diff --git a/pytest_fixtures/core/sat_cap_factory.py b/pytest_fixtures/core/sat_cap_factory.py
index ea88852f86a..d4e48a73ed4 100644
--- a/pytest_fixtures/core/sat_cap_factory.py
+++ b/pytest_fixtures/core/sat_cap_factory.py
@@ -199,8 +199,11 @@ def large_capsule_configured(large_capsule_host, target_sat):
 @pytest.fixture(scope='module')
 def module_capsule_configured(request, module_capsule_host, module_target_sat):
     """Configure the capsule instance with the satellite from settings.server.hostname"""
-    if not request.config.option.n_minus:
+    if not any([request.config.option.n_minus, 'build_sanity' in request.config.option.markexpr]):
         module_capsule_host.capsule_setup(sat_host=module_target_sat)
+    # The capsule is being set here by capsule installation test of `test_installer.py` for sanity
+    if 'build_sanity' in request.config.option.markexpr:
+        return Capsule.get_host_by_hostname(settings.capsule.hostname)
     return module_capsule_host
 
 
diff --git a/pytest_fixtures/core/xdist.py b/pytest_fixtures/core/xdist.py
index 216589e85d7..9e58e61fb47 100644
--- a/pytest_fixtures/core/xdist.py
+++ b/pytest_fixtures/core/xdist.py
@@ -6,7 +6,7 @@
 import pytest
 
 from robottelo.config import configure_airgun, configure_nailgun, settings
-from robottelo.hosts import Satellite
+from robottelo.hosts import Capsule, Satellite
 from robottelo.logging import logger
 
 
@@ -16,12 +16,18 @@ def align_to_satellite(request, worker_id, satellite_factory):
     if 'build_sanity' in request.config.option.markexpr:
         settings.set("server.hostname", None)
         yield
+        # Checkout Sanity Satellite finally
         if settings.server.hostname:
             sanity_sat = Satellite(settings.server.hostname)
             sanity_sat.unregister()
             if settings.server.auto_checkin:
                 broker_sat = Satellite.get_host_by_hostname(sanity_sat.hostname)
                 Broker(hosts=[broker_sat]).checkin()
+        # Checkout Sanity Capsule finally
+        if settings.capsule.hostname:
+            sanity_cap = Capsule.get_host_by_hostname(settings.server.hostname)
+            sanity_cap.unregister()
+            Broker(hosts=[sanity_cap]).checkin()
     else:
         # clear any hostname that may have been previously set
         settings.set("server.hostname", None)
diff --git a/tests/foreman/api/test_capsulecontent.py b/tests/foreman/api/test_capsulecontent.py
index f8467f32d24..8b18a7a4cbd 100644
--- a/tests/foreman/api/test_capsulecontent.py
+++ b/tests/foreman/api/test_capsulecontent.py
@@ -575,6 +575,8 @@ def test_positive_iso_library_sync(
         assert set(sat_isos) == set(caps_isos)
 
     @pytest.mark.tier4
+    @pytest.mark.build_sanity
+    @pytest.mark.order(after="tests/foreman/installer/test_installer.py::test_capsule_installation")
     @pytest.mark.skip_if_not_set('capsule', 'fake_manifest')
     def test_positive_on_demand_sync(
         self,
diff --git a/tests/foreman/installer/test_installer.py b/tests/foreman/installer/test_installer.py
index 02669f63dd2..5ae141361a8 100644
--- a/tests/foreman/installer/test_installer.py
+++ b/tests/foreman/installer/test_installer.py
@@ -316,7 +316,7 @@ def sat_non_default_install(module_sat_ready_rhels):
     'setting_update', [f'http_proxy={settings.http_proxy.un_auth_proxy_url}'], indirect=True
 )
 def test_capsule_installation(
-    sat_fapolicyd_install, cap_ready_rhel, module_sca_manifest, setting_update
+    pytestconfig, sat_fapolicyd_install, cap_ready_rhel, module_sca_manifest, setting_update
 ):
     """Run a basic Capsule installation with fapolicyd
 
@@ -411,6 +411,11 @@ def test_capsule_installation(
     port_result = cap_ready_rhel.execute("ss -tuln | grep 8443")
     assert not port_result.stdout
 
+    # Setup Capsule Hostname for further sanity caspule testing
+    if 'build_sanity' in pytestconfig.option.markexpr:
+        settings.capsule.hostname = cap_ready_rhel.hostname
+        cap_ready_rhel._skip_context_checkin = True
+
 
 @pytest.mark.e2e
 @pytest.mark.tier1