diff --git a/api/v2alpha1/helmrelease_types.go b/api/v2alpha1/helmrelease_types.go
index b73eb7f..8ba42a0 100644
--- a/api/v2alpha1/helmrelease_types.go
+++ b/api/v2alpha1/helmrelease_types.go
@@ -52,16 +52,19 @@ type HelmReleaseSpec struct {
 
 // HelmReleaseStatus defines the observed state of HelmRelease
 type HelmReleaseStatus struct {
+	// +optional
+	ObservedGeneration int64 `json:"observedGeneration,omitempty"`
+
 	// +optional
 	Conditions []Condition `json:"conditions,omitempty"`
 
-	// LastAppliedRevision is the revision of the last successfully applied source.
+	// LatestAppliedRevision is the revision of the last successfully applied source.
 	// +optional
-	LastAppliedRevision string `json:"lastAppliedRevision,omitempty"`
+	LatestAppliedRevision string `json:"lastAppliedRevision,omitempty"`
 
-	// LastReleaseRevision is the revision of the last successfully Helm release.
+	// LatestReleaseRevision is the revision of the last successfully Helm release.
 	// +optional
-	LastReleaseRevision int `json:"lastReleaseRevision,omitempty"`
+	LatestReleaseRevision int `json:"lastReleaseRevision,omitempty"`
 }
 
 // HelmReleaseProgressing resets the conditions of the given HelmRelease to a single
@@ -103,6 +106,7 @@ func HelmReleaseNotReady(hr HelmRelease, reason, message string) HelmRelease {
 		Reason:             reason,
 		Message:            message,
 	})
+	hr.Status.ObservedGeneration = hr.Generation
 	return hr
 }
 
@@ -118,8 +122,9 @@ func HelmReleaseReady(hr HelmRelease, revision string, releaseRevision int, reas
 		Reason:             reason,
 		Message:            message,
 	})
-	hr.Status.LastAppliedRevision = revision
-	hr.Status.LastReleaseRevision = releaseRevision
+	hr.Status.ObservedGeneration = hr.Generation
+	hr.Status.LatestAppliedRevision = revision
+	hr.Status.LatestReleaseRevision = releaseRevision
 	return hr
 }
 
diff --git a/config/crd/bases/helm.fluxcd.io_helmreleases.yaml b/config/crd/bases/helm.fluxcd.io_helmreleases.yaml
index 6c844bc..bdc81f9 100644
--- a/config/crd/bases/helm.fluxcd.io_helmreleases.yaml
+++ b/config/crd/bases/helm.fluxcd.io_helmreleases.yaml
@@ -107,13 +107,16 @@ spec:
                 type: object
               type: array
             lastAppliedRevision:
-              description: LastAppliedRevision is the revision of the last successfully
+              description: LatestAppliedRevision is the revision of the last successfully
                 applied source.
               type: string
             lastReleaseRevision:
-              description: LastReleaseRevision is the revision of the last successfully
+              description: LatestReleaseRevision is the revision of the last successfully
                 Helm release.
               type: integer
+            observedGeneration:
+              format: int64
+              type: integer
           type: object
       type: object
   version: v2alpha1
diff --git a/controllers/helmrelease_controller.go b/controllers/helmrelease_controller.go
index 3b3c775..53bab9d 100644
--- a/controllers/helmrelease_controller.go
+++ b/controllers/helmrelease_controller.go
@@ -189,7 +189,7 @@ func (r *HelmReleaseReconciler) release(log logr.Logger, hr v2.HelmRelease, sour
 			return v2.HelmReleaseNotReady(hr, v2.ReconciliationFailedReason, "Helm install failed"), err
 		}
 		v2.SetHelmReleaseCondition(&hr, v2.InstallCondition, corev1.ConditionTrue, v2.InstallSucceededReason, "Helm installation succeeded")
-	} else {
+	} else if r.shouldUpgrade(&hr, source, rel) {
 		if rel, err = r.upgrade(cfg, loadedChart, hr); err != nil {
 			v2.SetHelmReleaseCondition(&hr, v2.UpgradeCondition, corev1.ConditionFalse, v2.UpgradeFailedReason, err.Error())
 			return v2.HelmReleaseNotReady(hr, v2.ReconciliationFailedReason, "Helm upgrade failed"), err
@@ -220,6 +220,19 @@ func (r *HelmReleaseReconciler) upgrade(cfg *action.Configuration, chart *chart.
 	return upgrade.Run(hr.Name, chart, hr.GetValues())
 }
 
+func (r *HelmReleaseReconciler) shouldUpgrade(hr *v2.HelmRelease, source sourcev1.Source, rel *release.Release) bool {
+	switch {
+	case hr.Status.LatestAppliedRevision != source.GetArtifact().Revision:
+		return true
+	case hr.Status.LatestReleaseRevision != rel.Version:
+		return true
+	case hr.Generation != hr.Status.ObservedGeneration:
+		return true
+	default:
+		return false
+	}
+}
+
 func (r *HelmReleaseReconciler) lock(name string) (unlock func(), err error) {
 	lockFile := path.Join(os.TempDir(), name+".lock")
 	mutex := lockedfile.MutexAt(lockFile)