/envtest/konnect_entities_gatewaycontrolplane_test.go
index 1b68f51db..3bd65842b 100644
--- a/test/envtest/konnect_entities_gatewaycontrolplane_test.go
+++ b/test/envtest/konnect_entities_gatewaycontrolplane_test.go
@@ -2,6 +2,7 @@ package envtest
 
 import (
 	"context"
+	"errors"
 	"testing"
 
 	sdkkonnectcomp "github.com/Kong/sdk-konnect-go/models/components"
@@ -14,7 +15,9 @@ import (
 	metav1 "k8s.io/apimachinery/pkg/apis/meta/v1"
 	k8stypes "k8s.io/apimachinery/pkg/types"
 	"sigs.k8s.io/controller-runtime/pkg/client"
+	"sigs.k8s.io/controller-runtime/pkg/controller/controllerutil"
 
+	"github.com/kong/gateway-operator/controller/konnect"
 	"github.com/kong/gateway-operator/controller/konnect/conditions"
 	"github.com/kong/gateway-operator/controller/konnect/ops"
 	"github.com/kong/gateway-operator/test/helpers/deploy"
@@ -209,13 +212,156 @@ var konnectGatewayControlPlaneTestCases = []konnectEntityReconcilerTestCase{
 			)
 		},
 	},
+	{
+		name: "control plane group with members when receiving an error from PutControlPlanesIDGroupMemberships, correctly sets the ID and finalizer on group",
+		objectOps: func(ctx context.Context, t *testing.T, cl client.Client, ns *corev1.Namespace) {
+			auth := deploy.KonnectAPIAuthConfigurationWithProgrammed(t, ctx, cl)
+			deploy.KonnectGatewayControlPlane(t, ctx, cl, auth,
+				func(obj client.Object) {
+					cp := obj.(*konnectv1alpha1.KonnectGatewayControlPlane)
+					cp.Name = "cp-groupmember-2"
+					cp.Spec.Name = "cp-groupmember-2"
+				},
+			)
+			deploy.KonnectGatewayControlPlane(t, ctx, cl, auth,
+				func(obj client.Object) {
+					cp := obj.(*konnectv1alpha1.KonnectGatewayControlPlane)
+					cp.Name = "cp-3"
+					cp.Spec.Name = "cp-3"
+					cp.Spec.ClusterType = lo.ToPtr(sdkkonnectcomp.ClusterTypeClusterTypeControlPlaneGroup)
+					cp.Spec.Members = []corev1.LocalObjectReference{
+						{
+							Name: "cp-groupmember-2",
+						},
+					}
+				},
+			)
+		},
+		mockExpectations: func(t *testing.T, sdk *ops.MockSDKWrapper, ns *corev1.Namespace) {
+			sdk.ControlPlaneSDK.EXPECT().
+				CreateControlPlane(
+					mock.Anything,
+					mock.MatchedBy(func(req sdkkonnectcomp.CreateControlPlaneRequest) bool {
+						return req.Name == "cp-groupmember-2"
+					}),
+				).
+				Return(
+					&sdkkonnectops.CreateControlPlaneResponse{
+						ControlPlane: &sdkkonnectcomp.ControlPlane{
+							ID: lo.ToPtr("12345"),
+						},
+					},
+					nil,
+				)
+			sdk.ControlPlaneSDK.EXPECT().
+				CreateControlPlane(
+					mock.Anything,
+					mock.MatchedBy(func(req sdkkonnectcomp.CreateControlPlaneRequest) bool {
+						return req.Name == "cp-3" &&
+							req.ClusterType != nil && *req.ClusterType == sdkkonnectcomp.ClusterTypeClusterTypeControlPlaneGroup
+					}),
+				).
+				Return(
+					&sdkkonnectops.CreateControlPlaneResponse{
+						ControlPlane: &sdkkonnectcomp.ControlPlane{
+							ID: lo.ToPtr("123467"),
+						},
+					},
+					nil,
+				)
+
+			sdk.ControlPlaneGroupSDK.EXPECT().
+				PutControlPlanesIDGroupMemberships(
+					mock.Anything,
+					"123467",
+					&sdkkonnectcomp.GroupMembership{
+						Members: []sdkkonnectcomp.Members{
+							{
+								ID: lo.ToPtr("12345"),
+							},
+						},
+					},
+				).
+				Return(
+					&sdkkonnectops.PutControlPlanesIDGroupMembershipsResponse{},
+					errors.New("some error"),
+				)
+
+			sdk.ControlPlaneSDK.EXPECT().
+				UpdateControlPlane(
+					mock.Anything,
+					"123467",
+					mock.MatchedBy(func(req sdkkonnectcomp.UpdateControlPlaneRequest) bool {
+						return req.Name != nil && *req.Name == "cp-3"
+					}),
+				).
+				Return(
+					&sdkkonnectops.UpdateControlPlaneResponse{
+						ControlPlane: &sdkkonnectcomp.ControlPlane{
+							ID: lo.ToPtr("123467"),
+						},
+					},
+					nil)
+			// verify that mock SDK is called as expected.
+			t.Cleanup(func() {
+				require.True(t, sdk.ControlPlaneSDK.AssertExpectations(t))
+				require.True(t, sdk.ControlPlaneGroupSDK.AssertExpectations(t))
+			})
+		},
+		eventuallyPredicate: func(ctx context.Context, t *assert.CollectT, cl client.Client, ns *corev1.Namespace) {
+			cp := &konnectv1alpha1.KonnectGatewayControlPlane{}
+			if !assert.NoError(t,
+				cl.Get(ctx,
+					k8stypes.NamespacedName{
+						Namespace: ns.Name,
+						Name:      "cp-groupmember-2",
+					},
+					cp,
+				),
+			) {
+				return
+			}
+			assert.True(t, controllerutil.ContainsFinalizer(cp, konnect.KonnectCleanupFinalizer),
+				"Finalizer should be set on control plane",
+			)
+
+			cpGroup := &konnectv1alpha1.KonnectGatewayControlPlane{}
+			if !assert.NoError(t,
+				cl.Get(ctx,
+					k8stypes.NamespacedName{
+						Namespace: ns.Name,
+						Name:      "cp-3",
+					},
+					cpGroup,
+				),
+			) {
+				return
+			}
+
+			assert.Equal(t, "123467", cpGroup.Status.ID)
+			assert.True(t, conditionsContainProgrammedFalse(cpGroup.Status.Conditions),
+				"Programmed condition should be set and its status should be false because of an error returned by Konnect API when setting group members",
+			)
+			assert.True(t, controllerutil.ContainsFinalizer(cpGroup, konnect.KonnectCleanupFinalizer),
+				"Finalizer should be set on control plane group",
+			)
+		},
+	},
 }
 
-func conditionsContainProgrammedTrue(conds []metav1.Condition) bool {
+func conditionsContainProgrammed(conds []metav1.Condition, status metav1.ConditionStatus) bool {
 	return lo.ContainsBy(conds,
 		func(condition metav1.Condition) bool {
 			return condition.Type == conditions.KonnectEntityProgrammedConditionType &&
-				condition.Status == metav1.ConditionTrue
+				condition.Status == status
 		},
 	)
 }
+
+func conditionsContainProgrammedFalse(conds []metav1.Condition) bool {
+	return conditionsContainProgrammed(conds, metav1.ConditionFalse)
+}
+
+func conditionsContainProgrammedTrue(conds []metav1.Condition) bool {
+	return conditionsContainProgrammed(conds, metav1.ConditionTrue)
+}