diff --git a/robottelo/hosts.py b/robottelo/hosts.py
index b4e4fdcc0cd..0abe5f93b12 100644
--- a/robottelo/hosts.py
+++ b/robottelo/hosts.py
@@ -108,7 +108,9 @@ def get_sat_rhel_version():
     return Version(rhel_version)
 
 
-def setup_capsule(satellite, capsule, org, registration_args=None, installation_args=None):
+def setup_capsule(
+    satellite, capsule, org, registration_args=None, installation_args=None, enable_fapolicyd=False
+):
     """Given satellite and capsule instances, run the commands needed to set up the capsule
 
     Note: This does not perform content setup actions on the Satellite
@@ -152,6 +154,9 @@ def setup_capsule(satellite, capsule, org, registration_args=None, installation_
     )
     capsule.install_katello_ca(satellite)
     capsule.register_contenthost(**registration_args)
+    if enable_fapolicyd:
+        capsule.execute('dnf -y install fapolicyd && systemctl enable --now fapolicyd').status == 0
+        capsule.execute('rpm -q foreman-proxy-fapolicyd').status == 0
     return capsule.install(cmd_args)
 
 
diff --git a/tests/foreman/installer/test_installer.py b/tests/foreman/installer/test_installer.py
index c8268fd3882..c13c43e87b6 100644
--- a/tests/foreman/installer/test_installer.py
+++ b/tests/foreman/installer/test_installer.py
@@ -1347,7 +1347,7 @@ def common_sat_install_assertions(satellite):
     assert 'FAIL' not in result.stdout
 
 
-def install_satellite(satellite, installer_args):
+def install_satellite(satellite, installer_args, enable_fapolicyd=False):
     # Register for RHEL8 repos, get Ohsnap repofile, and enable and download satellite
     satellite.register_to_cdn()
     satellite.download_repofile(
@@ -1355,6 +1355,10 @@ def install_satellite(satellite, installer_args):
         release=settings.server.version.release,
         snap=settings.server.version.snap,
     )
+    if enable_fapolicyd:
+        satellite.execute('dnf -y install fapolicyd && systemctl enable --now fapolicyd').status == 0
+        satellite.execute('rpm -q foreman-fapolicyd').status == 0
+        satellite.execute('rpm -q foreman-proxy-fapolicyd').status == 0
     satellite.execute('dnf -y module enable satellite:el8 && dnf -y install satellite')
     # Configure Satellite firewall to open communication
     satellite.execute(
@@ -1380,15 +1384,18 @@ def sat_default_install(module_sat_ready_rhels):
 
 
 @pytest.fixture(scope='module')
-def sat_non_default_install(module_sat_ready_rhels):
+def sat_non_default_install(request, module_sat_ready_rhels):
     """Install Satellite with various options"""
+    enable_fapolicyd = False
+    if hasattr(request, 'param'):
+        enable_fapolicyd = request.param
     installer_args = [
         'scenario satellite',
         f'foreman-initial-admin-password {settings.server.admin_password}',
         'foreman-rails-cache-store type:file',
         'foreman-proxy-content-pulpcore-hide-guarded-distributions false',
     ]
-    install_satellite(module_sat_ready_rhels[1], installer_args)
+    install_satellite(module_sat_ready_rhels[1], installer_args, enable_fapolicyd=enable_fapolicyd)
     yield module_sat_ready_rhels[1]
     common_sat_install_assertions(module_sat_ready_rhels[1])
 
@@ -1396,8 +1403,14 @@ def sat_non_default_install(module_sat_ready_rhels):
 @pytest.mark.e2e
 @pytest.mark.tier1
 @pytest.mark.pit_client
-def test_capsule_installation(sat_default_install, cap_ready_rhel, default_org):
-    """Run a basic Capsule installation
+@pytest.mark.parametrize(
+    "enable_fapolicyd",
+    [True, False],
+    indirect=True,
+    ids=['fapolicyd_enabled', 'fapolicyd_disabled'],
+)
+def test_capsule_installation(sat_default_install, cap_ready_rhel, default_org, enable_fapolicyd):
+    """Run a basic Capsule installation w/ and w/o fapolicyd
 
     :id: 64fa85b6-96e6-4fea-bea4-a30539d59e65
 
@@ -1428,7 +1441,7 @@ def test_capsule_installation(sat_default_install, cap_ready_rhel, default_org):
     org = sat_default_install.api.Organization().search(query={'search': f'name="{DEFAULT_ORG}"'})[
         0
     ]
-    setup_capsule(sat_default_install, cap_ready_rhel, org)
+    setup_capsule(sat_default_install, cap_ready_rhel, org, enable_fapolicyd=enable_fapolicyd)
     assert sat_default_install.api.Capsule().search(
         query={'search': f'name={cap_ready_rhel.hostname}'}
     )[0]
@@ -1461,8 +1474,14 @@ def test_capsule_installation(sat_default_install, cap_ready_rhel, default_org):
 
 @pytest.mark.e2e
 @pytest.mark.tier1
+@pytest.mark.parametrize(
+    "sat_non_default_install",
+    [True, False],
+    indirect=True,
+    ids=['fapolicyd_enabled', 'fapolicyd_disabled'],
+)
 def test_foreman_rails_cache_store(sat_non_default_install):
-    """Test foreman-rails-cache-store option
+    """Test foreman-rails-cache-store option. Also tests installation w/ and w/o fapolicyd.
 
     :id: 379a2fe8-1085-4a7f-8ac3-24c421412f12