diff --git a/test/e2e/data/e2e_conf.yaml b/test/e2e/data/e2e_conf.yaml
index 8d74e57969..0c384f0db7 100644
--- a/test/e2e/data/e2e_conf.yaml
+++ b/test/e2e/data/e2e_conf.yaml
@@ -154,6 +154,15 @@ providers:
     replacements:
     - old: "imagePullPolicy: Always"
       new: "imagePullPolicy: IfNotPresent"
+  # This is only for clusterctl upgrade tests, latest stable release of major version v1.0
+  - name: v1.0.2
+    value: ../../../../cluster-api-provider-openstack/test/infrastructure/openstack-resource-controller/config/upgrade-from
+    contract: v1beta1
+    files:
+    - sourcePath: "../data/shared/openstack-resource-controller/metadata.yaml"
+    replacements:
+    - old: "imagePullPolicy: Always"
+      new: "imagePullPolicy: IfNotPresent"
 
 
 # default variables for the e2e test; those values could be overridden via env variables, thus
diff --git a/test/e2e/suites/e2e/clusterctl_upgrade_test.go b/test/e2e/suites/e2e/clusterctl_upgrade_test.go
index ec11037f1a..39e622761a 100644
--- a/test/e2e/suites/e2e/clusterctl_upgrade_test.go
+++ b/test/e2e/suites/e2e/clusterctl_upgrade_test.go
@@ -36,7 +36,7 @@ var (
 	capiRelease19  string
 )
 
-var _ = Describe("When testing clusterctl upgrades (v0.11=>current) [clusterctl-upgrade]", func() {
+var _ = Describe("When testing clusterctl upgrades for CAPO (v0.11=>current) and ORC (v1.0.2=>current) [clusterctl-upgrade]", func() {
 	BeforeEach(func(ctx context.Context) {
 		setDownloadE2EImageEnvVar()
 		// Note: This gives the version without the 'v' prefix, so we need to add it below.
@@ -51,25 +51,26 @@ var _ = Describe("When testing clusterctl upgrades (v0.11=>current) [clusterctl-
 
 	capi_e2e.ClusterctlUpgradeSpec(context.TODO(), func() capi_e2e.ClusterctlUpgradeSpecInput {
 		return capi_e2e.ClusterctlUpgradeSpecInput{
-			E2EConfig:                       e2eCtx.E2EConfig,
-			ClusterctlConfigPath:            e2eCtx.Environment.ClusterctlConfigPath,
-			BootstrapClusterProxy:           e2eCtx.Environment.BootstrapClusterProxy,
-			ArtifactFolder:                  e2eCtx.Settings.ArtifactFolder,
-			SkipCleanup:                     false,
-			InitWithBinary:                  "https://github.com/kubernetes-sigs/cluster-api/releases/download/" + capiRelease19 + "/clusterctl-{OS}-{ARCH}",
-			InitWithProvidersContract:       "v1beta1",
-			InitWithInfrastructureProviders: []string{"openstack:" + capoRelease011},
-			InitWithCoreProvider:            "cluster-api:" + capiRelease19,
-			InitWithBootstrapProviders:      []string{"kubeadm:" + capiRelease19},
-			InitWithControlPlaneProviders:   []string{"kubeadm:" + capiRelease19},
-			MgmtFlavor:                      shared.FlavorDefault,
-			WorkloadFlavor:                  shared.FlavorDefault,
-			InitWithKubernetesVersion:       e2eCtx.E2EConfig.MustGetVariable(shared.KubernetesVersion),
+			E2EConfig:                         e2eCtx.E2EConfig,
+			ClusterctlConfigPath:              e2eCtx.Environment.ClusterctlConfigPath,
+			BootstrapClusterProxy:             e2eCtx.Environment.BootstrapClusterProxy,
+			ArtifactFolder:                    e2eCtx.Settings.ArtifactFolder,
+			SkipCleanup:                       false,
+			InitWithBinary:                    "https://github.com/kubernetes-sigs/cluster-api/releases/download/" + capiRelease19 + "/clusterctl-{OS}-{ARCH}",
+			InitWithProvidersContract:         "v1beta1",
+			InitWithInfrastructureProviders:   []string{"openstack:" + capoRelease011},
+			InitWithCoreProvider:              "cluster-api:" + capiRelease19,
+			InitWithBootstrapProviders:        []string{"kubeadm:" + capiRelease19},
+			InitWithControlPlaneProviders:     []string{"kubeadm:" + capiRelease19},
+			MgmtFlavor:                        shared.FlavorDefault,
+			WorkloadFlavor:                    shared.FlavorDefault,
+			InitWithKubernetesVersion:         e2eCtx.E2EConfig.MustGetVariable(shared.KubernetesVersion),
+			InitWithRuntimeExtensionProviders: []string{"openstack-resource-controller:v1.0.2"},
 		}
 	})
 })
 
-var _ = Describe("When testing clusterctl upgrades (v0.12=>current) [clusterctl-upgrade]", func() {
+var _ = Describe("When testing clusterctl upgrades for CAPO (v0.12=>current) and ORC (v1.0.2=>current)[clusterctl-upgrade]", func() {
 	BeforeEach(func(ctx context.Context) {
 		setDownloadE2EImageEnvVar()
 		// Note: This gives the version without the 'v' prefix, so we need to add it below.
@@ -84,20 +85,21 @@ var _ = Describe("When testing clusterctl upgrades (v0.12=>current) [clusterctl-
 
 	capi_e2e.ClusterctlUpgradeSpec(context.TODO(), func() capi_e2e.ClusterctlUpgradeSpecInput {
 		return capi_e2e.ClusterctlUpgradeSpecInput{
-			E2EConfig:                       e2eCtx.E2EConfig,
-			ClusterctlConfigPath:            e2eCtx.Environment.ClusterctlConfigPath,
-			BootstrapClusterProxy:           e2eCtx.Environment.BootstrapClusterProxy,
-			ArtifactFolder:                  e2eCtx.Settings.ArtifactFolder,
-			SkipCleanup:                     false,
-			InitWithBinary:                  "https://github.com/kubernetes-sigs/cluster-api/releases/download/" + capiRelease19 + "/clusterctl-{OS}-{ARCH}",
-			InitWithProvidersContract:       "v1beta1",
-			InitWithInfrastructureProviders: []string{"openstack:" + capoRelease012},
-			InitWithCoreProvider:            "cluster-api:" + capiRelease19,
-			InitWithBootstrapProviders:      []string{"kubeadm:" + capiRelease19},
-			InitWithControlPlaneProviders:   []string{"kubeadm:" + capiRelease19},
-			MgmtFlavor:                      shared.FlavorDefault,
-			WorkloadFlavor:                  shared.FlavorDefault,
-			InitWithKubernetesVersion:       e2eCtx.E2EConfig.MustGetVariable(shared.KubernetesVersion),
+			E2EConfig:                         e2eCtx.E2EConfig,
+			ClusterctlConfigPath:              e2eCtx.Environment.ClusterctlConfigPath,
+			BootstrapClusterProxy:             e2eCtx.Environment.BootstrapClusterProxy,
+			ArtifactFolder:                    e2eCtx.Settings.ArtifactFolder,
+			SkipCleanup:                       false,
+			InitWithBinary:                    "https://github.com/kubernetes-sigs/cluster-api/releases/download/" + capiRelease19 + "/clusterctl-{OS}-{ARCH}",
+			InitWithProvidersContract:         "v1beta1",
+			InitWithInfrastructureProviders:   []string{"openstack:" + capoRelease012},
+			InitWithCoreProvider:              "cluster-api:" + capiRelease19,
+			InitWithBootstrapProviders:        []string{"kubeadm:" + capiRelease19},
+			InitWithControlPlaneProviders:     []string{"kubeadm:" + capiRelease19},
+			MgmtFlavor:                        shared.FlavorDefault,
+			WorkloadFlavor:                    shared.FlavorDefault,
+			InitWithKubernetesVersion:         e2eCtx.E2EConfig.MustGetVariable(shared.KubernetesVersion),
+			InitWithRuntimeExtensionProviders: []string{"openstack-resource-controller:v1.0.2"},
 		}
 	})
 })
diff --git a/test/infrastructure/openstack-resource-controller/config/upgrade-from/kustomization.yaml b/test/infrastructure/openstack-resource-controller/config/upgrade-from/kustomization.yaml
new file mode 100644
index 0000000000..23cecd5454
--- /dev/null
+++ b/test/infrastructure/openstack-resource-controller/config/upgrade-from/kustomization.yaml
@@ -0,0 +1,12 @@
+apiVersion: kustomize.config.k8s.io/v1beta1
+kind: Kustomization
+
+labels:
+# openstack-resource-controller is not a provider, but by adding this label
+# we can get this installed by Cluster APIs Tiltfile and by the clusterctl machinery we use in E2E tests.
+- pairs:
+    cluster.x-k8s.io/provider: "runtime-extension-openstack-resource-controller"
+
+resources:
+# latest stable release of major version v1.0
+- https://github.com/k-orc/openstack-resource-controller/releases/download/v1.0.2/install.yaml