diff --git a/pkg/policymutation/policymutation.go b/pkg/policymutation/policymutation.go
index 3166047eec..c64babc91a 100644
--- a/pkg/policymutation/policymutation.go
+++ b/pkg/policymutation/policymutation.go
@@ -254,6 +254,10 @@ func defaultFailurePolicy(policy *kyverno.ClusterPolicy, log logr.Logger) ([]byt
 func GeneratePodControllerRule(policy kyverno.ClusterPolicy, log logr.Logger) (patches [][]byte, errs []error) {
 	applyAutoGen, desiredControllers := CanAutoGen(&policy, log)
 
+	if !applyAutoGen {
+		desiredControllers = "none"
+	}
+
 	ann := policy.GetAnnotations()
 	actualControllers, ok := ann[engine.PodControllersAnnotation]
 
@@ -288,12 +292,14 @@ func GeneratePodControllerRule(policy kyverno.ClusterPolicy, log logr.Logger) (p
 
 // CanAutoGen checks whether the rule(s) (in policy) can be applied to Pod controllers
 // returns controllers as:
-// - "none" if:
+// - "" if:
 //          - name or selector is defined
 //          - mixed kinds (Pod + pod controller) is defined
+//          - Pod and PodControllers are not defined
 //          - mutate.Patches/mutate.PatchesJSON6902/validate.deny/generate rule is defined
 // - otherwise it returns all pod controllers
 func CanAutoGen(policy *kyverno.ClusterPolicy, log logr.Logger) (applyAutoGen bool, controllers string) {
+	var needAutogen bool
 	for _, rule := range policy.Spec.Rules {
 		match := rule.MatchResources
 		exclude := rule.ExcludeResources
@@ -301,49 +307,61 @@ func CanAutoGen(policy *kyverno.ClusterPolicy, log logr.Logger) (applyAutoGen bo
 		if match.ResourceDescription.Name != "" || match.ResourceDescription.Selector != nil || match.ResourceDescription.Annotations != nil ||
 			exclude.ResourceDescription.Name != "" || exclude.ResourceDescription.Selector != nil || exclude.ResourceDescription.Annotations != nil {
 			log.V(3).Info("skip generating rule on pod controllers: Name / Selector in resource description may not be applicable.", "rule", rule.Name)
-			return false, "none"
+			return false, ""
 		}
 
 		if isKindOtherthanPod(match.Kinds) || isKindOtherthanPod(exclude.Kinds) {
-			return false, "none"
+			return false, ""
 		}
 
+		needAutogen = hasAutogenKinds(match.Kinds) || hasAutogenKinds(exclude.Kinds)
+
 		for _, value := range match.Any {
 			if isKindOtherthanPod(value.Kinds) {
-				return false, "none"
+				return false, ""
+			}
+			if !needAutogen {
+				needAutogen = hasAutogenKinds(value.Kinds)
 			}
 			if value.Name != "" || value.Selector != nil || value.Annotations != nil {
 				log.V(3).Info("skip generating rule on pod controllers: Name / Selector in match any block is not be applicable.", "rule", rule.Name)
-				return false, "none"
+				return false, ""
 			}
 		}
 		for _, value := range match.All {
-
 			if isKindOtherthanPod(value.Kinds) {
-				return false, "none"
+				return false, ""
+			}
+			if !needAutogen {
+				needAutogen = hasAutogenKinds(value.Kinds)
 			}
 			if value.Name != "" || value.Selector != nil || value.Annotations != nil {
 				log.V(3).Info("skip generating rule on pod controllers: Name / Selector in match all block is not be applicable.", "rule", rule.Name)
-				return false, "none"
+				return false, ""
 			}
 		}
 		for _, value := range exclude.Any {
 			if isKindOtherthanPod(value.Kinds) {
-				return false, "none"
+				return false, ""
+			}
+			if !needAutogen {
+				needAutogen = hasAutogenKinds(value.Kinds)
 			}
 			if value.Name != "" || value.Selector != nil || value.Annotations != nil {
 				log.V(3).Info("skip generating rule on pod controllers: Name / Selector in exclude any block is not be applicable.", "rule", rule.Name)
-				return false, "none"
+				return false, ""
 			}
 		}
 		for _, value := range exclude.All {
-
 			if isKindOtherthanPod(value.Kinds) {
-				return false, "none"
+				return false, ""
+			}
+			if !needAutogen {
+				needAutogen = hasAutogenKinds(value.Kinds)
 			}
 			if value.Name != "" || value.Selector != nil || value.Annotations != nil {
 				log.V(3).Info("skip generating rule on pod controllers: Name / Selector in exclud all block is not be applicable.", "rule", rule.Name)
-				return false, "none"
+				return false, ""
 			}
 		}
 
@@ -352,6 +370,10 @@ func CanAutoGen(policy *kyverno.ClusterPolicy, log logr.Logger) (applyAutoGen bo
 		}
 	}
 
+	if !needAutogen {
+		return false, ""
+	}
+
 	return true, engine.PodControllers
 }
 
@@ -362,6 +384,16 @@ func isKindOtherthanPod(kinds []string) bool {
 	return false
 }
 
+func hasAutogenKinds(kind []string) bool {
+	for _, v := range kind {
+		if v == "Pod" || strings.Contains(engine.PodControllers, v) {
+			return true
+		}
+	}
+
+	return false
+}
+
 func createRuleMap(rules []kyverno.Rule) map[string]kyvernoRule {
 	var ruleMap = make(map[string]kyvernoRule)
 	for _, rule := range rules {
diff --git a/pkg/policymutation/policymutation_test.go b/pkg/policymutation/policymutation_test.go
index 88a95b71c4..5e6943765e 100644
--- a/pkg/policymutation/policymutation_test.go
+++ b/pkg/policymutation/policymutation_test.go
@@ -339,6 +339,11 @@ func Test_getControllers(t *testing.T) {
 			policy:              []byte(`{"apiVersion":"kyverno.io/v1","kind":"ClusterPolicy","metadata":{"name":"set-service-labels-env"},"annotations":null,"pod-policies.kyverno.io/autogen-controllers":"none","spec":{"background":false,"rules":[{"name":"set-service-label","match":{"resources":{"kinds":["Pod","Deployment"]}},"mutate":{"patchStrategicMerge":{"metadata":{"labels":{"+(service)":"{{request.object.spec.template.metadata.labels.app}}"}}}}}]}}`),
 			expectedControllers: "none",
 		},
+		{
+			name:                "rule-with-only-predefined-valid-controllers",
+			policy:              []byte(`{"apiVersion":"kyverno.io/v1","kind":"ClusterPolicy","metadata":{"name":"set-service-labels-env"},"annotations":null,"pod-policies.kyverno.io/autogen-controllers":"none","spec":{"background":false,"rules":[{"name":"set-service-label","match":{"resources":{"kinds":["Namespace"]}},"mutate":{"patchStrategicMerge":{"metadata":{"labels":{"+(service)":"{{request.object.spec.template.metadata.labels.app}}"}}}}}]}}`),
+			expectedControllers: "none",
+		},
 	}
 
 	for _, test := range testCases {
@@ -346,7 +351,10 @@ func Test_getControllers(t *testing.T) {
 		err := json.Unmarshal(test.policy, &policy)
 		assert.NilError(t, err)
 
-		_, controllers := CanAutoGen(&policy, log.Log)
+		applyAutoGen, controllers := CanAutoGen(&policy, log.Log)
+		if !applyAutoGen {
+			controllers = "none"
+		}
 		assert.Equal(t, test.expectedControllers, controllers, fmt.Sprintf("test %s failed", test.name))
 	}
 }
diff --git a/pkg/webhooks/policymutation_test.go b/pkg/webhooks/policymutation_test.go
index 96ec186238..43fb6f2adb 100644
--- a/pkg/webhooks/policymutation_test.go
+++ b/pkg/webhooks/policymutation_test.go
@@ -46,7 +46,7 @@ func TestGeneratePodControllerRule_NilAnnotation(t *testing.T) {
 		"metadata": {
 		  "name": "add-safe-to-evict",
 		  "annotations": {
-			"pod-policies.kyverno.io/autogen-controllers": "DaemonSet,Deployment,Job,StatefulSet,CronJob"
+			"pod-policies.kyverno.io/autogen-controllers": "none"
 		  }
 		}
 	  }`)
@@ -69,7 +69,7 @@ func TestGeneratePodControllerRule_PredefinedAnnotation(t *testing.T) {
 	assert.Assert(t, json.Unmarshal(policyRaw, &policy))
 	patches, errs := policymutation.GeneratePodControllerRule(policy, log.Log)
 	assert.Assert(t, len(errs) == 0)
-	assert.Assert(t, len(patches) == 0)
+	assert.Assert(t, len(patches) == 1)
 }
 
 func TestGeneratePodControllerRule_DisableFeature(t *testing.T) {
@@ -315,7 +315,7 @@ func TestGeneratePodControllerRule_ExistOtherAnnotation(t *testing.T) {
 		"metadata": {
 		  "name": "add-safe-to-evict",
 		  "annotations": {
-			"pod-policies.kyverno.io/autogen-controllers": "DaemonSet,Deployment,Job,StatefulSet,CronJob",
+			"pod-policies.kyverno.io/autogen-controllers": "none",
 			"test": "annotation"
 		  }
 		}