diff --git a/internal/hcp/internal/controllers/telemetrystate/controller_test.go b/internal/hcp/internal/controllers/telemetrystate/controller_test.go
index 84df8a27c4..e11c1e3063 100644
--- a/internal/hcp/internal/controllers/telemetrystate/controller_test.go
+++ b/internal/hcp/internal/controllers/telemetrystate/controller_test.go
@@ -33,8 +33,10 @@ type controllerSuite struct {
 	client *rtest.Client
 	rt     controller.Runtime
 
-	ctl       telemetryStateReconciler
+	ctl       *controller.TestController
 	tenancies []*pbresource.Tenancy
+
+	hcpMock *hcpclient.MockClient
 }
 
 func mockHcpClientFn(t *testing.T) (*hcpclient.MockClient, link.HCPClientFn) {
@@ -55,10 +57,12 @@ func (suite *controllerSuite) SetupTest() {
 		WithTenancies(suite.tenancies...).
 		Run(suite.T())
 
-	suite.rt = controller.Runtime{
-		Client: client,
-		Logger: testutil.Logger(suite.T()),
-	}
+	hcpMock, hcpClientFn := mockHcpClientFn(suite.T())
+	suite.hcpMock = hcpMock
+	suite.ctl = controller.NewTestController(TelemetryStateController(hcpClientFn), client).
+		WithLogger(testutil.Logger(suite.T()))
+
+	suite.rt = suite.ctl.Runtime()
 	suite.client = rtest.NewClient(client)
 }
 
@@ -93,23 +97,12 @@ func (suite *controllerSuite) TestController_Ok() {
 	mgr.SetRaftLeader(true)
 	go mgr.Run(suite.ctx)
 
-	linkData := &pbhcp.Link{
-		ClientId:     "abc",
-		ClientSecret: "abc",
-		ResourceId:   types.GenerateTestResourceID(suite.T()),
-	}
-
-	link := rtest.Resource(pbhcp.LinkType, "global").
-		WithData(suite.T(), linkData).
-		WithStatus(link.StatusKey, &pbresource.Status{Conditions: []*pbresource.Condition{link.ConditionLinked(linkData.ResourceId)}}).
-		Write(suite.T(), suite.client)
-
-	suite.T().Cleanup(suite.deleteResourceFunc(link.Id))
+	link := suite.writeLinkResource()
 
 	tsRes := suite.client.WaitForResourceExists(suite.T(), &pbresource.ID{Name: "global", Type: pbhcp.TelemetryStateType})
 	decodedState, err := resource.Decode[*pbhcp.TelemetryState](tsRes)
 	require.NoError(suite.T(), err)
-	require.Equal(suite.T(), linkData.ResourceId, decodedState.GetData().ResourceId)
+	require.Equal(suite.T(), link.GetData().GetResourceId(), decodedState.GetData().ResourceId)
 	require.Equal(suite.T(), "xxx", decodedState.GetData().ClientId)
 	require.Equal(suite.T(), "http://localhost/test", decodedState.GetData().Metrics.Endpoint)
 
@@ -117,6 +110,27 @@ func (suite *controllerSuite) TestController_Ok() {
 	suite.client.WaitForDeletion(suite.T(), tsRes.Id)
 }
 
+func (suite *controllerSuite) TestReconcile_AvoidReconciliationWriteLoop() {
+	suite.hcpMock.EXPECT().FetchTelemetryConfig(mock.Anything).Return(&hcpclient.TelemetryConfig{
+		MetricsConfig: &hcpclient.MetricsConfig{
+			Endpoint: &url.URL{
+				Scheme: "http",
+				Host:   "localhost",
+				Path:   "/test",
+			},
+			Labels:  map[string]string{"foo": "bar"},
+			Filters: regexp.MustCompile(".*"),
+		},
+		RefreshConfig: &hcpclient.RefreshConfig{},
+	}, nil)
+	link := suite.writeLinkResource()
+	suite.hcpMock.EXPECT().GetObservabilitySecret(mock.Anything).Return("xxx", "yyy", nil)
+	suite.NoError(suite.ctl.Reconcile(context.Background(), controller.Request{ID: link.Id}))
+	tsRes := suite.client.WaitForResourceExists(suite.T(), &pbresource.ID{Name: "global", Type: pbhcp.TelemetryStateType})
+	suite.NoError(suite.ctl.Reconcile(context.Background(), controller.Request{ID: tsRes.Id}))
+	suite.client.RequireVersionUnchanged(suite.T(), tsRes.Id, tsRes.Version)
+}
+
 func (suite *controllerSuite) TestController_LinkingDisabled() {
 	// Run the controller manager
 	mgr := controller.NewManager(suite.client, suite.rt.Logger)
@@ -138,3 +152,23 @@ func (suite *controllerSuite) TestController_LinkingDisabled() {
 
 	suite.client.WaitForDeletion(suite.T(), &pbresource.ID{Name: "global", Type: pbhcp.TelemetryStateType})
 }
+
+func (suite *controllerSuite) writeLinkResource() *types.DecodedLink {
+	suite.T().Helper()
+
+	linkData := &pbhcp.Link{
+		ClientId:     "abc",
+		ClientSecret: "abc",
+		ResourceId:   types.GenerateTestResourceID(suite.T()),
+	}
+
+	res := rtest.Resource(pbhcp.LinkType, "global").
+		WithData(suite.T(), linkData).
+		WithStatus(link.StatusKey, &pbresource.Status{Conditions: []*pbresource.Condition{link.ConditionLinked(linkData.ResourceId)}}).
+		Write(suite.T(), suite.client)
+
+	suite.T().Cleanup(suite.deleteResourceFunc(res.Id))
+	link, err := resource.Decode[*pbhcp.Link](res)
+	require.NoError(suite.T(), err)
+	return link
+}