diff --git a/test/e2e-upgrade-tests.sh b/test/e2e-upgrade-tests.sh
index f2ea9599..ce36aef9 100755
--- a/test/e2e-upgrade-tests.sh
+++ b/test/e2e-upgrade-tests.sh
@@ -30,7 +30,7 @@ source $(dirname $0)/../vendor/knative.dev/test-infra/scripts/e2e-tests.sh
 
 # Latest eventing operator release.
 readonly LATEST_EVENTING_OPERATOR_RELEASE_VERSION=$(git tag | sort -V | tail -1)
-readonly LATEST_EVENTING_RELEASE_VERSION="v0.13.3"
+readonly LATEST_EVENTING_RELEASE_VERSION="v0.13.4"
 
 OPERATOR_DIR=$(dirname $0)/..
 KNATIVE_EVENTING_DIR=${OPERATOR_DIR}/..
@@ -61,13 +61,13 @@ function install_latest_operator_release() {
       || fail_test "Unable to download latest Knative Eventing Operator release."
 
   kubectl apply -f "${release_yaml}" || fail_test "Knative Eventing Operator latest release installation failed"
+  wait_until_pods_running default || fail_test "Eventing Operator did not come up"
   create_custom_resource
-  wait_until_pods_running ${TEST_NAMESPACE}
 }
 
 function create_custom_resource() {
   echo ">> Creating the custom resource of Knative Eventing:"
-  cat <<EOF | kubectl apply -f -
+  cat <<-EOF | kubectl apply -f -
 apiVersion: operator.knative.dev/v1alpha1
 kind: KnativeEventing
 metadata:
@@ -128,10 +128,16 @@ initialize $@ --skip-istio-addon
 
 TIMEOUT=20m
 
+header "Running preupgrade tests"
+go_test_e2e -tags=preupgrade -timeout=${TIMEOUT} ./test/upgrade || fail_test
+
+header "Listing all the pods of the previous release"
+wait_until_pods_running ${TEST_NAMESPACE}
+
 install_head
 
 # If we got this far, the operator installed Knative Eventing
-header "Running tests for Knative Eventing Operator"
+header "Running postupgrade tests for Knative Eventing Operator"
 failed=0
 
 # Run the postupgrade tests
diff --git a/test/resources/verify.go b/test/resources/verify.go
index 7fa4f248..f9736ca4 100644
--- a/test/resources/verify.go
+++ b/test/resources/verify.go
@@ -137,3 +137,29 @@ func verifyNoKnativeEventings(clients *test.Clients) error {
 	}
 	return nil
 }
+
+func KnativeEventingVerifyDeployment(t *testing.T, clients *test.Clients, names test.ResourceNames,
+	expectedDeployments []string) {
+	dpList, err := clients.KubeClient.Kube.AppsV1().Deployments(names.Namespace).List(metav1.ListOptions{})
+	assertEqual(t, err, nil)
+	assertEqual(t, len(dpList.Items), len(expectedDeployments))
+	for _, deployment := range dpList.Items {
+		assertEqual(t, stringInList(deployment.Name, expectedDeployments), true)
+	}
+}
+
+func assertEqual(t *testing.T, actual, expected interface{}) {
+	if actual == expected {
+		return
+	}
+	t.Fatalf("expected does not equal actual. \nExpected: %v\nActual: %v", expected, actual)
+}
+
+func stringInList(a string, list []string) bool {
+	for _, b := range list {
+		if b == a {
+			return true
+		}
+	}
+	return false
+}
diff --git a/test/upgrade/knativeeventingpreupgrade_test.go b/test/upgrade/knativeeventingpreupgrade_test.go
new file mode 100644
index 00000000..2cde636c
--- /dev/null
+++ b/test/upgrade/knativeeventingpreupgrade_test.go
@@ -0,0 +1,56 @@
+// +build preupgrade
+
+/*
+Copyright 2020 The Knative Authors
+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 e2e
+
+import (
+	"testing"
+
+	"knative.dev/eventing-operator/test"
+	"knative.dev/eventing-operator/test/client"
+	"knative.dev/eventing-operator/test/resources"
+	"knative.dev/pkg/test/logstream"
+)
+
+// TestKnativeEventingPreUpgrade verifies the KnativeEventing creation, before upgraded to the latest HEAD at master.
+func TestKnativeEventingPreUpgrade(t *testing.T) {
+	cancel := logstream.Start(t)
+	defer cancel()
+	clients := client.Setup(t)
+
+	names := test.ResourceNames{
+		KnativeEventing: test.EventingOperatorName,
+		Namespace:       test.EventingOperatorNamespace,
+	}
+
+	// Create a KnativeEventing
+	if _, err := resources.EnsureKnativeEventingExists(clients.KnativeEventing(), names); err != nil {
+		t.Fatalf("KnativeService %q failed to create: %v", names.KnativeEventing, err)
+	}
+
+	// Test if KnativeEventing can reach the READY status
+	t.Run("create", func(t *testing.T) {
+		resources.AssertKEOperatorCRReadyStatus(t, clients, names)
+	})
+
+	// Verify if resources match the requirement for the previous release before upgrade
+	t.Run("verify resources", func(t *testing.T) {
+		resources.AssertKEOperatorCRReadyStatus(t, clients, names)
+		expectedDeployments := []string{"eventing-controller", "eventing-webhook", "imc-controller",
+			"imc-dispatcher", "broker-controller", "sources-controller"}
+		resources.KnativeEventingVerifyDeployment(t, clients, names, expectedDeployments)
+	})
+
+}
diff --git a/test/upgrade/knativeeventingupgrade_test.go b/test/upgrade/knativeeventingupgrade_test.go
index 6f5bd376..cd4cf069 100644
--- a/test/upgrade/knativeeventingupgrade_test.go
+++ b/test/upgrade/knativeeventingupgrade_test.go
@@ -18,8 +18,6 @@ package e2e
 import (
 	"testing"
 
-	metav1 "k8s.io/apimachinery/pkg/apis/meta/v1"
-
 	"knative.dev/eventing-operator/test"
 	"knative.dev/eventing-operator/test/client"
 	"knative.dev/eventing-operator/test/resources"
@@ -56,8 +54,8 @@ func TestKnativeEventingUpgrade(t *testing.T) {
 		resources.AssertKEOperatorCRReadyStatus(t, clients, names)
 		// TODO: We only verify the deployment, but we need to add other resources as well, like ServiceAccount, ClusterRoleBinding, etc.
 		expectedDeployments := []string{"eventing-controller", "eventing-webhook", "imc-controller",
-			"imc-dispatcher", "broker-controller", "sources-controller"}
-		knativeEventingVerifyDeployment(t, clients, names, expectedDeployments)
+			"imc-dispatcher", "broker-controller"}
+		resources.KnativeEventingVerifyDeployment(t, clients, names, expectedDeployments)
 	})
 
 	// TODO: We will add one or sections here to run the tests tagged with postupgrade in knative evening.
@@ -68,30 +66,3 @@ func TestKnativeEventingUpgrade(t *testing.T) {
 		resources.KEOperatorCRDelete(t, clients, names)
 	})
 }
-
-// knativeEventingVerifyDeployment verify whether the deployments have the correct number and names.
-func knativeEventingVerifyDeployment(t *testing.T, clients *test.Clients, names test.ResourceNames,
-	expectedDeployments []string) {
-	dpList, err := clients.KubeClient.Kube.AppsV1().Deployments(names.Namespace).List(metav1.ListOptions{})
-	assertEqual(t, err, nil)
-	assertEqual(t, len(dpList.Items), len(expectedDeployments))
-	for _, deployment := range dpList.Items {
-		assertEqual(t, stringInList(deployment.Name, expectedDeployments), true)
-	}
-}
-
-func assertEqual(t *testing.T, actual, expected interface{}) {
-	if actual == expected {
-		return
-	}
-	t.Fatalf("expected does not equal actual. \nExpected: %v\nActual: %v", expected, actual)
-}
-
-func stringInList(a string, list []string) bool {
-	for _, b := range list {
-		if b == a {
-			return true
-		}
-	}
-	return false
-}