diff --git a/Makefile b/Makefile
index c0659d7ba8..31b08ff782 100644
--- a/Makefile
+++ b/Makefile
@@ -209,6 +209,10 @@ manifests-generate: $(CONTROLLER_GEN)
 manifests-kustomize: $(KUSTOMIZE)
 	$< build config/default > config/render/capm3.yaml
 
+.PHONY: manifests-generate-namespaced
+manifests-generate-namespaced: manifests-generate $(KUSTOMIZE)
+	$(KUSTOMIZE) build config/overlays/namespaced > config/render/capm3.yaml
+
 .PHONY: set-manifest-image-bmo
 set-manifest-image-bmo: $(KUSTOMIZE) manifests
 	$(info Updating container image for BMO to use ${MANIFEST_IMG}:${MANIFEST_TAG})
diff --git a/config/overlays/namespaced/kustomization.yaml b/config/overlays/namespaced/kustomization.yaml
new file mode 100644
index 0000000000..955f3ad80c
--- /dev/null
+++ b/config/overlays/namespaced/kustomization.yaml
@@ -0,0 +1,49 @@
+apiVersion: kustomize.config.k8s.io/v1beta1
+kind: Kustomization
+
+bases:
+  - ../../default
+
+# The subjects and roleRef needs to be update here otherwise we lose name-prefix
+# This is of course not ideal if the name-prefix changes
+patchesStrategicMerge:
+  - namespaced-manager-patch.yaml
+  - |
+    apiVersion: rbac.authorization.k8s.io/v1
+    kind: ClusterRoleBinding
+    metadata:
+      name: baremetal-operator-manager-rolebinding
+    roleRef:
+      kind: Role
+      name: baremetal-operator-manager-role
+    subjects:
+    - kind: ServiceAccount
+      name: baremetal-operator-controller-manager
+      namespace: baremetal-operator-system
+
+patches:
+- patch: |
+    # Add a namespace to watch
+    - op: replace
+      path: /kind
+      value: RoleBinding
+    - op: add
+      path: /metadata/namespace
+      value: single-ns-bmh
+  target:
+    group: rbac.authorization.k8s.io
+    kind: ClusterRoleBinding
+    name: baremetal-operator-manager-rolebinding
+
+- patch: |
+    # Add a namespace to watch
+    - op: replace
+      path: /kind
+      value: Role
+    - op: add
+      path: /metadata/namespace
+      value: single-ns-bmh
+  target:
+    group: rbac.authorization.k8s.io
+    kind: ClusterRole
+    name: baremetal-operator-manager-role
diff --git a/config/overlays/namespaced/namespaced-manager-patch.yaml b/config/overlays/namespaced/namespaced-manager-patch.yaml
new file mode 100644
index 0000000000..2adb5b47e3
--- /dev/null
+++ b/config/overlays/namespaced/namespaced-manager-patch.yaml
@@ -0,0 +1,13 @@
+apiVersion: apps/v1
+kind: Deployment
+metadata:
+  name: controller-manager
+  namespace: system
+spec:
+  template:
+    spec:
+      containers:
+        - name: manager
+          env:
+            - name: WATCH_NAMESPACE
+              value: "single-ns-bmh"
\ No newline at end of file
diff --git a/config/render/capm3.yaml b/config/render/capm3.yaml
index fa76809136..f79badec58 100644
--- a/config/render/capm3.yaml
+++ b/config/render/capm3.yaml
@@ -2167,9 +2167,10 @@ rules:
   - delete
 ---
 apiVersion: rbac.authorization.k8s.io/v1
-kind: ClusterRole
+kind: Role
 metadata:
   name: baremetal-operator-manager-role
+  namespace: single-ns-bmh
 rules:
 - apiGroups:
   - ""
@@ -2412,12 +2413,13 @@ subjects:
   namespace: baremetal-operator-system
 ---
 apiVersion: rbac.authorization.k8s.io/v1
-kind: ClusterRoleBinding
+kind: RoleBinding
 metadata:
   name: baremetal-operator-manager-rolebinding
+  namespace: single-ns-bmh
 roleRef:
   apiGroup: rbac.authorization.k8s.io
-  kind: ClusterRole
+  kind: Role
   name: baremetal-operator-manager-role
 subjects:
 - kind: ServiceAccount
@@ -2525,6 +2527,8 @@ spec:
         command:
         - /baremetal-operator
         env:
+        - name: WATCH_NAMESPACE
+          value: single-ns-bmh
         - name: POD_NAME
           valueFrom:
             fieldRef:
diff --git a/controllers/metal3.io/baremetalhost_controller.go b/controllers/metal3.io/baremetalhost_controller.go
index 40ece1ec62..3199b31c74 100644
--- a/controllers/metal3.io/baremetalhost_controller.go
+++ b/controllers/metal3.io/baremetalhost_controller.go
@@ -82,24 +82,24 @@ func (info *reconcileInfo) publishEvent(reason, message string) {
 	info.events = append(info.events, info.host.NewEvent(reason, message))
 }
 
-// +kubebuilder:rbac:groups=metal3.io,resources=baremetalhosts,verbs=get;list;watch;create;update;patch;delete
-// +kubebuilder:rbac:groups=metal3.io,resources=baremetalhosts/status,verbs=get;update;patch
-// +kubebuilder:rbac:groups=metal3.io,resources=baremetalhosts/finalizers,verbs=update
-// +kubebuilder:rbac:groups=metal3.io,resources=preprovisioningimages,verbs=get;list;watch;create;update;patch;delete
-// +kubebuilder:rbac:groups=metal3.io,resources=hardwaredata,verbs=get;list;watch;create;delete;patch;update
-// +kubebuilder:rbac:groups=metal3.io,resources=hardware/finalizers,verbs=update
-// +kubebuilder:rbac:groups="",resources=secrets,verbs=get;list;watch;update;delete
-// +kubebuilder:rbac:groups="",resources=events,verbs=get;list;watch;create;update;patch
+// +kubebuilder:rbac:groups=metal3.io,namespace="",resources=baremetalhosts,verbs=get;list;watch;create;update;patch;delete
+// +kubebuilder:rbac:groups=metal3.io,namespace="",resources=baremetalhosts/status,verbs=get;update;patch
+// +kubebuilder:rbac:groups=metal3.io,namespace="",resources=baremetalhosts/finalizers,verbs=update
+// +kubebuilder:rbac:groups=metal3.io,namespace="",resources=preprovisioningimages,verbs=get;list;watch;create;update;patch;delete
+// +kubebuilder:rbac:groups=metal3.io,namespace="",resources=hardwaredata,verbs=get;list;watch;create;delete;patch;update
+// +kubebuilder:rbac:groups=metal3.io,namespace="",resources=hardware/finalizers,verbs=update
+// +kubebuilder:rbac:groups="",namespace="",resources=secrets,verbs=get;list;watch;update;delete
+// +kubebuilder:rbac:groups="",namespace="",resources=events,verbs=get;list;watch;create;update;patch
 
 // Allow for managing hostfirmwaresettings, firmwareschema, bmceventsubscriptions and hostfirmwarecomponents
-//+kubebuilder:rbac:groups=metal3.io,resources=hostfirmwaresettings,verbs=get;list;watch;create;update;patch
-//+kubebuilder:rbac:groups=metal3.io,resources=firmwareschemas,verbs=get;list;watch;create;update;patch
-//+kubebuilder:rbac:groups=metal3.io,resources=bmceventsubscriptions,verbs=get;list;watch;create;update;patch
-//+kubebuilder:rbac:groups=metal3.io,resources=hostfirmwarecomponents,verbs=get;list;watch;create;update;patch
+//+kubebuilder:rbac:groups=metal3.io,namespace="",resources=hostfirmwaresettings,verbs=get;list;watch;create;update;patch
+//+kubebuilder:rbac:groups=metal3.io,namespace="",resources=firmwareschemas,verbs=get;list;watch;create;update;patch
+//+kubebuilder:rbac:groups=metal3.io,namespace="",resources=bmceventsubscriptions,verbs=get;list;watch;create;update;patch
+//+kubebuilder:rbac:groups=metal3.io,namespace="",resources=hostfirmwarecomponents,verbs=get;list;watch;create;update;patch
 
 // Allow for updating dataimage
-// +kubebuilder:rbac:groups=metal3.io,resources=dataimages,verbs=get;list;watch;create;update;patch
-// +kubebuilder:rbac:groups=metal3.io,resources=dataimages/status,verbs=get;update;patch
+// +kubebuilder:rbac:groups=metal3.io,namespace="",resources=dataimages,verbs=get;list;watch;create;update;patch
+// +kubebuilder:rbac:groups=metal3.io,namespace="",resources=dataimages/status,verbs=get;update;patch
 
 // Reconcile handles changes to BareMetalHost resources.
 func (r *BareMetalHostReconciler) Reconcile(ctx context.Context, request ctrl.Request) (result ctrl.Result, err error) {
diff --git a/controllers/metal3.io/bmceventsubscription_controller.go b/controllers/metal3.io/bmceventsubscription_controller.go
index 994cc56ddd..6041825bff 100644
--- a/controllers/metal3.io/bmceventsubscription_controller.go
+++ b/controllers/metal3.io/bmceventsubscription_controller.go
@@ -49,8 +49,8 @@ type BMCEventSubscriptionReconciler struct {
 	APIReader          client.Reader
 }
 
-//+kubebuilder:rbac:groups=metal3.io,resources=bmceventsubscriptions,verbs=get;list;watch;create;update;patch;delete
-//+kubebuilder:rbac:groups=metal3.io,resources=bmceventsubscriptions/status,verbs=get;update;patch
+//+kubebuilder:rbac:groups=metal3.io,namespace="",resources=bmceventsubscriptions,verbs=get;list;watch;create;update;patch;delete
+//+kubebuilder:rbac:groups=metal3.io,namespace="",resources=bmceventsubscriptions/status,verbs=get;update;patch
 
 func (r *BMCEventSubscriptionReconciler) Reconcile(ctx context.Context, request ctrl.Request) (result ctrl.Result, err error) {
 	reqLogger := r.Log.WithValues("bmceventsubscription", request.NamespacedName)
diff --git a/controllers/metal3.io/dataimage_controller.go b/controllers/metal3.io/dataimage_controller.go
index b24a8e9178..66203b2634 100644
--- a/controllers/metal3.io/dataimage_controller.go
+++ b/controllers/metal3.io/dataimage_controller.go
@@ -86,9 +86,9 @@ func (info *rdiInfo) publishEvent(reason, message string) {
 	info.events = append(info.events, dataImageEvent)
 }
 
-//+kubebuilder:rbac:groups=metal3.io,resources=dataimages,verbs=get;list;watch;create;update;patch;delete
-//+kubebuilder:rbac:groups=metal3.io,resources=dataimages/status,verbs=get;update;patch
-//+kubebuilder:rbac:groups=metal3.io,resources=dataimages/finalizers,verbs=update
+//+kubebuilder:rbac:groups=metal3.io,namespace="",resources=dataimages,verbs=get;list;watch;create;update;patch;delete
+//+kubebuilder:rbac:groups=metal3.io,namespace="",resources=dataimages/status,verbs=get;update;patch
+//+kubebuilder:rbac:groups=metal3.io,namespace="",resources=dataimages/finalizers,verbs=update
 
 // Reconcile is part of the main kubernetes reconciliation loop which aims to
 // move the current state of the cluster closer to the desired state.
diff --git a/controllers/metal3.io/hostfirmwarecomponents_controller.go b/controllers/metal3.io/hostfirmwarecomponents_controller.go
index f045e705bd..df072b9335 100644
--- a/controllers/metal3.io/hostfirmwarecomponents_controller.go
+++ b/controllers/metal3.io/hostfirmwarecomponents_controller.go
@@ -88,9 +88,9 @@ func (info *rhfcInfo) publishEvent(reason, message string) {
 	info.events = append(info.events, hfcEvent)
 }
 
-//+kubebuilder:rbac:groups=metal3.io,resources=hostfirmwarecomponents,verbs=get;list;watch;create;update;patch;delete
-//+kubebuilder:rbac:groups=metal3.io,resources=hostfirmwarecomponents/status,verbs=get;update;patch
-//+kubebuilder:rbac:groups=metal3.io,resources=hostfirmwarecomponents/finalizers,verbs=update
+//+kubebuilder:rbac:groups=metal3.io,namespace="",resources=hostfirmwarecomponents,verbs=get;list;watch;create;update;patch;delete
+//+kubebuilder:rbac:groups=metal3.io,namespace="",resources=hostfirmwarecomponents/status,verbs=get;update;patch
+//+kubebuilder:rbac:groups=metal3.io,namespace="",resources=hostfirmwarecomponents/finalizers,verbs=update
 
 // Reconcile handles changes to HostFirmwareComponents resources.
 func (r *HostFirmwareComponentsReconciler) Reconcile(ctx context.Context, req ctrl.Request) (result ctrl.Result, err error) {
diff --git a/controllers/metal3.io/hostfirmwaresettings_controller.go b/controllers/metal3.io/hostfirmwaresettings_controller.go
index 41ef319f8d..ab31858168 100644
--- a/controllers/metal3.io/hostfirmwaresettings_controller.go
+++ b/controllers/metal3.io/hostfirmwaresettings_controller.go
@@ -100,10 +100,10 @@ func (info *rInfo) publishEvent(reason, message string) {
 	info.events = append(info.events, hfsEvent)
 }
 
-//+kubebuilder:rbac:groups=metal3.io,resources=hostfirmwaresettings,verbs=get;list;watch;create;update;patch;delete
-//+kubebuilder:rbac:groups=metal3.io,resources=hostfirmwaresettings/status,verbs=get;update;patch
-//+kubebuilder:rbac:groups=metal3.io,resources=firmwareschemas,verbs=get;list;watch;create;update;patch;delete
-//+kubebuilder:rbac:groups=metal3.io,resources=firmwareschemas/status,verbs=get;update;patch
+//+kubebuilder:rbac:groups=metal3.io,namespace="",resources=hostfirmwaresettings,verbs=get;list;watch;create;update;patch;delete
+//+kubebuilder:rbac:groups=metal3.io,namespace="",resources=hostfirmwaresettings/status,verbs=get;update;patch
+//+kubebuilder:rbac:groups=metal3.io,namespace="",resources=firmwareschemas,verbs=get;list;watch;create;update;patch;delete
+//+kubebuilder:rbac:groups=metal3.io,namespace="",resources=firmwareschemas/status,verbs=get;update;patch
 
 // Reconcile is part of the main kubernetes reconciliation loop which aims to
 // move the current state of the cluster closer to the desired state.
diff --git a/controllers/metal3.io/preprovisioningimage_controller.go b/controllers/metal3.io/preprovisioningimage_controller.go
index 1dc3cfd055..db00fe2be3 100644
--- a/controllers/metal3.io/preprovisioningimage_controller.go
+++ b/controllers/metal3.io/preprovisioningimage_controller.go
@@ -61,9 +61,9 @@ const (
 	reasonImageBuildInvalid       imageConditionReason = "ImageBuildInvalid"
 )
 
-// +kubebuilder:rbac:groups=metal3.io,resources=preprovisioningimages,verbs=get;list;watch;update;patch
-// +kubebuilder:rbac:groups=metal3.io,resources=preprovisioningimages/status,verbs=get;update;patch
-// +kubebuilder:rbac:groups="",resources=secrets,verbs=get;list;watch;update
+// +kubebuilder:rbac:groups=metal3.io,namespace="",resources=preprovisioningimages,verbs=get;list;watch;update;patch
+// +kubebuilder:rbac:groups=metal3.io,namespace="",resources=preprovisioningimages/status,verbs=get;update;patch
+// +kubebuilder:rbac:groups="",namespace="",resources=secrets,verbs=get;list;watch;update
 
 func (r *PreprovisioningImageReconciler) Reconcile(ctx context.Context, req ctrl.Request) (ctrl.Result, error) {
 	log := r.Log.WithValues("preprovisioningimage", req.NamespacedName)
diff --git a/docs/single-ns-deploy.md b/docs/single-ns-deploy.md
new file mode 100644
index 0000000000..c4656f0f08
--- /dev/null
+++ b/docs/single-ns-deploy.md
@@ -0,0 +1,81 @@
+# How to restrict the Baremetal Operator scope
+
+The guide is based on the instructions in the
+[operator framework documentation][operator-scope].
+
+[operator-scope]: https://sdk.operatorframework.io/docs/building-operators/golang/operator-scope/
+
+
+## To generate manifests for namespace scoped BMO
+
+To generate namespace-scoped manifests, run the `manifests-generate-namespaced`
+make target. This command will create manifests specifically configured for the
+`single-ns-bmh` namespace. It uses the `config/overlays/namespaced` kustomize
+overlay to replace cluster-scoped resources with their namespace-scoped counterparts.
+
+
+## Watching resources in specific Namespaces
+
+When setting up the manager, you can use the environment variable
+`WATCH_NAMESPACE` to restrict the operator to a specific namespace. If
+`WATCH_NAMESPACE` is unset or set to an empty string, the operator will
+monitor all namespaces. To limit it to a specific namespace, set
+`WATCH_NAMESPACE` to that namespace.
+
+For example, to configure the operator to watch the same namespace where
+it is deployed, update the `config/base/manager.yaml` file. Add the
+following configuration under `spec.template.spec.containers.env`:
+
+```yaml
+- name: WATCH_NAMESPACE
+  valueFrom:
+    fieldRef:
+      fieldPath: metadata.namespace
+```
+
+## Restricting Roles and permissions
+
+When BMO is restricted to a single namespace, the RBAC permissions need
+to be updated accordingly. Instead of using `ClusterRole`, you will use
+`Role`.
+
+The `Role` is defined in the file `config/base/rbac/role_ns.yaml`. This
+file is auto-generated based on Kubebuilder RBAC markers, specifically those
+in `<some>_controller.go`. The default namespace marking is set to `""`,
+which results in a `ClusterRole`. To restrict it to a specific namespace,
+update this value accordingly.
+
+After updating the markers, generate the new manifests by running:
+
+```bash
+    make manifests
+```
+
+Ensure that `config/base/rbac/role_ns.yaml` has been updated to a `Role`.
+
+Due to limitations in Kubebuilder generation, the `RoleBinding` will not
+be updated automatically.You can manually update `config/base/rbac/role_binding.yaml`
+to achieve the desired outcome. Below is an example of how to modify the
+`role_binding.yaml` file:
+
+```yaml:
+apiVersion: rbac.authorization.k8s.io/v1
+kind: RoleBinding
+metadata:
+  name: manager-rolebinding
+  namespace: your-namespace
+roleRef:
+  apiGroup: rbac.authorization.k8s.io
+  kind: Role
+  name: manager-role
+  namespace: your-namespace
+subjects:
+- kind: ServiceAccount
+  name: controller-manager
+  namespace: system
+```
+
+Replace `your-namespace` and other fields as necessary to match your
+specific configuration.
+
+After this you can run `make manifests-kustomize` to get correct RoleBinding generated