diff --git a/Makefile b/Makefile
index a81cd7ed769..4587016219d 100644
--- a/Makefile
+++ b/Makefile
@@ -33,7 +33,7 @@ export GOPROXY
 export GO111MODULE=on
 
 # Kubebuilder.
-export KUBEBUILDER_ENVTEST_KUBERNETES_VERSION ?= 1.20.2
+export KUBEBUILDER_ENVTEST_KUBERNETES_VERSION ?= 1.27
 export KUBEBUILDER_CONTROLPLANE_START_TIMEOUT ?= 60s
 export KUBEBUILDER_CONTROLPLANE_STOP_TIMEOUT ?= 60s
 
diff --git a/controllers/suite_test.go b/controllers/suite_test.go
index df6d57f5cd4..8b7629a06e3 100644
--- a/controllers/suite_test.go
+++ b/controllers/suite_test.go
@@ -32,7 +32,8 @@ import (
 // http://onsi.github.io/ginkgo/ to learn more about Ginkgo.
 
 var (
-	testEnv *env.TestEnvironment
+	testEnv       *env.TestEnvironment
+	testEnvCancel func()
 )
 
 func TestAPIs(t *testing.T) {
@@ -64,10 +65,13 @@ var _ = BeforeSuite(func() {
 
 	// +kubebuilder:scaffold:scheme
 
+	ctx, cancel := context.WithCancel(context.Background())
+	testEnvCancel = cancel
+
 	By("starting the manager")
 	go func() {
 		defer GinkgoRecover()
-		Expect(testEnv.StartManager()).To(Succeed())
+		Expect(testEnv.StartManager(ctx)).To(Succeed())
 	}()
 
 	Eventually(func() bool {
@@ -80,6 +84,7 @@ var _ = BeforeSuite(func() {
 })
 
 var _ = AfterSuite(func() {
+	testEnvCancel()
 	if testEnv != nil {
 		By("tearing down the test environment")
 		Expect(testEnv.Stop()).To(Succeed())
diff --git a/exp/controllers/suite_test.go b/exp/controllers/suite_test.go
index 912e580fd2a..0752b1e2e09 100644
--- a/exp/controllers/suite_test.go
+++ b/exp/controllers/suite_test.go
@@ -35,7 +35,8 @@ import (
 // http://onsi.github.io/ginkgo/ to learn more about Ginkgo.
 
 var (
-	testEnv *env.TestEnvironment
+	testEnv       *env.TestEnvironment
+	testEnvCancel func()
 )
 
 func TestAPIs(t *testing.T) {
@@ -60,10 +61,13 @@ var _ = BeforeSuite(func() {
 
 	// +kubebuilder:scaffold:scheme
 
+	mgrCtx, mgrCancel := context.WithCancel(context.Background())
+	testEnvCancel = mgrCancel
+
 	By("starting the manager")
 	go func() {
 		defer GinkgoRecover()
-		Expect(testEnv.StartManager()).To(Succeed())
+		Expect(testEnv.StartManager(mgrCtx)).To(Succeed())
 	}()
 
 	Eventually(func() bool {
@@ -76,6 +80,7 @@ var _ = BeforeSuite(func() {
 })
 
 var _ = AfterSuite(func() {
+	testEnvCancel()
 	if testEnv != nil {
 		By("tearing down the test environment")
 		Expect(testEnv.Stop()).To(Succeed())
diff --git a/internal/test/env/env.go b/internal/test/env/env.go
index b70ab948bfb..5f74c56f072 100644
--- a/internal/test/env/env.go
+++ b/internal/test/env/env.go
@@ -119,8 +119,8 @@ func NewTestEnvironment() *TestEnvironment {
 }
 
 // StartManager starts the test environment manager and blocks until the context is canceled.
-func (t *TestEnvironment) StartManager() error {
-	return t.Manager.Start(context.Background())
+func (t *TestEnvironment) StartManager(ctx context.Context) error {
+	return t.Manager.Start(ctx)
 }
 
 // Stop stops the test environment.