diff --git a/ocs_ci/deployment/helpers/hypershift_base.py b/ocs_ci/deployment/helpers/hypershift_base.py
index df042be1f448..cbd179880d5b 100644
--- a/ocs_ci/deployment/helpers/hypershift_base.py
+++ b/ocs_ci/deployment/helpers/hypershift_base.py
@@ -18,6 +18,7 @@
 from ocs_ci.ocs.exceptions import (
     CommandFailed,
     TimeoutExpiredError,
+    ClusterNotFoundException,
 )
 from ocs_ci.ocs.ocp import OCP
 from ocs_ci.ocs.resources.pod import wait_for_pods_to_be_in_statuses_concurrently
@@ -242,7 +243,10 @@ def is_hosted_cluster(cluster_name=None):
 
     cluster_name = cluster_name or config.ENV_DATA["cluster_name"]
     config.switch_ctx(config.get_cluster_index_by_name(cluster_name))
-    config.switch_to_provider()
+    try:
+        config.switch_to_provider()
+    except ClusterNotFoundException:
+        return False
     ocp_obj = OCP(
         kind=constants.HOSTED_CLUSTERS, namespace=constants.CLUSTERS_NAMESPACE
     )
@@ -1141,8 +1145,9 @@ def apply_idms_to_hosted_cluster(self, name, idms_json_dict=None, replace=False)
 
         Args:
             name (str): HostedCluster name (namespace is clusters-<name> but resource lives in clusters namespace)
-            idms_json_dict (dict|None): If provided, use this pre-fetched dict
-                (output of 'oc get imagedigestmirrorsets -o json').
+            idms_json_dict (dict|None): If provided, use this pre-fetched dict. Can be either:
+                - Output of 'oc get imagedigestmirrorsets -o json' (list with "items")
+                - A single ImageDigestMirrorSet resource dict (without "items" wrapper)
                 If None, it will be fetched automatically.
             replace (bool): If True, replace any existing spec.imageContentSources with the new list.
                             If False, merge (append new unique entries after existing ones).
diff --git a/ocs_ci/deployment/helpers/idms_parser.py b/ocs_ci/deployment/helpers/idms_parser.py
index c58d2d574775..0588bf830356 100644
--- a/ocs_ci/deployment/helpers/idms_parser.py
+++ b/ocs_ci/deployment/helpers/idms_parser.py
@@ -146,13 +146,24 @@ def extract_image_content_sources(idms_json_dict):
     Extract imageContentSources list (for HostedCluster spec) from ImageDigestMirrorSet JSON.
 
     Args:
-        idms_json_dict (dict): Output of 'oc get imagedigestmirrorsets -o json' parsed as dict
+        idms_json_dict (dict): Either:
+            - Output of 'oc get imagedigestmirrorsets -o json' parsed as dict (with "items" list)
+            - A single ImageDigestMirrorSet resource dict (without "items" wrapper)
 
     Returns:
         list[dict]: imageContentSources entries (possibly empty)
     """
-    if not idms_json_dict or not idms_json_dict.get("items"):
+    if not idms_json_dict:
         return []
+
+    # Check if this is a single IDMS resource or a list with "items"
+    if idms_json_dict.get("kind") == "ImageDigestMirrorSet":
+        # Single IDMS resource - wrap it in the expected format
+        idms_json_dict = {"apiVersion": "v1", "kind": "List", "items": [idms_json_dict]}
+    elif not idms_json_dict.get("items"):
+        # No items and not a single IDMS resource
+        return []
+
     idms_obj = parse_image_digest_mirror_set(idms_json_dict)
     image_content_sources = []
     for item in idms_obj.items:
diff --git a/ocs_ci/utility/operators.py b/ocs_ci/utility/operators.py
index 35bdd44fce6e..e5c0350c8110 100644
--- a/ocs_ci/utility/operators.py
+++ b/ocs_ci/utility/operators.py
@@ -171,7 +171,6 @@ def _create_catalog(self, image: str, name: str):
         with open(catalog_data_yaml.name, "w") as fd:
             fd.write(yaml.dump(catalog_data))
         run_cmd(f"oc apply -f {catalog_data_yaml.name}")
-        wait_for_machineconfigpool_status("all", force_delete_pods=False)
 
     def create_unreleased_catalog(self):
         """
@@ -181,10 +180,30 @@ def create_unreleased_catalog(self):
             raise ValueError(
                 "Child class must define attribute `unreleased_catalog_image`"
             )
-        self.create_idms_for_unreleased_catalog()
+        cluster_name = config.ENV_DATA.get("cluster_name")
+        # Import here to avoid circular import
+        from ocs_ci.deployment.helpers.hypershift_base import (
+            HyperShiftBase,
+            is_hosted_cluster,
+        )
+
+        is_hosted = is_hosted_cluster(cluster_name)
+        if is_hosted:
+            with config.RunWithProviderConfigContextIfAvailable():
+                idms_data = self.get_idms_data()
+                hypershift_base = HyperShiftBase()
+
+                # Apply IDMS mirrors to the hosted cluster's imageContentSources
+                hypershift_base.apply_idms_to_hosted_cluster(
+                    name=cluster_name, idms_json_dict=idms_data, replace=False
+                )
+        else:
+            self.create_idms_for_unreleased_catalog()
         self._create_catalog(
             self.unreleased_catalog_full_image, self.unreleased_catalog_name
         )
+        if not is_hosted:
+            wait_for_machineconfigpool_status("all", force_delete_pods=False)
 
     def create_disconnected_catalog(self):
         # in case of disconnected environment, we have to mirror all the
@@ -201,6 +220,11 @@ def create_disconnected_catalog(self):
             idms=idms,
         )
         self._create_catalog(mirrored_index_image, self.unreleased_catalog_name)
+        # Import here to avoid circular import
+        from ocs_ci.deployment.helpers.hypershift_base import is_hosted_cluster
+
+        if not is_hosted_cluster(config.ENV_DATA.get("cluster_name")):
+            wait_for_machineconfigpool_status("all", force_delete_pods=False)
 
     @retry(CommandFailed, tries=5, delay=30, backoff=1)
     def is_available(self):