diff --git a/Earthfile b/Earthfile
index 374524b..053c114 100644
--- a/Earthfile
+++ b/Earthfile
@@ -225,10 +225,10 @@ go-test:
   COPY --dir +envtest-setup/envtest /usr/local/kubebuilder/bin
   # a bit dirty but preload the cache with the images we use in IT (found in functions.yaml)
   WITH DOCKER \
-    --pull xpkg.upbound.io/crossplane-contrib/function-go-templating:v0.11.0 \
-    --pull xpkg.upbound.io/crossplane-contrib/function-auto-ready:v0.4.2 \
-    --pull xpkg.upbound.io/crossplane-contrib/function-environment-configs:v0.4.0 \
-    --pull xpkg.upbound.io/crossplane-contrib/function-extra-resources:v0.1.0
+    --pull xpkg.crossplane.io/crossplane-contrib/function-go-templating:v0.11.0 \
+    --pull xpkg.crossplane.io/crossplane-contrib/function-auto-ready:v0.4.2 \
+    --pull xpkg.crossplane.io/crossplane-contrib/function-environment-configs:v0.4.0 \
+    --pull xpkg.crossplane.io/crossplane-contrib/function-extra-resources:v0.2.0
     # this is silly, but we put these files into the default KUBEBUILDER_ASSETS location, because if we set
     # KUBEBUILDER_ASSETS on `go test` to the artifact path, which is perhaps more intuitive, the syntax highlighting
     # in intellij breaks due to the word BUILD in all caps.
@@ -340,7 +340,7 @@ ci-artifacts:
   BUILD +multiplatform-build \
     --CROSSPLANE_REPO=index.docker.io/crossplane-contrib/crossplane-diff \
     --CROSSPLANE_REPO=ghcr.io/crossplane-contrib/crossplane-diff \
-    --CROSSPLANE_REPO=xpkg.upbound.io/crossplane-contrib/crossplane-diff
+    --CROSSPLANE_REPO=xpkg.crossplane.io/crossplane-contrib/crossplane-diff
 
 # ci-codeql-setup sets up CodeQL for the ci-codeql target.
 ci-codeql-setup:
diff --git a/cmd/diff/main_test.go b/cmd/diff/main_test.go
new file mode 100644
index 0000000..d2b5229
--- /dev/null
+++ b/cmd/diff/main_test.go
@@ -0,0 +1,46 @@
+package main
+
+import (
+	"context"
+	"os"
+	"os/exec"
+	"strings"
+	"testing"
+	"time"
+)
+
+// TestMain runs before all tests and cleans up after all tests complete.
+func TestMain(m *testing.M) {
+	// Run all tests
+	exitCode := m.Run()
+
+	// Clean up orphaned function containers after tests complete
+	cleanupFunctionContainers()
+
+	// Exit with the test suite's exit code
+	os.Exit(exitCode)
+}
+
+// cleanupFunctionContainers removes the named function containers used by integration tests.
+func cleanupFunctionContainers() {
+	ctx, cancel := context.WithTimeout(context.Background(), 30*time.Second)
+	defer cancel()
+
+	// Use exec.CommandContext to run docker command
+	cmd := exec.CommandContext(ctx, "docker", "ps", "-a", "-q", "--filter", "name=-it$")
+	output, err := cmd.Output()
+	if err != nil {
+		// Docker might not be available or no containers found - that's okay
+		return
+	}
+
+	containerIDs := strings.Fields(string(output))
+	if len(containerIDs) == 0 {
+		return
+	}
+
+	// Remove the containers
+	args := append([]string{"rm", "-f"}, containerIDs...)
+	cleanupCmd := exec.CommandContext(ctx, "docker", args...)
+	_ = cleanupCmd.Run() // Ignore errors during cleanup
+}
diff --git a/cmd/diff/testdata/comp/resources/functions.yaml b/cmd/diff/testdata/comp/resources/functions.yaml
index 3c32822..7f7fdef 100644
--- a/cmd/diff/testdata/comp/resources/functions.yaml
+++ b/cmd/diff/testdata/comp/resources/functions.yaml
@@ -1,29 +1,49 @@
 ---
 # TODO:  when updating these, ensure you also update the list of pulled images in Earthfile/go-test
+#
+# Named Docker containers for performance optimization in integration tests.
+# The 'runtime-docker-name' annotation enables container reuse across multiple test cases.
+# The 'runtime-docker-cleanup: Orphan' annotation leaves containers running after render completes,
+# allowing subsequent tests to reuse them instead of creating new ones.
+#
+# IMPORTANT: These containers will persist after test runs. Clean them up manually with:
+#   docker rm -f $(docker ps -a -q --filter "name=function-*-it")
 apiVersion: pkg.crossplane.io/v1beta1
 kind: Function
 metadata:
   name: function-go-templating
+  annotations:
+    render.crossplane.io/runtime-docker-name: "function-go-templating-v0.11.0-it"
+    render.crossplane.io/runtime-docker-cleanup: "Orphan"
 spec:
-  package: xpkg.upbound.io/crossplane-contrib/function-go-templating:v0.11.0
+  package: xpkg.crossplane.io/crossplane-contrib/function-go-templating:v0.11.0
 ---
 apiVersion: pkg.crossplane.io/v1beta1
 kind: Function
 metadata:
   name: function-auto-ready
+  annotations:
+    render.crossplane.io/runtime-docker-name: "function-auto-ready-v0.4.2-it"
+    render.crossplane.io/runtime-docker-cleanup: "Orphan"
 spec:
-  package: xpkg.upbound.io/crossplane-contrib/function-auto-ready:v0.4.2
+  package: xpkg.crossplane.io/crossplane-contrib/function-auto-ready:v0.4.2
 ---
 apiVersion: pkg.crossplane.io/v1beta1
 kind: Function
 metadata:
   name: function-environment-configs
+  annotations:
+    render.crossplane.io/runtime-docker-name: "function-environment-configs-v0.4.0-it"
+    render.crossplane.io/runtime-docker-cleanup: "Orphan"
 spec:
-  package: xpkg.upbound.io/crossplane-contrib/function-environment-configs:v0.4.0
+  package: xpkg.crossplane.io/crossplane-contrib/function-environment-configs:v0.4.0
 ---
 apiVersion: pkg.crossplane.io/v1beta1
 kind: Function
 metadata:
   name: function-extra-resources
+  annotations:
+    render.crossplane.io/runtime-docker-name: "function-extra-resources-v0.2.0-it"
+    render.crossplane.io/runtime-docker-cleanup: "Orphan"
 spec:
-  package: xpkg.upbound.io/crossplane-contrib/function-extra-resources:v0.1.0
+  package: xpkg.crossplane.io/crossplane-contrib/function-extra-resources:v0.2.0
diff --git a/cmd/diff/testdata/diff/resources/functions.yaml b/cmd/diff/testdata/diff/resources/functions.yaml
index 3c32822..7f7fdef 100644
--- a/cmd/diff/testdata/diff/resources/functions.yaml
+++ b/cmd/diff/testdata/diff/resources/functions.yaml
@@ -1,29 +1,49 @@
 ---
 # TODO:  when updating these, ensure you also update the list of pulled images in Earthfile/go-test
+#
+# Named Docker containers for performance optimization in integration tests.
+# The 'runtime-docker-name' annotation enables container reuse across multiple test cases.
+# The 'runtime-docker-cleanup: Orphan' annotation leaves containers running after render completes,
+# allowing subsequent tests to reuse them instead of creating new ones.
+#
+# IMPORTANT: These containers will persist after test runs. Clean them up manually with:
+#   docker rm -f $(docker ps -a -q --filter "name=function-*-it")
 apiVersion: pkg.crossplane.io/v1beta1
 kind: Function
 metadata:
   name: function-go-templating
+  annotations:
+    render.crossplane.io/runtime-docker-name: "function-go-templating-v0.11.0-it"
+    render.crossplane.io/runtime-docker-cleanup: "Orphan"
 spec:
-  package: xpkg.upbound.io/crossplane-contrib/function-go-templating:v0.11.0
+  package: xpkg.crossplane.io/crossplane-contrib/function-go-templating:v0.11.0
 ---
 apiVersion: pkg.crossplane.io/v1beta1
 kind: Function
 metadata:
   name: function-auto-ready
+  annotations:
+    render.crossplane.io/runtime-docker-name: "function-auto-ready-v0.4.2-it"
+    render.crossplane.io/runtime-docker-cleanup: "Orphan"
 spec:
-  package: xpkg.upbound.io/crossplane-contrib/function-auto-ready:v0.4.2
+  package: xpkg.crossplane.io/crossplane-contrib/function-auto-ready:v0.4.2
 ---
 apiVersion: pkg.crossplane.io/v1beta1
 kind: Function
 metadata:
   name: function-environment-configs
+  annotations:
+    render.crossplane.io/runtime-docker-name: "function-environment-configs-v0.4.0-it"
+    render.crossplane.io/runtime-docker-cleanup: "Orphan"
 spec:
-  package: xpkg.upbound.io/crossplane-contrib/function-environment-configs:v0.4.0
+  package: xpkg.crossplane.io/crossplane-contrib/function-environment-configs:v0.4.0
 ---
 apiVersion: pkg.crossplane.io/v1beta1
 kind: Function
 metadata:
   name: function-extra-resources
+  annotations:
+    render.crossplane.io/runtime-docker-name: "function-extra-resources-v0.2.0-it"
+    render.crossplane.io/runtime-docker-cleanup: "Orphan"
 spec:
-  package: xpkg.upbound.io/crossplane-contrib/function-extra-resources:v0.1.0
+  package: xpkg.crossplane.io/crossplane-contrib/function-extra-resources:v0.2.0