diff --git a/controllerconfig/controllerconfig/upgrade-scripts/96-adjust-subcloud-deploy-state.py b/controllerconfig/controllerconfig/upgrade-scripts/96-adjust-subcloud-deploy-state.py
new file mode 100755
index 0000000000..f024f42465
--- /dev/null
+++ b/controllerconfig/controllerconfig/upgrade-scripts/96-adjust-subcloud-deploy-state.py
@@ -0,0 +1,93 @@
+#!/usr/bin/env python
+# Copyright (c) 2024 Wind River Systems, Inc.
+#
+# SPDX-License-Identifier: Apache-2.0
+#
+# This script will update the deploy status of subclouds
+# from 'deploy-prep-failed' to 'pre-config-failed'
+# and 'deploy-failed' to 'config-failed', allowing the
+# user to run deploy config step of subcloud deployment
+# after the deprecation of subcloud reconfig and the old
+# deploy status.
+
+import sys
+
+from dcmanager.common import consts as dcmanager_consts
+import psycopg2
+
+from controllerconfig.common import log
+
+
+LOG = log.get_logger(__name__)
+
+DEPLOY_STATUS_MAP = {
+    dcmanager_consts.DEPLOY_STATE_DEPLOY_PREP_FAILED:
+        dcmanager_consts.DEPLOY_STATE_PRE_CONFIG_FAILED,
+    dcmanager_consts.DEPLOY_STATE_DEPLOY_FAILED:
+        dcmanager_consts.DEPLOY_STATE_CONFIG_FAILED
+}
+
+
+def main():
+    action = None
+    from_release = None
+    to_release = None
+    arg = 1
+    while arg < len(sys.argv):
+        if arg == 1:
+            from_release = sys.argv[arg]
+        elif arg == 2:
+            to_release = sys.argv[arg]
+        elif arg == 3:
+            action = sys.argv[arg]
+        elif arg == 4:
+            # postgres_port = sys.argv[arg]
+            pass
+        else:
+            print("Invalid option %s." % sys.argv[arg])
+            return 1
+        arg += 1
+    log.configure()
+    LOG.info(
+        "%s invoked from_release = %s to_release = %s action = %s"
+        % (sys.argv[0], from_release, to_release, action)
+    )
+    res = 0
+    if action == 'migrate' and from_release == '22.12':
+        try:
+            conn = psycopg2.connect("dbname=dcmanager user=postgres")
+            do_update_deploy_status(conn)
+        except psycopg2.OperationalError:
+            # Since neither tsconfig or /etc/platform/platform.conf have
+            # the distributedcloud role at this stage, try to connect to
+            # the dcmanager db, and consider to not be a systemcontroller
+            # if the database doesn't exist
+            LOG.info("Not a systemcontroller, nothing to do")
+            res = 0
+        except Exception as e:
+            LOG.exception("Error: {}".format(e))
+            res = 1
+    return res
+
+
+def do_update_deploy_status(conn):
+    for old_deploy_status, new_deploy_status in DEPLOY_STATUS_MAP.items():
+        query = (
+            f"UPDATE subclouds SET deploy_status='{new_deploy_status}'"
+            f"WHERE deploy_status='{old_deploy_status}';"
+        )
+        LOG.info(
+            f"Update deploy_status from {old_deploy_status} to "
+            f"{new_deploy_status}"
+        )
+        do_update_query(conn, query)
+
+
+def do_update_query(conn, query):
+    with conn.cursor() as cur:
+        cur.execute(query)
+    conn.commit()
+
+
+if __name__ == "__main__":
+    sys.exit(main())