diff --git a/controllers/templatesync/template_sync.go b/controllers/templatesync/template_sync.go
index e630de40..c0c4a727 100644
--- a/controllers/templatesync/template_sync.go
+++ b/controllers/templatesync/template_sync.go
@@ -1193,10 +1193,7 @@ func generatePendingMsg(dependencyFailures []depclient.ObjectIdentifier) string
 
 func overrideRemediationAction(instance *policiesv1.Policy, tObjectUnstructured *unstructured.Unstructured) {
 	// override RemediationAction only when it is set on parent
-	if instance.Spec.RemediationAction == "" {
-		return
-	}
-
+	// or when a policy is set to informonly
 	if tObjectUnstructured.GroupVersionKind().Group == utils.GConstraint {
 		var enforcementAction string
 
@@ -1210,21 +1207,39 @@ func overrideRemediationAction(instance *policiesv1.Policy, tObjectUnstructured
 		}
 
 		if spec, ok := tObjectUnstructured.Object["spec"]; ok {
-			specObject, ok := spec.(map[string]interface{})
-			if ok {
+			if specObject, ok := spec.(map[string]interface{}); ok {
 				specObject["enforcementAction"] = enforcementAction
 			}
 		}
+
+		return
 	} else if tObjectUnstructured.GroupVersionKind().Group == utils.GvkConstraintTemplate.Group {
 		// Don't override anything if it's a ConstraintTemplate
 		return
-	} else {
-		if spec, ok := tObjectUnstructured.Object["spec"]; ok {
-			specObject, ok := spec.(map[string]interface{})
-			if ok {
-				specObject["remediationAction"] = string(instance.Spec.RemediationAction)
+	}
+
+	spec, ok := tObjectUnstructured.Object["spec"]
+	if !ok {
+		return
+	}
+
+	specObject, ok := spec.(map[string]interface{})
+	if !ok {
+		return
+	}
+
+	if remediationAction, ok := specObject["remediationAction"]; ok {
+		if _, ok := remediationAction.(string); ok {
+			if strings.EqualFold(specObject["remediationAction"].(string), "informonly") {
+				specObject["remediationAction"] = strings.ToLower(string(policiesv1.Inform))
+
+				return
 			}
 		}
+
+		if instance.Spec.RemediationAction != "" {
+			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..4701d523
--- /dev/null
+++ b/test/e2e/case20_informonly_test.go
@@ -0,0 +1,69 @@
+// Copyright (c) 2023 Red Hat, Inc.
+// Copyright Contributors to the Open Cluster Management project
+
+package e2e
+
+import (
+	"errors"
+	"os/exec"
+
+	. "github.com/onsi/ginkgo/v2"
+	. "github.com/onsi/gomega"
+	"open-cluster-management.io/config-policy-controller/test/utils"
+)
+
+const (
+	case20PolicyName                 string = "case20-policy-informonly"
+	case20PolicyYaml                 string = "../resources/case20_policy_informonly/case20-parent-policy.yaml"
+	case20ConfigPlcName              string = "create-configmap"
+	case20ConfigPlcNoRemediationName string = "create-configmap-no-remediationaction"
+	case20PolicyNoRemediationName    string = "case20-policy-informonly-no-remediationaction"
+	case20PolicyNoRemediationYaml    string = "../resources/case20_policy_informonly/" +
+		"case20-parent-policy-noremediation.yaml"
+)
+
+func checkInformAction(cfplc string) {
+	By("Checking template policy remediationAction")
+	Eventually(func() interface{} {
+		plc := utils.GetWithTimeout(clientManagedDynamic, gvrConfigurationPolicy,
+			cfplc, clusterNamespace, true, defaultTimeoutSeconds)
+
+		return plc.Object["spec"].(map[string]interface{})["remediationAction"]
+	}, defaultTimeoutSeconds, 1).Should(Equal("inform"))
+}
+
+var _ = Describe("Test 'InformOnly' ConfigurationPolicies", Ordered, func() {
+	AfterAll(func() {
+		By("Deleting all policies on the hub in ns:" + clusterNamespaceOnHub)
+		_, err := kubectlHub("delete", "-f", case20PolicyYaml, "-n", clusterNamespaceOnHub,
+			"--ignore-not-found")
+		var e *exec.ExitError
+		if !errors.As(err, &e) {
+			Expect(err).ShouldNot(HaveOccurred())
+		}
+
+		_, err = kubectlHub("delete", "-f", case20PolicyNoRemediationYaml, "-n", clusterNamespaceOnHub,
+			"--ignore-not-found")
+		if !errors.As(err, &e) {
+			Expect(err).ShouldNot(HaveOccurred())
+		}
+	})
+
+	Describe("Override remediationAction in spec", func() {
+		Context("When parent policy have remediationAction=enforce", func() {
+			It("Should have remediationAction=inform", func() {
+				By("Applying parent policy " + case20PolicyName + " in hub ns: " + clusterNamespaceOnHub)
+				hubApplyPolicy(case20PolicyName, case20PolicyYaml)
+				checkInformAction(case20ConfigPlcName)
+			})
+		})
+
+		Context("When parent policy have no remediationAction field set", func() {
+			It("Should have remediationAction=inform", func() {
+				By("Applying parent policy " + case20PolicyNoRemediationName + " in hub ns: " + clusterNamespaceOnHub)
+				hubApplyPolicy(case20PolicyNoRemediationName, case20PolicyNoRemediationYaml)
+				checkInformAction(case20ConfigPlcNoRemediationName)
+			})
+		})
+	})
+})
diff --git a/test/resources/case20_policy_informonly/case20-parent-policy-noremediation.yaml b/test/resources/case20_policy_informonly/case20-parent-policy-noremediation.yaml
new file mode 100644
index 00000000..962abae3
--- /dev/null
+++ b/test/resources/case20_policy_informonly/case20-parent-policy-noremediation.yaml
@@ -0,0 +1,26 @@
+apiVersion: policy.open-cluster-management.io/v1
+kind: Policy
+metadata:
+  name: case20-policy-informonly-no-remediationaction
+  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:
+  disabled: false
+  policy-templates:
+    - objectDefinition:
+        apiVersion: policy.open-cluster-management.io/v1
+        kind: ConfigurationPolicy
+        metadata:
+          name: create-configmap-no-remediationaction
+        spec:
+          remediationAction: InformOnly
+          object-templates:
+          - complianceType: musthave
+            objectDefinition:
+              apiVersion: v1
+              kind: ConfigMap
+              metadata:
+                name: test-config
+                namespace: managed
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