diff --git a/cmd/manager/main.go b/cmd/manager/main.go
index b775c7f95e..053ca67e01 100644
--- a/cmd/manager/main.go
+++ b/cmd/manager/main.go
@@ -148,7 +148,7 @@ func main() {
 		os.Exit(1)
 	}
 
-	if err := mcs.Register(discovery.NewDiscoveryClientForConfigOrDie(config)); err != nil {
+	if err := mcs.Register(discovery.NewDiscoveryClientForConfigOrDie(config), setupLog); err != nil {
 		setupLog.Error(err, "failed to register multicluster service")
 		os.Exit(1)
 	}
diff --git a/pkg/mcs/register.go b/pkg/mcs/register.go
index 402ae7886b..6a947436dd 100644
--- a/pkg/mcs/register.go
+++ b/pkg/mcs/register.go
@@ -1,7 +1,7 @@
 package mcs
 
 import (
-	"github.com/pkg/errors"
+	"github.com/go-logr/logr"
 	metav1 "k8s.io/apimachinery/pkg/apis/meta/v1"
 	"k8s.io/apimachinery/pkg/runtime"
 	"k8s.io/apimachinery/pkg/runtime/schema"
@@ -33,10 +33,14 @@ func addKnownTypes(scheme *runtime.Scheme) error {
 	return nil
 }
 
-func Register(dc *discovery.DiscoveryClient) error {
+func Register(dc *discovery.DiscoveryClient, log logr.Logger) error {
 	resources, err := dc.ServerPreferredResources()
 	if err != nil {
-		return errors.Wrap(err, "get api groups and resources")
+		// MCS is optional functionality - if discovery fails for any reason,
+		// mark it as unavailable and continue without crashing the operator
+		available = false
+		log.Info("Multi-cluster services (MCS) are not available: failed to discover API resources", "error", err)
+		return nil
 	}
 
 outer:
@@ -53,6 +57,7 @@ outer:
 
 	if MCSSchemeGroupVersion.Group == "" {
 		available = false
+		log.Info("Multi-cluster services (MCS) are not available: ServiceExport resource not found in cluster")
 		return nil
 	}
 
diff --git a/pkg/mcs/register_test.go b/pkg/mcs/register_test.go
new file mode 100644
index 0000000000..3628d84f40
--- /dev/null
+++ b/pkg/mcs/register_test.go
@@ -0,0 +1,60 @@
+package mcs
+
+import (
+	"testing"
+)
+
+func TestIsAvailable(t *testing.T) {
+	// Test IsAvailable function
+	available = true
+	if !IsAvailable() {
+		t.Error("Expected IsAvailable to return true when available is true")
+	}
+
+	available = false
+	if IsAvailable() {
+		t.Error("Expected IsAvailable to return false when available is false")
+	}
+}
+
+func TestMCSSchemeGroupVersion(t *testing.T) {
+	// Test that MCSSchemeGroupVersion is initialized correctly
+	if MCSSchemeGroupVersion.Group != "" {
+		t.Errorf("Expected MCSSchemeGroupVersion.Group to be empty initially, got: %s", MCSSchemeGroupVersion.Group)
+	}
+	if MCSSchemeGroupVersion.Version != "" {
+		t.Errorf("Expected MCSSchemeGroupVersion.Version to be empty initially, got: %s", MCSSchemeGroupVersion.Version)
+	}
+}
+
+func TestServiceExport(t *testing.T) {
+	// Test ServiceExport creation
+	namespace := "test-namespace"
+	name := "test-service"
+	labels := map[string]string{
+		"app": "test",
+	}
+
+	se := ServiceExport(namespace, name, labels)
+
+	if se.Name != name {
+		t.Errorf("Expected ServiceExport name to be %s, got: %s", name, se.Name)
+	}
+
+	if se.Namespace != namespace {
+		t.Errorf("Expected ServiceExport namespace to be %s, got: %s", namespace, se.Namespace)
+	}
+
+	if se.Labels["app"] != "test" {
+		t.Errorf("Expected ServiceExport label 'app' to be 'test', got: %s", se.Labels["app"])
+	}
+}
+
+func TestServiceExportList(t *testing.T) {
+	// Test ServiceExportList creation
+	seList := ServiceExportList()
+
+	if seList.Kind != "ServiceExportList" {
+		t.Errorf("Expected ServiceExportList Kind to be 'ServiceExportList', got: %s", seList.Kind)
+	}
+}