diff --git a/pkg/addonmanager/controllers/registration/controller.go b/pkg/addonmanager/controllers/registration/controller.go
index ac0f07dde..f1888e3ec 100644
--- a/pkg/addonmanager/controllers/registration/controller.go
+++ b/pkg/addonmanager/controllers/registration/controller.go
@@ -156,6 +156,16 @@ func (c *addonRegistrationController) sync(ctx context.Context, syncCtx factory.
 		managedClusterAddonCopy.Status.Namespace = managedClusterAddonCopy.Spec.InstallNamespace
 	}
 
+	if registrationOption.AgentInstallNamespace != nil {
+		ns := registrationOption.AgentInstallNamespace(managedClusterAddonCopy)
+		if len(ns) > 0 {
+			managedClusterAddonCopy.Status.Namespace = ns
+		} else {
+			klog.Infof("Namespace for addon %s/%s returned by agent install namespace func is empty",
+				managedClusterAddonCopy.Namespace, managedClusterAddonCopy.Name)
+		}
+	}
+
 	meta.SetStatusCondition(&managedClusterAddonCopy.Status.Conditions, metav1.Condition{
 		Type:    addonapiv1alpha1.ManagedClusterAddOnRegistrationApplied,
 		Status:  metav1.ConditionTrue,
diff --git a/pkg/addonmanager/controllers/registration/controller_test.go b/pkg/addonmanager/controllers/registration/controller_test.go
index e53b8d3c4..38126700a 100644
--- a/pkg/addonmanager/controllers/registration/controller_test.go
+++ b/pkg/addonmanager/controllers/registration/controller_test.go
@@ -23,9 +23,10 @@ import (
 )
 
 type testAgent struct {
-	name          string
-	namespace     string
-	registrations []addonapiv1alpha1.RegistrationConfig
+	name                  string
+	namespace             string
+	registrations         []addonapiv1alpha1.RegistrationConfig
+	agentInstallNamespace func(addon *addonapiv1alpha1.ManagedClusterAddOn) string
 }
 
 func (t *testAgent) Manifests(cluster *clusterv1.ManagedCluster, addon *addonapiv1alpha1.ManagedClusterAddOn) ([]runtime.Object, error) {
@@ -38,7 +39,7 @@ func (t *testAgent) GetAgentAddonOptions() agent.AgentAddonOptions {
 			AddonName: t.name,
 		}
 	}
-	return agent.AgentAddonOptions{
+	agentOption := agent.AgentAddonOptions{
 		AddonName: t.name,
 		Registration: &agent.RegistrationOption{
 			CSRConfigurations: func(cluster *clusterv1.ManagedCluster) []addonapiv1alpha1.RegistrationConfig {
@@ -50,6 +51,11 @@ func (t *testAgent) GetAgentAddonOptions() agent.AgentAddonOptions {
 			Namespace: t.namespace,
 		},
 	}
+
+	if t.agentInstallNamespace != nil {
+		agentOption.Registration.AgentInstallNamespace = t.agentInstallNamespace
+	}
+	return agentOption
 }
 
 func TestReconcile(t *testing.T) {
@@ -176,6 +182,39 @@ func TestReconcile(t *testing.T) {
 				},
 			}},
 		},
+		{
+			name:    "with registrations and override namespace by agentInstallNamespace",
+			cluster: []runtime.Object{addontesting.NewManagedCluster("cluster1")},
+			addon: []runtime.Object{
+				func() *addonapiv1alpha1.ManagedClusterAddOn {
+					addon := addontesting.NewAddon("test", "cluster1", metav1.OwnerReference{
+						Kind: "ClusterManagementAddOn",
+						Name: "test",
+					})
+					addon.Spec.InstallNamespace = "default2"
+					return addon
+				}(),
+			},
+			validateAddonActions: func(t *testing.T, actions []clienttesting.Action) {
+				addontesting.AssertActions(t, actions, "patch")
+				actual := actions[0].(clienttesting.PatchActionImpl).Patch
+				addOn := &addonapiv1alpha1.ManagedClusterAddOn{}
+				err := json.Unmarshal(actual, addOn)
+				if err != nil {
+					t.Fatal(err)
+				}
+				if addOn.Status.Registrations[0].SignerName != "test" {
+					t.Errorf("Registration config is not updated")
+				}
+				if addOn.Status.Namespace != "default3" {
+					t.Errorf("Namespace in status is not correct")
+				}
+			},
+			testaddon: &testAgent{name: "test", namespace: "default",
+				registrations:         []addonapiv1alpha1.RegistrationConfig{{SignerName: "test"}},
+				agentInstallNamespace: func(addon *addonapiv1alpha1.ManagedClusterAddOn) string { return "default3" },
+			},
+		},
 	}
 
 	for _, c := range cases {
diff --git a/pkg/agent/inteface.go b/pkg/agent/inteface.go
index cdc412d9e..32514684f 100644
--- a/pkg/agent/inteface.go
+++ b/pkg/agent/inteface.go
@@ -110,8 +110,16 @@ type RegistrationOption struct {
 
 	// Namespace is the namespace where registraiton credential will be put on the managed cluster. It
 	// will be overridden by installNamespace on ManagedClusterAddon spec if set
+	// Deprecated: use AgentInstallNamespace instead
 	Namespace string
 
+	// AgentInstallNamespace returns the namespace where registration credential will be put on the managed cluster.
+	// It will override the installNamespace on ManagedClusterAddon spec if set and the returned value is not empty.
+	// Note: Set this very carefully. If this is set, the addon agent must be deployed in the same namespace, which
+	// means when implementing Manifests function in AgentAddon interface, the namespace of the addon agent manifest
+	// must be set to the same value returned by this function.
+	AgentInstallNamespace func(addon *addonapiv1alpha1.ManagedClusterAddOn) string
+
 	// CSRApproveCheck checks whether the addon agent registration should be approved by the hub.
 	// Addon hub controller can implement this func to auto-approve all the CSRs. A better CSR check is
 	// recommended to include (1) the validity of requester's requesting identity and (2) the other request