diff --git a/assets/state-device-plugin/0500_daemonset.yaml b/assets/state-device-plugin/0500_daemonset.yaml
index c4d85adfb..150c2b5fe 100644
--- a/assets/state-device-plugin/0500_daemonset.yaml
+++ b/assets/state-device-plugin/0500_daemonset.yaml
@@ -35,6 +35,32 @@ spec:
           - name: run-nvidia-validations
             mountPath: /run/nvidia/validations
             mountPropagation: HostToContainer
+      # The cdi-validation init container will only be added when CDI is enabled in the operator.
+      # This init container ensures that the device-plugin does not start until a version of
+      # the toolkit container that has CDI enabled is running. This is implemented to prevent
+      # a possible race condition where a newer version of the device-plugin, with CDI enabled,
+      # starts running while an older version of the toolkit, which does not have CDI enabled,
+      # is still running.
+      - image: "FILLED BY THE OPERATOR"
+        name: cdi-validation
+        command: [ 'sh', '-c' ]
+        args:
+          - |
+            if [ -z "${NVIDIA_CTK_LIBCUDA_DIR}" ]; then
+              echo "waiting for NVIDIA Container Toolkit to be installed with CDI enabled"
+              echo "will sleep and then exit"
+              sleep 5
+              exit 1
+            fi
+        env:
+          - name: NVIDIA_VISIBLE_DEVICES
+            value: all
+        securityContext:
+          privileged: true
+        volumeMounts:
+          - name: run-nvidia-validations
+            mountPath: /run/nvidia/validations
+            mountPropagation: HostToContainer
       - image: "FILLED BY THE OPERATOR"
         name: config-manager-init
         command: ["config-manager"]
diff --git a/controllers/object_controls.go b/controllers/object_controls.go
index dfe9c924c..f72ab6e66 100644
--- a/controllers/object_controls.go
+++ b/controllers/object_controls.go
@@ -1506,6 +1506,15 @@ func TransformDevicePlugin(obj *appsv1.DaemonSet, config *gpuv1.ClusterPolicySpe
 	// update env required for CDI support
 	if config.CDI.IsEnabled() {
 		transformDevicePluginCtrForCDI(devicePluginMainContainer, config)
+	} else {
+		// remove the "cdi-validation" init container when CDI is not enabled
+		cdiValidationContainerName := "cdi-validation"
+		for i, container := range obj.Spec.Template.Spec.InitContainers {
+			if container.Name != cdiValidationContainerName {
+				continue
+			}
+			obj.Spec.Template.Spec.InitContainers = append(obj.Spec.Template.Spec.InitContainers[:i], obj.Spec.Template.Spec.InitContainers[i+1:]...)
+		}
 	}
 
 	// update MPS volumes and set MPS_ROOT env var if a custom MPS root is configured
diff --git a/controllers/transforms_test.go b/controllers/transforms_test.go
index eb933fc48..8477997a6 100644
--- a/controllers/transforms_test.go
+++ b/controllers/transforms_test.go
@@ -950,6 +950,36 @@ func TestTransformDevicePlugin(t *testing.T) {
 				},
 			}).WithRuntimeClassName("nvidia"),
 		},
+		{
+			description: "transform device plugin, CDI is disabled",
+			ds: NewDaemonset().
+				WithInitContainer(corev1.Container{Name: "dummy"}).
+				WithInitContainer(corev1.Container{Name: "cdi-validation"}).
+				WithContainer(corev1.Container{Name: "nvidia-device-plugin"}),
+			cpSpec: &gpuv1.ClusterPolicySpec{
+				DevicePlugin: gpuv1.DevicePluginSpec{
+					Repository: "nvcr.io/nvidia/cloud-native",
+					Image:      "nvidia-device-plugin",
+					Version:    "v1.0.0",
+				},
+				CDI: gpuv1.CDIConfigSpec{
+					Enabled: newBoolPtr(false),
+				},
+				Validator: gpuv1.ValidatorSpec{
+					Repository: "nvcr.io/nvidia",
+					Image:      "validator",
+					Version:    "v1.0.0",
+				},
+			},
+			expectedDs: NewDaemonset().WithContainer(corev1.Container{
+				Name:            "nvidia-device-plugin",
+				Image:           "nvcr.io/nvidia/cloud-native/nvidia-device-plugin:v1.0.0",
+				ImagePullPolicy: corev1.PullIfNotPresent,
+				Env: []corev1.EnvVar{
+					{Name: "NVIDIA_MIG_MONITOR_DEVICES", Value: "all"},
+				},
+			}).WithInitContainer(corev1.Container{Name: "dummy"}).WithRuntimeClassName("nvidia"),
+		},
 	}
 
 	for _, tc := range testCases {