diff --git a/.bazelrc b/.bazelrc
index 03442e8ca113..90df1aa8e1f0 100644
--- a/.bazelrc
+++ b/.bazelrc
@@ -210,6 +210,8 @@ build:ubsan --linkopt -fsanitize=undefined
 build:ubsan --linkopt -fno-sanitize-recover=all
 build:ubsan --per_file_copt="-external/com_github_grpc_grpc/.*@-fsanitize=undefined"
 
+build:cgroup --sandbox_writable_path=/sys/fs/cgroup --config=llvm
+
 # Import local specific llvm config options, which can be generated by
 # ci/env/install-llvm-dependencies.sh
 try-import %workspace%/.llvm-local.bazelrc
diff --git a/.buildkite/cicd.rayci.yml b/.buildkite/cicd.rayci.yml
index 394cd758ad44..8bbd8006ce93 100644
--- a/.buildkite/cicd.rayci.yml
+++ b/.buildkite/cicd.rayci.yml
@@ -13,3 +13,15 @@ steps:
     depends_on:
       - oss-ci-base_test
       - forge
+  - label: ":coral: reef: privileged container tests"
+    commands:
+      - bazel run //ci/ray_ci:test_in_docker --
+          //ci/ray_ci:test_privileged ci
+          --cache-test-results
+          --build-name oss-ci-base_test
+          --build-type cgroup
+          --privileged
+    instance_type: small
+    depends_on:
+      - oss-ci-base_test
+      - forge
diff --git a/ci/ray_ci/BUILD.bazel b/ci/ray_ci/BUILD.bazel
index 8ef0a90129a1..4c0617ff24a3 100644
--- a/ci/ray_ci/BUILD.bazel
+++ b/ci/ray_ci/BUILD.bazel
@@ -208,3 +208,16 @@ py_test(
         ci_require("pytest"),
     ],
 )
+
+# This test is only run on linux machines
+# with docker containers that have --privileged
+# enabled.
+py_test(
+    name = "test_privileged",
+    size = "small",
+    srcs = ["test_privileged.py"],
+    tags = [
+        "team:ci"
+    ],
+    deps = [ci_require("pytest")],
+)
diff --git a/ci/ray_ci/container.py b/ci/ray_ci/container.py
index 19a7346a961f..5b44899b3734 100644
--- a/ci/ray_ci/container.py
+++ b/ci/ray_ci/container.py
@@ -5,6 +5,7 @@
 
 from typing import List, Tuple, Optional
 
+
 _CUDA_COPYRIGHT = """
 ==========
 == CUDA ==
diff --git a/ci/ray_ci/linux_container.py b/ci/ray_ci/linux_container.py
index 2bfc91f368de..1e865269d25c 100644
--- a/ci/ray_ci/linux_container.py
+++ b/ci/ray_ci/linux_container.py
@@ -19,6 +19,7 @@ def __init__(
         volumes: Optional[List[str]] = None,
         envs: Optional[List[str]] = None,
         tmp_filesystem: Optional[str] = None,
+        privileged: bool = False,
     ) -> None:
         super().__init__(docker_tag, volumes, envs)
 
@@ -26,6 +27,7 @@ def __init__(
             if tmp_filesystem != "tmpfs":
                 raise ValueError("Only tmpfs is supported for tmp filesystem")
         self.tmp_filesystem = tmp_filesystem
+        self.privileged = privileged
 
     def install_ray(
         self, build_type: Optional[str] = None, mask: Optional[str] = None
@@ -78,8 +80,11 @@ def get_run_command_extra_args(
                 "--mount",
                 f"type={self.tmp_filesystem},destination=/tmp",
             ]
-        for cap in _DOCKER_CAP_ADD:
-            extra_args += ["--cap-add", cap]
+        if self.privileged:
+            extra_args += ["--privileged"]
+        else:
+            for cap in _DOCKER_CAP_ADD:
+                extra_args += ["--cap-add", cap]
         if gpu_ids:
             extra_args += ["--gpus", f'"device={",".join(map(str, gpu_ids))}"']
         extra_args += [
@@ -87,7 +92,6 @@ def get_run_command_extra_args(
             "/rayci",
             "--shm-size=2.5gb",
         ]
-
         return extra_args
 
     def get_artifact_mount(self) -> Tuple[str, str]:
diff --git a/ci/ray_ci/linux_tester_container.py b/ci/ray_ci/linux_tester_container.py
index 8aac8aadb387..126c35c4c001 100644
--- a/ci/ray_ci/linux_tester_container.py
+++ b/ci/ray_ci/linux_tester_container.py
@@ -18,6 +18,7 @@ def __init__(
         build_type: Optional[str] = None,
         install_mask: Optional[str] = None,
         tmp_filesystem: Optional[str] = None,
+        privileged: bool = False,
     ) -> None:
         LinuxContainer.__init__(
             self,
@@ -28,6 +29,7 @@ def __init__(
                 "/var/run/docker.sock:/var/run/docker.sock",
             ],
             tmp_filesystem=tmp_filesystem,
+            privileged=privileged,
         )
         TesterContainer.__init__(
             self,
diff --git a/ci/ray_ci/test_privileged.py b/ci/ray_ci/test_privileged.py
new file mode 100644
index 000000000000..c1f71dfe7056
--- /dev/null
+++ b/ci/ray_ci/test_privileged.py
@@ -0,0 +1,50 @@
+import os
+import pytest
+import sys
+
+from pathlib import Path
+
+# In privileged containers, we expect the following
+# cgroupv1 is disabled
+# cgroupv2 is enabled and mounted on /sys/fs/cgroup
+# the user running tests has read and write access to the cgroup subtree
+# memory and cpu controllers are enabled
+
+_MOUNT_FILE_PATH = "/proc/mounts"
+_CGROUP2_PATH = "/sys/fs/cgroup"
+_CTRL_FILE = "cgroup.controllers"
+_EXPECTED_CTRLS = ["memory", "cpu"]
+
+
+# mount file format:
+# cgroup /sys/fs/cgroup cgroup2 rw,nosuid,nodev,noexec,relatime 0 0
+def test_only_cgroupv2_mounted_rw():
+    found_cgroupv2 = False
+    found_cgroupv1 = False
+    with open(Path(_MOUNT_FILE_PATH)) as f:
+        for line in f:
+            c = line.split()
+            found_cgroupv2 = found_cgroupv2 or (
+                c[2] == "cgroup2" and c[1] == _CGROUP2_PATH and "rw" in c[3]
+            )
+            found_cgroupv1 = found_cgroupv1 or (c[2] == "cgroup")
+    assert found_cgroupv2 and not found_cgroupv1
+
+
+def test_cgroupv2_rw_for_test_user():
+    assert os.access(_CGROUP2_PATH, os.R_OK) and os.access(_CGROUP2_PATH, os.W_OK)
+
+
+def test_cgroupv2_controllers_enabled():
+    with open(os.path.join(_CGROUP2_PATH, _CTRL_FILE)) as f:
+        enabled = f.readlines()
+        assert len(enabled) == 1
+        enabled_ctrls = enabled[0].split()
+        for expected_ctrl in _EXPECTED_CTRLS:
+            assert (
+                expected_ctrl in enabled_ctrls
+            ), f"Expected {expected_ctrl} to be enabled for cgroups2, but it is not"
+
+
+if __name__ == "__main__":
+    sys.exit(pytest.main(["-v", __file__]))
diff --git a/ci/ray_ci/test_tester.py b/ci/ray_ci/test_tester.py
index f45ce4e22e78..98835c94af7c 100644
--- a/ci/ray_ci/test_tester.py
+++ b/ci/ray_ci/test_tester.py
@@ -44,6 +44,28 @@ def test_get_tag_matcher() -> None:
     )
 
 
+def test_linux_privileged() -> None:
+    with mock.patch(
+        "ci.ray_ci.linux_tester_container.LinuxTesterContainer.install_ray",
+        return_value=None,
+    ):
+        container = _get_container(
+            team="core",
+            operating_system="linux",
+            workers=3,
+            worker_id=1,
+            parallelism_per_worker=2,
+            network=None,
+            gpus=0,
+            tmp_filesystem=None,
+            privileged=True,
+        )
+        assert (
+            container.privileged
+            and "--privileged" in container.get_run_command_extra_args()
+        )
+
+
 def test_get_container() -> None:
     with mock.patch(
         "ci.ray_ci.linux_tester_container.LinuxTesterContainer.install_ray",
diff --git a/ci/ray_ci/tester.py b/ci/ray_ci/tester.py
index d33f5f58db31..090ee5bc74c1 100644
--- a/ci/ray_ci/tester.py
+++ b/ci/ray_ci/tester.py
@@ -159,6 +159,7 @@
             "asan-clang",
             "ubsan",
             "tsan-clang",
+            "cgroup",
             # java build types
             "java",
             # do not build ray
@@ -188,6 +189,13 @@
     type=str,
     help=("Filesystem to use for /tmp"),
 )
+@click.option(
+    "--privileged",
+    is_flag=True,
+    show_default=True,
+    default=False,
+    help="Run the test in a privileged Docker container",
+)
 def main(
     targets: List[str],
     team: str,
@@ -212,6 +220,7 @@ def main(
     install_mask: Optional[str],
     bisect_run_test_target: Optional[str],
     tmp_filesystem: Optional[str],
+    privileged: bool,
 ) -> None:
     if not bazel_workspace_dir:
         raise Exception("Please use `bazelisk run //ci/ray_ci`")
@@ -241,6 +250,7 @@ def main(
         build_type=build_type,
         skip_ray_installation=skip_ray_installation,
         install_mask=install_mask,
+        privileged=privileged,
     )
     if build_only:
         sys.exit(0)
@@ -291,6 +301,7 @@ def _get_container(
     build_type: Optional[str] = None,
     install_mask: Optional[str] = None,
     skip_ray_installation: bool = False,
+    privileged: bool = False,
 ) -> TesterContainer:
     shard_count = workers * parallelism_per_worker
     shard_start = worker_id * parallelism_per_worker
@@ -312,6 +323,7 @@ def _get_container(
             build_type=build_type,
             tmp_filesystem=tmp_filesystem,
             install_mask=install_mask,
+            privileged=privileged,
         )
 
     if operating_system == "windows":
diff --git a/ci/ray_ci/tester_container.py b/ci/ray_ci/tester_container.py
index 8db4d24c1dab..19be0e3c2fd3 100644
--- a/ci/ray_ci/tester_container.py
+++ b/ci/ray_ci/tester_container.py
@@ -252,6 +252,8 @@ def _run_tests_in_docker(
             test_cmd += "--config=ubsan "
         if self.build_type == "tsan-clang":
             test_cmd += "--config=tsan-clang "
+        if self.build_type == "cgroup":
+            test_cmd += "--config=cgroup "
         for env in test_envs:
             test_cmd += f"--test_env {env} "
         if test_arg:
diff --git a/ci/ray_ci/tests.env.Dockerfile b/ci/ray_ci/tests.env.Dockerfile
index 70cd39a879ca..ab3f6c052c1b 100644
--- a/ci/ray_ci/tests.env.Dockerfile
+++ b/ci/ray_ci/tests.env.Dockerfile
@@ -29,7 +29,7 @@ if [[ "$BUILD_TYPE" == "skip" || "${BUILD_TYPE}" == "ubsan" ]]; then
   exit 0
 fi
 
-if [[ "$BUILD_TYPE" == "clang" || "$BUILD_TYPE" == "asan-clang" || "$BUILD_TYPE" == "tsan-clang" ]]; then
+if [[ "$BUILD_TYPE" == "clang" || "$BUILD_TYPE" == "asan-clang" || "$BUILD_TYPE" == "tsan-clang" || "$BUILD_TYPE" == "cgroup" ]]; then
   echo "--- Install LLVM dependencies (and skip building ray package)"
   bash ci/env/install-llvm-binaries.sh
   exit 0