diff --git a/apis/test/example/v1alpha1/foo_types.go b/apis/test/example/v1alpha1/foo_types.go
index 22ac876ffd..6adc0dd19f 100644
--- a/apis/test/example/v1alpha1/foo_types.go
+++ b/apis/test/example/v1alpha1/foo_types.go
@@ -28,6 +28,7 @@ import (
 
 // +genclient
 // +genreconciler
+// +genducklogic
 // +k8s:deepcopy-gen:interfaces=k8s.io/apimachinery/pkg/runtime.Object
 
 // Foo is for testing.
diff --git a/codegen/cmd/injection-gen/generators/packages.go b/codegen/cmd/injection-gen/generators/packages.go
index ce8b6dbc68..841b57ac9e 100644
--- a/codegen/cmd/injection-gen/generators/packages.go
+++ b/codegen/cmd/injection-gen/generators/packages.go
@@ -206,6 +206,12 @@ func isNonNamespaced(t *types.Type) bool {
 	return nonNamespaced
 }
 
+func genDuckLogic(t *types.Type) bool {
+	comments := append(append([]string{}, t.SecondClosestCommentLines...), t.CommentLines...)
+	_, duckLogic := types.ExtractCommentTags("+", comments)["genducklogic"]
+	return duckLogic
+}
+
 func vendorless(p string) string {
 	if pos := strings.LastIndex(p, "/vendor/"); pos != -1 {
 		return p[pos+len("/vendor/"):]
@@ -418,6 +424,7 @@ func reconcilerPackages(basePackage string, groupPkgName string, gv clientgentyp
 
 		reconcilerClass, hasReconcilerClass := extractReconcilerClassTag(t)
 		nonNamespaced := isNonNamespaced(t)
+		genDuck := genDuckLogic(t)
 
 		packagePath := filepath.Join(packagePath, strings.ToLower(t.Name.Name))
 
@@ -506,6 +513,7 @@ func reconcilerPackages(basePackage string, groupPkgName string, gv clientgentyp
 					reconcilerClass:    reconcilerClass,
 					hasReconcilerClass: hasReconcilerClass,
 					nonNamespaced:      nonNamespaced,
+					genDuckLogic:       genDuck,
 				})
 
 				return generators
diff --git a/codegen/cmd/injection-gen/generators/reconciler_reconciler.go b/codegen/cmd/injection-gen/generators/reconciler_reconciler.go
index e24cc321f9..eb555add3e 100644
--- a/codegen/cmd/injection-gen/generators/reconciler_reconciler.go
+++ b/codegen/cmd/injection-gen/generators/reconciler_reconciler.go
@@ -40,6 +40,7 @@ type reconcilerReconcilerGenerator struct {
 	reconcilerClass    string
 	hasReconcilerClass bool
 	nonNamespaced      bool
+	genDuckLogic       bool
 
 	groupGoName  string
 	groupVersion clientgentypes.GroupVersion
@@ -75,6 +76,7 @@ func (g *reconcilerReconcilerGenerator) GenerateType(c *generator.Context, t *ty
 		"class":         g.reconcilerClass,
 		"hasClass":      g.hasReconcilerClass,
 		"nonNamespaced": g.nonNamespaced,
+		"genDuckLogic":  g.genDuckLogic,
 		"controllerImpl": c.Universe.Type(types.Name{
 			Package: "knative.dev/pkg/controller",
 			Name:    "Impl",
@@ -106,6 +108,7 @@ func (g *reconcilerReconcilerGenerator) GenerateType(c *generator.Context, t *ty
 		// Deps
 		"clientsetInterface": c.Universe.Type(types.Name{Name: "Interface", Package: g.clientsetPkg}),
 		"resourceLister":     c.Universe.Type(types.Name{Name: g.listerName, Package: g.listerPkg}),
+		"conditionSet":       c.Universe.Type(types.Name{Name: "ConditionSet", Package: "knative.dev/pkg/apis"}),
 		// K8s types
 		"recordEventRecorder": c.Universe.Type(types.Name{Name: "EventRecorder", Package: "k8s.io/client-go/tools/record"}),
 		// methods
@@ -211,6 +214,11 @@ type reconcilerImpl struct {
 // Check that our Reconciler implements controller.Reconciler
 var _ controller.Reconciler = (*reconcilerImpl)(nil)
 
+{{if .genDuckLogic}}
+// Creates the {{.conditionSet|raw}} to manipulate resource status conditions
+var condSet = apis.NewLivingConditionSet()
+{{end}}
+
 `
 
 var reconcilerNewReconciler = `
@@ -320,6 +328,24 @@ func (r *reconcilerImpl) Reconcile(ctx {{.contextContext|raw}}, key string) erro
 		}
 	}
 
+	{{if .genDuckLogic}}
+	// Bump observed generation to denote that we have processed this
+	// generation regardless of success or failure.
+	resource.Status.ObservedGeneration = resource.Generation
+
+	if resource.Status.ObservedGeneration != original.Status.ObservedGeneration && reconcileEvent != nil {
+		originalRc := original.Status.GetCondition(apis.ConditionReady)
+		rc := resource.Status.GetCondition(apis.ConditionReady)
+		// if a new generation is observed and reconciliation reported an error event
+		// the reconciler should change the ready state. By default we will set unknown.
+		if equality.Semantic.DeepEqual(originalRc, rc) {
+			logger.Warnw("A reconconiler observed a new generation without updating the resource status")
+			condSet.Manage(&resource.Status).MarkUnknown(
+				apis.ConditionReady, "", "unsucessfully observed a new generation")
+		}
+	}
+	{{end}}
+
 	// Synchronize the status.
 	if equality.Semantic.DeepEqual(original.Status, resource.Status) {
 		// If we didn't change anything then don't call updateStatus.