diff --git a/pkg/action/install.go b/pkg/action/install.go
index 6efcdf22e..6c56f2ba4 100644
--- a/pkg/action/install.go
+++ b/pkg/action/install.go
@@ -111,41 +111,9 @@ func (i *Install) Run(chrt *chart.Chart, vals map[string]interface{}) (*release.
 		return nil, err
 	}
 
-	if i.ClientOnly {
-		// Add mock objects in here so it doesn't use Kube API server
-		// NOTE(bacongobbler): used for `helm template`
-		i.cfg.Capabilities = chartutil.DefaultCapabilities
-		i.cfg.KubeClient = &kubefake.PrintingKubeClient{Out: ioutil.Discard}
-		i.cfg.Releases = storage.Init(driver.NewMemory())
-	}
-
-	if err := chartutil.ProcessDependencies(chrt, vals); err != nil {
-		return nil, err
-	}
-
-	// Make sure if Atomic is set, that wait is set as well. This makes it so
-	// the user doesn't have to specify both
-	i.Wait = i.Wait || i.Atomic
-
-	caps, err := i.cfg.getCapabilities()
-	if err != nil {
-		return nil, err
-	}
-
-	options := chartutil.ReleaseOptions{
-		Name:      i.ReleaseName,
-		Namespace: i.Namespace,
-		IsInstall: true,
-	}
-	valuesToRender, err := chartutil.ToRenderValues(chrt, vals, options, caps)
-	if err != nil {
-		return nil, err
-	}
-
-	rel := i.createRelease(chrt, vals)
-
-	// Pre-install anything in the crd/ directory
-	if crds := chrt.CRDs(); !i.SkipCRDs && len(crds) > 0 {
+	// Pre-install anything in the crd/ directory. We do this before Helm
+	// contacts the upstream server and builds the capabilities object.
+	if crds := chrt.CRDs(); !i.ClientOnly && !i.SkipCRDs && len(crds) > 0 {
 		// We do these one at a time in the order they were read.
 		for _, obj := range crds {
 			// Read in the resources
@@ -167,7 +135,7 @@ func (i *Install) Run(chrt *chart.Chart, vals map[string]interface{}) (*release.
 					i.cfg.Log("CRD %s is already present. Skipping.", crdName)
 					continue
 				}
-				return i.failRelease(rel, err)
+				return nil, err
 			}
 
 			// Invalidate the local cache.
@@ -176,11 +144,49 @@ func (i *Install) Run(chrt *chart.Chart, vals map[string]interface{}) (*release.
 				// to impact the majority of charts.
 				i.cfg.Log("Could not clear the discovery cache: %s", err)
 			} else {
+				i.cfg.Log("Clearing discovery cache")
 				discoveryClient.Invalidate()
+				// Give time for the CRD to be recognized.
+				time.Sleep(5 * time.Second)
+				// Make sure to force a rebuild of the cache.
+				discoveryClient.ServerGroups()
 			}
 		}
 	}
 
+	if i.ClientOnly {
+		// Add mock objects in here so it doesn't use Kube API server
+		// NOTE(bacongobbler): used for `helm template`
+		i.cfg.Capabilities = chartutil.DefaultCapabilities
+		i.cfg.KubeClient = &kubefake.PrintingKubeClient{Out: ioutil.Discard}
+		i.cfg.Releases = storage.Init(driver.NewMemory())
+	}
+
+	if err := chartutil.ProcessDependencies(chrt, vals); err != nil {
+		return nil, err
+	}
+
+	// Make sure if Atomic is set, that wait is set as well. This makes it so
+	// the user doesn't have to specify both
+	i.Wait = i.Wait || i.Atomic
+
+	caps, err := i.cfg.getCapabilities()
+	if err != nil {
+		return nil, err
+	}
+
+	options := chartutil.ReleaseOptions{
+		Name:      i.ReleaseName,
+		Namespace: i.Namespace,
+		IsInstall: true,
+	}
+	valuesToRender, err := chartutil.ToRenderValues(chrt, vals, options, caps)
+	if err != nil {
+		return nil, err
+	}
+
+	rel := i.createRelease(chrt, vals)
+
 	var manifestDoc *bytes.Buffer
 	rel.Hooks, manifestDoc, rel.Info.Notes, err = i.cfg.renderResources(chrt, valuesToRender, i.OutputDir)
 	// Even for errors, attach this if available