diff --git a/pkg/kubefedctl/federate/federate.go b/pkg/kubefedctl/federate/federate.go
index df90977140..338306cf31 100644
--- a/pkg/kubefedctl/federate/federate.go
+++ b/pkg/kubefedctl/federate/federate.go
@@ -247,7 +247,7 @@ func FederateResources(resources []*unstructured.Unstructured) ([]*unstructured.
 			Version:      gvk.Version,
 			Kind:         gvk.Kind,
 		}
-		apiResource.Namespaced = targetResource.GetNamespace() == ""
+		apiResource.Namespaced = targetResource.GetNamespace() != ""
 
 		qualifiedName := ctlutil.NewQualifiedName(targetResource)
 		typeConfig := enable.GenerateTypeConfigForTarget(apiResource, enable.NewEnableTypeDirective())
diff --git a/pkg/kubefedctl/federate/federate_test.go b/pkg/kubefedctl/federate/federate_test.go
new file mode 100644
index 0000000000..e905316e80
--- /dev/null
+++ b/pkg/kubefedctl/federate/federate_test.go
@@ -0,0 +1,81 @@
+/*
+Copyright 2018 The Kubernetes Authors.
+
+Licensed under the Apache License, Version 2.0 (the "License");
+you may not use this file except in compliance with the License.
+You may obtain a copy of the License at
+
+    http://www.apache.org/licenses/LICENSE-2.0
+
+Unless required by applicable law or agreed to in writing, software
+distributed under the License is distributed on an "AS IS" BASIS,
+WITHOUT WARRANTIES OR CONDITIONS OF ANY KIND, either express or implied.
+See the License for the specific language governing permissions and
+limitations under the License.
+*/
+
+package federate_test
+
+import (
+	"testing"
+
+	"github.com/stretchr/testify/assert"
+	"k8s.io/apimachinery/pkg/apis/meta/v1/unstructured"
+	"k8s.io/apimachinery/pkg/runtime/schema"
+	"sigs.k8s.io/kubefed/pkg/kubefedctl/federate"
+)
+
+func TestFederateResources(t *testing.T) {
+	var resource = &unstructured.Unstructured{}
+	resource.Object = map[string]interface{}{
+		"name": "name",
+		"spec": map[string]interface{}{
+			"replicas": "2",
+			"selector": map[string]interface{}{
+				"matchLabels": map[string]interface{}{
+					"foo": "bar",
+				},
+			},
+			"template": map[string]interface{}{
+				"labels": map[string]interface{}{
+					"foo": "bar",
+				},
+			},
+		},
+	}
+	resource.SetGroupVersionKind(schema.GroupVersionKind{
+		Group:   "apps",
+		Kind:    "Deployment",
+		Version: "v1",
+	})
+
+	t.Run("TestNonNameSpacedDeployment", func(t *testing.T) {
+		federatedResources, err := federate.FederateResources([]*unstructured.Unstructured{resource})
+		assert.NoError(t, err, "Should not expect any errorr")
+		assert.Len(t, federatedResources, 1, "Should return a federated resource")
+
+		federatedResource := federatedResources[0]
+
+		assert.Empty(t, federatedResource.GetNamespace(), "Should not return a namespaces if not set")
+		assert.Equal(t, "FederatedDeployment", federatedResource.GetKind(), "Federated Resources should return a federated crd")
+		assert.Equal(t, "types.kubefed.io/v1beta1", federatedResource.GetAPIVersion(), "federated resourece should return correct api-version")
+		federatedSpec := federatedResource.Object["spec"].(map[string]interface{})["template"].(map[string]interface{})["spec"]
+		assert.Equal(t, resource.Object["spec"], federatedSpec)
+	})
+
+	t.Run("TestNameSpacedDeployment", func(t *testing.T) {
+		testNS := "testNS"
+		resource.SetNamespace(testNS)
+		federatedResources, err := federate.FederateResources([]*unstructured.Unstructured{resource})
+		assert.NoError(t, err, "Should not expect any errorr")
+		assert.Len(t, federatedResources, 1, "Should return a federated resource")
+
+		federatedResource := federatedResources[0]
+		assert.Equal(t, testNS, federatedResource.GetNamespace(), "A namespaces should be set and match orignal resource")
+		assert.Equal(t, "FederatedDeployment", federatedResource.GetKind(), "Federated Resources should return a federated crd")
+		assert.Equal(t, "types.kubefed.io/v1beta1", federatedResource.GetAPIVersion(), "federated resourece should return correct api-version")
+		federatedSpec := federatedResource.Object["spec"].(map[string]interface{})["template"].(map[string]interface{})["spec"]
+		assert.Equal(t, resource.Object["spec"], federatedSpec)
+	})
+
+}