diff --git a/src/tools/genpolicy/genpolicy-settings.json b/src/tools/genpolicy/genpolicy-settings.json
index fe1625bac1..5bbb306e3f 100644
--- a/src/tools/genpolicy/genpolicy-settings.json
+++ b/src/tools/genpolicy/genpolicy-settings.json
@@ -305,7 +305,6 @@
         "oci_version": "1.1.0"
     },
     "cluster_config": {
-        "default_namespace": "default",
         "pause_container_image": "mcr.microsoft.com/oss/kubernetes/pause:3.6"
     },
     "request_defaults": {
diff --git a/src/tools/genpolicy/rules.rego b/src/tools/genpolicy/rules.rego
index b7aef4d8c5..6caba44357 100644
--- a/src/tools/genpolicy/rules.rego
+++ b/src/tools/genpolicy/rules.rego
@@ -68,7 +68,7 @@ CreateContainerRequest:= {"ops": ops, "allowed": true} {
     # check sandbox name
     sandbox_name = i_oci.Annotations[S_NAME_KEY]
     add_sandbox_name_to_state := state_allows("sandbox_name", sandbox_name)
-    ops := concat_op_if_not_null(ops_builder, add_sandbox_name_to_state)
+    ops_builder1 := concat_op_if_not_null(ops_builder, add_sandbox_name_to_state)
 
     # Check if any element from the policy_data.containers array allows the input request.
     some p_container in policy_data.containers
@@ -81,6 +81,13 @@ CreateContainerRequest:= {"ops": ops, "allowed": true} {
 
     p_oci := p_container.OCI
 
+    # check namespace
+    p_namespace := p_oci.Annotations[S_NAMESPACE_KEY]
+    i_namespace := i_oci.Annotations[S_NAMESPACE_KEY]
+    print ("CreateContainerRequest: p_namespace =", p_namespace, "i_namespace =", i_namespace)
+    add_namespace_to_state := allow_namespace(p_namespace, i_namespace)
+    ops := concat_op_if_not_null(ops_builder1, add_namespace_to_state)
+
     print("CreateContainerRequest: p Version =", p_oci.Version, "i Version =", i_oci.Version)
     p_oci.Version == i_oci.Version
 
@@ -131,6 +138,18 @@ allow_create_container_input {
     print("allow_create_container_input: true")
 }
 
+allow_namespace(p_namespace, i_namespace) = add_namespace {
+    p_namespace == i_namespace
+    add_namespace := null
+    print("allow_namespace 1: input namespace matches policy data")
+}
+
+allow_namespace(p_namespace, i_namespace) = add_namespace {
+    p_namespace == ""
+    print("allow_namespace 2: no namespace found on policy data")
+    add_namespace := state_allows("namespace", i_namespace)
+}
+
 # value hasn't been seen before, save it to state
 state_allows(key, value) = action {
   state := get_state()
@@ -241,12 +260,9 @@ allow_by_anno(p_oci, i_oci, p_storages, i_storages) {
 allow_by_sandbox_name(p_oci, i_oci, p_storages, i_storages, s_name) {
     print("allow_by_sandbox_name: start")
 
-    p_namespace := p_oci.Annotations[S_NAMESPACE_KEY]
     i_namespace := i_oci.Annotations[S_NAMESPACE_KEY]
-    print("allow_by_sandbox_name: p_namespace =", p_namespace, "i_namespace =", i_namespace)
-    p_namespace == i_namespace
 
-    allow_by_container_types(p_oci, i_oci, s_name, p_namespace)
+    allow_by_container_types(p_oci, i_oci, s_name, i_namespace)
     allow_by_bundle_or_sandbox_id(p_oci, i_oci, p_storages, i_storages)
     allow_process(p_oci, i_oci, s_name)
 
diff --git a/src/tools/genpolicy/src/policy.rs b/src/tools/genpolicy/src/policy.rs
index 973643e1f2..656e410668 100644
--- a/src/tools/genpolicy/src/policy.rs
+++ b/src/tools/genpolicy/src/policy.rs
@@ -388,8 +388,6 @@ pub struct CommonData {
 /// Configuration from "kubectl config".
 #[derive(Clone, Debug, Serialize, Deserialize)]
 pub struct ClusterConfig {
-    default_namespace: String,
-
     /// Pause container image reference.
     pub pause_container_image: String,
 }
@@ -532,15 +530,7 @@ impl AgentPolicy {
         let mut root = c_settings.Root.clone();
         root.Readonly = yaml_container.read_only_root_filesystem();
 
-        let namespace = match resource.get_namespace() {
-            Some(ns) if !ns.is_empty() => ns,
-            _ => self
-                .config
-                .settings
-                .cluster_config
-                .default_namespace
-                .clone(),
-        };
+        let namespace = resource.get_namespace().unwrap_or_default();
 
         let use_host_network = resource.use_host_network();
         let annotations = get_container_annotations(
diff --git a/tests/integration/kubernetes/k8s-limit-range.bats b/tests/integration/kubernetes/k8s-limit-range.bats
index 6bf454db78..c3f2d6f33d 100644
--- a/tests/integration/kubernetes/k8s-limit-range.bats
+++ b/tests/integration/kubernetes/k8s-limit-range.bats
@@ -15,7 +15,6 @@ setup() {
 	pod_yaml="${pod_config_dir}/pod-cpu-defaults.yaml"
 
 	policy_settings_dir="$(create_tmp_policy_settings_dir "${pod_config_dir}")"
-	set_namespace_to_policy_settings "${policy_settings_dir}" "${namespace_name}"
 	auto_generate_policy "${policy_settings_dir}" "${pod_yaml}"
 }
 
diff --git a/tests/integration/kubernetes/tests_common.sh b/tests/integration/kubernetes/tests_common.sh
index 6653322ccc..b3889baead 100644
--- a/tests/integration/kubernetes/tests_common.sh
+++ b/tests/integration/kubernetes/tests_common.sh
@@ -155,9 +155,6 @@ create_common_genpolicy_settings() {
 
 	cp "${default_genpolicy_settings_dir}/genpolicy-settings.json" "${genpolicy_settings_dir}"
 	cp "${default_genpolicy_settings_dir}/rules.rego" "${genpolicy_settings_dir}"
-
-	# Set the default namespace of Kata CI tests in the genpolicy settings.
-	set_namespace_to_policy_settings "${genpolicy_settings_dir}" "${TEST_CLUSTER_NAMESPACE}"
 }
 
 # If auto-generated policy testing is enabled, make a copy of the common genpolicy settings
@@ -273,21 +270,6 @@ add_copy_from_guest_to_policy_settings() {
 	add_exec_to_policy_settings "${policy_settings_dir}" "${exec_command[@]}"
 }
 
-# Change genpolicy settings to use a pod namespace different than "default".
-set_namespace_to_policy_settings() {
-	local -r settings_dir="$1"
-	local -r namespace="$2"
-
-	auto_generate_policy_enabled || return 0
-
-	info "${settings_dir}/genpolicy-settings.json: namespace: ${namespace}"
-	jq --arg namespace "${namespace}" \
-		'.cluster_config.default_namespace |= $namespace' \
-		"${settings_dir}/genpolicy-settings.json" > \
-		"${settings_dir}/new-genpolicy-settings.json"
-	mv "${settings_dir}/new-genpolicy-settings.json" "${settings_dir}/genpolicy-settings.json"
-}
-
 hard_coded_policy_tests_enabled() {
 	# CI is testing hard-coded policies just on a the platforms listed here. Outside of CI,
 	# users can enable testing of the same policies (plus the auto-generated policies) by