diff --git a/src/runtime/pkg/oci/utils_test.go b/src/runtime/pkg/oci/utils_test.go
index 43b3f5fac6..e2e61f7581 100644
--- a/src/runtime/pkg/oci/utils_test.go
+++ b/src/runtime/pkg/oci/utils_test.go
@@ -885,6 +885,9 @@ func TestAddRuntimeAnnotations(t *testing.T) {
 
 	runtimeConfig := RuntimeConfig{
 		HypervisorType: vc.QemuHypervisor,
+		HypervisorConfig: vc.HypervisorConfig{
+			EnableAnnotations: []string{"cc_init_data"},
+		},
 	}
 
 	ocispec.Annotations[vcAnnotations.DisableGuestSeccomp] = "true"
diff --git a/src/runtime/virtcontainers/pkg/annotations/annotations.go b/src/runtime/virtcontainers/pkg/annotations/annotations.go
index 03b9e9b70c..3be8a4a086 100644
--- a/src/runtime/virtcontainers/pkg/annotations/annotations.go
+++ b/src/runtime/virtcontainers/pkg/annotations/annotations.go
@@ -245,7 +245,7 @@ const (
 	EnableRootlessHypervisor = kataAnnotHypervisorPrefix + "rootless"
 
 	// Initdata is the initdata passed in when CreateVM
-	Initdata = kataConfAnnotationsPrefix + "runtime.cc_init_data"
+	Initdata = kataConfAnnotationsPrefix + "hypervisor.cc_init_data"
 )
 
 // Runtime related annotations
diff --git a/tests/integration/kubernetes/confidential_common.sh b/tests/integration/kubernetes/confidential_common.sh
index 617deaf6a0..8df00fe749 100644
--- a/tests/integration/kubernetes/confidential_common.sh
+++ b/tests/integration/kubernetes/confidential_common.sh
@@ -174,7 +174,7 @@ function create_coco_pod_yaml() {
 # This function creates pod yaml. Parameters
 # - $1: image reference
 # - $2: annotation `io.katacontainers.config.hypervisor.kernel_params`
-# - $3: anootation `io.katacontainers.config.runtime.cc_init_data`
+# - $3: annotation `io.katacontainers.config.hypervisor.cc_init_data`
 # - $4: node
 function create_coco_pod_yaml_with_annotations() {
 	image=$1
@@ -183,7 +183,7 @@ function create_coco_pod_yaml_with_annotations() {
 	node=${4:-}
 
 	kernel_params_annotation_key="io.katacontainers.config.hypervisor.kernel_params"
-	cc_initdata_annotation_key="io.katacontainers.config.runtime.cc_init_data"
+	cc_initdata_annotation_key="io.katacontainers.config.hypervisor.cc_init_data"
 
 	# Note: this is not local as we use it in the caller test
 	kata_pod="$(new_pod_config "$image" "kata-${KATA_HYPERVISOR}")"