diff --git a/ee/lib/remote_development/workspace_operations/create/project_cloner_component_injector.rb b/ee/lib/remote_development/workspace_operations/create/project_cloner_component_injector.rb
index aba91a1c5146a91959576589f5e943a001d81ca6..1813da2d51d4097ef6ae2b5e8f6ebd22a3a636a5 100644
--- a/ee/lib/remote_development/workspace_operations/create/project_cloner_component_injector.rb
+++ b/ee/lib/remote_development/workspace_operations/create/project_cloner_component_injector.rb
@@ -24,6 +24,7 @@ def self.inject(context)
           settings => {
             project_cloner_image: String => image,
           }
+          project_cloning_successful_file = "#{volume_path}/.gl_project_cloning_successful"
 
           # TODO: https://gitlab.com/gitlab-org/gitlab/-/issues/408448
           #       replace the alpine/git docker image with one that is published by gitlab for security / reliability
@@ -31,17 +32,37 @@ def self.inject(context)
           clone_dir = "#{volume_path}/#{project.path}"
           project_url = project.http_url_to_repo
 
-          # The project is cloned only if one doesn't exist already.
-          # This done to avoid resetting user's modifications to the workspace.
-          # After cloning the project, set the user's git configuration - name and email.
-          # The name and email are read from environment variable because we do not want to
-          # store PII in the processed devfile in the database.
-          # The environment variables are injected into the gl-cloner-injector container component
-          # when the Kubernetes resources are generated.
+          # The project should be cloned only if one is not cloned successfully already.
+          # This is required to avoid resetting user's modifications to the files.
+          # This is achieved by checking for the existence of a file before cloning.
+          # If the file does not exist, clone the project.
+          # To accommodate for scenarios where the project cloning failed midway in the previous attempt,
+          # remove the directory before cloning.
+          # Once cloning is successful, create the file which is used in the check above.
+          # This will ensure the project is not cloned again on restarts.
           container_args = <<~SH.chomp
-            if [ ! -d '#{clone_dir}' ];
+            if [ -f "${GL_PROJECT_CLONING_SUCCESSFUL_FILE}" ];
             then
-              git clone --branch #{Shellwords.shellescape(devfile_ref)} #{Shellwords.shellescape(project_url)} #{Shellwords.shellescape(clone_dir)};
+              echo "Project cloning was already successful";
+              exit 0;
+            fi
+            if [ -d "#{Shellwords.shellescape(clone_dir)}" ];
+            then
+              echo "Removing unsuccessfully cloned project directory";
+              rm -rf "#{Shellwords.shellescape(clone_dir)}";
+            fi
+            echo "Cloning project";
+            git clone --branch "#{Shellwords.shellescape(devfile_ref)}" "#{Shellwords.shellescape(project_url)}" "#{Shellwords.shellescape(clone_dir)}";
+            exit_code=$?
+            if [ "${exit_code}" -eq 0 ];
+            then
+              echo "Project cloning successful";
+              touch "${GL_PROJECT_CLONING_SUCCESSFUL_FILE}";
+              echo "Updated file to indicate successful project cloning";
+              exit 0;
+            else
+              echo "Project cloning failed with exit code: ${exit_code}";
+              exit "${exit_code}";
             fi
           SH
 
@@ -56,6 +77,12 @@ def self.inject(context)
               # command has been overridden here as the default command in the alpine/git
               # container invokes git directly
               'command' => %w[/bin/sh -c],
+              'env' => [
+                {
+                  'name' => 'GL_PROJECT_CLONING_SUCCESSFUL_FILE',
+                  'value' => project_cloning_successful_file
+                }
+              ],
               'memoryLimit' => '512Mi',
               'memoryRequest' => '256Mi',
               'cpuLimit' => '500m',
diff --git a/ee/spec/fixtures/remote_development/example.processed-devfile-v2.yaml b/ee/spec/fixtures/remote_development/example.processed-devfile-v2.yaml
index aa811ef69bf13bc470471a8ffbebe5671c6cb520..2da26d74745943c2ff6053eab34679088680476c 100644
--- a/ee/spec/fixtures/remote_development/example.processed-devfile-v2.yaml
+++ b/ee/spec/fixtures/remote_development/example.processed-devfile-v2.yaml
@@ -76,11 +76,33 @@ components:
       volumeMounts:
         - name: gl-workspace-data
           path: "/projects"
+      env:
+        - name: GL_PROJECT_CLONING_SUCCESSFUL_FILE
+          value: "/projects/.gl_project_cloning_successful"
       args:
         - |-
-          if [ ! -d '/projects/test-project' ];
+          if [ -f "${GL_PROJECT_CLONING_SUCCESSFUL_FILE}" ];
+          then
+            echo "Project cloning was already successful";
+            exit 0;
+          fi
+          if [ -d "/projects/test-project" ];
           then
-            git clone --branch master http://localhost/test-group/test-project.git /projects/test-project;
+            echo "Removing unsuccessfully cloned project directory";
+            rm -rf "/projects/test-project";
+          fi
+          echo "Cloning project";
+          git clone --branch "master" "http://localhost/test-group/test-project.git" "/projects/test-project";
+          exit_code=$?
+          if [ "${exit_code}" -eq 0 ];
+          then
+            echo "Project cloning successful";
+            touch "${GL_PROJECT_CLONING_SUCCESSFUL_FILE}";
+            echo "Updated file to indicate successful project cloning";
+            exit 0;
+          else
+            echo "Project cloning failed with exit code: ${exit_code}";
+            exit "${exit_code}";
           fi
       command:
         - "/bin/sh"
diff --git a/ee/spec/fixtures/remote_development/example.processed-devfile.yaml b/ee/spec/fixtures/remote_development/example.processed-devfile.yaml
index aa811ef69bf13bc470471a8ffbebe5671c6cb520..2da26d74745943c2ff6053eab34679088680476c 100644
--- a/ee/spec/fixtures/remote_development/example.processed-devfile.yaml
+++ b/ee/spec/fixtures/remote_development/example.processed-devfile.yaml
@@ -76,11 +76,33 @@ components:
       volumeMounts:
         - name: gl-workspace-data
           path: "/projects"
+      env:
+        - name: GL_PROJECT_CLONING_SUCCESSFUL_FILE
+          value: "/projects/.gl_project_cloning_successful"
       args:
         - |-
-          if [ ! -d '/projects/test-project' ];
+          if [ -f "${GL_PROJECT_CLONING_SUCCESSFUL_FILE}" ];
+          then
+            echo "Project cloning was already successful";
+            exit 0;
+          fi
+          if [ -d "/projects/test-project" ];
           then
-            git clone --branch master http://localhost/test-group/test-project.git /projects/test-project;
+            echo "Removing unsuccessfully cloned project directory";
+            rm -rf "/projects/test-project";
+          fi
+          echo "Cloning project";
+          git clone --branch "master" "http://localhost/test-group/test-project.git" "/projects/test-project";
+          exit_code=$?
+          if [ "${exit_code}" -eq 0 ];
+          then
+            echo "Project cloning successful";
+            touch "${GL_PROJECT_CLONING_SUCCESSFUL_FILE}";
+            echo "Updated file to indicate successful project cloning";
+            exit 0;
+          else
+            echo "Project cloning failed with exit code: ${exit_code}";
+            exit "${exit_code}";
           fi
       command:
         - "/bin/sh"
diff --git a/ee/spec/fixtures/remote_development/example.processed-marketplace-disabled-devfile.yaml b/ee/spec/fixtures/remote_development/example.processed-marketplace-disabled-devfile.yaml
index f2a45bcab47522e794406744ac92193c6d9dd8eb..4c4fe5f155207431227547c1984a4d356a524d1d 100644
--- a/ee/spec/fixtures/remote_development/example.processed-marketplace-disabled-devfile.yaml
+++ b/ee/spec/fixtures/remote_development/example.processed-marketplace-disabled-devfile.yaml
@@ -68,11 +68,33 @@ components:
       volumeMounts:
         - name: gl-workspace-data
           path: "/projects"
+      env:
+        - name: GL_PROJECT_CLONING_SUCCESSFUL_FILE
+          value: "/projects/.gl_project_cloning_successful"
       args:
         - |-
-          if [ ! -d '/projects/test-project' ];
+          if [ -f "${GL_PROJECT_CLONING_SUCCESSFUL_FILE}" ];
+          then
+            echo "Project cloning was already successful";
+            exit 0;
+          fi
+          if [ -d "/projects/test-project" ];
           then
-            git clone --branch master http://localhost/test-group/test-project.git /projects/test-project;
+            echo "Removing unsuccessfully cloned project directory";
+            rm -rf "/projects/test-project";
+          fi
+          echo "Cloning project";
+          git clone --branch "master" "http://localhost/test-group/test-project.git" "/projects/test-project";
+          exit_code=$?
+          if [ "${exit_code}" -eq 0 ];
+          then
+            echo "Project cloning successful";
+            touch "${GL_PROJECT_CLONING_SUCCESSFUL_FILE}";
+            echo "Updated file to indicate successful project cloning";
+            exit 0;
+          else
+            echo "Project cloning failed with exit code: ${exit_code}";
+            exit "${exit_code}";
           fi
       command:
         - "/bin/sh"
diff --git a/ee/spec/fixtures/remote_development/example.project-cloner-injected-devfile.yaml b/ee/spec/fixtures/remote_development/example.project-cloner-injected-devfile.yaml
index 38f8945db24dcd7bfc17005713c4a98a42d67edb..5bc3995b2ea4a0c71f8419d3c977c1b83de61018 100644
--- a/ee/spec/fixtures/remote_development/example.project-cloner-injected-devfile.yaml
+++ b/ee/spec/fixtures/remote_development/example.project-cloner-injected-devfile.yaml
@@ -64,11 +64,33 @@ components:
   - name: gl-cloner-injector
     container:
       image: alpine/git:2.45.2
+      env:
+        - name: GL_PROJECT_CLONING_SUCCESSFUL_FILE
+          value: "/projects/.gl_project_cloning_successful"
       args:
         - |-
-          if [ ! -d '/projects/test-project' ];
+          if [ -f "${GL_PROJECT_CLONING_SUCCESSFUL_FILE}" ];
+          then
+            echo "Project cloning was already successful";
+            exit 0;
+          fi
+          if [ -d "/projects/test-project" ];
           then
-            git clone --branch master http://localhost/test-group/test-project.git /projects/test-project;
+            echo "Removing unsuccessfully cloned project directory";
+            rm -rf "/projects/test-project";
+          fi
+          echo "Cloning project";
+          git clone --branch "master" "http://localhost/test-group/test-project.git" "/projects/test-project";
+          exit_code=$?
+          if [ "${exit_code}" -eq 0 ];
+          then
+            echo "Project cloning successful";
+            touch "${GL_PROJECT_CLONING_SUCCESSFUL_FILE}";
+            echo "Updated file to indicate successful project cloning";
+            exit 0;
+          else
+            echo "Project cloning failed with exit code: ${exit_code}";
+            exit "${exit_code}";
           fi
       command:
         - "/bin/sh"
diff --git a/ee/spec/support/shared_contexts/remote_development/remote_development_shared_contexts.rb b/ee/spec/support/shared_contexts/remote_development/remote_development_shared_contexts.rb
index ee0ece47be943df5d863307834b6ce7e43aa9058..41145554ed69e8760e41676950064751720bc7e4 100644
--- a/ee/spec/support/shared_contexts/remote_development/remote_development_shared_contexts.rb
+++ b/ee/spec/support/shared_contexts/remote_development/remote_development_shared_contexts.rb
@@ -747,14 +747,37 @@ def workspace_deployment(
               {
                 args: [
                   <<~ARGS.chomp
-                    if [ ! -d '/projects/test-project' ];
+                    if [ -f "${GL_PROJECT_CLONING_SUCCESSFUL_FILE}" ];
                     then
-                      git clone --branch master #{root_url}test-group/test-project.git /projects/test-project;
+                      echo "Project cloning was already successful";
+                      exit 0;
+                    fi
+                    if [ -d "/projects/test-project" ];
+                    then
+                      echo "Removing unsuccessfully cloned project directory";
+                      rm -rf "/projects/test-project";
+                    fi
+                    echo "Cloning project";
+                    git clone --branch "master" "#{root_url}test-group/test-project.git" "/projects/test-project";
+                    exit_code=$?
+                    if [ "${exit_code}" -eq 0 ];
+                    then
+                      echo "Project cloning successful";
+                      touch "${GL_PROJECT_CLONING_SUCCESSFUL_FILE}";
+                      echo "Updated file to indicate successful project cloning";
+                      exit 0;
+                    else
+                      echo "Project cloning failed with exit code: ${exit_code}";
+                      exit "${exit_code}";
                     fi
                   ARGS
                 ],
                 command: %w[/bin/sh -c],
                 env: [
+                  {
+                    name: "GL_PROJECT_CLONING_SUCCESSFUL_FILE",
+                    value: "/projects/.gl_project_cloning_successful"
+                  },
                   {
                     name: "PROJECTS_ROOT",
                     value: "/projects"