diff --git a/conf/capsule.yaml.template b/conf/capsule.yaml.template
index 9ef9e48a2c2..b618bf57ea9 100644
--- a/conf/capsule.yaml.template
+++ b/conf/capsule.yaml.template
@@ -1,4 +1,6 @@
 CAPSULE:
+  # Capsule hostname for N-minus testing
+  HOSTNAME:
   VERSION:
     # The full release version (6.9.2)
     RELEASE:  # populate with capsule version
diff --git a/conf/dynaconf_hooks.py b/conf/dynaconf_hooks.py
index 6d09d6e5bec..610f0ba4c4d 100644
--- a/conf/dynaconf_hooks.py
+++ b/conf/dynaconf_hooks.py
@@ -85,9 +85,9 @@ def get_ohsnap_repos(settings):
         settings,
         repo='capsule',
         product='capsule',
-        release=settings.server.version.release,
-        os_release=settings.server.version.rhel_version,
-        snap=settings.server.version.snap,
+        release=settings.capsule.version.release,
+        os_release=settings.capsule.version.rhel_version,
+        snap=settings.capsule.version.snap,
     )
 
     data['SATELLITE_REPO'] = get_ohsnap_repo_url(
diff --git a/conftest.py b/conftest.py
index 42682d76249..7645728a06c 100644
--- a/conftest.py
+++ b/conftest.py
@@ -21,6 +21,7 @@
     'pytest_plugins.requirements.update_requirements',
     'pytest_plugins.sanity_plugin',
     'pytest_plugins.video_cleanup',
+    'pytest_plugins.capsule_n-minus',
     # Fixtures
     'pytest_fixtures.core.broker',
     'pytest_fixtures.core.sat_cap_factory',
diff --git a/pytest_fixtures/core/sat_cap_factory.py b/pytest_fixtures/core/sat_cap_factory.py
index c63a70e4d19..0c23b1ee4d2 100644
--- a/pytest_fixtures/core/sat_cap_factory.py
+++ b/pytest_fixtures/core/sat_cap_factory.py
@@ -1,4 +1,5 @@
 from contextlib import contextmanager
+from functools import lru_cache
 
 from broker import Broker
 from packaging.version import Version
@@ -37,13 +38,29 @@ def _target_satellite_host(request, satellite_factory):
         yield
 
 
+@lru_cache
+def cached_capsule_cdn_register(hostname=None):
+    cap = Capsule.get_host_by_hostname(hostname=hostname)
+    cap.enable_capsule_downstream_repos()
+
+
 @contextmanager
 def _target_capsule_host(request, capsule_factory):
-    if 'sanity' not in request.config.option.markexpr:
+    if 'sanity' not in request.config.option.markexpr and not request.config.option.n_minus:
         new_cap = capsule_factory()
         yield new_cap
         new_cap.teardown()
         Broker(hosts=[new_cap]).checkin()
+    elif request.config.option.n_minus:
+        if not settings.capsule.hostname:
+            hosts = Capsule.get_hosts_from_inventory(filter="'cap' in @inv.name")
+            settings.capsule.hostname = hosts[0].hostname
+            cap = hosts[0]
+        else:
+            cap = Capsule.get_host_by_hostname(settings.capsule.hostname)
+        # Capsule needs RHEL contents for some tests
+        cached_capsule_cdn_register(hostname=settings.capsule.hostname)
+        yield cap
     else:
         yield
 
@@ -162,9 +179,10 @@ def session_capsule_host(request, capsule_factory):
 
 
 @pytest.fixture
-def capsule_configured(capsule_host, target_sat):
+def capsule_configured(request, capsule_host, target_sat):
     """Configure the capsule instance with the satellite from settings.server.hostname"""
-    capsule_host.capsule_setup(sat_host=target_sat)
+    if not request.config.option.n_minus:
+        capsule_host.capsule_setup(sat_host=target_sat)
     return capsule_host
 
 
@@ -176,21 +194,23 @@ def large_capsule_configured(large_capsule_host, target_sat):
 
 
 @pytest.fixture(scope='module')
-def module_capsule_configured(module_capsule_host, module_target_sat):
+def module_capsule_configured(request, module_capsule_host, module_target_sat):
     """Configure the capsule instance with the satellite from settings.server.hostname"""
-    module_capsule_host.capsule_setup(sat_host=module_target_sat)
+    if not request.config.option.n_minus:
+        module_capsule_host.capsule_setup(sat_host=module_target_sat)
     return module_capsule_host
 
 
 @pytest.fixture(scope='session')
-def session_capsule_configured(session_capsule_host, session_target_sat):
+def session_capsule_configured(request, session_capsule_host, session_target_sat):
     """Configure the capsule instance with the satellite from settings.server.hostname"""
-    session_capsule_host.capsule_setup(sat_host=session_target_sat)
+    if not request.config.option.n_minus:
+        session_capsule_host.capsule_setup(sat_host=session_target_sat)
     return session_capsule_host
 
 
 @pytest.fixture(scope='module')
-def module_capsule_configured_mqtt(module_capsule_configured):
+def module_capsule_configured_mqtt(request, module_capsule_configured):
     """Configure the capsule instance with the satellite from settings.server.hostname,
     enable MQTT broker"""
     module_capsule_configured.set_rex_script_mode_provider('pull-mqtt')
@@ -201,7 +221,9 @@ def module_capsule_configured_mqtt(module_capsule_configured):
     result = module_capsule_configured.execute('firewall-cmd --permanent --add-port="1883/tcp"')
     assert result.status == 0, 'Failed to open mqtt port on capsule'
     module_capsule_configured.execute('firewall-cmd --reload')
-    return module_capsule_configured
+    yield module_capsule_configured
+    if request.config.option.n_minus:
+        raise TypeError('The teardown is missed for MQTT configuration undo for nminus testing')
 
 
 @pytest.fixture(scope='module')
diff --git a/pytest_plugins/capsule_n-minus.py b/pytest_plugins/capsule_n-minus.py
new file mode 100644
index 00000000000..f903e239757
--- /dev/null
+++ b/pytest_plugins/capsule_n-minus.py
@@ -0,0 +1,55 @@
+# Collection of Capsule Factory fixture tests
+# No destructive tests
+# Adjust capsule host and capsule_configured host behavior for n_minus testing
+# Calculate capsule hostname from inventory just as we do in xDist.py
+from robottelo.config import settings
+from robottelo.hosts import Capsule
+
+
+def pytest_addoption(parser):
+    """Add options for pytest to collect tests based on fixtures its using"""
+    help_text = '''
+        Collects tests based on capsule fixtures used by tests and uncollect destructive tests
+
+        Usage: --n-minus
+
+        example: pytest --n-minus tests/foreman
+    '''
+    parser.addoption("--n-minus", action='store_true', default=False, help=help_text)
+
+
+def pytest_collection_modifyitems(items, config):
+
+    if not config.getoption('n_minus', False):
+        return
+
+    selected = []
+    deselected = []
+
+    for item in items:
+        is_destructive = item.get_closest_marker('destructive')
+        # Deselect Destructive tests and tests without capsule_factory fixture
+        if 'capsule_factory' not in item.fixturenames or is_destructive:
+            deselected.append(item)
+            continue
+        # Ignoring all puppet tests as they are destructive in nature
+        # and needs its own satellite for verification
+        if 'session_puppet_enabled_sat' in item.fixturenames:
+            deselected.append(item)
+            continue
+        # Ignoring all satellite maintain tests as they are destructive in nature
+        # Also dont need them in nminus testing as its not integration testing
+        if 'sat_maintain' in item.fixturenames and 'satellite' in item.callspec.params.values():
+            deselected.append(item)
+            continue
+        selected.append(item)
+
+    config.hook.pytest_deselected(items=deselected)
+    items[:] = selected
+
+
+def pytest_sessionfinish(session, exitstatus):
+    # Unregister the capsule from CDN after all tests
+    if session.config.option.n_minus and not session.config.option.collectonly:
+        caps = Capsule.get_host_by_hostname(hostname=settings.capsule.hostname)
+        caps.unregister()
diff --git a/robottelo/exceptions.py b/robottelo/exceptions.py
index 83022dfcd6e..a6100564873 100644
--- a/robottelo/exceptions.py
+++ b/robottelo/exceptions.py
@@ -75,6 +75,12 @@ class CLIError(Exception):
     """Indicates that a CLI command could not be run."""
 
 
+class CapsuleHostError(Exception):
+    """Indicates error in capsule configuration etc"""
+
+    pass
+
+
 class CLIBaseError(Exception):
     """Indicates that a CLI command has finished with return code different
     from zero.
diff --git a/robottelo/hosts.py b/robottelo/hosts.py
index 2ff72bbe367..d0f8046dc36 100644
--- a/robottelo/hosts.py
+++ b/robottelo/hosts.py
@@ -1599,6 +1599,21 @@ def get_features(self):
         """Get capsule features"""
         return requests.get(f'https://{self.hostname}:9090/features', verify=False).text
 
+    def enable_capsule_downstream_repos(self):
+        """Enable CDN repos and capsule downstream repos on Capsule Host"""
+        # CDN Repos
+        self.register_to_cdn()
+        for repo in getattr(constants, f"OHSNAP_RHEL{self.os_version.major}_REPOS"):
+            result = self.enable_repo(repo, force=True)
+            if result.status:
+                raise CapsuleHostError(f'Repo enable at capsule host failed\n{result.stdout}')
+        # Downstream Capsule specific Repos
+        self.download_repofile(
+            product='capsule',
+            release=settings.capsule.version.release,
+            snap=settings.capsule.version.snap,
+        )
+
     def capsule_setup(self, sat_host=None, capsule_cert_opts=None, **installer_kwargs):
         """Prepare the host and run the capsule installer"""
         self._satellite = sat_host or Satellite()
@@ -1686,7 +1701,10 @@ def run_installer_arg(self, *args, timeout='20m'):
             timeout=timeout,
         )
         if result.status != 0:
-            raise SatelliteHostError(f'Failed to execute with argument: {result.stderr}')
+            raise SatelliteHostError(
+                f'Failed to execute with arguments: {installer_args} and,'
+                f' the stderr is {result.stderr}'
+            )
 
     def set_mqtt_resend_interval(self, value):
         """Set the time interval in seconds at which the notification should be
diff --git a/tests/foreman/api/test_capsule.py b/tests/foreman/api/test_capsule.py
index 8372c192174..86aaa089922 100644
--- a/tests/foreman/api/test_capsule.py
+++ b/tests/foreman/api/test_capsule.py
@@ -21,7 +21,7 @@
 @pytest.mark.e2e
 @pytest.mark.upgrade
 @pytest.mark.tier1
-def test_positive_update_capsule(target_sat, module_capsule_configured):
+def test_positive_update_capsule(request, pytestconfig, target_sat, module_capsule_configured):
     """Update various capsule properties
 
     :id: a3d3eaa9-ed8d-42e6-9c83-20251e5ca9af
@@ -39,7 +39,7 @@ def test_positive_update_capsule(target_sat, module_capsule_configured):
 
     :customerscenario: true
     """
-    new_name = f'{gen_string("alpha")}-{module_capsule_configured.name}'
+    new_name = f'{gen_string("alpha")}-{module_capsule_configured.hostname}'
     capsule = target_sat.api.SmartProxy().search(
         query={'search': f'name = {module_capsule_configured.hostname}'}
     )[0]
@@ -68,6 +68,17 @@ def test_positive_update_capsule(target_sat, module_capsule_configured):
     capsule = capsule.update(['name'])
     assert capsule.name == new_name
 
+    @request.addfinalizer
+    def _finalize():
+        # Updating the hostname back
+        if (
+            cap := target_sat.api.SmartProxy().search(query={'search': f'name = {new_name}'})
+            and pytestconfig.option.n_minus
+        ):
+            cap = cap[0]
+            cap.name = module_capsule_configured.hostname
+            cap.update(['name'])
+
     # serching for non-default capsule BZ#2077824
     capsules = target_sat.api.SmartProxy().search(query={'search': 'id != 1'})
     assert len(capsules) > 0
diff --git a/tests/foreman/api/test_capsulecontent.py b/tests/foreman/api/test_capsulecontent.py
index abbfd9f9f32..68fd265bf1d 100644
--- a/tests/foreman/api/test_capsulecontent.py
+++ b/tests/foreman/api/test_capsulecontent.py
@@ -1263,6 +1263,7 @@ def test_positive_capsule_sync_status_persists(
     def test_positive_remove_capsule_orphans(
         self,
         target_sat,
+        pytestconfig,
         capsule_configured,
         function_entitlement_manifest_org,
         function_lce_library,
@@ -1292,6 +1293,8 @@ def test_positive_remove_capsule_orphans(
         :BZ: 22043089, 2211962
 
         """
+        if not pytestconfig.option.n_minus:
+            pytest.skip('Test cannot be run on n-minus setups session-scoped capsule')
         # Enable RHST repo and sync it to the Library LCE.
         repo_id = target_sat.api_factory.enable_rhrepo_and_fetchid(
             basearch='x86_64',
diff --git a/tests/foreman/destructive/test_registration.py b/tests/foreman/destructive/test_registration.py
index 357e779c5d7..9c8dbfa4929 100644
--- a/tests/foreman/destructive/test_registration.py
+++ b/tests/foreman/destructive/test_registration.py
@@ -14,6 +14,8 @@
 
 from robottelo.config import settings
 
+pytestmark = pytest.mark.destructive
+
 
 @pytest.mark.tier3
 @pytest.mark.no_containers