diff --git a/ee/lib/remote_development/workspaces/create/devfile_flattener.rb b/ee/lib/remote_development/workspaces/create/devfile_flattener.rb
index 4315ba43a56d5cb82438ea1c7a3f4bc0765a4b46..1383c8f4f4ffe4265e2677051563c360658d7cb7 100644
--- a/ee/lib/remote_development/workspaces/create/devfile_flattener.rb
+++ b/ee/lib/remote_development/workspaces/create/devfile_flattener.rb
@@ -11,9 +11,11 @@ class DevfileFlattener
         def self.flatten(value)
           value => { devfile_yaml: String => devfile_yaml }
 
-          # NOTE: We do not attempt to rescue any exceptions from Devfile::Parser.flatten here because we assume that
-          #       the input devfile_yaml has already been fully validated by the pre-flatten devfile validator.
-          flattened_devfile_yaml = Devfile::Parser.flatten(devfile_yaml)
+          begin
+            flattened_devfile_yaml = Devfile::Parser.flatten(devfile_yaml)
+          rescue Devfile::CliError => e
+            return Result.err(WorkspaceCreateDevfileFlattenFailed.new(details: e.message))
+          end
 
           # NOTE: We do not attempt to rescue any exceptions from YAML.safe_load here because we assume that the
           #       Devfile::Parser gem will not produce invalid YAML. We own the gem, and will fix and add any regression
@@ -23,7 +25,7 @@ def self.flatten(value)
 
           processed_devfile['components'] ||= []
 
-          value.merge(processed_devfile: processed_devfile)
+          Result.ok(value.merge(processed_devfile: processed_devfile))
         end
       end
     end
diff --git a/ee/lib/remote_development/workspaces/create/main.rb b/ee/lib/remote_development/workspaces/create/main.rb
index 71afb6f908c6b45e01567a002911e188e46b26df..75e9c4c9ee90142528ea5e10886878175e857738 100644
--- a/ee/lib/remote_development/workspaces/create/main.rb
+++ b/ee/lib/remote_development/workspaces/create/main.rb
@@ -20,7 +20,7 @@ def self.main(value)
               .and_then(Authorizer.method(:authorize))
               .and_then(DevfileFetcher.method(:fetch))
               .and_then(PreFlattenDevfileValidator.method(:validate))
-              .map(DevfileFlattener.method(:flatten))
+              .and_then(DevfileFlattener.method(:flatten))
               .and_then(PostFlattenDevfileValidator.method(:validate))
               .map(VolumeDefiner.method(:define))
               .map(VolumeComponentInjector.method(:inject))
diff --git a/ee/lib/remote_development/workspaces/reconcile/desired_config_generator.rb b/ee/lib/remote_development/workspaces/reconcile/desired_config_generator.rb
index 5a1883d3a2d3566920471808e3fc718e61ec1c8d..1db8815d328f4711e53d847135f2ea10c3422faa 100644
--- a/ee/lib/remote_development/workspaces/reconcile/desired_config_generator.rb
+++ b/ee/lib/remote_development/workspaces/reconcile/desired_config_generator.rb
@@ -4,7 +4,9 @@ module RemoteDevelopment
   module Workspaces
     module Reconcile
       # noinspection RubyResolve - https://handbook.gitlab.com/handbook/tools-and-tips/editors-and-ides/jetbrains-ides/tracked-jetbrains-issues/#ruby-31542
-      # noinspection RubyInstanceMethodNamingConvention - See https://handbook.gitlab.com/handbook/tools-and-tips/editors-and-ides/jetbrains-ides/code-inspection/why-are-there-noinspection-comments/
+      # rubocop:disable Layout/LineLength
+      # noinspection RubyInstanceMethodNamingConvention,RubyLocalVariableNamingConvention,RubyParameterNamingConvention - See https://handbook.gitlab.com/handbook/tools-and-tips/editors-and-ides/jetbrains-ides/code-inspection/why-are-there-noinspection-comments/
+      # rubocop:enable Layout/LineLength
       class DesiredConfigGenerator
         include States
 
@@ -40,6 +42,12 @@ def generate_desired_config(workspace:)
             annotations: annotations,
             user: user
           )
+          # If we got no resources back from the devfile parser, this indicates some error was encountered in parsing
+          # the processed_devfile. So we return an empty array which will result in no updates being applied by the
+          # agent. We should not continue on and try to add anything else to the resources, as this would result
+          # in an invalid configuration being applied to the cluster.
+          return [] if workspace_resources.empty?
+
           workspace_resources.insert(0, workspace_inventory_config_map)
 
           remote_development_agent_config = workspace.agent.remote_development_agent_config
diff --git a/ee/lib/remote_development/workspaces/reconcile/devfile_parser.rb b/ee/lib/remote_development/workspaces/reconcile/devfile_parser.rb
index 0ad8b87678ad980da08bb2949b9d845523fb437c..7c30bcd3f2e8d33d0d055c638aa7a40cfb58282f 100644
--- a/ee/lib/remote_development/workspaces/reconcile/devfile_parser.rb
+++ b/ee/lib/remote_development/workspaces/reconcile/devfile_parser.rb
@@ -17,16 +17,28 @@ class DevfileParser
         # @param [User] user
         # @return [Array<Hash>]
         def get_all(processed_devfile:, name:, namespace:, replicas:, domain_template:, labels:, annotations:, user:)
-          workspace_resources_yaml = Devfile::Parser.get_all(
-            processed_devfile,
-            name,
-            namespace,
-            YAML.dump(labels.deep_stringify_keys),
-            YAML.dump(annotations.deep_stringify_keys),
-            replicas,
-            domain_template,
-            'none'
-          )
+          begin
+            workspace_resources_yaml = Devfile::Parser.get_all(
+              processed_devfile,
+              name,
+              namespace,
+              YAML.dump(labels.deep_stringify_keys),
+              YAML.dump(annotations.deep_stringify_keys),
+              replicas,
+              domain_template,
+              'none'
+            )
+          rescue Devfile::CliError => e
+            logger.warn(
+              message: 'Error parsing devfile with Devfile::Parser.get_all',
+              error_type: 'reconcile_devfile_parser_error',
+              workspace_name: name,
+              workspace_namespace: namespace,
+              devfile_parser_error: e.message
+            )
+            return []
+          end
+
           workspace_resources = YAML.load_stream(workspace_resources_yaml)
           workspace_resources = set_security_context(workspace_resources: workspace_resources)
           workspace_resources = set_git_configuration(workspace_resources: workspace_resources, user: user)
@@ -38,6 +50,11 @@ def get_all(processed_devfile:, name:, namespace:, replicas:, domain_template:,
 
         private
 
+        # @return [RemoteDevelopment::Logger]
+        def logger
+          @logger ||= RemoteDevelopment::Logger.build
+        end
+
         # Devfile library allows specifying the security context of pods/containers as mentioned in
         # https://github.com/devfile/api/issues/920 through `pod-overrides` and `container-overrides` attributes.
         # However, https://github.com/devfile/library/pull/158 which is implementing this feature,
diff --git a/ee/spec/fixtures/remote_development/example.invalid-extra-field-devfile.yaml b/ee/spec/fixtures/remote_development/example.invalid-extra-field-devfile.yaml
new file mode 100644
index 0000000000000000000000000000000000000000..a352ee627d86b1b40514e5fba4d33eb0c3ec32fe
--- /dev/null
+++ b/ee/spec/fixtures/remote_development/example.invalid-extra-field-devfile.yaml
@@ -0,0 +1,14 @@
+random: field
+schemaVersion: 2.1.0
+metadata:
+  name: go
+  language: go
+components:
+- name: runtime
+  container:
+    endpoints:
+      - name: http
+        targetPort: 8080
+    image: quay.io/devfile/golang:latest
+    memoryLimit: 1024Mi
+    mountSources: true
diff --git a/ee/spec/lib/remote_development/fast_spec_helper.rb b/ee/spec/lib/remote_development/fast_spec_helper.rb
index 24987e1cdca8f807958b3b797bacc005ef99324a..040f4bfedb753832afe06e498e74f6a3fe1cfbb5 100644
--- a/ee/spec/lib/remote_development/fast_spec_helper.rb
+++ b/ee/spec/lib/remote_development/fast_spec_helper.rb
@@ -22,6 +22,7 @@
 
 require 'rspec-parameterized'
 require 'json_schemer'
+require 'devfile'
 
 RSpec.configure do |config|
   config.include NextInstanceOf
diff --git a/ee/spec/lib/remote_development/workspaces/create/devfile_flattener_spec.rb b/ee/spec/lib/remote_development/workspaces/create/devfile_flattener_spec.rb
index 0b618dc0fed0cfa0dcde0c108016fc306432ce0f..1f984317964cd380699995015e452e637fb0072e 100644
--- a/ee/spec/lib/remote_development/workspaces/create/devfile_flattener_spec.rb
+++ b/ee/spec/lib/remote_development/workspaces/create/devfile_flattener_spec.rb
@@ -1,6 +1,6 @@
 # frozen_string_literal: true
 
-require "spec_helper"
+require_relative "../../fast_spec_helper"
 
 RSpec.describe RemoteDevelopment::Workspaces::Create::DevfileFlattener, feature_category: :remote_development do
   include_context 'with remote development shared fixtures'
@@ -15,10 +15,12 @@
 
   it "merges flattened devfile to passed value" do
     expect(subject).to eq(
-      {
-        devfile_yaml: devfile_yaml,
-        processed_devfile: expected_processed_devfile
-      }
+      Result.ok(
+        {
+          devfile_yaml: devfile_yaml,
+          processed_devfile: expected_processed_devfile
+        }
+      )
     )
   end
 
@@ -29,7 +31,27 @@
     end
 
     it "adds an empty components entry" do
-      expect(subject.fetch(:processed_devfile)).to eq(expected_processed_devfile)
+      expect(subject).to eq(
+        Result.ok(
+          {
+            devfile_yaml: devfile_yaml,
+            processed_devfile: expected_processed_devfile
+          }
+        )
+      )
+    end
+  end
+
+  context "when flatten raises a Devfile::CliError" do
+    let(:devfile_yaml) { read_devfile('example.invalid-extra-field-devfile.yaml') }
+
+    it "returns the error message from the CLI" do
+      expected_error_message =
+        "failed to populateAndParseDevfile: invalid devfile schema. errors :\n" \
+        "- (root): Additional property random is not allowed\n"
+      message = subject.unwrap_err
+      expect(message).to be_a(RemoteDevelopment::Messages::WorkspaceCreateDevfileFlattenFailed)
+      expect(message.context).to eq(details: expected_error_message)
     end
   end
 end
diff --git a/ee/spec/lib/remote_development/workspaces/create/main_spec.rb b/ee/spec/lib/remote_development/workspaces/create/main_spec.rb
index 4a9a121994175077f07efd5e0ac1e422056e7927..58bf97b476c6e0cce37c5103783b2f0f1b4c295e 100644
--- a/ee/spec/lib/remote_development/workspaces/create/main_spec.rb
+++ b/ee/spec/lib/remote_development/workspaces/create/main_spec.rb
@@ -134,11 +134,10 @@
       stub_methods_to_return_ok_result(
         authorizer_method,
         devfile_fetcher_method,
-        pre_flatten_devfile_validator_method
-      )
-      stub_methods_to_return_value(
+        pre_flatten_devfile_validator_method,
         devfile_flattener_method
       )
+
       stub_methods_to_return_err_result(
         method: post_flatten_devfile_validator_method,
         message_class: RemoteDevelopment::Messages::WorkspaceCreatePostFlattenDevfileValidationFailed
@@ -167,7 +166,6 @@
         post_flatten_devfile_validator_method
       )
       stub_methods_to_return_value(
-        devfile_flattener_method,
         volume_definer_method,
         volume_component_injector_method,
         editor_component_injector_method,
@@ -203,7 +201,6 @@
         post_flatten_devfile_validator_method
       )
       stub_methods_to_return_value(
-        devfile_flattener_method,
         volume_definer_method,
         volume_component_injector_method,
         editor_component_injector_method,
@@ -234,7 +231,6 @@
         post_flatten_devfile_validator_method
       )
       stub_methods_to_return_value(
-        devfile_flattener_method,
         volume_definer_method,
         volume_component_injector_method,
         editor_component_injector_method,
diff --git a/ee/spec/lib/remote_development/workspaces/reconcile/desired_config_generator_spec.rb b/ee/spec/lib/remote_development/workspaces/reconcile/desired_config_generator_spec.rb
index 25503d1c6251a5053446e0a433a0d09ca068e1f4..a5aaadf998b406b597b477a73af28da3a2f9d71b 100644
--- a/ee/spec/lib/remote_development/workspaces/reconcile/desired_config_generator_spec.rb
+++ b/ee/spec/lib/remote_development/workspaces/reconcile/desired_config_generator_spec.rb
@@ -78,5 +78,19 @@
         expect(workspace_resources).to eq(expected_config)
       end
     end
+
+    context 'when DevfileParser returns empty array' do
+      before do
+        allow_next_instance_of(RemoteDevelopment::Workspaces::Reconcile::DevfileParser) do |instance|
+          allow(instance).to receive(:get_all).and_return([])
+        end
+      end
+
+      it 'returns an empty array' do
+        workspace_resources = subject.generate_desired_config(workspace: workspace)
+
+        expect(workspace_resources).to eq([])
+      end
+    end
   end
 end
diff --git a/ee/spec/lib/remote_development/workspaces/reconcile/devfile_parser_spec.rb b/ee/spec/lib/remote_development/workspaces/reconcile/devfile_parser_spec.rb
index d5fbb521d0a12edd2ebaaf14cecaa842ae340a62..bae91592013125d1d298cc98db6a14d9b815b833 100644
--- a/ee/spec/lib/remote_development/workspaces/reconcile/devfile_parser_spec.rb
+++ b/ee/spec/lib/remote_development/workspaces/reconcile/devfile_parser_spec.rb
@@ -53,4 +53,36 @@
       expect(workspace_resources).to eq(expected_workspace_resources)
     end
   end
+
+  context "when Devfile::CliError is raised" do
+    let(:logger) { instance_double(RemoteDevelopment::Logger) }
+
+    before do
+      allow(Devfile::Parser).to receive(:get_all).and_raise(Devfile::CliError.new("some error"))
+      allow(RemoteDevelopment::Logger).to receive(:build) { logger }
+    end
+
+    it "logs the error" do
+      expect(logger).to receive(:warn).with(
+        message: 'Error parsing devfile with Devfile::Parser.get_all',
+        error_type: 'reconcile_devfile_parser_error',
+        workspace_name: workspace.name,
+        workspace_namespace: workspace.namespace,
+        devfile_parser_error: "some error"
+      )
+
+      workspace_resources = subject.get_all(
+        processed_devfile: "",
+        name: workspace.name,
+        namespace: workspace.namespace,
+        replicas: 1,
+        domain_template: "",
+        labels: {},
+        annotations: {},
+        user: user
+      )
+
+      expect(workspace_resources).to eq([])
+    end
+  end
 end
diff --git a/ee/spec/lib/remote_development/workspaces/reconcile/reconcile_processor_spec.rb b/ee/spec/lib/remote_development/workspaces/reconcile/reconcile_processor_spec.rb
index ccfc612f7136036c4c168b5cd7d134d491d464b9..0d794ee567c020c0058077487360dba0c68870f2 100644
--- a/ee/spec/lib/remote_development/workspaces/reconcile/reconcile_processor_spec.rb
+++ b/ee/spec/lib/remote_development/workspaces/reconcile/reconcile_processor_spec.rb
@@ -170,6 +170,7 @@
               .to eq(expected_deployment_resource_version)
 
             # test the config to apply first to get a more specific diff if it fails
+            # noinspection RubyLocalVariableNamingConvention - See https://handbook.gitlab.com/handbook/tools-and-tips/editors-and-ides/jetbrains-ides/code-inspection/why-are-there-noinspection-comments/
             provisioned_workspace_rails_info =
               workspace_rails_infos.detect { |info| info.fetch(:name) == workspace.name }
             # Since the workspace is now in Error state, the config should not be returned to the agent
@@ -180,6 +181,75 @@
           end
         end
 
+        context 'when only some workspaces fail in devfile flattener' do
+          let(:workspace) { create(:workspace, name: "workspace1", agent: agent, user: user) }
+          let(:invalid_devfile_yaml) { read_devfile('example.invalid-extra-field-devfile.yaml') }
+          let(:workspace2) do
+            create(:workspace, devfile: invalid_devfile_yaml, name: "workspace-failing-flatten",
+              agent: agent, user: user)
+          end
+
+          let(:workspace2_agent_info) do
+            create_workspace_agent_info(
+              workspace_id: workspace2.id,
+              workspace_name: workspace2.name,
+              workspace_namespace: workspace2.namespace,
+              agent_id: workspace2.agent.id,
+              owning_inventory: owning_inventory,
+              resource_version: deployment_resource_version_from_agent,
+              previous_actual_state: previous_actual_state,
+              current_actual_state: current_actual_state,
+              workspace_exists: workspace_exists,
+              user_name: user.name,
+              user_email: user.email
+            )
+          end
+
+          # NOTE: Reverse the order so that the failing one is processed first and ensures that the second valid
+          #       one is still processed successfully.
+          let(:workspace_agent_infos) { [workspace2_agent_info, workspace_agent_info] }
+
+          let(:expected_workspace2_rails_info) do
+            {
+              name: workspace2.name,
+              namespace: workspace2.namespace,
+              desired_state: expected_desired_state,
+              actual_state: expected_actual_state,
+              deployment_resource_version: expected_deployment_resource_version,
+              config_to_apply: nil
+            }
+          end
+
+          let(:expected_workspace_rails_infos) { [expected_workspace2_rails_info, expected_workspace_rails_info] }
+
+          it 'returns proper workspace_rails_info entries' do
+            payload, error = subject.process(
+              agent: agent,
+              workspace_agent_infos: workspace_agent_infos,
+              update_type: update_type
+            )
+            expect(error).to be_nil
+            workspace_rails_infos = payload.fetch(:workspace_rails_infos)
+            expect(workspace_rails_infos.length).to eq(2)
+
+            workspace.reload
+            workspace2.reload
+
+            expect(workspace.deployment_resource_version)
+              .to eq(expected_deployment_resource_version)
+
+            expect(workspace2.deployment_resource_version)
+              .to eq(expected_deployment_resource_version)
+
+            workspace2_rails_info =
+              workspace_rails_infos.detect { |info| info.fetch(:name) == workspace2.name }
+            expect(workspace2_rails_info.fetch(:config_to_apply)).to be_nil
+
+            # then test everything in the infos
+            expect(workspace_rails_infos).to eq(expected_workspace_rails_infos)
+          end
+        end
+
         context 'with timestamp precondition checks' do
           # NOTE: rubocop:disable RSpec/ExpectInHook could be avoided with a helper method or custom expectation,
           #       but this works for now.