diff --git a/controllers/templatesync/template_sync.go b/controllers/templatesync/template_sync.go
index e630de40..c3b0d258 100644
--- a/controllers/templatesync/template_sync.go
+++ b/controllers/templatesync/template_sync.go
@@ -1222,7 +1222,11 @@ func overrideRemediationAction(instance *policiesv1.Policy, tObjectUnstructured
 		if spec, ok := tObjectUnstructured.Object["spec"]; ok {
 			specObject, ok := spec.(map[string]interface{})
 			if ok {
-				specObject["remediationAction"] = string(instance.Spec.RemediationAction)
+				if strings.EqualFold(specObject["remediationAction"].(string), "informonly") {
+					specObject["remediationAction"] = strings.ToLower(string(policiesv1.Inform))
+				} else {
+					specObject["remediationAction"] = string(instance.Spec.RemediationAction)
+				}
 			}
 		}
 	}
diff --git a/test/e2e/case20_informonly_test.go b/test/e2e/case20_informonly_test.go
new file mode 100644
index 00000000..638b3571
--- /dev/null
+++ b/test/e2e/case20_informonly_test.go
@@ -0,0 +1,97 @@
+// Copyright (c) 2020 Red Hat, Inc.
+// Copyright Contributors to the Open Cluster Management project
+
+package e2e
+
+import (
+	"context"
+	"errors"
+	"os/exec"
+
+	. "github.com/onsi/ginkgo/v2"
+	. "github.com/onsi/gomega"
+	metav1 "k8s.io/apimachinery/pkg/apis/meta/v1"
+	"open-cluster-management.io/config-policy-controller/test/utils"
+)
+
+var _ = FDescribe("Test 'InformOnly' ConfigurationPolicies", Ordered, func() {
+	const (
+		case20PolicyName    string = "case20-policy-informonly"
+		case20PolicyYaml    string = "../resources/case20_policy_informonly/case20-parent-policy.yaml"
+		case20ConfigMapName string = "test-config"
+		case20ConfigMapYaml string = "../resources/case20_policy_informonly/case20-configmap.yaml"
+		case20ConfigPlcName string = "create-configmap"
+	)
+
+	BeforeEach(func() {
+		hubApplyPolicy(case20PolicyName, case20PolicyYaml)
+	})
+
+	AfterEach(func() {
+		By("Deleting a policy on the hub in ns:" + clusterNamespaceOnHub)
+		_, err := kubectlHub("delete", "-f", case20PolicyYaml, "-n", clusterNamespaceOnHub)
+		var e *exec.ExitError
+		if !errors.As(err, &e) {
+			Expect(err).ShouldNot(HaveOccurred())
+		}
+		opt := metav1.ListOptions{}
+		utils.ListWithTimeout(clientManagedDynamic, gvrPolicy, opt, 0, true, defaultTimeoutSeconds)
+	})
+
+	AfterAll(func() {
+		_, err := kubectlManaged("delete", "configmap", case20ConfigMapName, "-n",
+			clusterNamespace, "--ignore-not-found")
+		var e *exec.ExitError
+		if !errors.As(err, &e) {
+			Expect(err).ShouldNot(HaveOccurred())
+		}
+	})
+
+	Describe("Override remediationAction in spec", func() {
+		Context("When the CR does not exist", func() {
+			It("Should be noncompliant", func() {
+				Eventually(func() interface{} {
+					plc := utils.GetWithTimeout(clientManagedDynamic, gvrConfigurationPolicy,
+						case20ConfigPlcName, clusterNamespace, true, defaultTimeoutSeconds)
+
+					return utils.GetComplianceState(plc)
+				}, defaultTimeoutSeconds, 1).Should(Equal("NonCompliant"))
+			})
+		})
+
+		Context("When the CR exists", func() {
+			BeforeEach(func() {
+				_, err := kubectlManaged("apply", "-f", case20ConfigMapYaml, "-n", clusterNamespace)
+				var e *exec.ExitError
+				if !errors.As(err, &e) {
+					Expect(err).ShouldNot(HaveOccurred())
+				}
+			})
+
+			It("Verifies creation of configmap resource", func() {
+				cfmap, _ := clientManaged.CoreV1().ConfigMaps(clusterNamespace).Get(context.TODO(),
+					case20ConfigMapName, metav1.GetOptions{})
+
+				Expect(cfmap).NotTo(BeNil())
+			})
+
+			It("Should be compliant", func() {
+				Eventually(func() interface{} {
+					plc := utils.GetWithTimeout(clientManagedDynamic, gvrConfigurationPolicy,
+						case20ConfigPlcName, clusterNamespace, true, defaultTimeoutSeconds)
+
+					return utils.GetComplianceState(plc)
+				}, defaultTimeoutSeconds, 1).Should(Equal("Compliant"))
+			})
+
+			It("Should have remediationAction=inform", func() {
+				Eventually(func() interface{} {
+					plc := utils.GetWithTimeout(clientManagedDynamic, gvrConfigurationPolicy,
+						case20ConfigPlcName, clusterNamespace, true, defaultTimeoutSeconds)
+
+					return plc.Object["spec"].(map[string]interface{})["remediationAction"]
+				}, defaultTimeoutSeconds, 1).Should(Equal("inform"))
+			})
+		})
+	})
+})
diff --git a/test/resources/case20_policy_informonly/case20-configmap.yaml b/test/resources/case20_policy_informonly/case20-configmap.yaml
new file mode 100644
index 00000000..1cfb65cc
--- /dev/null
+++ b/test/resources/case20_policy_informonly/case20-configmap.yaml
@@ -0,0 +1,5 @@
+apiVersion: v1
+kind: ConfigMap
+metadata:
+  name: test-config
+  namespace: managed
\ No newline at end of file
diff --git a/test/resources/case20_policy_informonly/case20-parent-policy.yaml b/test/resources/case20_policy_informonly/case20-parent-policy.yaml
new file mode 100644
index 00000000..b6c5aa18
--- /dev/null
+++ b/test/resources/case20_policy_informonly/case20-parent-policy.yaml
@@ -0,0 +1,27 @@
+apiVersion: policy.open-cluster-management.io/v1
+kind: Policy
+metadata:
+  name: case20-policy-informonly
+  labels:
+    policy.open-cluster-management.io/cluster-name: managed
+    policy.open-cluster-management.io/cluster-namespace: managed
+    policy.open-cluster-management.io/root-policy: policy-informonly
+spec:
+  remediationAction: enforce
+  disabled: false
+  policy-templates:
+    - objectDefinition:
+        apiVersion: policy.open-cluster-management.io/v1
+        kind: ConfigurationPolicy
+        metadata:
+          name: create-configmap
+        spec:
+          remediationAction: InformOnly
+          object-templates:
+          - complianceType: musthave
+            objectDefinition:
+              apiVersion: v1
+              kind: ConfigMap
+              metadata:
+                name: test-config
+                namespace: managed