diff --git a/proposals/kapp-controller/004-registryV1-bundle-support/README.md b/proposals/kapp-controller/004-registryV1-bundle-support/README.md
new file mode 100644
index 000000000..ca4b8cda4
--- /dev/null
+++ b/proposals/kapp-controller/004-registryV1-bundle-support/README.md
@@ -0,0 +1,79 @@
+---
+title: "Adding support to handle OLM registryV1 bundles"
+authors: [ "Varsha Prasad Narsing <varshaprasad96@gmail.com>" ]
+status: "in review"
+approvers: [ <TBD_Carvel Maintainers> ]
+---
+
+# Adding support to handle OLM registryV1 bundles
+
+## Problem Statement
+
+[Operator Lifecycle Manager][olm_doc] (OLM) is a tool that helps manage the lifecycle of operators. Some key aspects of the tool are: catalog management, installation, upgrade, dependency resolution, content discovery. It currently uses a custom packaging format called `registry+v1`. This is an OCI image with a particular directory structure, more details on which can be found [here][olm_manifest_format]. A subset of operator packages available in `registry+v1` format can be found at https://operatorhub.io/.
+
+Kapp-controller currently does not support installing packages following OLM's `registry+v1` format. Adding support for it, will enable kapp-controller to install and manage contents of the operators that are available in the OLM supported format. 
+
+## Proposal
+
+### Goals and Non-goals
+
+### Goals
+
+1. Enable operators packaged for OLM to be installed (and reconciled) by kapp-controller through `App` CR. 
+
+### Non-Goals
+
+This proposal does not discuss:
+1. The intention behind `registry+v1` packaging structure. 
+2. The contents of operator bundle which the kapp-controller will install when this feature is available. 
+
+### Specification
+
+We intend to add support for the `registry+v1` format during the templating step by modifying the `App` API's spec. On introducing this, the overall process would look like:
+
+1. Consume the contents of App's `spec.fetch.image` which could point to a `registry+v1` image.
+
+2. Process the `registry+v1` bundle with the help of specific fields introduced in App's `spec.template` section.
+
+The API definition would look like:
+
+```go
+// +k8s:openapi-gen=true
+type AppTemplate struct {
+    OLMRegistry *AppTemplateOLMRegistry `json:"olmRegistry,omitempty"`
+}
+
+type AppTemplateOLMRegistry struct {
+	// BundleRoot is the path to bundle root within the source directory.
+	// Default is the source directory root (optional).
+	BundleRoot string `json:"bundleRoot,omitempty" protobuf:"bytes,1,opt,name=bundleRoot"`
+	
+    // TargetNamespaces is the list of namespaces that the bundle will be configured to target.
+	// If the bundle supports AllNamespaces mode, default is all namespaces. Otherwise, if the
+	// bundle supports OwnNamespaces mode, it will default to install namespace. If the bundle supports neither
+	// AllNamespaces nor OwnNamespace, TargetNamespaces must be specified.
+	TargetNamespaces []string `json:"targetNamespaces,omitempty" protobuf:"bytes,2,opt,name=targetNamespaces"`
+}
+```
+
+With the help of the following inputs, kapp-controller can then convert the registry+v1 contents into a set of plain kubernetes manifests. 
+
+### Templating overview:
+
+At a high level, a `registry+v1` package contains:
+1. Cluster Service Version (CSV) - A yaml that represents a particular version of a running kubernetes operator on a cluster. It includes metaqdata such as name, description, version, repository link, labels, icon etc.
+2. `annotations.yaml` - Contains operator metadata information as labels that are used to annotate the `registry+v1` image. More details can be found [here][bundle_contents]. 
+3. Dockerfile - Used to build an image for the bundle. 
+4. CRDs relevant to the Operator.
+
+With the help of the metadata provided in `CSV` and `annotations.yaml`, a set of plain kubernetes manifests can be generated and provided to the `kapp` deployer to apply them onto the cluster. 
+
+## Open Questions
+
+1. Are there any unintended consequences of introducing these API changes to other components of kapp-controller?
+
+
+[olm_manifest_format]: https://github.com/operator-framework/operator-registry#manifest-format
+[olm_doc]: https://olm.operatorframework.io
+[bundle_contents]: https://olm.operatorframework.io/docs/tasks/creating-operator-bundle/#contents-of-annotationsyaml-and-the-dockerfile
+