diff --git a/README.md b/README.md
index 4e343af7..116887a5 100644
--- a/README.md
+++ b/README.md
@@ -55,7 +55,7 @@ For more about Open Cluster Management and its Policy Framework:
    **NOTE:** This will default to placing the binary in `${HOME}/.config/kustomize/plugin/`. You can
    change this by exporting `KUSTOMIZE_PLUGIN_HOME` to a different path.
 
-#### Configuration
+#### Configuration and use as a Generator
 
 1. Create a `kustomization.yaml` file that points to `PolicyGenerator` manifest(s), with any
    additional desired patches or customizations (see
@@ -80,6 +80,14 @@ For more about Open Cluster Management and its Policy Framework:
      kustomize build --enable-alpha-plugins
      ```
 
+#### Configuration and use as a Transformer
+
+The plugin can also be used as a transformer, to wrap all incoming `resources` from a 
+`kustomization.yaml` file into one Policy. This feature is somewhat experimental.
+
+An example configuration as a transformer (and its output) can be found in the
+[`examples/generator/`](./examples/generator/) folder.
+
 ### As a standalone binary
 
 In order to bypass Kustomize and run the generator binary directly:
diff --git a/examples/transformer/kustomization.yaml b/examples/transformer/kustomization.yaml
new file mode 100644
index 00000000..0466cbe4
--- /dev/null
+++ b/examples/transformer/kustomization.yaml
@@ -0,0 +1,4 @@
+resources:
+- github.com/redhat-cop/gitops-catalog/advanced-cluster-management/operator/overlays/release-2.5?ref=main
+transformers:
+- ./policyTransformer.yaml
diff --git a/examples/transformer/output.yaml b/examples/transformer/output.yaml
new file mode 100644
index 00000000..f7c9b7f3
--- /dev/null
+++ b/examples/transformer/output.yaml
@@ -0,0 +1,105 @@
+apiVersion: apps.open-cluster-management.io/v1
+kind: PlacementRule
+metadata:
+  name: placement-transformed-policy
+  namespace: default
+spec:
+  clusterSelector:
+    matchExpressions: []
+---
+apiVersion: policy.open-cluster-management.io/v1
+kind: PlacementBinding
+metadata:
+  name: binding-transformed-policy
+  namespace: default
+placementRef:
+  apiGroup: apps.open-cluster-management.io
+  kind: PlacementRule
+  name: placement-transformed-policy
+subjects:
+- apiGroup: policy.open-cluster-management.io
+  kind: Policy
+  name: transformed-policy
+---
+apiVersion: policy.open-cluster-management.io/v1
+kind: Policy
+metadata:
+  annotations:
+    policy.open-cluster-management.io/categories: CM Configuration Management
+    policy.open-cluster-management.io/controls: CM-2 Baseline Configuration
+    policy.open-cluster-management.io/standards: NIST SP 800-53
+  name: transformed-policy
+  namespace: default
+spec:
+  disabled: false
+  policy-templates:
+  - objectDefinition:
+      apiVersion: policy.open-cluster-management.io/v1
+      kind: ConfigurationPolicy
+      metadata:
+        name: transformed-policy
+      spec:
+        evaluationInterval:
+          compliant: 30m
+          noncompliant: 45s
+        object-templates:
+        - complianceType: musthave
+          objectDefinition:
+            apiVersion: v1
+            kind: Namespace
+            metadata:
+              annotations: {}
+              labels:
+                openshift.io/cluster-monitoring: "true"
+              name: open-cluster-management
+        remediationAction: inform
+        severity: low
+  - objectDefinition:
+      apiVersion: policy.open-cluster-management.io/v1
+      kind: ConfigurationPolicy
+      metadata:
+        name: transformed-policy2
+      spec:
+        evaluationInterval:
+          compliant: 30m
+          noncompliant: 45s
+        object-templates:
+        - complianceType: musthave
+          objectDefinition:
+            apiVersion: operators.coreos.com/v1
+            kind: OperatorGroup
+            metadata:
+              annotations: {}
+              name: open-cluster-management
+              namespace: open-cluster-management
+            spec:
+              targetNamespaces:
+              - open-cluster-management
+        remediationAction: inform
+        severity: low
+  - objectDefinition:
+      apiVersion: policy.open-cluster-management.io/v1
+      kind: ConfigurationPolicy
+      metadata:
+        name: transformed-policy3
+      spec:
+        evaluationInterval:
+          compliant: 30m
+          noncompliant: 45s
+        object-templates:
+        - complianceType: musthave
+          objectDefinition:
+            apiVersion: operators.coreos.com/v1alpha1
+            kind: Subscription
+            metadata:
+              annotations: {}
+              name: advanced-cluster-management
+              namespace: open-cluster-management
+            spec:
+              channel: release-2.5
+              installPlanApproval: Automatic
+              name: advanced-cluster-management
+              source: redhat-operators
+              sourceNamespace: openshift-marketplace
+        remediationAction: inform
+        severity: low
diff --git a/examples/transformer/policyTransformer.yaml b/examples/transformer/policyTransformer.yaml
new file mode 100644
index 00000000..0ab7ae03
--- /dev/null
+++ b/examples/transformer/policyTransformer.yaml
@@ -0,0 +1,16 @@
+apiVersion: policy.open-cluster-management.io/v1
+kind: PolicyGenerator
+metadata:
+  name: policy-transformer
+
+policyDefaults:
+  namespace: default
+  consolidateManifests: false
+  evaluationInterval:
+    compliant: 30m
+    noncompliant: 45s
+
+policies:
+- name: transformed-policy
+  manifests:
+  - path: stdin
diff --git a/internal/plugin.go b/internal/plugin.go
index 1e41b74b..eb5ee5ca 100644
--- a/internal/plugin.go
+++ b/internal/plugin.go
@@ -807,16 +807,18 @@ func (p *Plugin) assertValidConfig() error {
 				)
 			}
 
-			_, err := os.Stat(manifest.Path)
-			if err != nil {
-				return fmt.Errorf(
-					"could not read the manifest path %s in policy %s", manifest.Path, policy.Name,
-				)
-			}
+			if manifest.Path != "stdin" {
+				_, err := os.Stat(manifest.Path)
+				if err != nil {
+					return fmt.Errorf(
+						"could not read the manifest path %s in policy %s", manifest.Path, policy.Name,
+					)
+				}
 
-			err = verifyManifestPath(p.baseDirectory, manifest.Path)
-			if err != nil {
-				return err
+				err = verifyManifestPath(p.baseDirectory, manifest.Path)
+				if err != nil {
+					return err
+				}
 			}
 
 			evalInterval := manifest.EvaluationInterval
diff --git a/internal/utils.go b/internal/utils.go
index 84416be0..0b9b5e19 100644
--- a/internal/utils.go
+++ b/internal/utils.go
@@ -55,11 +55,13 @@ func getManifests(policyConf *types.PolicyConfig) ([][]map[string]interface{}, e
 
 			// Handle when a Kustomization directory is specified
 			hasKustomize := false
+
 			for _, f := range files {
 				_, filename := path.Split(f.Name())
 				if filename == "kustomization.yml" || filename == "kustomization.yaml" {
 					hasKustomize = true
 					manifestFiles, err = processKustomizeDir(manifest.Path)
+
 					if err != nil {
 						return nil, err
 					}
@@ -187,6 +189,27 @@ func getPolicyTemplates(policyConf *types.PolicyConfig) ([]map[string]map[string
 				continue
 			}
 
+			// Annotations with these prefixes might be added to resources by kustomize,
+			// and should be removed when the resource is wrapped in a policy.
+			prefixesToDelete := []string{
+				"config.kubernetes.io/path",
+				"config.kubernetes.io/index",
+				"config.k8s.io/id",
+				"kustomize.config.k8s.io/id",
+				"internal.config.kubernetes.io",
+			}
+			annotations, _, _ := unstructured.NestedStringMap(manifest, "metadata", "annotations")
+
+			for key := range annotations {
+				for _, prefix := range prefixesToDelete {
+					if strings.HasPrefix(key, prefix) {
+						delete(annotations, key)
+					}
+				}
+			}
+
+			_ = unstructured.SetNestedStringMap(manifest, annotations, "metadata", "annotations")
+
 			objTemplate := map[string]interface{}{
 				"complianceType":   complianceType,
 				"objectDefinition": manifest,