diff --git a/Dockerfile b/Dockerfile
index c1659317d..dd819eaa5 100644
--- a/Dockerfile
+++ b/Dockerfile
@@ -1,5 +1,5 @@
 # Build the manager binary
-FROM golang:1.21.1 as builder
+FROM golang:1.21.1 AS builder
 
 WORKDIR /workspace
 # Copy the Go Modules manifests
diff --git a/config/default/kustomization-cluster.yaml b/config/default/kustomization-cluster.yaml
index fa36d8a21..ca162baf7 100644
--- a/config/default/kustomization-cluster.yaml
+++ b/config/default/kustomization-cluster.yaml
@@ -130,4 +130,8 @@ patches:
       - name: POD_NAME
         valueFrom:
           fieldRef:
-            fieldPath: metadata.name
\ No newline at end of file
+            fieldPath: metadata.name
+      - name: OPERATOR_NAMESPACE
+        valueFrom:
+          fieldRef:
+            fieldPath: metadata.namespace 
\ No newline at end of file
diff --git a/config/default/kustomization-namespace.yaml b/config/default/kustomization-namespace.yaml
index c8d7cf58d..ce0d66eac 100644
--- a/config/default/kustomization-namespace.yaml
+++ b/config/default/kustomization-namespace.yaml
@@ -132,4 +132,8 @@ patches:
       - name: POD_NAME
         valueFrom:
           fieldRef:
-            fieldPath: metadata.name
\ No newline at end of file
+            fieldPath: metadata.name
+      - name: OPERATOR_NAMESPACE
+        valueFrom:
+          fieldRef:
+            fieldPath: metadata.namespace
\ No newline at end of file
diff --git a/config/default/kustomization.yaml b/config/default/kustomization.yaml
index 71bb89d95..66fe644db 100644
--- a/config/default/kustomization.yaml
+++ b/config/default/kustomization.yaml
@@ -130,4 +130,8 @@ patches:
       - name: POD_NAME
         valueFrom:
           fieldRef:
-            fieldPath: metadata.name
\ No newline at end of file
+            fieldPath: metadata.name
+      - name: OPERATOR_NAMESPACE
+        valueFrom:
+          fieldRef:
+            fieldPath: metadata.namespace
\ No newline at end of file
diff --git a/config/manager/config.properties b/config/manager/config.properties
index d7e9cf677..8a6dd175c 100644
--- a/config/manager/config.properties
+++ b/config/manager/config.properties
@@ -1,3 +1,4 @@
 OPERATOR_NAME="splunk-operator"
 WATCH_NAMESPACE
-RELATED_IMAGE_SPLUNK_ENTERPRISE
\ No newline at end of file
+RELATED_IMAGE_SPLUNK_ENTERPRISE
+SPLUNK_LEVEL_2=true
\ No newline at end of file
diff --git a/pkg/splunk/enterprise/clustermanager.go b/pkg/splunk/enterprise/clustermanager.go
index 4ba7ca38a..ddc9ace75 100644
--- a/pkg/splunk/enterprise/clustermanager.go
+++ b/pkg/splunk/enterprise/clustermanager.go
@@ -185,10 +185,13 @@ func ApplyClusterManager(ctx context.Context, client splcommon.ControllerClient,
 		return result, err
 	}
 
-	// check if the ClusterManager is ready for version upgrade, if required
-	continueReconcile, err := UpgradePathValidation(ctx, client, cr, cr.Spec.CommonSplunkSpec, nil)
-	if err != nil || !continueReconcile {
-		return result, err
+	supported, err := CheckSplunkLevel2Config(ctx, client)
+	if err != nil && supported {
+		// check if the ClusterManager is ready for version upgrade, if required
+		continueReconcile, err := UpgradePathValidation(ctx, client, cr, cr.Spec.CommonSplunkSpec, nil)
+		if err != nil || !continueReconcile {
+			return result, err
+		}
 	}
 
 	clusterManagerManager := splctrl.DefaultStatefulSetPodManager{}
diff --git a/pkg/splunk/enterprise/indexercluster.go b/pkg/splunk/enterprise/indexercluster.go
index 723e3c1a6..aea2e7c7a 100644
--- a/pkg/splunk/enterprise/indexercluster.go
+++ b/pkg/splunk/enterprise/indexercluster.go
@@ -203,9 +203,12 @@ func ApplyIndexerClusterManager(ctx context.Context, client splcommon.Controller
 
 	// check if the IndexerCluster is ready for version upgrade
 	cr.Kind = "IndexerCluster"
-	continueReconcile, err := UpgradePathValidation(ctx, client, cr, cr.Spec.CommonSplunkSpec, &mgr)
-	if err != nil || !continueReconcile {
-		return result, err
+	supported, err := CheckSplunkLevel2Config(ctx, client)
+	if err != nil && supported {
+		continueReconcile, err := UpgradePathValidation(ctx, client, cr, cr.Spec.CommonSplunkSpec, &mgr)
+		if err != nil || !continueReconcile {
+			return result, err
+		}
 	}
 
 	// check if version upgrade is set
@@ -455,9 +458,12 @@ func ApplyIndexerCluster(ctx context.Context, client splcommon.ControllerClient,
 
 	// check if the IndexerCluster is ready for version upgrade
 	cr.Kind = "IndexerCluster"
-	continueReconcile, err := UpgradePathValidation(ctx, client, cr, cr.Spec.CommonSplunkSpec, &mgr)
-	if err != nil || !continueReconcile {
-		return result, err
+	supported, err := CheckSplunkLevel2Config(ctx, client)
+	if err != nil && supported {
+		continueReconcile, err := UpgradePathValidation(ctx, client, cr, cr.Spec.CommonSplunkSpec, &mgr)
+		if err != nil || !continueReconcile {
+			return result, err
+		}
 	}
 
 	// check if version upgrade is set
diff --git a/pkg/splunk/enterprise/monitoringconsole.go b/pkg/splunk/enterprise/monitoringconsole.go
index 83af4a482..e9c4ac546 100644
--- a/pkg/splunk/enterprise/monitoringconsole.go
+++ b/pkg/splunk/enterprise/monitoringconsole.go
@@ -141,10 +141,13 @@ func ApplyMonitoringConsole(ctx context.Context, client splcommon.ControllerClie
 		return result, err
 	}
 
-	// check if the Monitoring Console is ready for version upgrade, if required
-	continueReconcile, err := UpgradePathValidation(ctx, client, cr, cr.Spec.CommonSplunkSpec, nil)
-	if err != nil || !continueReconcile {
-		return result, err
+	supported, err := CheckSplunkLevel2Config(ctx, client)
+	if err != nil && supported {
+		// check if the Monitoring Console is ready for version upgrade, if required
+		continueReconcile, err := UpgradePathValidation(ctx, client, cr, cr.Spec.CommonSplunkSpec, nil)
+		if err != nil || !continueReconcile {
+			return result, err
+		}
 	}
 
 	mgr := splctrl.DefaultStatefulSetPodManager{}
diff --git a/pkg/splunk/enterprise/searchheadcluster.go b/pkg/splunk/enterprise/searchheadcluster.go
index fcaabe6cc..adc0ff437 100644
--- a/pkg/splunk/enterprise/searchheadcluster.go
+++ b/pkg/splunk/enterprise/searchheadcluster.go
@@ -166,9 +166,12 @@ func ApplySearchHeadCluster(ctx context.Context, client splcommon.ControllerClie
 		return result, err
 	}
 
-	continueReconcile, err := UpgradePathValidation(ctx, client, cr, cr.Spec.CommonSplunkSpec, nil)
-	if err != nil || !continueReconcile {
-		return result, err
+	supported, err := CheckSplunkLevel2Config(ctx, client)
+	if err != nil && supported {
+		continueReconcile, err := UpgradePathValidation(ctx, client, cr, cr.Spec.CommonSplunkSpec, nil)
+		if err != nil || !continueReconcile {
+			return result, err
+		}
 	}
 
 	deployerManager := splctrl.DefaultStatefulSetPodManager{}
diff --git a/pkg/splunk/enterprise/util.go b/pkg/splunk/enterprise/util.go
index 4a70f0d6b..4d21ab354 100644
--- a/pkg/splunk/enterprise/util.go
+++ b/pkg/splunk/enterprise/util.go
@@ -2368,3 +2368,42 @@ func changeAnnotations(ctx context.Context, c splcommon.ControllerClient, image
 	err := c.Update(ctx, cr)
 	return err
 }
+
+// CheckSplunkLevel2Config checks the "splunk-operator-config" ConfigMap in the namespace
+// specified by the "OPERATOR_NAME" environment variable. It returns true if the key
+// "SPLUNK_LEVEL_2" is not set to "false" or if there is an error fetching the ConfigMap.
+func CheckSplunkLevel2Config(ctx context.Context, c client.Client) (bool, error) {
+	// Define the ConfigMap object
+	var configMap corev1.ConfigMap
+
+	reqLogger := log.FromContext(ctx)
+	scopedLog := reqLogger.WithName("CheckSplunkLevel2Config").WithValues()
+
+	// Read the namespace from the environment variable "OPERATOR_NAME"
+    namespace := os.Getenv("OPERATOR_NAMESPACE")
+    if namespace == "" {
+        return true, fmt.Errorf("environment variable OPERATOR_NAME is not set")
+    }
+
+	// Attempt to get the ConfigMap named "splunk-operator-config" in the provided namespace
+	err := c.Get(ctx, types.NamespacedName{Name: "splunk-operator-config", Namespace: namespace}, &configMap)
+	if err != nil {
+		// Log the error and return true, as per requirements
+		scopedLog.Error(err, "Failed to fetch ConfigMap")
+		return true, err
+	}
+
+	// Extract data from the ConfigMap
+	configData := configMap.Data
+
+	// Check for the key "SPLUNK_LEVEL_2"
+	if value, exists := configData["SPLUNK_LEVEL_2"]; exists {
+		// If the value is "false", return false
+		if value == "false" {
+			return false, nil
+		}
+	}
+
+	// For any other condition, return true
+	return true, nil
+}