diff --git a/api-ref/source/parameters.yaml b/api-ref/source/parameters.yaml
index 94963b6d8..92d370284 100644
--- a/api-ref/source/parameters.yaml
+++ b/api-ref/source/parameters.yaml
@@ -22,7 +22,8 @@ subcloud_uri:
 sw_update_strategy_type:
   description: |
     Filter to query a particular type of update strategy if it exists.
-    One of: `firmware`, `kube-rootca-update`, `kubernetes`, `patch`, `upgrade`
+    One of: `firmware`, `kube-rootca-update`, `kubernetes`, `patch`,
+    `prestage`, or `upgrade`.
   in: path
   required: false
   type: string
diff --git a/distributedcloud/dcmanager/common/exceptions.py b/distributedcloud/dcmanager/common/exceptions.py
index f570a239e..8f5a503c6 100644
--- a/distributedcloud/dcmanager/common/exceptions.py
+++ b/distributedcloud/dcmanager/common/exceptions.py
@@ -229,5 +229,12 @@ class StrategyStepNameNotFound(NotFound):
     message = _("StrategyStep with name %(name)s doesn't exist.")
 
 
+class StrategySkippedException(DCManagerException):
+    def __init__(self, details):
+        self.details = details
+        self.message = _(details)
+        super(StrategySkippedException, self).__init__()
+
+
 class StrategyStoppedException(DCManagerException):
     message = _("Strategy has been stopped")
diff --git a/distributedcloud/dcmanager/orchestrator/orch_thread.py b/distributedcloud/dcmanager/orchestrator/orch_thread.py
index e4dc1592a..480247147 100644
--- a/distributedcloud/dcmanager/orchestrator/orch_thread.py
+++ b/distributedcloud/dcmanager/orchestrator/orch_thread.py
@@ -122,8 +122,12 @@ class OrchThread(threading.Thread):
 
     @staticmethod
     def format_update_details(last_state, info):
-        # include the last state, since the current state is likely 'failed'
-        details = "%s: %s" % (last_state, info)
+        # Optionally include the last state, since the current state
+        # is likely 'failed'
+        if last_state:
+            details = "%s: %s" % (last_state, info)
+        else:
+            details = str(info)
         # details cannot exceed 255 chars. truncate and add '..'
         if len(details) > 255:
             details = details[:253] + '..'
@@ -535,14 +539,26 @@ class OrchThread(threading.Thread):
             self.strategy_step_update(strategy_step.subcloud_id,
                                       state=next_state,
                                       details="")
-        except Exception as e:
+        except exceptions.StrategySkippedException as ex:
+            LOG.info("(%s) Skipping subcloud, Stage: %s, State: %s, Subcloud: %s"
+                     % (self.update_type,
+                        strategy_step.stage,
+                        strategy_step.state,
+                        self.get_region_name(strategy_step)))
+            # Transition immediately to complete. Update the details to show
+            # that this subcloud has been skipped
+            details = self.format_update_details(None, str(ex))
+            self.strategy_step_update(strategy_step.subcloud_id,
+                                      state=consts.STRATEGY_STATE_COMPLETE,
+                                      details=details)
+        except Exception as ex:
             # Catch ALL exceptions and set the strategy to failed
             LOG.exception("(%s) Failed! Stage: %s, State: %s, Subcloud: %s"
                           % (self.update_type,
                              strategy_step.stage,
                              strategy_step.state,
                              self.get_region_name(strategy_step)))
-            details = self.format_update_details(strategy_step.state, str(e))
+            details = self.format_update_details(strategy_step.state, str(ex))
             self.strategy_step_update(strategy_step.subcloud_id,
                                       state=consts.STRATEGY_STATE_FAILED,
                                       details=details)
diff --git a/distributedcloud/dcmanager/orchestrator/states/prestage/states.py b/distributedcloud/dcmanager/orchestrator/states/prestage/states.py
index 6468b4fcd..c3ee8ed2f 100644
--- a/distributedcloud/dcmanager/orchestrator/states/prestage/states.py
+++ b/distributedcloud/dcmanager/orchestrator/states/prestage/states.py
@@ -32,7 +32,12 @@ class PrestageState(BaseState):
         """Wrapper to ensure proper error handling"""
         try:
             self._do_state_action(strategy_step)
-
+        except exceptions.StrategySkippedException:
+            # Move deploy_status back to complete (nothing has changed)
+            db_api.subcloud_update(
+                self.context, strategy_step.subcloud.id,
+                deploy_status=consts.DEPLOY_STATE_DONE)
+            raise
         except Exception:
             prestage.prestage_fail(self.context, strategy_step.subcloud.id)
             raise
@@ -95,19 +100,14 @@ class PrestagePreCheckState(PrestageState):
             prestage.prestage_start(self.context, strategy_step.subcloud.id)
 
         except exceptions.PrestagePreCheckFailedException as ex:
+            # We've either failed precheck or we want to skip this subcloud.
+            # Either way, we'll re-raise up to the base class for status
+            # update, and then let OrchThread take it from here
             if ex.orch_skip:
-                self.info_log(strategy_step,
-                              "Pre-check: skipping subcloud: %s" % ex)
+                raise exceptions.StrategySkippedException(details=str(ex))
 
-                # Update the details to show that this subcloud has been skipped
-                db_api.strategy_step_update(self.context,
-                                            strategy_step.subcloud.id,
-                                            details=str(ex))
-
-                self.override_next_state(consts.STRATEGY_STATE_COMPLETE)
-            else:
-                self.info_log(strategy_step, "Pre-check failed: %s" % ex)
-                raise
+            self.error_log(strategy_step, "Pre-check failed: %s" % ex)
+            raise
         else:
             self.info_log(strategy_step, "Pre-check pass")