diff --git a/cmd/operator-controller/main.go b/cmd/operator-controller/main.go
index 48104537e9..5c953d05cc 100644
--- a/cmd/operator-controller/main.go
+++ b/cmd/operator-controller/main.go
@@ -30,6 +30,7 @@ import (
 
 	"github.com/spf13/cobra"
 	"go.podman.io/image/v5/types"
+	corev1 "k8s.io/api/core/v1"
 	rbacv1 "k8s.io/api/rbac/v1"
 	apiextensionsv1 "k8s.io/apiextensions-apiserver/pkg/apis/apiextensions/v1"
 	apiextensionsv1client "k8s.io/apiextensions-apiserver/pkg/client/clientset/clientset/typed/apiextensions/v1"
@@ -697,8 +698,13 @@ func (c *boxcutterReconcilerConfigurator) Configure(ceReconciler *controllers.Cl
 		return fmt.Errorf("unable to create revision engine factory: %w", err)
 	}
 
+	cosClient := &secretFallbackClient{
+		Client:          c.mgr.GetClient(),
+		apiReader:       c.mgr.GetAPIReader(),
+		systemNamespace: cfg.systemNamespace,
+	}
 	if err = (&controllers.ClusterObjectSetReconciler{
-		Client:                c.mgr.GetClient(),
+		Client:                cosClient,
 		RevisionEngineFactory: revisionEngineFactory,
 		TrackingCache:         trackingCache,
 	}).SetupWithManager(c.mgr); err != nil {
@@ -791,3 +797,18 @@ func main() {
 		os.Exit(1)
 	}
 }
+
+// secretFallbackClient wraps a cached client.Client and falls back to direct
+// API reads for Secrets outside the system namespace, where the cache does not watch.
+type secretFallbackClient struct {
+	client.Client
+	apiReader       client.Reader
+	systemNamespace string
+}
+
+func (c *secretFallbackClient) Get(ctx context.Context, key client.ObjectKey, obj client.Object, opts ...client.GetOption) error {
+	if _, isSecret := obj.(*corev1.Secret); isSecret && key.Namespace != c.systemNamespace {
+		return c.apiReader.Get(ctx, key, obj, opts...)
+	}
+	return c.Client.Get(ctx, key, obj, opts...)
+}
diff --git a/helm/olmv1/templates/rbac/clusterrole-operator-controller-manager-role.yml b/helm/olmv1/templates/rbac/clusterrole-operator-controller-manager-role.yml
index d6f9e87909..1d096c82b5 100644
--- a/helm/olmv1/templates/rbac/clusterrole-operator-controller-manager-role.yml
+++ b/helm/olmv1/templates/rbac/clusterrole-operator-controller-manager-role.yml
@@ -86,6 +86,12 @@ rules:
     verbs:
       - list
       - watch
+  - apiGroups:
+      - ""
+    resources:
+      - secrets
+    verbs:
+      - get
   - apiGroups:
       - olm.operatorframework.io
     resources:
diff --git a/manifests/experimental-e2e.yaml b/manifests/experimental-e2e.yaml
index dcb4fac364..4d44532303 100644
--- a/manifests/experimental-e2e.yaml
+++ b/manifests/experimental-e2e.yaml
@@ -2167,6 +2167,12 @@ rules:
     verbs:
       - list
       - watch
+  - apiGroups:
+      - ""
+    resources:
+      - secrets
+    verbs:
+      - get
   - apiGroups:
       - olm.operatorframework.io
     resources:
diff --git a/manifests/experimental.yaml b/manifests/experimental.yaml
index dc9a02a4f9..7f5d7c53a8 100644
--- a/manifests/experimental.yaml
+++ b/manifests/experimental.yaml
@@ -2128,6 +2128,12 @@ rules:
     verbs:
       - list
       - watch
+  - apiGroups:
+      - ""
+    resources:
+      - secrets
+    verbs:
+      - get
   - apiGroups:
       - olm.operatorframework.io
     resources:
diff --git a/test/e2e/features/revision.feature b/test/e2e/features/revision.feature
index d07e3fb198..dd6d9e9407 100644
--- a/test/e2e/features/revision.feature
+++ b/test/e2e/features/revision.feature
@@ -338,4 +338,108 @@ Feature: Install ClusterObjectSet
     And resource "pod/test-pod" is installed
     And resource "configmap/test-configmap-3" is installed
     And ClusterObjectSet "${COS_NAME}" reports Progressing as True with Reason Succeeded
-    And ClusterObjectSet "${COS_NAME}" reports Available as True with Reason ProbesSucceeded
\ No newline at end of file
+    And ClusterObjectSet "${COS_NAME}" reports Available as True with Reason ProbesSucceeded
+
+  Scenario: User can install a ClusterObjectSet with objects stored in Secrets
+    Given ServiceAccount "olm-sa" with needed permissions is available in test namespace
+    When resource is applied
+      """
+      apiVersion: v1
+      kind: Secret
+      metadata:
+        name: ${COS_NAME}-ref-secret
+        namespace: ${TEST_NAMESPACE}
+      immutable: true
+      type: olm.operatorframework.io/object-data
+      stringData:
+        configmap: |
+          {
+            "apiVersion": "v1",
+            "kind": "ConfigMap",
+            "metadata": {
+              "name": "test-configmap-ref",
+              "namespace": "${TEST_NAMESPACE}"
+            },
+            "data": {
+              "key": "value"
+            }
+          }
+        deployment: |
+          {
+            "apiVersion": "apps/v1",
+            "kind": "Deployment",
+            "metadata": {
+              "name": "test-httpd",
+              "namespace": "${TEST_NAMESPACE}",
+              "labels": {
+                "app": "test-httpd"
+              }
+            },
+            "spec": {
+              "replicas": 1,
+              "selector": {
+                "matchLabels": {
+                  "app": "test-httpd"
+                }
+              },
+              "template": {
+                "metadata": {
+                  "labels": {
+                    "app": "test-httpd"
+                  }
+                },
+                "spec": {
+                  "containers": [
+                    {
+                      "name": "httpd",
+                      "image": "busybox:1.36",
+                      "imagePullPolicy": "IfNotPresent",
+                      "command": ["httpd"],
+                      "args": ["-f", "-p", "8080"],
+                      "securityContext": {
+                        "runAsNonRoot": true,
+                        "runAsUser": 1000,
+                        "allowPrivilegeEscalation": false,
+                        "capabilities": {
+                          "drop": ["ALL"]
+                        },
+                        "seccompProfile": {
+                          "type": "RuntimeDefault"
+                        }
+                      }
+                    }
+                  ]
+                }
+              }
+            }
+          }
+      """
+    And ClusterObjectSet is applied
+      """
+      apiVersion: olm.operatorframework.io/v1
+      kind: ClusterObjectSet
+      metadata:
+        annotations:
+          olm.operatorframework.io/service-account-name: olm-sa
+          olm.operatorframework.io/service-account-namespace: ${TEST_NAMESPACE}
+        name: ${COS_NAME}
+      spec:
+        lifecycleState: Active
+        collisionProtection: Prevent
+        phases:
+        - name: resources
+          objects:
+          - ref:
+              name: ${COS_NAME}-ref-secret
+              namespace: ${TEST_NAMESPACE}
+              key: configmap
+          - ref:
+              name: ${COS_NAME}-ref-secret
+              namespace: ${TEST_NAMESPACE}
+              key: deployment
+        revision: 1
+      """
+    Then ClusterObjectSet "${COS_NAME}" reports Progressing as True with Reason Succeeded
+    And ClusterObjectSet "${COS_NAME}" reports Available as True with Reason ProbesSucceeded
+    And resource "configmap/test-configmap-ref" is installed
+    And resource "deployment/test-httpd" is installed
\ No newline at end of file
diff --git a/test/e2e/steps/hooks.go b/test/e2e/steps/hooks.go
index ccce95efc5..5d73bcbed2 100644
--- a/test/e2e/steps/hooks.go
+++ b/test/e2e/steps/hooks.go
@@ -22,8 +22,9 @@ import (
 )
 
 type resource struct {
-	name string
-	kind string
+	name      string
+	kind      string
+	namespace string
 }
 
 type scenarioContext struct {
@@ -195,8 +196,12 @@ func ScenarioCleanup(ctx context.Context, _ *godog.Scenario, err error) (context
 	forDeletion = append(forDeletion, resource{name: sc.namespace, kind: "namespace"})
 	for _, r := range forDeletion {
 		go func(res resource) {
-			if _, err := k8sClient("delete", res.kind, res.name, "--ignore-not-found=true"); err != nil {
-				logger.Info("Error deleting resource", "name", res.name, "namespace", sc.namespace, "stderr", stderrOutput(err))
+			args := []string{"delete", res.kind, res.name, "--ignore-not-found=true"}
+			if res.namespace != "" {
+				args = append(args, "-n", res.namespace)
+			}
+			if _, err := k8sClient(args...); err != nil {
+				logger.Info("Error deleting resource", "name", res.name, "namespace", res.namespace, "stderr", stderrOutput(err))
 			}
 		}(r)
 	}
diff --git a/test/e2e/steps/steps.go b/test/e2e/steps/steps.go
index a55d50c6a9..2b5603ab79 100644
--- a/test/e2e/steps/steps.go
+++ b/test/e2e/steps/steps.go
@@ -310,6 +310,16 @@ func ResourceIsApplied(ctx context.Context, yamlTemplate *godog.DocString) error
 		sc.clusterExtensionName = res.GetName()
 	} else if res.GetKind() == "ClusterObjectSet" {
 		sc.clusterObjectSetName = res.GetName()
+	} else {
+		namespace := res.GetNamespace()
+		if namespace == "" {
+			namespace = sc.namespace
+		}
+		sc.addedResources = append(sc.addedResources, resource{
+			name:      res.GetName(),
+			kind:      strings.ToLower(res.GetKind()),
+			namespace: namespace,
+		})
 	}
 	return nil
 }