diff --git a/test/extended/machine_config/pinnedimages.go b/test/extended/machine_config/pinnedimages.go
index dc2a53054864..945d6bb8f5cc 100644
--- a/test/extended/machine_config/pinnedimages.go
+++ b/test/extended/machine_config/pinnedimages.go
@@ -94,8 +94,6 @@ var _ = g.Describe("[Suite:openshift/machine-config-operator/disruptive][sig-mco
 		// Add node to custom MCP & wait for the node to be ready in the MCP
 		optedNodes, err := addWorkerNodesToCustomPool(oc, kubeClient, 1, "custom")
 		o.Expect(err).NotTo(o.HaveOccurred(), fmt.Sprintf("Error adding node to `custom` MCP: %v", err))
-		defer waitTillNodeReadyWithConfig(kubeClient, optedNodes[0], workerConfigPrefix)
-		defer unlabelNode(oc, optedNodes[0])
 		framework.Logf("Waiting for `%v` node to be ready in `custom` MCP.", optedNodes[0])
 		waitTillNodeReadyWithConfig(kubeClient, optedNodes[0], customConfigPrefix)
 
@@ -129,12 +127,28 @@ var _ = g.Describe("[Suite:openshift/machine-config-operator/disruptive][sig-mco
 
 		// Apply PIS
 		defer deletePinnedImages(oc, kubeClient, clientSet, optedNodes, pinnedImages, isMetalDisconnected)
-		defer deletePIS(oc, pis.Name)
 		err = applyPIS(oc, pisFixture, pis, pisDiverged)
 		o.Expect(err).NotTo(o.HaveOccurred(), "Applied PIS")
 
 		// Test the images applied in the PIS exist on the node after garbage collection.
 		GCPISTest(oc, kubeClient, clientSet, true, optedNodes[0], kcFixture, gcImage, pis.Name, isMetalDisconnected)
+
+		// Cleanup: Transition node back to worker pool BEFORE deleting configs to avoid race condition.
+		// If we delete the configs while the node is rebooting to transition back to worker pool,
+		// the node may come up with a deleted rendered-custom config and get stuck in degraded state.
+		framework.Logf("Cleaning up: Unlabeling node '%s' to move back to worker pool", optedNodes[0])
+		err = unlabelNode(oc, optedNodes[0])
+		o.Expect(err).NotTo(o.HaveOccurred(), fmt.Sprintf("Error unlabeling node: %v", err))
+
+		framework.Logf("Waiting for node '%s' to transition to worker config", optedNodes[0])
+		waitTillNodeReadyWithConfig(kubeClient, optedNodes[0], workerConfigPrefix)
+
+		// Now it's safe to delete the custom pool configs
+		framework.Logf("Node transitioned successfully, deleting KubeletConfig and PinnedImageSet")
+		err = deleteKC(oc, "custom-gc-config")
+		o.Expect(err).NotTo(o.HaveOccurred(), fmt.Sprintf("Error deleting KubeletConfig: %v", err))
+		err = deletePIS(oc, pis.Name)
+		o.Expect(err).NotTo(o.HaveOccurred(), fmt.Sprintf("Error deleting PinnedImageSet: %v", err))
 	})
 
 	g.It("All Nodes in a Custom Pool should have the PinnedImages in PIS [apigroup:machineconfiguration.openshift.io]", func() {
@@ -384,7 +398,6 @@ func addWorkerNodesToCustomPool(oc *exutil.CLI, kubeClient *kubernetes.Clientset
 // `GCPISTest` completes the body of a PIS test including the garbage collection step
 func GCPISTest(oc *exutil.CLI, kubeClient *kubernetes.Clientset, clientSet *mcClient.Clientset, success bool, nodeName, customGcKCFixture, gcImage, pisName string, isMetalDisconnected bool) {
 	// Apply KC to Pool
-	defer deleteKC(oc, "custom-gc-config")
 	err := oc.Run("apply").Args("-f", customGcKCFixture).Execute()
 	o.Expect(err).NotTo(o.HaveOccurred(), fmt.Sprintf("Error applying garbage collection kubelet config: %s", err))