diff --git a/pkg/engine/variables/variables_test.go b/pkg/engine/variables/variables_test.go
index e01bf4f820..bb88cc13ac 100644
--- a/pkg/engine/variables/variables_test.go
+++ b/pkg/engine/variables/variables_test.go
@@ -85,7 +85,7 @@ func Test_variablesub1(t *testing.T) {
 		t.Error(err)
 	}
 
-	if _, err := SubstituteVars(log.Log, ctx, patternCopy); err != nil {
+	if patternCopy, err = SubstituteVars(log.Log, ctx, patternCopy); err != nil {
 		t.Error(err)
 	}
 	resultRaw, err := json.Marshal(patternCopy)
@@ -175,7 +175,7 @@ func Test_variablesub_multiple(t *testing.T) {
 		t.Error(err)
 	}
 
-	if _, err := SubstituteVars(log.Log, ctx, patternCopy); err != nil {
+	if patternCopy, err = SubstituteVars(log.Log, ctx, patternCopy); err != nil {
 		t.Error(err)
 	}
 	resultRaw, err := json.Marshal(patternCopy)
@@ -262,7 +262,7 @@ func Test_variablesubstitution(t *testing.T) {
 		t.Error(err)
 	}
 
-	if _, err := SubstituteVars(log.Log, ctx, patternCopy); err != nil {
+	if patternCopy, err = SubstituteVars(log.Log, ctx, patternCopy); err != nil {
 		t.Error(err)
 	}
 	resultRaw, err := json.Marshal(patternCopy)
@@ -323,7 +323,7 @@ func Test_variableSubstitutionValue(t *testing.T) {
 		t.Error(err)
 	}
 
-	if _, err := SubstituteVars(log.Log, ctx, patternCopy); err != nil {
+	if patternCopy, err = SubstituteVars(log.Log, ctx, patternCopy); err != nil {
 		t.Error(err)
 	}
 	resultRaw, err := json.Marshal(patternCopy)
@@ -381,7 +381,7 @@ func Test_variableSubstitutionValueOperatorNotEqual(t *testing.T) {
 		t.Error(err)
 	}
 
-	if _, err := SubstituteVars(log.Log, ctx, patternCopy); err != nil {
+	if patternCopy, err = SubstituteVars(log.Log, ctx, patternCopy); err != nil {
 		t.Error(err)
 	}
 	resultRaw, err := json.Marshal(patternCopy)
@@ -440,7 +440,7 @@ func Test_variableSubstitutionValueFail(t *testing.T) {
 		t.Error(err)
 	}
 
-	if _, err := SubstituteVars(log.Log, ctx, patternCopy); err == nil {
+	if patternCopy, err = SubstituteVars(log.Log, ctx, patternCopy); err == nil {
 		t.Log("expected to fails")
 		t.Fail()
 	}
@@ -498,7 +498,7 @@ func Test_variableSubstitutionObject(t *testing.T) {
 		t.Error(err)
 	}
 
-	if _, err := SubstituteVars(log.Log, ctx, patternCopy); err != nil {
+	if patternCopy, err = SubstituteVars(log.Log, ctx, patternCopy); err != nil {
 		t.Error(err)
 	}
 	resultRaw, err := json.Marshal(patternCopy)
@@ -562,7 +562,7 @@ func Test_variableSubstitutionObjectOperatorNotEqualFail(t *testing.T) {
 		t.Error(err)
 	}
 
-	if _, err := SubstituteVars(log.Log, ctx, patternCopy); err == nil {
+	if patternCopy, err = SubstituteVars(log.Log, ctx, patternCopy); err == nil {
 		t.Error(err)
 	}
 
@@ -621,7 +621,7 @@ func Test_variableSubstitutionMultipleObject(t *testing.T) {
 		t.Error(err)
 	}
 
-	if _, err := SubstituteVars(log.Log, ctx, patternCopy); err != nil {
+	if patternCopy, err = SubstituteVars(log.Log, ctx, patternCopy); err != nil {
 		t.Error(err)
 	}
 	resultRaw, err := json.Marshal(patternCopy)
diff --git a/pkg/generate/generate.go b/pkg/generate/generate.go
index 9f3edc4bc8..aab5ff1ae4 100644
--- a/pkg/generate/generate.go
+++ b/pkg/generate/generate.go
@@ -188,9 +188,12 @@ func applyRule(log logr.Logger, client *dclient.Client, rule kyverno.Rule, resou
 	// format : {{<variable_name}}
 	// - if there is variables that are not defined the context -> results in error and rule is not applied
 	// - valid variables are replaced with the values
-	if _, err := variables.SubstituteVars(log, ctx, genUnst.Object); err != nil {
+	object, err := variables.SubstituteVars(log, ctx, genUnst.Object)
+	if err != nil {
 		return noGenResource, err
 	}
+	genUnst.Object, _ = object.(map[string]interface{})
+
 	genKind, _, err := unstructured.NestedString(genUnst.Object, "kind")
 	if err != nil {
 		return noGenResource, err