diff --git a/.github/workflows/tests.yaml b/.github/workflows/tests.yaml
index 00a7a2a42..05163c8c4 100644
--- a/.github/workflows/tests.yaml
+++ b/.github/workflows/tests.yaml
@@ -82,6 +82,21 @@ jobs:
         set -e
         make e2e-tests
 
+  e2e-tests-no-cluster:
+    runs-on: ubuntu-latest
+    steps:
+    - name: Checkout
+      uses: actions/checkout@692973e3d937129bcbf40652eb9f2f61becf3332 # v4.1.7
+    - name: Setup Go
+      uses: actions/setup-go@0a12ed9d6a96ab950c8f026ed9f722fe0da7ef32 # v5.0.2
+      with:
+        go-version-file: go.mod
+        cache-dependency-path: go.sum
+    - name: Run tests
+      run: |
+        set -e
+        make e2e-tests-no-cluster
+
   e2e-test-ko:
     runs-on: ubuntu-latest
     steps:
diff --git a/Makefile b/Makefile
index 02c44a929..24d2078b7 100644
--- a/Makefile
+++ b/Makefile
@@ -298,7 +298,14 @@ tests: $(CLI_BIN)
 e2e-tests: ## Run e2e tests
 e2e-tests: $(CLI_BIN)
 	@echo Running e2e tests... >&2
-	@./$(CLI_BIN) test --test-dir ./testdata/e2e --remarshal --config ./testdata/e2e/config.yaml --values ./testdata/e2e/values.yaml
+	@./$(CLI_BIN) test ./testdata/e2e --remarshal --config ./testdata/e2e/config.yaml --values ./testdata/e2e/values.yaml
+
+.PHONY: e2e-tests-no-cluster
+e2e-tests-no-cluster: ## Run e2e tests with --no-cluster
+e2e-tests-no-cluster: $(CLI_BIN)
+	@echo Running e2e tests with --no-cluster... >&2
+	@./$(CLI_BIN) test testdata/e2e/examples/script-env --no-cluster --remarshal --config ./testdata/e2e/config.yaml --values ./testdata/e2e/values.yaml
+	@./$(CLI_BIN) test testdata/e2e/examples/dynamic-clusters --no-cluster --remarshal --config ./testdata/e2e/config.yaml --values ./testdata/e2e/values.yaml
 
 .PHONY: e2e-tests-ko 
 e2e-tests-ko: ## Run e2e tests from a docker container
diff --git a/pkg/runner/processors/context.go b/pkg/runner/processors/context.go
index 7678fc5cc..d24a8c35e 100644
--- a/pkg/runner/processors/context.go
+++ b/pkg/runner/processors/context.go
@@ -44,7 +44,7 @@ func setupContextData(ctx context.Context, tc engine.Context, data contextData)
 			return tc, nil, err
 		} else if _, clusterClient, err := tc.CurrentClusterClient(); err != nil {
 			return tc, nil, err
-		} else {
+		} else if clusterClient != nil {
 			if err := clusterClient.Get(ctx, client.Key(namespace), namespace.DeepCopy()); err != nil {
 				if !errors.IsNotFound(err) {
 					return tc, nil, err
@@ -56,7 +56,9 @@ func setupContextData(ctx context.Context, tc engine.Context, data contextData)
 			}
 			ns = namespace
 		}
-		tc = engine.WithNamespace(ctx, tc, ns.GetName())
+		if ns != nil {
+			tc = engine.WithNamespace(ctx, tc, ns.GetName())
+		}
 	}
 	if _tc, err := engine.WithBindings(ctx, tc, data.bindings...); err != nil {
 		return tc, ns, err