diff --git a/internal/controller/reconcile-capapplication.go b/internal/controller/reconcile-capapplication.go
index a881f51..aa98ceb 100644
--- a/internal/controller/reconcile-capapplication.go
+++ b/internal/controller/reconcile-capapplication.go
@@ -252,9 +252,8 @@ func (c *Controller) updateCAPApplicationStatus(ctx context.Context, ca *v1alpha
 	return err
 }
 
-// TODO: remove this entirely from CA soon
 func (c *Controller) validateSecrets(ctx context.Context, ca *v1alpha1.CAPApplication, attempts int) (bool, error) {
-	err := c.checkSecretsExist(ca.Spec.BTP.Services, ca.Namespace)
+	err := c.checkAndPreserveSecrets(ca.Spec.BTP.Services, ca.Namespace)
 
 	if err == nil {
 		return false, nil
@@ -357,6 +356,10 @@ func (c *Controller) handleCAPApplicationDeletion(ctx context.Context, ca *v1alp
 		return nil, err
 	}
 
+	if err = c.cleanupPreservedSecrets(ca.Spec.BTP.Services, ca.Namespace); err != nil && !k8sErrors.IsNotFound(err) {
+		return nil, err
+	}
+
 	// delete CAPApplication
 	if removeFinalizer(&ca.Finalizers, FinalizerCAPApplication) {
 		return nil, c.updateCAPApplication(ctx, ca)
diff --git a/internal/controller/reconcile-capapplication_test.go b/internal/controller/reconcile-capapplication_test.go
index 482b85d..6435fc5 100644
--- a/internal/controller/reconcile-capapplication_test.go
+++ b/internal/controller/reconcile-capapplication_test.go
@@ -436,6 +436,7 @@ func TestDeletion_Case7(t *testing.T) {
 			initialResources: []string{
 				"testdata/capapplication/ca-19.initial.yaml",
 				"testdata/capapplication/istio-ingress-with-cert.yaml",
+				"testdata/common/credential-secrets.yaml",
 			},
 			expectedResources: "testdata/capapplication/ca-19.expected.yaml",
 		},
diff --git a/internal/controller/reconcile.go b/internal/controller/reconcile.go
index 582fa2f..909f6e3 100644
--- a/internal/controller/reconcile.go
+++ b/internal/controller/reconcile.go
@@ -16,6 +16,7 @@ import (
 	batchv1 "k8s.io/api/batch/v1"
 	corev1 "k8s.io/api/core/v1"
 	"k8s.io/apimachinery/pkg/api/errors"
+	k8sErrors "k8s.io/apimachinery/pkg/api/errors"
 	metav1 "k8s.io/apimachinery/pkg/apis/meta/v1"
 	"k8s.io/apimachinery/pkg/labels"
 	"k8s.io/apimachinery/pkg/runtime"
@@ -269,6 +270,47 @@ func (c *Controller) checkSecretsExist(serviceInfos []v1alpha1.ServiceInfo, name
 	return err
 }
 
+func (c *Controller) checkAndPreserveSecrets(serviceInfos []v1alpha1.ServiceInfo, namespace string) error {
+	var err error
+	var secret *corev1.Secret
+	secretLister := c.kubeInformerFactory.Core().V1().Secrets().Lister()
+
+	for _, service := range serviceInfos {
+		secretName := service.Secret
+		if secret, err = secretLister.Secrets(namespace).Get(secretName); err != nil {
+			break
+		}
+		// Add finalizer to preserve Secret from being deleted accidentally
+		if addFinalizer(&secret.Finalizers, FinalizerCAPApplication) {
+			if _, err = c.kubeClient.CoreV1().Secrets(namespace).Update(context.TODO(), secret, metav1.UpdateOptions{}); err != nil {
+				break
+			}
+		}
+	}
+	return err
+}
+
+func (c *Controller) cleanupPreservedSecrets(serviceInfos []v1alpha1.ServiceInfo, namespace string) error {
+	var err error
+	var secret *corev1.Secret
+	secretLister := c.kubeInformerFactory.Core().V1().Secrets().Lister()
+
+	for _, service := range serviceInfos {
+		secretName := service.Secret
+		// Check if a secret exists
+		if secret, err = secretLister.Secrets(namespace).Get(secretName); err != nil && !k8sErrors.IsNotFound(err) {
+			break
+		}
+		// Remove finalizer from preserved Secret (if one exists) to allow it to be cleaned up if needed
+		if secret != nil && removeFinalizer(&secret.Finalizers, FinalizerCAPApplication) {
+			if _, err = c.kubeClient.CoreV1().Secrets(namespace).Update(context.TODO(), secret, metav1.UpdateOptions{}); err != nil {
+				break
+			}
+		}
+	}
+	return err
+}
+
 // This method is called to handle NotFound error at the beginning of reconciliation to skip requeue on errors due to deletion of resource
 func handleOperatorResourceErrors(err error) error {
 	// Handle NotFound errors (object was most likely deleted)
diff --git a/internal/controller/testdata/capapplication/ca-19.expected.yaml b/internal/controller/testdata/capapplication/ca-19.expected.yaml
index 5c263ac..b0304d7 100644
--- a/internal/controller/testdata/capapplication/ca-19.expected.yaml
+++ b/internal/controller/testdata/capapplication/ca-19.expected.yaml
@@ -44,3 +44,13 @@ status:
     - type: Ready
       reason: DeletionTriggered
       status: "False"
+---
+apiVersion: v1
+kind: Secret
+metadata:
+  name: cap-cap-01-uaa-bind-cf
+  namespace: default
+  finalizers: [] # CA removes finalizer from presevered secret
+type: Opaque
+data:
+  credentials: ewogICJ1YWFkb21haW4iOiAiYXV0aC5zZXJ2aWNlLmxvY2FsIiwKICAieHNhcHBuYW1lIjogInRlc3QtY2FwLTAxIWIxNCIsCiAgInVybCI6ICJodHRwczovL2FwcC1kb21haW4uYXV0aC5zZXJ2aWNlLmxvY2FsIiwKICAiY3JlZGVudGlhbC10eXBlIjogImluc3RhbmNlLXNlY3JldCIKfQo=
\ No newline at end of file
diff --git a/internal/controller/testdata/capapplication/ca-29.expected.yaml b/internal/controller/testdata/capapplication/ca-29.expected.yaml
index de70616..e467c22 100644
--- a/internal/controller/testdata/capapplication/ca-29.expected.yaml
+++ b/internal/controller/testdata/capapplication/ca-29.expected.yaml
@@ -53,3 +53,14 @@ status:
       reason: AllTenantsReady
       observedGeneration: 0
       status: "True"
+---
+apiVersion: v1
+kind: Secret
+metadata:
+  name: cap-cap-01-uaa-bind-cf
+  namespace: default
+  finalizers:
+    - sme.sap.com/capapplication # CA presevered secret exists
+type: Opaque
+data:
+  credentials: ewogICJ1YWFkb21haW4iOiAiYXV0aC5zZXJ2aWNlLmxvY2FsIiwKICAieHNhcHBuYW1lIjogInRlc3QtY2FwLTAxIWIxNCIsCiAgInVybCI6ICJodHRwczovL2FwcC1kb21haW4uYXV0aC5zZXJ2aWNlLmxvY2FsIiwKICAiY3JlZGVudGlhbC10eXBlIjogImluc3RhbmNlLXNlY3JldCIKfQo=
\ No newline at end of file
diff --git a/internal/controller/testdata/common/credential-secrets.yaml b/internal/controller/testdata/common/credential-secrets.yaml
index f258f50..7309e8f 100644
--- a/internal/controller/testdata/common/credential-secrets.yaml
+++ b/internal/controller/testdata/common/credential-secrets.yaml
@@ -3,6 +3,8 @@ kind: Secret
 metadata:
   name: cap-cap-01-uaa-bind-cf
   namespace: default
+  finalizers:
+    - sme.sap.com/capapplication
 type: Opaque
 data:
   credentials: ewogICJ1YWFkb21haW4iOiAiYXV0aC5zZXJ2aWNlLmxvY2FsIiwKICAieHNhcHBuYW1lIjogInRlc3QtY2FwLTAxIWIxNCIsCiAgInVybCI6ICJodHRwczovL2FwcC1kb21haW4uYXV0aC5zZXJ2aWNlLmxvY2FsIiwKICAiY3JlZGVudGlhbC10eXBlIjogImluc3RhbmNlLXNlY3JldCIKfQo=