diff --git a/pkg/utils/yaml/loadpolicy.go b/pkg/utils/yaml/loadpolicy.go
index d0027e22e8..dbb5ed62d5 100644
--- a/pkg/utils/yaml/loadpolicy.go
+++ b/pkg/utils/yaml/loadpolicy.go
@@ -6,6 +6,7 @@ import (
 	"strings"
 
 	kyvernov1 "github.com/kyverno/kyverno/api/kyverno/v1"
+	kyvernov2beta1 "github.com/kyverno/kyverno/api/kyverno/v2beta1"
 	extyaml "github.com/kyverno/kyverno/ext/yaml"
 	log "github.com/kyverno/kyverno/pkg/logging"
 	"k8s.io/api/admissionregistration/v1alpha1"
@@ -15,55 +16,55 @@ import (
 )
 
 // GetPolicy extracts policies from YAML bytes
-func GetPolicy(bytes []byte) (policies []kyvernov1.PolicyInterface, validatingAdmissionPolicies []v1alpha1.ValidatingAdmissionPolicy, validatingAdmissionPolicyBindings []v1alpha1.ValidatingAdmissionPolicyBinding, err error) {
+func GetPolicy(bytes []byte) (policies []kyvernov1.PolicyInterface, validatingAdmissionPolicies []v1alpha1.ValidatingAdmissionPolicy, validatingAdmissionPolicyBindings []v1alpha1.ValidatingAdmissionPolicyBinding, policyExceptions []kyvernov2beta1.PolicyException, err error) {
 	documents, err := extyaml.SplitDocuments(bytes)
 	if err != nil {
-		return nil, nil, nil, err
+		return nil, nil, nil, nil, err
 	}
 	for _, thisPolicyBytes := range documents {
 		policyBytes, err := yaml.ToJSON(thisPolicyBytes)
 		if err != nil {
-			return nil, nil, nil, fmt.Errorf("failed to convert to JSON: %v", err)
+			return nil, nil, nil, nil, fmt.Errorf("failed to convert to JSON: %v", err)
 		}
 		us := &unstructured.Unstructured{}
 
 		if err := json.Unmarshal(policyBytes, us); err != nil {
-			return nil, nil, nil, fmt.Errorf("failed to decode policy: %v", err)
+			return nil, nil, nil, nil, fmt.Errorf("failed to decode policy: %v", err)
 		}
 		if us.IsList() {
 			list, err := us.ToList()
 			if err != nil {
-				return nil, nil, nil, fmt.Errorf("failed to decode policy list: %v", err)
+				return nil, nil, nil, nil, fmt.Errorf("failed to decode policy list: %v", err)
 			}
 
 			for i := range list.Items {
 				item := list.Items[i]
-				if policies, validatingAdmissionPolicies, validatingAdmissionPolicyBindings, err = addPolicy(policies, validatingAdmissionPolicies, validatingAdmissionPolicyBindings, &item); err != nil {
-					return nil, nil, nil, err
+				if policies, validatingAdmissionPolicies, validatingAdmissionPolicyBindings, policyExceptions, err = addPolicy(policies, validatingAdmissionPolicies, validatingAdmissionPolicyBindings, policyExceptions, &item); err != nil {
+					return nil, nil, nil, nil, err
 				}
 			}
 		} else {
-			if policies, validatingAdmissionPolicies, validatingAdmissionPolicyBindings, err = addPolicy(policies, validatingAdmissionPolicies, validatingAdmissionPolicyBindings, us); err != nil {
-				return nil, nil, nil, err
+			if policies, validatingAdmissionPolicies, validatingAdmissionPolicyBindings, policyExceptions, err = addPolicy(policies, validatingAdmissionPolicies, validatingAdmissionPolicyBindings, policyExceptions, us); err != nil {
+				return nil, nil, nil, nil, err
 			}
 		}
 	}
-	return policies, validatingAdmissionPolicies, validatingAdmissionPolicyBindings, err
+	return policies, validatingAdmissionPolicies, validatingAdmissionPolicyBindings, policyExceptions, err
 }
 
-func addPolicy(policies []kyvernov1.PolicyInterface, validatingAdmissionPolicies []v1alpha1.ValidatingAdmissionPolicy, validatingAdmissionPolicyBindings []v1alpha1.ValidatingAdmissionPolicyBinding, us *unstructured.Unstructured) ([]kyvernov1.PolicyInterface, []v1alpha1.ValidatingAdmissionPolicy, []v1alpha1.ValidatingAdmissionPolicyBinding, error) {
+func addPolicy(policies []kyvernov1.PolicyInterface, validatingAdmissionPolicies []v1alpha1.ValidatingAdmissionPolicy, validatingAdmissionPolicyBindings []v1alpha1.ValidatingAdmissionPolicyBinding, policyExceptions []kyvernov2beta1.PolicyException, us *unstructured.Unstructured) ([]kyvernov1.PolicyInterface, []v1alpha1.ValidatingAdmissionPolicy, []v1alpha1.ValidatingAdmissionPolicyBinding, []kyvernov2beta1.PolicyException, error) {
 	kind := us.GetKind()
 
 	if strings.Compare(kind, "ValidatingAdmissionPolicy") == 0 {
 		validatingAdmissionPolicy := v1alpha1.ValidatingAdmissionPolicy{}
 
 		if err := runtime.DefaultUnstructuredConverter.FromUnstructuredWithValidation(us.Object, &validatingAdmissionPolicy, true); err != nil {
-			return policies, nil, validatingAdmissionPolicyBindings, fmt.Errorf("failed to decode policy: %v", err)
+			return policies, nil, validatingAdmissionPolicyBindings, policyExceptions, fmt.Errorf("failed to decode policy: %v", err)
 		}
 
 		if validatingAdmissionPolicy.Kind == "" {
 			log.V(3).Info("skipping file as ValidatingAdmissionPolicy.Kind not found")
-			return policies, validatingAdmissionPolicies, validatingAdmissionPolicyBindings, nil
+			return policies, validatingAdmissionPolicies, validatingAdmissionPolicyBindings, policyExceptions, nil
 		}
 
 		validatingAdmissionPolicies = append(validatingAdmissionPolicies, validatingAdmissionPolicy)
@@ -71,15 +72,28 @@ func addPolicy(policies []kyvernov1.PolicyInterface, validatingAdmissionPolicies
 		validatingAdmissionPolicyBinding := v1alpha1.ValidatingAdmissionPolicyBinding{}
 
 		if err := runtime.DefaultUnstructuredConverter.FromUnstructuredWithValidation(us.Object, &validatingAdmissionPolicyBinding, true); err != nil {
-			return policies, validatingAdmissionPolicies, nil, fmt.Errorf("failed to decode policy: %v", err)
+			return policies, validatingAdmissionPolicies, nil, policyExceptions, fmt.Errorf("failed to decode policy: %v", err)
 		}
 
 		if validatingAdmissionPolicyBinding.Kind == "" {
 			log.V(3).Info("skipping file as ValidatingAdmissionPolicyBinding.Kind not found")
-			return policies, validatingAdmissionPolicies, validatingAdmissionPolicyBindings, nil
+			return policies, validatingAdmissionPolicies, validatingAdmissionPolicyBindings, policyExceptions, nil
 		}
 
 		validatingAdmissionPolicyBindings = append(validatingAdmissionPolicyBindings, validatingAdmissionPolicyBinding)
+	} else if strings.Compare(kind, "policyException") == 0 {
+		var policyException = kyvernov2beta1.PolicyException{}
+
+		if err := runtime.DefaultUnstructuredConverter.FromUnstructuredWithValidation(us.Object, &policyException, true); err != nil {
+			return policies, validatingAdmissionPolicies, validatingAdmissionPolicyBindings, nil, fmt.Errorf("failed to decode policyException: %v", err)
+		}
+
+		if policyException.Kind == "" {
+			log.V(3).Info("skipping file as policyException.Kind not found")
+			return policies, validatingAdmissionPolicies, validatingAdmissionPolicyBindings, policyExceptions, nil
+		}
+
+		policyExceptions = append(policyExceptions, policyException)
 	} else {
 		var policy kyvernov1.PolicyInterface
 		if us.GetKind() == "ClusterPolicy" {
@@ -87,19 +101,19 @@ func addPolicy(policies []kyvernov1.PolicyInterface, validatingAdmissionPolicies
 		} else if us.GetKind() == "Policy" {
 			policy = &kyvernov1.Policy{}
 		} else {
-			return policies, validatingAdmissionPolicies, validatingAdmissionPolicyBindings, nil
+			return policies, validatingAdmissionPolicies, validatingAdmissionPolicyBindings, policyExceptions, nil
 		}
 
 		if err := runtime.DefaultUnstructuredConverter.FromUnstructuredWithValidation(us.Object, policy, true); err != nil {
-			return nil, validatingAdmissionPolicies, validatingAdmissionPolicyBindings, fmt.Errorf("failed to decode policy: %v", err)
+			return nil, validatingAdmissionPolicies, validatingAdmissionPolicyBindings, policyExceptions, fmt.Errorf("failed to decode policy: %v", err)
 		}
 
 		if policy.GetKind() == "" {
 			log.V(3).Info("skipping file as policy.TypeMeta.Kind not found")
-			return policies, validatingAdmissionPolicies, validatingAdmissionPolicyBindings, nil
+			return policies, validatingAdmissionPolicies, validatingAdmissionPolicyBindings, policyExceptions, nil
 		}
 		if policy.GetKind() != "ClusterPolicy" && policy.GetKind() != "Policy" {
-			return nil, validatingAdmissionPolicies, validatingAdmissionPolicyBindings, fmt.Errorf("resource %s/%s is not a Policy or a ClusterPolicy", policy.GetKind(), policy.GetName())
+			return nil, validatingAdmissionPolicies, validatingAdmissionPolicyBindings, policyExceptions, fmt.Errorf("resource %s/%s is not a Policy or a ClusterPolicy", policy.GetKind(), policy.GetName())
 		}
 
 		if policy.GetKind() == "Policy" {
@@ -112,5 +126,5 @@ func addPolicy(policies []kyvernov1.PolicyInterface, validatingAdmissionPolicies
 		policies = append(policies, policy)
 	}
 
-	return policies, validatingAdmissionPolicies, validatingAdmissionPolicyBindings, nil
+	return policies, validatingAdmissionPolicies, validatingAdmissionPolicyBindings, policyExceptions, nil
 }