diff --git a/components/odh-notebook-controller/controllers/notebook_controller_test.go b/components/odh-notebook-controller/controllers/notebook_controller_test.go
index 68e503d6d30..60c6483fe22 100644
--- a/components/odh-notebook-controller/controllers/notebook_controller_test.go
+++ b/components/odh-notebook-controller/controllers/notebook_controller_test.go
@@ -857,7 +857,7 @@ func createOAuthContainer(name, namespace string) corev1.Container {
 	return corev1.Container{
 		Name:            "oauth-proxy",
 		Image:           OAuthProxyImage,
-		ImagePullPolicy: corev1.PullAlways,
+		ImagePullPolicy: corev1.PullIfNotPresent,
 		Env: []corev1.EnvVar{{
 			Name: "NAMESPACE",
 			ValueFrom: &corev1.EnvVarSource{
diff --git a/components/odh-notebook-controller/controllers/notebook_oauth.go b/components/odh-notebook-controller/controllers/notebook_oauth.go
index e67b7683dd3..886c838e159 100644
--- a/components/odh-notebook-controller/controllers/notebook_oauth.go
+++ b/components/odh-notebook-controller/controllers/notebook_oauth.go
@@ -35,7 +35,10 @@ import (
 const (
 	OAuthServicePort     = 443
 	OAuthServicePortName = "oauth-proxy"
-	OAuthProxyImage      = "registry.redhat.io/openshift4/ose-oauth-proxy:latest"
+	// OAuthProxyImage uses sha256 manifest list digest value of v4.10 image for AMD64 as default to be compatible with imagePullPolicy: IfNotPresent, overridable
+	// taken from https://catalog.redhat.com/software/containers/openshift4/ose-oauth-proxy/5cdb2133bed8bd5717d5ae64?tag=v4.10.0-202306170106.p0.g799d414.assembly.stream&push_date=1688610772000&gti-tabs=get-the-source&container-tabs=gti
+	// and kept in sync with the manifests here and in ClusterServiceVersion metadata of opendatahub operator
+	OAuthProxyImage = "registry.redhat.io/openshift4/ose-oauth-proxy@sha256:ab112105ac37352a2a4916a39d6736f5db6ab4c29bad4467de8d613e80e9bb33"
 )
 
 type OAuthConfig struct {
diff --git a/components/odh-notebook-controller/controllers/notebook_webhook.go b/components/odh-notebook-controller/controllers/notebook_webhook.go
index 85342ee0e4b..13204f26a5e 100644
--- a/components/odh-notebook-controller/controllers/notebook_webhook.go
+++ b/components/odh-notebook-controller/controllers/notebook_webhook.go
@@ -75,7 +75,7 @@ func InjectOAuthProxy(notebook *nbv1.Notebook, oauth OAuthConfig) error {
 	proxyContainer := corev1.Container{
 		Name:            "oauth-proxy",
 		Image:           oauth.ProxyImage,
-		ImagePullPolicy: corev1.PullAlways,
+		ImagePullPolicy: corev1.PullIfNotPresent,
 		Env: []corev1.EnvVar{{
 			Name: "NAMESPACE",
 			ValueFrom: &corev1.EnvVarSource{