diff --git a/pkg/controller/mpi_job_controller.go b/pkg/controller/mpi_job_controller.go
index 4af15e25..a84d7e29 100644
--- a/pkg/controller/mpi_job_controller.go
+++ b/pkg/controller/mpi_job_controller.go
@@ -1160,6 +1160,30 @@ func (c *MPIJobController) updateMPIJobStatus(mpiJob *kubeflow.MPIJob, launcher
 	if isMPIJobSuspended(mpiJob) {
 		msg := fmt.Sprintf("MPIJob %s/%s is suspended.", mpiJob.Namespace, mpiJob.Name)
 		updateMPIJobConditions(mpiJob, kubeflow.JobRunning, corev1.ConditionFalse, mpiJobSuspendedReason, msg)
+	} else if isFinished(mpiJob.Status) {
+		// Job reached a terminal state. Do not re-emit Running=True to avoid having a LastTransition time after
+		// the completion time.
+		// If Running was never set (e.g. job completed before the operator observed it running), add Running=False
+		// using the completionTime so that consumers computing duration still find the condition and can make
+		// some guesses about the job lifecycle.
+		if getCondition(mpiJob.Status, kubeflow.JobRunning) == nil {
+			msg := fmt.Sprintf("MPIJob %s/%s is finished but Running condition was never set.", mpiJob.Namespace, mpiJob.Name)
+			cond := kubeflow.JobCondition{
+				Type:    kubeflow.JobRunning,
+				Status:  corev1.ConditionFalse,
+				Reason:  mpiJobRunningReason,
+				Message: msg,
+			}
+			if mpiJob.Status.CompletionTime != nil {
+				cond.LastTransitionTime = *mpiJob.Status.CompletionTime
+				cond.LastUpdateTime = *mpiJob.Status.CompletionTime
+			} else {
+				now := metav1.Now()
+				cond.LastTransitionTime = now
+				cond.LastUpdateTime = now
+			}
+			mpiJob.Status.Conditions = append(mpiJob.Status.Conditions, cond)
+		}
 	} else if launcher != nil && launcherPodsCnt >= 1 && running == len(worker) {
 		msg := fmt.Sprintf("MPIJob %s/%s is running.", mpiJob.Namespace, mpiJob.Name)
 		updateMPIJobConditions(mpiJob, kubeflow.JobRunning, corev1.ConditionTrue, mpiJobRunningReason, msg)
diff --git a/pkg/controller/mpi_job_controller_test.go b/pkg/controller/mpi_job_controller_test.go
index 888a7f4a..4e61deb8 100644
--- a/pkg/controller/mpi_job_controller_test.go
+++ b/pkg/controller/mpi_job_controller_test.go
@@ -629,6 +629,71 @@ func TestLauncherSucceeded(t *testing.T) {
 	updateMPIJobConditions(mpiJobCopy, kubeflow.JobCreated, corev1.ConditionTrue, mpiJobCreatedReason, msg)
 	msg = fmt.Sprintf("MPIJob %s/%s successfully completed.", mpiJob.Namespace, mpiJob.Name)
 	updateMPIJobConditions(mpiJobCopy, kubeflow.JobSucceeded, corev1.ConditionTrue, mpiJobSucceededReason, msg)
+	// Running=False is added when the job finishes without Running ever being set.
+	msg = fmt.Sprintf("MPIJob %s/%s is finished but Running condition was never set.", mpiJob.Namespace, mpiJob.Name)
+	updateMPIJobConditions(mpiJobCopy, kubeflow.JobRunning, corev1.ConditionFalse, mpiJobRunningReason, msg)
+	f.expectUpdateMPIJobStatusAction(mpiJobCopy)
+
+	f.run(t.Context(), getKey(mpiJob, t))
+}
+
+// TestLauncherSucceededWithRunningPod tests that when a launcher Job has succeeded but its pod is still observed as Running due to
+// informer lag). Workers have been cleaned up. The Running condition is set to False rather than being re-emitted as True alongside
+// Succeeded.
+func TestLauncherSucceededWithRunningPod(t *testing.T) {
+	f := newFixture(t, "")
+
+	startTime := metav1.Now()
+	completionTime := metav1.Now()
+
+	mpiJob := newMPIJob("test", ptr.To[int32](64), &startTime, &completionTime)
+	// Pre-set the Running condition to simulate a job that was running before completion.
+	msg := fmt.Sprintf("MPIJob %s/%s is created.", mpiJob.Namespace, mpiJob.Name)
+	updateMPIJobConditions(mpiJob, kubeflow.JobCreated, corev1.ConditionTrue, mpiJobCreatedReason, msg)
+	msg = fmt.Sprintf("MPIJob %s/%s is running.", mpiJob.Namespace, mpiJob.Name)
+	updateMPIJobConditions(mpiJob, kubeflow.JobRunning, corev1.ConditionTrue, mpiJobRunningReason, msg)
+	f.setUpMPIJob(mpiJob)
+
+	fmjc := f.newFakeMPIJobController()
+	mpiJobCopy := mpiJob.DeepCopy()
+	scheme.Scheme.Default(mpiJobCopy)
+	launcher := fmjc.newLauncherJob(mpiJobCopy)
+	// Launcher Job has succeeded.
+	launcher.Status.Conditions = append(launcher.Status.Conditions, []batchv1.JobCondition{
+		{
+			Type:   batchv1.JobSuccessCriteriaMet,
+			Status: corev1.ConditionTrue,
+		},
+		{
+			Type:   batchv1.JobComplete,
+			Status: corev1.ConditionTrue,
+		},
+	}...)
+	launcher.Status.StartTime = &startTime
+	launcher.Status.CompletionTime = &completionTime
+	f.setUpLauncher(launcher)
+
+	// Launcher pod is still observed as Running despite the Job having completed.
+	launcherPod := mockJobPod(launcher)
+	launcherPod.Status.Phase = corev1.PodRunning
+	f.setUpPod(launcherPod)
+
+	mpiJobCopy.Status.ReplicaStatuses = map[kubeflow.MPIReplicaType]*kubeflow.ReplicaStatus{
+		kubeflow.MPIReplicaTypeLauncher: {
+			Active:    0,
+			Succeeded: 1,
+			Failed:    0,
+		},
+		kubeflow.MPIReplicaTypeWorker: {},
+	}
+	setUpMPIJobTimestamp(mpiJobCopy, &startTime, &completionTime)
+
+	msg = fmt.Sprintf("MPIJob %s/%s is created.", mpiJob.Namespace, mpiJob.Name)
+	updateMPIJobConditions(mpiJobCopy, kubeflow.JobCreated, corev1.ConditionTrue, mpiJobCreatedReason, msg)
+	msg = fmt.Sprintf("MPIJob %s/%s is running.", mpiJob.Namespace, mpiJob.Name)
+	updateMPIJobConditions(mpiJobCopy, kubeflow.JobRunning, corev1.ConditionFalse, mpiJobRunningReason, msg)
+	msg = fmt.Sprintf("MPIJob %s/%s successfully completed.", mpiJob.Namespace, mpiJob.Name)
+	updateMPIJobConditions(mpiJobCopy, kubeflow.JobSucceeded, corev1.ConditionTrue, mpiJobSucceededReason, msg)
 	f.expectUpdateMPIJobStatusAction(mpiJobCopy)
 
 	f.run(t.Context(), getKey(mpiJob, t))
@@ -692,6 +757,9 @@ func TestLauncherFailed(t *testing.T) {
 	updateMPIJobConditions(mpiJobCopy, kubeflow.JobCreated, corev1.ConditionTrue, mpiJobCreatedReason, msg)
 	msg = "Job has reached the specified backoff limit: second message"
 	updateMPIJobConditions(mpiJobCopy, kubeflow.JobFailed, corev1.ConditionTrue, batchv1.JobReasonBackoffLimitExceeded+"/FailedReason2", msg)
+	// Running=False is added when the job finishes without Running ever being set.
+	msg = fmt.Sprintf("MPIJob %s/%s is finished but Running condition was never set.", mpiJob.Namespace, mpiJob.Name)
+	updateMPIJobConditions(mpiJobCopy, kubeflow.JobRunning, corev1.ConditionFalse, mpiJobRunningReason, msg)
 
 	f.expectUpdateMPIJobStatusAction(mpiJobCopy)