diff --git a/.github/workflows/e2e-deploy-changes.yaml b/.github/workflows/e2e-deploy-changes.yaml
new file mode 100644
index 0000000000..f9eec9d4db
--- /dev/null
+++ b/.github/workflows/e2e-deploy-changes.yaml
@@ -0,0 +1,273 @@
+name: E2E Deploy Changes CI
+
+on:
+  workflow_dispatch:
+  release:
+    types: [created]
+  pull_request:
+    branches:
+      - main
+      - v*
+    paths:
+      - "test/deploy_changes/**"
+    
+
+concurrency:
+  group: ${{ github.workflow }}-${{ github.event.pull_request.number || github.ref }}
+  cancel-in-progress: true
+
+env:
+  REPOSITORY_NAME: ghcr.io/${{ github.repository }}-ci
+  TAG_NAME: PR${{ github.event.number }}
+  VCLUSTER_SUFFIX: vcluster
+  VCLUSTER_NAME: vcluster
+  VCLUSTER_NAMESPACE: vcluster
+
+jobs:
+  build-and-push-syncer-image:
+    runs-on: ubuntu-latest
+    steps:
+      - name: Checkout repository
+        uses: actions/checkout@v4
+        with:
+          fetch-depth: 0
+      - run: git fetch --force --tags
+      - name: Set up Go
+        uses: actions/setup-go@v5
+        with:
+          go-version: "1.22"
+      - name: Setup Just
+        uses: extractions/setup-just@v2
+      - name: Setup Syft
+        uses: anchore/sbom-action/download-syft@v0.17.0
+      - name: Setup GoReleaser
+        uses: goreleaser/goreleaser-action@v6
+        with:
+          install-only: true
+          version: latest
+      - name: Build and save syncer image
+        run: |
+          set -x
+          TELEMETRY_PRIVATE_KEY="" goreleaser build --single-target --snapshot --id vcluster --clean --output ./vcluster
+          docker build -t "${{ env.REPOSITORY_NAME }}:${{ env.TAG_NAME }}" -f Dockerfile.release --build-arg TARGETARCH=amd64 --build-arg TARGETOS=linux .
+          docker save -o vcluster_syncer "${{ env.REPOSITORY_NAME }}:${{ env.TAG_NAME }}"
+      - name: Upload syncer image to artifact
+        uses: actions/upload-artifact@v4
+        with:
+          name: vcluster_syncer
+          path: ./vcluster_syncer
+          retention-days: 7
+
+  build-vcluster-cli:
+    runs-on: ubuntu-latest
+    steps:
+      - name: Checkout repository
+        uses: actions/checkout@v4
+        with:
+          fetch-depth: 0
+      - run: git fetch --force --tags
+      - name: Set up Go
+        uses: actions/setup-go@v5
+        with:
+          go-version: "1.22"
+      - name: Setup Just
+        uses: extractions/setup-just@v2
+      - name: Setup Syft
+        uses: anchore/sbom-action/download-syft@v0.17.0
+      - name: Setup GoReleaser
+        uses: goreleaser/goreleaser-action@v6
+        with:
+          install-only: true
+      - name: Build vcluster cli
+        run: |
+          set -x
+          TELEMETRY_PRIVATE_KEY="" goreleaser build --single-target --snapshot --id vcluster-cli --clean --output ./vcluster
+      - name: Upload vcluster cli to artifact
+        uses: actions/upload-artifact@v4
+        with:
+          name: vcluster
+          path: ./vcluster
+          retention-days: 7
+
+  build-tests: 
+    name: Build tests binaries
+    runs-on: ubuntu-latest
+    steps:
+      - name: Checkout
+        uses: actions/checkout@v4
+
+      - name: Configure git
+        run: git config --global url.https://$GH_ACCESS_TOKEN@github.com/.insteadOf https://github.com/
+        env:
+          GH_ACCESS_TOKEN: ${{ secrets.GH_ACCESS_TOKEN }}
+
+      - name: Set up Go
+        uses: actions/setup-go@v4
+        with:
+          go-version-file: go.mod
+      
+      - name: Build e2e binary
+        run: |
+          cd ./test
+          go run -mod=vendor github.com/onsi/ginkgo/v2/ginkgo build --require-suite -r --mod vendor $(ls -d ./deploy_changes/deploy_* | jq -R . | jq -rcs '. | join(" \\\n")')
+        env:
+          GOWORK: off
+
+      - name: Upload test binaries to artifacts
+        uses: actions/upload-artifact@v4
+        with:
+          name: test-binaries
+          path: test/deploy_changes/**/*.test
+          retention-days: 7
+  
+  generate-matrix:
+    runs-on: ubuntu-latest
+    steps:
+      - name: Checkout code
+        uses: actions/checkout@v4
+
+      - name: List test directories
+        id: set-paths-matrix
+        run: |
+          cd ./test
+          set -x
+          sudo apt-get install -y jq
+
+          paths=$(ls -d ./deploy_changes/*/)
+          echo "matrix=$(printf '%s\n' "${paths}" | jq -R . | jq -cs .)" >> "$GITHUB_OUTPUT"
+
+    outputs:
+      matrix: ${{ steps.set-paths-matrix.outputs.matrix }}
+
+  execute-deploy-tests:
+    needs:
+      - build-and-push-syncer-image
+      - build-vcluster-cli
+      - build-tests
+      - generate-matrix
+
+    runs-on: ubuntu-latest
+    strategy:
+      fail-fast: false
+      matrix: 
+        test-suite-path: ${{ fromJson(needs.generate-matrix.outputs.matrix) }}
+    steps:
+      - name: Checkout repository
+        uses: actions/checkout@v4
+
+      - uses: azure/setup-helm@v4
+        name: Setup Helm
+        with:
+          version: "v3.11.0"
+
+      - name: Set up kind k8s cluster
+        uses: engineerd/setup-kind@v0.5.0
+        with:
+          version: "v0.20.0"
+          image: kindest/node:v1.30.0@sha256:047357ac0cfea04663786a612ba1eaba9702bef25227a794b52890dd8bcd692e
+
+      - name: Testing kind cluster set-up
+        run: |
+          set -x
+          kubectl cluster-info
+          kubectl get pods -n kube-system
+          echo "kubectl config current-context:" $(kubectl config current-context)
+          echo "KUBECONFIG env var:" ${KUBECONFIG}
+
+      - name: Download vcluster cli
+        uses: actions/download-artifact@v4
+        with:
+          name: vcluster
+
+      - name: Download syncer image
+        uses: actions/download-artifact@v4
+        with:
+          name: vcluster_syncer
+
+      - name: Download test binaries
+        uses: actions/download-artifact@v4
+        with:
+          name: test-binaries
+          path: ./test/deploy_changes
+
+      - name: Create vcluster
+        id: create-vcluster
+        run: |
+          set -x
+
+          kind load image-archive vcluster_syncer
+          
+          chmod +x vcluster && sudo mv vcluster /usr/bin
+
+          cd ./test
+
+          sudo apt-get install -y sed
+
+          sed -i "s|REPLACE_REPOSITORY_NAME|${{ env.REPOSITORY_NAME }}|g" ${{ matrix.test-suite-path }}commonValues.yaml
+          sed -i "s|REPLACE_TAG_NAME|${{ env.TAG_NAME }}|g" ${{ matrix.test-suite-path }}commonValues.yaml
+
+          vcluster create ${{ env.VCLUSTER_SUFFIX }} -n ${{ env.VCLUSTER_NAMESPACE }} \
+          --create-namespace \
+          --debug \
+          --connect=false \
+          --local-chart-dir ../chart \
+          -f ${{ matrix.test-suite-path }}commonValues.yaml 
+        continue-on-error: true
+
+      - name: Wait until vcluster is ready
+        id: wait-until-vcluster-is-ready
+        if: steps.create-vcluster.outcome == 'success'
+        run: |
+          set -x
+
+          ./hack/wait-for-pod.sh -l app=${{ env.VCLUSTER_SUFFIX }} -n ${{ env.VCLUSTER_NAMESPACE }}
+
+        continue-on-error: true
+
+      - name: Collect deployment information in case vcluster fails to start
+        if: steps.wait-until-vcluster-is-ready.outcome != 'success'
+        run: |
+          set -x
+          kubectl get pods -o yaml -n ${{ env.VCLUSTER_NAMESPACE }}
+          echo "======================================================================================================================"
+          kubectl get events -n ${{ env.VCLUSTER_NAMESPACE }} --sort-by='.lastTimestamp'
+          echo "======================================================================================================================"
+          kubectl logs -l app=${{ env.VCLUSTER_SUFFIX }} -n ${{ env.VCLUSTER_NAMESPACE }} -c syncer --tail=-1 -p || kubectl logs -l app=${{ env.VCLUSTER_SUFFIX }} -n ${{ env.VCLUSTER_NAMESPACE }} -c syncer --tail=-1
+          echo "======================================================================================================================"
+          kubectl describe pods -n ${{ env.VCLUSTER_NAMESPACE }}
+          exit 1
+      
+      # Skips NetworkPolicy tests because they require network plugin with support (e.g. Calico)
+      - name: Execute tests
+        id: execute-tests
+        run: |
+          set -x
+          
+          cd ./test/deploy_changes
+
+          cd $(echo "${{ matrix.test-suite-path }}" | sed -e 's#^./deploy_changes/##' -e 's#/$##')
+        
+          sudo chmod +x $(echo "${{ matrix.test-suite-path }}" | sed -e 's#^./deploy_changes/##' -e 's#/$##').test
+          
+          VCLUSTER_SUFFIX=${{ env.VCLUSTER_SUFFIX }} VCLUSTER_NAME=${{ env.VCLUSTER_NAME }} VCLUSTER_NAMESPACE=${{ env.VCLUSTER_NAMESPACE }} ./$(echo "${{ matrix.test-suite-path }}" | sed -e 's#^./deploy_changes/##' -e 's#/$##').test -test.v --ginkgo.v --ginkgo.skip='.*NetworkPolicy.*' --ginkgo.fail-fast
+        
+          if kubectl logs -l app=${{ env.VCLUSTER_SUFFIX }} -n ${{ env.VCLUSTER_NAMESPACE }} -c syncer --tail=-1 -p >/dev/null 2>/dev/null; then
+            echo "vCluster has restarted during testing, failing..."
+            exit 1
+          fi
+
+        continue-on-error: true
+
+      - name: Print logs if tests fail
+        if: steps.execute-tests.outcome == 'failure'
+        run: |
+          set -x
+          kubectl get pods -o yaml -n ${{ env.VCLUSTER_NAMESPACE }}
+          echo "======================================================================================================================"
+          kubectl get events -n ${{ env.VCLUSTER_NAMESPACE }} --sort-by='.lastTimestamp'
+          echo "======================================================================================================================"
+          kubectl logs -l app=${{ env.VCLUSTER_SUFFIX }} -n ${{ env.VCLUSTER_NAMESPACE }} -c syncer --tail=-1 -p || kubectl logs -l app=${{ env.VCLUSTER_SUFFIX }} -n ${{ env.VCLUSTER_NAMESPACE }} -c syncer --tail=-1
+          echo "======================================================================================================================"
+          kubectl describe pods -n ${{ env.VCLUSTER_NAMESPACE }}
+          exit 1
+
diff --git a/.github/workflows/e2e.yaml b/.github/workflows/e2e.yaml
index e0abf70bfc..58b0dc273c 100644
--- a/.github/workflows/e2e.yaml
+++ b/.github/workflows/e2e.yaml
@@ -10,7 +10,7 @@ on:
     paths:
       - "**.go"
       - "!**_test.go" # exclude test files to ignore unit test changes
-      - "test/**" # include test files in e2e again
+      - "test/functional_tests/**" # include test files in e2e again
       - "!**.md"
       - "Dockerfile.release"
       - ".github/workflows/e2e.yaml"
@@ -104,7 +104,7 @@ jobs:
         run: |
           set -x
           sudo apt-get install -y jq
-          paths=$(ls -d ./test/e2e*)
+          paths=$(ls -d ./test/functional_tests/e2e*)
           echo "matrix=$(printf '%s\n' "${paths}" | jq -R . | jq -cs .)" >> "$GITHUB_OUTPUT"
     outputs:
       matrix: ${{ steps.set-paths-matrix.outputs.matrix }}
@@ -129,7 +129,8 @@ jobs:
 
       - name: Build e2e binary
         run: |
-          go run -mod=vendor github.com/onsi/ginkgo/v2/ginkgo build --require-suite -r --mod vendor $(ls -d ./test/e2e* | jq -R . | jq -rcs '. | join(" \\\n")')
+          go run -mod=vendor github.com/onsi/ginkgo/v2/ginkgo build --require-suite -r --mod vendor $(ls -d ./test/functional_tests/e2e* | jq -R . | jq -rcs '. | join(" \\\n")')
+          
         env:
           GOWORK: off
 
@@ -137,7 +138,7 @@ jobs:
         uses: actions/upload-artifact@v4
         with:
           name: e2e-binaries
-          path: ./test/*/*.test
+          path: ./test/functional_tests/*/*.test
           retention-days: 7
   
   vcluster-install-delete:
@@ -287,14 +288,14 @@ jobs:
           chmod +x ./vcluster-dev/vcluster
           set -x
 
-          sed -i "s|REPLACE_REPOSITORY_NAME|${{ env.REPOSITORY_NAME }}|g" test/commonValues.yaml
-          sed -i "s|REPLACE_TAG_NAME|${{ env.TAG_NAME }}|g" test/commonValues.yaml
+          sed -i "s|REPLACE_REPOSITORY_NAME|${{ env.REPOSITORY_NAME }}|g" test/functional_tests/commonValues.yaml
+          sed -i "s|REPLACE_TAG_NAME|${{ env.TAG_NAME }}|g" test/functional_tests/commonValues.yaml
 
           ./vcluster-dev/vcluster create vcluster --distro=${{ matrix.distribution }} \
           --connect=false \
           --upgrade \
           --local-chart-dir ./chart \
-          -f ./test/commonValues.yaml
+          -f ./test/functional_tests/commonValues.yaml
 
           ./hack/wait-for-pod.sh -l app=${{ env.VCLUSTER_SUFFIX }} -n ${{ env.VCLUSTER_NAMESPACE }}
 
@@ -317,15 +318,15 @@ jobs:
         include:
           - distribution: "k8s"
             ha: "true"
-            test-suite-path: "./test/e2e"
+            test-suite-path: "./test/functional_tests/e2e"
             multinamespace-mode: "false"
           - distribution: "k3s"
             ha: "true"
-            test-suite-path: "./test/e2e"
+            test-suite-path: "./test/functional_tests/e2e"
             multinamespace-mode: "false"
           - distribution: "k0s"
             ha: "true"
-            test-suite-path: "./test/e2e"
+            test-suite-path: "./test/functional_tests/e2e"
             multinamespace-mode: "false"
         exclude:
           - ha: "true"
@@ -335,13 +336,13 @@ jobs:
             multinamespace-mode: "true"
           - distribution: "k3s"
             multinamespace-mode: "true"
-            test-suite-path: "./test/e2e_target_namespace"
+            test-suite-path: "./test/functional_tests/e2e_target_namespace"
           - distribution: "k3s"
             multinamespace-mode: "true"
-            test-suite-path: "./test/e2e_plugin"
+            test-suite-path: "./test/functional_tests/e2e_plugin"
           - distribution: "k3s"
             multinamespace-mode: "true"
-            test-suite-path: "./test/e2e_isolation_mode"
+            test-suite-path: "./test/functional_tests/e2e_isolation_mode"
 
     steps:
       - name: Checkout repository
@@ -380,7 +381,7 @@ jobs:
         uses: actions/download-artifact@v4
         with:
           name: e2e-binaries
-          path: ./test
+          path: ./test/functional_tests/
 
       # - name: Setup upterm session for debugging
       #   uses: lhotari/action-upterm@v1
@@ -392,18 +393,18 @@ jobs:
 
           extraArgs=()
           if [ ${{ matrix.multinamespace-mode }} == "true" ]; then
-            extraArgs+=( -f ./test/multins_values.yaml )
+            extraArgs+=( -f ./test/functional_tests/multins_values.yaml )
           fi
-          if [ ${{ matrix.test-suite-path }} == "./test/e2e_metrics_proxy" ]; then
+          if [ ${{ matrix.test-suite-path }} == "./test/functional_tests/e2e_metrics_proxy" ]; then
             helm repo add metrics-server https://kubernetes-sigs.github.io/metrics-server/
             helm upgrade --install metrics-server metrics-server/metrics-server --set args={--kubelet-insecure-tls} --set containerPort=4443 -n kube-system
           fi
 
           if [ ${{ matrix.ha }} == "true" ]; then
-            haValues="-f ./test/values_ha.yaml"
+            haValues="-f ./test/functional_tests/values_ha.yaml"
           fi
 
-          if [ ${{ matrix.test-suite-path }} == "./test/e2e_target_namespace" ]; then
+          if [ ${{ matrix.test-suite-path }} == "./test/functional_tests/e2e_target_namespace" ]; then
             kubectl apply -f ${{ matrix.test-suite-path }}/role.yaml
           fi
 
@@ -422,7 +423,7 @@ jobs:
           --connect=false \
           --distro=${{ matrix.distribution }} \
           --local-chart-dir ./chart \
-          -f ./test/commonValues.yaml \
+          -f ./test/functional_tests/commonValues.yaml \
           $haValues \
           -f ${{ matrix.test-suite-path }}/values.yaml \
           "${extraArgs[@]}"
@@ -448,7 +449,7 @@ jobs:
           echo "======================================================================================================================"
           kubectl logs -l app=${{ env.VCLUSTER_SUFFIX }} -n ${{ env.VCLUSTER_NAMESPACE }} -c syncer --tail=-1 -p || kubectl logs -l app=${{ env.VCLUSTER_SUFFIX }} -n ${{ env.VCLUSTER_NAMESPACE }} -c syncer --tail=-1
           echo "======================================================================================================================"
-          if [[ "${{ matrix.test-suite-path }}" = "./test/e2e_plugin" ]]; then
+          if [[ "${{ matrix.test-suite-path }}" = "./test/functional_tests/e2e_plugin" ]]; then
             kubectl logs -l app=${{ env.VCLUSTER_SUFFIX }} -n ${{ env.VCLUSTER_NAMESPACE }} -c bootstrap-with-deployment --tail=-1 -p || kubectl logs -l app=${{ env.VCLUSTER_SUFFIX }} -n ${{ env.VCLUSTER_NAMESPACE }} -c bootstrap-with-deployment --tail=-1
             echo "======================================================================================================================"
           fi
@@ -462,9 +463,9 @@ jobs:
         run: |
           set -x
 
-          sudo chmod +x $(echo "${{ matrix.test-suite-path }}" | sed "s#./test/##g").test
+          sudo chmod +x $(echo "${{ matrix.test-suite-path }}" | sed "s#./test/functional_tests/##g").test
 
-          VCLUSTER_SUFFIX=${{ env.VCLUSTER_SUFFIX }} VCLUSTER_NAME=${{ env.VCLUSTER_NAME }} VCLUSTER_NAMESPACE=${{ env.VCLUSTER_NAMESPACE }} MULTINAMESPACE_MODE=${{ matrix.multinamespace-mode }} ./$(echo "${{ matrix.test-suite-path }}" | sed "s#./test/##g").test -test.v --ginkgo.v --ginkgo.skip='.*NetworkPolicy.*' --ginkgo.fail-fast
+          VCLUSTER_SUFFIX=${{ env.VCLUSTER_SUFFIX }} VCLUSTER_NAME=${{ env.VCLUSTER_NAME }} VCLUSTER_NAMESPACE=${{ env.VCLUSTER_NAMESPACE }} MULTINAMESPACE_MODE=${{ matrix.multinamespace-mode }} ./$(echo "${{ matrix.test-suite-path }}" | sed "s#./test/functional_tests/##g").test -test.v --ginkgo.v --ginkgo.skip='.*NetworkPolicy.*' --ginkgo.fail-fast
           if kubectl logs -l app=${{ env.VCLUSTER_SUFFIX }} -n ${{ env.VCLUSTER_NAMESPACE }} -c syncer --tail=-1 -p >/dev/null 2>/dev/null; then
             echo "vCluster has restarted during testing, failing..."
             exit 1
diff --git a/Justfile b/Justfile
index 423c30d2f0..52ec91b989 100644
--- a/Justfile
+++ b/Justfile
@@ -84,7 +84,7 @@ embed-chart version="0.0.0":
   RELEASE_VERSION={{ version }} go generate -tags embed_chart ./...
 
 # Run e2e tests
-e2e distribution="k3s" path="./test/e2e" multinamespace="false": create-kind && delete-kind
+e2e distribution="k3s" path="./test/functional_tests/e2e" multinamespace="false": create-kind && delete-kind
   echo "Execute test suites ({{ distribution }}, {{ path }}, {{ multinamespace }})"
 
   TELEMETRY_PRIVATE_KEY="" goreleaser build --snapshot --clean
@@ -113,7 +113,7 @@ e2e distribution="k3s" path="./test/e2e" multinamespace="false": create-kind &&
     --local-chart-dir ./chart/ \
     -f ./dist/commonValues.yaml \
     -f {{ path }}/values.yaml \
-    $([[ "{{ multinamespace }}" = "true" ]] && echo "-f ./test/multins_values.yaml" || echo "")
+    $([[ "{{ multinamespace }}" = "true" ]] && echo "-f ./test/functional_tests/multins_values.yaml" || echo "")
 
   kubectl wait --for=condition=ready pod -l app=vcluster -n vcluster --timeout=300s
 
diff --git a/devspace.yaml b/devspace.yaml
index ed8a590b87..c112f687ee 100644
--- a/devspace.yaml
+++ b/devspace.yaml
@@ -6,9 +6,9 @@ vars:
   # Make sure vcluster is the default namespace
   DEVSPACE_FLAGS: "-n vcluster"
   SYNCER_IMAGE: ghcr.io/loft-sh/loft-enterprise/dev-vcluster
-  COMMON_VALUES: ./test/commonValues.yaml
-  PRO_VALUES: ./test/proValues.yaml
-  VALUES_FILE: ./test/e2e/values.yaml
+  COMMON_VALUES: ./test/functional_tests/commonValues.yaml
+  PRO_VALUES: ./test/functional_tests/proValues.yaml
+  VALUES_FILE: ./test/functional_tests/e2e/values.yaml
 
 # Images DevSpace will build for vcluster
 images:
@@ -218,7 +218,7 @@ profiles:
 
 commands:
   # e.g. devspace run test k3s
-  # e.g. devspace run test k3s --var VALUES_FILE=./test/e2e_node
+  # e.g. devspace run test k3s --var VALUES_FILE=./test/functional_tests/e2e_node
   test: |-
     devspace purge -n ${DEVSPACE_NAMESPACE} --debug
     devspace dev -n ${DEVSPACE_NAMESPACE} --profile test-$@
diff --git a/hack/vcluster-install-scripts/test-helm-install.sh b/hack/vcluster-install-scripts/test-helm-install.sh
index 0a80e5a1bc..16013c017a 100755
--- a/hack/vcluster-install-scripts/test-helm-install.sh
+++ b/hack/vcluster-install-scripts/test-helm-install.sh
@@ -5,7 +5,7 @@ VCLUSTER_NAME="${VCLUSTER_NAME}"
 VCLUSTER_NAMESPACE="${VCLUSTER_NAMESPACE}"
 POLL_INTERVAL=10  
 MAX_WAIT_TIME=180
-PATH_TO_VALUES_FILE="./test/commonValues.yaml"
+PATH_TO_VALUES_FILE="./test/functional_tests/commonValues.yaml"
 HELM_CHART_DIR="./chart"
 
 if [ -z "$VCLUSTER_NAME" ]; then
diff --git a/hack/vcluster-install-scripts/test-kubectl-install.sh b/hack/vcluster-install-scripts/test-kubectl-install.sh
index 819e8bc1da..ef65361729 100755
--- a/hack/vcluster-install-scripts/test-kubectl-install.sh
+++ b/hack/vcluster-install-scripts/test-kubectl-install.sh
@@ -6,7 +6,7 @@ VCLUSTER_NAMESPACE="${VCLUSTER_NAMESPACE}"
 POLL_INTERVAL=10  
 MAX_WAIT_TIME=180 
 MANIFEST_FILE="vcluster-manifest.yaml"
-PATH_TO_VALUES_FILE="./test/commonValues.yaml"
+PATH_TO_VALUES_FILE="./test/functional_tests/commonValues.yaml"
 HELM_CHART_DIR="./chart"
 
 if [ -z "$VCLUSTER_NAME" ]; then
diff --git a/test/deploy_changes/deploy_changes_networking/commonValues.yaml b/test/deploy_changes/deploy_changes_networking/commonValues.yaml
new file mode 100644
index 0000000000..76e8fd1a7e
--- /dev/null
+++ b/test/deploy_changes/deploy_changes_networking/commonValues.yaml
@@ -0,0 +1,45 @@
+sync:
+  toHost:
+    pods:
+      useSecretsForSATokens: true
+  fromHost:
+    nodes:
+      enabled: true
+      selector:
+        labels:
+          kubernetes.io/hostname: "kind-control-plane"
+controlPlane:
+  backingStore:
+    etcd:
+      deploy:
+        statefulSet:
+          resources:
+            requests:
+              cpu: "0"
+  statefulSet:
+    image:
+      registry: ""
+      repository: REPLACE_REPOSITORY_NAME
+      tag: REPLACE_TAG_NAME
+    env:
+      - name: DEBUG
+        value: "true"
+    resources:
+      requests:
+        cpu: "0"
+# values for general test suite
+networking:
+  replicateServices:
+    toHost:
+      - from: test/test
+        to: test
+      - from: test/nginx
+        to: nginx
+    fromHost:
+      - from: test/test
+        to: default/test
+      - from: test/nginx
+        to: default/nginx
+experimental:
+  syncSettings:
+    setOwner: true
\ No newline at end of file
diff --git a/test/deploy_changes/deploy_changes_networking/deploy_changes_networking.go b/test/deploy_changes/deploy_changes_networking/deploy_changes_networking.go
new file mode 100644
index 0000000000..2cc6687828
--- /dev/null
+++ b/test/deploy_changes/deploy_changes_networking/deploy_changes_networking.go
@@ -0,0 +1,54 @@
+package deploynetworkingchanges
+
+import (
+	"time"
+
+	"github.com/loft-sh/vcluster/test/framework"
+	"github.com/onsi/ginkgo/v2"
+)
+
+const (
+	pollingInterval     = time.Second * 2
+	pollingDurationLong = time.Minute * 2
+	filePath            = "commonValues.yaml"
+	chartPath           = "../../../chart"
+)
+
+var _ = ginkgo.Describe("Deploy networking changes to vCluster", func() {
+	f := framework.DefaultFramework
+	ginkgo.It("Deploys new changes to vCluster", func() {
+
+		ginkgo.By("Checking for no Resource Quota availability")
+		framework.ExpectError(CheckNoResourceQuota(f))
+
+		ginkgo.By("Check if no Limit Range is available")
+		framework.ExpectError(CheckNoLimitRange(f))
+
+		ginkgo.By("Check if no network policy is available")
+		framework.ExpectError(CheckNoNetworkPolicy(f))
+
+		ginkgo.By("Enabling isolation policies in YAML")
+		EnableIsolationPolicies()
+
+		ginkgo.By("Replacing placeholders in YAML")
+		ReplaceYAMLPlaceholders()
+
+		ginkgo.By("Deploying changes to vCluster")
+		DeployChangesToVClusterUsingCLI(f)
+
+		ginkgo.By("Disconnecting from vCluster")
+		DisconnectFromVCluster(f)
+
+		ginkgo.By("Verifying cluster is active")
+		VerifyClusterIsActive(f)
+
+		ginkgo.By("Checking for Resource Quota availability")
+		framework.ExpectNoError(CheckResourceQuota(f))
+
+		ginkgo.By("Checking for Limit Range availability")
+		framework.ExpectNoError(CheckLimitRange(f))
+
+		ginkgo.By("Checking for Network Policy availability")
+		framework.ExpectNoError(CheckNetworkPolicy(f))
+	})
+})
diff --git a/test/deploy_changes/deploy_changes_networking/deploy_changes_networking_suite_test.go b/test/deploy_changes/deploy_changes_networking/deploy_changes_networking_suite_test.go
new file mode 100644
index 0000000000..4c37c6be6c
--- /dev/null
+++ b/test/deploy_changes/deploy_changes_networking/deploy_changes_networking_suite_test.go
@@ -0,0 +1,41 @@
+package deploynetworkingchanges
+
+import (
+	"context"
+	"testing"
+
+	"github.com/loft-sh/log"
+	"github.com/loft-sh/vcluster/test/framework"
+	"github.com/onsi/ginkgo/v2"
+	"github.com/onsi/gomega"
+	"k8s.io/apimachinery/pkg/runtime"
+	clientgoscheme "k8s.io/client-go/kubernetes/scheme"
+
+	// Enable cloud provider auth
+	_ "k8s.io/client-go/plugin/pkg/client/auth"
+)
+
+var (
+	scheme = runtime.NewScheme()
+)
+
+func init() {
+	_ = clientgoscheme.AddToScheme(scheme)
+}
+
+func TestRunDeployChangesTests(t *testing.T) {
+	gomega.RegisterFailHandler(ginkgo.Fail)
+	err := framework.CreateFramework(context.Background(), scheme)
+	if err != nil {
+		log.GetInstance().Fatalf("Error setting up framework: %v", err)
+	}
+
+	var _ = ginkgo.AfterSuite(func() {
+		err = framework.DefaultFramework.Cleanup()
+		if err != nil {
+			log.GetInstance().Warnf("Error executing testsuite cleanup: %v", err)
+		}
+	})
+
+	ginkgo.RunSpecs(t, "Vcluster Deploy changes suite")
+}
diff --git a/test/deploy_changes/deploy_changes_networking/helpers.go b/test/deploy_changes/deploy_changes_networking/helpers.go
new file mode 100644
index 0000000000..21df937733
--- /dev/null
+++ b/test/deploy_changes/deploy_changes_networking/helpers.go
@@ -0,0 +1,94 @@
+package deploynetworkingchanges
+
+import (
+	"bytes"
+	"os"
+	"os/exec"
+	"strings"
+
+	"github.com/loft-sh/vcluster/test/framework"
+	"github.com/onsi/gomega"
+	metav1 "k8s.io/apimachinery/pkg/apis/meta/v1"
+)
+
+func CheckNoResourceQuota(f *framework.Framework) error {
+	_, err := f.HostClient.CoreV1().ResourceQuotas(f.VclusterNamespace).Get(f.Context, "vc-vcluster", metav1.GetOptions{})
+	return err
+}
+
+func CheckNoLimitRange(f *framework.Framework) error {
+	_, err := f.HostClient.CoreV1().LimitRanges(f.VclusterNamespace).Get(f.Context, "vc-vcluster", metav1.GetOptions{})
+	return err
+}
+
+func CheckNoNetworkPolicy(f *framework.Framework) error {
+	_, err := f.HostClient.NetworkingV1().NetworkPolicies(f.VclusterNamespace).Get(f.Context, "vc-work-vcluster", metav1.GetOptions{})
+	return err
+}
+
+func EnableIsolationPolicies() {
+	isolationParameters := []string{
+		".policies.resourceQuota.enabled = true",
+		".policies.limitRange.enabled = true",
+		".policies.networkPolicy.enabled = true",
+	}
+
+	for _, expr := range isolationParameters {
+		cmdExec := exec.Command("yq", "e", "-i", expr, filePath)
+		err := cmdExec.Run()
+		framework.ExpectNoError(err, "Failure to edit file")
+	}
+}
+
+func ReplaceYAMLPlaceholders() {
+	replaceCmd := exec.Command("sed", "-i", "s|REPLACE_REPOSITORY_NAME|"+os.Getenv("REPOSITORY_NAME")+"|g", filePath)
+	err := replaceCmd.Run()
+	framework.ExpectNoError(err, "Failure to edit file")
+
+	replaceCmd = exec.Command("sed", "-i", "s|REPLACE_TAG_NAME|"+os.Getenv("TAG_NAME")+"|g", filePath)
+	err = replaceCmd.Run()
+	framework.ExpectNoError(err, "Failure to edit file")
+}
+
+func DeployChangesToVClusterUsingCLI(f *framework.Framework) {
+	gomega.Eventually(func() bool {
+		stdout := &bytes.Buffer{}
+		deployCmd := exec.Command("vcluster", "create", "--upgrade", f.VclusterName, "--namespace", f.VclusterNamespace, "--local-chart-dir", chartPath, "-f", filePath)
+		deployCmd.Stdout = stdout
+		err := deployCmd.Run()
+		framework.ExpectNoError(err)
+		return err == nil && strings.Contains(stdout.String(), "Switched active kube context to")
+	}).WithPolling(pollingInterval).WithTimeout(pollingDurationLong).Should(gomega.BeTrue())
+}
+
+func DisconnectFromVCluster(f *framework.Framework) {
+	disconnectCmd := exec.Command("vcluster", "disconnect")
+	err := disconnectCmd.Run()
+	if err != nil && !strings.Contains(err.Error(), "not a virtual cluster context") {
+		framework.ExpectNoError(err, "Error disconnecting from vCluster")
+	}
+}
+
+func VerifyClusterIsActive(f *framework.Framework) {
+	gomega.Eventually(func() bool {
+		checkCmd := exec.Command("vcluster", "list")
+		output, err := checkCmd.CombinedOutput()
+		framework.ExpectNoError(err)
+		return err == nil && strings.Contains(string(output), f.VclusterName) && strings.Contains(string(output), "Running")
+	}).WithPolling(pollingInterval).WithTimeout(pollingDurationLong).Should(gomega.BeTrue())
+}
+
+func CheckResourceQuota(f *framework.Framework) error {
+	_, err := f.HostClient.CoreV1().ResourceQuotas(f.VclusterNamespace).Get(f.Context, "vc-"+f.VclusterName, metav1.GetOptions{})
+	return err
+}
+
+func CheckLimitRange(f *framework.Framework) error {
+	_, err := f.HostClient.CoreV1().LimitRanges(f.VclusterNamespace).Get(f.Context, "vc-"+f.VclusterName, metav1.GetOptions{})
+	return err
+}
+
+func CheckNetworkPolicy(f *framework.Framework) error {
+	_, err := f.HostClient.NetworkingV1().NetworkPolicies(f.VclusterNamespace).Get(f.Context, "vc-work-"+f.VclusterName, metav1.GetOptions{})
+	return err
+}
diff --git a/test/deploy_changes/deploy_changes_sync/commonValues.yaml b/test/deploy_changes/deploy_changes_sync/commonValues.yaml
new file mode 100644
index 0000000000..2ca74de46d
--- /dev/null
+++ b/test/deploy_changes/deploy_changes_sync/commonValues.yaml
@@ -0,0 +1,45 @@
+sync:
+  toHost:
+    pods:
+      useSecretsForSATokens: true
+  fromHost:
+    nodes:
+      enabled: false
+      selector:
+        labels:
+          kubernetes.io/hostname: "kind-control-plane"
+controlPlane:
+  backingStore:
+    etcd:
+      deploy:
+        statefulSet:
+          resources:
+            requests:
+              cpu: "0"
+  statefulSet:
+    image:
+      registry: ""
+      repository: REPLACE_REPOSITORY_NAME
+      tag: REPLACE_TAG_NAME
+    env:
+      - name: DEBUG
+        value: "true"
+    resources:
+      requests:
+        cpu: "0"
+# values for general test suite
+networking:
+  replicateServices:
+    toHost:
+      - from: test/test
+        to: test
+      - from: test/nginx
+        to: nginx
+    fromHost:
+      - from: test/test
+        to: default/test
+      - from: test/nginx
+        to: default/nginx
+experimental:
+  syncSettings:
+    setOwner: true
diff --git a/test/deploy_changes/deploy_changes_sync/deploy_changes_sync.go b/test/deploy_changes/deploy_changes_sync/deploy_changes_sync.go
new file mode 100644
index 0000000000..9d55f11fb1
--- /dev/null
+++ b/test/deploy_changes/deploy_changes_sync/deploy_changes_sync.go
@@ -0,0 +1,121 @@
+package deploysyncchanges
+
+import (
+	"context"
+	"fmt"
+	"os"
+	"time"
+
+	"github.com/loft-sh/log"
+	"github.com/loft-sh/vcluster/pkg/platform/random"
+	"github.com/loft-sh/vcluster/test/framework"
+	"github.com/onsi/ginkgo/v2"
+	"k8s.io/apimachinery/pkg/runtime"
+	clientgoscheme "k8s.io/client-go/kubernetes/scheme"
+)
+
+var (
+	scheme = runtime.NewScheme()
+)
+
+func init() {
+	_ = clientgoscheme.AddToScheme(scheme)
+}
+
+const (
+	pollingInterval       = time.Second * 2
+	pollingDurationLong   = time.Minute * 2
+	vclusterRepo          = "https://charts.loft.sh"
+	filePath              = "commonValues.yaml"
+	chartPath             = "../../../chart"
+	initialNsLabelKey     = "testing-ns-label"
+	initialNsLabelValue   = "testing-ns-label-value"
+	testingContainerName  = "nginx"
+	testingContainerImage = "nginxinc/nginx-unprivileged"
+)
+
+var _ = ginkgo.AfterSuite(func() {
+	err := framework.DefaultFramework.Cleanup()
+	if err != nil {
+		log.GetInstance().Warnf("Error executing testsuite cleanup: %v", err)
+	}
+})
+
+var _ = ginkgo.Describe("Deploy sync changes to vCluster", func() {
+	ginkgo.It("should deploy a vCluster using kubectl and verify sync changes ", func() {
+		f := framework.DefaultFramework
+		vClusterName := "t-cluster-" + random.String(6)
+		vClusterNamespace := "t-ns-" + random.String(6)
+		saName := "t-sa-" + random.String(6)
+		podName := "t-pod-" + random.String(6)
+		testNamespace := "t-ns-" + random.String(6)
+
+		ginkgo.By("Conect to virtual cluster vcluster deployed.")
+		err := ConnectVirtualCluster(os.Getenv("VCLUSTER_NAME"))
+		if err != nil {
+			fmt.Println("Failed to connect to virtual cluster vcluster.")
+			return
+		}
+
+		ginkgo.By("Create namespace for vCluster to be deployed in.")
+		createNamespace(vClusterNamespace)
+
+		ginkgo.By("Replacing placeholders in YAML")
+		err = ReplaceYAMLPlaceholders()
+		if err != nil {
+			fmt.Println("Failure to edit file.")
+			return
+		}
+
+		ginkgo.By("Deploy vCluster")
+		err = deployVClusterUsingHelm(vClusterName, vClusterNamespace)
+		if err != nil {
+			fmt.Println("Failure to deploy vCluster.")
+			return
+		}
+
+		ginkgo.By("Verify vCluster is Active")
+		verifyClusterIsActive(vClusterName, vClusterNamespace)
+
+		ginkgo.By("Set up framework")
+		err = framework.CreateFramework(context.Background(), scheme)
+		framework.ExpectNoError(err, "Error setting up framework")
+
+		ginkgo.By("Create test namespace in vCluster")
+		createVClusterTestNamespace(testNamespace, f)
+
+		ginkgo.By("Create service account and pod in vCluster")
+		createServiceAccount(testNamespace, saName, f)
+		createPod(testNamespace, podName, f)
+
+		ginkgo.By("Verifying pod, service account and node sync status")
+		verifyPodSyncStatus(testNamespace, podName, f, true)
+		verifyServiceAccountSyncStatus(testNamespace, saName, f, false)
+		verifyNodeSyncStatus(f, false)
+
+		ginkgo.By("Updating sync settings for vCluster")
+		syncSettings := []string{
+			".sync.fromHost.nodes.enabled=true",
+			".sync.toHost.serviceAccounts.enabled=true",
+		}
+		updateClusterSyncSettings(syncSettings)
+
+		ginkgo.By("Updating vCluster configuration")
+		updateVClusterUsingHelm(vClusterName, vClusterNamespace)
+
+		ginkgo.By("Verify vCluster is Active")
+		verifyClusterIsActive(vClusterName, vClusterNamespace)
+
+		ginkgo.By("Verifying updated service account and node sync status")
+		verifyServiceAccountSyncStatus(testNamespace, saName, f, true)
+		verifyNodeSyncStatus(f, true)
+		ginkgo.By("Verifying service account sync to Host")
+
+		ginkgo.By("Delete vCluster using Helm")
+		deleteVClusterUsingHelm(vClusterName, vClusterNamespace)
+
+		ginkgo.By("Verify vCluster is deleted")
+		verifyVClusterDeleted(vClusterName, vClusterNamespace)
+
+	})
+})
diff --git a/test/deploy_changes/deploy_changes_sync/deploy_changes_sync_suite_test.go b/test/deploy_changes/deploy_changes_sync/deploy_changes_sync_suite_test.go
new file mode 100644
index 0000000000..1c79c957ac
--- /dev/null
+++ b/test/deploy_changes/deploy_changes_sync/deploy_changes_sync_suite_test.go
@@ -0,0 +1,16 @@
+package deploysyncchanges
+
+import (
+	"testing"
+
+	"github.com/onsi/ginkgo/v2"
+	"github.com/onsi/gomega"
+
+	// Enable cloud provider auth
+	_ "k8s.io/client-go/plugin/pkg/client/auth"
+)
+
+func TestRunDeployChangesSyncTests(t *testing.T) {
+	gomega.RegisterFailHandler(ginkgo.Fail)
+	ginkgo.RunSpecs(t, "Vcluster Deploy sync changes suite")
+}
diff --git a/test/deploy_changes/deploy_changes_sync/helpers.go b/test/deploy_changes/deploy_changes_sync/helpers.go
new file mode 100644
index 0000000000..671f0d3207
--- /dev/null
+++ b/test/deploy_changes/deploy_changes_sync/helpers.go
@@ -0,0 +1,213 @@
+package deploysyncchanges
+
+import (
+	"bytes"
+	"fmt"
+	"os"
+	"os/exec"
+	"strings"
+
+	"github.com/loft-sh/vcluster/pkg/util/translate"
+	"github.com/loft-sh/vcluster/test/framework"
+	"github.com/onsi/gomega"
+	corev1 "k8s.io/api/core/v1"
+	metav1 "k8s.io/apimachinery/pkg/apis/meta/v1"
+)
+
+func createNamespace(namespace string) {
+	createNamespaceCmd := exec.Command("kubectl", "create", "namespace", namespace)
+	err := createNamespaceCmd.Run()
+	framework.ExpectNoError(err, "Failed to create namespace")
+}
+
+func deployVClusterUsingHelm(vClusterName string, vClusterNamespace string) error {
+	var out bytes.Buffer
+	helmCmd := exec.Command("helm", "upgrade", "--install", vClusterName, chartPath, "--repo", vclusterRepo, "--namespace", vClusterNamespace, "--values", filePath)
+	helmCmd.Stdout = &out
+	helmCmd.Stderr = &out // Capture stderr as well
+	fmt.Println("helmCmd: ", helmCmd)
+	err := helmCmd.Run()
+	if err != nil {
+		fmt.Printf("Error executing helm command: %v\n", err)
+		fmt.Printf("Command output: %s\n", out.String())
+		return err
+	}
+	return nil
+}
+
+func verifyClusterIsActive(vClusterName string, vClusterNamespace string) {
+	gomega.Eventually(func() bool {
+		checkCmd := exec.Command("vcluster", "list", "-n", vClusterNamespace)
+		output, err := checkCmd.CombinedOutput()
+		fmt.Println("output:", string(output))
+		if err != nil {
+			fmt.Printf("Error listing vCluster: %v\n", err)
+			fmt.Printf("Command output: %s\n", string(output))
+			return false
+		}
+		return strings.Contains(string(output), vClusterName) && strings.Contains(string(output), "Running")
+	}).WithPolling(pollingInterval).WithTimeout(pollingDurationLong).Should(gomega.BeTrue(), "Expected vCluster to be Running")
+}
+
+func createVClusterTestNamespace(testNamespace string, f *framework.Framework) {
+	_, err := f.VClusterClient.CoreV1().Namespaces().Create(f.Context, &corev1.Namespace{
+		ObjectMeta: metav1.ObjectMeta{
+			Name:   testNamespace,
+			Labels: map[string]string{initialNsLabelKey: initialNsLabelValue},
+		},
+	}, metav1.CreateOptions{})
+	framework.ExpectNoError(err, "Failed to create test namespace")
+}
+
+func createServiceAccount(testNamespace string, saName string, f *framework.Framework) {
+	_, err := f.VClusterClient.CoreV1().ServiceAccounts(testNamespace).Create(f.Context, &corev1.ServiceAccount{
+		ObjectMeta: metav1.ObjectMeta{
+			Name: saName,
+		},
+	}, metav1.CreateOptions{})
+	framework.ExpectNoError(err, "Failed to create service account")
+
+	err = f.WaitForServiceAccount(saName, testNamespace)
+	framework.ExpectNoError(err)
+}
+
+func createPod(testNamespace string, podName string, f *framework.Framework) {
+
+	_, err := f.VClusterClient.CoreV1().Pods(testNamespace).Create(f.Context, &corev1.Pod{
+		ObjectMeta: metav1.ObjectMeta{Name: podName},
+		Spec: corev1.PodSpec{
+			Containers: []corev1.Container{
+				{
+					Name:            testingContainerName,
+					Image:           testingContainerImage,
+					ImagePullPolicy: corev1.PullIfNotPresent,
+					SecurityContext: f.GetDefaultSecurityContext(),
+				},
+			},
+		},
+	}, metav1.CreateOptions{})
+	framework.ExpectNoError(err)
+
+	f.WaitForPodRunning(podName, testNamespace)
+}
+
+func verifyPodSyncStatus(ns, podName string, f *framework.Framework, sync bool) {
+	vpod, err := f.VClusterClient.CoreV1().Pods(ns).Get(f.Context, podName, metav1.GetOptions{})
+	framework.ExpectNoError(err)
+
+	pPodName := translate.Default.HostName(nil, podName, ns)
+	pod, err := f.HostClient.CoreV1().Pods(pPodName.Namespace).Get(f.Context, pPodName.Name, metav1.GetOptions{})
+	framework.ExpectNoError(err)
+
+	if sync {
+		framework.ExpectEqual(vpod.Status, pod.Status, "Pod status should be synced between vCluster and Host")
+	} else {
+		framework.ExpectNotEqual(vpod.Status, pod.Status, "Pod status should not be synced between vCluster and Host")
+	}
+
+}
+
+func verifyServiceAccountSyncStatus(ns, saName string, f *framework.Framework, sync bool) {
+	_, err := f.HostClient.CoreV1().ServiceAccounts(ns).Get(f.Context, saName, metav1.GetOptions{})
+	if sync {
+		framework.ExpectNoError(err)
+	} else {
+		framework.ExpectError(err)
+	}
+}
+
+func verifyNodeSyncStatus(f *framework.Framework, sync bool) {
+	hostNodes, err := f.HostClient.CoreV1().Nodes().List(f.Context, metav1.ListOptions{})
+	framework.ExpectNoError(err)
+
+	virtualNodes, err := f.VClusterClient.CoreV1().Nodes().List(f.Context, metav1.ListOptions{})
+	framework.ExpectNoError(err)
+
+	hostname := "kind-control-plane"
+
+	if kindName, ok := os.LookupEnv("KIND_NAME"); ok {
+		hostname = kindName + "-control-plane"
+	}
+
+	hostSyncedNodeName := ""
+	hostNodeLabels := make(map[string]map[string]string)
+	for _, node := range hostNodes.Items {
+		hostNodeLabels[node.Name] = node.Labels
+		if node.Labels["kubernetes.io/hostname"] == hostname {
+			hostSyncedNodeName = node.Name
+			break
+		}
+	}
+
+	if sync {
+		framework.ExpectEqual(hostSyncedNodeName, virtualNodes.Items[0].Name)
+	} else {
+		framework.ExpectNotEqual(hostSyncedNodeName, virtualNodes.Items[0].Name)
+	}
+}
+
+func updateClusterSyncSettings(syncSettings []string) {
+	for _, expr := range syncSettings {
+		cmdExec := exec.Command("yq", "e", "-i", expr, filePath)
+		err := cmdExec.Run()
+		framework.ExpectNoError(err, "Failure to edit file")
+	}
+}
+
+func updateVClusterUsingHelm(vClusterName, vClusterNamespace string) {
+	var out bytes.Buffer
+	helmCmd := exec.Command("helm", "template", vClusterName, "vcluster", "--repo", vclusterRepo, "-n", vClusterNamespace, "--local-chart-dir", chartPath, "-f", filePath)
+	helmCmd.Stdout = &out
+	err := helmCmd.Run()
+	framework.ExpectNoError(err)
+
+	kubectlCmd := exec.Command("kubectl", "apply", "-f", "-")
+	kubectlCmd.Stdin = &out
+	err = kubectlCmd.Run()
+	framework.ExpectNoError(err)
+}
+
+func deleteVClusterUsingHelm(vClusterName string, vClusterNamespace string) {
+	// helm delete my-vcluster -n vcluster-my-vcluster
+	helmCmd := exec.Command("helm", "delete", vClusterName, "-n", vClusterNamespace)
+	err := helmCmd.Run()
+	framework.ExpectNoError(err, "Failed to delete vCluster using Helm")
+}
+
+func verifyVClusterDeleted(vClusterName string, vClusterNamespace string) {
+	checkCmd := exec.Command("vcluster", "list", "-n", vClusterNamespace)
+	output, err := checkCmd.CombinedOutput()
+	framework.ExpectNoError(err)
+	vClusterFound := strings.Contains(string(output), vClusterName)
+	gomega.Expect(vClusterFound).To(gomega.BeFalse(), "vCluster %s was found in namespace %s", vClusterName, vClusterNamespace)
+}
+
+func ReplaceYAMLPlaceholders() error {
+	var out bytes.Buffer
+	replaceCmd := exec.Command("sed", "-i", "s|REPLACE_REPOSITORY_NAME|"+os.Getenv("REPOSITORY_NAME")+"|g", filePath)
+	replaceCmd.Stdout = &out
+	replaceCmd.Stderr = &out
+	err := replaceCmd.Run()
+	if err != nil {
+		fmt.Printf("Error executing helm command: %v\n", err)
+		fmt.Printf("Command output: %s\n", out.String())
+		return err
+	}
+
+	replaceCmd = exec.Command("sed", "-i", "s|REPLACE_TAG_NAME|"+os.Getenv("TAG_NAME")+"|g", filePath)
+	err = replaceCmd.Run()
+	if err != nil {
+		return err
+	}
+	return nil
+}
+
+func ConnectVirtualCluster(clusterName string) error {
+	checkCmd := exec.Command("vcluster", "connect", clusterName)
+	_, err := checkCmd.CombinedOutput()
+	if err != nil {
+		fmt.Printf("Error executing helm command: %v\n", err)
+		return err
+	}
+	return nil
+}
diff --git a/test/README.md b/test/functional_tests/README.md
similarity index 85%
rename from test/README.md
rename to test/functional_tests/README.md
index 83c0fbc51c..50d1884245 100644
--- a/test/README.md
+++ b/test/functional_tests/README.md
@@ -3,13 +3,13 @@
 1. Start test environment:
     - Start the vcluster in test mode `devspace run test <distro> <valuesFilePath from the testsuite>`
     
-      - To run the test from the a general test suite i.e from `./test/e2e`.
+      - To run the test from the a general test suite i.e from `./test/functional_tests/e2e`.
       
           `devspace --namespace vcluster run test k3s`
       
       - To run tests from a specific test suite, you'll need to specify the values file path from that test suite.
       
-          `devspace --namespace vcluster run test k3s --var VALUES_FILE=./test/e2e_node/values.yaml`
+          `devspace --namespace vcluster run test k3s --var VALUES_FILE=./test/functional_tests/e2e_node/values.yaml`
     
     - Then run following command in the terminal to start vcluster syncer.
         - To run default test suite start syncer with following command
@@ -17,11 +17,11 @@
         go run -mod vendor cmd/vcluster/main.go start --sync 'networkpolicies' --name=vcluster --service-account=vc-workload-vcluster --kube-config-context-name=my-vcluster --leader-elect=false --sync=nodes --sync=-ingressclasses --node-selector=kubernetes.io/hostname=kind-control-plane '--map-host-service=test/test=default/test' '--map-virtual-service=test/test=test'
         ```
 
-        - To run tests from other test suites you'll need to change the flags for `go run -mod vendor cmd/vcluster/main.go start` accordingly. You can check the list of syncer flags by running `helm template vcluster ./charts/k3s/ -f ./test/commonValues.yaml -f ./test/<test_suite>/values.yaml`
+        - To run tests from other test suites you'll need to change the flags for `go run -mod vendor cmd/vcluster/main.go start` accordingly. You can check the list of syncer flags by running `helm template vcluster ./charts/k3s/ -f ./test/functional_tests/commonValues.yaml -f ./test/functional_tests/<test_suite>/values.yaml`
         
          For e.g.
          ```
-         helm template vcluster ./charts/k3s/ -f ./test/commonValues.yaml -f ./test/e2e_target_namespace/values.yaml
+         helm template vcluster ./charts/k3s/ -f ./test/functional_tests/commonValues.yaml -f ./test/functional_tests/e2e_target_namespace/values.yaml
 
          # Then look for `name: syncer` container
 
diff --git a/test/commonValues.yaml b/test/functional_tests/commonValues.yaml
similarity index 100%
rename from test/commonValues.yaml
rename to test/functional_tests/commonValues.yaml
diff --git a/test/e2e/coredns/coredns.go b/test/functional_tests/e2e/coredns/coredns.go
similarity index 100%
rename from test/e2e/coredns/coredns.go
rename to test/functional_tests/e2e/coredns/coredns.go
diff --git a/test/e2e/e2e_suite_test.go b/test/functional_tests/e2e/e2e_suite_test.go
similarity index 71%
rename from test/e2e/e2e_suite_test.go
rename to test/functional_tests/e2e/e2e_suite_test.go
index 1823f051d0..7b7e18bdf9 100644
--- a/test/e2e/e2e_suite_test.go
+++ b/test/functional_tests/e2e/e2e_suite_test.go
@@ -19,16 +19,16 @@ import (
 	_ "k8s.io/client-go/plugin/pkg/client/auth"
 
 	// Register tests
-	_ "github.com/loft-sh/vcluster/test/e2e/coredns"
-	_ "github.com/loft-sh/vcluster/test/e2e/k8sdefaultendpoint"
-	_ "github.com/loft-sh/vcluster/test/e2e/manifests"
-	_ "github.com/loft-sh/vcluster/test/e2e/node"
-	_ "github.com/loft-sh/vcluster/test/e2e/servicesync"
-	_ "github.com/loft-sh/vcluster/test/e2e/syncer/networkpolicies"
-	_ "github.com/loft-sh/vcluster/test/e2e/syncer/pods"
-	_ "github.com/loft-sh/vcluster/test/e2e/syncer/pvc"
-	_ "github.com/loft-sh/vcluster/test/e2e/syncer/services"
-	_ "github.com/loft-sh/vcluster/test/e2e/webhook"
+	_ "github.com/loft-sh/vcluster/test/functional_tests/e2e/coredns"
+	_ "github.com/loft-sh/vcluster/test/functional_tests/e2e/k8sdefaultendpoint"
+	_ "github.com/loft-sh/vcluster/test/functional_tests/e2e/manifests"
+	_ "github.com/loft-sh/vcluster/test/functional_tests/e2e/node"
+	_ "github.com/loft-sh/vcluster/test/functional_tests/e2e/servicesync"
+	_ "github.com/loft-sh/vcluster/test/functional_tests/e2e/syncer/networkpolicies"
+	_ "github.com/loft-sh/vcluster/test/functional_tests/e2e/syncer/pods"
+	_ "github.com/loft-sh/vcluster/test/functional_tests/e2e/syncer/pvc"
+	_ "github.com/loft-sh/vcluster/test/functional_tests/e2e/syncer/services"
+	_ "github.com/loft-sh/vcluster/test/functional_tests/e2e/webhook"
 )
 
 var (
diff --git a/test/e2e/k8sdefaultendpoint/k8sdefaultendpoint.go b/test/functional_tests/e2e/k8sdefaultendpoint/k8sdefaultendpoint.go
similarity index 100%
rename from test/e2e/k8sdefaultendpoint/k8sdefaultendpoint.go
rename to test/functional_tests/e2e/k8sdefaultendpoint/k8sdefaultendpoint.go
diff --git a/test/e2e/manifests/chart.go b/test/functional_tests/e2e/manifests/chart.go
similarity index 100%
rename from test/e2e/manifests/chart.go
rename to test/functional_tests/e2e/manifests/chart.go
diff --git a/test/e2e/manifests/init.go b/test/functional_tests/e2e/manifests/init.go
similarity index 100%
rename from test/e2e/manifests/init.go
rename to test/functional_tests/e2e/manifests/init.go
diff --git a/test/e2e/node/node.go b/test/functional_tests/e2e/node/node.go
similarity index 100%
rename from test/e2e/node/node.go
rename to test/functional_tests/e2e/node/node.go
diff --git a/test/e2e/servicesync/servicesync.go b/test/functional_tests/e2e/servicesync/servicesync.go
similarity index 100%
rename from test/e2e/servicesync/servicesync.go
rename to test/functional_tests/e2e/servicesync/servicesync.go
diff --git a/test/e2e/syncer/networkpolicies/networkpolicies.go b/test/functional_tests/e2e/syncer/networkpolicies/networkpolicies.go
similarity index 100%
rename from test/e2e/syncer/networkpolicies/networkpolicies.go
rename to test/functional_tests/e2e/syncer/networkpolicies/networkpolicies.go
diff --git a/test/e2e/syncer/pods/pods.go b/test/functional_tests/e2e/syncer/pods/pods.go
similarity index 100%
rename from test/e2e/syncer/pods/pods.go
rename to test/functional_tests/e2e/syncer/pods/pods.go
diff --git a/test/e2e/syncer/pvc/pvc.go b/test/functional_tests/e2e/syncer/pvc/pvc.go
similarity index 100%
rename from test/e2e/syncer/pvc/pvc.go
rename to test/functional_tests/e2e/syncer/pvc/pvc.go
diff --git a/test/e2e/syncer/services/services.go b/test/functional_tests/e2e/syncer/services/services.go
similarity index 100%
rename from test/e2e/syncer/services/services.go
rename to test/functional_tests/e2e/syncer/services/services.go
diff --git a/test/e2e/values.yaml b/test/functional_tests/e2e/values.yaml
similarity index 100%
rename from test/e2e/values.yaml
rename to test/functional_tests/e2e/values.yaml
diff --git a/test/e2e/webhook/cert.go b/test/functional_tests/e2e/webhook/cert.go
similarity index 100%
rename from test/e2e/webhook/cert.go
rename to test/functional_tests/e2e/webhook/cert.go
diff --git a/test/e2e/webhook/utiils.go b/test/functional_tests/e2e/webhook/utiils.go
similarity index 100%
rename from test/e2e/webhook/utiils.go
rename to test/functional_tests/e2e/webhook/utiils.go
diff --git a/test/e2e/webhook/webhook.go b/test/functional_tests/e2e/webhook/webhook.go
similarity index 100%
rename from test/e2e/webhook/webhook.go
rename to test/functional_tests/e2e/webhook/webhook.go
diff --git a/test/e2e_cli/connect/connect.go b/test/functional_tests/e2e_cli/connect/connect.go
similarity index 100%
rename from test/e2e_cli/connect/connect.go
rename to test/functional_tests/e2e_cli/connect/connect.go
diff --git a/test/e2e_cli/e2e_cli_suite_test.go b/test/functional_tests/e2e_cli/e2e_cli_suite_test.go
similarity index 92%
rename from test/e2e_cli/e2e_cli_suite_test.go
rename to test/functional_tests/e2e_cli/e2e_cli_suite_test.go
index 1c4f6a7026..3a7719d3bb 100644
--- a/test/e2e_cli/e2e_cli_suite_test.go
+++ b/test/functional_tests/e2e_cli/e2e_cli_suite_test.go
@@ -15,7 +15,7 @@ import (
 	_ "k8s.io/client-go/plugin/pkg/client/auth"
 
 	// Register tests
-	_ "github.com/loft-sh/vcluster/test/e2e_cli/connect"
+	_ "github.com/loft-sh/vcluster/test/functional_tests/e2e_cli/connect"
 )
 
 var (
diff --git a/test/e2e_cli/values.yaml b/test/functional_tests/e2e_cli/values.yaml
similarity index 100%
rename from test/e2e_cli/values.yaml
rename to test/functional_tests/e2e_cli/values.yaml
diff --git a/test/e2e_generic/clusterscope/ingressclasses.go b/test/functional_tests/e2e_generic/clusterscope/ingressclasses.go
similarity index 100%
rename from test/e2e_generic/clusterscope/ingressclasses.go
rename to test/functional_tests/e2e_generic/clusterscope/ingressclasses.go
diff --git a/test/e2e_generic/e2e_generic_suite_test.go b/test/functional_tests/e2e_generic/e2e_generic_suite_test.go
similarity index 91%
rename from test/e2e_generic/e2e_generic_suite_test.go
rename to test/functional_tests/e2e_generic/e2e_generic_suite_test.go
index 640b9fdb46..b349021dca 100644
--- a/test/e2e_generic/e2e_generic_suite_test.go
+++ b/test/functional_tests/e2e_generic/e2e_generic_suite_test.go
@@ -15,7 +15,7 @@ import (
 	_ "k8s.io/client-go/plugin/pkg/client/auth"
 
 	// Register tests
-	_ "github.com/loft-sh/vcluster/test/e2e_generic/clusterscope"
+	_ "github.com/loft-sh/vcluster/test/functional_tests/e2e_generic/clusterscope"
 )
 
 var (
diff --git a/test/e2e_generic/values.yaml b/test/functional_tests/e2e_generic/values.yaml
similarity index 100%
rename from test/e2e_generic/values.yaml
rename to test/functional_tests/e2e_generic/values.yaml
diff --git a/test/e2e_isolation_mode/e2e_isolation_mode_test.go b/test/functional_tests/e2e_isolation_mode/e2e_isolation_mode_test.go
similarity index 69%
rename from test/e2e_isolation_mode/e2e_isolation_mode_test.go
rename to test/functional_tests/e2e_isolation_mode/e2e_isolation_mode_test.go
index 7bfc9e4796..103d2b3f08 100644
--- a/test/e2e_isolation_mode/e2e_isolation_mode_test.go
+++ b/test/functional_tests/e2e_isolation_mode/e2e_isolation_mode_test.go
@@ -19,17 +19,17 @@ import (
 	_ "k8s.io/client-go/plugin/pkg/client/auth"
 
 	// Register tests
-	_ "github.com/loft-sh/vcluster/test/e2e/coredns"
-	_ "github.com/loft-sh/vcluster/test/e2e/k8sdefaultendpoint"
-	_ "github.com/loft-sh/vcluster/test/e2e/manifests"
-	_ "github.com/loft-sh/vcluster/test/e2e/node"
-	_ "github.com/loft-sh/vcluster/test/e2e/servicesync"
-	_ "github.com/loft-sh/vcluster/test/e2e/syncer/networkpolicies"
-	_ "github.com/loft-sh/vcluster/test/e2e/syncer/pods"
-	_ "github.com/loft-sh/vcluster/test/e2e/syncer/pvc"
-	_ "github.com/loft-sh/vcluster/test/e2e/syncer/services"
-	_ "github.com/loft-sh/vcluster/test/e2e/webhook"
-	_ "github.com/loft-sh/vcluster/test/e2e_isolation_mode/isolation"
+	_ "github.com/loft-sh/vcluster/test/functional_tests/e2e/coredns"
+	_ "github.com/loft-sh/vcluster/test/functional_tests/e2e/k8sdefaultendpoint"
+	_ "github.com/loft-sh/vcluster/test/functional_tests/e2e/manifests"
+	_ "github.com/loft-sh/vcluster/test/functional_tests/e2e/node"
+	_ "github.com/loft-sh/vcluster/test/functional_tests/e2e/servicesync"
+	_ "github.com/loft-sh/vcluster/test/functional_tests/e2e/syncer/networkpolicies"
+	_ "github.com/loft-sh/vcluster/test/functional_tests/e2e/syncer/pods"
+	_ "github.com/loft-sh/vcluster/test/functional_tests/e2e/syncer/pvc"
+	_ "github.com/loft-sh/vcluster/test/functional_tests/e2e/syncer/services"
+	_ "github.com/loft-sh/vcluster/test/functional_tests/e2e/webhook"
+	_ "github.com/loft-sh/vcluster/test/functional_tests/e2e_isolation_mode/isolation"
 )
 
 var (
diff --git a/test/e2e_isolation_mode/isolation/isolated.go b/test/functional_tests/e2e_isolation_mode/isolation/isolated.go
similarity index 100%
rename from test/e2e_isolation_mode/isolation/isolated.go
rename to test/functional_tests/e2e_isolation_mode/isolation/isolated.go
diff --git a/test/e2e_isolation_mode/values.yaml b/test/functional_tests/e2e_isolation_mode/values.yaml
similarity index 100%
rename from test/e2e_isolation_mode/values.yaml
rename to test/functional_tests/e2e_isolation_mode/values.yaml
diff --git a/test/e2e_metrics_proxy/e2e_metrics_proxy_test.go b/test/functional_tests/e2e_metrics_proxy/e2e_metrics_proxy_test.go
similarity index 95%
rename from test/e2e_metrics_proxy/e2e_metrics_proxy_test.go
rename to test/functional_tests/e2e_metrics_proxy/e2e_metrics_proxy_test.go
index 99cfdcb554..272bcc34e5 100644
--- a/test/e2e_metrics_proxy/e2e_metrics_proxy_test.go
+++ b/test/functional_tests/e2e_metrics_proxy/e2e_metrics_proxy_test.go
@@ -19,7 +19,7 @@ import (
 	_ "k8s.io/client-go/plugin/pkg/client/auth"
 
 	// Register tests
-	_ "github.com/loft-sh/vcluster/test/e2e_metrics_proxy/metricsproxy"
+	_ "github.com/loft-sh/vcluster/test/functional_tests/e2e_metrics_proxy/metricsproxy"
 )
 
 var (
diff --git a/test/e2e_metrics_proxy/metricsproxy/metrics_proxy.go b/test/functional_tests/e2e_metrics_proxy/metricsproxy/metrics_proxy.go
similarity index 100%
rename from test/e2e_metrics_proxy/metricsproxy/metrics_proxy.go
rename to test/functional_tests/e2e_metrics_proxy/metricsproxy/metrics_proxy.go
diff --git a/test/e2e_metrics_proxy/values.yaml b/test/functional_tests/e2e_metrics_proxy/values.yaml
similarity index 100%
rename from test/e2e_metrics_proxy/values.yaml
rename to test/functional_tests/e2e_metrics_proxy/values.yaml
diff --git a/test/e2e_node/e2e_node_suite_test.go b/test/functional_tests/e2e_node/e2e_node_suite_test.go
similarity index 71%
rename from test/e2e_node/e2e_node_suite_test.go
rename to test/functional_tests/e2e_node/e2e_node_suite_test.go
index 3ffb0c9940..1529d1f830 100644
--- a/test/e2e_node/e2e_node_suite_test.go
+++ b/test/functional_tests/e2e_node/e2e_node_suite_test.go
@@ -19,16 +19,16 @@ import (
 	_ "k8s.io/client-go/plugin/pkg/client/auth"
 
 	// Register tests
-	_ "github.com/loft-sh/vcluster/test/e2e/coredns"
-	_ "github.com/loft-sh/vcluster/test/e2e/k8sdefaultendpoint"
-	_ "github.com/loft-sh/vcluster/test/e2e/manifests"
-	_ "github.com/loft-sh/vcluster/test/e2e/servicesync"
-	_ "github.com/loft-sh/vcluster/test/e2e/syncer/networkpolicies"
-	_ "github.com/loft-sh/vcluster/test/e2e/syncer/pods"
-	_ "github.com/loft-sh/vcluster/test/e2e/syncer/pvc"
-	_ "github.com/loft-sh/vcluster/test/e2e/syncer/services"
-	_ "github.com/loft-sh/vcluster/test/e2e/webhook"
-	_ "github.com/loft-sh/vcluster/test/e2e_node/node"
+	_ "github.com/loft-sh/vcluster/test/functional_tests/e2e/coredns"
+	_ "github.com/loft-sh/vcluster/test/functional_tests/e2e/k8sdefaultendpoint"
+	_ "github.com/loft-sh/vcluster/test/functional_tests/e2e/manifests"
+	_ "github.com/loft-sh/vcluster/test/functional_tests/e2e/servicesync"
+	_ "github.com/loft-sh/vcluster/test/functional_tests/e2e/syncer/networkpolicies"
+	_ "github.com/loft-sh/vcluster/test/functional_tests/e2e/syncer/pods"
+	_ "github.com/loft-sh/vcluster/test/functional_tests/e2e/syncer/pvc"
+	_ "github.com/loft-sh/vcluster/test/functional_tests/e2e/syncer/services"
+	_ "github.com/loft-sh/vcluster/test/functional_tests/e2e/webhook"
+	_ "github.com/loft-sh/vcluster/test/functional_tests/e2e_node/node"
 )
 
 var (
diff --git a/test/e2e_node/node/node.go b/test/functional_tests/e2e_node/node/node.go
similarity index 100%
rename from test/e2e_node/node/node.go
rename to test/functional_tests/e2e_node/node/node.go
diff --git a/test/e2e_node/values.yaml b/test/functional_tests/e2e_node/values.yaml
similarity index 100%
rename from test/e2e_node/values.yaml
rename to test/functional_tests/e2e_node/values.yaml
diff --git a/test/e2e_pause_resume/e2e_pause_resume_vcluster_test.go b/test/functional_tests/e2e_pause_resume/e2e_pause_resume_vcluster_test.go
similarity index 95%
rename from test/e2e_pause_resume/e2e_pause_resume_vcluster_test.go
rename to test/functional_tests/e2e_pause_resume/e2e_pause_resume_vcluster_test.go
index db6eb3bf76..5fc91edf78 100644
--- a/test/e2e_pause_resume/e2e_pause_resume_vcluster_test.go
+++ b/test/functional_tests/e2e_pause_resume/e2e_pause_resume_vcluster_test.go
@@ -15,7 +15,7 @@ import (
 	_ "k8s.io/client-go/plugin/pkg/client/auth/gcp"
 	apiregistrationv1 "k8s.io/kube-aggregator/pkg/apis/apiregistration/v1"
 
-	_ "github.com/loft-sh/vcluster/test/e2e_pause_resume/pauseresume"
+	_ "github.com/loft-sh/vcluster/test/functional_tests/e2e_pause_resume/pauseresume"
 
 	// Enable cloud provider auth
 	_ "k8s.io/client-go/plugin/pkg/client/auth"
diff --git a/test/e2e_pause_resume/pauseresume/vcluster.go b/test/functional_tests/e2e_pause_resume/pauseresume/vcluster.go
similarity index 100%
rename from test/e2e_pause_resume/pauseresume/vcluster.go
rename to test/functional_tests/e2e_pause_resume/pauseresume/vcluster.go
diff --git a/test/e2e_pause_resume/values.yaml b/test/functional_tests/e2e_pause_resume/values.yaml
similarity index 100%
rename from test/e2e_pause_resume/values.yaml
rename to test/functional_tests/e2e_pause_resume/values.yaml
diff --git a/test/e2e_plugin/e2e_plugin_suite_test.go b/test/functional_tests/e2e_plugin/e2e_plugin_suite_test.go
similarity index 96%
rename from test/e2e_plugin/e2e_plugin_suite_test.go
rename to test/functional_tests/e2e_plugin/e2e_plugin_suite_test.go
index e7bdf33c03..e9fb9d6134 100644
--- a/test/e2e_plugin/e2e_plugin_suite_test.go
+++ b/test/functional_tests/e2e_plugin/e2e_plugin_suite_test.go
@@ -15,7 +15,7 @@ import (
 	_ "k8s.io/client-go/plugin/pkg/client/auth/gcp"
 	apiregistrationv1 "k8s.io/kube-aggregator/pkg/apis/apiregistration/v1"
 
-	_ "github.com/loft-sh/vcluster/test/e2e_plugin/plugin"
+	_ "github.com/loft-sh/vcluster/test/functional_tests/e2e_plugin/plugin"
 
 	// Enable cloud provider auth
 	_ "k8s.io/client-go/plugin/pkg/client/auth"
diff --git a/test/e2e_plugin/plugin/plugin.go b/test/functional_tests/e2e_plugin/plugin/plugin.go
similarity index 100%
rename from test/e2e_plugin/plugin/plugin.go
rename to test/functional_tests/e2e_plugin/plugin/plugin.go
diff --git a/test/e2e_plugin/values.yaml b/test/functional_tests/e2e_plugin/values.yaml
similarity index 100%
rename from test/e2e_plugin/values.yaml
rename to test/functional_tests/e2e_plugin/values.yaml
diff --git a/test/e2e_rootless/e2e_rootless_mode_suite_test.go b/test/functional_tests/e2e_rootless/e2e_rootless_mode_suite_test.go
similarity index 69%
rename from test/e2e_rootless/e2e_rootless_mode_suite_test.go
rename to test/functional_tests/e2e_rootless/e2e_rootless_mode_suite_test.go
index cf683775b7..903c0dbe39 100644
--- a/test/e2e_rootless/e2e_rootless_mode_suite_test.go
+++ b/test/functional_tests/e2e_rootless/e2e_rootless_mode_suite_test.go
@@ -19,17 +19,17 @@ import (
 	_ "k8s.io/client-go/plugin/pkg/client/auth"
 
 	// Register tests
-	_ "github.com/loft-sh/vcluster/test/e2e/coredns"
-	_ "github.com/loft-sh/vcluster/test/e2e/k8sdefaultendpoint"
-	_ "github.com/loft-sh/vcluster/test/e2e/manifests"
-	_ "github.com/loft-sh/vcluster/test/e2e/node"
-	_ "github.com/loft-sh/vcluster/test/e2e/servicesync"
-	_ "github.com/loft-sh/vcluster/test/e2e/syncer/networkpolicies"
-	_ "github.com/loft-sh/vcluster/test/e2e/syncer/pods"
-	_ "github.com/loft-sh/vcluster/test/e2e/syncer/pvc"
-	_ "github.com/loft-sh/vcluster/test/e2e/syncer/services"
-	_ "github.com/loft-sh/vcluster/test/e2e/webhook"
-	_ "github.com/loft-sh/vcluster/test/e2e_rootless/rootless"
+	_ "github.com/loft-sh/vcluster/test/functional_tests/e2e/coredns"
+	_ "github.com/loft-sh/vcluster/test/functional_tests/e2e/k8sdefaultendpoint"
+	_ "github.com/loft-sh/vcluster/test/functional_tests/e2e/manifests"
+	_ "github.com/loft-sh/vcluster/test/functional_tests/e2e/node"
+	_ "github.com/loft-sh/vcluster/test/functional_tests/e2e/servicesync"
+	_ "github.com/loft-sh/vcluster/test/functional_tests/e2e/syncer/networkpolicies"
+	_ "github.com/loft-sh/vcluster/test/functional_tests/e2e/syncer/pods"
+	_ "github.com/loft-sh/vcluster/test/functional_tests/e2e/syncer/pvc"
+	_ "github.com/loft-sh/vcluster/test/functional_tests/e2e/syncer/services"
+	_ "github.com/loft-sh/vcluster/test/functional_tests/e2e/webhook"
+	_ "github.com/loft-sh/vcluster/test/functional_tests/e2e_rootless/rootless"
 )
 
 var (
diff --git a/test/e2e_rootless/rootless/rootlessmode.go b/test/functional_tests/e2e_rootless/rootless/rootlessmode.go
similarity index 100%
rename from test/e2e_rootless/rootless/rootlessmode.go
rename to test/functional_tests/e2e_rootless/rootless/rootlessmode.go
diff --git a/test/e2e_rootless/values.yaml b/test/functional_tests/e2e_rootless/values.yaml
similarity index 100%
rename from test/e2e_rootless/values.yaml
rename to test/functional_tests/e2e_rootless/values.yaml
diff --git a/test/e2e_scheduler/e2e_scheduler_suite_test.go b/test/functional_tests/e2e_scheduler/e2e_scheduler_suite_test.go
similarity index 71%
rename from test/e2e_scheduler/e2e_scheduler_suite_test.go
rename to test/functional_tests/e2e_scheduler/e2e_scheduler_suite_test.go
index 16adb50396..7507c4100c 100644
--- a/test/e2e_scheduler/e2e_scheduler_suite_test.go
+++ b/test/functional_tests/e2e_scheduler/e2e_scheduler_suite_test.go
@@ -19,16 +19,16 @@ import (
 	_ "k8s.io/client-go/plugin/pkg/client/auth"
 
 	// Register tests
-	_ "github.com/loft-sh/vcluster/test/e2e/coredns"
-	_ "github.com/loft-sh/vcluster/test/e2e/k8sdefaultendpoint"
-	_ "github.com/loft-sh/vcluster/test/e2e/manifests"
-	_ "github.com/loft-sh/vcluster/test/e2e/servicesync"
-	_ "github.com/loft-sh/vcluster/test/e2e/syncer/networkpolicies"
-	_ "github.com/loft-sh/vcluster/test/e2e/syncer/pods"
-	_ "github.com/loft-sh/vcluster/test/e2e/syncer/pvc"
-	_ "github.com/loft-sh/vcluster/test/e2e/syncer/services"
-	_ "github.com/loft-sh/vcluster/test/e2e/webhook"
-	_ "github.com/loft-sh/vcluster/test/e2e_scheduler/scheduler"
+	_ "github.com/loft-sh/vcluster/test/functional_tests/e2e/coredns"
+	_ "github.com/loft-sh/vcluster/test/functional_tests/e2e/k8sdefaultendpoint"
+	_ "github.com/loft-sh/vcluster/test/functional_tests/e2e/manifests"
+	_ "github.com/loft-sh/vcluster/test/functional_tests/e2e/servicesync"
+	_ "github.com/loft-sh/vcluster/test/functional_tests/e2e/syncer/networkpolicies"
+	_ "github.com/loft-sh/vcluster/test/functional_tests/e2e/syncer/pods"
+	_ "github.com/loft-sh/vcluster/test/functional_tests/e2e/syncer/pvc"
+	_ "github.com/loft-sh/vcluster/test/functional_tests/e2e/syncer/services"
+	_ "github.com/loft-sh/vcluster/test/functional_tests/e2e/webhook"
+	_ "github.com/loft-sh/vcluster/test/functional_tests/e2e_scheduler/scheduler"
 )
 
 var (
diff --git a/test/e2e_scheduler/scheduler/scheduler.go b/test/functional_tests/e2e_scheduler/scheduler/scheduler.go
similarity index 100%
rename from test/e2e_scheduler/scheduler/scheduler.go
rename to test/functional_tests/e2e_scheduler/scheduler/scheduler.go
diff --git a/test/e2e_scheduler/scheduler/waitforfirstconsumer.go b/test/functional_tests/e2e_scheduler/scheduler/waitforfirstconsumer.go
similarity index 100%
rename from test/e2e_scheduler/scheduler/waitforfirstconsumer.go
rename to test/functional_tests/e2e_scheduler/scheduler/waitforfirstconsumer.go
diff --git a/test/e2e_scheduler/values.yaml b/test/functional_tests/e2e_scheduler/values.yaml
similarity index 100%
rename from test/e2e_scheduler/values.yaml
rename to test/functional_tests/e2e_scheduler/values.yaml
diff --git a/test/e2e_target_namespace/e2e_target_namespace_test.go b/test/functional_tests/e2e_target_namespace/e2e_target_namespace_test.go
similarity index 95%
rename from test/e2e_target_namespace/e2e_target_namespace_test.go
rename to test/functional_tests/e2e_target_namespace/e2e_target_namespace_test.go
index eb41b07caa..d1345035a4 100644
--- a/test/e2e_target_namespace/e2e_target_namespace_test.go
+++ b/test/functional_tests/e2e_target_namespace/e2e_target_namespace_test.go
@@ -16,7 +16,7 @@ import (
 	apiregistrationv1 "k8s.io/kube-aggregator/pkg/apis/apiregistration/v1"
 
 	// Enable cloud provider auth
-	_ "github.com/loft-sh/vcluster/test/e2e_target_namespace/targetnamespace"
+	_ "github.com/loft-sh/vcluster/test/functional_tests/e2e_target_namespace/targetnamespace"
 	_ "k8s.io/client-go/plugin/pkg/client/auth"
 	// Register tests
 )
diff --git a/test/e2e_target_namespace/role.yaml b/test/functional_tests/e2e_target_namespace/role.yaml
similarity index 100%
rename from test/e2e_target_namespace/role.yaml
rename to test/functional_tests/e2e_target_namespace/role.yaml
diff --git a/test/e2e_target_namespace/targetnamespace/target_namespace.go b/test/functional_tests/e2e_target_namespace/targetnamespace/target_namespace.go
similarity index 100%
rename from test/e2e_target_namespace/targetnamespace/target_namespace.go
rename to test/functional_tests/e2e_target_namespace/targetnamespace/target_namespace.go
diff --git a/test/e2e_target_namespace/values.yaml b/test/functional_tests/e2e_target_namespace/values.yaml
similarity index 100%
rename from test/e2e_target_namespace/values.yaml
rename to test/functional_tests/e2e_target_namespace/values.yaml
diff --git a/test/multins_values.yaml b/test/functional_tests/multins_values.yaml
similarity index 100%
rename from test/multins_values.yaml
rename to test/functional_tests/multins_values.yaml
diff --git a/test/proValues.yaml b/test/functional_tests/proValues.yaml
similarity index 100%
rename from test/proValues.yaml
rename to test/functional_tests/proValues.yaml
diff --git a/test/values_ha.yaml b/test/functional_tests/values_ha.yaml
similarity index 100%
rename from test/values_ha.yaml
rename to test/functional_tests/values_ha.yaml