diff --git a/openshift-knative-operator/cmd/operator/kodata/knative-serving/1.2.0/2-serving-core.yaml b/openshift-knative-operator/cmd/operator/kodata/knative-serving/1.2.0/2-serving-core.yaml
index fef3b54774..c00c382b80 100644
--- a/openshift-knative-operator/cmd/operator/kodata/knative-serving/1.2.0/2-serving-core.yaml
+++ b/openshift-knative-operator/cmd/operator/kodata/knative-serving/1.2.0/2-serving-core.yaml
@@ -4858,7 +4858,7 @@ spec:
 # Activator PDB. Currently we permit unavailability of 20% of tasks at the same time.
 # Given the subsetting and that the activators are partially stateful systems, we want
 # a slow rollout of the new versions and slow migration during node upgrades.
-apiVersion: policy/v1beta1
+apiVersion: policy/v1
 kind: PodDisruptionBudget
 metadata:
   name: activator-pdb
@@ -5552,7 +5552,7 @@ spec:
           averageUtilization: 100
 ---
 # Webhook PDB.
-apiVersion: policy/v1beta1
+apiVersion: policy/v1
 kind: PodDisruptionBudget
 metadata:
   name: webhook-pdb
diff --git a/openshift-knative-operator/hack/003-serving-pdb.patch b/openshift-knative-operator/hack/003-serving-pdb.patch
index d8872b951c..82df6e5729 100644
--- a/openshift-knative-operator/hack/003-serving-pdb.patch
+++ b/openshift-knative-operator/hack/003-serving-pdb.patch
@@ -1,16 +1,7 @@
 diff --git a/openshift-knative-operator/cmd/operator/kodata/knative-serving/1.2.0/2-serving-core.yaml b/openshift-knative-operator/cmd/operator/kodata/knative-serving/1.2.0/2-serving-core.yaml
-index dd7a139c..fef3b547 100644
+index dd7a139ca..c00c382b8 100644
 --- a/openshift-knative-operator/cmd/operator/kodata/knative-serving/1.2.0/2-serving-core.yaml
 +++ b/openshift-knative-operator/cmd/operator/kodata/knative-serving/1.2.0/2-serving-core.yaml
-@@ -4858,7 +4858,7 @@ spec:
- # Activator PDB. Currently we permit unavailability of 20% of tasks at the same time.
- # Given the subsetting and that the activators are partially stateful systems, we want
- # a slow rollout of the new versions and slow migration during node upgrades.
--apiVersion: policy/v1
-+apiVersion: policy/v1beta1
- kind: PodDisruptionBudget
- metadata:
-   name: activator-pdb
 @@ -4869,7 +4869,7 @@ metadata:
      app.kubernetes.io/version: "1.2.0"
      serving.knative.dev/release: "v1.2.0"
@@ -20,15 +11,6 @@ index dd7a139c..fef3b547 100644
    selector:
      matchLabels:
        app: activator
-@@ -5552,7 +5552,7 @@ spec:
-           averageUtilization: 100
- ---
- # Webhook PDB.
--apiVersion: policy/v1
-+apiVersion: policy/v1beta1
- kind: PodDisruptionBudget
- metadata:
-   name: webhook-pdb
 @@ -5563,7 +5563,7 @@ metadata:
      app.kubernetes.io/version: "1.2.0"
      serving.knative.dev/release: "v1.2.0"
diff --git a/openshift-knative-operator/pkg/common/api.go b/openshift-knative-operator/pkg/common/api.go
new file mode 100644
index 0000000000..9ea5cc23ed
--- /dev/null
+++ b/openshift-knative-operator/pkg/common/api.go
@@ -0,0 +1,20 @@
+package common
+
+import (
+	mf "github.com/manifestival/manifestival"
+	"k8s.io/apimachinery/pkg/apis/meta/v1/unstructured"
+)
+
+// DowngradePodDisruptionBudget downgrade the API version to policy/v1beta1.
+func DowngradePodDisruptionBudget() mf.Transformer {
+	return func(u *unstructured.Unstructured) error {
+		if u.GetKind() != "PodDisruptionBudget" {
+			return nil
+		}
+		if u.GetAPIVersion() != "policy/v1" {
+			return nil
+		}
+		u.SetAPIVersion("policy/v1beta1")
+		return nil
+	}
+}
diff --git a/openshift-knative-operator/pkg/serving/extension.go b/openshift-knative-operator/pkg/serving/extension.go
index e61fe7e4a9..aa3fd94143 100644
--- a/openshift-knative-operator/pkg/serving/extension.go
+++ b/openshift-knative-operator/pkg/serving/extension.go
@@ -63,7 +63,7 @@ func (e *extension) Manifests(ks operatorv1alpha1.KComponent) ([]mf.Manifest, er
 }
 
 func (e *extension) Transformers(ks operatorv1alpha1.KComponent) []mf.Transformer {
-	return append([]mf.Transformer{
+	tf := []mf.Transformer{
 		common.InjectCommonLabelIntoNamespace(),
 		common.InjectEnvironmentIntoDeployment("controller", "controller",
 			corev1.EnvVar{Name: "HTTP_PROXY", Value: os.Getenv("HTTP_PROXY")},
@@ -72,7 +72,13 @@ func (e *extension) Transformers(ks operatorv1alpha1.KComponent) []mf.Transforme
 		),
 		overrideKourierNamespace(ks),
 		addHTTPOptionDisabledEnvValue(),
-	}, monitoring.GetServingTransformers(ks)...)
+	}
+
+	if err := checkMinimumVersion(e.kubeclient.Discovery(), "1.21.0"); err != nil {
+		tf = append(tf, common.DowngradePodDisruptionBudget())
+	}
+
+	return append(tf, monitoring.GetServingTransformers(ks)...)
 }
 
 func (e *extension) Reconcile(ctx context.Context, comp operatorv1alpha1.KComponent) error {