diff --git a/pkg/scheduler/schedule_once_test.go b/pkg/scheduler/schedule_once_test.go
new file mode 100644
index 000000000..558ed6542
--- /dev/null
+++ b/pkg/scheduler/schedule_once_test.go
@@ -0,0 +1,146 @@
+/*
+Copyright 2026 The KubeFleet Authors.
+
+Licensed under the Apache License, Version 2.0 (the "License");
+you may not use this file except in compliance with the License.
+You may obtain a copy of the License at
+
+    http://www.apache.org/licenses/LICENSE-2.0
+
+Unless required by applicable law or agreed to in writing, software
+distributed under the License is distributed on an "AS IS" BASIS,
+WITHOUT WARRANTIES OR CONDITIONS OF ANY KIND, either express or implied.
+See the License for the specific language governing permissions and
+limitations under the License.
+*/
+
+package scheduler
+
+import (
+	"context"
+	"fmt"
+	"testing"
+	"time"
+
+	"github.com/google/go-cmp/cmp"
+	apierrors "k8s.io/apimachinery/pkg/api/errors"
+	metav1 "k8s.io/apimachinery/pkg/apis/meta/v1"
+	"k8s.io/client-go/kubernetes/scheme"
+	"sigs.k8s.io/controller-runtime/pkg/client"
+	"sigs.k8s.io/controller-runtime/pkg/client/fake"
+	"sigs.k8s.io/controller-runtime/pkg/client/interceptor"
+
+	fleetv1beta1 "github.com/kubefleet-dev/kubefleet/apis/placement/v1beta1"
+	"github.com/kubefleet-dev/kubefleet/pkg/scheduler/queue"
+)
+
+type trackingPlacementSchedulingQueue struct {
+	nextKey     queue.PlacementKey
+	rateLimited []queue.PlacementKey
+	forgotten   []queue.PlacementKey
+}
+
+func (q *trackingPlacementSchedulingQueue) Run() {}
+
+func (q *trackingPlacementSchedulingQueue) Close() {}
+
+func (q *trackingPlacementSchedulingQueue) CloseWithDrain() {}
+
+func (q *trackingPlacementSchedulingQueue) NextPlacementKey() (queue.PlacementKey, bool) {
+	return q.nextKey, false
+}
+
+func (q *trackingPlacementSchedulingQueue) Done(queue.PlacementKey) {}
+
+func (q *trackingPlacementSchedulingQueue) Add(queue.PlacementKey) {}
+
+func (q *trackingPlacementSchedulingQueue) AddRateLimited(key queue.PlacementKey) {
+	q.rateLimited = append(q.rateLimited, key)
+}
+
+func (q *trackingPlacementSchedulingQueue) AddAfter(queue.PlacementKey, time.Duration) {}
+
+func (q *trackingPlacementSchedulingQueue) AddBatched(queue.PlacementKey) {}
+
+func (q *trackingPlacementSchedulingQueue) Forget(key queue.PlacementKey) {
+	q.forgotten = append(q.forgotten, key)
+}
+
+func TestScheduleOncePolicySnapshotLookupErrors(t *testing.T) {
+	placementKey := queue.PlacementKey(crpName)
+	placement := &fleetv1beta1.ClusterResourcePlacement{
+		ObjectMeta: metav1.ObjectMeta{Name: crpName},
+	}
+
+	testCases := []struct {
+		name            string
+		listErr         error
+		policySnapshots []client.Object
+		wantRateLimited []queue.PlacementKey
+		wantForgotten   []queue.PlacementKey
+	}{
+		{
+			name:          "no latest snapshot waits for watcher",
+			wantForgotten: []queue.PlacementKey{placementKey},
+		},
+		{
+			name:            "API server error is requeued",
+			listErr:         apierrors.NewServiceUnavailable("simulated API server failure"),
+			wantRateLimited: []queue.PlacementKey{placementKey},
+		},
+		{
+			name:            "unexpected cache error is requeued",
+			listErr:         fmt.Errorf("simulated cache failure"),
+			wantRateLimited: []queue.PlacementKey{placementKey},
+		},
+		{
+			name: "multiple latest snapshots are not requeued",
+			policySnapshots: []client.Object{
+				latestPolicySnapshot("snapshot-1"),
+				latestPolicySnapshot("snapshot-2"),
+			},
+			wantForgotten: []queue.PlacementKey{placementKey},
+		},
+	}
+
+	for _, tc := range testCases {
+		t.Run(tc.name, func(t *testing.T) {
+			builder := fake.NewClientBuilder().WithScheme(scheme.Scheme).WithObjects(placement.DeepCopy())
+			if len(tc.policySnapshots) > 0 {
+				builder.WithObjects(tc.policySnapshots...)
+			}
+
+			var fakeClient client.WithWatch = builder.Build()
+			if tc.listErr != nil {
+				fakeClient = interceptor.NewClient(fakeClient, interceptor.Funcs{
+					List: func(_ context.Context, _ client.WithWatch, _ client.ObjectList, _ ...client.ListOption) error {
+						return tc.listErr
+					},
+				})
+			}
+
+			workQueue := &trackingPlacementSchedulingQueue{nextKey: placementKey}
+			s := &Scheduler{queue: workQueue, client: fakeClient}
+			s.scheduleOnce(context.Background(), 0)
+
+			if diff := cmp.Diff(workQueue.rateLimited, tc.wantRateLimited); diff != "" {
+				t.Errorf("rate-limited keys diff (-got, +want):\n%s", diff)
+			}
+			if diff := cmp.Diff(workQueue.forgotten, tc.wantForgotten); diff != "" {
+				t.Errorf("forgotten keys diff (-got, +want):\n%s", diff)
+			}
+		})
+	}
+}
+
+func latestPolicySnapshot(name string) client.Object {
+	return &fleetv1beta1.ClusterSchedulingPolicySnapshot{
+		ObjectMeta: metav1.ObjectMeta{
+			Name: name,
+			Labels: map[string]string{
+				fleetv1beta1.PlacementTrackingLabel: crpName,
+				fleetv1beta1.IsLatestSnapshotLabel:  "true",
+			},
+		},
+	}
+}
diff --git a/pkg/scheduler/scheduler.go b/pkg/scheduler/scheduler.go
index 30cc6e84e..164d3fddf 100644
--- a/pkg/scheduler/scheduler.go
+++ b/pkg/scheduler/scheduler.go
@@ -187,11 +187,17 @@ func (s *Scheduler) scheduleOnce(ctx context.Context, worker int) {
 	latestPolicySnapshot, err := s.lookupLatestPolicySnapshot(ctx, placement)
 	if err != nil {
 		klog.ErrorS(err, "Failed to lookup latest policy snapshot", "placement", placementKey)
-		// No requeue is needed; the scheduler will be triggered again when an active policy
-		// snapshot is created.
+		if errors.Is(err, controller.ErrNoLatestPolicySnapshot) || errors.Is(err, controller.ErrMultipleActivePolicySnapshots) {
+			// No requeue is needed; the scheduler will be triggered again when an active policy
+			// snapshot is created.
 
-		// Untrack the key for quicker reprocessing.
-		s.queue.Forget(placementKey)
+			// Untrack the key for quicker reprocessing.
+			s.queue.Forget(placementKey)
+			return
+		}
+
+		// Requeue transient lookup failures for later processing.
+		s.queue.AddRateLimited(placementKey)
 		return
 	}