diff --git a/components/provisioner/internal/operations/stages/provisioning/create_operators_bindings.go b/components/provisioner/internal/operations/stages/provisioning/create_operators_bindings.go
index c9cc547b7b..6ff0f15061 100644
--- a/components/provisioner/internal/operations/stages/provisioning/create_operators_bindings.go
+++ b/components/provisioner/internal/operations/stages/provisioning/create_operators_bindings.go
@@ -17,6 +17,9 @@ import (
 	"github.com/kyma-project/control-plane/components/provisioner/internal/operations"
 	"github.com/kyma-project/control-plane/components/provisioner/internal/util"
 	"github.com/kyma-project/control-plane/components/provisioner/internal/util/k8s"
+
+	core "k8s.io/api/core/v1"
+	v1core "k8s.io/client-go/kubernetes/typed/core/v1"
 )
 
 const (
@@ -96,6 +99,10 @@ func (s *CreateBindingsForOperatorsStep) Run(cluster model.Cluster, _ model.Oper
 		return operations.StageResult{}, err.Append("failed to create k8s client").SetComponent(apperrors.ErrClusterK8SClient)
 	}
 
+	if err := s.createNamespace(k8sClient.CoreV1().Namespaces(), "istio-system"); err != nil {
+		return operations.StageResult{}, err
+	}
+
 	clusterRoles := make([]v12.ClusterRole, 0)
 	clusterRoles = append(clusterRoles,
 		buildClusterRole(
@@ -240,3 +247,15 @@ func createClusterRoleBindings(crbClient v1.ClusterRoleBindingInterface, cluster
 	}
 	return nil
 }
+
+func (c *CreateBindingsForOperatorsStep) createNamespace(namespaceInterface v1core.NamespaceInterface, namespace string) apperrors.AppError {
+	ns := &core.Namespace{
+		ObjectMeta: metav1.ObjectMeta{Name: namespace},
+	}
+	_, err := namespaceInterface.Create(context.Background(), ns, metav1.CreateOptions{})
+
+	if err != nil && !k8serrors.IsAlreadyExists(err) {
+		return util.K8SErrorToAppError(errors.Wrap(err, "Failed to create namespace"))
+	}
+	return nil
+}
diff --git a/components/provisioner/internal/operations/stages/provisioning/create_operators_bindings_test.go b/components/provisioner/internal/operations/stages/provisioning/create_operators_bindings_test.go
index 10f75b2357..3a4f0c4a83 100644
--- a/components/provisioner/internal/operations/stages/provisioning/create_operators_bindings_test.go
+++ b/components/provisioner/internal/operations/stages/provisioning/create_operators_bindings_test.go
@@ -19,6 +19,7 @@ import (
 	"github.com/sirupsen/logrus"
 	"github.com/stretchr/testify/assert"
 	"github.com/stretchr/testify/require"
+	core "k8s.io/api/core/v1"
 	metav1 "k8s.io/apimachinery/pkg/apis/meta/v1"
 	"k8s.io/client-go/kubernetes/fake"
 )
@@ -104,6 +105,32 @@ func TestCreateBindingsForOperatorsStep_Run(t *testing.T) {
 		assert.Equal(t, time.Duration(0), result.Delay)
 	})
 
+	t.Run("should not fail if namespace istio-system already exists", func(t *testing.T) {
+		// given
+		k8sClient := fake.NewSimpleClientset()
+
+		ns := &core.Namespace{
+			ObjectMeta: metav1.ObjectMeta{Name: "istio-system"},
+		}
+
+		_, err := k8sClient.CoreV1().Namespaces().Create(context.Background(), ns, metav1.CreateOptions{})
+
+		require.NoError(t, err)
+
+		k8sClientProvider := &mocks.K8sClientProvider{}
+		k8sClientProvider.On("CreateK8SClient", dynamicKubeconfig).Return(k8sClient, nil)
+
+		step := NewCreateBindingsForOperatorsStep(k8sClientProvider, operatorBindingConfig, dynamicKubeconfigProvider, nextStageName, time.Minute)
+
+		// when
+		result, err := step.Run(cluster, model.Operation{}, &logrus.Entry{})
+
+		// then
+		require.NoError(t, err)
+		assert.Equal(t, nextStageName, result.Stage)
+		assert.Equal(t, time.Duration(0), result.Delay)
+	})
+
 	t.Run("should attempt retry when failed to get dynamic kubeconfig", func(t *testing.T) {
 		// given
 		dynamicKubeconfigProvider := &provisioning_mocks.DynamicKubeconfigProvider{}