diff --git a/pkg/utils/gitrepo_test.go b/pkg/utils/gitrepo_test.go
index 29cc5933..bf802359 100644
--- a/pkg/utils/gitrepo_test.go
+++ b/pkg/utils/gitrepo_test.go
@@ -611,7 +611,7 @@ func TestSortResources(t *testing.T) {
 	chartDirs, kustomizeDirs, crdsAndNamespaceFiles, rbacFiles, otherFiles, err := SortResources("../..", "../../test/github")
 	g.Expect(err).NotTo(gomega.HaveOccurred())
 	g.Expect(len(chartDirs)).To(gomega.Equal(4))
-	g.Expect(len(kustomizeDirs)).To(gomega.Equal(7))
+	g.Expect(len(kustomizeDirs)).To(gomega.Equal(9))
 	g.Expect(len(crdsAndNamespaceFiles)).To(gomega.Equal(2))
 	g.Expect(len(rbacFiles)).To(gomega.Equal(3))
 	g.Expect(len(otherFiles)).To(gomega.Equal(5))
diff --git a/test/github/kustomizeLabels/base/KlusterletAddonConfig.yaml b/test/github/kustomizeLabels/base/KlusterletAddonConfig.yaml
new file mode 100644
index 00000000..f51a1285
--- /dev/null
+++ b/test/github/kustomizeLabels/base/KlusterletAddonConfig.yaml
@@ -0,0 +1,23 @@
+---
+apiVersion: agent.open-cluster-management.io/v1
+kind: KlusterletAddonConfig
+metadata:
+  name: REPLACED BY KUSTOMIZE
+  namespace: REPLACED BY KUSTOMIZE
+spec:
+  clusterName: REPLACED BY KUSTOMIZE
+  clusterNamespace: REPLACED BY KUSTOMIZE
+  applicationManager:
+    enabled: true
+  certPolicyController:
+    enabled: true
+  clusterLabels:
+    cloud: auto-detect
+    vendor: auto-detect
+  iamPolicyController:
+    enabled: true
+  policyController:
+    enabled: true
+  searchCollector:
+    enabled: true
+  version: 2.2.0
diff --git a/test/github/kustomizeLabels/base/ManagedCluster.yaml b/test/github/kustomizeLabels/base/ManagedCluster.yaml
new file mode 100644
index 00000000..7a803221
--- /dev/null
+++ b/test/github/kustomizeLabels/base/ManagedCluster.yaml
@@ -0,0 +1,10 @@
+---
+apiVersion: cluster.open-cluster-management.io/v1
+kind: ManagedCluster
+metadata:
+  name: REPLACED BY KUSTOMIZE
+  namespace: REPLACED BY KUSTOMIZE
+  labels: #LABELS ADDED BY KUSTOMIZE
+    
+spec:
+  hubAcceptsClient: true
diff --git a/test/github/kustomizeLabels/base/Namespace.yaml b/test/github/kustomizeLabels/base/Namespace.yaml
new file mode 100644
index 00000000..41a793ab
--- /dev/null
+++ b/test/github/kustomizeLabels/base/Namespace.yaml
@@ -0,0 +1,7 @@
+---
+kind: Namespace
+apiVersion: v1
+metadata:
+  name: REPLACED BY KUSTOMIZE
+  labels:
+    #cluster.open-cluster-management.io/managedCluster:  
diff --git a/test/github/kustomizeLabels/base/kustomization.yaml b/test/github/kustomizeLabels/base/kustomization.yaml
new file mode 100644
index 00000000..1f0d0066
--- /dev/null
+++ b/test/github/kustomizeLabels/base/kustomization.yaml
@@ -0,0 +1,7 @@
+apiVersion: kustomize.config.k8s.io/v1beta1
+kind: Kustomization
+
+resources:
+  - KlusterletAddonConfig.yaml
+  - ManagedCluster.yaml
+  - Namespace.yaml
diff --git a/test/github/kustomizeLabels/namctigtd27d/kustomization.yaml b/test/github/kustomizeLabels/namctigtd27d/kustomization.yaml
new file mode 100644
index 00000000..a29545be
--- /dev/null
+++ b/test/github/kustomizeLabels/namctigtd27d/kustomization.yaml
@@ -0,0 +1,42 @@
+resources:
+- ../base
+
+patches:
+- target:
+    kind: KlusterletAddonConfig
+  patch: |
+    - op: replace
+      path: /metadata/name
+      value: "namctigtd27d"
+    - op: replace
+      path: /metadata/namespace
+      value: "namctigtd27d"
+    - op: replace
+      path: /spec/clusterName
+      value: "namctigtd27d"
+    - op: replace
+      path: /spec/clusterNamespace
+      value: "namctigtd27d"
+- target:
+    kind: ManagedCluster
+  patch: |
+    - op: replace
+      path: /metadata/name
+      value: "namctigtd27d"
+    - op: replace
+      path: /metadata/namespace
+      value: "namctigtd27d"
+    - op: add
+      path: /metadata/labels
+      value: 
+        environment: dev
+        test1: test1
+        test2: test2
+        vault-csi-provider-enabled: true
+
+- target:
+    kind: Namespace
+  patch: |
+    - op: replace
+      path: /metadata/name
+      value: "namctigtd27d"