diff --git a/bootstrap/templates/kubernetes/apps/system-upgrade/kustomization.yaml.j2 b/bootstrap/templates/kubernetes/apps/system-upgrade/kustomization.yaml.j2
new file mode 100644
index 00000000..9647fd04
--- /dev/null
+++ b/bootstrap/templates/kubernetes/apps/system-upgrade/kustomization.yaml.j2
@@ -0,0 +1,6 @@
+---
+apiVersion: kustomize.config.k8s.io/v1beta1
+kind: Kustomization
+resources:
+  - ./namespace.yaml
+  - ./system-upgrade-controller/ks.yaml
diff --git a/bootstrap/templates/kubernetes/apps/system-upgrade/namespace.yaml.j2 b/bootstrap/templates/kubernetes/apps/system-upgrade/namespace.yaml.j2
new file mode 100644
index 00000000..5ea024dd
--- /dev/null
+++ b/bootstrap/templates/kubernetes/apps/system-upgrade/namespace.yaml.j2
@@ -0,0 +1,7 @@
+---
+apiVersion: v1
+kind: Namespace
+metadata:
+  name: system-upgrade
+  labels:
+    kustomize.toolkit.fluxcd.io/prune: disabled
diff --git a/bootstrap/templates/kubernetes/apps/system-upgrade/app/helmrelease.yaml.j2 b/bootstrap/templates/kubernetes/apps/system-upgrade/system-upgrade-controller/app/helmrelease.yaml.j2
similarity index 100%
rename from bootstrap/templates/kubernetes/apps/system-upgrade/app/helmrelease.yaml.j2
rename to bootstrap/templates/kubernetes/apps/system-upgrade/system-upgrade-controller/app/helmrelease.yaml.j2
diff --git a/bootstrap/templates/kubernetes/apps/system-upgrade/app/kustomization.yaml.j2 b/bootstrap/templates/kubernetes/apps/system-upgrade/system-upgrade-controller/app/kustomization.yaml.j2
similarity index 100%
rename from bootstrap/templates/kubernetes/apps/system-upgrade/app/kustomization.yaml.j2
rename to bootstrap/templates/kubernetes/apps/system-upgrade/system-upgrade-controller/app/kustomization.yaml.j2
diff --git a/bootstrap/templates/kubernetes/apps/system-upgrade/app/rbac.yaml.j2 b/bootstrap/templates/kubernetes/apps/system-upgrade/system-upgrade-controller/app/rbac.yaml.j2
similarity index 100%
rename from bootstrap/templates/kubernetes/apps/system-upgrade/app/rbac.yaml.j2
rename to bootstrap/templates/kubernetes/apps/system-upgrade/system-upgrade-controller/app/rbac.yaml.j2
diff --git a/bootstrap/templates/kubernetes/apps/system-upgrade/ks.yaml.j2 b/bootstrap/templates/kubernetes/apps/system-upgrade/system-upgrade-controller/ks.yaml.j2
similarity index 100%
rename from bootstrap/templates/kubernetes/apps/system-upgrade/ks.yaml.j2
rename to bootstrap/templates/kubernetes/apps/system-upgrade/system-upgrade-controller/ks.yaml.j2
diff --git a/bootstrap/templates/kubernetes/apps/system-upgrade/plans/k3s.yaml.j2 b/bootstrap/templates/kubernetes/apps/system-upgrade/system-upgrade-controller/plans/k3s.yaml.j2
similarity index 100%
rename from bootstrap/templates/kubernetes/apps/system-upgrade/plans/k3s.yaml.j2
rename to bootstrap/templates/kubernetes/apps/system-upgrade/system-upgrade-controller/plans/k3s.yaml.j2
diff --git a/bootstrap/templates/kubernetes/apps/system-upgrade/plans/kustomization.yaml.j2 b/bootstrap/templates/kubernetes/apps/system-upgrade/system-upgrade-controller/plans/kustomization.yaml.j2
similarity index 100%
rename from bootstrap/templates/kubernetes/apps/system-upgrade/plans/kustomization.yaml.j2
rename to bootstrap/templates/kubernetes/apps/system-upgrade/system-upgrade-controller/plans/kustomization.yaml.j2
diff --git a/bootstrap/templates/kubernetes/apps/system-upgrade/plans/talos.yaml.j2 b/bootstrap/templates/kubernetes/apps/system-upgrade/system-upgrade-controller/plans/talos.yaml.j2
similarity index 100%
rename from bootstrap/templates/kubernetes/apps/system-upgrade/plans/talos.yaml.j2
rename to bootstrap/templates/kubernetes/apps/system-upgrade/system-upgrade-controller/plans/talos.yaml.j2