diff --git a/controllers/operatorpolicy_controller.go b/controllers/operatorpolicy_controller.go
index 90f687a9..95061c5d 100644
--- a/controllers/operatorpolicy_controller.go
+++ b/controllers/operatorpolicy_controller.go
@@ -617,7 +617,7 @@ func (r *OperatorPolicyReconciler) musthaveOpGroup(
 			earlyConds = append(earlyConds, calculateComplianceCondition(policy))
 		}
 
-		err := r.Create(ctx, desiredOpGroup)
+		err := r.createWithNamespace(ctx, policy, desiredOpGroup)
 		if err != nil {
 			return nil, changed, fmt.Errorf("error creating the OperatorGroup: %w", err)
 		}
@@ -719,6 +719,44 @@ func (r *OperatorPolicyReconciler) musthaveOpGroup(
 	}
 }
 
+// createWithNamespace will create the input object and the object's namespace if needed.
+func (r *OperatorPolicyReconciler) createWithNamespace(
+	ctx context.Context, policy *policyv1beta1.OperatorPolicy, object client.Object,
+) error {
+	err := r.Create(ctx, object)
+	if err == nil {
+		return nil
+	}
+
+	// If the error is not due to a missing namespace or the namespace is not set on the object, return the error.
+	if !isNamespaceNotFound(err) || object.GetNamespace() == "" {
+		return err
+	}
+
+	log.Info("Creating the namespace since it didn't exist", "name", object.GetNamespace(), "policy", policy.Name)
+
+	ns := corev1.Namespace{
+		ObjectMeta: metav1.ObjectMeta{
+			Name: object.GetNamespace(),
+		},
+	}
+
+	err = r.Create(ctx, &ns)
+	if err != nil && !k8serrors.IsAlreadyExists(err) {
+		return err
+	}
+
+	// Try creating the object again now that the namespace was created.
+	return r.Create(ctx, object)
+}
+
+// isNamespaceNotFound detects if the input error from r.Create failed due to the specified namespace not existing.
+func isNamespaceNotFound(err error) bool {
+	statusErr := &k8serrors.StatusError{}
+
+	return k8serrors.IsNotFound(err) && errors.As(err, &statusErr) && statusErr.Status().Details.Kind == "namespaces"
+}
+
 func (r *OperatorPolicyReconciler) mustnothaveOpGroup(
 	ctx context.Context,
 	policy *policyv1beta1.OperatorPolicy,
@@ -863,7 +901,7 @@ func (r *OperatorPolicyReconciler) musthaveSubscription(
 			earlyConds = append(earlyConds, calculateComplianceCondition(policy))
 		}
 
-		err := r.Create(ctx, desiredSub)
+		err := r.createWithNamespace(ctx, policy, desiredSub)
 		if err != nil {
 			return nil, nil, changed, fmt.Errorf("error creating the Subscription: %w", err)
 		}
diff --git a/test/e2e/case38_install_operator_test.go b/test/e2e/case38_install_operator_test.go
index 559f16cf..65bb33ad 100644
--- a/test/e2e/case38_install_operator_test.go
+++ b/test/e2e/case38_install_operator_test.go
@@ -354,6 +354,39 @@ var _ = Describe("Testing OperatorPolicy", Ordered, func() {
 			)
 		})
 	})
+
+	Describe("Testing namespace creation", Ordered, func() {
+		const (
+			opPolYAML = "../resources/case38_operator_install/operator-policy-no-group-enforce.yaml"
+			opPolName = "oppol-no-group-enforce"
+		)
+		BeforeAll(func() {
+			DeferCleanup(func() {
+				utils.Kubectl(
+					"delete", "-f", parentPolicyYAML, "-n", testNamespace, "--ignore-not-found", "--cascade=foreground",
+				)
+				utils.Kubectl("delete", "ns", opPolTestNS, "--ignore-not-found")
+			})
+
+			createObjWithParent(
+				parentPolicyYAML, parentPolicyName, opPolYAML, testNamespace, gvrPolicy, gvrOperatorPolicy,
+			)
+		})
+
+		It("Should be compliant when enforced", func() {
+			By("Waiting for the operator policy " + opPolName + " to be compliant")
+			Eventually(func() string {
+				opPolicy := utils.GetWithTimeout(
+					clientManagedDynamic, gvrOperatorPolicy, opPolName, testNamespace, true, defaultTimeoutSeconds,
+				)
+
+				compliance, _, _ := unstructured.NestedString(opPolicy.Object, "status", "compliant")
+
+				return compliance
+			}, defaultTimeoutSeconds*2, 1).Should(Equal("Compliant"))
+		})
+	})
+
 	Describe("Testing OperatorGroup behavior when it is specified in the policy", Ordered, func() {
 		const (
 			opPolYAML            = "../resources/case38_operator_install/operator-policy-with-group.yaml"