diff --git a/.helm/starter/templates/controller/_controller.tpl b/.helm/starter/templates/controller/_controller.tpl
new file mode 100644
index 00000000..34ca6d67
--- /dev/null
+++ b/.helm/starter/templates/controller/_controller.tpl
@@ -0,0 +1,5 @@
+{{/*
+This template gets filled with the operator SDK's controller definition
+during chart build
+*/}}
+{{- define "awx-operator.controller" -}}
diff --git a/.helm/starter/templates/controller/controller-overlay.yaml b/.helm/starter/templates/controller/controller-overlay.yaml
new file mode 100644
index 00000000..16088559
--- /dev/null
+++ b/.helm/starter/templates/controller/controller-overlay.yaml
@@ -0,0 +1,15 @@
+{{- $controllerTemplate := (include "awx-operator.controller" $) | fromYaml }}
+
+{{- $existingLabels := default dict ($controllerTemplate.metadata).labels }}
+{{- $mergedLabels := mergeOverwrite $existingLabels $.Values.controller.labels }}
+{{- /* Use set in case the dict didn't exist */}}
+{{- $_ := set $controllerTemplate.metadata "labels" $mergedLabels }}
+
+{{- $existingAnnotations := default dict ($controllerTemplate.metadata).annotations }}
+{{- $mergedAnnotations := mergeOverwrite $existingAnnotations $.Values.controller.annotations }}
+{{- /* Use set in case the dict didn't exist */}}
+{{- $_ := set $controllerTemplate.metadata "annotations" $mergedAnnotations }}
+
+{{- $_ := mergeOverwrite $controllerTemplate.spec $.Values.controller.spec }}
+
+{{ $controllerTemplate | toYaml }}
\ No newline at end of file
diff --git a/Makefile b/Makefile
index bb5febe1..158b9027 100644
--- a/Makefile
+++ b/Makefile
@@ -148,10 +148,7 @@ helm-chart-generate: kustomize helm kubectl-slice yq charts
 	for file in charts/$(CHART_NAME)/raw-files/*rolebinding*; do\
 		$(YQ) -i '.subjects[0].namespace = "{{ .Release.Namespace }}"' $${file};\
 	done
-	# Add .spec.replicas for the controller-manager deployment
-	for file in charts/$(CHART_NAME)/raw-files/deployment-*-controller-manager.yaml; do\
-		$(YQ) -i '.spec.replicas = "{{ (.Values.Operator).replicas | default 1 }}"' $${file};\
-	done
+
 	# Correct .metadata.name for cluster scoped resources
 	cluster_scoped_files="charts/$(CHART_NAME)/raw-files/clusterrolebinding-awx-operator-proxy-rolebinding.yaml charts/$(CHART_NAME)/raw-files/clusterrole-awx-operator-metrics-reader.yaml charts/$(CHART_NAME)/raw-files/clusterrole-awx-operator-proxy-role.yaml";\
 	for file in $${cluster_scoped_files}; do\
@@ -159,10 +156,16 @@ helm-chart-generate: kustomize helm kubectl-slice yq charts
 	done
 	# Correct the reference for the clusterrolebinding
 	$(YQ) -i '.roleRef.name += "-{{ .Release.Name }}"' 'charts/$(CHART_NAME)/raw-files/clusterrolebinding-awx-operator-proxy-rolebinding.yaml'
-	# Correct .spec.replicas type for the controller-manager deployment
+
+	# Feed controller deployment file into template to allow for override from values
 	for file in charts/$(CHART_NAME)/raw-files/deployment-*-controller-manager.yaml; do\
-		$(SED_I) "s/'{{ (.Values.Operator).replicas | default 1 }}'/{{ (.Values.Operator).replicas | default 1 }}/g" $${file};\
+		cat $${file} >> charts/$(CHART_NAME)/templates/controller/_controller.tpl;\
+		echo "\n---" >> charts/$(CHART_NAME)/templates/controller/_controller.tpl;\
+		rm -f $${file} ;\
 	done
+	echo '{{- end -}}' >> charts/$(CHART_NAME)/templates/controller/_controller.tpl
+
+
 	# move all custom resource definitions to crds folder
 	mkdir charts/$(CHART_NAME)/crds
 	mv charts/$(CHART_NAME)/raw-files/customresourcedefinition*.yaml charts/$(CHART_NAME)/crds/.