diff --git a/internal/controller/utils.go b/internal/controller/utils.go
index 8c784980e..03fe944c3 100644
--- a/internal/controller/utils.go
+++ b/internal/controller/utils.go
@@ -254,6 +254,9 @@ func SetRouteConditionResolvedRefs(routeParentStatus *gatewayv1.RouteParentStatu
 	if !status && strings.Contains(message, string(gatewayv1.RouteReasonInvalidKind)) {
 		reason = string(gatewayv1.RouteReasonInvalidKind)
 	}
+	if !status && strings.Contains(message, "Service") && strings.Contains(message, "not found") {
+		reason = string(gatewayv1.RouteReasonBackendNotFound)
+	}
 
 	condition := metav1.Condition{
 		Type:               string(gatewayv1.RouteConditionResolvedRefs),
diff --git a/test/conformance/conformance_test.go b/test/conformance/conformance_test.go
index 704aebf47..7ce0b1954 100644
--- a/test/conformance/conformance_test.go
+++ b/test/conformance/conformance_test.go
@@ -40,7 +40,6 @@ var skippedTestsForTraditionalRoutes = []string{
 	tests.GatewayInvalidTLSConfiguration.ShortName,
 	// tests.HTTPRouteInvalidBackendRefUnknownKind.ShortName,
 	tests.HTTPRouteInvalidCrossNamespaceParentRef.ShortName,
-	tests.HTTPRouteInvalidNonExistentBackendRef.ShortName,
 	tests.HTTPRouteInvalidParentRefNotMatchingSectionName.ShortName,
 }