diff --git a/resource_customizations/serving.kserve.io/InferenceService/health.lua b/resource_customizations/serving.kserve.io/InferenceService/health.lua
index 85da1161f315f..94959de841d59 100644
--- a/resource_customizations/serving.kserve.io/InferenceService/health.lua
+++ b/resource_customizations/serving.kserve.io/InferenceService/health.lua
@@ -1,50 +1,59 @@
--- isInferenceServiceInRawDeploymentMode determines if the inference service deployed in RawDeployment mode
--- KServe v12 and above supports Rawdeployment for Inference graphs. For Inference services, KServe has supported RawDeployment model since [v0.7.0](https://github.com/kserve/kserve/releases/tag/v0.7.0).
-function isInferenceServiceInRawDeploymentMode(obj)
-  if obj.metadata.annotations == nil then
-    return false
-  end
-  local deploymentMode = obj.metadata.annotations["serving.kserve.io/deploymentMode"]
-  return deploymentMode ~= nil and deploymentMode == "RawDeployment"
-end
-
 local health_status = {}
+
 health_status.status = "Progressing"
-health_status.message = "Waiting for status update."
-if obj.status ~= nil and obj.status.conditions ~= nil then
-  local status_true = 0
+health_status.message = "Waiting for InferenceService to report status..."
+
+if obj.status ~= nil then
+
+  local progressing = false
+  local degraded = false
   local status_false = 0
   local status_unknown = 0
-  health_status.message = ""
-  for i, condition in pairs(obj.status.conditions) do
-    if condition.status == "True" and (condition.type == "IngressReady" or condition.type == "PredictorConfigurationReady" or condition.type == "PredictorReady" or condition.type == "PredictorRouteReady" or condition.type == "Ready") then
-      status_true = status_true + 1
-    elseif condition.status == "False" or condition.status == "Unknown" then
-      msg = condition.type .. " is " .. condition.status
-      if condition.reason ~= nil and condition.reason ~= "" then
-        msg = msg .. ", since " .. condition.reason .. "."
-      end
-      if condition.message ~= nil and condition.message ~= "" then
-        msg = msg .. " " .. condition.message
-      end
-      health_status.message = health_status.message .. msg .. "\n"
-      if condition.status == "False" then
-        status_false = status_false + 1
+  local msg = ""
+
+  if obj.status.modelStatus ~= nil then
+    if obj.status.modelStatus.transitionStatus ~= "UpToDate" then
+      if obj.status.modelStatus.transitionStatus == "InProgress" then
+        progressing = true
       else
-        status_unknown = status_unknown + 1
+        degraded = true
       end
+      msg = msg .. "0: transitionStatus | " .. obj.status.modelStatus.transitionStatus
     end
   end
-  if ((isInferenceServiceInRawDeploymentMode(obj) and status_true == 3) or status_true == 5) and status_false == 0 and status_unknown == 0 then
-    health_status.message = "Inference Service is healthy."
-    health_status.status = "Healthy"
-    return health_status
-  elseif status_false > 0 then
-    health_status.status = "Degraded"
-    return health_status
-  else
-    health_status.status = "Progressing"
-    return health_status
+  
+  if obj.status.conditions ~= nil then
+    for i, condition in pairs(obj.status.conditions) do
+
+      if condition.status == "Unknown" then
+        status_unknown = status_unknown + 1
+      elseif condition.status == "False" then
+        status_false = status_false + 1
+      end
+
+      if condition.status ~= "True" then
+        msg = msg .. " | " .. i .. ": " .. condition.type .. " | " .. condition.status
+        if condition.reason ~= nil and condition.reason ~= "" then
+          msg = msg .. " | " .. condition.reason
+        end
+        if condition.message ~= nil and condition.message ~= "" then
+          msg = msg .. " | " .. condition.message
+        end
+      end
+
+    end
+
+    if progressing == false and degraded == false and status_unknown == 0 and status_false == 0 then
+      health_status.status = "Healthy"
+      msg = "InferenceService is healthy."
+    elseif degraded == false and status_unknown >= 0 then
+      health_status.status = "Progressing"
+    else
+      health_status.status = "Degraded"
+    end
+
+    health_status.message = msg
   end
 end
-return health_status
\ No newline at end of file
+
+return health_status
diff --git a/resource_customizations/serving.kserve.io/InferenceService/health_test.yaml b/resource_customizations/serving.kserve.io/InferenceService/health_test.yaml
index 1dc5576f93f3a..670b194f79d41 100644
--- a/resource_customizations/serving.kserve.io/InferenceService/health_test.yaml
+++ b/resource_customizations/serving.kserve.io/InferenceService/health_test.yaml
@@ -1,17 +1,41 @@
 tests:
 - healthStatus:
     status: Progressing
-    message: "PredictorConfigurationReady is Unknown\nPredictorReady is Unknown, since RevisionMissing. Configuration \"hello-world-predictor-default\" is waiting for a Revision to become ready.\nPredictorRouteReady is Unknown, since RevisionMissing. Configuration \"hello-world-predictor-default\" is waiting for a Revision to become ready.\nReady is Unknown, since RevisionMissing. Configuration \"hello-world-predictor-default\" is waiting for a Revision to become ready.\n"
+    message: ' | 1: PredictorConfigurationReady | Unknown | 2: PredictorReady | Unknown | RevisionMissing | Configuration "hello-world-predictor-default" is waiting for a Revision to become ready. | 3: PredictorRouteReady | Unknown | RevisionMissing | Configuration "hello-world-predictor-default" is waiting for a Revision to become ready. | 4: Ready | Unknown | RevisionMissing | Configuration "hello-world-predictor-default" is waiting for a Revision to become ready.'
   inputPath: testdata/progressing.yaml
+- healthStatus:
+    status: Progressing
+    message: '0: transitionStatus | InProgress | 1: LatestDeploymentReady | Unknown | PredictorConfigurationReady not ready | 2: PredictorConfigurationReady | Unknown | 3: PredictorReady | Unknown | RevisionMissing | Configuration "helloworld-predictor" is waiting for a Revision to become ready. | 4: PredictorRouteReady | Unknown | RevisionMissing | Configuration "helloworld-predictor" is waiting for a Revision to become ready. | 5: Ready | Unknown | RevisionMissing | Configuration "helloworld-predictor" is waiting for a Revision to become ready. | 6: RoutesReady | Unknown | PredictorRouteReady not ready'
+  inputPath: testdata/progressing_ocp.yaml
+- healthStatus:
+    status: Progressing
+    message: "0: transitionStatus | InProgress | 1: PredictorReady | False | 2: Ready | False"
+  inputPath: testdata/progressing_modelmesh.yaml
 - healthStatus:
     status: Degraded
-    message: "IngressReady is False, since Predictor ingress not created.\nPredictorConfigurationReady is False, since RevisionFailed. Revision \"helloworld-00002\" failed with message: Container failed with: container exited with no error.\nPredictorReady is False, since RevisionFailed. Revision \"helloworld-00002\" failed with message: Container failed with: container exited with no error.\nReady is False, since Predictor ingress not created.\n"
+    message: '0: transitionStatus | BlockedByFailedLoad | 1: IngressReady | False | Predictor ingress not created | 2: PredictorConfigurationReady | False | RevisionFailed | Revision "helloworld-00002" failed with message: Container failed with: container exited with no error. | 3: PredictorReady | False | RevisionFailed | Revision "helloworld-00002" failed with message: Container failed with: container exited with no error. | 5: Ready | False | Predictor ingress not created'
   inputPath: testdata/degraded.yaml
+- healthStatus:
+    status: Degraded
+    message: '0: transitionStatus | BlockedByFailedLoad | 1: LatestDeploymentReady | False | PredictorConfigurationReady not ready | 2: PredictorConfigurationReady | False | RevisionFailed | Revision "helloworld-predictor-00002" failed with message: . | 3: PredictorReady | False | RevisionMissing | Configuration "helloworld-predictor" does not have any ready Revision. | 4: PredictorRouteReady | False | RevisionMissing | Configuration "helloworld-predictor" does not have any ready Revision. | 5: Ready | False | RevisionMissing | Configuration "helloworld-predictor" does not have any ready Revision. | 6: RoutesReady | False | PredictorRouteReady not ready'
+  inputPath: testdata/degraded_ocp.yaml
+- healthStatus:
+    status: Degraded
+    message: "0: transitionStatus | BlockedByFailedLoad"
+  inputPath: testdata/degraded_modelmesh.yaml
 - healthStatus:
     status: Healthy
-    message: Inference Service is healthy.
+    message: InferenceService is healthy.
   inputPath: testdata/healthy.yaml
 - healthStatus:
     status: Healthy
-    message: Inference Service is healthy.
+    message: InferenceService is healthy.
+  inputPath: testdata/healthy_ocp.yaml
+- healthStatus:
+    status: Healthy
+    message: InferenceService is healthy.
+  inputPath: testdata/healthy_modelmesh.yaml
+- healthStatus:
+    status: Healthy
+    message: InferenceService is healthy.
   inputPath: testdata/healthy_raw.yaml
diff --git a/resource_customizations/serving.kserve.io/InferenceService/testdata/degraded.yaml b/resource_customizations/serving.kserve.io/InferenceService/testdata/degraded.yaml
index 0cd337860c670..291e4392f59f8 100644
--- a/resource_customizations/serving.kserve.io/InferenceService/testdata/degraded.yaml
+++ b/resource_customizations/serving.kserve.io/InferenceService/testdata/degraded.yaml
@@ -28,3 +28,5 @@ status:
     reason: Predictor ingress not created
     status: "False"
     type: Ready
+  modelStatus:
+    transitionStatus: BlockedByFailedLoad
\ No newline at end of file
diff --git a/resource_customizations/serving.kserve.io/InferenceService/testdata/degraded_modelmesh.yaml b/resource_customizations/serving.kserve.io/InferenceService/testdata/degraded_modelmesh.yaml
new file mode 100644
index 0000000000000..54ac46fa59356
--- /dev/null
+++ b/resource_customizations/serving.kserve.io/InferenceService/testdata/degraded_modelmesh.yaml
@@ -0,0 +1,16 @@
+apiVersion: serving.kserve.io/v1beta1
+kind: InferenceService
+metadata:
+  name: helloworld
+  namespace: default
+spec: {}
+status:
+  conditions:
+    - lastTransitionTime: '2024-05-30T22:43:16Z'
+      status: 'True'
+      type: PredictorReady
+    - lastTransitionTime: '2024-05-30T22:43:16Z'
+      status: 'True'
+      type: Ready
+  modelStatus:
+    transitionStatus: BlockedByFailedLoad
diff --git a/resource_customizations/serving.kserve.io/InferenceService/testdata/degraded_ocp.yaml b/resource_customizations/serving.kserve.io/InferenceService/testdata/degraded_ocp.yaml
new file mode 100644
index 0000000000000..d85c755dea51b
--- /dev/null
+++ b/resource_customizations/serving.kserve.io/InferenceService/testdata/degraded_ocp.yaml
@@ -0,0 +1,42 @@
+apiVersion: serving.kserve.io/v1beta1
+kind: InferenceService
+metadata:
+  name: helloworld
+  namespace: default
+spec: {}
+status:
+  conditions:
+    - lastTransitionTime: '2024-05-30T23:03:45Z'
+      reason: PredictorConfigurationReady not ready
+      severity: Info
+      status: 'False'
+      type: LatestDeploymentReady
+    - lastTransitionTime: '2024-05-30T23:03:45Z'
+      message: 'Revision "helloworld-predictor-00002" failed with message: .'
+      reason: RevisionFailed
+      severity: Info
+      status: 'False'
+      type: PredictorConfigurationReady
+    - lastTransitionTime: '2024-05-30T23:03:45Z'
+      message: Configuration "helloworld-predictor" does not have any ready Revision.
+      reason: RevisionMissing
+      status: 'False'
+      type: PredictorReady
+    - lastTransitionTime: '2024-05-30T23:03:45Z'
+      message: Configuration "helloworld-predictor" does not have any ready Revision.
+      reason: RevisionMissing
+      severity: Info
+      status: 'False'
+      type: PredictorRouteReady
+    - lastTransitionTime: '2024-05-30T23:03:45Z'
+      message: Configuration "helloworld-predictor" does not have any ready Revision.
+      reason: RevisionMissing
+      status: 'False'
+      type: Ready
+    - lastTransitionTime: '2024-05-30T23:03:45Z'
+      reason: PredictorRouteReady not ready
+      severity: Info
+      status: 'False'
+      type: RoutesReady
+  modelStatus:
+    transitionStatus: BlockedByFailedLoad
diff --git a/resource_customizations/serving.kserve.io/InferenceService/testdata/healthy_modelmesh.yaml b/resource_customizations/serving.kserve.io/InferenceService/testdata/healthy_modelmesh.yaml
new file mode 100644
index 0000000000000..290171afe2cdd
--- /dev/null
+++ b/resource_customizations/serving.kserve.io/InferenceService/testdata/healthy_modelmesh.yaml
@@ -0,0 +1,16 @@
+apiVersion: serving.kserve.io/v1beta1
+kind: InferenceService
+metadata:
+  name: helloworld
+  namespace: default
+spec: {}
+status:
+  conditions:
+    - lastTransitionTime: '2024-05-30T22:43:16Z'
+      status: 'True'
+      type: PredictorReady
+    - lastTransitionTime: '2024-05-30T22:43:16Z'
+      status: 'True'
+      type: Ready
+  modelStatus:
+    transitionStatus: UpToDate
diff --git a/resource_customizations/serving.kserve.io/InferenceService/testdata/healthy_ocp.yaml b/resource_customizations/serving.kserve.io/InferenceService/testdata/healthy_ocp.yaml
new file mode 100644
index 0000000000000..9d65c2b379e05
--- /dev/null
+++ b/resource_customizations/serving.kserve.io/InferenceService/testdata/healthy_ocp.yaml
@@ -0,0 +1,35 @@
+apiVersion: serving.kserve.io/v1beta1
+kind: InferenceService
+metadata:
+  name: helloworld
+  namespace: default
+spec: {}
+status:
+  conditions:
+    - lastTransitionTime: '2024-05-30T22:14:31Z'
+      status: 'True'
+      type: IngressReady
+    - lastTransitionTime: '2024-05-30T22:14:30Z'
+      severity: Info
+      status: 'True'
+      type: LatestDeploymentReady
+    - lastTransitionTime: '2024-05-30T22:14:30Z'
+      severity: Info
+      status: 'True'
+      type: PredictorConfigurationReady
+    - lastTransitionTime: '2024-05-30T22:14:31Z'
+      status: 'True'
+      type: PredictorReady
+    - lastTransitionTime: '2024-05-30T22:14:31Z'
+      severity: Info
+      status: 'True'
+      type: PredictorRouteReady
+    - lastTransitionTime: '2024-05-30T22:14:31Z'
+      status: 'True'
+      type: Ready
+    - lastTransitionTime: '2024-05-30T22:14:31Z'
+      severity: Info
+      status: 'True'
+      type: RoutesReady
+  modelStatus:
+    transitionStatus: UpToDate
diff --git a/resource_customizations/serving.kserve.io/InferenceService/testdata/progressing_modelmesh.yaml b/resource_customizations/serving.kserve.io/InferenceService/testdata/progressing_modelmesh.yaml
new file mode 100644
index 0000000000000..1edb429504e33
--- /dev/null
+++ b/resource_customizations/serving.kserve.io/InferenceService/testdata/progressing_modelmesh.yaml
@@ -0,0 +1,16 @@
+apiVersion: serving.kserve.io/v1beta1
+kind: InferenceService
+metadata:
+  name: helloworld
+  namespace: default
+spec: {}
+status:
+  conditions:
+    - lastTransitionTime: '2024-05-30T22:43:16Z'
+      status: 'False'
+      type: PredictorReady
+    - lastTransitionTime: '2024-05-30T22:43:16Z'
+      status: 'False'
+      type: Ready
+  modelStatus:
+    transitionStatus: InProgress
diff --git a/resource_customizations/serving.kserve.io/InferenceService/testdata/progressing_ocp.yaml b/resource_customizations/serving.kserve.io/InferenceService/testdata/progressing_ocp.yaml
new file mode 100644
index 0000000000000..aa476e80cebb4
--- /dev/null
+++ b/resource_customizations/serving.kserve.io/InferenceService/testdata/progressing_ocp.yaml
@@ -0,0 +1,40 @@
+apiVersion: serving.kserve.io/v1beta1
+kind: InferenceService
+metadata:
+  name: helloworld
+  namespace: default
+spec: {}
+status:
+  conditions:
+    - lastTransitionTime: '2024-05-30T22:29:46Z'
+      reason: PredictorConfigurationReady not ready
+      severity: Info
+      status: Unknown
+      type: LatestDeploymentReady
+    - lastTransitionTime: '2024-05-30T22:29:46Z'
+      severity: Info
+      status: Unknown
+      type: PredictorConfigurationReady
+    - lastTransitionTime: '2024-05-30T22:29:46Z'
+      message: Configuration "helloworld-predictor" is waiting for a Revision to become ready.
+      reason: RevisionMissing
+      status: Unknown
+      type: PredictorReady
+    - lastTransitionTime: '2024-05-30T22:29:46Z'
+      message: Configuration "helloworld-predictor" is waiting for a Revision to become ready.
+      reason: RevisionMissing
+      severity: Info
+      status: Unknown
+      type: PredictorRouteReady
+    - lastTransitionTime: '2024-05-30T22:29:46Z'
+      message: Configuration "helloworld-predictor" is waiting for a Revision to become ready.
+      reason: RevisionMissing
+      status: Unknown
+      type: Ready
+    - lastTransitionTime: '2024-05-30T22:29:46Z'
+      reason: PredictorRouteReady not ready
+      severity: Info
+      status: Unknown
+      type: RoutesReady
+  modelStatus:
+    transitionStatus: InProgress