diff --git a/rust/operator-binary/src/hdfs_controller.rs b/rust/operator-binary/src/hdfs_controller.rs
index afe13a74..eadf07ef 100644
--- a/rust/operator-binary/src/hdfs_controller.rs
+++ b/rust/operator-binary/src/hdfs_controller.rs
@@ -847,11 +847,14 @@ spec:
       default:
         replicas: 1
   dataNodes:
+    envOverrides:
+      COMMON_VAR: role-value # overridden by role group below
+      ROLE_VAR: role-value   # only defined here at role level
     roleGroups:
       default:
         envOverrides:
-          MY_ENV: my-value
-          HADOOP_HOME: /not/the/default/path
+          COMMON_VAR: group-value # overrides role value
+          GROUP_VAR: group-value # only defined here at group level
         replicas: 1
 ";
         let product_config = "
@@ -903,33 +906,38 @@ properties: []
         )
         .unwrap();
         let containers = pb.build().unwrap().spec.unwrap().containers;
-        let main_container = containers
+        let env_vars = containers
             .iter()
             .find(|c| c.name == role.to_string())
+            .unwrap()
+            .env
+            .clone()
             .unwrap();
 
         assert_eq!(
-            main_container
-                .env
-                .clone()
-                .unwrap()
-                .into_iter()
-                .find(|e| e.name == "MY_ENV")
+            env_vars
+                .iter()
+                .find(|e| e.name == "COMMON_VAR")
                 .unwrap()
                 .value,
-            Some("my-value".to_string())
+            Some("group-value".to_string())
         );
 
         assert_eq!(
-            main_container
-                .env
-                .clone()
+            env_vars
+                .iter()
+                .find(|e| e.name == "ROLE_VAR")
                 .unwrap()
-                .into_iter()
-                .find(|e| e.name == "HADOOP_HOME")
+                .value,
+            Some("role-value".to_string())
+        );
+        assert_eq!(
+            env_vars
+                .iter()
+                .find(|e| e.name == "GROUP_VAR")
                 .unwrap()
                 .value,
-            Some("/not/the/default/path".to_string())
+            Some("group-value".to_string())
         );
     }
 }
diff --git a/tests/templates/kuttl/smoke/30-install-hdfs.yaml.j2 b/tests/templates/kuttl/smoke/30-install-hdfs.yaml.j2
index 7506994f..2cdbc57f 100644
--- a/tests/templates/kuttl/smoke/30-install-hdfs.yaml.j2
+++ b/tests/templates/kuttl/smoke/30-install-hdfs.yaml.j2
@@ -20,6 +20,9 @@ spec:
     vectorAggregatorConfigMapName: vector-aggregator-discovery
 {% endif %}
   nameNodes:
+    envOverrides:
+      COMMON_VAR: role-value # overridden by role group below
+      ROLE_VAR: role-value   # only defined here at role level
     config:
       listenerClass: {{ test_scenario['values']['listener-class'] }}
       logging:
@@ -27,7 +30,13 @@ spec:
     roleGroups:
       default:
         replicas: 2
+        envOverrides:
+          COMMON_VAR: group-value # overrides role value
+          GROUP_VAR: group-value # only defined here at group level
   dataNodes:
+    envOverrides:
+      COMMON_VAR: role-value # overridden by role group below
+      ROLE_VAR: role-value   # only defined here at role level
     config:
       listenerClass: {{ test_scenario['values']['listener-class'] }}
       logging:
@@ -49,13 +58,22 @@ spec:
 {% endif %}
     roleGroups:
       default:
+        envOverrides:
+          COMMON_VAR: group-value # overrides role value
+          GROUP_VAR: group-value # only defined here at group level
         replicas: {{ test_scenario['values']['number-of-datanodes'] }}
   journalNodes:
+    envOverrides:
+      COMMON_VAR: role-value # overridden by role group below
+      ROLE_VAR: role-value   # only defined here at role level
     config:
       logging:
         enableVectorAgent: {{ lookup('env', 'VECTOR_AGGREGATOR') | length > 0 }}
     roleGroups:
       default:
+        envOverrides:
+          COMMON_VAR: group-value # overrides role value
+          GROUP_VAR: group-value # only defined here at group level
         replicas: 1
         podOverrides:
           spec:
diff --git a/tests/templates/kuttl/smoke/31-assert.yaml b/tests/templates/kuttl/smoke/31-assert.yaml
new file mode 100644
index 00000000..e07c0f5e
--- /dev/null
+++ b/tests/templates/kuttl/smoke/31-assert.yaml
@@ -0,0 +1,20 @@
+---
+apiVersion: kuttl.dev/v1beta1
+kind: TestAssert
+timeout: 600
+commands:
+  #
+  # Test envOverrides for all roles
+  #
+  - script: |
+      kubectl -n $NAMESPACE get sts hdfs-datanode-default -o yaml | yq -e '.spec.template.spec.containers[] | select (.name == "datanode") | .env[] | select (.name == "COMMON_VAR" and .value == "group-value")'
+      kubectl -n $NAMESPACE get sts hdfs-datanode-default -o yaml | yq -e '.spec.template.spec.containers[] | select (.name == "datanode") | .env[] | select (.name == "GROUP_VAR" and .value == "group-value")'
+      kubectl -n $NAMESPACE get sts hdfs-datanode-default -o yaml | yq -e '.spec.template.spec.containers[] | select (.name == "datanode") | .env[] | select (.name == "ROLE_VAR" and .value == "role-value")'
+  - script: |
+      kubectl -n $NAMESPACE get sts hdfs-journalnode-default -o yaml | yq -e '.spec.template.spec.containers[] | select (.name == "journalnode") | .env[] | select (.name == "COMMON_VAR" and .value == "group-value")'
+      kubectl -n $NAMESPACE get sts hdfs-journalnode-default -o yaml | yq -e '.spec.template.spec.containers[] | select (.name == "journalnode") | .env[] | select (.name == "GROUP_VAR" and .value == "group-value")'
+      kubectl -n $NAMESPACE get sts hdfs-journalnode-default -o yaml | yq -e '.spec.template.spec.containers[] | select (.name == "journalnode") | .env[] | select (.name == "ROLE_VAR" and .value == "role-value")'
+  - script: |
+      kubectl -n $NAMESPACE get sts hdfs-namenode-default -o yaml | yq -e '.spec.template.spec.containers[] | select (.name == "namenode") | .env[] | select (.name == "COMMON_VAR" and .value == "group-value")'
+      kubectl -n $NAMESPACE get sts hdfs-namenode-default -o yaml | yq -e '.spec.template.spec.containers[] | select (.name == "namenode") | .env[] | select (.name == "GROUP_VAR" and .value == "group-value")'
+      kubectl -n $NAMESPACE get sts hdfs-namenode-default -o yaml | yq -e '.spec.template.spec.containers[] | select (.name == "namenode") | .env[] | select (.name == "ROLE_VAR" and .value == "role-value")'