diff --git a/.github/workflows/kind-e2e.yaml b/.github/workflows/kind-e2e.yaml
index edfa0135e0ce..32bb6b2469c0 100644
--- a/.github/workflows/kind-e2e.yaml
+++ b/.github/workflows/kind-e2e.yaml
@@ -95,6 +95,7 @@ jobs:
         - kourier
         - kourier-tls
         - istio
+        - istio-ambient
         - contour
         # Disabled due to consistent failures
         # - gateway_istio
@@ -117,6 +118,11 @@ jobs:
         - ingress: istio
           namespace-resources: virtualservices
 
+        - ingress: istio-ambient
+          namespace-resources: virtualservices
+          ingress-class: istio
+          ambient: 1
+
         - ingress: kourier-tls
           ingress-class: kourier
           enable-tls: 1
@@ -134,6 +140,7 @@ jobs:
       KIND: 1
       INGRESS_CLASS: ${{ matrix.ingress-class || matrix.ingress }}.ingress.networking.knative.dev
       ENABLE_TLS: ${{ matrix.enable-tls || 0 }}
+      AMBIENT: ${{ matrix.ambient || 0 }}
 
     steps:
     - name: Set up Go 1.19.x
diff --git a/test/config/ytt/ambient/istio-injection.yaml b/test/config/ytt/ambient/istio-injection.yaml
new file mode 100644
index 000000000000..e72748bad739
--- /dev/null
+++ b/test/config/ytt/ambient/istio-injection.yaml
@@ -0,0 +1,24 @@
+#@ load("@ytt:overlay", "overlay")
+#@ load("@ytt:data", "data")
+#@ load("helpers.lib.yaml", "subset")
+
+#@ def namespaces():
+#@   names = [
+#@    data.values.serving.namespaces.system,
+#@    data.values.serving.namespaces.test.default,
+#@    data.values.serving.namespaces.test.alternate,
+#@    data.values.serving.namespaces.test.tls,
+#@   ]
+#@   matches = []
+#@   for name in names:
+#@     matches.append(subset(name=name, kind="Namespace"))
+#@   end
+#@   return overlay.or_op(*matches)
+#@ end
+
+#@overlay/match by=namespaces(), expects="1+"
+---
+#@overlay/match-child-defaults missing_ok=True
+metadata:
+  labels:
+    istio.io/dataplane-mode: ambient
diff --git a/test/config/ytt/ambient/kapp-order.yaml b/test/config/ytt/ambient/kapp-order.yaml
new file mode 100644
index 000000000000..320e5f6f4628
--- /dev/null
+++ b/test/config/ytt/ambient/kapp-order.yaml
@@ -0,0 +1,22 @@
+#! ztunnel have to be deployed before istio-cni-node.
+#! TODO: Remove this ordering if https://github.com/istio/istio/issues/45781 was solved.
+
+#@ load("@ytt:overlay", "overlay")
+#@ load("helpers.lib.yaml", "subset", "label_subset")
+
+#@overlay/match by=subset(kind="DaemonSet", name="ztunnel"), expects="1+"
+---
+metadata:
+  #@overlay/match missing_ok=True
+  annotations:
+    #@overlay/match missing_ok=True
+    kapp.k14s.io/change-group: "ztunnel"
+
+#@overlay/match by=subset(kind="DaemonSet", name="istio-cni-node"), expects="1+"
+---
+metadata:
+  #@overlay/match missing_ok=True
+  #@overlay/match-child-defaults missing_ok=True
+  annotations:
+    kapp.k14s.io/change-group: "istio-cni-node"
+    kapp.k14s.io/change-rule: "upsert after upserting ztunnel"
diff --git a/test/e2e-common.sh b/test/e2e-common.sh
index 93c7e90bfd05..242d984b698d 100644
--- a/test/e2e-common.sh
+++ b/test/e2e-common.sh
@@ -36,6 +36,7 @@ export SHORT=0
 export ENABLE_HA=0
 export ENABLE_TLS=${ENABLE_TLS:-0}
 export MESH=0
+export AMBIENT=${AMBIENT:-0}
 export PERF=0
 export KIND=${KIND:-0}
 export CLUSTER_DOMAIN=${CLUSTER_DOMAIN:-cluster.local}
@@ -302,6 +303,10 @@ function install() {
     YTT_FILES+=("${REPO_ROOT_DIR}/test/config/ytt/mesh")
   fi
 
+  if ((AMBIENT)); then
+    YTT_FILES+=("${REPO_ROOT_DIR}/test/config/ytt/ambient")
+  fi
+
   if (( ENABLE_HA )); then
     YTT_FILES+=("${E2E_YAML_DIR}/test/config/chaosduck/chaosduck.yaml")
     YTT_FILES+=("${REPO_ROOT_DIR}/test/config/ytt/ha")
diff --git a/test/e2e-networking-library.sh b/test/e2e-networking-library.sh
index eaa428d1a71e..39b6f2497263 100644
--- a/test/e2e-networking-library.sh
+++ b/test/e2e-networking-library.sh
@@ -103,7 +103,11 @@ function net_istio_file_url() {
   local profile="istio-ci-no-mesh"
 
   if (( KIND )); then
-    profile="istio-kind-no-mesh"
+    if (( AMBIENT )); then
+      profile="istio-kind-ambient"
+    else
+      profile="istio-kind-no-mesh"
+    fi
   elif (( MESH )); then
     profile="istio-ci-mesh"
   fi