diff --git a/api/core/v1alpha2/vmcondition/condition.go b/api/core/v1alpha2/vmcondition/condition.go
index 6abfecbe0c..2320fd5da9 100644
--- a/api/core/v1alpha2/vmcondition/condition.go
+++ b/api/core/v1alpha2/vmcondition/condition.go
@@ -165,8 +165,10 @@ func (r RunningReason) String() string {
 }
 
 const (
-	ReasonVirtualMachineNotRunning    RunningReason = "NotRunning"
-	ReasonVirtualMachineRunning       RunningReason = "Running"
+	ReasonVirtualMachineNotRunning RunningReason = "NotRunning"
+	ReasonVirtualMachineRunning    RunningReason = "Running"
+	// ReasonNoBootableDeviceFound indicates that a virtual machine is running but no bootable device for an operating system was found.
+	ReasonNoBootableDeviceFound       RunningReason = "NoBootableDevice"
 	ReasonInternalVirtualMachineError RunningReason = "InternalVirtualMachineError"
 	ReasonPodNotStarted               RunningReason = "PodNotStarted"
 	ReasonPodTerminating              RunningReason = "PodTerminating"
diff --git a/build/components/versions.yml b/build/components/versions.yml
index 7f016066e7..f79008f9d2 100644
--- a/build/components/versions.yml
+++ b/build/components/versions.yml
@@ -3,7 +3,7 @@ firmware:
   libvirt: v10.9.0
   edk2: stable202411
 core:
-  3p-kubevirt: v1.6.2-v12n.36
+  3p-kubevirt: v1.6.2-v12n.37
   3p-containerized-data-importer: v1.60.3-v12n.19
   distribution: 2.8.3
 package:
diff --git a/images/virtualization-artifact/pkg/controller/vm/internal/lifecycle.go b/images/virtualization-artifact/pkg/controller/vm/internal/lifecycle.go
index 370a26d909..bcd0e1ebcf 100644
--- a/images/virtualization-artifact/pkg/controller/vm/internal/lifecycle.go
+++ b/images/virtualization-artifact/pkg/controller/vm/internal/lifecycle.go
@@ -208,6 +208,17 @@ func (h *LifeCycleHandler) syncRunning(ctx context.Context, vm *v1alpha2.Virtual
 
 		if vm.Status.Phase == v1alpha2.MachineRunning {
 			cb.Reason(vmcondition.ReasonVirtualMachineRunning).Status(metav1.ConditionTrue)
+
+			for _, c := range kvvmi.Status.Conditions {
+				if c.Type == "BootFailed" {
+					cb.Status(conditionStatus(string(c.Status))).
+						Reason(vmcondition.ReasonNoBootableDeviceFound).
+						Message(fmt.Sprintf("Among all the virtual machine’s block devices, there is no device from which it can boot. Check OS image is compatible with the chosen bootloader %q.", vm.Spec.Bootloader))
+					conditions.SetCondition(cb, &vm.Status.Conditions)
+					return nil
+				}
+			}
+
 			conditions.SetCondition(cb, &vm.Status.Conditions)
 			return nil
 		}
diff --git a/test/e2e/vm/no_bootable_device.go b/test/e2e/vm/no_bootable_device.go
new file mode 100644
index 0000000000..b35403bce4
--- /dev/null
+++ b/test/e2e/vm/no_bootable_device.go
@@ -0,0 +1,81 @@
+/*
+Copyright 2026 Flant JSC
+
+Licensed under the Apache License, Version 2.0 (the "License");
+you may not use this file except in compliance with the License.
+You may obtain a copy of the License at
+
+     http://www.apache.org/licenses/LICENSE-2.0
+
+Unless required by applicable law or agreed to in writing, software
+distributed under the License is distributed on an "AS IS" BASIS,
+WITHOUT WARRANTIES OR CONDITIONS OF ANY KIND, either express or implied.
+See the License for the specific language governing permissions and
+limitations under the License.
+*/
+
+package vm
+
+import (
+	"context"
+
+	. "github.com/onsi/ginkgo/v2"
+	. "github.com/onsi/gomega"
+	"k8s.io/apimachinery/pkg/api/resource"
+	metav1 "k8s.io/apimachinery/pkg/apis/meta/v1"
+	"k8s.io/utils/ptr"
+	crclient "sigs.k8s.io/controller-runtime/pkg/client"
+
+	vmbuilder "github.com/deckhouse/virtualization-controller/pkg/builder/vm"
+	"github.com/deckhouse/virtualization-controller/pkg/controller/conditions"
+	"github.com/deckhouse/virtualization/api/core/v1alpha2"
+	"github.com/deckhouse/virtualization/api/core/v1alpha2/vmcondition"
+	"github.com/deckhouse/virtualization/test/e2e/internal/framework"
+	"github.com/deckhouse/virtualization/test/e2e/internal/object"
+	"github.com/deckhouse/virtualization/test/e2e/internal/precheck"
+	"github.com/deckhouse/virtualization/test/e2e/internal/util"
+)
+
+var _ = Describe("VirtualMachineNoBootableDevice", Label(precheck.NoPrecheck), func() {
+	var (
+		f   *framework.Framework
+		ctx context.Context
+	)
+
+	BeforeEach(func() {
+		ctx = context.Background()
+		f = framework.NewFramework("vm-no-bootable-device")
+		DeferCleanup(f.After)
+		f.Before()
+	})
+
+	It("sets Running condition reason to NoBootableDevice", func() {
+		By("Generating a blank disk and virtual machine with no bootable devices")
+		vdBlank := object.NewBlankVD("vd-blank", f.Namespace().Name, nil, ptr.To(resource.MustParse("100Mi")))
+
+		vm := object.NewMinimalVM("vm-", f.Namespace().Name,
+			vmbuilder.WithBlockDeviceRefs(v1alpha2.BlockDeviceSpecRef{
+				Kind: v1alpha2.DiskDevice,
+				Name: vdBlank.Name,
+			}),
+		)
+
+		By("Creating resources")
+		err := f.CreateWithDeferredDeletion(ctx, vdBlank, vm)
+		Expect(err).NotTo(HaveOccurred())
+
+		By("Waiting for virtual machine to be Running")
+		util.UntilObjectPhase(ctx, string(v1alpha2.MachineRunning), framework.LongTimeout, vm)
+
+		By("Checking Running condition reason indicates no bootable device")
+		Eventually(func(g Gomega) {
+			err = f.GenericClient().Get(ctx, crclient.ObjectKeyFromObject(vm), vm)
+			g.Expect(err).NotTo(HaveOccurred())
+
+			runningCondition, found := conditions.GetCondition(vmcondition.TypeRunning, vm.Status.Conditions)
+			g.Expect(found).To(BeTrue())
+			g.Expect(runningCondition.Reason).To(Equal(vmcondition.ReasonNoBootableDeviceFound.String()))
+			g.Expect(runningCondition.Status).To(Equal(metav1.ConditionTrue))
+		}).WithTimeout(framework.LongTimeout).WithPolling(framework.PollingInterval).Should(Succeed())
+	})
+})