diff --git a/src/registrar/models/domain.py b/src/registrar/models/domain.py
index 94430fb36..53ea302eb 100644
--- a/src/registrar/models/domain.py
+++ b/src/registrar/models/domain.py
@@ -1194,7 +1194,7 @@ class Domain(TimeStampedModel, DomainHelper):
                     logger.error(e)
                     logger.error(e.code)
                     raise e
-                if e.code == ErrorCode.OBJECT_DOES_NOT_EXIST and self.state != Domain.State.DELETED:
+                if e.code == ErrorCode.OBJECT_DOES_NOT_EXIST and self.state == Domain.State.UNKNOWN:
                     # avoid infinite loop
                     already_tried_to_create = True
                     self.dns_needed_from_unknown()