diff --git a/api/config/observability.go b/api/config/observability.go
index 021d42020..26b485e72 100644
--- a/api/config/observability.go
+++ b/api/config/observability.go
@@ -1,5 +1,7 @@
 package config
 
+import "time"
+
 // ObservabilityPublisher
 type ObservabilityPublisher struct {
 	ArizeSink          ArizeSink
@@ -11,6 +13,7 @@ type ObservabilityPublisher struct {
 	Replicas           int32
 	TargetNamespace    string
 	ServiceAccountName string
+	DeploymentTimeout  time.Duration `default:"30m"`
 }
 
 // KafkaConsumer
diff --git a/api/models/model.go b/api/models/model.go
index ac636db1d..fb0893f6a 100644
--- a/api/models/model.go
+++ b/api/models/model.go
@@ -60,7 +60,7 @@ type Model struct {
 	ExperimentID           ID          `json:"mlflow_experiment_id" gorm:"column:mlflow_experiment_id"`
 	Type                   string      `json:"type" gorm:"type"`
 	MlflowURL              string      `json:"mlflow_url" gorm:"-"`
-	ObservabilitySupported bool        `json:"-" gorm:"column:observability_supported"`
+	ObservabilitySupported bool        `json:"observability_supported" gorm:"column:observability_supported"`
 
 	Endpoints []*ModelEndpoint `json:"endpoints" gorm:"foreignkey:ModelID;"`
 
diff --git a/api/models/service.go b/api/models/service.go
index fa7f83621..11d5106d5 100644
--- a/api/models/service.go
+++ b/api/models/service.go
@@ -127,24 +127,26 @@ func getPredictionLogTopicForVersion(project string, modelName string, modelVers
 
 func MergeProjectVersionLabels(projectLabels mlp.Labels, versionLabels KV) mlp.Labels {
 	projectLabelsMap := map[string]int{}
+	updatedLabels := make(mlp.Labels, 0)
 	for index, projectLabel := range projectLabels {
 		projectLabelsMap[projectLabel.Key] = index
+		updatedLabels = append(updatedLabels, projectLabel)
 	}
 
 	for versionLabelKey, versionLabelValue := range versionLabels {
 		if _, labelExists := projectLabelsMap[versionLabelKey]; labelExists {
 			index := projectLabelsMap[versionLabelKey]
-			projectLabels[index].Value = fmt.Sprint(versionLabelValue)
+			updatedLabels[index].Value = fmt.Sprint(versionLabelValue)
 			continue
 		}
 
-		projectLabels = append(projectLabels, mlpclient.Label{
+		updatedLabels = append(updatedLabels, mlpclient.Label{
 			Key:   versionLabelKey,
 			Value: fmt.Sprint(versionLabelValue),
 		})
 	}
 
-	return projectLabels
+	return updatedLabels
 }
 
 func CreateInferenceServiceName(modelName, versionID, revisionID string) string {
diff --git a/api/pkg/observability/deployment/deployment.go b/api/pkg/observability/deployment/deployment.go
index e265afe89..4c58287c4 100644
--- a/api/pkg/observability/deployment/deployment.go
+++ b/api/pkg/observability/deployment/deployment.go
@@ -19,6 +19,10 @@ import (
 	"k8s.io/client-go/rest"
 )
 
+const (
+	appLabelKey = "app"
+)
+
 type Manifest struct {
 	Deployment *appsv1.Deployment
 	Secret     *corev1.Secret
@@ -288,7 +292,7 @@ func (c *deployer) createSecretSpec(data *models.WorkerData) (*corev1.Secret, er
 		ObjectMeta: metav1.ObjectMeta{
 			Name:      c.getSecretName(data),
 			Namespace: c.targetNamespace(),
-			Labels:    data.Metadata.ToLabel(),
+			Labels:    c.getLabels(data),
 		},
 		StringData: map[string]string{
 			"config.yaml": string(consumerCfgStr),
@@ -322,8 +326,15 @@ func (c *deployer) applyDeployment(ctx context.Context, data *models.WorkerData,
 	return applyDeploymentFunc(data, secretName, true)
 }
 
-func (c *deployer) createDeploymentSpec(ctx context.Context, data *models.WorkerData, secretName string) (*appsv1.Deployment, error) {
+func (c *deployer) getLabels(data *models.WorkerData) map[string]string {
 	labels := data.Metadata.ToLabel()
+	labels[appLabelKey] = data.Metadata.App
+	return labels
+}
+
+func (c *deployer) createDeploymentSpec(ctx context.Context, data *models.WorkerData, secretName string) (*appsv1.Deployment, error) {
+	labels := c.getLabels(data)
+
 	cfgVolName := "config-volume"
 	return &appsv1.Deployment{
 		ObjectMeta: metav1.ObjectMeta{
@@ -337,11 +348,18 @@ func (c *deployer) createDeploymentSpec(ctx context.Context, data *models.Worker
 		Spec: appsv1.DeploymentSpec{
 			Selector: &metav1.LabelSelector{
 				MatchLabels: map[string]string{
-					"app": data.Metadata.App,
+					appLabelKey: data.Metadata.App,
 				},
 			},
 			Replicas: &c.consumerConfig.Replicas,
 			Template: corev1.PodTemplateSpec{
+				ObjectMeta: metav1.ObjectMeta{
+					Labels: labels,
+					Annotations: map[string]string{
+						PublisherRevisionAnnotationKey: strconv.Itoa(data.Revision),
+					},
+				},
+
 				Spec: corev1.PodSpec{
 					Containers: []corev1.Container{
 						{
@@ -386,9 +404,11 @@ func (c *deployer) createDeploymentSpec(ctx context.Context, data *models.Worker
 }
 
 func (c *deployer) waitUntilDeploymentReady(ctx context.Context, deployment *appsv1.Deployment, revision int) error {
-	deploymentv1 := c.kubeClient.AppsV1().Deployments(deployment.Name)
-	timeout := time.After(1 * time.Minute)
-	watcher, err := deploymentv1.Watch(ctx, metav1.ListOptions{})
+	deploymentv1 := c.kubeClient.AppsV1().Deployments(deployment.Namespace)
+	timeout := time.After(c.consumerConfig.DeploymentTimeout)
+	watcher, err := deploymentv1.Watch(ctx, metav1.ListOptions{
+		FieldSelector: fmt.Sprintf("metadata.name=%s", deployment.Name),
+	})
 	if err != nil {
 		return err
 	}
diff --git a/api/pkg/observability/deployment/deployment_test.go b/api/pkg/observability/deployment/deployment_test.go
index 39e525af2..68f78eeb7 100644
--- a/api/pkg/observability/deployment/deployment_test.go
+++ b/api/pkg/observability/deployment/deployment_test.go
@@ -3,6 +3,8 @@ package deployment
 import (
 	"context"
 	"fmt"
+	"time"
+
 	"net/http"
 	"reflect"
 	"strconv"
@@ -52,6 +54,7 @@ const (
 
 func createDeploymentSpec(data *models.WorkerData, resourceRequest corev1.ResourceList, resourceLimit corev1.ResourceList, imageName string) *appsv1.Deployment {
 	labels := data.Metadata.ToLabel()
+	labels[appLabelKey] = data.Metadata.App
 	numReplicas := int32(2)
 	cfgVolName := "config-volume"
 	depl := &appsv1.Deployment{
@@ -70,6 +73,12 @@ func createDeploymentSpec(data *models.WorkerData, resourceRequest corev1.Resour
 				},
 			},
 			Template: corev1.PodTemplateSpec{
+				ObjectMeta: metav1.ObjectMeta{
+					Labels: labels,
+					Annotations: map[string]string{
+						PublisherRevisionAnnotationKey: strconv.Itoa(data.Revision),
+					},
+				},
 				Spec: corev1.PodSpec{
 					ServiceAccountName: serviceAccountName,
 					Containers: []corev1.Container{
@@ -201,6 +210,7 @@ func Test_deployer_Deploy(t *testing.T) {
 		Replicas:           2,
 		TargetNamespace:    namespace,
 		ServiceAccountName: serviceAccountName,
+		DeploymentTimeout:  5 * time.Second,
 	}
 	requestResource := corev1.ResourceList{
 		corev1.ResourceCPU:    resource.MustParse("1"),
diff --git a/api/queue/work/model_service_deployment_test.go b/api/queue/work/model_service_deployment_test.go
index d2883a905..f91ed8dae 100644
--- a/api/queue/work/model_service_deployment_test.go
+++ b/api/queue/work/model_service_deployment_test.go
@@ -169,6 +169,10 @@ func TestExecuteDeployment(t *testing.T) {
 					ResourceRequest:          env.DefaultResourceRequest,
 					VersionID:                version.ID,
 					Namespace:                project.Name,
+					RevisionID:               models.ID(1),
+					Status:                   models.EndpointRunning,
+					URL:                      fmt.Sprintf("%s-%d-1.example.com", model.Name, version.ID),
+					ServiceName:              fmt.Sprintf("%s-%d-1.project.svc.cluster.local", model.Name, version.ID),
 					EnableModelObservability: true,
 				}, &models.Model{Name: "model", Project: project, ObservabilitySupported: true}).Return(nil)
 				return producer
@@ -225,6 +229,10 @@ func TestExecuteDeployment(t *testing.T) {
 					ResourceRequest:          env.DefaultResourceRequest,
 					VersionID:                version.ID,
 					Namespace:                project.Name,
+					RevisionID:               models.ID(1),
+					Status:                   models.EndpointRunning,
+					URL:                      fmt.Sprintf("%s-%d-1.example.com", model.Name, version.ID),
+					ServiceName:              fmt.Sprintf("%s-%d-1.project.svc.cluster.local", model.Name, version.ID),
 					EnableModelObservability: true,
 				}, &models.Model{Name: "model", Project: project, ObservabilitySupported: true}).Return(fmt.Errorf("producer error"))
 				return producer
@@ -669,11 +677,12 @@ func TestExecuteDeployment(t *testing.T) {
 				},
 			}
 			svc := &ModelServiceDeployment{
-				ClusterControllers:   controllers,
-				ImageBuilder:         imgBuilder,
-				Storage:              mockStorage,
-				DeploymentStorage:    mockDeploymentStorage,
-				LoggerDestinationURL: loggerDestinationURL,
+				ClusterControllers:         controllers,
+				ImageBuilder:               imgBuilder,
+				Storage:                    mockStorage,
+				DeploymentStorage:          mockDeploymentStorage,
+				LoggerDestinationURL:       loggerDestinationURL,
+				ObservabilityEventProducer: tt.eventProducer,
 			}
 
 			err := svc.Deploy(job)
diff --git a/api/queue/work/observability_publisher_deployment.go b/api/queue/work/observability_publisher_deployment.go
index 61f0a5d7a..03387019c 100644
--- a/api/queue/work/observability_publisher_deployment.go
+++ b/api/queue/work/observability_publisher_deployment.go
@@ -77,7 +77,7 @@ func (op *ObservabilityPublisherDeployment) deploymentIsOngoing(ctx context.Cont
 	if err != nil {
 		return queue.RetryableError{Message: err.Error()}
 	}
-	if deployedManifest.Deployment == nil {
+	if deployedManifest == nil {
 		return nil
 	}
 
diff --git a/api/queue/work/observability_publisher_deployment_test.go b/api/queue/work/observability_publisher_deployment_test.go
index bfb28a4bc..7435c9b18 100644
--- a/api/queue/work/observability_publisher_deployment_test.go
+++ b/api/queue/work/observability_publisher_deployment_test.go
@@ -57,7 +57,7 @@ func TestDeploy(t *testing.T) {
 					ModelVersion:    "1",
 					Revision:        1,
 					TopicSource:     "caraml-project-1-model-1-1-prediction-log",
-				}).Return(&deployment.Manifest{}, nil)
+				}).Return(nil, nil)
 				mockDeployer.On("Deploy", mock.Anything, &models.WorkerData{
 					Project:         "project-1",
 					ModelSchemaSpec: schemaSpec,
@@ -131,7 +131,7 @@ func TestDeploy(t *testing.T) {
 					ModelVersion:    "1",
 					Revision:        1,
 					TopicSource:     "caraml-project-1-model-1-1-prediction-log",
-				}).Return(&deployment.Manifest{}, nil)
+				}).Return(nil, nil)
 				mockDeployer.On("Deploy", mock.Anything, &models.WorkerData{
 					Project:         "project-1",
 					ModelSchemaSpec: schemaSpec,
@@ -240,7 +240,7 @@ func TestDeploy(t *testing.T) {
 					ModelVersion:    "1",
 					Revision:        1,
 					TopicSource:     "caraml-project-1-model-1-1-prediction-log",
-				}).Return(&deployment.Manifest{}, nil)
+				}).Return(nil, nil)
 				mockDeployer.On("Undeploy", mock.Anything, &models.WorkerData{
 					Project:         "project-1",
 					ModelSchemaSpec: schemaSpec,
@@ -314,7 +314,7 @@ func TestDeploy(t *testing.T) {
 					ModelVersion:    "1",
 					Revision:        1,
 					TopicSource:     "caraml-project-1-model-1-1-prediction-log",
-				}).Return(&deployment.Manifest{}, nil)
+				}).Return(nil, nil)
 				mockDeployer.On("Undeploy", mock.Anything, &models.WorkerData{
 					Project:         "project-1",
 					ModelSchemaSpec: schemaSpec,
diff --git a/db-migrations/39_observability_publisher.down.sql b/db-migrations/39_observability_publisher.down.sql
index 778c78796..0acc2bd78 100644
--- a/db-migrations/39_observability_publisher.down.sql
+++ b/db-migrations/39_observability_publisher.down.sql
@@ -1 +1,2 @@
-DROP TABLE observability_publishers;
\ No newline at end of file
+DROP TABLE observability_publishers;
+DROP TYPE publisher_status;
\ No newline at end of file
diff --git a/db-migrations/39_observability_publisher.up.sql b/db-migrations/39_observability_publisher.up.sql
index b5d9df501..6b2a4fce6 100644
--- a/db-migrations/39_observability_publisher.up.sql
+++ b/db-migrations/39_observability_publisher.up.sql
@@ -1,4 +1,4 @@
-CREATE TYPE publisher_status as ENUM ('pending', 'running', 'failed', 'terminating');
+CREATE TYPE publisher_status as ENUM ('pending', 'running', 'failed', 'terminated');
 
 CREATE TABLE IF NOT EXISTS observability_publishers
 (
diff --git a/python/sdk/test/pyfunc_integration_test.py b/python/sdk/test/pyfunc_integration_test.py
index 69d2d0adf..fe14a8d45 100644
--- a/python/sdk/test/pyfunc_integration_test.py
+++ b/python/sdk/test/pyfunc_integration_test.py
@@ -14,6 +14,7 @@
 
 import os
 import warnings
+from functools import reduce
 from test.utils import undeploy_all_version
 
 import joblib
@@ -21,6 +22,8 @@
 import pytest
 import xgboost as xgb
 from merlin.model import ModelType, PyFuncModel, PyFuncV3Model
+from merlin.model_schema import ModelSchema
+from merlin.observability.inference import InferenceSchema, RegressionOutput, ValueType
 from merlin.pyfunc import ModelInput, ModelOutput, Values
 from merlin.resource_request import ResourceRequest
 from sklearn import svm
@@ -63,12 +66,12 @@ def infer(self, model_input):
 class ModelObservabilityModel(PyFuncV3Model):
     def initialize(self, artifacts):
         self._feature_names = [
-            "sepal length (cm)",
-            "sepal width (cm)",
-            "petal length (cm)",
-            "petal width (cm)",
+            "sepal_length",
+            "sepal_width",
+            "petal_length",
+            "petal_width",
         ]
-        self._target_names = ["setosa", "versicolor", "virginica"]
+        self._target_names = ["prediction_score"]
         self._model = xgb.Booster(model_file=artifacts["xgb_model"])
 
     def preprocess(self, request: dict, **kwargs) -> ModelInput:
@@ -81,9 +84,17 @@ def preprocess(self, request: dict, **kwargs) -> ModelInput:
     def infer(self, model_input: ModelInput) -> ModelOutput:
         dmatrix = xgb.DMatrix(model_input.features.data)
         outputs = self._model.predict(dmatrix).tolist()
+
+        def max(first, second):
+            if first > second:
+                return first
+            return second
+
+        prediction_outputs = [[reduce(max, row)] for row in outputs]
+
         return ModelOutput(
             prediction_ids=model_input.prediction_ids,
-            predictions=Values(columns=self._target_names, data=outputs),
+            predictions=Values(columns=self._target_names, data=prediction_outputs),
         )
 
     def postprocess(self, model_output: ModelOutput, request: dict) -> dict:
@@ -234,13 +245,26 @@ def test_pyfunc_model_observability(
     merlin.set_project(project_name)
     merlin.set_model("pyfunc-mlobs", ModelType.PYFUNC_V3)
 
+    model_schema = ModelSchema(
+        spec=InferenceSchema(
+            feature_types={
+                "sepal_length": ValueType.FLOAT64,
+                "sepal_width": ValueType.FLOAT64,
+                "petal_length": ValueType.FLOAT64,
+                "petal_width": ValueType.FLOAT64,
+            },
+            model_prediction_output=RegressionOutput(
+                prediction_score_column="prediction_score", actual_score_column="actual"
+            ),
+        )
+    )
     undeploy_all_version()
-    with merlin.new_model_version() as v:
+    with merlin.new_model_version(model_schema=model_schema) as v:
         iris = load_iris()
         y = iris["target"]
         X = iris["data"]
-        xgb_path = train_xgboost_model(X, y)
 
+        xgb_path = train_xgboost_model(X, y)
         v.log_pyfunc_model(
             model_instance=ModelObservabilityModel(),
             conda_env="test/pyfunc/env.yaml",