diff --git a/chart/templates/ws-daemon-daemonset.yaml b/chart/templates/ws-daemon-daemonset.yaml
index 5be4114cf7b012..59a3dd0bd5d9ac 100644
--- a/chart/templates/ws-daemon-daemonset.yaml
+++ b/chart/templates/ws-daemon-daemonset.yaml
@@ -258,6 +258,12 @@ spec:
             path: "/"
           initialDelaySeconds: 5
           periodSeconds: 10
+        livenessProbe:
+          httpGet:
+            port: 9999
+            path: "/"
+          initialDelaySeconds: 5
+          periodSeconds: 10
         securityContext:
           privileged: true
           procMount: Default
diff --git a/components/ws-daemon/pkg/container/container.go b/components/ws-daemon/pkg/container/container.go
index e60df1fbad8bba..ca4401a5437fa0 100644
--- a/components/ws-daemon/pkg/container/container.go
+++ b/components/ws-daemon/pkg/container/container.go
@@ -44,8 +44,8 @@ type Runtime interface {
 	// ContainerPID returns the PID of the container's namespace root process, e.g. the container shim.
 	ContainerPID(ctx context.Context, id ID) (pid uint64, err error)
 
-	// Error listens for errors in the interaction with the container runtime
-	Error() <-chan error
+	// IsContainerdReady returns is the status of containerd.
+	IsContainerdReady(ctx context.Context) (bool, error)
 }
 
 var (
diff --git a/components/ws-daemon/pkg/container/containerd.go b/components/ws-daemon/pkg/container/containerd.go
index 4a83689f2ec064..5ba9a87c99848d 100644
--- a/components/ws-daemon/pkg/container/containerd.go
+++ b/components/ws-daemon/pkg/container/containerd.go
@@ -52,11 +52,10 @@ func NewContainerd(cfg *ContainerdConfig, mounts *NodeMountsLookup, pathMapping
 		Mounts:  mounts,
 		Mapping: pathMapping,
 
-		cond:    sync.NewCond(&sync.Mutex{}),
-		cntIdx:  make(map[string]*containerInfo),
-		podIdx:  make(map[string]*containerInfo),
-		wsiIdx:  make(map[string]*containerInfo),
-		errchan: make(chan error),
+		cond:   sync.NewCond(&sync.Mutex{}),
+		cntIdx: make(map[string]*containerInfo),
+		podIdx: make(map[string]*containerInfo),
+		wsiIdx: make(map[string]*containerInfo),
 	}
 	go res.start()
 
@@ -69,11 +68,10 @@ type Containerd struct {
 	Mounts  *NodeMountsLookup
 	Mapping PathMapping
 
-	cond    *sync.Cond
-	podIdx  map[string]*containerInfo
-	wsiIdx  map[string]*containerInfo
-	cntIdx  map[string]*containerInfo
-	errchan chan error
+	cond   *sync.Cond
+	podIdx map[string]*containerInfo
+	wsiIdx map[string]*containerInfo
+	cntIdx map[string]*containerInfo
 }
 
 type containerInfo struct {
@@ -104,7 +102,6 @@ func (s *Containerd) start() {
 		cs, err := s.Client.ContainerService().List(ctx)
 		if err != nil {
 			log.WithError(err).Error("cannot list container")
-			s.errchan <- xerrors.Errorf("cannot list container: %w", err)
 			time.Sleep(reconnectionInterval)
 			continue
 		}
@@ -123,7 +120,6 @@ func (s *Containerd) start() {
 		tsks, err := s.Client.TaskService().List(ctx, &tasks.ListTasksRequest{})
 		if err != nil {
 			log.WithError(err).Error("cannot list tasks")
-			s.errchan <- xerrors.Errorf("cannot list tasks: %w", err)
 			time.Sleep(reconnectionInterval)
 			continue
 		}
@@ -144,7 +140,6 @@ func (s *Containerd) start() {
 				s.handleContainerdEvent(ev)
 			case err := <-errchan:
 				log.WithError(err).Error("lost connection to containerd - will attempt to reconnect")
-				s.errchan <- err
 				time.Sleep(reconnectionInterval)
 				break
 			}
@@ -304,11 +299,6 @@ func (s *Containerd) handleNewTask(cid string, rootfs []*types.Mount, pid uint32
 	s.cond.Broadcast()
 }
 
-// Error listens for errors in the interaction with the container runtime
-func (s *Containerd) Error() <-chan error {
-	return s.errchan
-}
-
 // WaitForContainer waits for workspace container to come into existence.
 func (s *Containerd) WaitForContainer(ctx context.Context, workspaceInstanceID string) (cid ID, err error) {
 	//nolint:ineffassign
@@ -460,6 +450,11 @@ func (s *Containerd) ContainerPID(ctx context.Context, id ID) (pid uint64, err e
 	return uint64(info.PID), nil
 }
 
+// ContainerPID returns the PID of the container's namespace root process, e.g. the container shim.
+func (s *Containerd) IsContainerdReady(ctx context.Context) (bool, error) {
+	return s.Client.IsServing(ctx)
+}
+
 // ExtractCGroupPathFromContainer retrieves the CGroupPath from the linux section
 // in a container's OCI spec.
 func ExtractCGroupPathFromContainer(container containers.Container) (cgroupPath string, err error) {
diff --git a/components/ws-daemon/pkg/daemon/daemon.go b/components/ws-daemon/pkg/daemon/daemon.go
index ac424363974869..8b4fa816f3f58b 100644
--- a/components/ws-daemon/pkg/daemon/daemon.go
+++ b/components/ws-daemon/pkg/daemon/daemon.go
@@ -6,6 +6,7 @@ package daemon
 
 import (
 	"context"
+	"fmt"
 	"net/http"
 	"os"
 
@@ -40,11 +41,6 @@ func NewDaemon(config Config, reg prometheus.Registerer) (*Daemon, error) {
 	if containerRuntime == nil {
 		return nil, xerrors.Errorf("no container runtime configured")
 	}
-	go func() {
-		// TODO(cw): handle this case more gracefully
-		err := <-containerRuntime.Error()
-		log.WithError(err).Fatal("container runtime interface error")
-	}()
 
 	nodename := os.Getenv("NODENAME")
 	if nodename == "" {
@@ -162,6 +158,17 @@ func (d *Daemon) startReadinessSignal() {
 			return
 		}
 
+		isContainerdReady, err := d.dispatch.Runtime.IsContainerdReady(context.Background())
+		if err != nil {
+			http.Error(w, fmt.Sprintf("containerd error: %v", err), http.StatusTooEarly)
+			return
+		}
+
+		if !isContainerdReady {
+			http.Error(w, "containerd is not ready", http.StatusServiceUnavailable)
+			return
+		}
+
 		w.WriteHeader(http.StatusOK)
 	}))
 	log.WithField("addr", d.Config.ReadinessSignal.Addr).Info("started readiness signal")