diff --git a/deploy/fake-gpu-operator/templates/status-updater/deployment.yaml b/deploy/fake-gpu-operator/templates/status-updater/deployment.yaml
index b3284a29..8fbc8022 100644
--- a/deploy/fake-gpu-operator/templates/status-updater/deployment.yaml
+++ b/deploy/fake-gpu-operator/templates/status-updater/deployment.yaml
@@ -38,6 +38,8 @@ spec:
               value: "{{ .Values.environment.resourceReservationNamespace }}"
             - name: PROMETHEUS_URL
               value: "{{ .Values.prometheus.url }}"
+            - name: DISABLE_NODE_LABELING
+              value: "{{ .Values.statusUpdater.disableNodeLabeling }}"
       restartPolicy: Always
       serviceAccountName: status-updater
       imagePullSecrets:
diff --git a/deploy/fake-gpu-operator/values.yaml b/deploy/fake-gpu-operator/values.yaml
index 10320900..9226dc24 100644
--- a/deploy/fake-gpu-operator/values.yaml
+++ b/deploy/fake-gpu-operator/values.yaml
@@ -22,6 +22,7 @@ devicePlugin:
 
 statusUpdater:
   enabled: true
+  disableNodeLabeling: false
   image:
     pullPolicy: Always
     repository: ghcr.io/run-ai/fake-gpu-operator/status-updater
diff --git a/internal/common/constants/constants.go b/internal/common/constants/constants.go
index 341b896b..b011024b 100644
--- a/internal/common/constants/constants.go
+++ b/internal/common/constants/constants.go
@@ -26,4 +26,5 @@ const (
 	EnvFakeGpuOperatorNs            = "FAKE_GPU_OPERATOR_NAMESPACE"
 	EnvResourceReservationNamespace = "RESOURCE_RESERVATION_NAMESPACE"
 	EnvPrometheusURL                = "PROMETHEUS_URL"
+	EnvDisableNodeLabeling          = "DISABLE_NODE_LABELING"
 )
diff --git a/internal/status-updater/app.go b/internal/status-updater/app.go
index e6d4fd9a..91496d27 100644
--- a/internal/status-updater/app.go
+++ b/internal/status-updater/app.go
@@ -30,6 +30,7 @@ type StatusUpdaterAppConfiguration struct {
 	TopologyCmName      string `mapstructure:"TOPOLOGY_CM_NAME" validate:"required"`
 	TopologyCmNamespace string `mapstructure:"TOPOLOGY_CM_NAMESPACE" validate:"required"`
 	PrometheusURL       string `mapstructure:"PROMETHEUS_URL"`
+	DisableNodeLabeling bool   `mapstructure:"DISABLE_NODE_LABELING"`
 }
 
 type StatusUpdaterApp struct {
@@ -67,8 +68,10 @@ func (app *StatusUpdaterApp) Init(stopCh chan struct{}) {
 	app.kubeClient = KubeClientFn(clusterConfig)
 	dynamicClient := DynamicClientFn(clusterConfig)
 
+	disableNodeLabeling := viper.GetBool(constants.EnvDisableNodeLabeling)
+
 	app.Controllers = append(app.Controllers, podcontroller.NewPodController(app.kubeClient, dynamicClient, app.wg))
-	app.Controllers = append(app.Controllers, nodecontroller.NewNodeController(app.kubeClient, app.wg))
+	app.Controllers = append(app.Controllers, nodecontroller.NewNodeController(app.kubeClient, app.wg, disableNodeLabeling))
 }
 
 func (app *StatusUpdaterApp) Name() string {
diff --git a/internal/status-updater/controllers/node/controller.go b/internal/status-updater/controllers/node/controller.go
index bbb5c5d1..35e049cb 100644
--- a/internal/status-updater/controllers/node/controller.go
+++ b/internal/status-updater/controllers/node/controller.go
@@ -36,7 +36,7 @@ type NodeController struct {
 
 var _ controllers.Interface = &NodeController{}
 
-func NewNodeController(kubeClient kubernetes.Interface, wg *sync.WaitGroup) *NodeController {
+func NewNodeController(kubeClient kubernetes.Interface, wg *sync.WaitGroup, disableNodeLabeling bool) *NodeController {
 	clusterTopology, err := topology.GetClusterTopologyFromCM(kubeClient)
 	if err != nil {
 		log.Fatalf("Failed to get cluster topology: %v", err)
@@ -45,7 +45,7 @@ func NewNodeController(kubeClient kubernetes.Interface, wg *sync.WaitGroup) *Nod
 	c := &NodeController{
 		kubeClient:      kubeClient,
 		informer:        informers.NewSharedInformerFactory(kubeClient, 0).Core().V1().Nodes().Informer(),
-		handler:         nodehandler.NewNodeHandler(kubeClient, clusterTopology),
+		handler:         nodehandler.NewNodeHandler(kubeClient, clusterTopology, disableNodeLabeling),
 		clusterTopology: clusterTopology,
 	}
 
diff --git a/internal/status-updater/handlers/node/handler.go b/internal/status-updater/handlers/node/handler.go
index 74cd8987..b15842b6 100644
--- a/internal/status-updater/handlers/node/handler.go
+++ b/internal/status-updater/handlers/node/handler.go
@@ -19,14 +19,16 @@ type NodeHandler struct {
 	kubeClient kubernetes.Interface
 
 	clusterTopology *topology.ClusterTopology
+	disableLabeling bool
 }
 
 var _ Interface = &NodeHandler{}
 
-func NewNodeHandler(kubeClient kubernetes.Interface, clusterTopology *topology.ClusterTopology) *NodeHandler {
+func NewNodeHandler(kubeClient kubernetes.Interface, clusterTopology *topology.ClusterTopology, disableLabeling bool) *NodeHandler {
 	return &NodeHandler{
 		kubeClient:      kubeClient,
 		clusterTopology: clusterTopology,
+		disableLabeling: disableLabeling,
 	}
 }
 
@@ -38,6 +40,11 @@ func (p *NodeHandler) HandleAdd(node *v1.Node) error {
 		return fmt.Errorf("failed to create node topology ConfigMap: %w", err)
 	}
 
+	if p.disableLabeling {
+		log.Printf("Skipping node labeling for %s (disabled via config)\n", node.Name)
+		return nil
+	}
+
 	err = p.labelNode(node)
 	if err != nil {
 		return fmt.Errorf("failed to label node: %w", err)
@@ -54,6 +61,11 @@ func (p *NodeHandler) HandleDelete(node *v1.Node) error {
 		return fmt.Errorf("failed to delete node topology: %w", err)
 	}
 
+	if p.disableLabeling {
+		log.Printf("Skipping node unlabeling for %s (disabled via config)\n", node.Name)
+		return nil
+	}
+
 	err = p.unlabelNode(node)
 	if err != nil {
 		return fmt.Errorf("failed to unlabel node: %w", err)