diff --git a/pkg/reconciler/pipelinerun/resources/pipelinerunresolution.go b/pkg/reconciler/pipelinerun/resources/pipelinerunresolution.go
index 159768f71d3..50f438a82a6 100644
--- a/pkg/reconciler/pipelinerun/resources/pipelinerunresolution.go
+++ b/pkg/reconciler/pipelinerun/resources/pipelinerunresolution.go
@@ -108,7 +108,8 @@ func (t ResolvedPipelineRunTask) isSuccessful() bool {
 }
 
 // isFailure returns true only if the run has failed and will not be retried.
-// If the PipelineTask has a Matrix, isFailure returns true if any run has failed and will not be retried.
+// If the PipelineTask has a Matrix, isFailure returns true if any run has failed (no remaining retries)
+// and all other runs are done.
 func (t ResolvedPipelineRunTask) isFailure() bool {
 	if t.isCancelled() {
 		return true
@@ -130,14 +131,14 @@ func (t ResolvedPipelineRunTask) isFailure() bool {
 		if len(t.TaskRuns) == 0 {
 			return false
 		}
+		isDone = true
+		atLeastOneFailed := false
 		for _, taskRun := range t.TaskRuns {
-			c = taskRun.Status.GetCondition(apis.ConditionSucceeded)
-			isDone = taskRun.IsDone()
-			if isDone && c.IsFalse() && !t.hasRemainingRetries() {
-				return true
-			}
+			isDone = isDone && taskRun.IsDone()
+			taskRunFailed := taskRun.Status.GetCondition(apis.ConditionSucceeded).IsFalse() && !t.hasRemainingRetries()
+			atLeastOneFailed = atLeastOneFailed || taskRunFailed
 		}
-		return false
+		return atLeastOneFailed && isDone
 	default:
 		if t.TaskRun == nil {
 			return false
@@ -180,6 +181,7 @@ func (t ResolvedPipelineRunTask) hasRemainingRetries() bool {
 }
 
 // isCancelled returns true only if the run is cancelled
+// If the PipelineTask has a Matrix, isCancelled returns true if any run is cancelled and all other runs are done.
 func (t ResolvedPipelineRunTask) isCancelled() bool {
 	switch {
 	case t.IsCustomTask():
@@ -192,14 +194,15 @@ func (t ResolvedPipelineRunTask) isCancelled() bool {
 		if len(t.TaskRuns) == 0 {
 			return false
 		}
-		// is cancelled when any TaskRun is cancelled to fail fast
+		isDone := true
+		atLeastOneCancelled := false
 		for _, taskRun := range t.TaskRuns {
+			isDone = isDone && taskRun.IsDone()
 			c := taskRun.Status.GetCondition(apis.ConditionSucceeded)
-			if c != nil && c.IsFalse() && c.Reason == v1beta1.TaskRunReasonCancelled.String() {
-				return true
-			}
+			taskRunCancelled := c.IsFalse() && c.Reason == v1beta1.TaskRunReasonCancelled.String()
+			atLeastOneCancelled = atLeastOneCancelled || taskRunCancelled
 		}
-		return false
+		return atLeastOneCancelled && isDone
 	default:
 		if t.TaskRun == nil {
 			return false
diff --git a/pkg/reconciler/pipelinerun/resources/pipelinerunresolution_test.go b/pkg/reconciler/pipelinerun/resources/pipelinerunresolution_test.go
index e4481a0f238..daff9f0d886 100644
--- a/pkg/reconciler/pipelinerun/resources/pipelinerunresolution_test.go
+++ b/pkg/reconciler/pipelinerun/resources/pipelinerunresolution_test.go
@@ -1120,12 +1120,12 @@ func TestIsFailure(t *testing.T) {
 		},
 		want: true,
 	}, {
-		name: "one matrixed taskruns failed",
+		name: "one matrixed taskrun failed, one matrixed taskrun running",
 		rprt: ResolvedPipelineRunTask{
 			PipelineTask: matrixedPipelineTask,
 			TaskRuns:     []*v1beta1.TaskRun{makeFailed(trs[0]), makeStarted(trs[1])},
 		},
-		want: true,
+		want: false,
 	}, {
 		name: "matrixed taskruns failed: retries remaining",
 		rprt: ResolvedPipelineRunTask{
@@ -1155,12 +1155,12 @@ func TestIsFailure(t *testing.T) {
 		},
 		want: true,
 	}, {
-		name: "one matrixed taskrun cancelled",
+		name: "one matrixed taskrun cancelled, one matrixed taskrun running",
 		rprt: ResolvedPipelineRunTask{
 			PipelineTask: matrixedPipelineTask,
 			TaskRuns:     []*v1beta1.TaskRun{withCancelled(makeFailed(trs[0])), makeStarted(trs[1])},
 		},
-		want: true,
+		want: false,
 	}, {
 		name: "matrixed taskruns cancelled but not failed",
 		rprt: ResolvedPipelineRunTask{
@@ -1183,12 +1183,12 @@ func TestIsFailure(t *testing.T) {
 		},
 		want: true,
 	}, {
-		name: "one matrixed taskrun cancelled: retries remaining",
+		name: "one matrixed taskrun cancelled: retries remaining, one matrixed taskrun running",
 		rprt: ResolvedPipelineRunTask{
 			PipelineTask: withPipelineTaskRetries(*matrixedPipelineTask, 1),
 			TaskRuns:     []*v1beta1.TaskRun{withCancelled(makeFailed(trs[0])), makeStarted(trs[1])},
 		},
-		want: true,
+		want: false,
 	}, {
 		name: "matrixed taskruns cancelled: no retries remaining",
 		rprt: ResolvedPipelineRunTask{
@@ -1197,12 +1197,12 @@ func TestIsFailure(t *testing.T) {
 		},
 		want: true,
 	}, {
-		name: "one matrixed taskrun cancelled: no retries remaining",
+		name: "one matrixed taskrun cancelled: no retries remaining, one matrixed taskrun running",
 		rprt: ResolvedPipelineRunTask{
 			PipelineTask: withPipelineTaskRetries(*matrixedPipelineTask, 1),
 			TaskRuns:     []*v1beta1.TaskRun{withCancelled(withRetries(makeFailed(trs[0]))), makeStarted(trs[1])},
 		},
-		want: true,
+		want: false,
 	}} {
 		t.Run(tc.name, func(t *testing.T) {
 			if got := tc.rprt.isFailure(); got != tc.want {