diff --git a/sdks/python/apache_beam/runners/worker/bundle_processor.py b/sdks/python/apache_beam/runners/worker/bundle_processor.py
index b3ca92aa9a1a..935ba83709c0 100644
--- a/sdks/python/apache_beam/runners/worker/bundle_processor.py
+++ b/sdks/python/apache_beam/runners/worker/bundle_processor.py
@@ -828,6 +828,17 @@ def only_element(iterable):
   return element
 
 
+def _environments_compatible(submission, runtime):
+  # type: (str, str) -> bool
+  if submission == runtime:
+    return True
+  if 'rc' in submission and runtime in submission:
+    # TODO(https://github.com/apache/beam/issues/28084): Loosen
+    # the check for RCs until RC containers install the matching version.
+    return True
+  return False
+
+
 def _verify_descriptor_created_in_a_compatible_env(process_bundle_descriptor):
   # type: (beam_fn_api_pb2.ProcessBundleDescriptor) -> None
 
@@ -836,7 +847,7 @@ def _verify_descriptor_created_in_a_compatible_env(process_bundle_descriptor):
     env = process_bundle_descriptor.environments[t.environment_id]
     for c in env.capabilities:
       if (c.startswith(environments.SDK_VERSION_CAPABILITY_PREFIX) and
-          c != runtime_sdk):
+          not _environments_compatible(c, runtime_sdk)):
         raise RuntimeError(
             "Pipeline construction environment and pipeline runtime "
             "environment are not compatible. If you use a custom "
diff --git a/sdks/python/apache_beam/runners/worker/bundle_processor_test.py b/sdks/python/apache_beam/runners/worker/bundle_processor_test.py
index 673c1cea111a..292b8431063c 100644
--- a/sdks/python/apache_beam/runners/worker/bundle_processor_test.py
+++ b/sdks/python/apache_beam/runners/worker/bundle_processor_test.py
@@ -402,5 +402,25 @@ def test_can_sample_exceptions(self):
       data_sampler.stop()
 
 
+class EnvironmentCompatibilityTest(unittest.TestCase):
+  def test_rc_environments_are_compatible_with_released_images(self):
+    # TODO(https://github.com/apache/beam/issues/28084): remove when
+    # resolved.
+    self.assertTrue(
+        bundle_processor._environments_compatible(
+            "beam:version:sdk_base:apache/beam_python3.5_sdk:2.1.0rc1",
+            "beam:version:sdk_base:apache/beam_python3.5_sdk:2.1.0"))
+
+  def test_user_modified_sdks_need_to_be_installed_in_runtime_env(self):
+    self.assertFalse(
+        bundle_processor._environments_compatible(
+            "beam:version:sdk_base:apache/beam_python3.5_sdk:2.1.0-custom",
+            "beam:version:sdk_base:apache/beam_python3.5_sdk:2.1.0"))
+    self.assertTrue(
+        bundle_processor._environments_compatible(
+            "beam:version:sdk_base:apache/beam_python3.5_sdk:2.1.0-custom",
+            "beam:version:sdk_base:apache/beam_python3.5_sdk:2.1.0-custom"))
+
+
 if __name__ == '__main__':
   unittest.main()