diff --git a/.github/workflows/conformance.yaml b/.github/workflows/conformance.yaml
index 58fee1aab8..d598390ca9 100644
--- a/.github/workflows/conformance.yaml
+++ b/.github/workflows/conformance.yaml
@@ -58,6 +58,7 @@ jobs:
         tests:
           - autogen
           - cleanup
+          - deferred
           - events
           - exceptions
           - generate/clusterpolicy
diff --git a/Makefile b/Makefile
index d649a9b36a..5b207902ff 100644
--- a/Makefile
+++ b/Makefile
@@ -653,7 +653,7 @@ test-cli-local: $(CLI_BIN)
 
 .PHONY: test-cli-local-mutate
 test-cli-local-mutate: $(CLI_BIN)
-	# @$(CLI_BIN) test ./test/cli/test-mutate
+	@$(CLI_BIN) test ./test/cli/test-mutate
 
 .PHONY: test-cli-local-generate
 test-cli-local-generate: $(CLI_BIN)
diff --git a/cmd/cleanup-controller/handlers/cleanup/handlers.go b/cmd/cleanup-controller/handlers/cleanup/handlers.go
index 7400e8f14d..eb4f0d38b0 100644
--- a/cmd/cleanup-controller/handlers/cleanup/handlers.go
+++ b/cmd/cleanup-controller/handlers/cleanup/handlers.go
@@ -113,17 +113,32 @@ func (h *handlers) lookupPolicy(namespace, name string) (kyvernov2alpha1.Cleanup
 	}
 }
 
-func (h *handlers) executePolicy(ctx context.Context, logger logr.Logger, policy kyvernov2alpha1.CleanupPolicyInterface, cfg config.Configuration) error {
+func (h *handlers) executePolicy(
+	ctx context.Context,
+	logger logr.Logger,
+	policy kyvernov2alpha1.CleanupPolicyInterface,
+	cfg config.Configuration,
+) error {
 	spec := policy.GetSpec()
 	kinds := sets.New(spec.MatchResources.GetKinds()...)
 	debug := logger.V(4)
 	var errs []error
+
 	enginectx := enginecontext.NewContext(h.jp)
-	factory := factories.DefaultContextLoaderFactory(h.cmResolver)
-	loader := factory(nil, kyvernov1.Rule{})
-	if err := loader.Load(ctx, h.jp, h.client, nil, spec.Context, enginectx); err != nil {
+	ctxFactory := factories.DefaultContextLoaderFactory(h.cmResolver)
+
+	loader := ctxFactory(nil, kyvernov1.Rule{})
+	if err := loader.Load(
+		ctx,
+		h.jp,
+		h.client,
+		nil,
+		spec.Context,
+		enginectx,
+	); err != nil {
 		return err
 	}
+
 	for kind := range kinds {
 		commonLabels := []attribute.KeyValue{
 			attribute.String("policy_type", policy.GetKind()),
diff --git a/pkg/config/config.go b/pkg/config/config.go
index aa728ea9ce..c0936fe04d 100644
--- a/pkg/config/config.go
+++ b/pkg/config/config.go
@@ -144,7 +144,7 @@ func KyvernoUserName(serviceaccount string) string {
 type Configuration interface {
 	// GetDefaultRegistry return default image registry
 	GetDefaultRegistry() string
-	// GetEnableDefaultRegistryMutation return if should mutate image registry
+	// GetEnableDefaultRegistryMutation returns true if image references should be mutated
 	GetEnableDefaultRegistryMutation() bool
 	// IsExcluded checks exlusions/inclusions to determine if the admission request should be excluded or not
 	IsExcluded(username string, groups []string, roles []string, clusterroles []string) bool
diff --git a/pkg/engine/api/resolver_test.go b/pkg/engine/api/resolver_test.go
index f9e99f36b1..2647326c26 100644
--- a/pkg/engine/api/resolver_test.go
+++ b/pkg/engine/api/resolver_test.go
@@ -130,6 +130,7 @@ func Test_namespacedResourceResolverChain_Get(t *testing.T) {
 			if !checkError(tt.wantErr, err) {
 				t.Errorf("ConfigmapResolver.Get() %s error = %v, wantErr %v", tt.name, err, tt.wantErr)
 			}
+
 			if !reflect.DeepEqual(got, tt.wantCm) {
 				t.Errorf("ConfigmapResolver.Get() = %v, want %v", got, tt.wantCm)
 			}
diff --git a/pkg/engine/context/context.go b/pkg/engine/context/context.go
index d4746d976b..92b64abbf8 100644
--- a/pkg/engine/context/context.go
+++ b/pkg/engine/context/context.go
@@ -20,6 +20,7 @@ import (
 var logger = logging.WithName("context")
 
 // EvalInterface is used to query and inspect context data
+// TODO: move to contextapi to prevent circular dependencies
 type EvalInterface interface {
 	// Query accepts a JMESPath expression and returns matching data
 	Query(query string) (interface{}, error)
@@ -32,6 +33,7 @@ type EvalInterface interface {
 }
 
 // Interface to manage context operations
+// TODO: move to contextapi to prevent circular dependencies
 type Interface interface {
 	// AddRequest marshals and adds the admission request to the context
 	AddRequest(request admissionv1.AdmissionRequest) error
@@ -76,7 +78,8 @@ type Interface interface {
 	AddImageInfos(resource *unstructured.Unstructured, cfg config.Configuration) error
 
 	// AddDeferredLoader adds a loader that is executed on first use (query)
-	AddDeferredLoader(name string, loader Loader) error
+	// If deferred loading is disabled the loader is immediately executed.
+	AddDeferredLoader(loader DeferredLoader) error
 
 	// ImageInfo returns image infos present in the context
 	ImageInfo() map[string]map[string]apiutils.ImageInfo
@@ -107,12 +110,7 @@ type context struct {
 	jsonRaw            []byte
 	jsonRawCheckpoints [][]byte
 	images             map[string]map[string]apiutils.ImageInfo
-	deferred           deferredLoaders
-}
-
-type deferredLoaders struct {
-	mutex   sync.Mutex
-	loaders map[string]Loader
+	deferred           DeferredLoaders
 }
 
 // NewContext returns a new context
@@ -126,9 +124,7 @@ func NewContextFromRaw(jp jmespath.Interface, raw []byte) Interface {
 		jp:                 jp,
 		jsonRaw:            raw,
 		jsonRawCheckpoints: make([][]byte, 0),
-		deferred: deferredLoaders{
-			loaders: make(map[string]Loader),
-		},
+		deferred:           NewDeferredLoaders(),
 	}
 }
 
@@ -335,24 +331,32 @@ func (ctx *context) Reset() {
 	ctx.reset(false)
 }
 
-func (ctx *context) reset(remove bool) {
+func (ctx *context) reset(restore bool) {
+	if ctx.resetCheckpoint(restore) {
+		ctx.deferred.Reset(restore, len(ctx.jsonRawCheckpoints))
+	}
+}
+
+func (ctx *context) resetCheckpoint(removeCheckpoint bool) bool {
 	ctx.mutex.Lock()
 	defer ctx.mutex.Unlock()
+
 	if len(ctx.jsonRawCheckpoints) == 0 {
-		return
+		return false
 	}
+
 	n := len(ctx.jsonRawCheckpoints) - 1
 	jsonRawCheckpoint := ctx.jsonRawCheckpoints[n]
 	ctx.jsonRaw = make([]byte, len(jsonRawCheckpoint))
 	copy(ctx.jsonRaw, jsonRawCheckpoint)
-	if remove {
+	if removeCheckpoint {
 		ctx.jsonRawCheckpoints = ctx.jsonRawCheckpoints[:n]
 	}
+
+	return true
 }
 
-func (ctx *context) AddDeferredLoader(name string, loader Loader) error {
-	ctx.deferred.mutex.Lock()
-	defer ctx.deferred.mutex.Unlock()
-	ctx.deferred.loaders[name] = loader
+func (ctx *context) AddDeferredLoader(dl DeferredLoader) error {
+	ctx.deferred.Add(dl, len(ctx.jsonRawCheckpoints))
 	return nil
 }
diff --git a/pkg/engine/context/deferred.go b/pkg/engine/context/deferred.go
new file mode 100644
index 0000000000..6545b21128
--- /dev/null
+++ b/pkg/engine/context/deferred.go
@@ -0,0 +1,177 @@
+package context
+
+import (
+	"regexp"
+)
+
+type deferredLoader struct {
+	name    string
+	matcher regexp.Regexp
+	loader  Loader
+}
+
+func NewDeferredLoader(name string, loader Loader) (DeferredLoader, error) {
+	// match on ASCII word boundaries except do not allow starting with a `.`
+	// this allows `x` to match `x.y` but not `y.x` or `y.x.z`
+	matcher, err := regexp.Compile(`(?:\A|\z|\s|[^.0-9A-Za-z])` + name + `\b`)
+	if err != nil {
+		return nil, err
+	}
+
+	return &deferredLoader{
+		name:    name,
+		matcher: *matcher,
+		loader:  loader,
+	}, nil
+}
+
+func (dl *deferredLoader) Name() string {
+	return dl.name
+}
+
+func (dl *deferredLoader) HasLoaded() bool {
+	return dl.loader.HasLoaded()
+}
+
+func (dl *deferredLoader) LoadData() error {
+	return dl.loader.LoadData()
+}
+
+func (d *deferredLoader) Matches(query string) bool {
+	return d.matcher.MatchString(query)
+}
+
+type leveledLoader struct {
+	level   int
+	matched bool
+	loader  DeferredLoader
+}
+
+func (cl *leveledLoader) Level() int {
+	return cl.level
+}
+
+func (cl *leveledLoader) Name() string {
+	return cl.loader.Name()
+}
+
+func (cl *leveledLoader) Matches(query string) bool {
+	return cl.loader.Matches(query)
+}
+
+func (cl *leveledLoader) HasLoaded() bool {
+	return cl.loader.HasLoaded()
+}
+
+func (cl *leveledLoader) LoadData() error {
+	return cl.loader.LoadData()
+}
+
+type deferredLoaders struct {
+	level   int
+	index   int
+	loaders []*leveledLoader
+}
+
+func NewDeferredLoaders() DeferredLoaders {
+	return &deferredLoaders{
+		loaders: make([]*leveledLoader, 0),
+		level:   -1,
+		index:   -1,
+	}
+}
+
+func (d *deferredLoaders) Add(dl DeferredLoader, level int) {
+	d.loaders = append(d.loaders, &leveledLoader{level, false, dl})
+}
+
+func (d *deferredLoaders) Reset(restore bool, level int) {
+	d.clearMatches()
+	for i := 0; i < len(d.loaders); i++ {
+		l := d.loaders[i]
+		if l.level > level {
+			i = d.removeLoader(i)
+		} else {
+			if l.loader.HasLoaded() {
+				// reload data into the current context for restore, and
+				// for a reset but only if loader is at a prior level
+				if restore || (l.level < level) {
+					if err := d.loadData(l, i); err != nil {
+						logger.Error(err, "failed to reload context entry", "name", l.loader.Name())
+					}
+				}
+				if l.level == level {
+					i = d.removeLoader(i)
+				}
+			} else if !restore {
+				if l.level == level {
+					i = d.removeLoader(i)
+				}
+			}
+		}
+	}
+}
+
+// removeLoader removes loader at the specified index
+// and returns the prior index
+func (d *deferredLoaders) removeLoader(i int) int {
+	d.loaders = append(d.loaders[:i], d.loaders[i+1:]...)
+	return i - 1
+}
+
+func (d *deferredLoaders) clearMatches() {
+	for _, dl := range d.loaders {
+		dl.matched = false
+	}
+}
+
+func (d *deferredLoaders) LoadMatching(query string, level int) error {
+	if d.level >= 0 {
+		level = d.level
+	}
+
+	index := len(d.loaders)
+	if d.index >= 0 {
+		index = d.index
+	}
+
+	for l, idx := d.match(query, level, index); l != nil; l, idx = d.match(query, level, index) {
+		if err := d.loadData(l, idx); err != nil {
+			return nil
+		}
+	}
+
+	return nil
+}
+
+func (d *deferredLoaders) loadData(l *leveledLoader, index int) error {
+	d.setLevelAndIndex(l.level, index)
+	defer d.setLevelAndIndex(-1, -1)
+	if err := l.LoadData(); err != nil {
+		return err
+	}
+
+	return nil
+}
+
+func (d *deferredLoaders) setLevelAndIndex(level, index int) {
+	d.level = level
+	d.index = index
+}
+
+func (d *deferredLoaders) match(query string, level, index int) (*leveledLoader, int) {
+	for i := 0; i < index; i++ {
+		dl := d.loaders[i]
+		if dl.matched || dl.loader.HasLoaded() {
+			continue
+		}
+
+		if dl.Matches(query) && dl.level <= level {
+			idx := i
+			d.loaders[i].matched = true
+			return dl, idx
+		}
+	}
+
+	return nil, -1
+}
diff --git a/pkg/engine/context/deferred_test.go b/pkg/engine/context/deferred_test.go
new file mode 100644
index 0000000000..b9efd2cfa9
--- /dev/null
+++ b/pkg/engine/context/deferred_test.go
@@ -0,0 +1,443 @@
+package context
+
+import (
+	"fmt"
+	"testing"
+
+	"gotest.tools/assert"
+)
+
+func TestDeferredLoaderMatch(t *testing.T) {
+	ctx := newContext()
+	mockLoader, _ := addDeferred(ctx, "one", "1")
+	assert.Equal(t, 0, mockLoader.invocations)
+
+	val, err := ctx.Query("one")
+	assert.NilError(t, err)
+	assert.Equal(t, "1", val)
+	assert.Equal(t, 1, mockLoader.invocations)
+
+	_, _ = ctx.Query("one")
+	assert.Equal(t, 1, mockLoader.invocations)
+
+	ctx = newContext()
+	ml, _ := addDeferred(ctx, "one", "1")
+	testCheckMatch(t, ctx, "one<two", "one", "1", ml)
+
+	ml, _ = addDeferred(ctx, "one", "1")
+	testCheckMatch(t, ctx, "(one)", "one", "1", ml)
+
+	ml, _ = addDeferred(ctx, "one", "1")
+	testCheckMatch(t, ctx, "one.two.three", "one", "1", ml)
+
+	ml, _ = addDeferred(ctx, "one", "1")
+	testCheckMatch(t, ctx, "one-two", "one", "1", ml)
+
+	ml, _ = addDeferred(ctx, "one", "1")
+	testCheckMatch(t, ctx, "one; two; three", "one", "1", ml)
+
+	ml, _ = addDeferred(ctx, "one", "1")
+	testCheckMatch(t, ctx, "one>two", "one", "1", ml)
+
+	ml, _ = addDeferred(ctx, "one", "1")
+	testCheckMatch(t, ctx, "one, two, three", "one", "1", ml)
+
+	ml, _ = addDeferred(ctx, "one1", "11")
+	testCheckMatch(t, ctx, "one1", "one1", "11", ml)
+}
+
+func testCheckMatch(t *testing.T, ctx *context, query, name, value string, ml *mockLoader) {
+	var events []string
+	hdlr := func(name string) {
+		events = append(events, name)
+	}
+
+	ml.setEventHandler(hdlr)
+
+	err := ctx.deferred.LoadMatching(query, len(ctx.jsonRawCheckpoints))
+	assert.NilError(t, err)
+	assert.Equal(t, 1, len(events), "deferred loader %s not executed for query %s", name, query)
+	expected := fmt.Sprintf("%s=%s", name, value)
+	assert.Equal(t, expected, events[0], "deferred loader %s name mismatch for query %s; received %s", name, query, events[0])
+}
+
+func TestDeferredLoaderMismatch(t *testing.T) {
+	ctx := newContext()
+	addDeferred(ctx, "one", "1")
+
+	_, err := ctx.Query("oneTwoThree")
+	assert.ErrorContains(t, err, `Unknown key "oneTwoThree" in path`)
+
+	_, err = ctx.Query("one1")
+	assert.ErrorContains(t, err, `Unknown key "one1" in path`)
+
+	_, err = ctx.Query("one_two")
+	assert.ErrorContains(t, err, `Unknown key "one_two" in path`)
+
+	_, err = ctx.Query("\"one-two\"")
+	assert.ErrorContains(t, err, `Unknown key "one-two" in path`)
+
+	ctx.AddVariable("two.one", "0")
+	val, err := ctx.Query("two.one")
+	assert.NilError(t, err)
+	assert.Equal(t, "0", val)
+
+	val, err = ctx.Query("one.two.three")
+	assert.NilError(t, err)
+	assert.Equal(t, nil, val)
+
+	val, err = ctx.Query("one")
+	assert.NilError(t, err)
+	assert.Equal(t, "1", val)
+}
+
+func newContext() *context {
+	return &context{
+		jp:                 jp,
+		jsonRaw:            []byte(`{}`),
+		jsonRawCheckpoints: make([][]byte, 0),
+		deferred:           NewDeferredLoaders(),
+	}
+}
+
+type mockLoader struct {
+	name         string
+	level        int
+	value        interface{}
+	query        string
+	hasLoaded    bool
+	invocations  int
+	eventHandler func(event string)
+	ctx          *context
+}
+
+func (ml *mockLoader) Name() string {
+	return ml.name
+}
+
+func (ml *mockLoader) SetLevel(level int) {
+	ml.level = level
+}
+
+func (ml *mockLoader) GetLevel() int {
+	return ml.level
+}
+
+func (ml *mockLoader) HasLoaded() bool {
+	return ml.hasLoaded
+}
+
+func (ml *mockLoader) LoadData() error {
+	ml.invocations++
+	ml.ctx.AddVariable(ml.name, ml.value)
+
+	// simulate a JMESPath evaluation after loading
+	if err := ml.executeQuery(); err != nil {
+		return err
+	}
+
+	ml.hasLoaded = true
+	if ml.eventHandler != nil {
+		event := fmt.Sprintf("%s=%v", ml.name, ml.value)
+		ml.eventHandler(event)
+	}
+
+	return nil
+}
+
+func (ml *mockLoader) executeQuery() error {
+	if ml.query == "" {
+		return nil
+	}
+
+	results, err := ml.ctx.Query(ml.query)
+	if err != nil {
+		return err
+	}
+
+	return ml.ctx.AddVariable(ml.name, results)
+}
+
+func (ml *mockLoader) setEventHandler(eventHandler func(string)) {
+	ml.eventHandler = eventHandler
+}
+
+func addDeferred(ctx *context, name string, value interface{}) (*mockLoader, error) {
+	return addDeferredWithQuery(ctx, name, value, "")
+}
+
+func addDeferredWithQuery(ctx *context, name string, value interface{}, query string) (*mockLoader, error) {
+	loader := &mockLoader{
+		name:  name,
+		value: value,
+		ctx:   ctx,
+		query: query,
+	}
+
+	d, err := NewDeferredLoader(name, loader)
+	if err != nil {
+		return loader, err
+	}
+
+	ctx.AddDeferredLoader(d)
+	return loader, nil
+}
+
+func TestDeferredReset(t *testing.T) {
+	ctx := newContext()
+	addDeferred(ctx, "value", "0")
+
+	ctx.Checkpoint()
+	val, err := ctx.Query("value")
+	assert.NilError(t, err)
+	assert.Equal(t, "0", val)
+	ctx.Reset()
+
+	val, err = ctx.Query("value")
+	assert.NilError(t, err)
+	assert.Equal(t, "0", val)
+}
+
+func TestDeferredCheckpointRestore(t *testing.T) {
+	ctx := newContext()
+
+	ctx.Checkpoint()
+	unused, _ := addDeferred(ctx, "unused", "unused")
+	mock, _ := addDeferred(ctx, "one", "1")
+	ctx.Restore()
+	assert.Equal(t, 0, mock.invocations)
+	assert.Equal(t, 0, unused.invocations)
+
+	err := ctx.deferred.LoadMatching("unused", len(ctx.jsonRawCheckpoints))
+	assert.NilError(t, err)
+	_, err = ctx.Query("unused")
+	assert.ErrorContains(t, err, "Unknown key \"unused\" in path")
+
+	err = ctx.deferred.LoadMatching("one", len(ctx.jsonRawCheckpoints))
+	assert.NilError(t, err)
+	_, err = ctx.Query("one")
+	assert.ErrorContains(t, err, "Unknown key \"one\" in path")
+
+	_, _ = addDeferred(ctx, "one", "1")
+	ctx.Checkpoint()
+	one, err := ctx.Query("one")
+	assert.NilError(t, err)
+	assert.Equal(t, "1", one)
+
+	ctx.Restore()
+	_, err = ctx.Query("one")
+	assert.NilError(t, err)
+	assert.Equal(t, "1", one)
+
+	ctx.Restore()
+	_, err = ctx.Query("one")
+	assert.NilError(t, err)
+	assert.Equal(t, "1", one)
+
+	mock, _ = addDeferred(ctx, "one", "1")
+	ctx.Checkpoint()
+	val, err := ctx.Query("one")
+	assert.NilError(t, err)
+	assert.Equal(t, "1", val)
+	assert.Equal(t, 1, mock.invocations)
+
+	mock2, _ := addDeferred(ctx, "two", "2")
+	val, err = ctx.Query("two")
+	assert.NilError(t, err)
+	assert.Equal(t, "2", val)
+	assert.Equal(t, 1, mock2.invocations)
+
+	ctx.Restore()
+	val, err = ctx.Query("one")
+	assert.NilError(t, err)
+	assert.Equal(t, "1", val)
+	assert.Equal(t, 2, mock.invocations)
+
+	_, _ = ctx.Query("one")
+	assert.Equal(t, 2, mock.invocations)
+
+	_, err = ctx.Query("two")
+	assert.ErrorContains(t, err, `Unknown key "two" in path`)
+
+	ctx.Checkpoint()
+	val, err = ctx.Query("one")
+	assert.NilError(t, err)
+	assert.Equal(t, "1", val)
+	assert.Equal(t, 2, mock.invocations)
+
+	_, err = ctx.Query("two")
+	assert.ErrorContains(t, err, `Unknown key "two" in path`)
+
+	mock3, _ := addDeferred(ctx, "three", "3")
+	val, err = ctx.Query("three")
+	assert.NilError(t, err)
+	assert.Equal(t, "3", val)
+	assert.Equal(t, 1, mock3.invocations)
+
+	ctx.Reset()
+	val, err = ctx.Query("one")
+	assert.NilError(t, err)
+	assert.Equal(t, "1", val)
+	assert.Equal(t, 2, mock.invocations)
+
+	_, err = ctx.Query("two")
+	assert.ErrorContains(t, err, `Unknown key "two" in path`)
+
+	_, err = ctx.Query("three")
+	assert.ErrorContains(t, err, `Unknown key "three" in path`)
+}
+
+func TestDeferredForloop(t *testing.T) {
+	ctx := newContext()
+	addDeferred(ctx, "value", -1)
+
+	ctx.Checkpoint()
+	for i := 0; i < 5; i++ {
+		val, err := ctx.Query("value")
+		assert.NilError(t, err)
+		assert.Equal(t, float64(i-1), val)
+
+		ctx.Reset()
+		mock, _ := addDeferred(ctx, "value", i)
+		val, err = ctx.Query("value")
+		assert.NilError(t, err)
+		assert.Equal(t, float64(i), val)
+		assert.Equal(t, 1, mock.invocations)
+	}
+
+	ctx.Restore()
+	val, err := ctx.Query("value")
+	assert.NilError(t, err)
+	assert.Equal(t, float64(-1), val)
+}
+
+func TestDeferredInvalidReset(t *testing.T) {
+	ctx := newContext()
+
+	addDeferred(ctx, "value", "0")
+	ctx.Reset() // no checkpoint
+	val, err := ctx.Query("value")
+	assert.NilError(t, err)
+	assert.Equal(t, "0", val)
+
+	addDeferred(ctx, "value", "0")
+	ctx.Restore() // no checkpoint
+	val, err = ctx.Query("value")
+	assert.NilError(t, err)
+	assert.Equal(t, "0", val)
+}
+
+func TestDeferredValidResetRestore(t *testing.T) {
+	ctx := newContext()
+	addDeferred(ctx, "value", "0")
+
+	ctx.Checkpoint()
+	addDeferred(ctx, "leak", "leak")
+	ctx.Reset()
+
+	_, err := ctx.Query("leak")
+	assert.ErrorContains(t, err, `Unknown key "leak" in path`)
+
+	addDeferred(ctx, "value", "0")
+	ctx.Checkpoint()
+	addDeferred(ctx, "leak", "leak")
+	ctx.Restore()
+
+	_, err = ctx.Query("leak")
+	assert.ErrorContains(t, err, `Unknown key "leak" in path`)
+}
+
+func TestDeferredSameName(t *testing.T) {
+	ctx := newContext()
+	var sequence []string
+	hdlr := func(name string) {
+		sequence = append(sequence, name)
+	}
+
+	mock1, _ := addDeferred(ctx, "value", "0")
+	mock1.setEventHandler(hdlr)
+
+	mock2, _ := addDeferred(ctx, "value", "1")
+	mock2.setEventHandler(hdlr)
+
+	val, err := ctx.Query("value")
+	assert.NilError(t, err)
+	assert.Equal(t, "1", val)
+
+	assert.Equal(t, 1, mock1.invocations)
+	assert.Equal(t, 1, mock2.invocations)
+	assert.Equal(t, 2, len(sequence))
+	assert.Equal(t, sequence[0], "value=0")
+	assert.Equal(t, sequence[1], "value=1")
+}
+
+func TestDeferredRecursive(t *testing.T) {
+	ctx := newContext()
+	addDeferredWithQuery(ctx, "value", "0", "value")
+	ctx.Checkpoint()
+	val, err := ctx.Query("value")
+	assert.NilError(t, err)
+	assert.Equal(t, "0", val)
+}
+
+func TestJMESPathDependency(t *testing.T) {
+	ctx := newContext()
+	addDeferred(ctx, "foo", "foo")
+	addDeferredWithQuery(ctx, "one", "1", "foo")
+
+	val, err := ctx.Query("one")
+	assert.NilError(t, err)
+	assert.Equal(t, "foo", val)
+}
+
+func TestDeferredHiddenEval(t *testing.T) {
+	ctx := newContext()
+	addDeferred(ctx, "foo", "foo")
+
+	ctx.Checkpoint()
+	addDeferred(ctx, "foo", "bar")
+
+	val, err := ctx.Query("foo")
+	assert.NilError(t, err)
+	assert.Equal(t, "bar", val)
+}
+
+func TestDeferredNotHidden(t *testing.T) {
+	ctx := newContext()
+	addDeferred(ctx, "foo", "foo")
+	addDeferredWithQuery(ctx, "one", "1", "foo")
+
+	ctx.Checkpoint()
+	addDeferred(ctx, "foo", "bar")
+
+	val, err := ctx.Query("one")
+	assert.NilError(t, err)
+	assert.Equal(t, "foo", val)
+}
+
+func TestDeferredNotHiddenOrdered(t *testing.T) {
+	ctx := newContext()
+	addDeferred(ctx, "foo", "foo")
+	addDeferredWithQuery(ctx, "one", "1", "foo")
+	addDeferred(ctx, "foo", "baz")
+
+	ctx.Checkpoint()
+	addDeferred(ctx, "foo", "bar")
+	val, err := ctx.Query("one")
+	assert.NilError(t, err)
+	assert.Equal(t, "foo", val)
+
+	val, err = ctx.Query("foo")
+	assert.NilError(t, err)
+	assert.Equal(t, "bar", val)
+
+	ctx.Restore()
+
+	val, err = ctx.Query("one")
+	assert.NilError(t, err)
+	assert.Equal(t, "foo", val)
+
+	val, err = ctx.Query("foo")
+	assert.NilError(t, err)
+	assert.Equal(t, "baz", val)
+}
diff --git a/pkg/engine/context/evaluate.go b/pkg/engine/context/evaluate.go
index 78c58895f4..1624ea1b59 100644
--- a/pkg/engine/context/evaluate.go
+++ b/pkg/engine/context/evaluate.go
@@ -39,35 +39,8 @@ func (ctx *context) Query(query string) (interface{}, error) {
 }
 
 func (ctx *context) loadDeferred(query string) error {
-	loaders := ctx.getMatchingLoaders(query)
-	for _, loader := range loaders {
-		err := ctx.evaluateLoader(loader)
-		if err != nil {
-			return err
-		}
-	}
-	return nil
-}
-
-func (ctx *context) getMatchingLoaders(query string) []string {
-	ctx.deferred.mutex.Lock()
-	defer ctx.deferred.mutex.Unlock()
-	var matchingLoaders []string
-	for name := range ctx.deferred.loaders {
-		if strings.Contains(query, name) {
-			matchingLoaders = append(matchingLoaders, name)
-		}
-	}
-	return matchingLoaders
-}
-
-func (ctx *context) evaluateLoader(name string) error {
-	loader, ok := ctx.deferred.loaders[name]
-	if !ok {
-		return nil
-	}
-	delete(ctx.deferred.loaders, name)
-	return loader.LoadData()
+	level := len(ctx.jsonRawCheckpoints)
+	return ctx.deferred.LoadMatching(query, level)
 }
 
 func (ctx *context) HasChanged(jmespath string) (bool, error) {
diff --git a/pkg/engine/context/loader.go b/pkg/engine/context/loader.go
index 8e469cf137..aed146f193 100644
--- a/pkg/engine/context/loader.go
+++ b/pkg/engine/context/loader.go
@@ -14,3 +14,30 @@ type Loader interface {
 	// executed and stored data in a context
 	HasLoaded() bool
 }
+
+// DeferredLoader wraps a Loader and implements context specific behaviors.
+// A `level` is used to track the checkpoint level at which the loader was
+// created. If the level when loading occurs matches the loader's creation
+// level, the loader is discarded after execution. Otherwise, the loader is
+// retained so that it can be applied to the prior level when the checkpoint
+// is restored or reset.
+type DeferredLoader interface {
+	Name() string
+	Matches(query string) bool
+	HasLoaded() bool
+	LoadData() error
+}
+
+// LeveledLoader is a DeferredLoader with a Level
+type LeveledLoader interface {
+	// Level provides the declaration level for the DeferredLoader
+	Level() int
+	DeferredLoader
+}
+
+// DeferredLoaders manages a list of DeferredLoader instances
+type DeferredLoaders interface {
+	Add(loader DeferredLoader, level int)
+	LoadMatching(query string, level int) error
+	Reset(removeCheckpoint bool, level int)
+}
diff --git a/pkg/engine/engine.go b/pkg/engine/engine.go
index 403e51cbf1..6449a46c37 100644
--- a/pkg/engine/engine.go
+++ b/pkg/engine/engine.go
@@ -240,7 +240,7 @@ func (e *engine) invokeRuleHandler(
 		ctx,
 		"pkg/engine",
 		fmt.Sprintf("RULE %s", rule.Name),
-		func(ctx context.Context, span trace.Span) (unstructured.Unstructured, []engineapi.RuleResponse) {
+		func(ctx context.Context, span trace.Span) (patchedResource unstructured.Unstructured, results []engineapi.RuleResponse) {
 			// check if resource and rule match
 			if err := e.matches(rule, policyContext, resource); err != nil {
 				logger.V(4).Info("rule not matched", "reason", err.Error())
@@ -255,6 +255,15 @@ func (e *engine) invokeRuleHandler(
 				if ruleResp := e.hasPolicyExceptions(logger, ruleType, policyContext, rule); ruleResp != nil {
 					return resource, handlers.WithResponses(ruleResp)
 				}
+				policyContext.JSONContext().Checkpoint()
+				defer func() {
+					policyContext.JSONContext().Restore()
+					if patchedResource.Object != nil {
+						if err := policyContext.JSONContext().AddResource(patchedResource.Object); err != nil {
+							logger.Error(err, "failed to add resource in the json context")
+						}
+					}
+				}()
 				// load rule context
 				contextLoader := e.ContextLoader(policyContext.Policy(), rule)
 				if err := contextLoader(ctx, rule.Context, policyContext.JSONContext()); err != nil {
diff --git a/pkg/engine/factories/contextloaderfactory.go b/pkg/engine/factories/contextloaderfactory.go
index a1871a311d..b288c8225f 100644
--- a/pkg/engine/factories/contextloaderfactory.go
+++ b/pkg/engine/factories/contextloaderfactory.go
@@ -61,11 +61,13 @@ func (l *contextLoader) Load(
 		}
 		if loader != nil {
 			if toggle.FromContext(ctx).EnableDeferredLoading() {
-				if err := jsonContext.AddDeferredLoader(entry.Name, loader); err != nil {
+				if err := jsonContext.AddDeferredLoader(loader); err != nil {
 					return err
 				}
 			} else {
-				return loader.LoadData()
+				if err := loader.LoadData(); err != nil {
+					return err
+				}
 			}
 		}
 	}
@@ -79,11 +81,11 @@ func (l *contextLoader) newLoader(
 	rclientFactory engineapi.RegistryClientFactory,
 	entry kyvernov1.ContextEntry,
 	jsonContext enginecontext.Interface,
-) (enginecontext.Loader, error) {
+) (enginecontext.DeferredLoader, error) {
 	if entry.ConfigMap != nil {
 		if l.cmResolver != nil {
 			l := loaders.NewConfigMapLoader(ctx, l.logger, entry, l.cmResolver, jsonContext)
-			return l, nil
+			return enginecontext.NewDeferredLoader(entry.Name, l)
 		} else {
 			l.logger.Info("disabled loading of ConfigMap context entry %s", entry.Name)
 			return nil, nil
@@ -91,7 +93,7 @@ func (l *contextLoader) newLoader(
 	} else if entry.APICall != nil {
 		if client != nil {
 			l := loaders.NewAPILoader(ctx, l.logger, entry, jsonContext, jp, client)
-			return l, nil
+			return enginecontext.NewDeferredLoader(entry.Name, l)
 		} else {
 			l.logger.Info("disabled loading of APICall context entry %s", entry.Name)
 			return nil, nil
@@ -99,14 +101,14 @@ func (l *contextLoader) newLoader(
 	} else if entry.ImageRegistry != nil {
 		if rclientFactory != nil {
 			l := loaders.NewImageDataLoader(ctx, l.logger, entry, jsonContext, jp, rclientFactory)
-			return l, nil
+			return enginecontext.NewDeferredLoader(entry.Name, l)
 		} else {
 			l.logger.Info("disabled loading of ImageRegistry context entry %s", entry.Name)
 			return nil, nil
 		}
 	} else if entry.Variable != nil {
 		l := loaders.NewVariableLoader(l.logger, entry, jsonContext, jp)
-		return l, nil
+		return enginecontext.NewDeferredLoader(entry.Name, l)
 	}
 	return nil, fmt.Errorf("missing ConfigMap|APICall|ImageRegistry|Variable in context entry %s", entry.Name)
 }
diff --git a/pkg/engine/mutation_test.go b/pkg/engine/mutation_test.go
index 2266c1f15b..c0473f378d 100644
--- a/pkg/engine/mutation_test.go
+++ b/pkg/engine/mutation_test.go
@@ -269,6 +269,7 @@ func Test_variableSubstitutionCLI(t *testing.T) {
 		policyContext,
 		ctxLoaderFactory,
 	)
+
 	require.Equal(t, 1, len(er.PolicyResponse.Rules))
 
 	patched := er.PatchedResource
diff --git a/pkg/engine/policycontext/policy_context.go b/pkg/engine/policycontext/policy_context.go
index b894716684..7986294cfb 100644
--- a/pkg/engine/policycontext/policy_context.go
+++ b/pkg/engine/policycontext/policy_context.go
@@ -232,7 +232,7 @@ func NewPolicyContextFromAdmissionRequest(
 	gvk schema.GroupVersionKind,
 	configuration config.Configuration,
 ) (*PolicyContext, error) {
-	ctx, err := newVariablesContext(jp, request, &admissionInfo)
+	engineCtx, err := newJsonContext(jp, request, &admissionInfo)
 	if err != nil {
 		return nil, fmt.Errorf("failed to create policy rule context: %w", err)
 	}
@@ -240,10 +240,10 @@ func NewPolicyContextFromAdmissionRequest(
 	if err != nil {
 		return nil, fmt.Errorf("failed to parse resource: %w", err)
 	}
-	if err := ctx.AddImageInfos(&newResource, configuration); err != nil {
+	if err := engineCtx.AddImageInfos(&newResource, configuration); err != nil {
 		return nil, fmt.Errorf("failed to add image information to the policy rule context: %w", err)
 	}
-	policyContext := newPolicyContextWithJsonContext(kyvernov1.AdmissionOperation(request.Operation), ctx).
+	policyContext := newPolicyContextWithJsonContext(kyvernov1.AdmissionOperation(request.Operation), engineCtx).
 		WithNewResource(newResource).
 		WithOldResource(oldResource).
 		WithAdmissionInfo(admissionInfo).
@@ -253,20 +253,20 @@ func NewPolicyContextFromAdmissionRequest(
 	return policyContext, nil
 }
 
-func newVariablesContext(
+func newJsonContext(
 	jp jmespath.Interface,
 	request admissionv1.AdmissionRequest,
 	userRequestInfo *kyvernov1beta1.RequestInfo,
 ) (enginectx.Interface, error) {
-	ctx := enginectx.NewContext(jp)
-	if err := ctx.AddRequest(request); err != nil {
+	engineCtx := enginectx.NewContext(jp)
+	if err := engineCtx.AddRequest(request); err != nil {
 		return nil, fmt.Errorf("failed to load incoming request in context: %w", err)
 	}
-	if err := ctx.AddUserInfo(*userRequestInfo); err != nil {
+	if err := engineCtx.AddUserInfo(*userRequestInfo); err != nil {
 		return nil, fmt.Errorf("failed to load userInfo in context: %w", err)
 	}
-	if err := ctx.AddServiceAccount(userRequestInfo.AdmissionUserInfo.Username); err != nil {
+	if err := engineCtx.AddServiceAccount(userRequestInfo.AdmissionUserInfo.Username); err != nil {
 		return nil, fmt.Errorf("failed to load service account in context: %w", err)
 	}
-	return ctx, nil
+	return engineCtx, nil
 }
diff --git a/pkg/engine/validation_test.go b/pkg/engine/validation_test.go
index 00b32dbbe9..c280cf1095 100644
--- a/pkg/engine/validation_test.go
+++ b/pkg/engine/validation_test.go
@@ -6,6 +6,7 @@ import (
 	"strings"
 	"testing"
 
+	kyverno "github.com/kyverno/kyverno/api/kyverno/v1"
 	kyvernov1 "github.com/kyverno/kyverno/api/kyverno/v1"
 	kyvernov1beta1 "github.com/kyverno/kyverno/api/kyverno/v1beta1"
 	"github.com/kyverno/kyverno/pkg/config"
@@ -50,7 +51,7 @@ func testValidate(
 func newPolicyContext(
 	t *testing.T,
 	resource unstructured.Unstructured,
-	operation kyvernov1.AdmissionOperation,
+	operation kyverno.AdmissionOperation,
 	admissionInfo *kyvernov1beta1.RequestInfo,
 ) *PolicyContext {
 	t.Helper()
@@ -2142,7 +2143,7 @@ func executeTest(t *testing.T, test testCase) {
 		t.Fatal(err)
 	}
 
-	pc := newPolicyContext(t, newR, kyvernov1.AdmissionOperation(request.Operation), &userInfo).
+	pc := newPolicyContext(t, newR, kyverno.AdmissionOperation(request.Operation), &userInfo).
 		WithPolicy(&policy).
 		WithOldResource(oldR)
 
diff --git a/test/conformance/kuttl/deferred/dependencies/01-apply-manifests.yaml b/test/conformance/kuttl/deferred/dependencies/01-apply-manifests.yaml
new file mode 100644
index 0000000000..9ad278051c
--- /dev/null
+++ b/test/conformance/kuttl/deferred/dependencies/01-apply-manifests.yaml
@@ -0,0 +1,6 @@
+apiVersion: kuttl.dev/v1beta1
+kind: TestStep
+apply:
+- manifests.yaml
+assert:
+- policy-assert.yaml
\ No newline at end of file
diff --git a/test/conformance/kuttl/deferred/dependencies/02-testcase.yaml b/test/conformance/kuttl/deferred/dependencies/02-testcase.yaml
new file mode 100644
index 0000000000..6236f803a5
--- /dev/null
+++ b/test/conformance/kuttl/deferred/dependencies/02-testcase.yaml
@@ -0,0 +1,5 @@
+apiVersion: kuttl.dev/v1beta1
+kind: TestStep
+apply:
+  - file: deploy.yaml
+    shouldFail: true
diff --git a/test/conformance/kuttl/deferred/dependencies/README.md b/test/conformance/kuttl/deferred/dependencies/README.md
new file mode 100644
index 0000000000..a19b14626b
--- /dev/null
+++ b/test/conformance/kuttl/deferred/dependencies/README.md
@@ -0,0 +1,12 @@
+## Description
+
+This test checks for handling of variable dependencies with deferred lookups
+
+## Expected Behavior
+
+The deployment should fail
+
+## Reference Issues
+
+https://github.com/kyverno/kyverno/issues/7486
+
diff --git a/test/conformance/kuttl/deferred/dependencies/deploy.yaml b/test/conformance/kuttl/deferred/dependencies/deploy.yaml
new file mode 100644
index 0000000000..c03b8fa60f
--- /dev/null
+++ b/test/conformance/kuttl/deferred/dependencies/deploy.yaml
@@ -0,0 +1,28 @@
+
+---
+apiVersion: apps/v1
+kind: Deployment
+metadata:
+  name: test
+  namespace: acme-fitness
+  labels:
+    app: kubecost-cost-analyzer
+spec:
+  replicas: 3
+  selector:
+    matchLabels:
+      app: kubecost-cost-analyzer
+  template:
+    metadata:
+      labels:
+        app: kubecost-cost-analyzer
+    spec:
+      containers:
+      - name: cost-model
+        image: nginx:1.14.2
+        resources:
+          requests:
+            cpu: 350m
+            memory: 500Mi
+          limits:
+            memory: 2Gi
diff --git a/test/conformance/kuttl/deferred/dependencies/manifests.yaml b/test/conformance/kuttl/deferred/dependencies/manifests.yaml
new file mode 100644
index 0000000000..ffdbf0a9af
--- /dev/null
+++ b/test/conformance/kuttl/deferred/dependencies/manifests.yaml
@@ -0,0 +1,73 @@
+---
+apiVersion: v1
+kind: Namespace
+metadata:
+  name: acme-fitness
+---
+apiVersion: kyverno.io/v1
+kind: ClusterPolicy
+metadata:
+  name: enforce-company-budget
+spec:
+  validationFailureAction: Enforce
+  rules:
+  - name: check-kubecost-budget
+    match:
+      any:
+      - resources:
+          kinds:
+          - Deployment
+          operations:
+          - CREATE
+    context:
+    # Mocked response from the Kubecost prediction API until it natively supports JSON input. 
+    # Get the predicted amount of the Deployment and transform to get the totalMonthlyRate.
+    - name: predictedcost
+      variable:
+        jmesPath: '[0].costChange.totalMonthlyRate'
+        value:
+          - namespace: acme-fitness
+            controllerKind: deployment
+            controllerName: test
+            costBefore:
+              totalMonthlyRate: 0
+              cpuMonthlyRate: 0
+              ramMonthlyRate: 0
+              gpuMonthlyRate: 0
+              monthlyCPUCoreHours: 0
+              monthlyRAMByteHours: 0
+              monthlyGPUHours: 0
+            costAfter:
+              totalMonthlyRate: 28.839483652409793
+              cpuMonthlyRate: 24.295976357646456
+              ramMonthlyRate: 4.543507294763337
+              gpuMonthlyRate: 0
+              monthlyCPUCoreHours: 766.5
+              monthlyRAMByteHours: 1.14819072e+12
+              monthlyGPUHours: 0
+            costChange:
+              totalMonthlyRate: 92.839483652409793
+              cpuMonthlyRate: 24.295976357646456
+              ramMonthlyRate: 4.543507294763337
+              gpuMonthlyRate: 0
+              monthlyCPUCoreHours: 766.5
+              monthlyRAMByteHours: 1.14819072e+12
+              monthlyGPUHours: 0
+    - name: budget
+      variable:
+        value:
+          spendLimit: 100.0
+          currentSpend: 73.0
+    # Calculate the budget that remains from the window by subtracting the currentSpend from the spendLimit.
+    - name: remainingbudget
+      variable:
+        jmesPath: subtract(`{{budget.spendLimit}}`,`{{budget.currentSpend}}`)
+    validate:
+      # Need to improve this by rounding.
+      message: "This Deployment, which costs ${{ predictedcost }} to run for a month, will overrun the remaining budget of ${{ remainingbudget }}. Please seek approval."
+      deny:
+        conditions:
+          all:
+          - key: "{{ predictedcost }}"
+            operator: GreaterThan
+            value: "{{ remainingbudget }}"
\ No newline at end of file
diff --git a/test/conformance/kuttl/deferred/dependencies/policy-assert.yaml b/test/conformance/kuttl/deferred/dependencies/policy-assert.yaml
new file mode 100644
index 0000000000..8ce29958ed
--- /dev/null
+++ b/test/conformance/kuttl/deferred/dependencies/policy-assert.yaml
@@ -0,0 +1,9 @@
+apiVersion: kyverno.io/v1
+kind: ClusterPolicy
+metadata:
+  name: enforce-company-budget
+status:
+  conditions:
+  - reason: Succeeded
+    status: "True"
+    type: Ready
diff --git a/test/conformance/kuttl/deferred/foreach/01-apply.yaml b/test/conformance/kuttl/deferred/foreach/01-apply.yaml
new file mode 100644
index 0000000000..9ad278051c
--- /dev/null
+++ b/test/conformance/kuttl/deferred/foreach/01-apply.yaml
@@ -0,0 +1,6 @@
+apiVersion: kuttl.dev/v1beta1
+kind: TestStep
+apply:
+- manifests.yaml
+assert:
+- policy-assert.yaml
\ No newline at end of file
diff --git a/test/conformance/kuttl/deferred/foreach/02-testcase.yaml b/test/conformance/kuttl/deferred/foreach/02-testcase.yaml
new file mode 100644
index 0000000000..19be21932d
--- /dev/null
+++ b/test/conformance/kuttl/deferred/foreach/02-testcase.yaml
@@ -0,0 +1,7 @@
+apiVersion: kuttl.dev/v1beta1
+kind: TestStep
+apply:
+  - file: cm.yaml
+    shouldFail: false
+assert:
+- cm-assert.yaml
\ No newline at end of file
diff --git a/test/conformance/kuttl/deferred/foreach/README.md b/test/conformance/kuttl/deferred/foreach/README.md
new file mode 100644
index 0000000000..508653b40b
--- /dev/null
+++ b/test/conformance/kuttl/deferred/foreach/README.md
@@ -0,0 +1,11 @@
+## Description
+
+This test checks for deferred variable substitutions in foreach loops
+
+## Expected Behavior
+
+The CM should be created with three new entries
+
+## Reference Issues
+
+https://github.com/kyverno/kyverno/issues/7532
diff --git a/test/conformance/kuttl/deferred/foreach/cm-assert.yaml b/test/conformance/kuttl/deferred/foreach/cm-assert.yaml
new file mode 100644
index 0000000000..765e7b79a0
--- /dev/null
+++ b/test/conformance/kuttl/deferred/foreach/cm-assert.yaml
@@ -0,0 +1,8 @@
+apiVersion: v1
+kind: ConfigMap
+metadata:
+  name: testcase-7fki3-resource
+data:
+  from_loop_1: AAA
+  from_loop_2: AAA
+  from_loop_3: AAA
diff --git a/test/conformance/kuttl/deferred/foreach/cm.yaml b/test/conformance/kuttl/deferred/foreach/cm.yaml
new file mode 100644
index 0000000000..dc353e80a0
--- /dev/null
+++ b/test/conformance/kuttl/deferred/foreach/cm.yaml
@@ -0,0 +1,4 @@
+apiVersion: v1
+kind: ConfigMap
+metadata:
+  name: testcase-7fki3-resource
diff --git a/test/conformance/kuttl/deferred/foreach/manifests.yaml b/test/conformance/kuttl/deferred/foreach/manifests.yaml
new file mode 100644
index 0000000000..e4341905bc
--- /dev/null
+++ b/test/conformance/kuttl/deferred/foreach/manifests.yaml
@@ -0,0 +1,45 @@
+apiVersion: kyverno.io/v1
+kind: ClusterPolicy
+metadata:
+  name: testcase-7fki3
+spec:
+  schemaValidation: false
+  background: false
+  validationFailureAction: Enforce
+  rules:
+  - name: mutate1
+    match:
+      all:
+      - resources:
+          kinds:
+          - v1/ConfigMap
+          names:
+          - testcase-7fki3-resource
+    context:
+    - name: var1
+      variable:
+        value: AAA
+    preconditions:
+      all:
+      - key: "{{ request.operation }}"
+        operator: In
+        value:
+        - CREATE
+        - UPDATE
+    mutate:
+      foreach:
+      # first loop
+      - list: "['dummy']"
+        patchStrategicMerge:
+          data:
+            from_loop_1: "{{ var1 || '!!!variable not resolved!!!' }}"
+      # second loop
+      - list: "['dummy']"
+        patchStrategicMerge:
+          data:
+            from_loop_2: "{{ var1 || '!!!variable not resolved!!!' }}"
+      # third loop
+      - list: "['dummy']"
+        patchStrategicMerge:
+          data:
+            from_loop_3: "{{ var1 || '!!!variable not resolved!!!' }}"
diff --git a/test/conformance/kuttl/deferred/foreach/policy-assert.yaml b/test/conformance/kuttl/deferred/foreach/policy-assert.yaml
new file mode 100644
index 0000000000..d83273fb9e
--- /dev/null
+++ b/test/conformance/kuttl/deferred/foreach/policy-assert.yaml
@@ -0,0 +1,9 @@
+apiVersion: kyverno.io/v1
+kind: ClusterPolicy
+metadata:
+  name: testcase-7fki3
+status:
+  conditions:
+  - reason: Succeeded
+    status: "True"
+    type: Ready
diff --git a/test/conformance/kuttl/deferred/recursive/01-policy.yaml b/test/conformance/kuttl/deferred/recursive/01-policy.yaml
new file mode 100644
index 0000000000..b20ef0bd7d
--- /dev/null
+++ b/test/conformance/kuttl/deferred/recursive/01-policy.yaml
@@ -0,0 +1,6 @@
+apiVersion: kuttl.dev/v1beta1
+kind: TestStep
+apply:
+- policy.yaml
+assert:
+- policy-assert.yaml
\ No newline at end of file
diff --git a/test/conformance/kuttl/deferred/recursive/02-resource.yaml b/test/conformance/kuttl/deferred/recursive/02-resource.yaml
new file mode 100644
index 0000000000..d0d2400d67
--- /dev/null
+++ b/test/conformance/kuttl/deferred/recursive/02-resource.yaml
@@ -0,0 +1,6 @@
+apiVersion: kuttl.dev/v1beta1
+kind: TestStep
+apply:
+  - file: resource.yaml
+assert:
+  - resource-assert.yaml
diff --git a/test/conformance/kuttl/deferred/recursive/README.md b/test/conformance/kuttl/deferred/recursive/README.md
new file mode 100644
index 0000000000..461794aa76
--- /dev/null
+++ b/test/conformance/kuttl/deferred/recursive/README.md
@@ -0,0 +1,7 @@
+## Description
+
+This test checks for handling of variable dependencies with the same name with deferred lookups in a foreach
+
+## Expected Behavior
+
+The configmap should create fine and contain `one: one` in the data.
diff --git a/test/conformance/kuttl/deferred/recursive/policy-assert.yaml b/test/conformance/kuttl/deferred/recursive/policy-assert.yaml
new file mode 100644
index 0000000000..6277d9899f
--- /dev/null
+++ b/test/conformance/kuttl/deferred/recursive/policy-assert.yaml
@@ -0,0 +1,9 @@
+apiVersion: kyverno.io/v1
+kind: ClusterPolicy
+metadata:
+  name: one
+status:
+  conditions:
+  - reason: Succeeded
+    status: "True"
+    type: Ready
diff --git a/test/conformance/kuttl/deferred/recursive/policy.yaml b/test/conformance/kuttl/deferred/recursive/policy.yaml
new file mode 100644
index 0000000000..4965a30bc4
--- /dev/null
+++ b/test/conformance/kuttl/deferred/recursive/policy.yaml
@@ -0,0 +1,26 @@
+apiVersion: kyverno.io/v1
+kind: ClusterPolicy
+metadata:
+  name: one
+spec:
+  validationFailureAction: Enforce
+  rules:
+  - name: one
+    match:
+      all:
+      - resources:
+          kinds:
+          - v1/ConfigMap
+    context:
+    - name: one
+      variable:
+        value: one
+    - name: one
+      variable:
+        jmesPath: one
+    mutate:
+      foreach:
+      - list: "['dummy']"
+        patchStrategicMerge:
+          data:
+            one: "{{ one }}"
diff --git a/test/conformance/kuttl/deferred/recursive/resource-assert.yaml b/test/conformance/kuttl/deferred/recursive/resource-assert.yaml
new file mode 100644
index 0000000000..fbe5a01ff6
--- /dev/null
+++ b/test/conformance/kuttl/deferred/recursive/resource-assert.yaml
@@ -0,0 +1,6 @@
+apiVersion: v1
+kind: ConfigMap
+metadata:
+  name: one
+data:
+  one: one
diff --git a/test/conformance/kuttl/deferred/recursive/resource.yaml b/test/conformance/kuttl/deferred/recursive/resource.yaml
new file mode 100644
index 0000000000..1d967e6ede
--- /dev/null
+++ b/test/conformance/kuttl/deferred/recursive/resource.yaml
@@ -0,0 +1,4 @@
+apiVersion: v1
+kind: ConfigMap
+metadata:
+  name: one
diff --git a/test/conformance/kuttl/deferred/resolve-overriden-variable/01-policy.yaml b/test/conformance/kuttl/deferred/resolve-overriden-variable/01-policy.yaml
new file mode 100644
index 0000000000..b20ef0bd7d
--- /dev/null
+++ b/test/conformance/kuttl/deferred/resolve-overriden-variable/01-policy.yaml
@@ -0,0 +1,6 @@
+apiVersion: kuttl.dev/v1beta1
+kind: TestStep
+apply:
+- policy.yaml
+assert:
+- policy-assert.yaml
\ No newline at end of file
diff --git a/test/conformance/kuttl/deferred/resolve-overriden-variable/02-resource.yaml b/test/conformance/kuttl/deferred/resolve-overriden-variable/02-resource.yaml
new file mode 100644
index 0000000000..d0d2400d67
--- /dev/null
+++ b/test/conformance/kuttl/deferred/resolve-overriden-variable/02-resource.yaml
@@ -0,0 +1,6 @@
+apiVersion: kuttl.dev/v1beta1
+kind: TestStep
+apply:
+  - file: resource.yaml
+assert:
+  - resource-assert.yaml
diff --git a/test/conformance/kuttl/deferred/resolve-overriden-variable/README.md b/test/conformance/kuttl/deferred/resolve-overriden-variable/README.md
new file mode 100644
index 0000000000..a03b65ca6f
--- /dev/null
+++ b/test/conformance/kuttl/deferred/resolve-overriden-variable/README.md
@@ -0,0 +1,9 @@
+## Description
+
+This test checks for handling of variable dependencies with the same name:
+- the same name is used twice in the rule context
+- the same name is also used in a foreach context
+
+## Expected Behavior
+
+The configmap should create fine and contain `one: one` in the data.
diff --git a/test/conformance/kuttl/deferred/resolve-overriden-variable/policy-assert.yaml b/test/conformance/kuttl/deferred/resolve-overriden-variable/policy-assert.yaml
new file mode 100644
index 0000000000..6277d9899f
--- /dev/null
+++ b/test/conformance/kuttl/deferred/resolve-overriden-variable/policy-assert.yaml
@@ -0,0 +1,9 @@
+apiVersion: kyverno.io/v1
+kind: ClusterPolicy
+metadata:
+  name: one
+status:
+  conditions:
+  - reason: Succeeded
+    status: "True"
+    type: Ready
diff --git a/test/conformance/kuttl/deferred/resolve-overriden-variable/policy.yaml b/test/conformance/kuttl/deferred/resolve-overriden-variable/policy.yaml
new file mode 100644
index 0000000000..7737635f08
--- /dev/null
+++ b/test/conformance/kuttl/deferred/resolve-overriden-variable/policy.yaml
@@ -0,0 +1,33 @@
+apiVersion: kyverno.io/v1
+kind: ClusterPolicy
+metadata:
+  name: one
+spec:
+  validationFailureAction: Enforce
+  rules:
+  - name: one
+    match:
+      all:
+      - resources:
+          kinds:
+          - v1/ConfigMap
+    context:
+    - name: foo
+      variable:
+        value: foo
+    - name: one
+      variable:
+        jmesPath: foo
+    - name: foo
+      variable:
+        value: baz
+    mutate:
+      foreach:
+      - list: "['dummy']"
+        context:
+        - name: foo
+          variable:
+            value: bar
+        patchStrategicMerge:
+          data:
+            one: "{{ one }}"
diff --git a/test/conformance/kuttl/deferred/resolve-overriden-variable/resource-assert.yaml b/test/conformance/kuttl/deferred/resolve-overriden-variable/resource-assert.yaml
new file mode 100644
index 0000000000..da586862c4
--- /dev/null
+++ b/test/conformance/kuttl/deferred/resolve-overriden-variable/resource-assert.yaml
@@ -0,0 +1,6 @@
+apiVersion: v1
+kind: ConfigMap
+metadata:
+  name: one
+data:
+  one: foo
diff --git a/test/conformance/kuttl/deferred/resolve-overriden-variable/resource.yaml b/test/conformance/kuttl/deferred/resolve-overriden-variable/resource.yaml
new file mode 100644
index 0000000000..1d967e6ede
--- /dev/null
+++ b/test/conformance/kuttl/deferred/resolve-overriden-variable/resource.yaml
@@ -0,0 +1,4 @@
+apiVersion: v1
+kind: ConfigMap
+metadata:
+  name: one
diff --git a/test/conformance/kuttl/deferred/two-rules/01-policy.yaml b/test/conformance/kuttl/deferred/two-rules/01-policy.yaml
new file mode 100644
index 0000000000..b20ef0bd7d
--- /dev/null
+++ b/test/conformance/kuttl/deferred/two-rules/01-policy.yaml
@@ -0,0 +1,6 @@
+apiVersion: kuttl.dev/v1beta1
+kind: TestStep
+apply:
+- policy.yaml
+assert:
+- policy-assert.yaml
\ No newline at end of file
diff --git a/test/conformance/kuttl/deferred/two-rules/02-resource.yaml b/test/conformance/kuttl/deferred/two-rules/02-resource.yaml
new file mode 100644
index 0000000000..d0d2400d67
--- /dev/null
+++ b/test/conformance/kuttl/deferred/two-rules/02-resource.yaml
@@ -0,0 +1,6 @@
+apiVersion: kuttl.dev/v1beta1
+kind: TestStep
+apply:
+  - file: resource.yaml
+assert:
+  - resource-assert.yaml
diff --git a/test/conformance/kuttl/deferred/two-rules/README.md b/test/conformance/kuttl/deferred/two-rules/README.md
new file mode 100644
index 0000000000..7e5e28d1a9
--- /dev/null
+++ b/test/conformance/kuttl/deferred/two-rules/README.md
@@ -0,0 +1,13 @@
+## Description
+
+This test checks that variables don't leak from one rule to the next.
+The second rule tries to use a variable from the first rule, it should not find it.
+
+## Expected Behavior
+
+The configmap creates fine with the data:
+```yaml
+data:
+    one: test
+    two: "null"
+```
diff --git a/test/conformance/kuttl/deferred/two-rules/policy-assert.yaml b/test/conformance/kuttl/deferred/two-rules/policy-assert.yaml
new file mode 100644
index 0000000000..6277d9899f
--- /dev/null
+++ b/test/conformance/kuttl/deferred/two-rules/policy-assert.yaml
@@ -0,0 +1,9 @@
+apiVersion: kyverno.io/v1
+kind: ClusterPolicy
+metadata:
+  name: one
+status:
+  conditions:
+  - reason: Succeeded
+    status: "True"
+    type: Ready
diff --git a/test/conformance/kuttl/deferred/two-rules/policy.yaml b/test/conformance/kuttl/deferred/two-rules/policy.yaml
new file mode 100644
index 0000000000..592fbdc5d7
--- /dev/null
+++ b/test/conformance/kuttl/deferred/two-rules/policy.yaml
@@ -0,0 +1,35 @@
+apiVersion: kyverno.io/v1
+kind: ClusterPolicy
+metadata:
+  name: one
+spec:
+  validationFailureAction: Enforce
+  rules:
+  - name: one
+    match:
+      all:
+      - resources:
+          kinds:
+          - v1/ConfigMap
+    context:
+    - name: var
+      variable:
+        value: test
+    mutate:
+      foreach:
+      - list: "['dummy']"
+        patchStrategicMerge:
+          data:
+            one: "{{ to_string(var) }}"
+  - name: two
+    match:
+      all:
+      - resources:
+          kinds:
+          - v1/ConfigMap
+    mutate:
+      foreach:
+      - list: "['dummy']"
+        patchStrategicMerge:
+          data:
+            two: "{{ to_string(var) }}"
diff --git a/test/conformance/kuttl/deferred/two-rules/resource-assert.yaml b/test/conformance/kuttl/deferred/two-rules/resource-assert.yaml
new file mode 100644
index 0000000000..aa4184d5ea
--- /dev/null
+++ b/test/conformance/kuttl/deferred/two-rules/resource-assert.yaml
@@ -0,0 +1,7 @@
+apiVersion: v1
+kind: ConfigMap
+metadata:
+  name: one
+data:
+  one: test
+  two: "null"
diff --git a/test/conformance/kuttl/deferred/two-rules/resource.yaml b/test/conformance/kuttl/deferred/two-rules/resource.yaml
new file mode 100644
index 0000000000..1d967e6ede
--- /dev/null
+++ b/test/conformance/kuttl/deferred/two-rules/resource.yaml
@@ -0,0 +1,4 @@
+apiVersion: v1
+kind: ConfigMap
+metadata:
+  name: one