diff --git a/internal/controller/bucket/acl.go b/internal/controller/bucket/acl.go
index 165bbe12..5e55096e 100644
--- a/internal/controller/bucket/acl.go
+++ b/internal/controller/bucket/acl.go
@@ -73,13 +73,14 @@ func (l *ACLClient) observeBackend(bucket *v1alpha1.Bucket, backendName string)
 		return Updated
 	}
 
-	if bucket.Spec.ForProvider.AccessControlPolicy == nil &&
+	if bucket.Spec.ForProvider.ACL == nil &&
+		bucket.Spec.ForProvider.AccessControlPolicy == nil &&
 		bucket.Spec.ForProvider.GrantFullControl == nil &&
 		bucket.Spec.ForProvider.GrantWrite == nil &&
 		bucket.Spec.ForProvider.GrantWriteACP == nil &&
 		bucket.Spec.ForProvider.GrantRead == nil &&
 		bucket.Spec.ForProvider.GrantReadACP == nil {
-		l.log.Info("No access control policy or grants requested - no action required", consts.KeyBucketName, bucket.Name, consts.KeyBackendName, backendName)
+		l.log.Info("No acl or access control policy or grants requested - no action required", consts.KeyBucketName, bucket.Name, consts.KeyBackendName, backendName)
 
 		return Updated
 	}
diff --git a/internal/controller/bucket/acl_test.go b/internal/controller/bucket/acl_test.go
index 89a9f134..55cf2184 100644
--- a/internal/controller/bucket/acl_test.go
+++ b/internal/controller/bucket/acl_test.go
@@ -34,6 +34,7 @@ import (
 
 func TestACLObserveBackend(t *testing.T) {
 	grantId := "id=abcd"
+	publicReadWriteACL := "public-read-write"
 	t.Parallel()
 
 	type fields struct {
@@ -106,7 +107,7 @@ func TestACLObserveBackend(t *testing.T) {
 				status: Updated,
 			},
 		},
-		"No policy or grants specified for the bucket": {
+		"No acl or policy or grants specified for the bucket": {
 			fields: fields{
 				backendStore: func() *backendstore.BackendStore {
 					fake := backendstorefakes.FakeS3Client{}
@@ -132,6 +133,34 @@ func TestACLObserveBackend(t *testing.T) {
 				status: Updated,
 			},
 		},
+		"ACL specified for the bucket": {
+			fields: fields{
+				backendStore: func() *backendstore.BackendStore {
+					fake := backendstorefakes.FakeS3Client{}
+
+					bs := backendstore.NewBackendStore()
+					bs.AddOrUpdateBackend("s3-backend-1", &fake, nil, true, apisv1alpha1.HealthStatusHealthy)
+
+					return bs
+				}(),
+			},
+			args: args{
+				bucket: &v1alpha1.Bucket{
+					ObjectMeta: metav1.ObjectMeta{
+						Name: "bucket",
+					},
+					Spec: v1alpha1.BucketSpec{
+						ForProvider: v1alpha1.BucketParameters{
+							ACL: &publicReadWriteACL,
+						},
+					},
+				},
+				backendName: "s3-backend-1",
+			},
+			want: want{
+				status: NeedsUpdate,
+			},
+		},
 		"Policy specified for the bucket": {
 			fields: fields{
 				backendStore: func() *backendstore.BackendStore {