diff --git a/controllers/custom/builder.go b/controllers/custom/builder.go
index 181c9bc8..232f1d42 100644
--- a/controllers/custom/builder.go
+++ b/controllers/custom/builder.go
@@ -113,15 +113,16 @@ func (b *Builder) Complete(reconciler Reconciler) (healthz.Checker, error) {
 		workqueue.DefaultControllerRateLimiter(), b.options.Name)
 
 	optimizedListWatch := newOptimizedListWatcher(b.ctx, b.clientSet.CoreV1().RESTClient(),
-		b.converter.Resource(), b.options.Namespace, b.options.PageLimit, b.converter)
+		b.converter.Resource(), b.options.Namespace, b.converter, b.log.WithName("listWatcher"))
 
 	// Create the config for low level controller with the custom converter
 	// list and watch
 	config := &cache.Config{
-		Queue:            cache.NewDeltaFIFO(b.converter.Indexer, b.dataStore),
-		ListerWatcher:    optimizedListWatch,
-		ObjectType:       b.converter.ResourceType(),
-		FullResyncPeriod: b.options.ResyncPeriod,
+		Queue:             cache.NewDeltaFIFO(b.converter.Indexer, b.dataStore),
+		ListerWatcher:     optimizedListWatch,
+		WatchListPageSize: int64(b.options.PageLimit),
+		ObjectType:        b.converter.ResourceType(),
+		FullResyncPeriod:  b.options.ResyncPeriod,
 		Process: func(obj interface{}, _ bool) error {
 			// from oldest to newest
 			for _, d := range obj.(cache.Deltas) {
diff --git a/controllers/custom/custom_controller.go b/controllers/custom/custom_controller.go
index b3bfeee5..df98b968 100644
--- a/controllers/custom/custom_controller.go
+++ b/controllers/custom/custom_controller.go
@@ -21,6 +21,7 @@ import (
 
 	"github.com/aws/amazon-vpc-resource-controller-k8s/pkg/condition"
 	"github.com/go-logr/logr"
+	apierrors "k8s.io/apimachinery/pkg/api/errors"
 	metav1 "k8s.io/apimachinery/pkg/apis/meta/v1"
 	"k8s.io/apimachinery/pkg/runtime"
 	"k8s.io/apimachinery/pkg/types"
@@ -178,23 +179,26 @@ func (c *CustomController) WaitForCacheSync(controller cache.Controller) {
 
 // newOptimizedListWatcher returns a list watcher with a custom list function that converts the
 // response for each page using the converter function and returns a general watcher
-func newOptimizedListWatcher(ctx context.Context, restClient cache.Getter, resource string, namespace string, limit int,
-	converter Converter) *cache.ListWatch {
+func newOptimizedListWatcher(ctx context.Context, restClient cache.Getter, resource string, namespace string,
+	converter Converter, log logr.Logger) *cache.ListWatch {
 
 	listFunc := func(options metav1.ListOptions) (runtime.Object, error) {
 		list, err := restClient.Get().
 			Namespace(namespace).
 			Resource(resource).
-			// This needs to be done because just setting the limit using option's
-			// Limit is being overridden and the response is returned without pagination.
 			VersionedParams(&metav1.ListOptions{
-				Limit:    int64(limit),
+				Limit:    options.Limit,
 				Continue: options.Continue,
 			}, metav1.ParameterCodec).
 			Do(ctx).
 			Get()
 		if err != nil {
-			return list, err
+			if statusErr, ok := err.(*apierrors.StatusError); ok {
+				log.Error(err, "List operation error", "code", statusErr.Status().Code)
+			} else {
+				log.Error(err, "List operation error")
+			}
+			return nil, err
 		}
 		// Strip down the the list before passing the paginated response back to
 		// the pager function
@@ -206,11 +210,20 @@ func newOptimizedListWatcher(ctx context.Context, restClient cache.Getter, resou
 	// before storing the object in the data store.
 	watchFunc := func(options metav1.ListOptions) (watch.Interface, error) {
 		options.Watch = true
-		return restClient.Get().
+		watch, err := restClient.Get().
 			Namespace(namespace).
 			Resource(resource).
 			VersionedParams(&options, metav1.ParameterCodec).
 			Watch(ctx)
+		if err != nil {
+			if statusErr, ok := err.(*apierrors.StatusError); ok {
+				log.Error(err, "Watch operation error", "code", statusErr.Status().Code)
+			} else {
+				log.Error(err, "Watch operation error")
+			}
+			return nil, err
+		}
+		return watch, err
 	}
 	return &cache.ListWatch{ListFunc: listFunc, WatchFunc: watchFunc}
 }