diff --git a/e2e-tests/functions b/e2e-tests/functions
index 5a8722606..08c65e876 100644
--- a/e2e-tests/functions
+++ b/e2e-tests/functions
@@ -1143,3 +1143,95 @@ wait_for_generation() {
 		fi
 	done
 }
+
+# Reads all environment variables from a pod (single kubectl exec call)
+get_envs_from_pod() {
+  local namespace=$1
+  local pod=$2
+  local container=$3
+
+  if [ -n "$container" ]; then
+    kubectl exec -n "$namespace" "$pod" -c "$container" -- printenv 2>/dev/null || true
+  else
+    kubectl exec -n "$namespace" "$pod" -- printenv 2>/dev/null || true
+  fi
+}
+
+# Verifies a single variable in given env content
+check_env_in_pod() {
+  local check_type=$1
+  local pod=$2
+  local var_name=$3
+  local expected_value=$4
+  local env_content=$5
+
+  local actual_value
+  actual_value=$(echo "$env_content" | grep -E "^${var_name}=" | cut -d'=' -f2- || true)
+
+  if [[ "$check_type" == "add" ]]; then
+    if [ "$actual_value" != "$expected_value" ]; then
+      echo "ERROR: $var_name in $pod — expected '$expected_value', got '${actual_value:-<missing>}'"
+      return 1
+    else
+      echo "OK: $var_name=$actual_value in $pod"
+    fi
+  elif [[ "$check_type" == "delete" ]]; then
+    if [ -n "$actual_value" ]; then
+      echo "ERROR: $var_name exists in $pod (should not exist)"
+      return 1
+    else
+      echo "OK: $var_name deleted in $pod"
+    fi
+  else
+    echo "ERROR: unknown check type '$check_type'"
+    return 1
+  fi
+}
+
+# Checks multiple env vars in one or more components
+check_envs_for_component() {
+  local check_type=$1      # add | delete
+  local component=$2       # instance | pgbouncer | repohost
+  local vars=("${@:3}")    # everything after the 2nd argument
+
+  case "$component" in
+    instance)
+      POD=$(kubectl get -n "${NAMESPACE}" pod -l postgres-operator.crunchydata.com/instance-set=instance1 -o 'jsonpath={.items[0].metadata.name}')
+      CONTAINER=""
+      ;;
+    pgbouncer)
+      POD=$(kubectl get -n "${NAMESPACE}" pod -l postgres-operator.crunchydata.com/role=pgbouncer -o 'jsonpath={.items[0].metadata.name}')
+      CONTAINER="pgbouncer"
+      ;;
+    repohost)
+      POD=$(kubectl get -n "${NAMESPACE}" pod -l postgres-operator.crunchydata.com/data=pgbackrest -o 'jsonpath={.items[0].metadata.name}')
+      CONTAINER="pgbackrest"
+      ;;
+    *)
+      echo "ERROR: unknown component '$component'"
+      return 1
+      ;;
+  esac
+
+  echo "Fetching environment variables for $component pod $POD..."
+  local env_content
+  env_content=$(get_envs_from_pod "${NAMESPACE}" "$POD" "$CONTAINER")
+
+  local errors=0
+  for var_entry in "${vars[@]}"; do
+    if [[ "$check_type" == "add" ]]; then
+      local var_name="${var_entry%%=*}"
+      local var_expected="${var_entry#*=}"
+      check_env_in_pod add "$POD" "$var_name" "$var_expected" "$env_content" || errors=$((errors+1))
+    else
+      check_env_in_pod delete "$POD" "$var_entry" "" "$env_content" || errors=$((errors+1))
+    fi
+  done
+
+  if (( errors > 0 )); then
+    echo "$errors environment check(s) failed for component '$component'"
+    return 1
+  else
+    echo "All environment checks passed for component '$component'"
+  fi
+}
\ No newline at end of file
diff --git a/e2e-tests/run-pr.csv b/e2e-tests/run-pr.csv
index 8c480e198..358ce4498 100644
--- a/e2e-tests/run-pr.csv
+++ b/e2e-tests/run-pr.csv
@@ -1,4 +1,5 @@
 backup-enable-disable
+custom-envs
 custom-extensions
 custom-tls
 database-init-sql
diff --git a/e2e-tests/run-release.csv b/e2e-tests/run-release.csv
index 8c480e198..358ce4498 100644
--- a/e2e-tests/run-release.csv
+++ b/e2e-tests/run-release.csv
@@ -1,4 +1,5 @@
 backup-enable-disable
+custom-envs
 custom-extensions
 custom-tls
 database-init-sql
diff --git a/e2e-tests/tests/custom-envs/00-assert.yaml b/e2e-tests/tests/custom-envs/00-assert.yaml
new file mode 100644
index 000000000..ae5a062d8
--- /dev/null
+++ b/e2e-tests/tests/custom-envs/00-assert.yaml
@@ -0,0 +1,24 @@
+apiVersion: kuttl.dev/v1beta1
+kind: TestAssert
+timeout: 120
+---
+apiVersion: apiextensions.k8s.io/v1
+kind: CustomResourceDefinition
+metadata:
+  name: perconapgclusters.pgv2.percona.com
+spec:
+  group: pgv2.percona.com
+  names:
+    kind: PerconaPGCluster
+    listKind: PerconaPGClusterList
+    plural: perconapgclusters
+    singular: perconapgcluster
+  scope: Namespaced
+---
+apiVersion: kuttl.dev/v1beta1
+kind: TestAssert
+metadata:
+  name: check-operator-deploy-status
+timeout: 120
+commands:
+  - script: kubectl assert exist-enhanced deployment percona-postgresql-operator -n ${OPERATOR_NS:-$NAMESPACE} --field-selector status.readyReplicas=1
diff --git a/e2e-tests/tests/custom-envs/00-deploy-operator.yaml b/e2e-tests/tests/custom-envs/00-deploy-operator.yaml
new file mode 100644
index 000000000..7faf4da85
--- /dev/null
+++ b/e2e-tests/tests/custom-envs/00-deploy-operator.yaml
@@ -0,0 +1,14 @@
+apiVersion: kuttl.dev/v1beta1
+kind: TestStep
+timeout: 10
+commands:
+  - script: |-
+      set -o errexit
+      set -o xtrace
+
+      source ../../functions
+      init_temp_dir # do this only in the first TestStep
+
+      deploy_operator
+      deploy_client
+      deploy_s3_secrets
diff --git a/e2e-tests/tests/custom-envs/01-assert.yaml b/e2e-tests/tests/custom-envs/01-assert.yaml
new file mode 100644
index 000000000..9f767a78f
--- /dev/null
+++ b/e2e-tests/tests/custom-envs/01-assert.yaml
@@ -0,0 +1,106 @@
+apiVersion: kuttl.dev/v1beta1
+kind: TestAssert
+timeout: 120
+---
+kind: StatefulSet
+apiVersion: apps/v1
+metadata:
+  labels:
+    postgres-operator.crunchydata.com/cluster: custom-envs
+    postgres-operator.crunchydata.com/data: postgres
+    postgres-operator.crunchydata.com/instance-set: instance1
+  ownerReferences:
+    - apiVersion: postgres-operator.crunchydata.com/v1beta1
+      kind: PostgresCluster
+      name: custom-envs
+      controller: true
+      blockOwnerDeletion: true
+status:
+  observedGeneration: 1
+  replicas: 1
+  readyReplicas: 1
+  currentReplicas: 1
+  updatedReplicas: 1
+  collisionCount: 0
+---
+kind: Deployment
+apiVersion: apps/v1
+metadata:
+  name: custom-envs-pgbouncer
+  labels:
+    postgres-operator.crunchydata.com/cluster: custom-envs
+    postgres-operator.crunchydata.com/role: pgbouncer
+  annotations:
+    deployment.kubernetes.io/revision: '1'
+  ownerReferences:
+    - apiVersion: postgres-operator.crunchydata.com/v1beta1
+      kind: PostgresCluster
+      name: custom-envs
+      controller: true
+      blockOwnerDeletion: true
+status:
+  observedGeneration: 1
+  replicas: 1
+  updatedReplicas: 1
+  readyReplicas: 1
+---
+kind: Job
+apiVersion: batch/v1
+metadata:
+  labels:
+    postgres-operator.crunchydata.com/cluster: custom-envs
+    postgres-operator.crunchydata.com/pgbackrest: ''
+    postgres-operator.crunchydata.com/pgbackrest-backup: replica-create
+    postgres-operator.crunchydata.com/pgbackrest-repo: repo1
+  ownerReferences:
+    - apiVersion: pgv2.percona.com/v2
+      kind: PerconaPGBackup
+      controller: true
+      blockOwnerDeletion: true
+status:
+  succeeded: 1
+---
+apiVersion: postgres-operator.crunchydata.com/v1beta1
+kind: PostgresCluster
+metadata:
+  name: custom-envs
+  ownerReferences:
+    - apiVersion: pgv2.percona.com/v2
+      kind: PerconaPGCluster
+      name: custom-envs
+      controller: true
+      blockOwnerDeletion: true
+  finalizers:
+    - postgres-operator.crunchydata.com/finalizer
+status:
+  instances:
+    - name: instance1
+      readyReplicas: 1
+      replicas: 1
+      updatedReplicas: 1
+  observedGeneration: 1
+  pgbackrest:
+    repos:
+      - name: repo1
+        stanzaCreated: true
+  proxy:
+    pgBouncer:
+      readyReplicas: 1
+      replicas: 1
+---
+apiVersion: pgv2.percona.com/v2
+kind: PerconaPGCluster
+metadata:
+  name: custom-envs
+status:
+  pgbouncer:
+    ready: 1
+    size: 1
+  postgres:
+    instances:
+    - name: instance1
+      ready: 1
+      size: 1
+    ready: 1
+    size: 1
+  state: ready
diff --git a/e2e-tests/tests/custom-envs/01-create-cluster.yaml b/e2e-tests/tests/custom-envs/01-create-cluster.yaml
new file mode 100644
index 000000000..2ff465910
--- /dev/null
+++ b/e2e-tests/tests/custom-envs/01-create-cluster.yaml
@@ -0,0 +1,15 @@
+apiVersion: kuttl.dev/v1beta1
+kind: TestStep
+timeout: 20
+commands:
+  - script: |-
+      set -o errexit
+      set -o xtrace
+
+      source ../../functions
+
+      get_cr \
+        | yq eval '
+            .spec.proxy.pgBouncer.replicas=1 |
+            .spec.instances[].replicas=1' - \
+        | kubectl -n "${NAMESPACE}" apply -f -
diff --git a/e2e-tests/tests/custom-envs/02-add-env-to-instance.yaml b/e2e-tests/tests/custom-envs/02-add-env-to-instance.yaml
new file mode 100644
index 000000000..0a36be90f
--- /dev/null
+++ b/e2e-tests/tests/custom-envs/02-add-env-to-instance.yaml
@@ -0,0 +1,21 @@
+apiVersion: kuttl.dev/v1beta1
+kind: TestStep
+timeout: 10
+commands:
+  - script: |-
+      set -o errexit
+      set -o xtrace
+
+      source ../../functions
+      get_cr | yq eval '
+        .spec.proxy.pgBouncer.replicas = 1 |
+        .spec.instances[].replicas = 1 |
+        .spec.instances[].env = ((.spec.instances[].env // []) + [{"name": "FIRST_ENV", "value": "1000"}, {"name": "SECOND_ENV", "value": "2000"}] | unique_by(.name))
+        ' - | kubectl -n "${NAMESPACE}" apply -f -
+
+  
+        sleep 10  
+        wait_cluster_consistency custom-envs
+        
+        check_envs_for_component add instance FIRST_ENV=1000 SECOND_ENV=2000
+        
diff --git a/e2e-tests/tests/custom-envs/02-assert.yaml b/e2e-tests/tests/custom-envs/02-assert.yaml
new file mode 100644
index 000000000..b03a78959
--- /dev/null
+++ b/e2e-tests/tests/custom-envs/02-assert.yaml
@@ -0,0 +1,48 @@
+apiVersion: kuttl.dev/v1beta1
+kind: TestAssert
+timeout: 120
+---
+apiVersion: postgres-operator.crunchydata.com/v1beta1
+kind: PostgresCluster
+metadata:
+  name: custom-envs
+  ownerReferences:
+    - apiVersion: pgv2.percona.com/v2
+      kind: PerconaPGCluster
+      name: custom-envs
+      controller: true
+      blockOwnerDeletion: true
+  finalizers:
+    - postgres-operator.crunchydata.com/finalizer
+status:
+  instances:
+    - name: instance1
+      readyReplicas: 1
+      replicas: 1
+      updatedReplicas: 1
+  observedGeneration: 2
+  pgbackrest:
+    repos:
+      - name: repo1
+        stanzaCreated: true
+  proxy:
+    pgBouncer:
+      readyReplicas: 1
+      replicas: 1
+---
+apiVersion: pgv2.percona.com/v2
+kind: PerconaPGCluster
+metadata:
+  name: custom-envs
+status:
+  pgbouncer:
+    ready: 1
+    size: 1
+  postgres:
+    instances:
+    - name: instance1
+      ready: 1
+      size: 1
+    ready: 1
+    size: 1
+  state: ready
\ No newline at end of file
diff --git a/e2e-tests/tests/custom-envs/03-assert.yaml b/e2e-tests/tests/custom-envs/03-assert.yaml
new file mode 100644
index 000000000..27ac4cd27
--- /dev/null
+++ b/e2e-tests/tests/custom-envs/03-assert.yaml
@@ -0,0 +1,48 @@
+apiVersion: kuttl.dev/v1beta1
+kind: TestAssert
+timeout: 120
+---
+apiVersion: postgres-operator.crunchydata.com/v1beta1
+kind: PostgresCluster
+metadata:
+  name: custom-envs
+  ownerReferences:
+    - apiVersion: pgv2.percona.com/v2
+      kind: PerconaPGCluster
+      name: custom-envs
+      controller: true
+      blockOwnerDeletion: true
+  finalizers:
+    - postgres-operator.crunchydata.com/finalizer
+status:
+  instances:
+    - name: instance1
+      readyReplicas: 1
+      replicas: 1
+      updatedReplicas: 1
+  observedGeneration: 3
+  pgbackrest:
+    repos:
+      - name: repo1
+        stanzaCreated: true
+  proxy:
+    pgBouncer:
+      readyReplicas: 1
+      replicas: 1
+---
+apiVersion: pgv2.percona.com/v2
+kind: PerconaPGCluster
+metadata:
+  name: custom-envs
+status:
+  pgbouncer:
+    ready: 1
+    size: 1
+  postgres:
+    instances:
+    - name: instance1
+      ready: 1
+      size: 1
+    ready: 1
+    size: 1
+  state: ready
\ No newline at end of file
diff --git a/e2e-tests/tests/custom-envs/03-update-env-for-instance.yaml b/e2e-tests/tests/custom-envs/03-update-env-for-instance.yaml
new file mode 100644
index 000000000..1afd19810
--- /dev/null
+++ b/e2e-tests/tests/custom-envs/03-update-env-for-instance.yaml
@@ -0,0 +1,19 @@
+apiVersion: kuttl.dev/v1beta1
+kind: TestStep
+timeout: 10
+commands:
+  - script: |-
+      set -o errexit
+      set -o xtrace
+
+      source ../../functions
+      kubectl -n ${NAMESPACE} get pg custom-envs -o yaml | \
+        yq eval '
+        .spec.instances[].env[] |=
+        (select(.name == "FIRST_ENV").value = "2000")' - | \
+        kubectl apply -f -
+    
+      sleep 10  
+      wait_cluster_consistency custom-envs
+        
+      check_envs_for_component add instance FIRST_ENV=2000 SECOND_ENV=2000
\ No newline at end of file
diff --git a/e2e-tests/tests/custom-envs/04-add-env-secret-to-instance.yaml b/e2e-tests/tests/custom-envs/04-add-env-secret-to-instance.yaml
new file mode 100644
index 000000000..a5a632a4b
--- /dev/null
+++ b/e2e-tests/tests/custom-envs/04-add-env-secret-to-instance.yaml
@@ -0,0 +1,24 @@
+apiVersion: kuttl.dev/v1beta1
+kind: TestStep
+timeout: 20
+commands:
+    - script: |-
+          set -o errexit
+          set -o xtrace
+          
+          source ../../functions
+          
+          # Create a secret
+          kubectl create secret generic instance-env-secret \
+            --from-literal=DB_USER=myuser \
+            --from-literal=DB_PASSWORD='MyS3cretP@ss' \
+            -n "${NAMESPACE}"
+            
+          kubectl get pg custom-envs -n ${NAMESPACE} -o yaml | \
+            yq eval '.spec.instances[].envFrom += [{"secretRef": {"name": "instance-env-secret"}}]' - | \
+            kubectl apply -f -
+
+          sleep 10  
+          wait_cluster_consistency custom-envs
+          check_envs_for_component add instance DB_USER=myuser DB_PASSWORD=MyS3cretP@ss
+
diff --git a/e2e-tests/tests/custom-envs/04-assert.yaml b/e2e-tests/tests/custom-envs/04-assert.yaml
new file mode 100644
index 000000000..98b0d2445
--- /dev/null
+++ b/e2e-tests/tests/custom-envs/04-assert.yaml
@@ -0,0 +1,48 @@
+apiVersion: kuttl.dev/v1beta1
+kind: TestAssert
+timeout: 120
+---
+apiVersion: postgres-operator.crunchydata.com/v1beta1
+kind: PostgresCluster
+metadata:
+  name: custom-envs
+  ownerReferences:
+    - apiVersion: pgv2.percona.com/v2
+      kind: PerconaPGCluster
+      name: custom-envs
+      controller: true
+      blockOwnerDeletion: true
+  finalizers:
+    - postgres-operator.crunchydata.com/finalizer
+status:
+  instances:
+    - name: instance1
+      readyReplicas: 1
+      replicas: 1
+      updatedReplicas: 1
+  observedGeneration: 4
+  pgbackrest:
+    repos:
+      - name: repo1
+        stanzaCreated: true
+  proxy:
+    pgBouncer:
+      readyReplicas: 1
+      replicas: 1
+---
+apiVersion: pgv2.percona.com/v2
+kind: PerconaPGCluster
+metadata:
+  name: custom-envs
+status:
+  pgbouncer:
+    ready: 1
+    size: 1
+  postgres:
+    instances:
+      - name: instance1
+        ready: 1
+        size: 1
+    ready: 1
+    size: 1
+  state: ready
\ No newline at end of file
diff --git a/e2e-tests/tests/custom-envs/05-assert.yaml b/e2e-tests/tests/custom-envs/05-assert.yaml
new file mode 100644
index 000000000..b2e558006
--- /dev/null
+++ b/e2e-tests/tests/custom-envs/05-assert.yaml
@@ -0,0 +1,48 @@
+apiVersion: kuttl.dev/v1beta1
+kind: TestAssert
+timeout: 120
+---
+apiVersion: postgres-operator.crunchydata.com/v1beta1
+kind: PostgresCluster
+metadata:
+  name: custom-envs
+  ownerReferences:
+    - apiVersion: pgv2.percona.com/v2
+      kind: PerconaPGCluster
+      name: custom-envs
+      controller: true
+      blockOwnerDeletion: true
+  finalizers:
+    - postgres-operator.crunchydata.com/finalizer
+status:
+  instances:
+    - name: instance1
+      readyReplicas: 1
+      replicas: 1
+      updatedReplicas: 1
+  observedGeneration: 5
+  pgbackrest:
+    repos:
+      - name: repo1
+        stanzaCreated: true
+  proxy:
+    pgBouncer:
+      readyReplicas: 1
+      replicas: 1
+---
+apiVersion: pgv2.percona.com/v2
+kind: PerconaPGCluster
+metadata:
+  name: custom-envs
+status:
+  pgbouncer:
+    ready: 1
+    size: 1
+  postgres:
+    instances:
+      - name: instance1
+        ready: 1
+        size: 1
+    ready: 1
+    size: 1
+  state: ready
\ No newline at end of file
diff --git a/e2e-tests/tests/custom-envs/05-update-env-in-secret-for-instance.yaml b/e2e-tests/tests/custom-envs/05-update-env-in-secret-for-instance.yaml
new file mode 100644
index 000000000..58ebca0fb
--- /dev/null
+++ b/e2e-tests/tests/custom-envs/05-update-env-in-secret-for-instance.yaml
@@ -0,0 +1,19 @@
+apiVersion: kuttl.dev/v1beta1
+kind: TestStep
+timeout: 20
+commands:
+  - script: |-
+      set -o errexit
+      set -o xtrace
+      
+      source ../../functions  
+  
+      kubectl -n "${NAMESPACE}" patch secret instance-env-secret \
+        --type='merge' \
+        -p "$(echo "{\"data\": {\"DB_NEW_ENV\": \"$(printf %s 'new-value' | base64)\"}}")"
+                             
+                             
+      sleep 10  
+      wait_cluster_consistency custom-envs
+      check_envs_for_component add instance DB_USER=myuser DB_PASSWORD=MyS3cretP@ss DB_NEW_ENV=new-value
+
diff --git a/e2e-tests/tests/custom-envs/06-assert.yaml b/e2e-tests/tests/custom-envs/06-assert.yaml
new file mode 100644
index 000000000..a646ef2df
--- /dev/null
+++ b/e2e-tests/tests/custom-envs/06-assert.yaml
@@ -0,0 +1,48 @@
+apiVersion: kuttl.dev/v1beta1
+kind: TestAssert
+timeout: 120
+---
+apiVersion: postgres-operator.crunchydata.com/v1beta1
+kind: PostgresCluster
+metadata:
+  name: custom-envs
+  ownerReferences:
+    - apiVersion: pgv2.percona.com/v2
+      kind: PerconaPGCluster
+      name: custom-envs
+      controller: true
+      blockOwnerDeletion: true
+  finalizers:
+    - postgres-operator.crunchydata.com/finalizer
+status:
+  instances:
+    - name: instance1
+      readyReplicas: 1
+      replicas: 1
+      updatedReplicas: 1
+  observedGeneration: 6
+  pgbackrest:
+    repos:
+      - name: repo1
+        stanzaCreated: true
+  proxy:
+    pgBouncer:
+      readyReplicas: 1
+      replicas: 1
+---
+apiVersion: pgv2.percona.com/v2
+kind: PerconaPGCluster
+metadata:
+  name: custom-envs
+status:
+  pgbouncer:
+    ready: 1
+    size: 1
+  postgres:
+    instances:
+      - name: instance1
+        ready: 1
+        size: 1
+    ready: 1
+    size: 1
+  state: ready
\ No newline at end of file
diff --git a/e2e-tests/tests/custom-envs/06-update-secret-for-instance.yaml b/e2e-tests/tests/custom-envs/06-update-secret-for-instance.yaml
new file mode 100644
index 000000000..443c98fdc
--- /dev/null
+++ b/e2e-tests/tests/custom-envs/06-update-secret-for-instance.yaml
@@ -0,0 +1,25 @@
+apiVersion: kuttl.dev/v1beta1
+kind: TestStep
+timeout: 30
+commands:
+    - script: |-
+          set -o errexit
+          set -o xtrace
+          
+          source ../../functions
+          
+          # Create new secret with new env vars
+          kubectl create secret generic instance-env-secret-updated \
+            --from-literal=DB_USER_NEW=myuser2 \
+            --from-literal=DB_PASSWORD_NEW='NewS3cretP@ss' \
+            -n "${NAMESPACE}"
+          
+          # Patch the CR to reference the new secret
+          kubectl get pg custom-envs -n ${NAMESPACE} -o yaml | \
+            yq eval '.spec.instances[].envFrom = [{"secretRef": {"name": "instance-env-secret-updated"}}]' - | \
+            kubectl apply -f -
+  
+          sleep 10  
+          wait_cluster_consistency custom-envs
+          check_envs_for_component add instance DB_USER_NEW=myuser2 DB_PASSWORD_NEW=NewS3cretP@ss
+
diff --git a/e2e-tests/tests/custom-envs/07-assert.yaml b/e2e-tests/tests/custom-envs/07-assert.yaml
new file mode 100644
index 000000000..7ad6ad8b4
--- /dev/null
+++ b/e2e-tests/tests/custom-envs/07-assert.yaml
@@ -0,0 +1,48 @@
+apiVersion: kuttl.dev/v1beta1
+kind: TestAssert
+timeout: 120
+---
+apiVersion: postgres-operator.crunchydata.com/v1beta1
+kind: PostgresCluster
+metadata:
+  name: custom-envs
+  ownerReferences:
+    - apiVersion: pgv2.percona.com/v2
+      kind: PerconaPGCluster
+      name: custom-envs
+      controller: true
+      blockOwnerDeletion: true
+  finalizers:
+    - postgres-operator.crunchydata.com/finalizer
+status:
+  instances:
+    - name: instance1
+      readyReplicas: 1
+      replicas: 1
+      updatedReplicas: 1
+  observedGeneration: 7
+  pgbackrest:
+    repos:
+      - name: repo1
+        stanzaCreated: true
+  proxy:
+    pgBouncer:
+      readyReplicas: 1
+      replicas: 1
+---
+apiVersion: pgv2.percona.com/v2
+kind: PerconaPGCluster
+metadata:
+  name: custom-envs
+status:
+  pgbouncer:
+    ready: 1
+    size: 1
+  postgres:
+    instances:
+      - name: instance1
+        ready: 1
+        size: 1
+    ready: 1
+    size: 1
+  state: ready
\ No newline at end of file
diff --git a/e2e-tests/tests/custom-envs/07-delete-env-for-instance.yaml b/e2e-tests/tests/custom-envs/07-delete-env-for-instance.yaml
new file mode 100644
index 000000000..86a1059b6
--- /dev/null
+++ b/e2e-tests/tests/custom-envs/07-delete-env-for-instance.yaml
@@ -0,0 +1,23 @@
+apiVersion: kuttl.dev/v1beta1
+kind: TestStep
+timeout: 10
+commands:
+    - script: |-
+          set -o errexit
+          set -o xtrace
+          
+          source ../../functions
+            
+          kubectl get pg custom-envs -n ${NAMESPACE} -o yaml | \
+            yq eval '
+            .spec.instances[].env |= map(select(.name != "FIRST_ENV" and .name != "SECOND_ENV"))
+            ' - | kubectl apply -f -
+              
+          sleep 20 
+          wait_cluster_consistency custom-envs
+          check_envs_for_component delete instance FIRST_ENV SECOND_ENV
+
+
+          
+
+
diff --git a/e2e-tests/tests/custom-envs/08-assert.yaml b/e2e-tests/tests/custom-envs/08-assert.yaml
new file mode 100644
index 000000000..0610e10a3
--- /dev/null
+++ b/e2e-tests/tests/custom-envs/08-assert.yaml
@@ -0,0 +1,44 @@
+apiVersion: kuttl.dev/v1beta1
+kind: TestAssert
+timeout: 120
+---
+apiVersion: postgres-operator.crunchydata.com/v1beta1
+kind: PostgresCluster
+metadata:
+  name: custom-envs
+  ownerReferences:
+    - apiVersion: pgv2.percona.com/v2
+      kind: PerconaPGCluster
+      name: custom-envs
+      controller: true
+      blockOwnerDeletion: true
+  finalizers:
+    - postgres-operator.crunchydata.com/finalizer
+status:
+  instances:
+    - name: instance1
+      readyReplicas: 1
+      replicas: 1
+      updatedReplicas: 1
+  observedGeneration: 8
+  proxy:
+    pgBouncer:
+      readyReplicas: 1
+      replicas: 1
+---
+apiVersion: pgv2.percona.com/v2
+kind: PerconaPGCluster
+metadata:
+  name: custom-envs
+status:
+  pgbouncer:
+    ready: 1
+    size: 1
+  postgres:
+    instances:
+      - name: instance1
+        ready: 1
+        size: 1
+    ready: 1
+    size: 1
+  state: ready
\ No newline at end of file
diff --git a/e2e-tests/tests/custom-envs/08-delete-secret-for-instance.yaml b/e2e-tests/tests/custom-envs/08-delete-secret-for-instance.yaml
new file mode 100644
index 000000000..1fc3c5e31
--- /dev/null
+++ b/e2e-tests/tests/custom-envs/08-delete-secret-for-instance.yaml
@@ -0,0 +1,20 @@
+apiVersion: kuttl.dev/v1beta1
+kind: TestStep
+timeout: 30
+commands:
+      - script: |-
+              set -o errexit
+              set -o xtrace
+              
+              source ../../functions
+              
+              kubectl get pg custom-envs -n ${NAMESPACE} -o yaml | \
+                yq eval '
+                .spec.instances[].envFrom = []
+                ' - | kubectl apply -f -
+        
+              sleep 10 
+              wait_cluster_consistency custom-envs
+              check_envs_for_component delete instance DB_USER_NEW DB_PASSWORD_NEW
+
+
diff --git a/e2e-tests/tests/custom-envs/09-add-env-to-pgbouncer.yaml b/e2e-tests/tests/custom-envs/09-add-env-to-pgbouncer.yaml
new file mode 100644
index 000000000..ce4360181
--- /dev/null
+++ b/e2e-tests/tests/custom-envs/09-add-env-to-pgbouncer.yaml
@@ -0,0 +1,17 @@
+apiVersion: kuttl.dev/v1beta1
+kind: TestStep
+timeout: 10
+commands:
+  - script: |-
+      set -o errexit
+      set -o xtrace
+
+      source ../../functions
+      kubectl -n "${NAMESPACE}" patch pg custom-envs \
+        --type merge \
+        -p '{"spec":{"proxy":{"pgBouncer":{"replicas":1,"env":[{"name": "FIRST_ENV", "value": "1000"}, {"name": "SECOND_ENV", "value": "2000"}]}}}}'
+          
+      sleep 10  
+      wait_cluster_consistency custom-envs
+        
+      check_envs_for_component add pgbouncer FIRST_ENV=1000 SECOND_ENV=2000
\ No newline at end of file
diff --git a/e2e-tests/tests/custom-envs/09-assert.yaml b/e2e-tests/tests/custom-envs/09-assert.yaml
new file mode 100644
index 000000000..1cd98b27f
--- /dev/null
+++ b/e2e-tests/tests/custom-envs/09-assert.yaml
@@ -0,0 +1,44 @@
+apiVersion: kuttl.dev/v1beta1
+kind: TestAssert
+timeout: 120
+---
+apiVersion: postgres-operator.crunchydata.com/v1beta1
+kind: PostgresCluster
+metadata:
+  name: custom-envs
+  ownerReferences:
+    - apiVersion: pgv2.percona.com/v2
+      kind: PerconaPGCluster
+      name: custom-envs
+      controller: true
+      blockOwnerDeletion: true
+  finalizers:
+    - postgres-operator.crunchydata.com/finalizer
+status:
+  instances:
+    - name: instance1
+      readyReplicas: 1
+      replicas: 1
+      updatedReplicas: 1
+  observedGeneration: 9
+  proxy:
+    pgBouncer:
+      readyReplicas: 1
+      replicas: 1
+---
+apiVersion: pgv2.percona.com/v2
+kind: PerconaPGCluster
+metadata:
+  name: custom-envs
+status:
+  pgbouncer:
+    ready: 1
+    size: 1
+  postgres:
+    instances:
+      - name: instance1
+        ready: 1
+        size: 1
+    ready: 1
+    size: 1
+  state: ready
\ No newline at end of file
diff --git a/e2e-tests/tests/custom-envs/10-assert.yaml b/e2e-tests/tests/custom-envs/10-assert.yaml
new file mode 100644
index 000000000..8f5935fe9
--- /dev/null
+++ b/e2e-tests/tests/custom-envs/10-assert.yaml
@@ -0,0 +1,44 @@
+apiVersion: kuttl.dev/v1beta1
+kind: TestAssert
+timeout: 120
+---
+apiVersion: postgres-operator.crunchydata.com/v1beta1
+kind: PostgresCluster
+metadata:
+  name: custom-envs
+  ownerReferences:
+    - apiVersion: pgv2.percona.com/v2
+      kind: PerconaPGCluster
+      name: custom-envs
+      controller: true
+      blockOwnerDeletion: true
+  finalizers:
+    - postgres-operator.crunchydata.com/finalizer
+status:
+  instances:
+    - name: instance1
+      readyReplicas: 1
+      replicas: 1
+      updatedReplicas: 1
+  observedGeneration: 10
+  proxy:
+    pgBouncer:
+      readyReplicas: 1
+      replicas: 1
+---
+apiVersion: pgv2.percona.com/v2
+kind: PerconaPGCluster
+metadata:
+  name: custom-envs
+status:
+  pgbouncer:
+    ready: 1
+    size: 1
+  postgres:
+    instances:
+      - name: instance1
+        ready: 1
+        size: 1
+    ready: 1
+    size: 1
+  state: ready
\ No newline at end of file
diff --git a/e2e-tests/tests/custom-envs/10-update-env-for-pgbouncer.yaml b/e2e-tests/tests/custom-envs/10-update-env-for-pgbouncer.yaml
new file mode 100644
index 000000000..73de84401
--- /dev/null
+++ b/e2e-tests/tests/custom-envs/10-update-env-for-pgbouncer.yaml
@@ -0,0 +1,21 @@
+apiVersion: kuttl.dev/v1beta1
+kind: TestStep
+timeout: 10
+commands:
+  - script: |-
+      set -o errexit
+      set -o xtrace
+
+      source ../../functions
+
+      kubectl -n "${NAMESPACE}" get pg custom-envs -o yaml | \
+        yq eval '
+          .spec.proxy.pgBouncer.env[] |=
+          (select(.name == "FIRST_ENV").value = "2000")
+        ' - | kubectl apply -f -
+
+      sleep 10
+      wait_cluster_consistency custom-envs
+        
+      check_envs_for_component add pgbouncer FIRST_ENV=2000 SECOND_ENV=2000
+
diff --git a/e2e-tests/tests/custom-envs/11-add-env-secret-to-pgbouncer.yaml b/e2e-tests/tests/custom-envs/11-add-env-secret-to-pgbouncer.yaml
new file mode 100644
index 000000000..fdca41b90
--- /dev/null
+++ b/e2e-tests/tests/custom-envs/11-add-env-secret-to-pgbouncer.yaml
@@ -0,0 +1,23 @@
+apiVersion: kuttl.dev/v1beta1
+kind: TestStep
+timeout: 20
+commands:
+  - script: |-
+      set -o errexit
+      set -o xtrace
+      
+      source ../../functions
+      
+      kubectl create secret generic pgbouncer-env-secret \
+        --from-literal=DB_USER=myuser \
+        --from-literal=DB_PASSWORD='MyS3cretP@ss' \
+        -n "${NAMESPACE}"
+      
+      kubectl get pg custom-envs -n "${NAMESPACE}" -o yaml | \
+        yq eval '
+          .spec.proxy.pgBouncer.envFrom += [{"secretRef": {"name": "pgbouncer-env-secret"}}]
+        ' - | kubectl apply -f -
+
+      sleep 10  
+      wait_cluster_consistency custom-envs
+      check_envs_for_component add pgbouncer DB_USER=myuser DB_PASSWORD=MyS3cretP@ss
diff --git a/e2e-tests/tests/custom-envs/11-assert.yaml b/e2e-tests/tests/custom-envs/11-assert.yaml
new file mode 100644
index 000000000..924bdf878
--- /dev/null
+++ b/e2e-tests/tests/custom-envs/11-assert.yaml
@@ -0,0 +1,44 @@
+apiVersion: kuttl.dev/v1beta1
+kind: TestAssert
+timeout: 120
+---
+apiVersion: postgres-operator.crunchydata.com/v1beta1
+kind: PostgresCluster
+metadata:
+  name: custom-envs
+  ownerReferences:
+    - apiVersion: pgv2.percona.com/v2
+      kind: PerconaPGCluster
+      name: custom-envs
+      controller: true
+      blockOwnerDeletion: true
+  finalizers:
+    - postgres-operator.crunchydata.com/finalizer
+status:
+  instances:
+    - name: instance1
+      readyReplicas: 1
+      replicas: 1
+      updatedReplicas: 1
+  observedGeneration: 11
+  proxy:
+    pgBouncer:
+      readyReplicas: 1
+      replicas: 1
+---
+apiVersion: pgv2.percona.com/v2
+kind: PerconaPGCluster
+metadata:
+  name: custom-envs
+status:
+  pgbouncer:
+    ready: 1
+    size: 1
+  postgres:
+    instances:
+      - name: instance1
+        ready: 1
+        size: 1
+    ready: 1
+    size: 1
+  state: ready
\ No newline at end of file
diff --git a/e2e-tests/tests/custom-envs/12-assert.yaml b/e2e-tests/tests/custom-envs/12-assert.yaml
new file mode 100644
index 000000000..99562c737
--- /dev/null
+++ b/e2e-tests/tests/custom-envs/12-assert.yaml
@@ -0,0 +1,44 @@
+apiVersion: kuttl.dev/v1beta1
+kind: TestAssert
+timeout: 120
+---
+apiVersion: postgres-operator.crunchydata.com/v1beta1
+kind: PostgresCluster
+metadata:
+  name: custom-envs
+  ownerReferences:
+    - apiVersion: pgv2.percona.com/v2
+      kind: PerconaPGCluster
+      name: custom-envs
+      controller: true
+      blockOwnerDeletion: true
+  finalizers:
+    - postgres-operator.crunchydata.com/finalizer
+status:
+  instances:
+    - name: instance1
+      readyReplicas: 1
+      replicas: 1
+      updatedReplicas: 1
+  observedGeneration: 12
+  proxy:
+    pgBouncer:
+      readyReplicas: 1
+      replicas: 1
+---
+apiVersion: pgv2.percona.com/v2
+kind: PerconaPGCluster
+metadata:
+  name: custom-envs
+status:
+  pgbouncer:
+    ready: 1
+    size: 1
+  postgres:
+    instances:
+      - name: instance1
+        ready: 1
+        size: 1
+    ready: 1
+    size: 1
+  state: ready
\ No newline at end of file
diff --git a/e2e-tests/tests/custom-envs/12-update-env-in-secret-for-pgbouncer.yaml b/e2e-tests/tests/custom-envs/12-update-env-in-secret-for-pgbouncer.yaml
new file mode 100644
index 000000000..3348f535e
--- /dev/null
+++ b/e2e-tests/tests/custom-envs/12-update-env-in-secret-for-pgbouncer.yaml
@@ -0,0 +1,18 @@
+apiVersion: kuttl.dev/v1beta1
+kind: TestStep
+timeout: 20
+commands:
+  - script: |-
+      set -o errexit
+      set -o xtrace
+      
+      source ../../functions  
+        
+      kubectl -n "${NAMESPACE}" patch secret pgbouncer-env-secret \
+        --type='merge' \
+        -p "$(printf '{"data":{"DB_NEW_ENV":"%s"}}' "$(printf 'new-value' | base64)")"
+    
+      sleep 10  
+      wait_cluster_consistency custom-envs  
+      check_envs_for_component add pgbouncer DB_USER=myuser DB_PASSWORD=MyS3cretP@ss DB_NEW_ENV=new-value
+
diff --git a/e2e-tests/tests/custom-envs/13-assert.yaml b/e2e-tests/tests/custom-envs/13-assert.yaml
new file mode 100644
index 000000000..64a58fabc
--- /dev/null
+++ b/e2e-tests/tests/custom-envs/13-assert.yaml
@@ -0,0 +1,44 @@
+apiVersion: kuttl.dev/v1beta1
+kind: TestAssert
+timeout: 120
+---
+apiVersion: postgres-operator.crunchydata.com/v1beta1
+kind: PostgresCluster
+metadata:
+  name: custom-envs
+  ownerReferences:
+    - apiVersion: pgv2.percona.com/v2
+      kind: PerconaPGCluster
+      name: custom-envs
+      controller: true
+      blockOwnerDeletion: true
+  finalizers:
+    - postgres-operator.crunchydata.com/finalizer
+status:
+  instances:
+    - name: instance1
+      readyReplicas: 1
+      replicas: 1
+      updatedReplicas: 1
+  observedGeneration: 13
+  proxy:
+    pgBouncer:
+      readyReplicas: 1
+      replicas: 1
+---
+apiVersion: pgv2.percona.com/v2
+kind: PerconaPGCluster
+metadata:
+  name: custom-envs
+status:
+  pgbouncer:
+    ready: 1
+    size: 1
+  postgres:
+    instances:
+      - name: instance1
+        ready: 1
+        size: 1
+    ready: 1
+    size: 1
+  state: ready
\ No newline at end of file
diff --git a/e2e-tests/tests/custom-envs/13-update-secret-for-pgbouncer.yaml b/e2e-tests/tests/custom-envs/13-update-secret-for-pgbouncer.yaml
new file mode 100644
index 000000000..d842902cb
--- /dev/null
+++ b/e2e-tests/tests/custom-envs/13-update-secret-for-pgbouncer.yaml
@@ -0,0 +1,25 @@
+apiVersion: kuttl.dev/v1beta1
+kind: TestStep
+timeout: 30
+commands:
+  - script: |-
+      set -o errexit
+      set -o xtrace
+      
+      source ../../functions
+        
+      kubectl create secret generic pgbouncer-env-secret-updated \
+        --from-literal=DB_USER_NEW=myuser2 \
+        --from-literal=DB_PASSWORD_NEW='NewS3cretP@ss' \
+        -n "${NAMESPACE}"
+    
+
+      kubectl get pg custom-envs -n "${NAMESPACE}" -o yaml | \
+        yq eval '.spec.proxy.pgBouncer.envFrom = [{"secretRef": {"name": "pgbouncer-env-secret-updated"}}]' - | \
+        kubectl apply -f -
+      
+      sleep 10  
+      wait_cluster_consistency custom-envs
+    
+      check_envs_for_component add pgbouncer DB_USER_NEW=myuser2 DB_PASSWORD_NEW=NewS3cretP@ss
+
diff --git a/e2e-tests/tests/custom-envs/14-assert.yaml b/e2e-tests/tests/custom-envs/14-assert.yaml
new file mode 100644
index 000000000..4ea2438b2
--- /dev/null
+++ b/e2e-tests/tests/custom-envs/14-assert.yaml
@@ -0,0 +1,44 @@
+apiVersion: kuttl.dev/v1beta1
+kind: TestAssert
+timeout: 120
+---
+apiVersion: postgres-operator.crunchydata.com/v1beta1
+kind: PostgresCluster
+metadata:
+  name: custom-envs
+  ownerReferences:
+    - apiVersion: pgv2.percona.com/v2
+      kind: PerconaPGCluster
+      name: custom-envs
+      controller: true
+      blockOwnerDeletion: true
+  finalizers:
+    - postgres-operator.crunchydata.com/finalizer
+status:
+  instances:
+    - name: instance1
+      readyReplicas: 1
+      replicas: 1
+      updatedReplicas: 1
+  observedGeneration: 14
+  proxy:
+    pgBouncer:
+      readyReplicas: 1
+      replicas: 1
+---
+apiVersion: pgv2.percona.com/v2
+kind: PerconaPGCluster
+metadata:
+  name: custom-envs
+status:
+  pgbouncer:
+    ready: 1
+    size: 1
+  postgres:
+    instances:
+      - name: instance1
+        ready: 1
+        size: 1
+    ready: 1
+    size: 1
+  state: ready
\ No newline at end of file
diff --git a/e2e-tests/tests/custom-envs/14-delete-env-for-pgbouncer.yaml b/e2e-tests/tests/custom-envs/14-delete-env-for-pgbouncer.yaml
new file mode 100644
index 000000000..26db73832
--- /dev/null
+++ b/e2e-tests/tests/custom-envs/14-delete-env-for-pgbouncer.yaml
@@ -0,0 +1,22 @@
+apiVersion: kuttl.dev/v1beta1
+kind: TestStep
+timeout: 10
+commands:
+  - script: |-
+      set -o errexit
+      set -o xtrace
+      
+      source ../../functions
+       
+      kubectl -n "${NAMESPACE}" get pg custom-envs -o yaml | \
+        yq eval '
+        .spec.proxy.pgBouncer.env |= map(select(.name != "FIRST_ENV" and .name != "SECOND_ENV"))
+        ' - | kubectl apply -f -
+          
+          
+          
+      sleep 30 
+      wait_cluster_consistency custom-envs
+        
+      check_envs_for_component delete pgbouncer FIRST_ENV SECOND_ENV
+
diff --git a/e2e-tests/tests/custom-envs/15-assert.yaml b/e2e-tests/tests/custom-envs/15-assert.yaml
new file mode 100644
index 000000000..8561612fd
--- /dev/null
+++ b/e2e-tests/tests/custom-envs/15-assert.yaml
@@ -0,0 +1,44 @@
+apiVersion: kuttl.dev/v1beta1
+kind: TestAssert
+timeout: 120
+---
+apiVersion: postgres-operator.crunchydata.com/v1beta1
+kind: PostgresCluster
+metadata:
+  name: custom-envs
+  ownerReferences:
+    - apiVersion: pgv2.percona.com/v2
+      kind: PerconaPGCluster
+      name: custom-envs
+      controller: true
+      blockOwnerDeletion: true
+  finalizers:
+    - postgres-operator.crunchydata.com/finalizer
+status:
+  instances:
+    - name: instance1
+      readyReplicas: 1
+      replicas: 1
+      updatedReplicas: 1
+  observedGeneration: 15
+  proxy:
+    pgBouncer:
+      readyReplicas: 1
+      replicas: 1
+---
+apiVersion: pgv2.percona.com/v2
+kind: PerconaPGCluster
+metadata:
+  name: custom-envs
+status:
+  pgbouncer:
+    ready: 1
+    size: 1
+  postgres:
+    instances:
+      - name: instance1
+        ready: 1
+        size: 1
+    ready: 1
+    size: 1
+  state: ready
\ No newline at end of file
diff --git a/e2e-tests/tests/custom-envs/15-delete-secret-for-pgbouncer.yaml b/e2e-tests/tests/custom-envs/15-delete-secret-for-pgbouncer.yaml
new file mode 100644
index 000000000..dcfccae96
--- /dev/null
+++ b/e2e-tests/tests/custom-envs/15-delete-secret-for-pgbouncer.yaml
@@ -0,0 +1,20 @@
+apiVersion: kuttl.dev/v1beta1
+kind: TestStep
+timeout: 30
+commands:
+  - script: |-
+      set -o errexit
+      set -o xtrace
+      
+      source ../../functions
+      
+      kubectl get pg custom-envs -n "${NAMESPACE}" -o yaml | \
+        yq eval '
+        .spec.proxy.pgBouncer.envFrom = []
+        ' - | kubectl apply -f -
+
+      sleep 10 
+      wait_cluster_consistency custom-envs
+        
+      check_envs_for_component delete pgbouncer DB_USER_NEW DB_PASSWORD_NEW
+
diff --git a/e2e-tests/tests/custom-envs/16-add-env-to-repohost.yaml b/e2e-tests/tests/custom-envs/16-add-env-to-repohost.yaml
new file mode 100644
index 000000000..c7d7d894a
--- /dev/null
+++ b/e2e-tests/tests/custom-envs/16-add-env-to-repohost.yaml
@@ -0,0 +1,18 @@
+apiVersion: kuttl.dev/v1beta1
+kind: TestStep
+timeout: 10
+commands:
+  - script: |-
+      set -o errexit
+      set -o xtrace
+
+      source ../../functions
+        
+      kubectl -n "${NAMESPACE}" patch pg custom-envs \
+        --type merge \
+        -p '{"spec":{"backups":{"pgbackrest":{"env":[{"name": "FIRST_ENV", "value": "1000"}, {"name": "SECOND_ENV", "value": "2000"}]}}}}'
+    
+      sleep 20  
+      wait_cluster_consistency custom-envs 
+      check_envs_for_component add repohost FIRST_ENV=1000 SECOND_ENV=2000
+
diff --git a/e2e-tests/tests/custom-envs/16-assert.yaml b/e2e-tests/tests/custom-envs/16-assert.yaml
new file mode 100644
index 000000000..d340d9d4d
--- /dev/null
+++ b/e2e-tests/tests/custom-envs/16-assert.yaml
@@ -0,0 +1,44 @@
+apiVersion: kuttl.dev/v1beta1
+kind: TestAssert
+timeout: 120
+---
+apiVersion: postgres-operator.crunchydata.com/v1beta1
+kind: PostgresCluster
+metadata:
+  name: custom-envs
+  ownerReferences:
+    - apiVersion: pgv2.percona.com/v2
+      kind: PerconaPGCluster
+      name: custom-envs
+      controller: true
+      blockOwnerDeletion: true
+  finalizers:
+    - postgres-operator.crunchydata.com/finalizer
+status:
+  instances:
+    - name: instance1
+      readyReplicas: 1
+      replicas: 1
+      updatedReplicas: 1
+  observedGeneration: 16
+  proxy:
+    pgBouncer:
+      readyReplicas: 1
+      replicas: 1
+---
+apiVersion: pgv2.percona.com/v2
+kind: PerconaPGCluster
+metadata:
+  name: custom-envs
+status:
+  pgbouncer:
+    ready: 1
+    size: 1
+  postgres:
+    instances:
+      - name: instance1
+        ready: 1
+        size: 1
+    ready: 1
+    size: 1
+  state: ready
\ No newline at end of file
diff --git a/e2e-tests/tests/custom-envs/17-assert.yaml b/e2e-tests/tests/custom-envs/17-assert.yaml
new file mode 100644
index 000000000..743d45fad
--- /dev/null
+++ b/e2e-tests/tests/custom-envs/17-assert.yaml
@@ -0,0 +1,44 @@
+apiVersion: kuttl.dev/v1beta1
+kind: TestAssert
+timeout: 120
+---
+apiVersion: postgres-operator.crunchydata.com/v1beta1
+kind: PostgresCluster
+metadata:
+  name: custom-envs
+  ownerReferences:
+    - apiVersion: pgv2.percona.com/v2
+      kind: PerconaPGCluster
+      name: custom-envs
+      controller: true
+      blockOwnerDeletion: true
+  finalizers:
+    - postgres-operator.crunchydata.com/finalizer
+status:
+  instances:
+    - name: instance1
+      readyReplicas: 1
+      replicas: 1
+      updatedReplicas: 1
+  observedGeneration: 17
+  proxy:
+    pgBouncer:
+      readyReplicas: 1
+      replicas: 1
+---
+apiVersion: pgv2.percona.com/v2
+kind: PerconaPGCluster
+metadata:
+  name: custom-envs
+status:
+  pgbouncer:
+    ready: 1
+    size: 1
+  postgres:
+    instances:
+      - name: instance1
+        ready: 1
+        size: 1
+    ready: 1
+    size: 1
+  state: ready
\ No newline at end of file
diff --git a/e2e-tests/tests/custom-envs/17-update-env-for-repohost.yaml b/e2e-tests/tests/custom-envs/17-update-env-for-repohost.yaml
new file mode 100644
index 000000000..7a70e4055
--- /dev/null
+++ b/e2e-tests/tests/custom-envs/17-update-env-for-repohost.yaml
@@ -0,0 +1,20 @@
+apiVersion: kuttl.dev/v1beta1
+kind: TestStep
+timeout: 10
+commands:
+  - script: |-
+      set -o errexit
+      set -o xtrace
+
+      source ../../functions
+      kubectl -n ${NAMESPACE} get pg custom-envs -o yaml | \
+        yq eval '
+        .spec.backups.pgbackrest.env[] |=
+        (select(.name == "FIRST_ENV").value = "2000")' - | \
+        kubectl apply -f -
+        
+      sleep 30  
+      wait_cluster_consistency custom-envs
+        
+      check_envs_for_component add repohost FIRST_ENV=2000 SECOND_ENV=2000
+
diff --git a/e2e-tests/tests/custom-envs/18-add-env-secret-to-repohost.yaml b/e2e-tests/tests/custom-envs/18-add-env-secret-to-repohost.yaml
new file mode 100644
index 000000000..b30bd2720
--- /dev/null
+++ b/e2e-tests/tests/custom-envs/18-add-env-secret-to-repohost.yaml
@@ -0,0 +1,23 @@
+apiVersion: kuttl.dev/v1beta1
+kind: TestStep
+timeout: 20
+commands:
+  - script: |-
+      set -o errexit
+      set -o xtrace
+      
+      source ../../functions
+      
+      kubectl create secret generic repo-host-env-secret \
+        --from-literal=DB_USER=myuser \
+        --from-literal=DB_PASSWORD='MyS3cretP@ss' \
+        -n "${NAMESPACE}"
+      
+      kubectl get pg custom-envs -n ${NAMESPACE} -o yaml | \
+        yq eval '.spec.backups.pgbackrest.envFrom += [{"secretRef": {"name": "repo-host-env-secret"}}]' - | \
+        kubectl apply -f -
+
+      sleep 60  
+      wait_cluster_consistency custom-envs
+        
+      check_envs_for_component add repohost DB_USER=myuser DB_PASSWORD=MyS3cretP@ss
diff --git a/e2e-tests/tests/custom-envs/18-assert.yaml b/e2e-tests/tests/custom-envs/18-assert.yaml
new file mode 100644
index 000000000..36ecbfa9e
--- /dev/null
+++ b/e2e-tests/tests/custom-envs/18-assert.yaml
@@ -0,0 +1,44 @@
+apiVersion: kuttl.dev/v1beta1
+kind: TestAssert
+timeout: 120
+---
+apiVersion: postgres-operator.crunchydata.com/v1beta1
+kind: PostgresCluster
+metadata:
+  name: custom-envs
+  ownerReferences:
+    - apiVersion: pgv2.percona.com/v2
+      kind: PerconaPGCluster
+      name: custom-envs
+      controller: true
+      blockOwnerDeletion: true
+  finalizers:
+    - postgres-operator.crunchydata.com/finalizer
+status:
+  instances:
+    - name: instance1
+      readyReplicas: 1
+      replicas: 1
+      updatedReplicas: 1
+  observedGeneration: 18
+  proxy:
+    pgBouncer:
+      readyReplicas: 1
+      replicas: 1
+---
+apiVersion: pgv2.percona.com/v2
+kind: PerconaPGCluster
+metadata:
+  name: custom-envs
+status:
+  pgbouncer:
+    ready: 1
+    size: 1
+  postgres:
+    instances:
+      - name: instance1
+        ready: 1
+        size: 1
+    ready: 1
+    size: 1
+  state: ready
\ No newline at end of file
diff --git a/e2e-tests/tests/custom-envs/19-assert.yaml b/e2e-tests/tests/custom-envs/19-assert.yaml
new file mode 100644
index 000000000..2af2f2d19
--- /dev/null
+++ b/e2e-tests/tests/custom-envs/19-assert.yaml
@@ -0,0 +1,44 @@
+apiVersion: kuttl.dev/v1beta1
+kind: TestAssert
+timeout: 120
+---
+apiVersion: postgres-operator.crunchydata.com/v1beta1
+kind: PostgresCluster
+metadata:
+  name: custom-envs
+  ownerReferences:
+    - apiVersion: pgv2.percona.com/v2
+      kind: PerconaPGCluster
+      name: custom-envs
+      controller: true
+      blockOwnerDeletion: true
+  finalizers:
+    - postgres-operator.crunchydata.com/finalizer
+status:
+  instances:
+    - name: instance1
+      readyReplicas: 1
+      replicas: 1
+      updatedReplicas: 1
+  observedGeneration: 19
+  proxy:
+    pgBouncer:
+      readyReplicas: 1
+      replicas: 1
+---
+apiVersion: pgv2.percona.com/v2
+kind: PerconaPGCluster
+metadata:
+  name: custom-envs
+status:
+  pgbouncer:
+    ready: 1
+    size: 1
+  postgres:
+    instances:
+      - name: instance1
+        ready: 1
+        size: 1
+    ready: 1
+    size: 1
+  state: ready
\ No newline at end of file
diff --git a/e2e-tests/tests/custom-envs/19-update-env-in-secret-for-repohost.yaml b/e2e-tests/tests/custom-envs/19-update-env-in-secret-for-repohost.yaml
new file mode 100644
index 000000000..3479113c2
--- /dev/null
+++ b/e2e-tests/tests/custom-envs/19-update-env-in-secret-for-repohost.yaml
@@ -0,0 +1,20 @@
+apiVersion: kuttl.dev/v1beta1
+kind: TestStep
+timeout: 20
+commands:
+  - script: |-
+      set -o errexit
+      set -o xtrace
+      
+      source ../../functions  
+        
+      kubectl -n "${NAMESPACE}" patch secret repo-host-env-secret \
+        --type='merge' \
+        -p "$(printf '{"data":{"DB_NEW_ENV":"%s"}}' "$(printf 'new-value' | base64)")"
+    
+    
+      sleep 60  
+      wait_cluster_consistency custom-envs  
+        
+      check_envs_for_component add repohost DB_USER=myuser DB_PASSWORD=MyS3cretP@ss DB_NEW_ENV=new-value
+
diff --git a/e2e-tests/tests/custom-envs/20-assert.yaml b/e2e-tests/tests/custom-envs/20-assert.yaml
new file mode 100644
index 000000000..f5b272baa
--- /dev/null
+++ b/e2e-tests/tests/custom-envs/20-assert.yaml
@@ -0,0 +1,44 @@
+apiVersion: kuttl.dev/v1beta1
+kind: TestAssert
+timeout: 120
+---
+apiVersion: postgres-operator.crunchydata.com/v1beta1
+kind: PostgresCluster
+metadata:
+  name: custom-envs
+  ownerReferences:
+    - apiVersion: pgv2.percona.com/v2
+      kind: PerconaPGCluster
+      name: custom-envs
+      controller: true
+      blockOwnerDeletion: true
+  finalizers:
+    - postgres-operator.crunchydata.com/finalizer
+status:
+  instances:
+    - name: instance1
+      readyReplicas: 1
+      replicas: 1
+      updatedReplicas: 1
+  observedGeneration: 20
+  proxy:
+    pgBouncer:
+      readyReplicas: 1
+      replicas: 1
+---
+apiVersion: pgv2.percona.com/v2
+kind: PerconaPGCluster
+metadata:
+  name: custom-envs
+status:
+  pgbouncer:
+    ready: 1
+    size: 1
+  postgres:
+    instances:
+      - name: instance1
+        ready: 1
+        size: 1
+    ready: 1
+    size: 1
+  state: ready
\ No newline at end of file
diff --git a/e2e-tests/tests/custom-envs/20-update-secret-for-repohost.yaml b/e2e-tests/tests/custom-envs/20-update-secret-for-repohost.yaml
new file mode 100644
index 000000000..bcea8259b
--- /dev/null
+++ b/e2e-tests/tests/custom-envs/20-update-secret-for-repohost.yaml
@@ -0,0 +1,27 @@
+apiVersion: kuttl.dev/v1beta1
+kind: TestStep
+timeout: 30
+commands:
+  - script: |-
+      set -o errexit
+      set -o xtrace
+      
+      source ../../functions
+        
+      kubectl create secret generic repo-host-env-secret-updated \
+        --from-literal=DB_USER_NEW=myuser2 \
+        --from-literal=DB_PASSWORD_NEW='NewS3cretP@ss' \
+        -n "${NAMESPACE}"
+    
+
+      kubectl get pg custom-envs -n "${NAMESPACE}" -o yaml | \
+        yq eval '.spec.backups.pgbackrest.envFrom += [{"secretRef": {"name": "repo-host-env-secret-updated"}}]' - | \
+        kubectl apply -f -
+
+
+      sleep 60  
+      wait_cluster_consistency custom-envs
+        
+      check_envs_for_component add repohost DB_USER_NEW=myuser2 DB_PASSWORD_NEW=NewS3cretP@ss
+      
+
diff --git a/e2e-tests/tests/custom-envs/21-assert.yaml b/e2e-tests/tests/custom-envs/21-assert.yaml
new file mode 100644
index 000000000..a90cfff6f
--- /dev/null
+++ b/e2e-tests/tests/custom-envs/21-assert.yaml
@@ -0,0 +1,44 @@
+apiVersion: kuttl.dev/v1beta1
+kind: TestAssert
+timeout: 120
+---
+apiVersion: postgres-operator.crunchydata.com/v1beta1
+kind: PostgresCluster
+metadata:
+  name: custom-envs
+  ownerReferences:
+    - apiVersion: pgv2.percona.com/v2
+      kind: PerconaPGCluster
+      name: custom-envs
+      controller: true
+      blockOwnerDeletion: true
+  finalizers:
+    - postgres-operator.crunchydata.com/finalizer
+status:
+  instances:
+    - name: instance1
+      readyReplicas: 1
+      replicas: 1
+      updatedReplicas: 1
+  observedGeneration: 21
+  proxy:
+    pgBouncer:
+      readyReplicas: 1
+      replicas: 1
+---
+apiVersion: pgv2.percona.com/v2
+kind: PerconaPGCluster
+metadata:
+  name: custom-envs
+status:
+  pgbouncer:
+    ready: 1
+    size: 1
+  postgres:
+    instances:
+      - name: instance1
+        ready: 1
+        size: 1
+    ready: 1
+    size: 1
+  state: ready
\ No newline at end of file
diff --git a/e2e-tests/tests/custom-envs/21-delete-env-for-repohost.yaml b/e2e-tests/tests/custom-envs/21-delete-env-for-repohost.yaml
new file mode 100644
index 000000000..35d220629
--- /dev/null
+++ b/e2e-tests/tests/custom-envs/21-delete-env-for-repohost.yaml
@@ -0,0 +1,21 @@
+apiVersion: kuttl.dev/v1beta1
+kind: TestStep
+timeout: 10
+commands:
+  - script: |-
+      set -o errexit
+      set -o xtrace
+      
+      source ../../functions
+        
+      kubectl -n ${NAMESPACE} get pg custom-envs -o yaml | \
+        yq eval '
+        .spec.backups.pgbackrest.env |= map(select(.name != "FIRST_ENV" and .name != "SECOND_ENV"))
+        ' - | kubectl apply -f -
+          
+          
+      sleep 60 
+      wait_cluster_consistency custom-envs
+        
+      check_envs_for_component delete repohost FIRST_ENV SECOND_ENV
+
diff --git a/e2e-tests/tests/custom-envs/22-assert.yaml b/e2e-tests/tests/custom-envs/22-assert.yaml
new file mode 100644
index 000000000..f1aa497c7
--- /dev/null
+++ b/e2e-tests/tests/custom-envs/22-assert.yaml
@@ -0,0 +1,44 @@
+apiVersion: kuttl.dev/v1beta1
+kind: TestAssert
+timeout: 120
+---
+apiVersion: postgres-operator.crunchydata.com/v1beta1
+kind: PostgresCluster
+metadata:
+  name: custom-envs
+  ownerReferences:
+    - apiVersion: pgv2.percona.com/v2
+      kind: PerconaPGCluster
+      name: custom-envs
+      controller: true
+      blockOwnerDeletion: true
+  finalizers:
+    - postgres-operator.crunchydata.com/finalizer
+status:
+  instances:
+    - name: instance1
+      readyReplicas: 1
+      replicas: 1
+      updatedReplicas: 1
+  observedGeneration: 22
+  proxy:
+    pgBouncer:
+      readyReplicas: 1
+      replicas: 1
+---
+apiVersion: pgv2.percona.com/v2
+kind: PerconaPGCluster
+metadata:
+  name: custom-envs
+status:
+  pgbouncer:
+    ready: 1
+    size: 1
+  postgres:
+    instances:
+      - name: instance1
+        ready: 1
+        size: 1
+    ready: 1
+    size: 1
+  state: ready
\ No newline at end of file
diff --git a/e2e-tests/tests/custom-envs/22-delete-secret-for-repohost.yaml b/e2e-tests/tests/custom-envs/22-delete-secret-for-repohost.yaml
new file mode 100644
index 000000000..6cd7535b5
--- /dev/null
+++ b/e2e-tests/tests/custom-envs/22-delete-secret-for-repohost.yaml
@@ -0,0 +1,19 @@
+apiVersion: kuttl.dev/v1beta1
+kind: TestStep
+timeout: 30
+commands:
+  - script: |-
+      set -o errexit
+      set -o xtrace
+      
+      source ../../functions
+      
+      kubectl get pg custom-envs -n ${NAMESPACE} -o yaml | \
+        yq eval '
+        .spec.backups.pgbackrest.envFrom = []
+        ' - | kubectl apply -f -
+
+      sleep 60 
+      wait_cluster_consistency custom-envs
+        
+      check_envs_for_component delete repohost DB_USER_NEW DB_PASSWORD_NEW
\ No newline at end of file
diff --git a/e2e-tests/tests/custom-envs/99-remove-cluster-gracefully.yaml b/e2e-tests/tests/custom-envs/99-remove-cluster-gracefully.yaml
new file mode 100644
index 000000000..74eca2688
--- /dev/null
+++ b/e2e-tests/tests/custom-envs/99-remove-cluster-gracefully.yaml
@@ -0,0 +1,21 @@
+apiVersion: kuttl.dev/v1beta1
+kind: TestStep
+delete:
+- apiVersion: pgv2.percona.com/v2
+  kind: PerconaPGCluster
+  metadata:
+    name: one-pod
+- apiVersion: postgres-operator.crunchydata.com/v1beta1
+  kind: PostgresCluster
+  metadata:
+    name: one-pod
+commands:
+  - script: |-
+      set -o errexit
+      set -o xtrace
+
+      source ../../functions
+
+      remove_all_finalizers
+      destroy_operator
+    timeout: 60