diff --git a/istio/add-ambient-mode-namespace/add-ambient-mode-namespace.yaml b/istio/add-ambient-mode-namespace/add-ambient-mode-namespace.yaml
index df5fd0992..78a7fea03 100644
--- a/istio/add-ambient-mode-namespace/add-ambient-mode-namespace.yaml
+++ b/istio/add-ambient-mode-namespace/add-ambient-mode-namespace.yaml
@@ -23,6 +23,12 @@ spec:
       - resources:
           kinds:
           - Namespace
+    exclude:
+      any:
+      - resources:
+          names:
+            - kube-system
+            - istio-system      
     mutate:
       patchStrategicMerge:
         metadata:
diff --git a/istio/add-ambient-mode-namespace/artifacthub-pkg.yml b/istio/add-ambient-mode-namespace/artifacthub-pkg.yml
index 7d3226555..8b37e41d5 100644
--- a/istio/add-ambient-mode-namespace/artifacthub-pkg.yml
+++ b/istio/add-ambient-mode-namespace/artifacthub-pkg.yml
@@ -1,7 +1,7 @@
 name: add-ambient-mode-namespace
 version: 1.0.0
 displayName: Add Istio Ambient Mode
-createdAt: "2024-07-25T20:07:52.000Z"
+createdAt: "2025-05-28T20:07:52.000Z"
 description: >-
   In order for Istio to include namespaces in ambient mode, the label `istio.io/dataplane-mode` must be set to `ambient`. As an alternative to rejecting Namespace definitions which don't already contain this label, it can be added automatically. This policy adds the label `istio.io/dataplane-mode` set to `ambient` for all new Namespaces.
 install: |-
@@ -19,4 +19,4 @@ annotations:
   kyverno/category: "Istio"
   kyverno/kubernetesVersion: "1.24"
   kyverno/subject: "Namespace"
-digest: f81b9ba15c410e62589f0bf79b22a694b41a2294557c91d3c87683772922a8c0
+digest: f4b71db78ff5830b7bf2c4c94af0cd1d5b2495040738a465120f6f96a91affcc