diff --git a/charts/kyverno-policies/Chart.yaml b/charts/kyverno-policies/Chart.yaml
index 05b1e3cf76..3d4184aeb4 100644
--- a/charts/kyverno-policies/Chart.yaml
+++ b/charts/kyverno-policies/Chart.yaml
@@ -29,3 +29,5 @@ annotations:
       description: Fix Kyverno version check when image tag contains registry port number
     - kind: fixed
       description: Ensure preconditions are present with default values
+    - kind: added
+      description: Support for failurePolicy setting in kyverno-policies helm chart
diff --git a/charts/kyverno-policies/README.md b/charts/kyverno-policies/README.md
index 5713c2aa5e..b6f022946e 100644
--- a/charts/kyverno-policies/README.md
+++ b/charts/kyverno-policies/README.md
@@ -68,6 +68,7 @@ The command removes all the Kubernetes components associated with the chart and
 | podSecurityPolicies | list | `[]` | Policies to include when `podSecurityStandard` is `custom`. |
 | includeOtherPolicies | list | `[]` | Additional policies to include from `other`. |
 | validationFailureAction | string | `"audit"` | Validation failure action (`audit`, `enforce`). For more info https://kyverno.io/docs/writing-policies/validate. |
+| failurePolicy | string | `"Fail"` | API server behavior if the webhook fails to respond ('Ignore', 'Fail') For more info: https://kyverno.io/docs/writing-policies/policy-settings/ |
 | validationFailureActionOverrides | object | `{"all":[]}` | Define validationFailureActionOverrides for specific policies. The overrides for `all` will apply to all policies. |
 | policyExclude | object | `{}` | Exclude resources from individual policies. Policies with multiple rules can have individual rules excluded by using the name of the rule as the key in the `policyExclude` map. |
 | policyPreconditions | object | `{}` | Add preconditions to individual policies. Policies with multiple rules can have individual rules excluded by using the name of the rule as the key in the `policyPreconditions` map. |
diff --git a/charts/kyverno-policies/templates/baseline/disallow-capabilities.yaml b/charts/kyverno-policies/templates/baseline/disallow-capabilities.yaml
index 7395b70b89..2e6ff8d21f 100644
--- a/charts/kyverno-policies/templates/baseline/disallow-capabilities.yaml
+++ b/charts/kyverno-policies/templates/baseline/disallow-capabilities.yaml
@@ -23,6 +23,7 @@ spec:
   validationFailureActionOverrides: {{ toYaml . | nindent 4 }}
   {{- end }}
   background: {{ .Values.background }}
+  failurePolicy: {{ .Values.failurePolicy }}
   rules:
     - name: adding-capabilities
       match:
diff --git a/charts/kyverno-policies/templates/baseline/disallow-host-namespaces.yaml b/charts/kyverno-policies/templates/baseline/disallow-host-namespaces.yaml
index 6210b59d2d..c24e8bbda9 100644
--- a/charts/kyverno-policies/templates/baseline/disallow-host-namespaces.yaml
+++ b/charts/kyverno-policies/templates/baseline/disallow-host-namespaces.yaml
@@ -24,6 +24,7 @@ spec:
   validationFailureActionOverrides: {{ toYaml . | nindent 4 }}
   {{- end }}
   background: {{ .Values.background }}
+  failurePolicy: {{ .Values.failurePolicy }}
   rules:
     - name: host-namespaces
       match:
diff --git a/charts/kyverno-policies/templates/baseline/disallow-host-path.yaml b/charts/kyverno-policies/templates/baseline/disallow-host-path.yaml
index 4a3f270542..fe04cd6327 100644
--- a/charts/kyverno-policies/templates/baseline/disallow-host-path.yaml
+++ b/charts/kyverno-policies/templates/baseline/disallow-host-path.yaml
@@ -23,6 +23,7 @@ spec:
   validationFailureActionOverrides: {{ toYaml . | nindent 4 }}
   {{- end }}
   background: {{ .Values.background }}
+  failurePolicy: {{ .Values.failurePolicy }}
   rules:
     - name: host-path
       match:
diff --git a/charts/kyverno-policies/templates/baseline/disallow-host-ports.yaml b/charts/kyverno-policies/templates/baseline/disallow-host-ports.yaml
index 48afcc71f3..57511b9aa6 100644
--- a/charts/kyverno-policies/templates/baseline/disallow-host-ports.yaml
+++ b/charts/kyverno-policies/templates/baseline/disallow-host-ports.yaml
@@ -16,13 +16,14 @@ metadata:
     policies.kyverno.io/description: >-
       Access to host ports allows potential snooping of network traffic and should not be
       allowed, or at minimum restricted to a known list. This policy ensures the `hostPort`
-      field is unset or set to `0`. 
+      field is unset or set to `0`.
 spec:
   validationFailureAction: {{ .Values.validationFailureAction }}
   {{- with concat (index .Values "validationFailureActionOverrides" "all") (default list (index .Values "validationFailureActionOverrides" $name)) }}
   validationFailureActionOverrides: {{ toYaml . | nindent 4 }}
   {{- end }}
   background: {{ .Values.background }}
+  failurePolicy: {{ .Values.failurePolicy }}
   rules:
     - name: host-ports-none
       match:
@@ -54,4 +55,4 @@ spec:
             containers:
               - =(ports):
                   - =(hostPort): 0
-{{- end }}
\ No newline at end of file
+{{- end }}
diff --git a/charts/kyverno-policies/templates/baseline/disallow-host-process.yaml b/charts/kyverno-policies/templates/baseline/disallow-host-process.yaml
index b71547aab5..2ce2733cda 100644
--- a/charts/kyverno-policies/templates/baseline/disallow-host-process.yaml
+++ b/charts/kyverno-policies/templates/baseline/disallow-host-process.yaml
@@ -24,6 +24,7 @@ spec:
   validationFailureActionOverrides: {{ toYaml . | nindent 4 }}
   {{- end }}
   background: {{ .Values.background }}
+  failurePolicy: {{ .Values.failurePolicy }}
   rules:
     - name: host-process-containers
       match:
diff --git a/charts/kyverno-policies/templates/baseline/disallow-privileged-containers.yaml b/charts/kyverno-policies/templates/baseline/disallow-privileged-containers.yaml
index c21b1e1777..79e13521da 100644
--- a/charts/kyverno-policies/templates/baseline/disallow-privileged-containers.yaml
+++ b/charts/kyverno-policies/templates/baseline/disallow-privileged-containers.yaml
@@ -22,6 +22,7 @@ spec:
   validationFailureActionOverrides: {{ toYaml . | nindent 4 }}
   {{- end }}
   background: {{ .Values.background }}
+  failurePolicy: {{ .Values.failurePolicy }}
   rules:
     - name: privileged-containers
       match:
diff --git a/charts/kyverno-policies/templates/baseline/disallow-proc-mount.yaml b/charts/kyverno-policies/templates/baseline/disallow-proc-mount.yaml
index 7336eca151..0d6a298179 100644
--- a/charts/kyverno-policies/templates/baseline/disallow-proc-mount.yaml
+++ b/charts/kyverno-policies/templates/baseline/disallow-proc-mount.yaml
@@ -24,6 +24,7 @@ spec:
   validationFailureActionOverrides: {{ toYaml . | nindent 4 }}
   {{- end }}
   background: {{ .Values.background }}
+  failurePolicy: {{ .Values.failurePolicy }}
   rules:
     - name: check-proc-mount
       match:
diff --git a/charts/kyverno-policies/templates/baseline/disallow-selinux.yaml b/charts/kyverno-policies/templates/baseline/disallow-selinux.yaml
index dfb3e64871..6c18ad991d 100644
--- a/charts/kyverno-policies/templates/baseline/disallow-selinux.yaml
+++ b/charts/kyverno-policies/templates/baseline/disallow-selinux.yaml
@@ -22,6 +22,7 @@ spec:
   validationFailureActionOverrides: {{ toYaml . | nindent 4 }}
   {{- end }}
   background: {{ .Values.background }}
+  failurePolicy: {{ .Values.failurePolicy }}
   rules:
     - name: selinux-type
       match:
diff --git a/charts/kyverno-policies/templates/baseline/restrict-apparmor-profiles.yaml b/charts/kyverno-policies/templates/baseline/restrict-apparmor-profiles.yaml
index e3fc774812..b59b661041 100644
--- a/charts/kyverno-policies/templates/baseline/restrict-apparmor-profiles.yaml
+++ b/charts/kyverno-policies/templates/baseline/restrict-apparmor-profiles.yaml
@@ -25,6 +25,7 @@ spec:
   validationFailureActionOverrides: {{ toYaml . | nindent 4 }}
   {{- end }}
   background: {{ .Values.background }}
+  failurePolicy: {{ .Values.failurePolicy }}
   rules:
     - name: app-armor
       match:
diff --git a/charts/kyverno-policies/templates/baseline/restrict-seccomp.yaml b/charts/kyverno-policies/templates/baseline/restrict-seccomp.yaml
index e593b000a0..faa98d0c4e 100644
--- a/charts/kyverno-policies/templates/baseline/restrict-seccomp.yaml
+++ b/charts/kyverno-policies/templates/baseline/restrict-seccomp.yaml
@@ -14,8 +14,8 @@ metadata:
     kyverno.io/kyverno-version: 1.6.0
     kyverno.io/kubernetes-version: "1.22-1.23"
     policies.kyverno.io/description: >-
-      The seccomp profile must not be explicitly set to Unconfined. This policy, 
-      requiring Kubernetes v1.19 or later, ensures that seccomp is unset or 
+      The seccomp profile must not be explicitly set to Unconfined. This policy,
+      requiring Kubernetes v1.19 or later, ensures that seccomp is unset or
       set to `RuntimeDefault` or `Localhost`.
 spec:
   background: {{ .Values.background }}
@@ -23,6 +23,7 @@ spec:
   {{- with concat (index .Values "validationFailureActionOverrides" "all") (default list (index .Values "validationFailureActionOverrides" $name)) }}
   validationFailureActionOverrides: {{ toYaml . | nindent 4 }}
   {{- end }}
+  failurePolicy: {{ .Values.failurePolicy }}
   rules:
     - name: check-seccomp
       match:
@@ -50,7 +51,7 @@ spec:
           spec:
             =(securityContext):
               =(seccompProfile):
-                =(type): "RuntimeDefault | Localhost"      
+                =(type): "RuntimeDefault | Localhost"
             =(ephemeralContainers):
             - =(securityContext):
                 =(seccompProfile):
diff --git a/charts/kyverno-policies/templates/baseline/restrict-sysctls.yaml b/charts/kyverno-policies/templates/baseline/restrict-sysctls.yaml
index 8ade370fbb..30786082a8 100644
--- a/charts/kyverno-policies/templates/baseline/restrict-sysctls.yaml
+++ b/charts/kyverno-policies/templates/baseline/restrict-sysctls.yaml
@@ -26,6 +26,7 @@ spec:
   validationFailureActionOverrides: {{ toYaml . | nindent 4 }}
   {{- end }}
   background: {{ .Values.background }}
+  failurePolicy: {{ .Values.failurePolicy }}
   rules:
     - name: check-sysctls
       match:
diff --git a/charts/kyverno-policies/templates/other/require-non-root-groups.yaml b/charts/kyverno-policies/templates/other/require-non-root-groups.yaml
index 3aceadf45e..d81de6abea 100644
--- a/charts/kyverno-policies/templates/other/require-non-root-groups.yaml
+++ b/charts/kyverno-policies/templates/other/require-non-root-groups.yaml
@@ -24,6 +24,7 @@ spec:
   validationFailureActionOverrides: {{ toYaml . | nindent 4 }}
   {{- end }}
   background: {{ .Values.background }}
+  failurePolicy: {{ .Values.failurePolicy }}
   rules:
     - name: check-runasgroup
       match:
diff --git a/charts/kyverno-policies/templates/restricted/disallow-capabilities-strict.yaml b/charts/kyverno-policies/templates/restricted/disallow-capabilities-strict.yaml
index 0284190ea6..0fa82a79b3 100644
--- a/charts/kyverno-policies/templates/restricted/disallow-capabilities-strict.yaml
+++ b/charts/kyverno-policies/templates/restricted/disallow-capabilities-strict.yaml
@@ -24,6 +24,7 @@ spec:
   validationFailureActionOverrides: {{ toYaml . | nindent 4 }}
   {{- end }}
   background: {{ .Values.background }}
+  failurePolicy: {{ .Values.failurePolicy }}
   rules:
     - name: require-drop-all
       match:
diff --git a/charts/kyverno-policies/templates/restricted/disallow-privilege-escalation.yaml b/charts/kyverno-policies/templates/restricted/disallow-privilege-escalation.yaml
index b95bf4acb0..add547a13d 100644
--- a/charts/kyverno-policies/templates/restricted/disallow-privilege-escalation.yaml
+++ b/charts/kyverno-policies/templates/restricted/disallow-privilege-escalation.yaml
@@ -22,6 +22,7 @@ spec:
   validationFailureActionOverrides: {{ toYaml . | nindent 4 }}
   {{- end }}
   background: {{ .Values.background }}
+  failurePolicy: {{ .Values.failurePolicy }}
   rules:
     - name: privilege-escalation
       match:
diff --git a/charts/kyverno-policies/templates/restricted/require-run-as-non-root-user.yaml b/charts/kyverno-policies/templates/restricted/require-run-as-non-root-user.yaml
index b2b23e2e88..4b24c184c1 100644
--- a/charts/kyverno-policies/templates/restricted/require-run-as-non-root-user.yaml
+++ b/charts/kyverno-policies/templates/restricted/require-run-as-non-root-user.yaml
@@ -22,6 +22,7 @@ spec:
   validationFailureActionOverrides: {{ toYaml . | nindent 4 }}
   {{- end }}
   background: {{ .Values.background }}
+  failurePolicy: {{ .Values.failurePolicy }}
   rules:
     - name: run-as-non-root-user
       match:
diff --git a/charts/kyverno-policies/templates/restricted/require-run-as-nonroot.yaml b/charts/kyverno-policies/templates/restricted/require-run-as-nonroot.yaml
index d632652665..dcfcfb73eb 100644
--- a/charts/kyverno-policies/templates/restricted/require-run-as-nonroot.yaml
+++ b/charts/kyverno-policies/templates/restricted/require-run-as-nonroot.yaml
@@ -23,6 +23,7 @@ spec:
   validationFailureActionOverrides: {{ toYaml . | nindent 4 }}
   {{- end }}
   background: {{ .Values.background }}
+  failurePolicy: {{ .Values.failurePolicy }}
   rules:
     - name: run-as-non-root
       match:
diff --git a/charts/kyverno-policies/templates/restricted/restrict-seccomp-strict.yaml b/charts/kyverno-policies/templates/restricted/restrict-seccomp-strict.yaml
index fb67c664fd..8a2670761c 100644
--- a/charts/kyverno-policies/templates/restricted/restrict-seccomp-strict.yaml
+++ b/charts/kyverno-policies/templates/restricted/restrict-seccomp-strict.yaml
@@ -15,16 +15,17 @@ metadata:
     kyverno.io/kubernetes-version: "1.22-1.23"
     policies.kyverno.io/description: >-
       The seccomp profile in the Restricted group must not be explicitly set to Unconfined
-      but additionally must also not allow an unset value. This policy, 
-      requiring Kubernetes v1.19 or later, ensures that seccomp is 
+      but additionally must also not allow an unset value. This policy,
+      requiring Kubernetes v1.19 or later, ensures that seccomp is
       set to `RuntimeDefault` or `Localhost`. A known issue prevents a policy such as this
       using `anyPattern` from being persisted properly in Kubernetes 1.23.0-1.23.2.
 spec:
-  background: {{ .Values.background }}
   validationFailureAction: {{ .Values.validationFailureAction }}
   {{- with concat (index .Values "validationFailureActionOverrides" "all") (default list (index .Values "validationFailureActionOverrides" $name)) }}
   validationFailureActionOverrides: {{ toYaml . | nindent 4 }}
   {{- end }}
+  background: {{ .Values.background }}
+  failurePolicy: {{ .Values.failurePolicy }}
   rules:
     - name: check-seccomp-strict
       match:
diff --git a/charts/kyverno-policies/templates/restricted/restrict-volume-types.yaml b/charts/kyverno-policies/templates/restricted/restrict-volume-types.yaml
index c5b05764c9..857cc88975 100644
--- a/charts/kyverno-policies/templates/restricted/restrict-volume-types.yaml
+++ b/charts/kyverno-policies/templates/restricted/restrict-volume-types.yaml
@@ -25,6 +25,7 @@ spec:
   validationFailureActionOverrides: {{ toYaml . | nindent 4 }}
   {{- end }}
   background: {{ .Values.background }}
+  failurePolicy: {{ .Values.failurePolicy }}
   rules:
     - name: restricted-volumes
       match:
diff --git a/charts/kyverno-policies/values.yaml b/charts/kyverno-policies/values.yaml
index 4ae3d291e3..bccf2e5eaa 100644
--- a/charts/kyverno-policies/values.yaml
+++ b/charts/kyverno-policies/values.yaml
@@ -16,6 +16,10 @@ includeOtherPolicies: []
 # For more info https://kyverno.io/docs/writing-policies/validate.
 validationFailureAction: audit
 
+# -- API server behavior if the webhook fails to respond ('Ignore', 'Fail')
+# For more info: https://kyverno.io/docs/writing-policies/policy-settings/
+failurePolicy: Fail
+
 # -- Define validationFailureActionOverrides for specific policies.
 # The overrides for `all` will apply to all policies.
 validationFailureActionOverrides: