diff --git a/pkg/kyverno/apply/command.go b/pkg/kyverno/apply/command.go
index 8934862f20..573c8e75c9 100644
--- a/pkg/kyverno/apply/command.go
+++ b/pkg/kyverno/apply/command.go
@@ -1,10 +1,7 @@
 package apply
 
 import (
-	"bufio"
-	"encoding/json"
 	"fmt"
-	"io/ioutil"
 	"os"
 	"path/filepath"
 	"reflect"
@@ -14,21 +11,17 @@ import (
 	v1 "github.com/kyverno/kyverno/pkg/api/kyverno/v1"
 	pkgCommon "github.com/kyverno/kyverno/pkg/common"
 	client "github.com/kyverno/kyverno/pkg/dclient"
-	"github.com/kyverno/kyverno/pkg/engine"
-	"github.com/kyverno/kyverno/pkg/engine/context"
 	"github.com/kyverno/kyverno/pkg/engine/response"
 	"github.com/kyverno/kyverno/pkg/kyverno/common"
 	sanitizederror "github.com/kyverno/kyverno/pkg/kyverno/sanitizedError"
 	"github.com/kyverno/kyverno/pkg/openapi"
 	policy2 "github.com/kyverno/kyverno/pkg/policy"
-	"github.com/kyverno/kyverno/pkg/utils"
 	"github.com/spf13/cobra"
-	yamlv2 "gopkg.in/yaml.v2"
 	"k8s.io/apimachinery/pkg/apis/meta/v1/unstructured"
-	"k8s.io/apimachinery/pkg/util/yaml"
 	"k8s.io/cli-runtime/pkg/genericclioptions"
 	log "sigs.k8s.io/controller-runtime/pkg/log"
 	yaml1 "sigs.k8s.io/yaml"
+	"github.com/go-git/go-billy/v5/memfs"
 )
 
 type resultCounts struct {
@@ -148,12 +141,13 @@ func applyCommandHelper(resourcePaths []string, cluster bool, policyReport bool,
 	variablesString string, valuesFile string, namespace string, policyPaths []string) (validateEngineResponses []*response.EngineResponse, rc *resultCounts, resources []*unstructured.Unstructured, skippedPolicies []SkippedPolicy, err error) {
 
 	kubernetesConfig := genericclioptions.NewConfigFlags(true)
+	fs := memfs.New()
 
 	if valuesFile != "" && variablesString != "" {
 		return validateEngineResponses, rc, resources, skippedPolicies, sanitizederror.NewWithError("pass the values either using set flag or values_file flag", err)
 	}
 
-	variables, valuesMap, err := getVariable(variablesString, valuesFile)
+	variables, valuesMap, err :=  common.GetVariable(variablesString, valuesFile)
 	if err != nil {
 		if !sanitizederror.IsErrorSanitized(err) {
 			return validateEngineResponses, rc, resources, skippedPolicies, sanitizederror.NewWithError("failed to decode yaml", err)
@@ -186,7 +180,7 @@ func applyCommandHelper(resourcePaths []string, cluster bool, policyReport bool,
 		return validateEngineResponses, rc, resources, skippedPolicies, sanitizederror.NewWithError("a stdin pipe can be used for either policies or resources, not both", err)
 	}
 
-	policies, err := getPoliciesFromPaths(policyPaths)
+	policies, err := common.GetPoliciesFromPaths(fs,policyPaths, false)
 	if err != nil {
 		fmt.Printf("Error: failed to load policies\nCause: %s\n", err)
 		os.Exit(1)
@@ -204,14 +198,14 @@ func applyCommandHelper(resourcePaths []string, cluster bool, policyReport bool,
 		return validateEngineResponses, rc, resources, skippedPolicies, err
 	}
 
-	mutatedPolicies, err := mutatePolices(policies)
+	mutatedPolicies, err := common.MutatePolices(policies)
 	if err != nil {
 		if !sanitizederror.IsErrorSanitized(err) {
 			return validateEngineResponses, rc, resources, skippedPolicies, sanitizederror.NewWithError("failed to mutate policy", err)
 		}
 	}
 
-	resources, err = getResourceAccordingToResourcePath(resourcePaths, cluster, mutatedPolicies, dClient, namespace, policyReport)
+	resources, err = common.GetResourceAccordingToResourcePath(fs, resourcePaths, cluster, mutatedPolicies, dClient, namespace, policyReport, false)
 	if err != nil {
 		fmt.Printf("Error: failed to load resources\nCause: %s\n", err)
 		os.Exit(1)
@@ -245,7 +239,7 @@ func applyCommandHelper(resourcePaths []string, cluster bool, policyReport bool,
 		}
 
 		matches := common.PolicyHasVariables(*policy)
-		variable := removeDuplicatevariables(matches)
+		variable := common.RemoveDuplicateVariables(matches)
 
 		if len(matches) > 0 && variablesString == "" && valuesFile == "" {
 			rc.skip++
@@ -274,11 +268,18 @@ func applyCommandHelper(resourcePaths []string, cluster bool, policyReport bool,
 				return validateEngineResponses, rc, resources, skippedPolicies, sanitizederror.NewWithError(fmt.Sprintf("policy %s have variables. pass the values for the variables using set/values_file flag", policy.Name), err)
 			}
 
-			ers, validateErs, err := applyPolicyOnResource(policy, resource, mutateLogPath, mutateLogPathIsDir, thisPolicyResourceValues, rc, policyReport)
+			ers, validateErs, responseError, rcErs, err := common.ApplyPolicyOnResource(policy, resource, mutateLogPath, mutateLogPathIsDir, thisPolicyResourceValues, policyReport)
 			if err != nil {
 				return validateEngineResponses, rc, resources, skippedPolicies, sanitizederror.NewWithError(fmt.Errorf("failed to apply policy %v on resource %v", policy.Name, resource.GetName()).Error(), err)
 			}
-
+			if responseError == true {
+				rc.fail++
+			} else {
+				rc.pass++
+			}
+			if rcErs == true {
+				rc.error++
+			}
 			engineResponses = append(engineResponses, ers...)
 			validateEngineResponses = append(validateEngineResponses, validateErs)
 		}
@@ -287,44 +288,6 @@ func applyCommandHelper(resourcePaths []string, cluster bool, policyReport bool,
 	return validateEngineResponses, rc, resources, skippedPolicies, nil
 }
 
-// getVariable - get the variables from console/file
-func getVariable(variablesString, valuesFile string) (variables map[string]string, valuesMap map[string]map[string]Resource, err error) {
-	if variablesString != "" {
-		kvpairs := strings.Split(strings.Trim(variablesString, " "), ",")
-		for _, kvpair := range kvpairs {
-			kvs := strings.Split(strings.Trim(kvpair, " "), "=")
-			variables[strings.Trim(kvs[0], " ")] = strings.Trim(kvs[1], " ")
-		}
-	}
-
-	if valuesFile != "" {
-		yamlFile, err := ioutil.ReadFile(valuesFile)
-		if err != nil {
-			return variables, valuesMap, sanitizederror.NewWithError("unable to read yaml", err)
-		}
-
-		valuesBytes, err := yaml.ToJSON(yamlFile)
-		if err != nil {
-			return variables, valuesMap, sanitizederror.NewWithError("failed to convert json", err)
-		}
-
-		values := &Values{}
-		if err := json.Unmarshal(valuesBytes, values); err != nil {
-			return variables, valuesMap, sanitizederror.NewWithError("failed to decode yaml", err)
-		}
-
-		for _, p := range values.Policies {
-			pmap := make(map[string]Resource)
-			for _, r := range p.Resources {
-				pmap[r.Name] = r
-			}
-			valuesMap[p.Name] = pmap
-		}
-	}
-
-	return variables, valuesMap, nil
-}
-
 // checkMutateLogPath - checking path for printing mutated resource (-o flag)
 func checkMutateLogPath(mutateLogPath string) (mutateLogPathIsDir bool, err error) {
 	if mutateLogPath != "" {
@@ -347,68 +310,6 @@ func checkMutateLogPath(mutateLogPath string) (mutateLogPathIsDir bool, err erro
 	return mutateLogPathIsDir, err
 }
 
-// getPoliciesFromPaths - get policies according to the resource path
-func getPoliciesFromPaths(policyPaths []string) (policies []*v1.ClusterPolicy, err error) {
-	if len(policyPaths) > 0 && policyPaths[0] == "-" {
-		if common.IsInputFromPipe() {
-			policyStr := ""
-			scanner := bufio.NewScanner(os.Stdin)
-			for scanner.Scan() {
-				policyStr = policyStr + scanner.Text() + "\n"
-			}
-
-			yamlBytes := []byte(policyStr)
-			policies, err = utils.GetPolicy(yamlBytes)
-			if err != nil {
-				return nil, sanitizederror.NewWithError("failed to extract the resources", err)
-			}
-		}
-	} else {
-		var errors []error
-		policies, errors = common.GetPolicies(policyPaths)
-		if len(policies) == 0 {
-			if len(errors) > 0 {
-				return nil, sanitizederror.NewWithErrors("failed to read policies", errors)
-			}
-
-			return nil, sanitizederror.New(fmt.Sprintf("no policies found in paths %v", policyPaths))
-		}
-
-		if len(errors) > 0 && log.Log.V(1).Enabled() {
-			fmt.Printf("ignoring errors: \n")
-			for _, e := range errors {
-				fmt.Printf("    %v \n", e.Error())
-			}
-		}
-	}
-	return
-}
-
-// getResourceAccordingToResourcePath - get resources according to the resource path
-func getResourceAccordingToResourcePath(resourcePaths []string, cluster bool, policies []*v1.ClusterPolicy, dClient *client.Client, namespace string, policyReport bool) (resources []*unstructured.Unstructured, err error) {
-	if len(resourcePaths) > 0 && resourcePaths[0] == "-" {
-		if common.IsInputFromPipe() {
-			resourceStr := ""
-			scanner := bufio.NewScanner(os.Stdin)
-			for scanner.Scan() {
-				resourceStr = resourceStr + scanner.Text() + "\n"
-			}
-
-			yamlBytes := []byte(resourceStr)
-			resources, err = common.GetResource(yamlBytes)
-			if err != nil {
-				return nil, sanitizederror.NewWithError("failed to extract the resources", err)
-			}
-		}
-	} else if (len(resourcePaths) > 0 && resourcePaths[0] != "-") || len(resourcePaths) < 0 || cluster {
-		resources, err = common.GetResources(policies, resourcePaths, dClient, cluster, namespace, policyReport)
-		if err != nil {
-			return resources, err
-		}
-	}
-	return resources, err
-}
-
 // printReportOrViolation - printing policy report/violations
 func printReportOrViolation(policyReport bool, validateEngineResponses []*response.EngineResponse, rc *resultCounts, resourcePaths []string, resourcesLen int, skippedPolicies []SkippedPolicy) {
 	if policyReport {
@@ -437,164 +338,6 @@ func printReportOrViolation(policyReport bool, validateEngineResponses []*respon
 	}
 }
 
-// applyPolicyOnResource - function to apply policy on resource
-func applyPolicyOnResource(policy *v1.ClusterPolicy, resource *unstructured.Unstructured,
-	mutateLogPath string, mutateLogPathIsDir bool, variables map[string]string,
-	rc *resultCounts, policyReport bool) ([]*response.EngineResponse, *response.EngineResponse, error) {
-
-	responseError := false
-	engineResponses := make([]*response.EngineResponse, 0)
-
-	resPath := fmt.Sprintf("%s/%s/%s", resource.GetNamespace(), resource.GetKind(), resource.GetName())
-	log.Log.V(3).Info("applying policy on resource", "policy", policy.Name, "resource", resPath)
-
-	ctx := context.NewContext()
-	for key, value := range variables {
-		startString := ""
-		endString := ""
-		for _, k := range strings.Split(key, ".") {
-			startString += fmt.Sprintf(`{"%s":`, k)
-			endString += `}`
-		}
-
-		midString := fmt.Sprintf(`"%s"`, value)
-		finalString := startString + midString + endString
-		var jsonData = []byte(finalString)
-		ctx.AddJSON(jsonData)
-	}
-
-	mutateResponse := engine.Mutate(&engine.PolicyContext{Policy: *policy, NewResource: *resource, JSONContext: ctx})
-	engineResponses = append(engineResponses, mutateResponse)
-
-	if !mutateResponse.IsSuccessful() {
-		fmt.Printf("Failed to apply mutate policy %s -> resource %s", policy.Name, resPath)
-		for i, r := range mutateResponse.PolicyResponse.Rules {
-			fmt.Printf("\n%d. %s", i+1, r.Message)
-		}
-		responseError = true
-	} else {
-		if len(mutateResponse.PolicyResponse.Rules) > 0 {
-			yamlEncodedResource, err := yamlv2.Marshal(mutateResponse.PatchedResource.Object)
-			if err != nil {
-				rc.error++
-			}
-
-			if mutateLogPath == "" {
-				mutatedResource := string(yamlEncodedResource)
-				if len(strings.TrimSpace(mutatedResource)) > 0 {
-					fmt.Printf("\nmutate policy %s applied to %s:", policy.Name, resPath)
-					fmt.Printf("\n" + mutatedResource)
-					fmt.Printf("\n")
-				}
-			} else {
-				err := printMutatedOutput(mutateLogPath, mutateLogPathIsDir, string(yamlEncodedResource), resource.GetName()+"-mutated")
-				if err != nil {
-					return engineResponses, &response.EngineResponse{}, sanitizederror.NewWithError("failed to print mutated result", err)
-				}
-				fmt.Printf("\n\nMutation:\nMutation has been applied successfully. Check the files.")
-			}
-
-		}
-	}
-
-	if resource.GetKind() == "Pod" && len(resource.GetOwnerReferences()) > 0 {
-		if policy.HasAutoGenAnnotation() {
-			if _, ok := policy.GetAnnotations()[engine.PodControllersAnnotation]; ok {
-				delete(policy.Annotations, engine.PodControllersAnnotation)
-			}
-		}
-	}
-
-	policyCtx := &engine.PolicyContext{Policy: *policy, NewResource: mutateResponse.PatchedResource, JSONContext: ctx}
-	validateResponse := engine.Validate(policyCtx)
-	if !policyReport {
-		if !validateResponse.IsSuccessful() {
-			fmt.Printf("\npolicy %s -> resource %s failed: \n", policy.Name, resPath)
-			for i, r := range validateResponse.PolicyResponse.Rules {
-				if !r.Success {
-					fmt.Printf("%d. %s: %s \n", i+1, r.Name, r.Message)
-				}
-			}
-
-			responseError = true
-		}
-	}
-
-	var policyHasGenerate bool
-	for _, rule := range policy.Spec.Rules {
-		if rule.HasGenerate() {
-			policyHasGenerate = true
-		}
-	}
-
-	if policyHasGenerate {
-		generateResponse := engine.Generate(engine.PolicyContext{Policy: *policy, NewResource: *resource})
-		engineResponses = append(engineResponses, generateResponse)
-		if len(generateResponse.PolicyResponse.Rules) > 0 {
-			log.Log.V(3).Info("generate resource is valid", "policy", policy.Name, "resource", resPath)
-		} else {
-			fmt.Printf("generate policy %s resource %s is invalid \n", policy.Name, resPath)
-			for i, r := range generateResponse.PolicyResponse.Rules {
-				fmt.Printf("%d. %s \b", i+1, r.Message)
-			}
-
-			responseError = true
-		}
-	}
-
-	if responseError == true {
-		rc.fail++
-	} else {
-		rc.pass++
-	}
-
-	return engineResponses, validateResponse, nil
-}
-
-// mutatePolicies - function to apply mutation on policies
-func mutatePolices(policies []*v1.ClusterPolicy) ([]*v1.ClusterPolicy, error) {
-	newPolicies := make([]*v1.ClusterPolicy, 0)
-	logger := log.Log.WithName("apply")
-
-	for _, policy := range policies {
-		p, err := common.MutatePolicy(policy, logger)
-		if err != nil {
-			if !sanitizederror.IsErrorSanitized(err) {
-				return nil, sanitizederror.NewWithError("failed to mutate policy.", err)
-			}
-			return nil, err
-		}
-		newPolicies = append(newPolicies, p)
-	}
-	return newPolicies, nil
-}
-
-// printMutatedOutput - function to print output in provided file or directory
-func printMutatedOutput(mutateLogPath string, mutateLogPathIsDir bool, yaml string, fileName string) error {
-	var f *os.File
-	var err error
-	yaml = yaml + ("\n---\n\n")
-
-	if !mutateLogPathIsDir {
-		f, err = os.OpenFile(mutateLogPath, os.O_APPEND|os.O_WRONLY, 0644)
-	} else {
-		f, err = os.OpenFile(mutateLogPath+"/"+fileName+".yaml", os.O_APPEND|os.O_CREATE|os.O_WRONLY, 0644)
-	}
-
-	if err != nil {
-		return err
-	}
-	if _, err := f.Write([]byte(yaml)); err != nil {
-		f.Close()
-		return err
-	}
-	if err := f.Close(); err != nil {
-		return err
-	}
-
-	return nil
-}
-
 // createFileOrFolder - creating file or folder according to path provided
 func createFileOrFolder(mutateLogPath string, mutateLogPathIsDir bool) error {
 	mutateLogPath = filepath.Clean(mutateLogPath)
@@ -643,16 +386,3 @@ func createFileOrFolder(mutateLogPath string, mutateLogPathIsDir bool) error {
 	return nil
 }
 
-// removeDuplicatevariables - remove duplicate variables
-func removeDuplicatevariables(matches [][]string) string {
-	var variableStr string
-	for _, m := range matches {
-		for _, v := range m {
-			foundVariable := strings.Contains(variableStr, v)
-			if !foundVariable {
-				variableStr = variableStr + " " + v
-			}
-		}
-	}
-	return variableStr
-}
diff --git a/pkg/kyverno/common/common.go b/pkg/kyverno/common/common.go
index 751c722f39..99a8de9ce0 100644
--- a/pkg/kyverno/common/common.go
+++ b/pkg/kyverno/common/common.go
@@ -9,6 +9,7 @@ import (
 	"io/ioutil"
 	"os"
 	"path/filepath"
+	"strings"
 	"sigs.k8s.io/controller-runtime/pkg/log"
 
 	jsonpatch "github.com/evanphx/json-patch"
@@ -20,9 +21,32 @@ import (
 	"k8s.io/apimachinery/pkg/apis/meta/v1/unstructured"
 	"k8s.io/apimachinery/pkg/util/yaml"
 	yaml_v2 "sigs.k8s.io/yaml"
+	"github.com/kyverno/kyverno/pkg/engine"
+	"github.com/kyverno/kyverno/pkg/engine/context"
+	"github.com/kyverno/kyverno/pkg/engine/response"
+	yamlv2 "gopkg.in/yaml.v2"
+	"github.com/go-git/go-billy/v5"
+	ut "github.com/kyverno/kyverno/pkg/utils"
+	client "github.com/kyverno/kyverno/pkg/dclient"
 )
 
 // GetPolicies - Extracting the policies from multiple YAML
+
+type Resource struct {
+	Name   string            `json:"name"`
+	Values map[string]string `json:"values"`
+}
+
+type Policy struct {
+	Name      string     `json:"name"`
+	Resources []Resource `json:"resources"`
+}
+
+type Values struct {
+	Policies []Policy `json:"policies"`
+}
+
+
 func GetPolicies(paths []string) (policies []*v1.ClusterPolicy, errors []error) {
 	for _, path := range paths {
 		log.Log.V(5).Info("reading policies", "path", path)
@@ -222,3 +246,299 @@ func IsInputFromPipe() bool {
 	fileInfo, _ := os.Stdin.Stat()
 	return fileInfo.Mode()&os.ModeCharDevice == 0
 }
+
+
+// RemoveDuplicateVariables - remove duplicate variables
+func RemoveDuplicateVariables(matches [][]string) string {
+	var variableStr string
+	for _, m := range matches {
+		for _, v := range m {
+			foundVariable := strings.Contains(variableStr, v)
+			if !foundVariable {
+				variableStr = variableStr + " " + v
+			}
+		}
+	}
+	return variableStr
+}
+
+// GetVariable - get the variables from console/file
+func GetVariable(variablesString, valuesFile string) (variables map[string]string, valuesMap map[string]map[string]Resource, err error) {
+	if variablesString != "" {
+		kvpairs := strings.Split(strings.Trim(variablesString, " "), ",")
+		for _, kvpair := range kvpairs {
+			kvs := strings.Split(strings.Trim(kvpair, " "), "=")
+			variables[strings.Trim(kvs[0], " ")] = strings.Trim(kvs[1], " ")
+		}
+	}
+
+	if valuesFile != "" {
+		yamlFile, err := ioutil.ReadFile(valuesFile)
+		if err != nil {
+			return variables, valuesMap, sanitizederror.NewWithError("unable to read yaml", err)
+		}
+
+		valuesBytes, err := yaml.ToJSON(yamlFile)
+		if err != nil {
+			return variables, valuesMap, sanitizederror.NewWithError("failed to convert json", err)
+		}
+
+		values := &Values{}
+		if err := json.Unmarshal(valuesBytes, values); err != nil {
+			return variables, valuesMap, sanitizederror.NewWithError("failed to decode yaml", err)
+		}
+
+		for _, p := range values.Policies {
+			pmap := make(map[string]Resource)
+			for _, r := range p.Resources {
+				pmap[r.Name] = r
+			}
+			valuesMap[p.Name] = pmap
+		}
+	}
+
+	return variables, valuesMap, nil
+}
+
+// MutatePolices - function to apply mutation on policies
+func MutatePolices(policies []*v1.ClusterPolicy) ([]*v1.ClusterPolicy, error) {
+	newPolicies := make([]*v1.ClusterPolicy, 0)
+	logger := log.Log.WithName("apply")
+
+	for _, policy := range policies {
+		p, err := MutatePolicy(policy, logger)
+		if err != nil {
+			if !sanitizederror.IsErrorSanitized(err) {
+				return nil, sanitizederror.NewWithError("failed to mutate policy.", err)
+			}
+			return nil, err
+		}
+		newPolicies = append(newPolicies, p)
+	}
+	return newPolicies, nil
+}
+
+// ApplyPolicyOnResource - function to apply policy on resource
+func ApplyPolicyOnResource(policy *v1.ClusterPolicy, resource *unstructured.Unstructured,
+	mutateLogPath string, mutateLogPathIsDir bool, variables map[string]string, policyReport bool) ([]*response.EngineResponse, *response.EngineResponse,  bool,  bool, error) {
+
+	responseError := false
+	rcError := false
+	engineResponses := make([]*response.EngineResponse, 0)
+
+	resPath := fmt.Sprintf("%s/%s/%s", resource.GetNamespace(), resource.GetKind(), resource.GetName())
+	log.Log.V(3).Info("applying policy on resource", "policy", policy.Name, "resource", resPath)
+
+	ctx := context.NewContext()
+	for key, value := range variables {
+		startString := ""
+		endString := ""
+		for _, k := range strings.Split(key, ".") {
+			startString += fmt.Sprintf(`{"%s":`, k)
+			endString += `}`
+		}
+
+		midString := fmt.Sprintf(`"%s"`, value)
+		finalString := startString + midString + endString
+		var jsonData = []byte(finalString)
+		ctx.AddJSON(jsonData)
+	}
+
+	mutateResponse := engine.Mutate(&engine.PolicyContext{Policy: *policy, NewResource: *resource, JSONContext: ctx})
+	engineResponses = append(engineResponses, mutateResponse)
+
+	if !mutateResponse.IsSuccessful() {
+		fmt.Printf("Failed to apply mutate policy %s -> resource %s", policy.Name, resPath)
+		for i, r := range mutateResponse.PolicyResponse.Rules {
+			fmt.Printf("\n%d. %s", i+1, r.Message)
+		}
+		responseError = true
+	} else {
+		if len(mutateResponse.PolicyResponse.Rules) > 0 {
+			yamlEncodedResource, err := yamlv2.Marshal(mutateResponse.PatchedResource.Object)
+			if err != nil {
+				rcError = true
+			}
+
+			if mutateLogPath == "" {
+				mutatedResource := string(yamlEncodedResource)
+				if len(strings.TrimSpace(mutatedResource)) > 0 {
+					fmt.Printf("\nmutate policy %s applied to %s:", policy.Name, resPath)
+					fmt.Printf("\n" + mutatedResource)
+					fmt.Printf("\n")
+				}
+			} else {
+				err := PrintMutatedOutput(mutateLogPath, mutateLogPathIsDir, string(yamlEncodedResource), resource.GetName()+"-mutated")
+				if err != nil {
+					return engineResponses, &response.EngineResponse{}, responseError, rcError, sanitizederror.NewWithError("failed to print mutated result", err)
+				}
+				fmt.Printf("\n\nMutation:\nMutation has been applied successfully. Check the files.")
+			}
+
+		}
+	}
+
+	if resource.GetKind() == "Pod" && len(resource.GetOwnerReferences()) > 0 {
+		if policy.HasAutoGenAnnotation() {
+			if _, ok := policy.GetAnnotations()[engine.PodControllersAnnotation]; ok {
+				delete(policy.Annotations, engine.PodControllersAnnotation)
+			}
+		}
+	}
+
+	policyCtx := &engine.PolicyContext{Policy: *policy, NewResource: mutateResponse.PatchedResource, JSONContext: ctx}
+	validateResponse := engine.Validate(policyCtx)
+	if !policyReport {
+		if !validateResponse.IsSuccessful() {
+			fmt.Printf("\npolicy %s -> resource %s failed: \n", policy.Name, resPath)
+			for i, r := range validateResponse.PolicyResponse.Rules {
+				if !r.Success {
+					fmt.Printf("%d. %s: %s \n", i+1, r.Name, r.Message)
+				}
+			}
+
+			responseError = true
+		}
+	}
+
+	var policyHasGenerate bool
+	for _, rule := range policy.Spec.Rules {
+		if rule.HasGenerate() {
+			policyHasGenerate = true
+		}
+	}
+
+	if policyHasGenerate {
+		generateResponse := engine.Generate(engine.PolicyContext{Policy: *policy, NewResource: *resource})
+		engineResponses = append(engineResponses, generateResponse)
+		if len(generateResponse.PolicyResponse.Rules) > 0 {
+			log.Log.V(3).Info("generate resource is valid", "policy", policy.Name, "resource", resPath)
+		} else {
+			fmt.Printf("generate policy %s resource %s is invalid \n", policy.Name, resPath)
+			for i, r := range generateResponse.PolicyResponse.Rules {
+				fmt.Printf("%d. %s \b", i+1, r.Message)
+			}
+
+			responseError = true
+		}
+	}
+	
+	return engineResponses, validateResponse, responseError, rcError, nil
+}
+
+// PrintMutatedOutput - function to print output in provided file or directory
+func PrintMutatedOutput(mutateLogPath string, mutateLogPathIsDir bool, yaml string, fileName string) error {
+	var f *os.File
+	var err error
+	yaml = yaml + ("\n---\n\n")
+
+	if !mutateLogPathIsDir {
+		f, err = os.OpenFile(mutateLogPath, os.O_APPEND|os.O_WRONLY, 0644)
+	} else {
+		f, err = os.OpenFile(mutateLogPath+"/"+fileName+".yaml", os.O_APPEND|os.O_CREATE|os.O_WRONLY, 0644)
+	}
+
+	if err != nil {
+		return err
+	}
+	if _, err := f.Write([]byte(yaml)); err != nil {
+		f.Close()
+		return err
+	}
+	if err := f.Close(); err != nil {
+		return err
+	}
+
+	return nil
+}
+
+// GetPoliciesFromPaths - get policies according to the resource path
+func GetPoliciesFromPaths(fs billy.Filesystem, dirPath []string, isGit bool) (policies []*v1.ClusterPolicy, err error) {
+	var errors []error
+	if isGit {
+		for _, pp := range dirPath {
+			filep, err := fs.Open(pp)
+			bytes, err := ioutil.ReadAll(filep)
+			if err != nil {
+				fmt.Printf("Error: failed to read file %s: %v", filep.Name(), err.Error())
+			}
+			policyBytes, err := yaml.ToJSON(bytes)
+			if err != nil {
+				fmt.Printf("failed to convert to JSON: %v", err)
+				continue
+			}
+			policiesFromFile, errFromFile := ut.GetPolicy(policyBytes)
+			if errFromFile != nil {
+				err := fmt.Errorf("failed to process : %v", errFromFile.Error())
+				errors = append(errors, err)
+				continue
+			}
+			policies = append(policies, policiesFromFile...)
+		}
+	} else {
+		if len(dirPath) > 0 && dirPath[0] == "-" {
+			if IsInputFromPipe() {
+				policyStr := ""
+				scanner := bufio.NewScanner(os.Stdin)
+				for scanner.Scan() {
+					policyStr = policyStr + scanner.Text() + "\n"
+				}
+				yamlBytes := []byte(policyStr)
+				policies, err = ut.GetPolicy(yamlBytes)
+				if err != nil {
+					return nil, sanitizederror.NewWithError("failed to extract the resources", err)
+				}
+			}
+		} else {
+			var errors []error
+			policies, errors = GetPolicies(dirPath)
+			if len(policies) == 0 {
+				if len(errors) > 0 {
+					return nil, sanitizederror.NewWithErrors("failed to read file", errors)
+				}
+				return nil, sanitizederror.New(fmt.Sprintf("no file found in paths %v", dirPath))
+			}
+			if len(errors) > 0 && log.Log.V(1).Enabled() {
+				fmt.Printf("ignoring errors: \n")
+				for _, e := range errors {
+					fmt.Printf("    %v \n", e.Error())
+				}
+			}
+		}
+	}	
+	return
+}
+
+// GetResourceAccordingToResourcePath - get resources according to the resource path
+func GetResourceAccordingToResourcePath(fs billy.Filesystem, resourcePaths []string, 
+	cluster bool, policies []*v1.ClusterPolicy, dClient *client.Client, namespace string, policyReport bool, isGit bool) (resources []*unstructured.Unstructured, err error) {
+	if isGit {
+		resources, err = GetResourcesWithTest(fs, policies, resourcePaths, isGit)
+		if err != nil {
+			return nil, sanitizederror.NewWithError("failed to extract the resources", err)
+		}
+	} else {
+		if len(resourcePaths) > 0 && resourcePaths[0] == "-" {
+			if IsInputFromPipe() {
+				resourceStr := ""
+				scanner := bufio.NewScanner(os.Stdin)
+				for scanner.Scan() {
+					resourceStr = resourceStr + scanner.Text() + "\n"
+				}
+
+				yamlBytes := []byte(resourceStr)
+				resources, err = GetResource(yamlBytes)
+				if err != nil {
+					return nil, sanitizederror.NewWithError("failed to extract the resources", err)
+				}
+			}
+		} else if (len(resourcePaths) > 0 && resourcePaths[0] != "-") || len(resourcePaths) < 0 || cluster {
+			resources, err = GetResources(policies, resourcePaths, dClient, cluster, namespace, policyReport)
+			if err != nil {
+				return resources, err
+			}
+		}
+
+	}
+	return resources, err
+}
\ No newline at end of file
diff --git a/pkg/kyverno/test/command.go b/pkg/kyverno/test/command.go
index bd780f6014..ae13c4d004 100644
--- a/pkg/kyverno/test/command.go
+++ b/pkg/kyverno/test/command.go
@@ -8,7 +8,6 @@ import (
 	"net/url"
 	"sort"
 	"reflect"
-	"bufio"
 	"strings"
 	"github.com/spf13/cobra"
 	log "sigs.k8s.io/controller-runtime/pkg/log"
@@ -16,23 +15,19 @@ import (
 	v1 "github.com/kyverno/kyverno/pkg/api/kyverno/v1"
 	"github.com/kyverno/kyverno/pkg/kyverno/common"
 	"k8s.io/apimachinery/pkg/util/yaml"
-	"k8s.io/apimachinery/pkg/apis/meta/v1/unstructured"
 	policy2 "github.com/kyverno/kyverno/pkg/policy"
-	"github.com/kyverno/kyverno/pkg/engine"
-	"github.com/kyverno/kyverno/pkg/engine/context"
 	"github.com/kyverno/kyverno/pkg/openapi"
 	"github.com/kyverno/kyverno/pkg/engine/response"
-	yamlv2 "gopkg.in/yaml.v2"
 	corev1 "k8s.io/api/core/v1"
 	"github.com/kyverno/kyverno/pkg/policyreport"
 	report "github.com/kyverno/kyverno/pkg/api/policyreport/v1alpha1"
 	"github.com/kyverno/kyverno/pkg/engine/utils"
-	ut "github.com/kyverno/kyverno/pkg/utils"
 	"github.com/kataras/tablewriter"
 	"github.com/lensesio/tableprinter"
 	"github.com/go-git/go-billy/v5/memfs"
 	"github.com/go-git/go-billy/v5"
 	"github.com/fatih/color"
+	client "github.com/kyverno/kyverno/pkg/dclient"
 )
 
 // Command returns version command
@@ -51,9 +46,9 @@ func Command() *cobra.Command {
 					}
 				}
 			}()
-			err = testCommandHelper(dirPath, valuesFile)
+			err = testCommandExecute(dirPath, valuesFile)
 			if err != nil {
-				log.Log.V(3).Info("Test command fail to apply")
+				log.Log.V(3).Info("a directory is required")
 				return err
 			}
 			return nil
@@ -66,7 +61,7 @@ type Test struct {
 	Policies      []string     `json:"policies"`
 	Resources     []string     `json:"resources"`
 	Variables     string     `json:"variables"`
-	TResults      []TestResults     `json:"results"`
+	Results      []TestResults     `json:"results"`
 }
 
 type SkippedPolicy struct {
@@ -107,14 +102,14 @@ type Values struct {
 	Policies []Policy `json:"policies"`
 }
 
-func testCommandHelper(dirPath []string, valuesFile string) (err error) {
+func testCommandExecute(dirPath []string, valuesFile string) (err error) {
 	var errors []error
 	fs := memfs.New()
 	
 	if len(dirPath) == 0 {
-			return  sanitizederror.NewWithError(fmt.Sprintf("require test yamls"), err)
+			return  sanitizederror.NewWithError(fmt.Sprintf("a directory is required"), err)
 		}
-	if strings.Contains(string(dirPath[0]), "https://github.com/") {
+	if strings.Contains(string(dirPath[0]), "https://") {
 		gitUrl, err := url.Parse(dirPath[0])
 		if err != nil {
 			return  sanitizederror.NewWithError("failed to parse URL", err)
@@ -187,147 +182,6 @@ func testCommandHelper(dirPath []string, valuesFile string) (err error) {
 	}
 	return nil
 }
-func getPoliciesFromPaths(fs billy.Filesystem, dirPath []string, isGit bool) (policies []*v1.ClusterPolicy, err error) {
-	var errors []error
-	if isGit {
-		for _, pp := range dirPath {
-			filep, err := fs.Open(pp)
-			bytes, err := ioutil.ReadAll(filep)
-			if err != nil {
-				fmt.Printf("Error: failed to read file %s: %v", filep.Name(), err.Error())
-			}
-			policyBytes, err := yaml.ToJSON(bytes)
-			if err != nil {
-				fmt.Printf("failed to convert to JSON: %v", err)
-				continue
-			}
-			policiesFromFile, errFromFile := ut.GetPolicy(policyBytes)
-			if errFromFile != nil {
-				err := fmt.Errorf("failed to process : %v", errFromFile.Error())
-				errors = append(errors, err)
-				continue
-			}
-			policies = append(policies, policiesFromFile...)
-		}
-	} else {
-		if len(dirPath) > 0 && dirPath[0] == "-" {
-			if common.IsInputFromPipe() {
-				policyStr := ""
-				scanner := bufio.NewScanner(os.Stdin)
-				for scanner.Scan() {
-					policyStr = policyStr + scanner.Text() + "\n"
-				}
-				yamlBytes := []byte(policyStr)
-				policies, err = ut.GetPolicy(yamlBytes)
-				if err != nil {
-					return nil, sanitizederror.NewWithError("failed to extract the resources", err)
-				}
-			}
-		} else {
-			var errors []error
-			policies, errors = common.GetPolicies(dirPath)
-			if len(policies) == 0 {
-				if len(errors) > 0 {
-					return nil, sanitizederror.NewWithErrors("failed to read file", errors)
-				}
-				return nil, sanitizederror.New(fmt.Sprintf("no file found in paths %v", dirPath))
-			}
-			if len(errors) > 0 && log.Log.V(1).Enabled() {
-				fmt.Printf("ignoring errors: \n")
-				for _, e := range errors {
-					fmt.Printf("    %v \n", e.Error())
-				}
-			}
-		}
-	}	
-	return
-}
-
-func mutatePolices(policies []*v1.ClusterPolicy) ([]*v1.ClusterPolicy, error) {
-	newPolicies := make([]*v1.ClusterPolicy, 0)
-	logger := log.Log.WithName("apply")
-
-	for _, policy := range policies {
-		p, err := common.MutatePolicy(policy, logger)
-		if err != nil {
-			if !sanitizederror.IsErrorSanitized(err) {
-				return nil, sanitizederror.NewWithError("failed to mutate policy.", err)
-			}
-			return nil, err
-		}
-		newPolicies = append(newPolicies, p)
-	}
-	return newPolicies, nil
-}
-func getResourceAccordingToResourcePath(fs billy.Filesystem,resourcePaths []string,  policies []*v1.ClusterPolicy, isGit bool) (resources []*unstructured.Unstructured, err error) {
-	resources, err = common.GetResourcesWithTest(fs, policies, resourcePaths, isGit)
-	if err != nil {
-		return resources, err
-	}
-	return resources, err
-}
-	
-func applyPolicyOnResource(policy *v1.ClusterPolicy, resource *unstructured.Unstructured) ([]*response.EngineResponse, *response.EngineResponse, error) {
-	engineResponses := make([]*response.EngineResponse, 0)
-
-	resPath := fmt.Sprintf("%s/%s/%s", resource.GetNamespace(), resource.GetKind(), resource.GetName())
-	log.Log.V(3).Info("applying policy on resource", "policy", policy.Name, "resource", resPath)
-
-	ctx := context.NewContext()
-
-	mutateResponse := engine.Mutate(&engine.PolicyContext{Policy: *policy, NewResource: *resource, JSONContext: ctx})
-	engineResponses = append(engineResponses, mutateResponse)
-
-	if !mutateResponse.IsSuccessful() {
-		fmt.Printf("Failed to apply mutate policy %s -> resource %s", policy.Name, resPath)
-		for i, r := range mutateResponse.PolicyResponse.Rules {
-			fmt.Printf("\n%d. %s", i+1, r.Message)
-		}
-	} else {
-		if len(mutateResponse.PolicyResponse.Rules) > 0 {
-			yamlEncodedResource, err := yamlv2.Marshal(mutateResponse.PatchedResource.Object)
-			if err != nil {
-				log.Log.V(3).Info(fmt.Sprintf("yaml encoded resource not valid"), "error", err)
-			}
-			mutatedResource := string(yamlEncodedResource)
-				if len(strings.TrimSpace(mutatedResource)) > 0 {
-					fmt.Printf("\nmutate policy %s applied to %s:", policy.Name, resPath)
-					fmt.Printf("\n" + mutatedResource)
-					fmt.Printf("\n")
-				}
-		}
-	}
-
-	if resource.GetKind() == "Pod" && len(resource.GetOwnerReferences()) > 0 {
-		if policy.HasAutoGenAnnotation() {
-			if _, ok := policy.GetAnnotations()[engine.PodControllersAnnotation]; ok {
-				delete(policy.Annotations, engine.PodControllersAnnotation)
-			}
-		}
-	}
-	policyCtx := &engine.PolicyContext{Policy: *policy, NewResource: mutateResponse.PatchedResource, JSONContext: ctx}
-	validateResponse := engine.Validate(policyCtx)
-	var policyHasGenerate bool
-	for _, rule := range policy.Spec.Rules {
-		if rule.HasGenerate() {
-			policyHasGenerate = true
-		}
-	}
-	if policyHasGenerate {
-		generateResponse := engine.Generate(engine.PolicyContext{Policy: *policy, NewResource: *resource})
-		engineResponses = append(engineResponses, generateResponse)
-		if len(generateResponse.PolicyResponse.Rules) > 0 {
-			log.Log.V(3).Info("generate resource is valid", "policy", policy.Name, "resource", resPath)
-		} else {
-			fmt.Printf("generate policy %s resource %s is invalid \n", policy.Name, resPath)
-			for i, r := range generateResponse.PolicyResponse.Rules {
-				fmt.Printf("%d. %s \b", i+1, r.Message)
-			}
-
-		}
-	}
-	return engineResponses, validateResponse, nil
-}
 
 func buildPolicyResults(resps []*response.EngineResponse) map[string][]interface{} {
 	results := make(map[string][]interface{})
@@ -354,73 +208,39 @@ func buildPolicyResults(resps []*response.EngineResponse) map[string][]interface
 	}
 	return results
 }
-func getVariable( valuesFile string) ( valuesMap map[string]map[string]Resource, err error) {
-	if valuesFile != "" {
-		yamlFile, err := ioutil.ReadFile(valuesFile)
-		if err != nil {
-			return valuesMap, sanitizederror.NewWithError("unable to read yaml", err)
-		}
-		valuesBytes, err := yaml.ToJSON(yamlFile)
-		if err != nil {
-			return valuesMap, sanitizederror.NewWithError("failed to convert json", err)
-		}
-		values := &Values{}
-		if err := json.Unmarshal(valuesBytes, values); err != nil {
-			return valuesMap, sanitizederror.NewWithError("failed to decode yaml", err)
-		}
-		for _, p := range values.Policies {
-			pmap := make(map[string]Resource)
-			for _, r := range p.Resources {
-				pmap[r.Name] = r
-			}
-			valuesMap[p.Name] = pmap
-		}
-	}
-	return  valuesMap, nil
-}
 
-func removeDuplicatevariables(matches [][]string) string {
-	var variableStr string
-	for _, m := range matches {
-		for _, v := range m {
-			foundVariable := strings.Contains(variableStr, v)
-			if !foundVariable {
-				variableStr = variableStr + " " + v
-			}
-		}
-	}
-	return variableStr
-}
 
 func applyPoliciesFromPath(fs billy.Filesystem, policyBytes []byte, valuesFile string, isGit bool) (err error) {
 	openAPIController, err := openapi.NewOpenAPIController()
 	engineResponses := make([]*response.EngineResponse, 0)
 	validateEngineResponses := make([]*response.EngineResponse, 0)
 	skippedPolicies := make([]SkippedPolicy, 0)
+	var dClient *client.Client
 	values := &Test{}
+	var variablesString string
 
 	if err := json.Unmarshal(policyBytes, values); err != nil {
 		return sanitizederror.NewWithError("failed to decode yaml", err)
 	}	
-	valuesMap, err := getVariable(values.Variables)
+	_, valuesMap, err := common.GetVariable(variablesString, values.Variables)
 	if err != nil {
 		if !sanitizederror.IsErrorSanitized(err) {
 			return  sanitizederror.NewWithError("failed to decode yaml", err)
 		}
 		return  err
 	}
-	policies, err := getPoliciesFromPaths(fs, values.Policies, isGit)
+	policies, err := common.GetPoliciesFromPaths(fs, values.Policies, isGit)
 	if err != nil {
 		fmt.Printf("Error: failed to load policies\nCause: %s\n", err)
 		os.Exit(1)
 	}
-	mutatedPolicies, err := mutatePolices(policies)
+	mutatedPolicies, err := common.MutatePolices(policies)
 		if err != nil {
 		if !sanitizederror.IsErrorSanitized(err) {
 			return  sanitizederror.NewWithError("failed to mutate policy", err)
 			}
 		}
-		resources, err := getResourceAccordingToResourcePath(fs,values.Resources, mutatedPolicies, isGit)
+		resources, err := common.GetResourceAccordingToResourcePath(fs, values.Resources, false,  mutatedPolicies, dClient, "", false, isGit)
 		if err != nil {
 			fmt.Printf("Error: failed to load resources\nCause: %s\n", err)
 			os.Exit(1)
@@ -447,7 +267,7 @@ func applyPoliciesFromPath(fs billy.Filesystem, policyBytes []byte, valuesFile s
 				continue
 			}
 			matches := common.PolicyHasVariables(*policy)
-			variable := removeDuplicatevariables(matches)
+			variable := common.RemoveDuplicateVariables(matches)
 			if len(matches) > 0 && valuesFile == "" {
 				skipPolicy := SkippedPolicy{
 						Name:     policy.GetName(),
@@ -467,8 +287,8 @@ func applyPoliciesFromPath(fs billy.Filesystem, policyBytes []byte, valuesFile s
 				if len(common.PolicyHasVariables(*policy)) > 0 && len(thisPolicyResourceValues) == 0 {
 					return  sanitizederror.NewWithError(fmt.Sprintf("policy %s have variables. pass the values for the variables using set/values_file flag", policy.Name), err)
 				}
-
-				ers, validateErs, err := applyPolicyOnResource(policy, resource)
+				
+				ers, validateErs, _, _, err := common.ApplyPolicyOnResource(policy, resource, "", false, thisPolicyResourceValues, true)
 				if err != nil {
 					return  sanitizederror.NewWithError(fmt.Errorf("failed to apply policy %v on resource %v", policy.Name, resource.GetName()).Error(), err)
 				}
@@ -477,7 +297,7 @@ func applyPoliciesFromPath(fs billy.Filesystem, policyBytes []byte, valuesFile s
 			}
 		}
 		resultsMap := buildPolicyResults(validateEngineResponses)
-		resuleErr := printTestResult(resultsMap, values.TResults)
+		resuleErr := printTestResult(resultsMap, values.Results)
 		if resuleErr != nil {
 			return  sanitizederror.NewWithError("Unable to genrate result. error:", resuleErr)
 			os.Exit(1)
@@ -485,6 +305,7 @@ func applyPoliciesFromPath(fs billy.Filesystem, policyBytes []byte, valuesFile s
 	return
 }
 
+
 func printTestResult(resps map[string][]interface {}, testResults []TestResults) (error){
 	printer := tableprinter.New(os.Stdout)
 	table := []*Table{}
@@ -502,6 +323,7 @@ func printTestResult(resps map[string][]interface {}, testResults []TestResults)
 		}
 		var c []ReportResult
 		json.Unmarshal(valuesBytes, &c)
+		res.Result = boldRed.Sprintf("Fail")
 		if len(c) != 0 {
 			var resource1 TestResults
 			for _, c1 := range c {
@@ -510,11 +332,9 @@ func printTestResult(resps map[string][]interface {}, testResults []TestResults)
 				resource1.Rule = c1.Rule
 				resource1.Status = c1.Status
 				resource1.Resource = c1.Resources[0].Name
-					if v != resource1 {
-						res.Result = boldRed.Sprintf("Fail")
-					} else {
+				
+					if v == resource1 {
 						res.Result =  "Pass"
-						continue
 					}
 				}
 			}
diff --git a/pkg/kyverno/test/render.go b/pkg/kyverno/test/git.go
similarity index 100%
rename from pkg/kyverno/test/render.go
rename to pkg/kyverno/test/git.go