diff --git a/internal/service/templategenerator/templategenerator_test.go b/internal/service/templategenerator/templategenerator_test.go
index ea80823..0d6f68e 100644
--- a/internal/service/templategenerator/templategenerator_test.go
+++ b/internal/service/templategenerator/templategenerator_test.go
@@ -269,6 +269,9 @@ func TestGenerateModuleTemplateWithMandatoryFalse_Success(t *testing.T) {
 	require.Contains(t, mockFS.writtenTemplate,
 		"https://github.com/kyma-project/template-operator/releases/download/1.0.1/template-operator.yaml")
 	require.NotContains(t, mockFS.writtenTemplate, "mandatory-module")
+	require.Contains(t, mockFS.writtenTemplate, "mandatory: false")
+	require.NotContains(t, mockFS.writtenTemplate,
+		"\"operator.kyma-project.io/mandatory-module\"")
 }
 
 type mockFileSystem struct {
diff --git a/tests/e2e/create/create_test.go b/tests/e2e/create/create_test.go
index 553d297..b7f861c 100644
--- a/tests/e2e/create/create_test.go
+++ b/tests/e2e/create/create_test.go
@@ -543,8 +543,11 @@ var _ = Describe("Test 'create' command", Ordered, func() {
 			Expect(github.Type).To(Equal(githubAccessSpec.Type))
 			Expect(githubAccessSpec.RepoURL).To(Equal("https://github.com/kyma-project/template-operator"))
 
-			By("And spec.mandatory should be false")
+			By("And module template should not marked as mandatory")
 			Expect(template.Spec.Mandatory).To(BeFalse())
+			val, ok := template.Labels[shared.IsMandatoryModule]
+			Expect(val).To(BeEmpty())
+			Expect(ok).To(BeFalse())
 
 			By("And security scan labels should be correct")
 			secScanLabels := flatten(descriptor.Sources[0].Labels)