diff --git a/src/velero/chart/templates/uds-package.yaml b/src/velero/chart/templates/uds-package.yaml
index c255d10263..f174e96914 100644
--- a/src/velero/chart/templates/uds-package.yaml
+++ b/src/velero/chart/templates/uds-package.yaml
@@ -8,6 +8,8 @@ metadata:
   namespace: {{ .Release.Namespace }}
 spec:
   network:
+    serviceMesh:
+      mode: ambient
     allow:
       # Egress for S3 connections
       - direction: Egress