diff --git a/internal/operator-controller/applier/helm_test.go b/internal/operator-controller/applier/helm_test.go
index 21fbdb4a4..faaa41783 100644
--- a/internal/operator-controller/applier/helm_test.go
+++ b/internal/operator-controller/applier/helm_test.go
@@ -447,7 +447,7 @@ func TestApply_Upgrade(t *testing.T) {
 func TestApply_InstallationWithSingleOwnNamespaceInstallSupportEnabled(t *testing.T) {
 	featuregatetesting.SetFeatureGateDuringTest(t, features.OperatorControllerFeatureGate, features.SingleOwnNamespaceInstallSupport, true)
 
-	t.Run("generates bundle resources in SingleNamespace install mode when watch namespace is configured", func(t *testing.T) {
+	t.Run("generates bundle resources using the configured watch namespace", func(t *testing.T) {
 		var expectedWatchNamespace = "watch-namespace"
 
 		helmApplier := applier.Helm{
@@ -464,7 +464,7 @@ func TestApply_InstallationWithSingleOwnNamespaceInstallSupportEnabled(t *testin
 			},
 		}
 
-		testExt := &v1.ClusterExtension{
+		testExt := &ocv1.ClusterExtension{
 			ObjectMeta: metav1.ObjectMeta{
 				Name: "testExt",
 				Annotations: map[string]string{
diff --git a/internal/operator-controller/applier/watchnamespace_test.go b/internal/operator-controller/applier/watchnamespace_test.go
index 6f6e341e8..90e018dc7 100644
--- a/internal/operator-controller/applier/watchnamespace_test.go
+++ b/internal/operator-controller/applier/watchnamespace_test.go
@@ -13,6 +13,21 @@ import (
 	"github.com/operator-framework/operator-controller/internal/operator-controller/features"
 )
 
+func TestGetWatchNamespacesWhenFeatureGateIsDisabled(t *testing.T) {
+	watchNamespace, err := applier.GetWatchNamespace(&v1.ClusterExtension{
+		ObjectMeta: metav1.ObjectMeta{
+			Name: "extension",
+			Annotations: map[string]string{
+				"olm.operatorframework.io/watch-namespace": "watch-namespace",
+			},
+		},
+		Spec: v1.ClusterExtensionSpec{},
+	})
+	require.NoError(t, err)
+	t.Log("Check watchNamespace is '' even if the annotation is set")
+	require.Equal(t, corev1.NamespaceAll, watchNamespace)
+}
+
 func TestGetWatchNamespace(t *testing.T) {
 	featuregatetesting.SetFeatureGateDuringTest(t, features.OperatorControllerFeatureGate, features.SingleOwnNamespaceInstallSupport, true)
 
diff --git a/internal/operator-controller/rukpak/convert/registryv1_test.go b/internal/operator-controller/rukpak/convert/registryv1_test.go
index a79e4624f..20ea7fc88 100644
--- a/internal/operator-controller/rukpak/convert/registryv1_test.go
+++ b/internal/operator-controller/rukpak/convert/registryv1_test.go
@@ -379,81 +379,102 @@ func TestRegistryV1SuiteGenerateOwnNamespace(t *testing.T) {
 	require.Equal(t, strings.Join(watchNamespaces, ","), dep.(*appsv1.Deployment).Spec.Template.Annotations[olmNamespaces])
 }
 
-func TestRegistryV1SuiteGenerateErrorMultiNamespaceEmpty(t *testing.T) {
-	t.Log("RegistryV1 Suite Convert")
-	t.Log("It should generate objects successfully based on target namespaces")
-
-	t.Log("It should error when multinamespace mode is supported with an empty string in target namespaces")
-	baseCSV, svc := getBaseCsvAndService()
-	csv := baseCSV.DeepCopy()
-	csv.Spec.InstallModes = []v1alpha1.InstallMode{{Type: v1alpha1.InstallModeTypeMultiNamespace, Supported: true}}
-
-	t.Log("By creating a registry v1 bundle")
-	watchNamespaces := []string{"testWatchNs1", ""}
-	unstructuredSvc := convertToUnstructured(t, svc)
-	registryv1Bundle := convert.RegistryV1{
-		PackageName: "testPkg",
-		CSV:         *csv,
-		Others:      []unstructured.Unstructured{unstructuredSvc},
-	}
-
-	t.Log("By converting to plain")
-	plainBundle, err := convert.Convert(registryv1Bundle, installNamespace, watchNamespaces)
-	require.Error(t, err)
-	require.Nil(t, plainBundle)
-}
-
-func TestRegistryV1SuiteGenerateErrorSingleNamespaceDisabled(t *testing.T) {
-	t.Log("RegistryV1 Suite Convert")
-	t.Log("It should generate objects successfully based on target namespaces")
-
-	t.Log("It should error when single namespace mode is disabled with more than one target namespaces")
-	baseCSV, svc := getBaseCsvAndService()
-	csv := baseCSV.DeepCopy()
-	csv.Spec.InstallModes = []v1alpha1.InstallMode{{Type: v1alpha1.InstallModeTypeSingleNamespace, Supported: false}}
-
-	t.Log("By creating a registry v1 bundle")
-	watchNamespaces := []string{"testWatchNs1", "testWatchNs2"}
-	unstructuredSvc := convertToUnstructured(t, svc)
-	registryv1Bundle := convert.RegistryV1{
-		PackageName: "testPkg",
-		CSV:         *csv,
-		Others:      []unstructured.Unstructured{unstructuredSvc},
-	}
-
-	t.Log("By converting to plain")
-	plainBundle, err := convert.Convert(registryv1Bundle, installNamespace, watchNamespaces)
-	require.Error(t, err)
-	require.Nil(t, plainBundle)
-}
-
-func TestRegistryV1SuiteGenerateErrorAllNamespaceDisabled(t *testing.T) {
-	t.Log("RegistryV1 Suite Convert")
-	t.Log("It should generate objects successfully based on target namespaces")
-
-	t.Log("It should error when all namespace mode is disabled with target namespace containing an empty string")
-	baseCSV, svc := getBaseCsvAndService()
-	csv := baseCSV.DeepCopy()
-	csv.Spec.InstallModes = []v1alpha1.InstallMode{
-		{Type: v1alpha1.InstallModeTypeAllNamespaces, Supported: false},
-		{Type: v1alpha1.InstallModeTypeOwnNamespace, Supported: true},
-		{Type: v1alpha1.InstallModeTypeSingleNamespace, Supported: true},
-		{Type: v1alpha1.InstallModeTypeMultiNamespace, Supported: true},
-	}
+func TestConvertInstallModeValidation(t *testing.T) {
+	for _, tc := range []struct {
+		description      string
+		installModes     []v1alpha1.InstallMode
+		installNamespace string
+		watchNamespaces  []string
+	}{
+		{
+			description:      "fails on AllNamespaces install mode when CSV does not support it",
+			installNamespace: "install-namespace",
+			watchNamespaces:  []string{corev1.NamespaceAll},
+			installModes: []v1alpha1.InstallMode{
+				{Type: v1alpha1.InstallModeTypeAllNamespaces, Supported: false},
+				{Type: v1alpha1.InstallModeTypeOwnNamespace, Supported: true},
+				{Type: v1alpha1.InstallModeTypeSingleNamespace, Supported: true},
+				{Type: v1alpha1.InstallModeTypeMultiNamespace, Supported: true},
+			},
+		}, {
+			description:      "fails on SingleNamespace install mode when CSV does not support it",
+			installNamespace: "install-namespace",
+			watchNamespaces:  []string{"watch-namespace"},
+			installModes: []v1alpha1.InstallMode{
+				{Type: v1alpha1.InstallModeTypeAllNamespaces, Supported: true},
+				{Type: v1alpha1.InstallModeTypeOwnNamespace, Supported: true},
+				{Type: v1alpha1.InstallModeTypeSingleNamespace, Supported: false},
+				{Type: v1alpha1.InstallModeTypeMultiNamespace, Supported: true},
+			},
+		}, {
+			description:      "fails on OwnNamespace install mode when CSV does not support it and watch namespace is not install namespace",
+			installNamespace: "install-namespace",
+			watchNamespaces:  []string{"watch-namespace"},
+			installModes: []v1alpha1.InstallMode{
+				{Type: v1alpha1.InstallModeTypeAllNamespaces, Supported: true},
+				{Type: v1alpha1.InstallModeTypeOwnNamespace, Supported: true},
+				{Type: v1alpha1.InstallModeTypeSingleNamespace, Supported: false},
+				{Type: v1alpha1.InstallModeTypeMultiNamespace, Supported: true},
+			},
+		}, {
+			description:      "fails on MultiNamespace install mode when CSV does not support it",
+			installNamespace: "install-namespace",
+			watchNamespaces:  []string{"watch-namespace-one", "watch-namespace-two", "watch-namespace-three"},
+			installModes: []v1alpha1.InstallMode{
+				{Type: v1alpha1.InstallModeTypeAllNamespaces, Supported: true},
+				{Type: v1alpha1.InstallModeTypeOwnNamespace, Supported: true},
+				{Type: v1alpha1.InstallModeTypeSingleNamespace, Supported: true},
+				{Type: v1alpha1.InstallModeTypeMultiNamespace, Supported: false},
+			},
+		}, {
+			description:      "fails on MultiNamespace install mode when CSV supports it but watchNamespaces is empty",
+			installNamespace: "install-namespace",
+			watchNamespaces:  []string{},
+			installModes: []v1alpha1.InstallMode{
+				// because install mode is inferred by the watchNamespaces parameter
+				// force MultiNamespace install by disabling other modes
+				{Type: v1alpha1.InstallModeTypeAllNamespaces, Supported: false},
+				{Type: v1alpha1.InstallModeTypeOwnNamespace, Supported: false},
+				{Type: v1alpha1.InstallModeTypeSingleNamespace, Supported: false},
+				{Type: v1alpha1.InstallModeTypeMultiNamespace, Supported: true},
+			},
+		}, {
+			description:      "fails on MultiNamespace install mode when CSV supports it but watchNamespaces is nil",
+			installNamespace: "install-namespace",
+			watchNamespaces:  nil,
+			installModes: []v1alpha1.InstallMode{
+				// because install mode is inferred by the watchNamespaces parameter
+				// force MultiNamespace install by disabling other modes
+				{Type: v1alpha1.InstallModeTypeAllNamespaces, Supported: false},
+				{Type: v1alpha1.InstallModeTypeOwnNamespace, Supported: false},
+				{Type: v1alpha1.InstallModeTypeSingleNamespace, Supported: false},
+				{Type: v1alpha1.InstallModeTypeMultiNamespace, Supported: true},
+			},
+		},
+	} {
+		t.Run(tc.description, func(t *testing.T) {
+			t.Log("RegistryV1 Suite Convert")
+			t.Log("It should generate objects successfully based on target namespaces")
+
+			t.Log("It should error when all namespace mode is disabled with target namespace containing an empty string")
+			baseCSV, svc := getBaseCsvAndService()
+			csv := baseCSV.DeepCopy()
+			csv.Spec.InstallModes = tc.installModes
+
+			t.Log("By creating a registry v1 bundle")
+			unstructuredSvc := convertToUnstructured(t, svc)
+			registryv1Bundle := convert.RegistryV1{
+				PackageName: "testPkg",
+				CSV:         *csv,
+				Others:      []unstructured.Unstructured{unstructuredSvc},
+			}
 
-	t.Log("By creating a registry v1 bundle")
-	watchNamespaces := []string{""}
-	unstructuredSvc := convertToUnstructured(t, svc)
-	registryv1Bundle := convert.RegistryV1{
-		PackageName: "testPkg",
-		CSV:         *csv,
-		Others:      []unstructured.Unstructured{unstructuredSvc},
+			t.Log("By converting to plain")
+			plainBundle, err := convert.Convert(registryv1Bundle, tc.installNamespace, tc.watchNamespaces)
+			require.Error(t, err)
+			require.Nil(t, plainBundle)
+		})
 	}
-
-	t.Log("By converting to plain")
-	plainBundle, err := convert.Convert(registryv1Bundle, installNamespace, watchNamespaces)
-	require.Error(t, err)
-	require.Nil(t, plainBundle)
 }
 
 func TestRegistryV1SuiteReadBundleFileSystem(t *testing.T) {