diff --git a/Makefile b/Makefile
index 558ade3e27..9c1aa99e37 100644
--- a/Makefile
+++ b/Makefile
@@ -35,7 +35,7 @@ build: kyverno
 PWD := $(CURDIR)
 
 ##################################
-# INIT CONTAINER 
+# INIT CONTAINER
 ##################################
 INITC_PATH := cmd/initContainer
 INITC_IMAGE := kyvernopre
@@ -117,7 +117,7 @@ docker-build-cli-amd64:
 docker-push-cli:
 	@docker buildx build --file $(PWD)/$(CLI_PATH)/Dockerfile --progress plane --push --platform linux/arm64,linux/amd64 --tag $(REPO)/$(KYVERNO_CLI_IMAGE):$(IMAGE_TAG) . --build-arg LD_FLAGS=$(LD_FLAGS)
 	@docker buildx build --file $(PWD)/$(CLI_PATH)/Dockerfile --progress plane --push --platform linux/arm64,linux/amd64 --tag $(REPO)/$(KYVERNO_CLI_IMAGE):latest . --build-arg LD_FLAGS=$(LD_FLAGS)
- 
+
 ##################################
 docker-publish-all: docker-publish-initContainer docker-publish-kyverno docker-publish-cli
 
@@ -137,7 +137,7 @@ create-e2e-infrastruture:
 ##################################
 
 ##################################
-# Testing & Code-Coverage 
+# Testing & Code-Coverage
 ##################################
 
 ## variables
@@ -153,7 +153,7 @@ $(GO_ACC):
 	go get -v github.com/ory/go-acc
 	$(eval export PATH=$(GO_ACC):$(PATH))
 # go test provides code coverage per packages only.
-# go-acc merges the result for pks so that it be used by	
+# go-acc merges the result for pks so that it be used by
 # go tool cover for reporting
 
 # go get downloads and installs the binary
@@ -171,7 +171,8 @@ code-cov-report: $(CODE_COVERAGE_FILE_TXT)
 # Test E2E
 test-e2e:
 	$(eval export E2E="ok")
-	go test ./test/e2e/... -v
+	go test ./test/e2e/mutate -v
+	go test ./test/e2e/generate -v
 	$(eval export E2E="")
 
 #Test TestCmd Policy
@@ -183,9 +184,9 @@ run_testcmd_policy:
 godownloader:
 	godownloader .goreleaser.yml --repo kyverno/kyverno -o ./scripts/install-cli.sh  --source="raw"
 
-# kustomize-crd will create install.yaml 
+# kustomize-crd will create install.yaml
 kustomize-crd:
-	# Create CRD for helm deployment Helm 
+	# Create CRD for helm deployment Helm
 	kustomize build ./definitions/crds > ./charts/kyverno/crds/crds.yaml
 	# Generate install.yaml that have all resources for kyverno
 	kustomize build ./definitions > ./definitions/install.yaml
@@ -204,7 +205,7 @@ kyverno-crd: controller-gen
 report-crd: controller-gen
 	$(CONTROLLER_GEN) crd paths=./pkg/api/policyreport/v1alpha1 output:dir=./definitions/crds
 
-# install the right version of controller-gen 
+# install the right version of controller-gen
 install-controller-gen:
 	@{ \
 	set -e ;\
diff --git a/test/e2e/generate/generate_test.go b/test/e2e/generate/generate_test.go
index 0eb55d235a..041e3ab37c 100644
--- a/test/e2e/generate/generate_test.go
+++ b/test/e2e/generate/generate_test.go
@@ -3,26 +3,29 @@ package generate
 import (
 	"errors"
 	"fmt"
-	. "github.com/onsi/ginkgo"
-	. "github.com/onsi/gomega"
 	"os"
 	"testing"
 	"time"
+
+	"github.com/kyverno/kyverno/test/e2e"
+
+	. "github.com/onsi/ginkgo"
+	. "github.com/onsi/gomega"
 )
 
 var (
 	// Cluster Polict GVR
-	clPolGVR = GetGVR("kyverno.io", "v1", "clusterpolicies")
+	clPolGVR = e2e.GetGVR("kyverno.io", "v1", "clusterpolicies")
 	// Namespace GVR
-	nsGVR = GetGVR("", "v1", "namespaces")
+	nsGVR = e2e.GetGVR("", "v1", "namespaces")
 	// ClusterRole GVR
-	crGVR = GetGVR("rbac.authorization.k8s.io", "v1", "clusterroles")
+	crGVR = e2e.GetGVR("rbac.authorization.k8s.io", "v1", "clusterroles")
 	// ClusterRoleBinding GVR
-	crbGVR = GetGVR("rbac.authorization.k8s.io", "v1", "clusterrolebindings")
+	crbGVR = e2e.GetGVR("rbac.authorization.k8s.io", "v1", "clusterrolebindings")
 	// Role GVR
-	rGVR = GetGVR("rbac.authorization.k8s.io", "v1", "roles")
+	rGVR = e2e.GetGVR("rbac.authorization.k8s.io", "v1", "roles")
 	// RoleBinding GVR
-	rbGVR = GetGVR("rbac.authorization.k8s.io", "v1", "rolebindings")
+	rbGVR = e2e.GetGVR("rbac.authorization.k8s.io", "v1", "rolebindings")
 
 	// ClusterPolicy Namespace
 	clPolNS = ""
@@ -37,7 +40,7 @@ func Test_ClusterRole_ClusterRoleBinding_Sets(t *testing.T) {
 		t.Skip("Skipping E2E Test")
 	}
 	// Generate E2E Client ==================
-	e2eClient, err := NewE2EClient()
+	e2eClient, err := e2e.NewE2EClient()
 	Expect(err).To(BeNil())
 	// ======================================
 
@@ -65,7 +68,7 @@ func Test_ClusterRole_ClusterRoleBinding_Sets(t *testing.T) {
 		e2eClient.DeleteClusteredResource(nsGVR, tests.ResourceNamespace)
 
 		// Wait Till Deletion of Namespace
-		GetWithRetry(time.Duration(1), 15, func() error {
+		e2e.GetWithRetry(time.Duration(1), 15, func() error {
 			_, err := e2eClient.GetClusteredResource(nsGVR, tests.ResourceNamespace)
 			if err != nil {
 				return nil
@@ -100,7 +103,7 @@ func Test_ClusterRole_ClusterRoleBinding_Sets(t *testing.T) {
 		Expect(err).NotTo(HaveOccurred())
 
 		// Wait Till Creation of Namespace
-		GetWithRetry(time.Duration(1), 15, func() error {
+		e2e.GetWithRetry(time.Duration(1), 15, func() error {
 			_, err := e2eClient.GetClusteredResource(nsGVR, tests.ResourceNamespace)
 			if err != nil {
 				return err
@@ -112,7 +115,7 @@ func Test_ClusterRole_ClusterRoleBinding_Sets(t *testing.T) {
 		// ======== Verify ClusterRole Creation =====
 		By("Verifying ClusterRole")
 		// Wait Till Creation of ClusterRole
-		GetWithRetry(time.Duration(1), 15, func() error {
+		e2e.GetWithRetry(time.Duration(1), 15, func() error {
 			_, err := e2eClient.GetClusteredResource(crGVR, tests.ClusterRoleName)
 			if err != nil {
 				return err
@@ -136,7 +139,7 @@ func Test_ClusterRole_ClusterRoleBinding_Sets(t *testing.T) {
 		// Clear Namespace
 		e2eClient.DeleteClusteredResource(nsGVR, tests.ResourceNamespace)
 		// Wait Till Deletion of Namespace
-		GetWithRetry(time.Duration(1), 15, func() error {
+		e2e.GetWithRetry(time.Duration(1), 15, func() error {
 			_, err := e2eClient.GetClusteredResource(nsGVR, tests.ResourceNamespace)
 			if err != nil {
 				return nil
@@ -154,7 +157,7 @@ func Test_Role_RoleBinding_Sets(t *testing.T) {
 		t.Skip("Skipping E2E Test")
 	}
 	// Generate E2E Client ==================
-	e2eClient, err := NewE2EClient()
+	e2eClient, err := e2e.NewE2EClient()
 	Expect(err).To(BeNil())
 	// ======================================
 
@@ -179,7 +182,7 @@ func Test_Role_RoleBinding_Sets(t *testing.T) {
 		}
 
 		// Wait Till Deletion of Namespace
-		GetWithRetry(time.Duration(1), 15, func() error {
+		e2e.GetWithRetry(time.Duration(1), 15, func() error {
 			_, err := e2eClient.GetClusteredResource(nsGVR, tests.ResourceNamespace)
 			if err != nil {
 				return nil
@@ -210,7 +213,7 @@ func Test_Role_RoleBinding_Sets(t *testing.T) {
 		Expect(err).NotTo(HaveOccurred())
 
 		// Wait Till Creation of Namespace
-		GetWithRetry(time.Duration(1), 15, func() error {
+		e2e.GetWithRetry(time.Duration(1), 15, func() error {
 			_, err := e2eClient.GetClusteredResource(nsGVR, tests.ResourceNamespace)
 			if err != nil {
 				return err
@@ -222,7 +225,7 @@ func Test_Role_RoleBinding_Sets(t *testing.T) {
 		// ======== Verify Role Creation =====
 		By(fmt.Sprintf("Verifying Role in the Namespace : %s", tests.ResourceNamespace))
 		// Wait Till Creation of Role
-		GetWithRetry(time.Duration(1), 15, func() error {
+		e2e.GetWithRetry(time.Duration(1), 15, func() error {
 			_, err := e2eClient.GetNamespacedResource(rGVR, tests.ResourceNamespace, tests.RoleName)
 			if err != nil {
 				return err
@@ -255,7 +258,7 @@ func Test_Role_RoleBinding_Sets(t *testing.T) {
 		// Clear Namespace
 		e2eClient.DeleteClusteredResource(nsGVR, tests.ResourceNamespace)
 		// Wait Till Deletion of Namespace
-		GetWithRetry(time.Duration(1), 15, func() error {
+		e2e.GetWithRetry(time.Duration(1), 15, func() error {
 			_, err := e2eClient.GetClusteredResource(nsGVR, tests.ResourceNamespace)
 			if err != nil {
 				return nil
diff --git a/test/e2e/mutate/config.go b/test/e2e/mutate/config.go
new file mode 100644
index 0000000000..26184bffbc
--- /dev/null
+++ b/test/e2e/mutate/config.go
@@ -0,0 +1,18 @@
+package mutate
+
+// MutateTests is E2E Test Config for mutation
+var MutateTests = []struct {
+	//TestName - Name of the Test
+	TestName string
+	// Data - The Yaml file of the ClusterPolicy
+	Data []byte
+}{
+	{
+		TestName: "test-mutate-with-context",
+		Data:     configMapMutationYaml,
+	},
+	{
+		TestName: "test-mutate-with-logic-in-context",
+		Data:     configMapMutationWithContextLogicYaml,
+	},
+}
diff --git a/test/e2e/mutate/mutate_test.go b/test/e2e/mutate/mutate_test.go
new file mode 100644
index 0000000000..5b95edc04d
--- /dev/null
+++ b/test/e2e/mutate/mutate_test.go
@@ -0,0 +1,109 @@
+package mutate
+
+import (
+	"errors"
+	"fmt"
+	"os"
+	"testing"
+	"time"
+
+	"github.com/kyverno/kyverno/test/e2e"
+	. "github.com/onsi/ginkgo"
+	. "github.com/onsi/gomega"
+)
+
+var (
+	// Cluster Polict GVR
+	clPolGVR = e2e.GetGVR("kyverno.io", "v1", "clusterpolicies")
+	// Namespace GVR
+	nsGVR = e2e.GetGVR("", "v1", "namespaces")
+	// ConfigMap GVR
+	cmGVR = e2e.GetGVR("", "v1", "configmaps")
+
+	// ClusterPolicy Namespace
+	clPolNS = ""
+	// Namespace Name
+	// Hardcoded in YAML Definition
+	nspace = "test-mutate"
+)
+
+func Test_Mutate_Sets(t *testing.T) {
+	RegisterTestingT(t)
+	if os.Getenv("E2E") == "" {
+		t.Skip("Skipping E2E Test")
+	}
+	// Generate E2E Client
+	e2eClient, err := e2e.NewE2EClient()
+	Expect(err).To(BeNil())
+
+	for _, tests := range MutateTests {
+		By(fmt.Sprintf("Test to mutate objects : %s", tests.TestName))
+
+		// Clean up Resources
+		By(fmt.Sprintf("Cleaning Cluster Policies"))
+		e2eClient.CleanClusterPolicies(clPolGVR)
+		// Clear Namespace
+		By(fmt.Sprintf("Deleting Namespace : %s", nspace))
+		e2eClient.DeleteClusteredResource(nsGVR, nspace)
+
+		// Wait Till Deletion of Namespace
+		e2e.GetWithRetry(time.Duration(1), 15, func() error {
+			_, err := e2eClient.GetClusteredResource(nsGVR, nspace)
+			if err != nil {
+				return nil
+			}
+			return errors.New("Deleting Namespace")
+		})
+
+		// Create Namespace
+		By(fmt.Sprintf("Creating Namespace %s", clPolNS))
+		_, err = e2eClient.CreateClusteredResourceYaml(nsGVR, namespaceYaml)
+		Expect(err).NotTo(HaveOccurred())
+
+		// Create source CM
+		By(fmt.Sprintf("\nCreating source ConfigMap in %s", nspace))
+		_, err = e2eClient.CreateNamespacedResourceYaml(cmGVR, nspace, sourceConfigMapYaml)
+		Expect(err).NotTo(HaveOccurred())
+
+		// Create CM Policy
+		By(fmt.Sprintf("\nCreating Mutate ConfigMap Policy in %s", clPolNS))
+		_, err = e2eClient.CreateNamespacedResourceYaml(clPolGVR, clPolNS, tests.Data)
+		Expect(err).NotTo(HaveOccurred())
+
+		// Create target CM
+		By(fmt.Sprintf("\nCreating target ConfigMap in %s", nspace))
+		_, err = e2eClient.CreateNamespacedResourceYaml(cmGVR, nspace, targetConfigMapYaml)
+		Expect(err).NotTo(HaveOccurred())
+
+		// Verify created ConfigMap
+		By(fmt.Sprintf("Verifying ConfigMap in the Namespace : %s", nspace))
+		// Wait Till Creation of ConfigMap
+		e2e.GetWithRetry(time.Duration(1), 15, func() error {
+			_, err := e2eClient.GetNamespacedResource(cmGVR, nspace, "target")
+			if err != nil {
+				return err
+			}
+			return nil
+		})
+		cmRes, err := e2eClient.GetNamespacedResource(cmGVR, nspace, "target")
+		Expect(err).NotTo(HaveOccurred())
+		Expect(cmRes.GetLabels()["kyverno.key/copy-me"]).To(Equal("sample-value"))
+
+		//CleanUp Resources
+		e2eClient.CleanClusterPolicies(clPolGVR)
+
+		// Clear Namespace
+		e2eClient.DeleteClusteredResource(nsGVR, nspace)
+		// Wait Till Deletion of Namespace
+		e2e.GetWithRetry(time.Duration(1), 15, func() error {
+			_, err := e2eClient.GetClusteredResource(nsGVR, nspace)
+			if err != nil {
+				return nil
+			}
+			return errors.New("Deleting Namespace")
+		})
+
+		By(fmt.Sprintf("Test %s Completed \n\n\n", tests.TestName))
+	}
+
+}
diff --git a/test/e2e/mutate/resources.go b/test/e2e/mutate/resources.go
new file mode 100644
index 0000000000..e49d66ae7f
--- /dev/null
+++ b/test/e2e/mutate/resources.go
@@ -0,0 +1,84 @@
+package mutate
+
+// Namespace Description
+var namespaceYaml = []byte(`
+apiVersion: v1
+kind: Namespace
+metadata:
+  name: test-mutate
+`)
+
+// Cluster Policy to copy the copy me label from one configmap to the target
+var configMapMutationYaml = []byte(`
+apiVersion: kyverno.io/v1
+kind: ClusterPolicy
+metadata:
+  name: "mutate-policy"
+spec:
+  rules:
+  - name: "gen-role"
+    match:
+      resources:
+        kinds:
+          - ConfigMap
+    context:
+    - name: labelValue
+      apiCall:
+        urlPath: "/api/v1/namespaces/{{ request.object.metadata.namespace }}/configmaps"
+        jmesPath: "items[*]"
+    mutate:
+      patchStrategicMerge:
+        metadata:
+          labels:
+            +(kyverno.key/copy-me): "{{ labelValue[?metadata.name == 'source'].metadata.labels.\"kyverno.key/copy-me\" | [0] }}"
+`)
+
+var configMapMutationWithContextLogicYaml = []byte(`
+apiVersion: kyverno.io/v1
+kind: ClusterPolicy
+metadata:
+  name: "mutate-policy"
+spec:
+  rules:
+  - name: "gen-role"
+    match:
+      resources:
+        kinds:
+          - ConfigMap
+    context:
+    - name: labelValue
+      apiCall:
+        urlPath: "/api/v1/namespaces/{{ request.object.metadata.namespace }}/configmaps"
+        jmesPath: "items[?metadata.name == 'source'].metadata.labels.\"kyverno.key/copy-me\" | [0]"
+    mutate:
+      patchStrategicMerge:
+        metadata:
+          labels:
+            +(kyverno.key/copy-me): "{{ labelValue }}"
+`)
+
+// Source ConfigMap from which data is taken to copy
+var sourceConfigMapYaml = []byte(`
+apiVersion: v1
+kind: ConfigMap
+metadata:
+  name: source
+  namespace: test-mutate
+  labels:
+    kyverno.key/copy-me: sample-value
+data:
+  data.yaml: |
+    some: data
+`)
+
+// Target ConfigMap which is mutated
+var targetConfigMapYaml = []byte(`
+apiVersion: v1
+kind: ConfigMap
+metadata:
+  name: target
+  namespace: test-mutate
+data:
+  data.yaml: |
+    some: data
+`)
diff --git a/test/e2e/generate/utils.go b/test/e2e/utils.go
similarity index 99%
rename from test/e2e/generate/utils.go
rename to test/e2e/utils.go
index 9407a68827..b832756a80 100644
--- a/test/e2e/generate/utils.go
+++ b/test/e2e/utils.go
@@ -1,4 +1,4 @@
-package generate
+package e2e
 
 import (
 	"context"