diff --git a/charts/rancher-turtles/questions.yml b/charts/rancher-turtles/questions.yml
index 5dc50faa..de56875a 100644
--- a/charts/rancher-turtles/questions.yml
+++ b/charts/rancher-turtles/questions.yml
@@ -59,8 +59,8 @@ questions:
     label: "Enable RKE2 Provider"
     type: boolean
   - variable: rancherTurtles.features.propagate-labels.enabled
-    default: true
-    description: "Specify that the labels from CAPI should be propagated to Rancher"
+    default: false
+    description: "(Experimental) Specify that the labels from CAPI should be propagated to Rancher"
     type: boolean
     label: Propagate CAPI Labels
     group: "Rancher Turtles Features Settings"
diff --git a/charts/rancher-turtles/values.yaml b/charts/rancher-turtles/values.yaml
index e3b51d89..eeb603bd 100644
--- a/charts/rancher-turtles/values.yaml
+++ b/charts/rancher-turtles/values.yaml
@@ -19,7 +19,7 @@ rancherTurtles:
     managementv3-cluster:
       enabled: false
     propagate-labels:
-      enabled: true
+      enabled: false
     etcd-snapshot-restore:
       enabled: false
     addon-provider-fleet:
diff --git a/feature/feature.go b/feature/feature.go
index b51ae208..0c2b2e4a 100644
--- a/feature/feature.go
+++ b/feature/feature.go
@@ -44,6 +44,6 @@ func init() {
 var defaultGates = map[featuregate.Feature]featuregate.FeatureSpec{
 	RancherKubeSecretPatch: {Default: false, PreRelease: featuregate.Beta},
 	ManagementV3Cluster:    {Default: false, PreRelease: featuregate.Beta},
-	PropagateLabels:        {Default: true, PreRelease: featuregate.Beta},
+	PropagateLabels:        {Default: false, PreRelease: featuregate.Beta},
 	EtcdSnapshotRestore:    {Default: false, PreRelease: featuregate.Beta},
 }
diff --git a/internal/controllers/suite_test.go b/internal/controllers/suite_test.go
index 7c872d3a..fded6f00 100644
--- a/internal/controllers/suite_test.go
+++ b/internal/controllers/suite_test.go
@@ -23,6 +23,7 @@ import (
 
 	. "github.com/onsi/ginkgo/v2"
 	. "github.com/onsi/gomega"
+	"github.com/rancher/turtles/feature"
 	"github.com/rancher/turtles/internal/test/helpers"
 	"k8s.io/client-go/kubernetes/scheme"
 	ctrl "sigs.k8s.io/controller-runtime"
@@ -50,6 +51,12 @@ var (
 	ctx             = ctrl.SetupSignalHandler()
 )
 
+func init() {
+	utilruntime.Must(feature.MutableGates.SetFromMap(map[string]bool{
+		string(feature.PropagateLabels): true,
+	}))
+}
+
 func setup() {
 	utilruntime.Must(clusterv1.AddToScheme(scheme.Scheme))
 	utilruntime.Must(operatorv1.AddToScheme(scheme.Scheme))