diff --git a/test/e2e/util/k8s/namespace.go b/test/e2e/util/k8s/namespace.go
index 9b28873ef9..cc5f05a0f4 100644
--- a/test/e2e/util/k8s/namespace.go
+++ b/test/e2e/util/k8s/namespace.go
@@ -35,6 +35,11 @@ import (
 
 func CreateNamespace(ctx context.Context, client TestClient, namespace string) error {
 	ns := builder.ForNamespace(namespace).Result()
+	// Add label to avoid PSA check.
+	ns.Labels = map[string]string{
+		"pod-security.kubernetes.io/enforce":         "baseline",
+		"pod-security.kubernetes.io/enforce-version": "latest",
+	}
 	_, err := client.ClientGo.CoreV1().Namespaces().Create(ctx, ns, metav1.CreateOptions{})
 	if apierrors.IsAlreadyExists(err) {
 		return nil
@@ -45,6 +50,9 @@ func CreateNamespace(ctx context.Context, client TestClient, namespace string) e
 func CreateNamespaceWithLabel(ctx context.Context, client TestClient, namespace string, label map[string]string) error {
 	ns := builder.ForNamespace(namespace).Result()
 	ns.Labels = label
+	// Add label to avoid PSA check.
+	ns.Labels["pod-security.kubernetes.io/enforce"] = "baseline"
+	ns.Labels["pod-security.kubernetes.io/enforce-version"] = "latest"
 	_, err := client.ClientGo.CoreV1().Namespaces().Create(ctx, ns, metav1.CreateOptions{})
 	if apierrors.IsAlreadyExists(err) {
 		return nil
@@ -54,6 +62,11 @@ func CreateNamespaceWithLabel(ctx context.Context, client TestClient, namespace
 
 func CreateNamespaceWithAnnotation(ctx context.Context, client TestClient, namespace string, annotation map[string]string) error {
 	ns := builder.ForNamespace(namespace).Result()
+	// Add label to avoid PSA check.
+	ns.Labels = map[string]string{
+		"pod-security.kubernetes.io/enforce":         "baseline",
+		"pod-security.kubernetes.io/enforce-version": "latest",
+	}
 	ns.ObjectMeta.Annotations = annotation
 	_, err := client.ClientGo.CoreV1().Namespaces().Create(ctx, ns, metav1.CreateOptions{})
 	if apierrors.IsAlreadyExists(err) {
diff --git a/test/e2e/util/kibishii/kibishii_utils.go b/test/e2e/util/kibishii/kibishii_utils.go
index 8406cda55b..ee244417e1 100644
--- a/test/e2e/util/kibishii/kibishii_utils.go
+++ b/test/e2e/util/kibishii/kibishii_utils.go
@@ -148,6 +148,13 @@ func installKibishii(ctx context.Context, namespace string, cloudPlatform, veler
 		return errors.Wrapf(err, "failed to install kibishii, stderr=%s", stderr)
 	}
 
+	labelNamespaceCmd := exec.CommandContext(ctx, "kubectl", "label", "namespace", namespace, "pod-security.kubernetes.io/enforce=baseline", "pod-security.kubernetes.io/enforce-version=latest", "--overwrite=true")
+	_, stderr, err = veleroexec.RunCommand(labelNamespaceCmd)
+	fmt.Printf("Label namespace with PSA policy: %s\n", labelNamespaceCmd)
+	if err != nil {
+		return errors.Wrapf(err, "failed to label namespace with PSA policy, stderr=%s", stderr)
+	}
+
 	kibishiiSetWaitCmd := exec.CommandContext(ctx, "kubectl", "rollout", "status", "statefulset.apps/kibishii-deployment",
 		"-n", namespace, "-w", "--timeout=30m")
 	_, stderr, err = veleroexec.RunCommand(kibishiiSetWaitCmd)