diff --git a/api/v1alpha1/backstage_types.go b/api/v1alpha1/backstage_types.go
index 6e9d2098..9c09e822 100644
--- a/api/v1alpha1/backstage_types.go
+++ b/api/v1alpha1/backstage_types.go
@@ -180,7 +180,7 @@ type Env struct {
 type RuntimeConfig struct {
 	// Name of ConfigMap containing Backstage runtime objects configuration
 	BackstageConfigName string `json:"backstageConfig,omitempty"`
-	// Name of ConfigMap containing LocalDb (P|ostgreSQL) runtime objects configuration
+	// Name of ConfigMap containing LocalDb (PostgreSQL) runtime objects configuration
 	LocalDbConfigName string `json:"localDbConfig,omitempty"`
 }
 
diff --git a/controllers/backstage_controller_test.go b/controllers/backstage_controller_test.go
index f9550cbd..e8d04c53 100644
--- a/controllers/backstage_controller_test.go
+++ b/controllers/backstage_controller_test.go
@@ -490,14 +490,23 @@ spec:
         app: bs1
     spec:
       containers:
-        - name: bs1
+        - name: backstage-backend
+          image: busybox
+        - name: sidecar
+          image: busybox
+      initContainers:
+        - name: install-dynamic-plugins
           image: busybox
 `,
 					})
 				err := k8sClient.Create(ctx, backstageConfigMap)
 				Expect(err).To(Not(HaveOccurred()))
 
+				img := "backstage"
 				backstage = buildBackstageCR(bsv1alpha1.BackstageSpec{
+					Application: &bsv1alpha1.Application{
+						Image: &img,
+					},
 					RawRuntimeConfig: bsv1alpha1.RuntimeConfig{
 						BackstageConfigName: backstageConfigMap.Name,
 					},
@@ -523,7 +532,21 @@ spec:
 				By("Checking if Deployment was successfully created in the reconciliation")
 				Eventually(func() error {
 					found := &appsv1.Deployment{}
-					return k8sClient.Get(ctx, types.NamespacedName{Namespace: ns, Name: getDefaultObjName(*backstage)}, found)
+					if err := k8sClient.Get(ctx, types.NamespacedName{Namespace: ns, Name: getDefaultObjName(*backstage)}, found); err != nil {
+						return err
+					}
+					Expect(len(found.Spec.Template.Spec.Containers)).To(Equal(2))
+					for i, c := range found.Spec.Template.Spec.Containers {
+						if c.Name == _defaultBackstageMainContainerName {
+							Expect(found.Spec.Template.Spec.Containers[i].Image).To(Equal("backstage"))
+						} else {
+							Expect(found.Spec.Template.Spec.Containers[i].Image).To(Equal("busybox"))
+						}
+					}
+					Expect(len(found.Spec.Template.Spec.InitContainers)).To(Equal(1))
+					Expect(found.Spec.Template.Spec.InitContainers[0].Image).To(Equal("backstage"))
+
+					return nil
 				}, time.Minute, time.Second).Should(Succeed())
 
 				By("Checking the latest Status added to the Backstage instance")
@@ -1315,7 +1338,9 @@ plugins: []
 			By("Checking that the image was set on all containers in the Pod Spec")
 			visitContainers(&found.Spec.Template, func(container *corev1.Container) {
 				By(fmt.Sprintf("Checking Image in the Backstage Deployment - container: %q", container.Name), func() {
-					Expect(container.Image).Should(Equal(imageName))
+					if container.Name == _defaultBackstageMainContainerName || container.Name == _defaultBackstageInitContainerName {
+						Expect(container.Image).Should(Equal(imageName))
+					}
 				})
 			})
 
diff --git a/controllers/backstage_deployment.go b/controllers/backstage_deployment.go
index 6a02d382..8c3d24d1 100644
--- a/controllers/backstage_deployment.go
+++ b/controllers/backstage_deployment.go
@@ -195,10 +195,7 @@ func (r *BackstageReconciler) validateAndUpdatePsqlSecretRef(backstage bs.Backst
 
 func (r *BackstageReconciler) setDefaultDeploymentImage(deployment *appsv1.Deployment) {
 	if envBackstageImage != "" {
-		visitContainers(&deployment.Spec.Template, func(container *v1.Container) {
-			container.Image = envBackstageImage
-
-		})
+		setBackstageImage(deployment, envBackstageImage)
 	}
 }
 
@@ -212,9 +209,7 @@ func (r *BackstageReconciler) applyApplicationParamsFromCR(backstage bs.Backstag
 	if backstage.Spec.Application != nil {
 		deployment.Spec.Replicas = backstage.Spec.Application.Replicas
 		if backstage.Spec.Application.Image != nil {
-			visitContainers(&deployment.Spec.Template, func(container *v1.Container) {
-				container.Image = *backstage.Spec.Application.Image
-			})
+			setBackstageImage(deployment, *backstage.Spec.Application.Image)
 		}
 		if backstage.Spec.Application.ImagePullSecrets != nil { // use image pull secrets from the CR spec
 			deployment.Spec.Template.Spec.ImagePullSecrets = nil
@@ -236,3 +231,11 @@ func getDefaultObjName(backstage bs.Backstage) string {
 func getDefaultDbObjName(backstage bs.Backstage) string {
 	return fmt.Sprintf("backstage-psql-%s", backstage.Name)
 }
+
+func setBackstageImage(deployment *appsv1.Deployment, imageName string) {
+	visitContainers(&deployment.Spec.Template, func(container *v1.Container) {
+		if container.Name == _defaultBackstageMainContainerName || container.Name == _defaultBackstageInitContainerName {
+			container.Image = imageName
+		}
+	})
+}