diff --git a/services/vm-watcher/vm_watcher_service.go b/services/vm-watcher/vm_watcher_service.go
index dbdfc74bf..5a7f9e0e6 100644
--- a/services/vm-watcher/vm_watcher_service.go
+++ b/services/vm-watcher/vm_watcher_service.go
@@ -84,10 +84,18 @@ func (s Service) Start(ctx context.Context) error {
 			// error, then do not treat the error as fatal. This allows the
 			// loop to run again, kicking off another watcher with what should
 			// be updated credentials.
-			if !vsphereclient.IsInvalidLogin(err) &&
-				!vsphereclient.IsNotAuthenticatedError(err) {
-
-				return err
+			if vsphereclient.IsInvalidLogin(err) ||
+				vsphereclient.IsNotAuthenticatedError(err) {
+
+				logger.V(4).Error(
+					err,
+					"Authn/authz issue trying start vm watcher service")
+
+			} else {
+				// Log unexpected error.
+				logger.Error(
+					err,
+					"Unexpected error trying to start vm watcher service")
 			}
 		}
 	}
diff --git a/services/vm-watcher/vm_watcher_service_test.go b/services/vm-watcher/vm_watcher_service_test.go
index 986b48a04..09fc24148 100644
--- a/services/vm-watcher/vm_watcher_service_test.go
+++ b/services/vm-watcher/vm_watcher_service_test.go
@@ -221,8 +221,12 @@ var _ = Describe(
 		})
 
 		When("the port is invalid", func() {
+			var (
+				oldPort string
+			)
+
 			JustBeforeEach(func() {
-				vcSimCtx.Suite.StartErrExpected = true
+				vcSimCtx.Suite.StartErrExpected = false
 
 				Eventually(func(g Gomega) {
 					vsClientMu.RLock()
@@ -236,6 +240,7 @@ var _ = Describe(
 					vsClientMu.Lock()
 					defer vsClientMu.Unlock()
 
+					oldPort = vcSimCtx.VCClientConfig.Port
 					vcSimCtx.VCClientConfig.Port = "1"
 				})
 
@@ -247,10 +252,31 @@ var _ = Describe(
 				})
 			})
 
-			Specify("the service should fail", func() {
+			Specify("the service should be restarted once the port is fixed", func() {
 				Eventually(func(g Gomega) {
-					g.Expect(vcSimCtx.Suite.StartErr()).To(HaveOccurred())
-					g.Expect(atomic.LoadInt32(&numNewClientCalls)).To(Equal(int32(2)))
+					vsClientMu.RLock()
+					defer vsClientMu.RUnlock()
+
+					g.Expect(vsClient.Valid()).To(BeFalse())
+					g.Expect(atomic.LoadInt32(&numNewClientCalls)).To(BeNumerically(">=", int32(2)))
+				}).Should(Succeed())
+
+				By("fix the port", func() {
+					vsClientMu.Lock()
+					defer vsClientMu.Unlock()
+
+					vcSimCtx.VCClientConfig.Port = oldPort
+				})
+
+				Eventually(func(g Gomega) {
+					vsClientMu.RLock()
+					defer vsClientMu.RUnlock()
+
+					g.Expect(atomic.LoadInt32(&numNewClientCalls)).To(BeNumerically(">=", int32(3)))
+				}).Should(Succeed())
+
+				Consistently(func(g Gomega) {
+					g.Expect(vcSimCtx.Suite.StartErr()).ToNot(HaveOccurred())
 				}).Should(Succeed())
 			})
 		})