diff --git a/build/Makefile b/build/Makefile
index 0269406868..27dc9cc8aa 100644
--- a/build/Makefile
+++ b/build/Makefile
@@ -64,7 +64,7 @@ KIND_CONTAINER_NAME=$(KIND_PROFILE)-control-plane
 GS_TEST_IMAGE ?= us-docker.pkg.dev/agones-images/examples/simple-game-server:0.14
 
 # Enable all alpha feature gates. Keep in sync with `false` (alpha) entries in pkg/util/runtime/features.go:featureDefaults
-ALPHA_FEATURE_GATES ?= "PlayerAllocationFilter=true&PlayerTracking=true&ResetMetricsOnDelete=true&PodHostname=true&SplitControllerAndExtensions=true&CountsAndLists=true&Example=true"
+ALPHA_FEATURE_GATES ?= "PlayerAllocationFilter=true&PlayerTracking=true&ResetMetricsOnDelete=true&PodHostname=true&SplitControllerAndExtensions=true&CountsAndLists=true&FleetAllocationOverflow=true&Example=true"
 
 # Build with Windows support
 WITH_WINDOWS=1
diff --git a/cloudbuild.yaml b/cloudbuild.yaml
index fb98773880..e775e7ddea 100644
--- a/cloudbuild.yaml
+++ b/cloudbuild.yaml
@@ -295,12 +295,12 @@ steps:
       do
         if [ $cloudProduct = generic ]
         then 
-          featureWithGate="CustomFasSyncInterval=false&SafeToEvict=false&SDKGracefulTermination=false&StateAllocationFilter=false&PlayerAllocationFilter=true&PlayerTracking=true&ResetMetricsOnDelete=true&PodHostname=true&SplitControllerAndExtensions=true&Example=true"
+          featureWithGate="CustomFasSyncInterval=false&SafeToEvict=false&SDKGracefulTermination=false&StateAllocationFilter=false&PlayerAllocationFilter=true&PlayerTracking=true&ResetMetricsOnDelete=true&PodHostname=true&SplitControllerAndExtensions=true&FleetAllocationOverflow=true&Example=true"
           featureWithoutGate=""
           testClusterLocation="us-west1-c"
           testCluster="e2e-test-cluster"
         else
-          featureWithGate="CustomFasSyncInterval=false&SafeToEvict=true&SDKGracefulTermination=false&StateAllocationFilter=false&PlayerAllocationFilter=true&PlayerTracking=true&ResetMetricsOnDelete=true&PodHostname=true&SplitControllerAndExtensions=true&Example=true"
+          featureWithGate="CustomFasSyncInterval=false&SafeToEvict=true&SDKGracefulTermination=false&StateAllocationFilter=false&PlayerAllocationFilter=true&PlayerTracking=true&ResetMetricsOnDelete=true&PodHostname=true&SplitControllerAndExtensions=true&FleetAllocationOverflow=true&Example=true"
           featureWithoutGate="SplitControllerAndExtensions=true"
           testClusterLocation="us-west1"
           testCluster="gke-autopilot-e2e-test-cluster-1-24"
diff --git a/install/helm/agones/defaultfeaturegates.yaml b/install/helm/agones/defaultfeaturegates.yaml
index d9a860efd5..98823e0e40 100644
--- a/install/helm/agones/defaultfeaturegates.yaml
+++ b/install/helm/agones/defaultfeaturegates.yaml
@@ -25,6 +25,7 @@ PlayerAllocationFilter: false
 PlayerTracking: false
 ResetMetricsOnDelete: false
 PodHostname: false
+FleetAllocationOverflow: false
 SplitControllerAndExtensions: false
 
 # Pre-Alpha features
diff --git a/pkg/util/runtime/features.go b/pkg/util/runtime/features.go
index 4e54f0687c..7a5d09baef 100644
--- a/pkg/util/runtime/features.go
+++ b/pkg/util/runtime/features.go
@@ -66,6 +66,10 @@ const (
 	////////////////
 	// "Pre"-Alpha features
 
+	// FeatureFleetAllocateOverflow enables setting labels and/or annotations on Allocated GameServers
+	// if the desired number of the underlying GameServerSet drops below the number of Allocated GameServers
+	FeatureFleetAllocateOverflow = "FleetAllocationOverflow"
+
 	// FeatureCountsAndLists is a feature flag that enables/disables counts and lists feature
 	// (a generic implenetation of the player tracking feature).
 	FeatureCountsAndLists Feature = "CountsAndLists"
@@ -118,7 +122,8 @@ var (
 		FeatureSplitControllerAndExtensions: false,
 
 		// Pre-Alpha features
-		FeatureCountsAndLists: false,
+		FeatureCountsAndLists:        false,
+		FeatureFleetAllocateOverflow: false,
 
 		// Example feature
 		FeatureExample: false,