diff --git a/deployment/base/rbac/master-clusterrole.yaml b/deployment/base/rbac/master-clusterrole.yaml
index 529f87e38..b87760d5a 100644
--- a/deployment/base/rbac/master-clusterrole.yaml
+++ b/deployment/base/rbac/master-clusterrole.yaml
@@ -3,6 +3,13 @@ kind: ClusterRole
 metadata:
   name: nfd-master
 rules:
+- apiGroups:
+  - ""
+  resources:
+  - namespaces
+  verbs:
+  - watch
+  - list
 - apiGroups:
   - ""
   resources:
diff --git a/deployment/components/master-config/nfd-master.conf.example b/deployment/components/master-config/nfd-master.conf.example
index 8aa0cb29c..96dd6d130 100644
--- a/deployment/components/master-config/nfd-master.conf.example
+++ b/deployment/components/master-config/nfd-master.conf.example
@@ -6,6 +6,21 @@
 # enableTaints: false
 # labelWhiteList: "foo"
 # resyncPeriod: "2h"
+# restrictions:
+#   disableLabels: true
+#   disableTaints: true
+#   disableExtendedResources: true
+#   disableAnnotations: true
+#   allowOverwrite: false
+#   denyNodeFeatureLabels: true
+#   nodeFeatureNamespaceSelector:
+#    matchLabels:
+#      kubernetes.io/metadata.name: "node-feature-discovery"
+#    matchExpressions:
+#      - key: "kubernetes.io/metadata.name"
+#        operator: "In"
+#        values:
+#           - "node-feature-discovery"
 # klog:
 #    addDirHeader: false
 #    alsologtostderr: false
diff --git a/deployment/helm/node-feature-discovery/templates/clusterrole.yaml b/deployment/helm/node-feature-discovery/templates/clusterrole.yaml
index 958f043fe..0b76e9afa 100644
--- a/deployment/helm/node-feature-discovery/templates/clusterrole.yaml
+++ b/deployment/helm/node-feature-discovery/templates/clusterrole.yaml
@@ -6,6 +6,13 @@ metadata:
   labels:
     {{- include "node-feature-discovery.labels" . | nindent 4 }}
 rules:
+- apiGroups:
+  - ""
+  resources:
+  - namespaces
+  verbs:
+  - watch
+  - list
 - apiGroups:
   - ""
   resources:
diff --git a/deployment/helm/node-feature-discovery/values.yaml b/deployment/helm/node-feature-discovery/values.yaml
index 524421a05..452bcf1ab 100644
--- a/deployment/helm/node-feature-discovery/values.yaml
+++ b/deployment/helm/node-feature-discovery/values.yaml
@@ -28,6 +28,21 @@ master:
     # enableTaints: false
     # labelWhiteList: "foo"
     # resyncPeriod: "2h"
+    # restrictions:
+    #   disableLabels: true
+    #   disableTaints: true
+    #   disableExtendedResources: true
+    #   disableAnnotations: true
+    #   allowOverwrite: false
+    #   denyNodeFeatureLabels: true
+    #   nodeFeatureNamespaceSelector:
+    #    matchLabels:
+    #      kubernetes.io/metadata.name: "node-feature-discovery"
+    #    matchExpressions:
+    #      - key: "kubernetes.io/metadata.name"
+    #        operator: "In"
+    #        values:
+    #           - "node-feature-discovery"
     # klog:
     #    addDirHeader: false
     #    alsologtostderr: false
diff --git a/docs/reference/master-configuration-reference.md b/docs/reference/master-configuration-reference.md
index 3f04cbc0f..b7a06fe0a 100644
--- a/docs/reference/master-configuration-reference.md
+++ b/docs/reference/master-configuration-reference.md
@@ -339,25 +339,24 @@ Default: *empty*
 
 Run-time configurable: yes
 
+## restrictions (EXPERIMENTAL)
 
-## restrictions
+The following options specify the restrictions that can be applied by the
+nfd-master on the deployed Custom Resources in the cluster.
 
-The following options specify the restrictions that can be applied by nfd-master
-on the deployed Custom Resources in the cluster.
+### restrictions.nodeFeatureNamespaceSelector
 
-### restrictions.allowedNamespaces
+The `nodeFeatureNamespaceSelector` option specifies the NodeFeatures namespaces
+to watch, which can be selected by using `metav1.LabelSelector` as a type for
+this option. An empty value selects all namespaces to be watched.
 
-The `allowedNamespaces` option specifies the NodeFeatures namespaces to watch.
-To select the appropriate namespaces to watch, you can use the `metav1.LabelSelector`
-as a type for this option.
-
-Default: all namespaces are allowed to be watched.
+Default: *empty*
 
 Example:
 
 ```yaml
 restrictions:
-  allowedNamespaces:
+  nodeFeatureNamespaceSelector:
     matchLabels:
       kubernetes.io/metadata.name: "node-feature-discovery"
     matchExpressions:
@@ -367,66 +366,56 @@ restrictions:
           - "node-feature-discovery"
 ```
 
-### restrictions.maxLabelsPerCR
+### restrictions.disableLabels
 
-The `maxLabelsPerCR` option specifies the maximum number of labels that can
-be generated by a single CustomResource.
+The `disableLabels` option controls whether to allow creation of node labels
+from NodeFeature and NodeFeatureRule CRs or not.
 
-Default: no limit
+Default: false
 
 Example:
 
 ```yaml
 restrictions:
-  maxLabelsPerCR: 20
+  disableLabels: true
 ```
 
-### restrictions.maxTaintsPerCR
+### restrictions.disableExtendedResources
 
-The `maxTaintsPerCR` option specifies the maximum number of taints that can
-be generated by a single CustomResource.
+The `disableExtendedResources` option controls whether to allow creation of
+node extended resources from NodeFeatureRule CR or not.
 
-Default: no limit
+Default: false
 
 Example:
 
 ```yaml
 restrictions:
-  maxTaintsPerCR: 10
+  disableExtendedResources: true
 ```
 
-### restrictions.maxExtendedResourcesPerCR
+### restrictions.disableAnnotations
 
-The `maxExtendedResourcesPerCR` option specifies the maximum number of extended
-resources that can be generated by a single CustomResource.
+he `disableAnnotations` option controls whether to allow creation of node annotations
+from NodeFeatureRule CR or not.
 
-Default: no limit
+Default: false
 
 Example:
 
 ```yaml
 restrictions:
-  maxExtendedResourcesPerCR: 15
+  disableAnnotations: true
 ```
 
-### restrictions.maxExtendedResourcesPerCR
+### restrictions.allowOverwrite
 
-The `maxExtendedResourcesPerCR` option specifies the maximum number of extended
-resources that can be generated by a single CustomResource.
-
-Default: no limit
-
-Example:
-
-```yaml
-restrictions:
-  maxExtendedResourcesPerCR: 15
-```
-
-### restrictions.overwriteLabels
-
-The `overwriteLabels` option specifies whether to overwrite existing
-labels, if there's an overlap, or not.
+The `allowOverwrite` option controls whether NFD is allowed to overwrite and
+take over management of existing node labels, annotations, and extended resources.
+Labels, annotations and extended resources created by NFD itself are not affected
+(overwrite cannot be disabled). NFD tracks the labels, annotations and extended
+resources that it manages with specific
+[node annotations](../get-started/introduction.md#node-annotations).
 
 Default: true
 
@@ -434,13 +423,13 @@ Example:
 
 ```yaml
 restrictions:
-  overwriteLabels: false
+  allowOverwrite: false
 ```
 
 ### restrictions.denyNodeFeatureLabels
 
-The `denyNodeFeatureLabels` option specifies whether to deny labels from NodeFeature
-objects or not.
+The `denyNodeFeatureLabels` option specifies whether to deny labels from 3rd party
+NodeFeature objects or not. NodeFeature objects created by nfd-worker are not affected.
 
 Default: false
 
diff --git a/examples/nodefeature.yaml b/examples/nodefeature.yaml
index 71078c9e2..7ef4dd56c 100644
--- a/examples/nodefeature.yaml
+++ b/examples/nodefeature.yaml
@@ -4,7 +4,7 @@ apiVersion: nfd.k8s-sigs.io/v1alpha1
 kind: NodeFeature
 metadata:
   labels:
-    nfd.node.kubernetes.io/node-name: nfd-control-plane
+    nfd.node.kubernetes.io/node-name: example-node
   name: example-node
   namespace: node-feature-discovery
 spec:
diff --git a/go.mod b/go.mod
index be823b2d3..7c25f60f5 100644
--- a/go.mod
+++ b/go.mod
@@ -2,8 +2,6 @@ module sigs.k8s.io/node-feature-discovery
 
 go 1.22.2
 
-toolchain go1.22.0
-
 require (
 	github.com/fsnotify/fsnotify v1.7.0
 	github.com/golang/protobuf v1.5.4
diff --git a/nfd-master.conf b/nfd-master.conf
deleted file mode 100644
index bea5ccb56..000000000
--- a/nfd-master.conf
+++ /dev/null
@@ -1,35 +0,0 @@
-noPublish: false
-autoDefaultNs: true
-extraLabelNs: ["added.ns.io","added.kubernets.io"]
-denyLabelNs: ["denied.ns.io","denied.kubernetes.io"]
-resourceLabels: ["vendor-1.com/feature-1","vendor-2.io/feature-2"]
-enableTaints: false
-labelWhiteList: ""
-resyncPeriod: "2h"
-restrictions:
-  allowedNamespaces:
-    matchLabels:
-      kubernetes.io/metadata.name: "node-feature-discovery"
-    matchExpressions:
-      - key: "kubernetes.io/metadata.name"
-        operator: "In"
-        values:
-          - "node-feature-discovery"
-klog:
-    addDirHeader: false
-    alsologtostderr: false
-    logBacktraceAt:
-    logtostderr: true
-    skipHeaders: false
-    stderrthreshold: 2
-    v: 0
-    vmodule:
-    logDir:
-    logFile:
-    logFileMaxSize: 1800
-    skipLogHeaders: false
-leaderElection:
-    leaseDuration: 15s
-    renewDeadline: 10s
-    retryPeriod: 2s
-nfdApiParallelism: 10
diff --git a/pkg/nfd-master/namespace-lister.go b/pkg/nfd-master/namespace-lister.go
new file mode 100644
index 000000000..ea8b97a4c
--- /dev/null
+++ b/pkg/nfd-master/namespace-lister.go
@@ -0,0 +1,58 @@
+/*
+Copyright 2024 The Kubernetes Authors.
+
+Licensed under the Apache License, Version 2.0 (the "License");
+you may not use this file except in compliance with the License.
+You may obtain a copy of the License at
+
+	http://www.apache.org/licenses/LICENSE-2.0
+
+Unless required by applicable law or agreed to in writing, software
+distributed under the License is distributed on an "AS IS" BASIS,
+WITHOUT WARRANTIES OR CONDITIONS OF ANY KIND, either express or implied.
+See the License for the specific language governing permissions and
+limitations under the License.
+*/
+package nfdmaster
+
+import (
+	"time"
+
+	corev1 "k8s.io/api/core/v1"
+	"k8s.io/apimachinery/pkg/labels"
+	"k8s.io/client-go/informers"
+	k8sclient "k8s.io/client-go/kubernetes"
+	v1lister "k8s.io/client-go/listers/core/v1"
+)
+
+// NamespaceLister lists kubernetes namespaces.
+type NamespaceLister struct {
+	namespaceLister v1lister.NamespaceLister
+	labelsSelector  labels.Selector
+	stopChan        chan struct{}
+}
+
+func newNamespaceLister(k8sClient k8sclient.Interface, labelsSelector labels.Selector) *NamespaceLister {
+	factory := informers.NewSharedInformerFactory(k8sClient, time.Hour)
+	namespaceLister := factory.Core().V1().Namespaces().Lister()
+
+	stopChan := make(chan struct{})
+	factory.Start(stopChan) // runs in background
+	factory.WaitForCacheSync(stopChan)
+
+	return &NamespaceLister{
+		namespaceLister: namespaceLister,
+		labelsSelector:  labelsSelector,
+		stopChan:        stopChan,
+	}
+}
+
+// list returns all kubernetes namespaces.
+func (lister *NamespaceLister) list() ([]*corev1.Namespace, error) {
+	return lister.namespaceLister.List(lister.labelsSelector)
+}
+
+// stop closes the channel used by the lister
+func (lister *NamespaceLister) stop() {
+	close(lister.stopChan)
+}
diff --git a/pkg/nfd-master/nfd-api-controller.go b/pkg/nfd-master/nfd-api-controller.go
index 905a2ed0c..2b248c407 100644
--- a/pkg/nfd-master/nfd-api-controller.go
+++ b/pkg/nfd-master/nfd-api-controller.go
@@ -17,16 +17,17 @@ limitations under the License.
 package nfdmaster
 
 import (
-	"context"
 	"fmt"
 	"time"
 
 	metav1 "k8s.io/apimachinery/pkg/apis/meta/v1"
 	utilruntime "k8s.io/apimachinery/pkg/util/runtime"
+	k8sclient "k8s.io/client-go/kubernetes"
 	restclient "k8s.io/client-go/rest"
 	"k8s.io/client-go/tools/cache"
 	"k8s.io/klog/v2"
 
+	nfdclientset "sigs.k8s.io/node-feature-discovery/api/generated/clientset/versioned"
 	nfdscheme "sigs.k8s.io/node-feature-discovery/api/generated/clientset/versioned/scheme"
 	nfdinformers "sigs.k8s.io/node-feature-discovery/api/generated/informers/externalversions"
 	nfdinformersv1alpha1 "sigs.k8s.io/node-feature-discovery/api/generated/informers/externalversions/nfd/v1alpha1"
@@ -46,12 +47,16 @@ type nfdController struct {
 	updateOneNodeChan              chan string
 	updateAllNodeFeatureGroupsChan chan struct{}
 	updateNodeFeatureGroupChan     chan string
+
+	namespaceLister *NamespaceLister
 }
 
 type nfdApiControllerOptions struct {
-	DisableNodeFeature      bool
-	DisableNodeFeatureGroup bool
-	ResyncPeriod            time.Duration
+	DisableNodeFeature           bool
+	DisableNodeFeatureGroup      bool
+	ResyncPeriod                 time.Duration
+	K8sClient                    k8sclient.Interface
+	NodeFeatureNamespaceSelector *metav1.LabelSelector
 }
 
 func init() {
@@ -65,12 +70,18 @@ func newNfdController(config *restclient.Config, nfdApiControllerOptions nfdApiC
 		updateOneNodeChan:              make(chan string),
 		updateAllNodeFeatureGroupsChan: make(chan struct{}, 1),
 		updateNodeFeatureGroupChan:     make(chan string),
-		k8sClient:                      nfdApiControllerOptions.K8sClient,
-		nodeFeatureNamespaceSelector:   nfdApiControllerOptions.NodeFeatureNamespaceSelector,
+	}
+
+	if nfdApiControllerOptions.NodeFeatureNamespaceSelector != nil {
+		labelMap, err := metav1.LabelSelectorAsSelector(nfdApiControllerOptions.NodeFeatureNamespaceSelector)
+		if err != nil {
+			klog.ErrorS(err, "failed to convert label selector to map", "selector", nfdApiControllerOptions.NodeFeatureNamespaceSelector)
+			return nil, err
+		}
+		c.namespaceLister = newNamespaceLister(nfdApiControllerOptions.K8sClient, labelMap)
 	}
 
 	nfdClient := nfdclientset.NewForConfigOrDie(config)
-
 	klog.V(2).InfoS("initializing new NFD API controller", "options", utils.DelayedDumper(nfdApiControllerOptions))
 
 	informerFactory := nfdinformers.NewSharedInformerFactory(nfdClient, nfdApiControllerOptions.ResyncPeriod)
@@ -94,25 +105,26 @@ func newNfdController(config *restclient.Config, nfdApiControllerOptions nfdApiC
 				if c.isNamespaceSelected(nfr.Namespace) {
 					c.updateOneNode("NodeFeature", nfr)
 				} else {
-					klog.InfoS("NodeFeature not in selected namespace", "namespace", nfr.Namespace, "name", nfr.Name)
+					klog.V(2).InfoS("NodeFeature namespace is not selected, skipping", "nodefeature", klog.KObj(nfr))
+				}
+				if !nfdApiControllerOptions.DisableNodeFeatureGroup {
+					c.updateAllNodeFeatureGroups()
 				}
 			},
 			UpdateFunc: func(oldObj, newObj interface{}) {
 				nfr := newObj.(*nfdv1alpha1.NodeFeature)
 				klog.V(2).InfoS("NodeFeature updated", "nodefeature", klog.KObj(nfr))
-				if c.isNamespaceSelected(nfr.Namespace) {
-					c.updateOneNode("NodeFeature", nfr)
-				} else {
-					klog.InfoS("NodeFeature not in selected namespace", "namespace", nfr.Namespace, "name", nfr.Name)
+				c.updateOneNode("NodeFeature", nfr)
+				if !nfdApiControllerOptions.DisableNodeFeatureGroup {
+					c.updateAllNodeFeatureGroups()
 				}
 			},
 			DeleteFunc: func(obj interface{}) {
 				nfr := obj.(*nfdv1alpha1.NodeFeature)
 				klog.V(2).InfoS("NodeFeature deleted", "nodefeature", klog.KObj(nfr))
-				if c.isNamespaceSelected(nfr.Namespace) {
-					c.updateOneNode("NodeFeature", nfr)
-				} else {
-					klog.InfoS("NodeFeature not in selected namespace", "namespace", nfr.Namespace, "name", nfr.Name)
+				c.updateOneNode("NodeFeature", nfr)
+				if !nfdApiControllerOptions.DisableNodeFeatureGroup {
+					c.updateAllNodeFeatureGroups()
 				}
 			},
 		}); err != nil {
@@ -192,6 +204,7 @@ func newNfdController(config *restclient.Config, nfdApiControllerOptions nfdApiC
 
 func (c *nfdController) stop() {
 	close(c.stopChan)
+	c.namespaceLister.stop()
 }
 
 func getNodeNameForObj(obj metav1.Object) (string, error) {
@@ -215,28 +228,19 @@ func (c *nfdController) updateOneNode(typ string, obj metav1.Object) {
 }
 
 func (c *nfdController) isNamespaceSelected(namespace string) bool {
-	// no namespace restrictions are made here
-	if c.nodeFeatureNamespaceSelector == nil {
+	// this means that the user didn't specify any namespace selector
+	// which means that we allow all namespaces
+	if c.namespaceLister == nil {
 		return true
 	}
 
-	labelMap, err := metav1.LabelSelectorAsSelector(c.nodeFeatureNamespaceSelector)
+	namespaces, err := c.namespaceLister.list()
 	if err != nil {
-		klog.ErrorS(err, "failed to convert label selector to map", "selector", c.nodeFeatureNamespaceSelector)
+		klog.ErrorS(err, "failed to query namespaces by the namespace lister")
 		return false
 	}
 
-	listOptions := metav1.ListOptions{
-		LabelSelector: labelMap.String(),
-	}
-
-	namespaces, err := c.k8sClient.CoreV1().Namespaces().List(context.Background(), listOptions)
-	if err != nil {
-		klog.ErrorS(err, "failed to query namespaces", "listOptions", listOptions)
-		return false
-	}
-
-	for _, ns := range namespaces.Items {
+	for _, ns := range namespaces {
 		if ns.Name == namespace {
 			return true
 		}
diff --git a/pkg/nfd-master/nfd-api-controller_test.go b/pkg/nfd-master/nfd-api-controller_test.go
index 21401d96c..a49c4939b 100644
--- a/pkg/nfd-master/nfd-api-controller_test.go
+++ b/pkg/nfd-master/nfd-api-controller_test.go
@@ -20,11 +20,13 @@ import (
 	"testing"
 
 	"github.com/stretchr/testify/assert"
-
-	metav1 "k8s.io/apimachinery/pkg/apis/meta/v1"
-	nfdv1alpha1 "sigs.k8s.io/node-feature-discovery/api/nfd/v1alpha1"
-	fakeclient "k8s.io/client-go/kubernetes/fake"
 	corev1 "k8s.io/api/core/v1"
+	metav1 "k8s.io/apimachinery/pkg/apis/meta/v1"
+	"k8s.io/apimachinery/pkg/watch"
+	fakeclient "k8s.io/client-go/kubernetes/fake"
+	clienttesting "k8s.io/client-go/testing"
+
+	nfdv1alpha1 "sigs.k8s.io/node-feature-discovery/api/nfd/v1alpha1"
 )
 
 func TestGetNodeNameForObj(t *testing.T) {
@@ -45,7 +47,7 @@ func TestGetNodeNameForObj(t *testing.T) {
 	assert.Equal(t, n, "node-1")
 }
 
-func newTestNamespace(name string) *corev1.Namespace{
+func newTestNamespace(name string) *corev1.Namespace {
 	return &corev1.Namespace{
 		ObjectMeta: metav1.ObjectMeta{
 			Name: name,
@@ -56,11 +58,19 @@ func newTestNamespace(name string) *corev1.Namespace{
 	}
 }
 
-func TestIsNamespaceAllowed(t *testing.T) {
+func TestIsNamespaceSelected(t *testing.T) {
 	fakeCli := fakeclient.NewSimpleClientset(newTestNamespace("fake"))
-	c := &nfdController{
-		k8sClient: fakeCli,
-	}
+	fakeCli.PrependWatchReactor("*", func(action clienttesting.Action) (handled bool, ret watch.Interface, err error) {
+		gvr := action.GetResource()
+		ns := action.GetNamespace()
+		watch, err := fakeCli.Tracker().Watch(gvr, ns)
+		if err != nil {
+			return false, nil, err
+		}
+		return true, watch, nil
+	})
+
+	c := &nfdController{}
 
 	testcases := []struct {
 		name                         string
@@ -69,8 +79,8 @@ func TestIsNamespaceAllowed(t *testing.T) {
 		expectedResult               bool
 	}{
 		{
-			name:                         "namespace not allowed",
-			objectNamespace:              "random",
+			name:            "namespace not selected",
+			objectNamespace: "random",
 			nodeFeatureNamespaceSelector: &metav1.LabelSelector{
 				MatchExpressions: []metav1.LabelSelectorRequirement{
 					{
@@ -80,21 +90,22 @@ func TestIsNamespaceAllowed(t *testing.T) {
 					},
 				},
 			},
-			expectedResult:               false,
+			expectedResult: false,
 		},
 		{
-			name:                         "namespace is allowed",
-			objectNamespace:              "fake",
+			name:            "namespace is selected",
+			objectNamespace: "fake",
 			nodeFeatureNamespaceSelector: &metav1.LabelSelector{
 				MatchLabels: map[string]string{"name": "fake"},
 			},
-			expectedResult:               false,
+			expectedResult: true,
 		},
 	}
 
 	for _, tc := range testcases {
-		c.nodeFeatureNamespaceSelector = tc.nodeFeatureNamespaceSelector
-		res := c.isNamespaceSelected(tc.name)
+		labelMap, _ := metav1.LabelSelectorAsSelector(tc.nodeFeatureNamespaceSelector)
+		c.namespaceLister = newNamespaceLister(fakeCli, labelMap)
+		res := c.isNamespaceSelected(tc.objectNamespace)
 		assert.Equal(t, res, tc.expectedResult)
 	}
 }
diff --git a/pkg/nfd-master/nfd-master-internal_test.go b/pkg/nfd-master/nfd-master-internal_test.go
index e6e73103e..42504a616 100644
--- a/pkg/nfd-master/nfd-master-internal_test.go
+++ b/pkg/nfd-master/nfd-master-internal_test.go
@@ -35,6 +35,7 @@ import (
 	metav1 "k8s.io/apimachinery/pkg/apis/meta/v1"
 	"k8s.io/apimachinery/pkg/runtime"
 	utilruntime "k8s.io/apimachinery/pkg/util/runtime"
+	"k8s.io/apimachinery/pkg/util/sets"
 	fakeclient "k8s.io/client-go/kubernetes/fake"
 	fakecorev1client "k8s.io/client-go/kubernetes/typed/core/v1/fake"
 	clienttesting "k8s.io/client-go/testing"
@@ -112,7 +113,7 @@ func withConfig(config *NFDConfig) NfdMasterOption {
 func newFakeMaster(opts ...NfdMasterOption) *nfdMaster {
 	defaultOpts := []NfdMasterOption{
 		withNodeName(testNodeName),
-		withConfig(&NFDConfig{}),
+		withConfig(&NFDConfig{Restrictions: Restrictions{AllowOverwrite: true}}),
 		WithKubernetesClient(fakeclient.NewSimpleClientset()),
 	}
 	m, err := NewNfdMaster(append(defaultOpts, opts...)...)
@@ -513,12 +514,12 @@ func TestCreatePatches(t *testing.T) {
 		jsonPath := "/root"
 
 		Convey("When there are neither itmes to remoe nor to add or update", func() {
-			p := createPatches([]string{"foo", "bar"}, existingItems, map[string]string{}, jsonPath, overwriteKeys)
+			p := createPatches(sets.New([]string{"foo", "bar"}...), existingItems, map[string]string{}, jsonPath, overwriteKeys)
 			So(len(p), ShouldEqual, 0)
 		})
 
 		Convey("When there are itmes to remoe but none to add or update", func() {
-			p := createPatches([]string{"key-2", "key-3", "foo"}, existingItems, map[string]string{}, jsonPath, overwriteKeys)
+			p := createPatches(sets.New([]string{"key-2", "key-3", "foo"}...), existingItems, map[string]string{}, jsonPath, overwriteKeys)
 			expected := []utils.JsonPatch{
 				utils.NewJsonPatch("remove", jsonPath, "key-2", ""),
 				utils.NewJsonPatch("remove", jsonPath, "key-3", ""),
@@ -528,7 +529,7 @@ func TestCreatePatches(t *testing.T) {
 
 		Convey("When there are no itmes to remove but new items to add", func() {
 			newItems := map[string]string{"new-key": "new-val", "key-1": "new-1"}
-			p := createPatches([]string{"key-1"}, existingItems, newItems, jsonPath, overwriteKeys)
+			p := createPatches(sets.New([]string{"key-1"}...), existingItems, newItems, jsonPath, overwriteKeys)
 			expected := []utils.JsonPatch{
 				utils.NewJsonPatch("add", jsonPath, "new-key", newItems["new-key"]),
 				utils.NewJsonPatch("replace", jsonPath, "key-1", newItems["key-1"]),
@@ -538,7 +539,7 @@ func TestCreatePatches(t *testing.T) {
 
 		Convey("When there are items to remove add and update", func() {
 			newItems := map[string]string{"new-key": "new-val", "key-2": "new-2", "key-4": "val-4"}
-			p := createPatches([]string{"key-1", "key-2", "key-3", "foo"}, existingItems, newItems, jsonPath, overwriteKeys)
+			p := createPatches(sets.New([]string{"key-1", "key-2", "key-3", "foo"}...), existingItems, newItems, jsonPath, overwriteKeys)
 			expected := []utils.JsonPatch{
 				utils.NewJsonPatch("add", jsonPath, "new-key", newItems["new-key"]),
 				utils.NewJsonPatch("add", jsonPath, "key-4", newItems["key-4"]),
@@ -552,9 +553,10 @@ func TestCreatePatches(t *testing.T) {
 		Convey("When overwrite of keys is denied and there is already an existant key", func() {
 			overwriteKeys = false
 			newItems := map[string]string{"key-1": "new-2", "key-4": "val-4"}
-			p := createPatches([]string{}, existingItems, newItems, jsonPath, overwriteKeys)
+			p := createPatches(sets.New([]string{}...), existingItems, newItems, jsonPath, overwriteKeys)
 			expected := []utils.JsonPatch{
 				utils.NewJsonPatch("add", jsonPath, "key-4", newItems["key-4"]),
+				utils.NewJsonPatch("replace", jsonPath, "key-1", newItems["key-1"]),
 			}
 			So(sortJsonPatches(p), ShouldResemble, sortJsonPatches(expected))
 		})
@@ -907,60 +909,3 @@ func TestGetDynamicValue(t *testing.T) {
 		})
 	}
 }
-
-func TestFilterTaints(t *testing.T) {
-	testcases := []struct {
-		name           string
-		taints         []corev1.Taint
-		maxTaints      int
-		expectedResult []corev1.Taint
-	}{
-		{
-			name: "no restriction on the number of taints",
-			taints: []corev1.Taint{
-				{
-					Key:    "feature.node.kubernetes.io/key1",
-					Value:  "dummy",
-					Effect: corev1.TaintEffectNoSchedule,
-				},
-			},
-			maxTaints: 0,
-			expectedResult: []corev1.Taint{
-				{
-					Key:    "feature.node.kubernetes.io/key1",
-					Value:  "dummy",
-					Effect: corev1.TaintEffectNoSchedule,
-				},
-			},
-		},
-		{
-			name: "max of 1 Taint should be generated",
-			taints: []corev1.Taint{
-				{
-					Key:    "feature.node.kubernetes.io/key1",
-					Value:  "dummy",
-					Effect: corev1.TaintEffectNoSchedule,
-				},
-				{
-					Key:    "feature.node.kubernetes.io/key2",
-					Value:  "dummy",
-					Effect: corev1.TaintEffectNoSchedule,
-				},
-			},
-			maxTaints:      1,
-			expectedResult: []corev1.Taint{},
-		},
-	}
-
-	mockMaster := newFakeMaster(nil)
-
-	for _, tc := range testcases {
-		t.Run(tc.name, func(t *testing.T) {
-			mockMaster.config.Restrictions.MaxTaintsPerCR = tc.maxTaints
-			res := mockMaster.filterTaints(tc.taints)
-			Convey("The expected number of taints should be correct", t, func() {
-				So(len(res), ShouldEqual, len(tc.expectedResult))
-			})
-		})
-	}
-}
diff --git a/pkg/nfd-master/nfd-master.go b/pkg/nfd-master/nfd-master.go
index b95685b3b..4a21ca3b5 100644
--- a/pkg/nfd-master/nfd-master.go
+++ b/pkg/nfd-master/nfd-master.go
@@ -45,14 +45,13 @@ import (
 	"k8s.io/apimachinery/pkg/labels"
 	k8sLabels "k8s.io/apimachinery/pkg/labels"
 	"k8s.io/apimachinery/pkg/types"
+	"k8s.io/apimachinery/pkg/util/sets"
 	k8sclient "k8s.io/client-go/kubernetes"
 	restclient "k8s.io/client-go/rest"
 	"k8s.io/client-go/tools/leaderelection"
 	"k8s.io/client-go/tools/leaderelection/resourcelock"
 	"k8s.io/klog/v2"
 	controller "k8s.io/kubernetes/pkg/controller"
-	klogutils "sigs.k8s.io/node-feature-discovery/pkg/utils/klog"
-
 	taintutils "k8s.io/kubernetes/pkg/util/taints"
 	"sigs.k8s.io/yaml"
 
@@ -63,6 +62,7 @@ import (
 	nfdfeatures "sigs.k8s.io/node-feature-discovery/pkg/features"
 	pb "sigs.k8s.io/node-feature-discovery/pkg/labeler"
 	"sigs.k8s.io/node-feature-discovery/pkg/utils"
+	klogutils "sigs.k8s.io/node-feature-discovery/pkg/utils/klog"
 	"sigs.k8s.io/node-feature-discovery/pkg/version"
 )
 
@@ -77,12 +77,12 @@ type Annotations map[string]string
 
 // Restrictions contains the restrictions on the NF and NFR Crs
 type Restrictions struct {
-	AllowedNamespaces         *metav1.LabelSelector
-	MaxLabelsPerCR            int
-	MaxTaintsPerCR            int
-	MaxExtendedResourcesPerCR int
-	DenyNodeFeatureLabels     bool
-	OverwriteLabels           bool
+	NodeFeatureNamespaceSelector *metav1.LabelSelector
+	DisableLabels                bool
+	DisableExtendedResources     bool
+	DisableAnnotations           bool
+	DenyNodeFeatureLabels        bool
+	AllowOverwrite               bool
 }
 
 // NFDConfig contains the configuration settings of NfdMaster.
@@ -285,11 +285,11 @@ func newDefaultConfig() *NFDConfig {
 		},
 		Klog: make(map[string]string),
 		Restrictions: Restrictions{
-			MaxLabelsPerCR:            0,
-			MaxTaintsPerCR:            0,
-			MaxExtendedResourcesPerCR: 0,
-			OverwriteLabels:           true,
-			DenyNodeFeatureLabels:     false,
+			DisableLabels:            false,
+			DisableExtendedResources: false,
+			DisableAnnotations:       false,
+			AllowOverwrite:           true,
+			DenyNodeFeatureLabels:    false,
 		},
 	}
 }
@@ -635,10 +635,10 @@ func (m *nfdMaster) updateMasterNode() error {
 	}
 
 	// Advertise NFD version as an annotation
-	p := createPatches([]string{m.instanceAnnotation(nfdv1alpha1.MasterVersionAnnotation)},
+	p := createPatches(sets.New([]string{m.instanceAnnotation(nfdv1alpha1.MasterVersionAnnotation)}...),
 		node.Annotations,
 		nil,
-		"/metadata/annotations", true)
+		"/metadata/annotations", m.config.Restrictions.AllowOverwrite)
 
 	err = patchNode(m.k8sClient, node.Name, p)
 	if err != nil {
@@ -679,8 +679,8 @@ func (m *nfdMaster) filterFeatureLabels(labels Labels, features *nfdv1alpha1.Fea
 		}
 	}
 
-	if m.config.Restrictions.MaxLabelsPerCR > 0 && len(outLabels) > m.config.Restrictions.MaxLabelsPerCR {
-		klog.InfoS("number of labels in the request exceeds the restriction maximum labels per CR, skipping")
+	if len(outLabels) > 0 && m.config.Restrictions.DisableLabels {
+		klog.V(2).InfoS("node labels are disabled in configuration (restrictions.disableLabels=true)")
 		outLabels = Labels{}
 	}
 
@@ -738,7 +738,7 @@ func getDynamicValue(value string, features *nfdv1alpha1.Features) (string, erro
 	return element, nil
 }
 
-func (m *nfdMaster) filterTaints(taints []corev1.Taint) []corev1.Taint {
+func filterTaints(taints []corev1.Taint) []corev1.Taint {
 	outTaints := []corev1.Taint{}
 
 	for _, taint := range taints {
@@ -750,11 +750,6 @@ func (m *nfdMaster) filterTaints(taints []corev1.Taint) []corev1.Taint {
 		}
 	}
 
-	if m.config.Restrictions.MaxTaintsPerCR > 0 && len(taints) > m.config.Restrictions.MaxTaintsPerCR {
-		klog.InfoS("number of taints in the request exceeds the restriction maximum taints per CR, skipping")
-		outTaints = []corev1.Taint{}
-	}
-
 	return outTaints
 }
 
@@ -846,42 +841,62 @@ func (m *nfdMaster) getAndMergeNodeFeatures(nodeName string) (*nfdv1alpha1.NodeF
 		return &nfdv1alpha1.NodeFeature{}, fmt.Errorf("failed to get NodeFeature resources for node %q: %w", nodeName, err)
 	}
 
+	filteredObjs := []*nfdv1alpha1.NodeFeature{}
+	for _, obj := range objs {
+		if m.isNamespaceSelected(obj.Namespace) {
+			filteredObjs = append(filteredObjs, obj)
+		}
+	}
+
 	// Node without a running NFD-Worker
-	if len(objs) == 0 {
+	if len(filteredObjs) == 0 {
 		return &nfdv1alpha1.NodeFeature{}, nil
 	}
 
 	// Sort our objects
-	sort.Slice(objs, func(i, j int) bool {
+	sort.Slice(filteredObjs, func(i, j int) bool {
 		// Objects in our nfd namespace gets into the beginning of the list
-		if objs[i].Namespace == m.namespace && objs[j].Namespace != m.namespace {
+		if filteredObjs[i].Namespace == m.namespace && filteredObjs[j].Namespace != m.namespace {
 			return true
 		}
-		if objs[i].Namespace != m.namespace && objs[j].Namespace == m.namespace {
+		if filteredObjs[i].Namespace != m.namespace && filteredObjs[j].Namespace == m.namespace {
 			return false
 		}
 		// After the nfd namespace, sort objects by their name
-		if objs[i].Name != objs[j].Name {
-			return objs[i].Name < objs[j].Name
+		if filteredObjs[i].Name != filteredObjs[j].Name {
+			return filteredObjs[i].Name < filteredObjs[j].Name
 		}
 		// Objects with the same name are sorted by their namespace
-		return objs[i].Namespace < objs[j].Namespace
+		return filteredObjs[i].Namespace < filteredObjs[j].Namespace
 	})
 
-	if len(objs) > 0 {
+	if len(filteredObjs) > 0 {
 		// Merge in features
 		//
 		// NOTE: changing the rule api to support handle multiple objects instead
 		// of merging would probably perform better with lot less data to copy.
-		features := objs[0].Spec.DeepCopy()
+		features := filteredObjs[0].Spec.DeepCopy()
+
+		if m.config.Restrictions.DenyNodeFeatureLabels && m.isThirdPartyNodeFeature(*filteredObjs[0], nodeName, m.namespace) {
+			klog.V(2).InfoS("node feature labels are disabled in configuration (restrictions.denyNodeFeatureLabels=true)")
+			features.Labels = nil
+		}
+
 		if !nfdfeatures.NFDFeatureGate.Enabled(nfdfeatures.DisableAutoPrefix) && m.config.AutoDefaultNs {
 			features.Labels = addNsToMapKeys(features.Labels, nfdv1alpha1.FeatureLabelNs)
 		}
-		for _, o := range objs[1:] {
+
+		for _, o := range filteredObjs[1:] {
 			s := o.Spec.DeepCopy()
+			if m.config.Restrictions.DenyNodeFeatureLabels && m.isThirdPartyNodeFeature(*o, nodeName, m.namespace) {
+				klog.V(2).InfoS("node feature labels are disabled in configuration (restrictions.denyNodeFeatureLabels=true)")
+				s.Labels = nil
+			}
+
 			if !nfdfeatures.NFDFeatureGate.Enabled(nfdfeatures.DisableAutoPrefix) && m.config.AutoDefaultNs {
 				s.Labels = addNsToMapKeys(s.Labels, nfdv1alpha1.FeatureLabelNs)
 			}
+
 			s.MergeInto(features)
 		}
 
@@ -894,6 +909,11 @@ func (m *nfdMaster) getAndMergeNodeFeatures(nodeName string) (*nfdv1alpha1.NodeF
 	return nodeFeatures, nil
 }
 
+// isThirdPartyNodeFeature determines whether a node feature is a third party one or created by nfd-worker
+func (m *nfdMaster) isThirdPartyNodeFeature(nodeFeature nfdv1alpha1.NodeFeature, nodeName, namespace string) bool {
+	return nodeFeature.Namespace != namespace || nodeFeature.Name != nodeName
+}
+
 func (m *nfdMaster) nfdAPIUpdateOneNode(cli k8sclient.Interface, node *corev1.Node) error {
 	if m.nfdController == nil || m.nfdController.featureLister == nil {
 		return nil
@@ -1060,8 +1080,8 @@ func (m *nfdMaster) refreshNodeFeatures(cli k8sclient.Interface, node *corev1.No
 	maps.Copy(extendedResources, crExtendedResources)
 	extendedResources = m.filterExtendedResources(features, extendedResources)
 
-	if m.config.Restrictions.MaxExtendedResourcesPerCR > 0 && len(extendedResources) > m.config.Restrictions.MaxExtendedResourcesPerCR {
-		klog.InfoS("number of extended resources in the request exceeds the restriction maximum extended resources per CR, skipping")
+	if len(extendedResources) > 0 && m.config.Restrictions.DisableExtendedResources {
+		klog.V(2).InfoS("extended resources are disabled in configuration (restrictions.disableExtendedResources=true)")
 		extendedResources = map[string]string{}
 	}
 
@@ -1071,13 +1091,7 @@ func (m *nfdMaster) refreshNodeFeatures(cli k8sclient.Interface, node *corev1.No
 	// Taints
 	var taints []corev1.Taint
 	if m.config.EnableTaints {
-		taints = m.filterTaints(crTaints)
-	}
-
-	// If we deny node feature labels, we'll empty the labels variable
-	if m.config.Restrictions.DenyNodeFeatureLabels {
-		klog.InfoS("node feature labels are denied, skipping...")
-		labels = map[string]string{}
+		taints = filterTaints(crTaints)
 	}
 
 	if m.config.NoPublish {
@@ -1097,8 +1111,8 @@ func (m *nfdMaster) refreshNodeFeatures(cli k8sclient.Interface, node *corev1.No
 // setTaints sets node taints and annotations based on the taints passed via
 // nodeFeatureRule custom resorce. If empty list of taints is passed, currently
 // NFD owned taints and annotations are removed from the node.
-func setTaints(cli k8sclient.Interface, taints []corev1.Taint, node *corev1.Node) error {
-	// De-serialize the taints annotation into corev1.Taint type for comparison below.
+func (m *nfdMaster) setTaints(cli k8sclient.Interface, taints []corev1.Taint, node *corev1.Node) error {
+	// De-serialize the taints annotation into corev1.Taint type for comparision below.
 	var err error
 	oldTaints := []corev1.Taint{}
 	if val, ok := node.Annotations[nfdv1alpha1.NodeTaintsAnnotation]; ok {
@@ -1154,7 +1168,11 @@ func setTaints(cli k8sclient.Interface, taints []corev1.Taint, node *corev1.Node
 		newAnnotations[nfdv1alpha1.NodeTaintsAnnotation] = strings.Join(taintStrs, ",")
 	}
 
-	patches := createPatches([]string{nfdv1alpha1.NodeTaintsAnnotation}, node.Annotations, newAnnotations, "/metadata/annotations", true)
+	patches := createPatches(sets.New([]string{nfdv1alpha1.NodeTaintsAnnotation}...),
+		node.Annotations, newAnnotations,
+		"/metadata/annotations",
+		m.config.Restrictions.AllowOverwrite,
+	)
 	if len(patches) > 0 {
 		if err := patchNode(cli, node.Name, patches); err != nil {
 			return fmt.Errorf("error while patching node object: %w", err)
@@ -1294,7 +1312,7 @@ func (m *nfdMaster) updateNodeObject(cli k8sclient.Interface, node *corev1.Node,
 	// Create JSON patches for changes in labels and annotations
 	oldLabels := stringToNsNames(node.Annotations[m.instanceAnnotation(nfdv1alpha1.FeatureLabelsAnnotation)], nfdv1alpha1.FeatureLabelNs)
 	oldAnnotations := stringToNsNames(node.Annotations[m.instanceAnnotation(nfdv1alpha1.FeatureAnnotationsTrackingAnnotation)], nfdv1alpha1.FeatureAnnotationNs)
-	patches := createPatches(oldLabels, node.Labels, labels, "/metadata/labels", m.config.Restrictions.OverwriteLabels)
+	patches := createPatches(sets.New(oldLabels...), node.Labels, labels, "/metadata/labels", m.config.Restrictions.AllowOverwrite)
 	oldAnnotations = append(oldAnnotations, []string{
 		m.instanceAnnotation(nfdv1alpha1.FeatureLabelsAnnotation),
 		m.instanceAnnotation(nfdv1alpha1.ExtendedResourceAnnotation),
@@ -1302,7 +1320,7 @@ func (m *nfdMaster) updateNodeObject(cli k8sclient.Interface, node *corev1.Node,
 		// Clean up deprecated/stale nfd version annotations
 		m.instanceAnnotation(nfdv1alpha1.MasterVersionAnnotation),
 		m.instanceAnnotation(nfdv1alpha1.WorkerVersionAnnotation)}...)
-	patches = append(patches, createPatches(oldAnnotations, node.Annotations, annotations, "/metadata/annotations", true)...)
+	patches = append(patches, createPatches(sets.New(oldAnnotations...), node.Annotations, annotations, "/metadata/annotations", m.config.Restrictions.AllowOverwrite)...)
 
 	// patch node status with extended resource changes
 	statusPatches := m.createExtendedResourcePatches(node, extendedResources)
@@ -1325,7 +1343,7 @@ func (m *nfdMaster) updateNodeObject(cli k8sclient.Interface, node *corev1.Node,
 	}
 
 	// Set taints
-	err = setTaints(cli, taints, node)
+	err = m.setTaints(cli, taints, node)
 	if err != nil {
 		return err
 	}
@@ -1334,11 +1352,11 @@ func (m *nfdMaster) updateNodeObject(cli k8sclient.Interface, node *corev1.Node,
 }
 
 // createPatches is a generic helper that returns json patch operations to perform
-func createPatches(removeKeys []string, oldItems map[string]string, newItems map[string]string, jsonPath string, overwrite bool) []utils.JsonPatch {
+func createPatches(removeKeys sets.Set[string], oldItems map[string]string, newItems map[string]string, jsonPath string, overwrite bool) []utils.JsonPatch {
 	patches := []utils.JsonPatch{}
 
 	// Determine items to remove
-	for _, key := range removeKeys {
+	for key := range removeKeys {
 		if _, ok := oldItems[key]; ok {
 			if _, ok := newItems[key]; !ok {
 				patches = append(patches, utils.NewJsonPatch("remove", jsonPath, key, ""))
@@ -1349,7 +1367,7 @@ func createPatches(removeKeys []string, oldItems map[string]string, newItems map
 	// Determine items to add or replace
 	for key, newVal := range newItems {
 		if oldVal, ok := oldItems[key]; ok {
-			if newVal != oldVal && overwrite {
+			if newVal != oldVal && (!removeKeys.Has(key) || overwrite) {
 				patches = append(patches, utils.NewJsonPatch("replace", jsonPath, key, newVal))
 			}
 		} else {
@@ -1554,7 +1572,7 @@ func (m *nfdMaster) startNfdApiController() error {
 		DisableNodeFeature:           !nfdfeatures.NFDFeatureGate.Enabled(nfdfeatures.NodeFeatureAPI),
 		ResyncPeriod:                 m.config.ResyncPeriod.Duration,
 		K8sClient:                    m.k8sClient,
-		NodeFeatureNamespaceSelector: m.config.Restrictions.AllowedNamespaces,
+		NodeFeatureNamespaceSelector: m.config.Restrictions.NodeFeatureNamespaceSelector,
 	})
 	if err != nil {
 		return fmt.Errorf("failed to initialize CRD controller: %w", err)
@@ -1615,6 +1633,12 @@ func (m *nfdMaster) filterFeatureAnnotations(annotations map[string]string) map[
 
 		outAnnotations[annotation] = value
 	}
+
+	if len(outAnnotations) > 0 && m.config.Restrictions.DisableAnnotations {
+		klog.V(2).InfoS("node annotations are disabled in configuration (restrictions.disableAnnotations=true)")
+		outAnnotations = map[string]string{}
+	}
+
 	return outAnnotations
 }
 
diff --git a/test/e2e/data/nodefeaturerule-6.yaml b/test/e2e/data/nodefeaturerule-6.yaml
new file mode 100644
index 000000000..d9dcb3836
--- /dev/null
+++ b/test/e2e/data/nodefeaturerule-6.yaml
@@ -0,0 +1,18 @@
+apiVersion: nfd.k8s-sigs.io/v1alpha1
+kind: NodeFeatureRule
+metadata:
+  name: e2e-test-6
+spec:
+  rules:
+    - name: "e2e-restrictions-test-1"
+      taints:
+        - effect: PreferNoSchedule
+          key: "feature.node.kubernetes.io/fake-special-cpu"
+          value: "true"
+      labels:
+        e2e.feature.node.kubernetes.io/restricted-label-1: "true"
+      annotations:
+        e2e.feature.node.kubernetes.io/restricted-annoation-1: "yes"
+      extendedResources:
+        e2e.feature.node.kubernetes.io/restricted-er-1: "2"
+      matchFeatures:
diff --git a/test/e2e/node_feature_discovery_test.go b/test/e2e/node_feature_discovery_test.go
index dd692ce76..affd9d22b 100644
--- a/test/e2e/node_feature_discovery_test.go
+++ b/test/e2e/node_feature_discovery_test.go
@@ -28,7 +28,6 @@ import (
 
 	. "github.com/onsi/ginkgo/v2"
 	. "github.com/onsi/gomega"
-
 	corev1 "k8s.io/api/core/v1"
 	apiextensionsv1 "k8s.io/apiextensions-apiserver/pkg/apis/apiextensions/v1"
 	extclient "k8s.io/apiextensions-apiserver/pkg/client/clientset/clientset"
@@ -853,227 +852,6 @@ core:
 				}
 				eventuallyNonControlPlaneNodes(ctx, f.ClientSet).WithTimeout(1 * time.Minute).Should(MatchLabels(expectedLabels, nodes))
 			})
-
-			Context("allowed namespaces restriction is respected or not", func() {
-				BeforeEach(func(ctx context.Context) {
-					extraMasterPodSpecOpts = []testpod.SpecOption{
-						testpod.SpecWithConfigMap("nfd-master-conf", "/etc/kubernetes/node-feature-discovery"),
-					}
-					cm := testutils.NewConfigMap("nfd-master-conf", "nfd-master.conf", `
-restrictions:
-  allowedNamespaces:
-    matchLabels:
-      kubernetes.io/metadata.name: "fake"
-`)
-					_, err := f.ClientSet.CoreV1().ConfigMaps(f.Namespace.Name).Create(ctx, cm, metav1.CreateOptions{})
-					Expect(err).NotTo(HaveOccurred())
-				})
-				It("Nothing should be created", func(ctx context.Context) {
-					// deploy node feature object
-					if !useNodeFeatureApi {
-						Skip("NodeFeature API not enabled")
-					}
-
-					nodes, err := getNonControlPlaneNodes(ctx, f.ClientSet)
-					Expect(err).NotTo(HaveOccurred())
-
-					targetNodeName := nodes[0].Name
-					Expect(targetNodeName).ToNot(BeEmpty(), "No suitable worker node found")
-
-					// Apply Node Feature object
-					By("Creating NodeFeature object")
-					nodeFeatures, err := testutils.CreateOrUpdateNodeFeaturesFromFile(ctx, nfdClient, "nodefeature-1.yaml", f.Namespace.Name, targetNodeName)
-					Expect(err).NotTo(HaveOccurred())
-
-					By("Verifying node labels from NodeFeature object #1 are not created")
-					// No labels should be created since the f.Namespace is not in the allowed Namespaces
-					expectedLabels := map[string]k8sLabels{}
-					eventuallyNonControlPlaneNodes(ctx, f.ClientSet).Should(MatchLabels(expectedLabels, nodes))
-
-					By("Deleting NodeFeature object")
-					err = nfdClient.NfdV1alpha1().NodeFeatures(f.Namespace.Name).Delete(ctx, nodeFeatures[0], metav1.DeleteOptions{})
-					Expect(err).NotTo(HaveOccurred())
-				})
-			})
-
-			Context("max labels, taints restrictions should be respected", func() {
-				BeforeEach(func(ctx context.Context) {
-					extraMasterPodSpecOpts = []testpod.SpecOption{
-						testpod.SpecWithConfigMap("nfd-master-conf", "/etc/kubernetes/node-feature-discovery"),
-					}
-					cm := testutils.NewConfigMap("nfd-master-conf", "nfd-master.conf", `
-enableTaints: true
-restrictions:
-  maxLabelsPerCR: 1
-  maxTaintsPerCR: 1
-`)
-					_, err := f.ClientSet.CoreV1().ConfigMaps(f.Namespace.Name).Create(ctx, cm, metav1.CreateOptions{})
-					Expect(err).NotTo(HaveOccurred())
-				})
-				It("No labels or taints should be created", func(ctx context.Context) {
-					nodes, err := getNonControlPlaneNodes(ctx, f.ClientSet)
-					Expect(err).NotTo(HaveOccurred())
-
-					targetNodeName := nodes[0].Name
-					Expect(targetNodeName).ToNot(BeEmpty(), "No suitable worker node found")
-
-					By("Creating nfd-worker config")
-					cm := testutils.NewConfigMap("nfd-worker-conf", "nfd-worker.conf", `
-core:
-  sleepInterval: "1s"
-  featureSources: ["fake"]
-  labelSources: []
-`)
-					cm, err = f.ClientSet.CoreV1().ConfigMaps(f.Namespace.Name).Create(ctx, cm, metav1.CreateOptions{})
-					Expect(err).NotTo(HaveOccurred())
-					By("Creating nfd-worker daemonset")
-					podSpecOpts := createPodSpecOpts(
-						testpod.SpecWithContainerImage(dockerImage()),
-						testpod.SpecWithConfigMap(cm.Name, "/etc/kubernetes/node-feature-discovery"),
-					)
-					workerDS := testds.NFDWorker(podSpecOpts...)
-					workerDS, err = f.ClientSet.AppsV1().DaemonSets(f.Namespace.Name).Create(ctx, workerDS, metav1.CreateOptions{})
-					Expect(err).NotTo(HaveOccurred())
-
-					By("Waiting for worker daemonset pods to be ready")
-					Expect(testpod.WaitForReady(ctx, f.ClientSet, f.Namespace.Name, workerDS.Spec.Template.Labels["name"], 2)).NotTo(HaveOccurred())
-
-					// Add features from NodeFeatureRule #3
-					By("Creating NodeFeatureRules #3")
-					Expect(testutils.CreateNodeFeatureRulesFromFile(ctx, nfdClient, "nodefeaturerule-3.yaml")).NotTo(HaveOccurred())
-
-					By("Verifying node taints and annotation from NodeFeatureRules #3")
-					expectedLabels := map[string]k8sLabels{}
-
-					expectedTaints := map[string][]corev1.Taint{}
-
-					eventuallyNonControlPlaneNodes(ctx, f.ClientSet).Should(MatchLabels(expectedLabels, nodes))
-					eventuallyNonControlPlaneNodes(ctx, f.ClientSet).Should(MatchTaints(expectedTaints, nodes))
-
-					By("Deleting NodeFeatureRule #3")
-					err = nfdClient.NfdV1alpha1().NodeFeatureRules().Delete(ctx, "e2e-test-3", metav1.DeleteOptions{})
-					Expect(err).NotTo(HaveOccurred())
-					By("Verifying taints from NodeFeatureRules #3 were removed")
-					expectedTaints["*"] = []corev1.Taint{}
-					eventuallyNonControlPlaneNodes(ctx, f.ClientSet).Should(MatchTaints(expectedTaints, nodes))
-				})
-			})
-
-			Context("max extended resources restriction should be respected", func() {
-				BeforeEach(func(ctx context.Context) {
-					extraMasterPodSpecOpts = []testpod.SpecOption{
-						testpod.SpecWithConfigMap("nfd-master-conf", "/etc/kubernetes/node-feature-discovery"),
-					}
-					cm := testutils.NewConfigMap("nfd-master-conf", "nfd-master.conf", `
-restrictions:
-  maxExtendedResourcesPerCR: 1
-`)
-					_, err := f.ClientSet.CoreV1().ConfigMaps(f.Namespace.Name).Create(ctx, cm, metav1.CreateOptions{})
-					Expect(err).NotTo(HaveOccurred())
-				})
-				It("Nothing should be created", func(ctx context.Context) {
-					nodes, err := getNonControlPlaneNodes(ctx, f.ClientSet)
-					Expect(err).NotTo(HaveOccurred())
-
-					targetNodeName := nodes[0].Name
-					Expect(targetNodeName).ToNot(BeEmpty(), "No suitable worker node found")
-
-					By("Creating nfd-worker config")
-					cm := testutils.NewConfigMap("nfd-worker-conf", "nfd-worker.conf", `
-core:
-  sleepInterval: "1s"
-  featureSources: ["fake"]
-  labelSources: []
-`)
-					cm, err = f.ClientSet.CoreV1().ConfigMaps(f.Namespace.Name).Create(ctx, cm, metav1.CreateOptions{})
-					Expect(err).NotTo(HaveOccurred())
-					By("Creating nfd-worker daemonset")
-					podSpecOpts := createPodSpecOpts(
-						testpod.SpecWithContainerImage(dockerImage()),
-						testpod.SpecWithConfigMap(cm.Name, "/etc/kubernetes/node-feature-discovery"),
-					)
-					workerDS := testds.NFDWorker(podSpecOpts...)
-					workerDS, err = f.ClientSet.AppsV1().DaemonSets(f.Namespace.Name).Create(ctx, workerDS, metav1.CreateOptions{})
-					Expect(err).NotTo(HaveOccurred())
-
-					By("Waiting for worker daemonset pods to be ready")
-					Expect(testpod.WaitForReady(ctx, f.ClientSet, f.Namespace.Name, workerDS.Spec.Template.Labels["name"], 2)).NotTo(HaveOccurred())
-
-					expectedAnnotations := map[string]k8sAnnotations{
-						"*": {},
-					}
-					expectedCapacity := map[string]corev1.ResourceList{
-						"*": {},
-					}
-
-					By("Creating NodeFeatureRules #4")
-					Expect(testutils.CreateNodeFeatureRulesFromFile(ctx, nfdClient, "nodefeaturerule-4.yaml")).NotTo(HaveOccurred())
-
-					By("Verifying node annotations from NodeFeatureRules #4")
-					eventuallyNonControlPlaneNodes(ctx, f.ClientSet).Should(MatchAnnotations(expectedAnnotations, nodes))
-
-					By("Verifying node status capacity from NodeFeatureRules #4")
-					eventuallyNonControlPlaneNodes(ctx, f.ClientSet).WithTimeout(1 * time.Minute).Should(MatchCapacity(expectedCapacity, nodes))
-
-					By("Deleting NodeFeatureRules #4")
-					err = nfdClient.NfdV1alpha1().NodeFeatureRules().Delete(ctx, "e2e-extened-resource-test", metav1.DeleteOptions{})
-					Expect(err).NotTo(HaveOccurred())
-
-					By("Deleting nfd-worker daemonset")
-					err = f.ClientSet.AppsV1().DaemonSets(f.Namespace.Name).Delete(ctx, workerDS.Name, metav1.DeleteOptions{})
-					Expect(err).NotTo(HaveOccurred())
-
-					if useNodeFeatureApi {
-						By("Verify that labels from nfd-worker are garbage-collected")
-						expectedLabels := map[string]k8sLabels{
-							"*": {},
-						}
-						eventuallyNonControlPlaneNodes(ctx, f.ClientSet).WithTimeout(1 * time.Minute).Should(MatchLabels(expectedLabels, nodes))
-					}
-				})
-			})
-
-			Context("deny node feature labels restriction should be respected", func() {
-				BeforeEach(func(ctx context.Context) {
-					extraMasterPodSpecOpts = []testpod.SpecOption{
-						testpod.SpecWithConfigMap("nfd-master-conf", "/etc/kubernetes/node-feature-discovery"),
-					}
-					cm := testutils.NewConfigMap("nfd-master-conf", "nfd-master.conf", `
-restrictions:
-  denyNodeFeatureLabels: true
-`)
-					_, err := f.ClientSet.CoreV1().ConfigMaps(f.Namespace.Name).Create(ctx, cm, metav1.CreateOptions{})
-					Expect(err).NotTo(HaveOccurred())
-				})
-				It("No labels should be created", func(ctx context.Context) {
-					// deploy node feature object
-					if !useNodeFeatureApi {
-						Skip("NodeFeature API not enabled")
-					}
-
-					nodes, err := getNonControlPlaneNodes(ctx, f.ClientSet)
-					Expect(err).NotTo(HaveOccurred())
-
-					targetNodeName := nodes[0].Name
-					Expect(targetNodeName).ToNot(BeEmpty(), "No suitable worker node found")
-
-					// Apply Node Feature object
-					By("Creating NodeFeature object")
-					nodeFeatures, err := testutils.CreateOrUpdateNodeFeaturesFromFile(ctx, nfdClient, "nodefeature-1.yaml", f.Namespace.Name, targetNodeName)
-					Expect(err).NotTo(HaveOccurred())
-
-					By("Verifying node labels from NodeFeature object #1 are not created")
-
-					expectedLabels := map[string]k8sLabels{
-						"*": {},
-					}
-					eventuallyNonControlPlaneNodes(ctx, f.ClientSet).Should(MatchLabels(expectedLabels, nodes))
-
-					By("Deleting NodeFeature object")
-					err = nfdClient.NfdV1alpha1().NodeFeatures(f.Namespace.Name).Delete(ctx, nodeFeatures[0], metav1.DeleteOptions{})
-					Expect(err).NotTo(HaveOccurred())
-				})
-			})
 		})
 
 		// Test NodeFeatureGroups
@@ -1239,6 +1017,282 @@ resyncPeriod: "1s"
 				Expect(err).NotTo(HaveOccurred())
 			})
 		})
+
+		Context("selected namespaces restriction is respected or not", Label("restrictions"), func() {
+			BeforeEach(func(ctx context.Context) {
+				extraMasterPodSpecOpts = []testpod.SpecOption{
+					testpod.SpecWithConfigMap("nfd-master-conf", "/etc/kubernetes/node-feature-discovery"),
+				}
+				cm := testutils.NewConfigMap("nfd-master-conf", "nfd-master.conf", `
+restrictions:
+  nodeFeatureNamespaceSelector:
+    matchLabels:
+      e2etest: fake
+
+resyncPeriod: "1s"
+`)
+				_, err := f.ClientSet.CoreV1().ConfigMaps(f.Namespace.Name).Create(ctx, cm, metav1.CreateOptions{})
+				Expect(err).NotTo(HaveOccurred())
+			})
+			It("Nothing should be created", func(ctx context.Context) {
+				// deploy node feature object
+				nodes, err := getNonControlPlaneNodes(ctx, f.ClientSet)
+				Expect(err).NotTo(HaveOccurred())
+
+				targetNodeName := nodes[0].Name
+				Expect(targetNodeName).ToNot(BeEmpty(), "No suitable worker node found")
+
+				// label the namespace in which node feature object is created
+				// TODO(TessaIO): add a utility for this.
+				patches, err := json.Marshal(
+					[]utils.JsonPatch{
+						utils.NewJsonPatch(
+							"add",
+							"/metadata/labels",
+							"e2etest",
+							"fake",
+						),
+					},
+				)
+				Expect(err).NotTo(HaveOccurred())
+
+				_, err = f.ClientSet.CoreV1().Namespaces().Patch(ctx, f.Namespace.Name, types.JSONPatchType, patches, metav1.PatchOptions{})
+				Expect(err).NotTo(HaveOccurred())
+
+				// Apply Node Feature object
+				By("Creating NodeFeature object")
+				nodeFeatures, err := testutils.CreateOrUpdateNodeFeaturesFromFile(ctx, nfdClient, "nodefeature-1.yaml", f.Namespace.Name, targetNodeName)
+				Expect(err).NotTo(HaveOccurred())
+
+				By("Verifying node labels from NodeFeature object #1 are created")
+				// No labels should be created since the f.Namespace is not in the selected Namespaces
+				expectedLabels := map[string]k8sLabels{
+					targetNodeName: {
+						nfdv1alpha1.FeatureLabelNs + "/e2e-nodefeature-test-1": "obj-1",
+						nfdv1alpha1.FeatureLabelNs + "/e2e-nodefeature-test-2": "obj-1",
+						nfdv1alpha1.FeatureLabelNs + "/fake-fakefeature3":      "overridden",
+					},
+				}
+				eventuallyNonControlPlaneNodes(ctx, f.ClientSet).Should(MatchLabels(expectedLabels, nodes))
+
+				// remove label the namespace in which node feature object is created
+				patches, err = json.Marshal(
+					[]utils.JsonPatch{
+						utils.NewJsonPatch(
+							"remove",
+							"/metadata/labels",
+							"e2etest",
+							"fake",
+						),
+					},
+				)
+				Expect(err).NotTo(HaveOccurred())
+
+				_, err = f.ClientSet.CoreV1().Namespaces().Patch(ctx, f.Namespace.Name, types.JSONPatchType, patches, metav1.PatchOptions{})
+				Expect(err).NotTo(HaveOccurred())
+				By("Verifying node labels from NodeFeature object #1 are not created")
+				// No labels should be created since the f.Namespace is not in the selected Namespaces
+				expectedLabels = map[string]k8sLabels{
+					targetNodeName: {},
+				}
+				eventuallyNonControlPlaneNodes(ctx, f.ClientSet).Should(MatchLabels(expectedLabels, nodes))
+
+				By("Deleting NodeFeature object")
+				err = nfdClient.NfdV1alpha1().NodeFeatures(f.Namespace.Name).Delete(ctx, nodeFeatures[0], metav1.DeleteOptions{})
+				Expect(err).NotTo(HaveOccurred())
+			})
+		})
+
+		Context("disable labels restrictions should be respected", Label("restrictions"), func() {
+			BeforeEach(func(ctx context.Context) {
+				extraMasterPodSpecOpts = []testpod.SpecOption{
+					testpod.SpecWithConfigMap("nfd-master-conf", "/etc/kubernetes/node-feature-discovery"),
+					testpod.SpecWithContainerExtraArgs("-enable-taints"),
+				}
+				cm := testutils.NewConfigMap("nfd-master-conf", "nfd-master.conf", `
+restrictions:
+  disableLabels: true
+`)
+				_, err := f.ClientSet.CoreV1().ConfigMaps(f.Namespace.Name).Create(ctx, cm, metav1.CreateOptions{})
+				Expect(err).NotTo(HaveOccurred())
+			})
+			It("No labels should be created", func(ctx context.Context) {
+				// deploy node feature object
+				nodes, err := getNonControlPlaneNodes(ctx, f.ClientSet)
+				Expect(err).NotTo(HaveOccurred())
+
+				// Add features from NodeFeatureRule #6
+				By("Creating NodeFeatureRules #6")
+				Expect(testutils.CreateNodeFeatureRulesFromFile(ctx, nfdClient, "nodefeaturerule-6.yaml")).NotTo(HaveOccurred())
+
+				By("Verifying node taints, annotations, ERs and labels from NodeFeatureRules #6")
+				expectedTaints := map[string][]corev1.Taint{
+					"*": {
+						{
+							Key:    "feature.node.kubernetes.io/fake-special-cpu",
+							Value:  "true",
+							Effect: "PreferNoSchedule",
+						},
+					},
+				}
+				eventuallyNonControlPlaneNodes(ctx, f.ClientSet).Should(MatchTaints(expectedTaints, nodes))
+
+				expectedAnnotations := map[string]k8sAnnotations{
+					"*": {
+						"e2e.feature.node.kubernetes.io/restricted-annoation-1": "yes",
+						"nfd.node.kubernetes.io/feature-annotations":            "e2e.feature.node.kubernetes.io/restricted-annoation-1",
+						"nfd.node.kubernetes.io/extended-resources":             "e2e.feature.node.kubernetes.io/restricted-er-1",
+						"nfd.node.kubernetes.io/taints":                         "feature.node.kubernetes.io/fake-special-cpu=true:PreferNoSchedule",
+					},
+				}
+				eventuallyNonControlPlaneNodes(ctx, f.ClientSet).Should(MatchAnnotations(expectedAnnotations, nodes))
+
+				expectedCapacity := map[string]corev1.ResourceList{
+					"*": {
+						"e2e.feature.node.kubernetes.io/restricted-er-1": resourcev1.MustParse("2"),
+					},
+				}
+				eventuallyNonControlPlaneNodes(ctx, f.ClientSet).WithTimeout(1 * time.Minute).Should(MatchCapacity(expectedCapacity, nodes))
+
+				expectedLabels := map[string]k8sLabels{
+					"*": {},
+				}
+				eventuallyNonControlPlaneNodes(ctx, f.ClientSet).Should(MatchLabels(expectedLabels, nodes))
+
+				By("Deleting NodeFeatureRule #6")
+				err = nfdClient.NfdV1alpha1().NodeFeatureRules().Delete(ctx, "e2e-test-6", metav1.DeleteOptions{})
+				Expect(err).NotTo(HaveOccurred())
+			})
+		})
+
+		Context("disable extended resources restriction should be respected", Label("restrictions"), func() {
+			BeforeEach(func(ctx context.Context) {
+				extraMasterPodSpecOpts = []testpod.SpecOption{
+					testpod.SpecWithConfigMap("nfd-master-conf", "/etc/kubernetes/node-feature-discovery"),
+				}
+				cm := testutils.NewConfigMap("nfd-master-conf", "nfd-master.conf", `
+restrictions:
+  disableExtendedResources: true
+`)
+				_, err := f.ClientSet.CoreV1().ConfigMaps(f.Namespace.Name).Create(ctx, cm, metav1.CreateOptions{})
+				Expect(err).NotTo(HaveOccurred())
+			})
+			It("Extended resources should not be created and Labels should be created", func(ctx context.Context) {
+				// deploy node feature object
+				nodes, err := getNonControlPlaneNodes(ctx, f.ClientSet)
+				Expect(err).NotTo(HaveOccurred())
+
+				targetNodeName := nodes[0].Name
+				Expect(targetNodeName).ToNot(BeEmpty(), "No suitable worker node found")
+
+				expectedAnnotations := map[string]k8sAnnotations{
+					"*": {
+						"e2e.feature.node.kubernetes.io/restricted-annoation-1": "yes",
+						"nfd.node.kubernetes.io/feature-annotations":            "e2e.feature.node.kubernetes.io/restricted-annoation-1",
+						"nfd.node.kubernetes.io/feature-labels":                 "e2e.feature.node.kubernetes.io/restricted-label-1",
+					},
+				}
+				expectedCapacity := map[string]corev1.ResourceList{
+					"*": {},
+				}
+
+				expectedLabels := map[string]k8sLabels{
+					"*": {
+						"e2e.feature.node.kubernetes.io/restricted-label-1": "true",
+					},
+				}
+
+				By("Creating NodeFeatureRules #6")
+				Expect(testutils.CreateNodeFeatureRulesFromFile(ctx, nfdClient, "nodefeaturerule-6.yaml")).NotTo(HaveOccurred())
+
+				By("Verifying node labels from NodeFeatureRules #6")
+				eventuallyNonControlPlaneNodes(ctx, f.ClientSet).Should(MatchLabels(expectedLabels, nodes))
+
+				By("Verifying node annotations from NodeFeatureRules #6")
+				eventuallyNonControlPlaneNodes(ctx, f.ClientSet).Should(MatchAnnotations(expectedAnnotations, nodes))
+
+				By("Verifying node status capacity from NodeFeatureRules #6")
+				eventuallyNonControlPlaneNodes(ctx, f.ClientSet).WithTimeout(1 * time.Minute).Should(MatchCapacity(expectedCapacity, nodes))
+
+				By("Deleting NodeFeatureRules #6")
+				err = nfdClient.NfdV1alpha1().NodeFeatureRules().Delete(ctx, "e2e-test-6", metav1.DeleteOptions{})
+				Expect(err).NotTo(HaveOccurred())
+
+				By("Verify that labels from nfd-worker are garbage-collected")
+				expectedLabels = map[string]k8sLabels{
+					"*": {},
+				}
+				eventuallyNonControlPlaneNodes(ctx, f.ClientSet).WithTimeout(1 * time.Minute).Should(MatchLabels(expectedLabels, nodes))
+			})
+		})
+
+		Context("deny node feature labels restriction should be respected", Label("restrictions"), func() {
+			BeforeEach(func(ctx context.Context) {
+				extraMasterPodSpecOpts = []testpod.SpecOption{
+					testpod.SpecWithConfigMap("nfd-master-conf", "/etc/kubernetes/node-feature-discovery"),
+				}
+				cm := testutils.NewConfigMap("nfd-master-conf", "nfd-master.conf", `
+restrictions:
+  denyNodeFeatureLabels: true
+`)
+				_, err := f.ClientSet.CoreV1().ConfigMaps(f.Namespace.Name).Create(ctx, cm, metav1.CreateOptions{})
+				Expect(err).NotTo(HaveOccurred())
+			})
+			It("No feature labels should be created", func(ctx context.Context) {
+				// deploy node feature object
+				nodes, err := getNonControlPlaneNodes(ctx, f.ClientSet)
+				Expect(err).NotTo(HaveOccurred())
+
+				targetNodeName := nodes[0].Name
+				Expect(targetNodeName).ToNot(BeEmpty(), "No suitable worker node found")
+
+				// Apply Node Feature object
+				By("Creating NodeFeature object")
+				nodeFeatures, err := testutils.CreateOrUpdateNodeFeaturesFromFile(ctx, nfdClient, "nodefeature-1.yaml", f.Namespace.Name, targetNodeName)
+				Expect(err).NotTo(HaveOccurred())
+
+				// Add features from NodeFeatureRule #6
+				By("Creating NodeFeatureRules #6")
+				Expect(testutils.CreateNodeFeatureRulesFromFile(ctx, nfdClient, "nodefeaturerule-6.yaml")).NotTo(HaveOccurred())
+
+				By("Verifying node taints and labels from NodeFeatureRules #6")
+				expectedTaints := map[string][]corev1.Taint{
+					"*": {},
+				}
+				eventuallyNonControlPlaneNodes(ctx, f.ClientSet).Should(MatchTaints(expectedTaints, nodes))
+
+				expectedAnnotations := map[string]k8sAnnotations{
+					"*": {
+						"e2e.feature.node.kubernetes.io/restricted-annoation-1": "yes",
+						"nfd.node.kubernetes.io/feature-annotations":            "e2e.feature.node.kubernetes.io/restricted-annoation-1",
+						"nfd.node.kubernetes.io/extended-resources":             "e2e.feature.node.kubernetes.io/restricted-er-1",
+						"nfd.node.kubernetes.io/feature-labels":                 "e2e.feature.node.kubernetes.io/restricted-label-1",
+					},
+				}
+				eventuallyNonControlPlaneNodes(ctx, f.ClientSet).Should(MatchAnnotations(expectedAnnotations, nodes))
+
+				expectedCapacity := map[string]corev1.ResourceList{
+					"*": {
+						"e2e.feature.node.kubernetes.io/restricted-er-1": resourcev1.MustParse("2"),
+					},
+				}
+				eventuallyNonControlPlaneNodes(ctx, f.ClientSet).WithTimeout(1 * time.Minute).Should(MatchCapacity(expectedCapacity, nodes))
+
+				// TODO(TessaIO): we need one more test where we deploy nfd-worker that would create
+				// a non 3rd-party NF that shouldn't be ignored by this restriction
+				By("Verifying node labels from NodeFeature object #6 are not created")
+				expectedLabels := map[string]k8sLabels{
+					"*": {
+						"e2e.feature.node.kubernetes.io/restricted-label-1": "true",
+					},
+				}
+				eventuallyNonControlPlaneNodes(ctx, f.ClientSet).Should(MatchLabels(expectedLabels, nodes))
+
+				By("Deleting NodeFeature object")
+				err = nfdClient.NfdV1alpha1().NodeFeatures(f.Namespace.Name).Delete(ctx, nodeFeatures[0], metav1.DeleteOptions{})
+				Expect(err).NotTo(HaveOccurred())
+			})
+		})
 	})
 })
 
diff --git a/test/e2e/utils/rbac.go b/test/e2e/utils/rbac.go
index 67470e331..5e57fe4ec 100644
--- a/test/e2e/utils/rbac.go
+++ b/test/e2e/utils/rbac.go
@@ -176,6 +176,11 @@ func createClusterRoleMaster(ctx context.Context, cs clientset.Interface) (*rbac
 			Name: "nfd-master-e2e",
 		},
 		Rules: []rbacv1.PolicyRule{
+			{
+				APIGroups: []string{""},
+				Resources: []string{"namespaces"},
+				Verbs:     []string{"list", "watch"},
+			},
 			{
 				APIGroups: []string{""},
 				Resources: []string{"nodes", "nodes/status"},