diff --git a/x-pack/plugins/fleet/common/types/models/epm.ts b/x-pack/plugins/fleet/common/types/models/epm.ts
index 738689fdaa2cdc..5c5a48642cba8e 100644
--- a/x-pack/plugins/fleet/common/types/models/epm.ts
+++ b/x-pack/plugins/fleet/common/types/models/epm.ts
@@ -178,6 +178,14 @@ export interface RegistryImage extends PackageSpecIcon {
   path: string;
 }
 
+export interface DeploymentsModesEnablement {
+  enabled: boolean;
+}
+export interface DeploymentsModes {
+  agentless: DeploymentsModesEnablement;
+  default?: DeploymentsModesEnablement;
+}
+
 export enum RegistryPolicyTemplateKeys {
   categories = 'categories',
   data_streams = 'data_streams',
@@ -193,6 +201,7 @@ export enum RegistryPolicyTemplateKeys {
   description = 'description',
   icons = 'icons',
   screenshots = 'screenshots',
+  deployment_modes = 'deployment_modes',
 }
 interface BaseTemplate {
   [RegistryPolicyTemplateKeys.name]: string;
@@ -201,6 +210,7 @@ interface BaseTemplate {
   [RegistryPolicyTemplateKeys.icons]?: RegistryImage[];
   [RegistryPolicyTemplateKeys.screenshots]?: RegistryImage[];
   [RegistryPolicyTemplateKeys.multiple]?: boolean;
+  [RegistryPolicyTemplateKeys.deployment_modes]?: DeploymentsModes;
 }
 export interface RegistryPolicyIntegrationTemplate extends BaseTemplate {
   [RegistryPolicyTemplateKeys.categories]?: Array<PackageSpecCategory | undefined>;
@@ -424,6 +434,7 @@ export enum RegistryVarsEntryKeys {
   default = 'default',
   os = 'os',
   secret = 'secret',
+  hide_in_deployment_modes = 'hide_in_deployment_modes',
 }
 
 // EPR types this as `[]map[string]interface{}`
@@ -445,6 +456,7 @@ export interface RegistryVarsEntry {
       default: string | string[];
     };
   };
+  [RegistryVarsEntryKeys.hide_in_deployment_modes]?: string[];
 }
 
 // Deprecated as part of the removing public references to saved object schemas
diff --git a/x-pack/plugins/fleet/public/applications/fleet/sections/agent_policy/create_package_policy_page/components/steps/components/package_policy_input_panel.test.tsx b/x-pack/plugins/fleet/public/applications/fleet/sections/agent_policy/create_package_policy_page/components/steps/components/package_policy_input_panel.test.tsx
index 9988ac1f7c22c4..a6bf030ad7fe04 100644
--- a/x-pack/plugins/fleet/public/applications/fleet/sections/agent_policy/create_package_policy_page/components/steps/components/package_policy_input_panel.test.tsx
+++ b/x-pack/plugins/fleet/public/applications/fleet/sections/agent_policy/create_package_policy_page/components/steps/components/package_policy_input_panel.test.tsx
@@ -4,8 +4,29 @@
  * 2.0; you may not use this file except in compliance with the Elastic License
  * 2.0.
  */
+import React from 'react';
+import { waitFor } from '@testing-library/react';
 
-import { shouldShowStreamsByDefault } from './package_policy_input_panel';
+import { createFleetTestRendererMock } from '../../../../../../../../mock';
+
+import type { TestRenderer } from '../../../../../../../../mock';
+import { useAgentless } from '../../../single_page_layout/hooks/setup_technology';
+
+import type {
+  PackageInfo,
+  RegistryStreamWithDataStream,
+  RegistryInput,
+  NewPackagePolicyInput,
+} from '../../../../../../types';
+
+import { shouldShowStreamsByDefault, PackagePolicyInputPanel } from './package_policy_input_panel';
+
+jest.mock('../../../single_page_layout/hooks/setup_technology', () => {
+  return {
+    useAgentless: jest.fn(),
+  };
+});
+const useAgentlessMock = useAgentless as jest.MockedFunction<typeof useAgentless>;
 
 describe('shouldShowStreamsByDefault', () => {
   it('should return true if a datastreamId is provided and contained in the input', () => {
@@ -59,3 +80,447 @@ describe('shouldShowStreamsByDefault', () => {
     expect(res).toBeFalsy();
   });
 });
+
+describe('PackagePolicyInputPanel', () => {
+  const mockPackageInfo = {
+    name: 'agentless_test_package',
+    version: '1.0.1-rc1',
+    description: 'Test package with new agentless deployment modes',
+    title: 'Agentless test package',
+    format_version: '3.2.0',
+    owner: {
+      github: 'elastic/integrations',
+      type: 'elastic',
+    },
+    type: 'integration',
+    categories: ['custom'],
+    screenshots: [],
+    icons: [],
+    policy_templates: [
+      {
+        name: 'sample',
+        title: 'Agentless sample logs',
+        description: 'Collect sample logs',
+        multiple: true,
+        inputs: [
+          {
+            title: 'Collect sample logs from instances',
+            vars: [],
+            type: 'logfile',
+            description: 'Collecting sample logs',
+          },
+        ],
+        deployment_modes: {
+          default: {
+            enabled: false,
+          },
+          agentless: {
+            enabled: true,
+          },
+        },
+      },
+    ],
+    data_streams: [
+      {
+        title: 'Default data stream',
+        release: 'ga',
+        type: 'logs',
+        package: 'agentless_test_package',
+        dataset: 'agentless_test_package.default_data_stream',
+        path: 'default_data_stream',
+        elasticsearch: {
+          'ingest_pipeline.name': 'default',
+        },
+        ingest_pipeline: 'default',
+        streams: [
+          {
+            input: 'logfile',
+            title: 'Sample logs hidden in agentless',
+            template_path: 'stream.yml.hbs',
+            vars: [
+              {
+                name: 'paths',
+                type: 'text',
+                title: 'Paths',
+                multi: false,
+                default: ['/var/log/*.log'],
+                required: false,
+                show_user: true,
+                hide_in_deployment_modes: ['agentless'],
+              },
+            ],
+            description: 'Collect sample logs - hidden in agentless',
+          },
+        ],
+      },
+      {
+        title: 'Logs Stream on Agentless',
+        release: 'ga',
+        type: 'logs',
+        package: 'agentless_test_package',
+        dataset: 'agentless_test_package.logs_stream',
+        path: 'logs_stream',
+        elasticsearch: {
+          'ingest_pipeline.name': 'default',
+        },
+        ingest_pipeline: 'default',
+        streams: [
+          {
+            input: 'logfile',
+            title: 'Sample logs on Agentless',
+            template_path: 'stream.yml.hbs',
+            vars: [
+              {
+                name: 'paths',
+                type: 'text',
+                title: 'Paths',
+                multi: true,
+                default: ['/var/log/*.log'],
+                required: false,
+                show_user: true,
+                hide_in_deployment_modes: ['default'],
+              },
+            ],
+            description: 'Collect sample logs on Agentless only',
+          },
+        ],
+      },
+    ],
+    readme: '/package/agentless_test_package/1.0.1-rc1/docs/README.md',
+    release: 'beta',
+    latestVersion: '1.0.1-rc1',
+    assets: { kibana: {} },
+    licensePath: '/package/agentless_test_package/1.0.1-rc1/LICENSE.txt',
+    keepPoliciesUpToDate: false,
+    status: 'installed',
+    installationInfo: {},
+  } as unknown as PackageInfo;
+
+  const mockPackageInput: RegistryInput = {
+    title: 'Collect sample logs from instances',
+    vars: [],
+    type: 'logfile',
+    description: 'Collecting sample logs',
+  };
+
+  const mockPackageInputStreams: RegistryStreamWithDataStream[] = [
+    {
+      input: 'logfile',
+      title: 'Sample logs hidden in agentless',
+      template_path: 'stream.yml.hbs',
+      vars: [
+        {
+          name: 'paths',
+          type: 'text',
+          title: 'Paths',
+          multi: false,
+          default: ['/var/log/*.log'],
+          required: false,
+          show_user: true,
+          hide_in_deployment_modes: ['agentless'],
+        },
+      ],
+      description: 'Collect sample logs - hidden in agentless',
+      data_stream: {
+        title: 'Default data stream',
+        release: 'ga',
+        type: 'logs',
+        package: 'agentless_test_package',
+        dataset: 'agentless_test_package.default_data_stream',
+        path: 'default_data_stream',
+        elasticsearch: {
+          'ingest_pipeline.name': 'default',
+        },
+        ingest_pipeline: 'default',
+        streams: [
+          {
+            input: 'logfile',
+            title: 'Sample logs hidden in agentless',
+            template_path: 'stream.yml.hbs',
+            vars: [
+              {
+                name: 'paths',
+                type: 'text',
+                title: 'Paths',
+                multi: false,
+                default: ['/var/log/*.log'],
+                required: false,
+                show_user: true,
+                hide_in_deployment_modes: ['agentless'],
+              },
+            ],
+            description: 'Collect sample logs - hidden in agentless',
+          },
+        ],
+      },
+    },
+    {
+      input: 'logfile',
+      title: 'Sample logs on Agentless',
+      template_path: 'stream.yml.hbs',
+      vars: [
+        {
+          name: 'paths',
+          type: 'text',
+          title: 'Paths',
+          multi: true,
+          default: ['/var/log/*.log'],
+          required: false,
+          show_user: true,
+          hide_in_deployment_modes: ['default'],
+        },
+      ],
+      description: 'Collect sample logs on Agentless only',
+      data_stream: {
+        title: 'Logs Stream on Agentless',
+        release: 'ga',
+        type: 'logs',
+        package: 'agentless_test_package',
+        dataset: 'agentless_test_package.logs_stream',
+        path: 'logs_stream',
+        elasticsearch: {
+          'ingest_pipeline.name': 'default',
+        },
+        ingest_pipeline: 'default',
+        streams: [
+          {
+            input: 'logfile',
+            title: 'Sample logs on Agentless',
+            template_path: 'stream.yml.hbs',
+            vars: [
+              {
+                name: 'paths',
+                type: 'text',
+                title: 'Paths',
+                multi: true,
+                default: ['/var/log/*.log'],
+                required: false,
+                show_user: true,
+                hide_in_deployment_modes: ['default'],
+              },
+            ],
+            description: 'Collect sample logs on Agentless only',
+          },
+        ],
+      },
+    },
+  ];
+  const mockUpdatePackagePolicyInput = jest.fn().mockImplementation((val: any) => {
+    return undefined;
+  });
+  const inputValidationResults = {
+    streams: {
+      'agentless_test_package.default_data_stream': { vars: { paths: null } },
+      'agentless_test_package.logs_stream': { vars: { paths: null } },
+    },
+  };
+
+  let testRenderer: TestRenderer;
+  let renderResult: ReturnType<typeof testRenderer.render>;
+  const packagePolicyInput = {
+    id: 'input-1',
+    type: 'logfile',
+    policy_template: 'sample',
+    enabled: true,
+    streams: [
+      {
+        data_stream: { type: 'logs', dataset: 'agentless_test_package.default_data_stream' },
+        enabled: true,
+        vars: { paths: [] },
+      },
+      {
+        data_stream: { type: 'logs', dataset: 'agentless_test_package.logs_stream' },
+        enabled: true,
+        vars: { paths: [] },
+      },
+    ],
+  } as NewPackagePolicyInput;
+  const render = (
+    packageInfo: PackageInfo,
+    packageInputStreams: RegistryStreamWithDataStream[]
+  ) => {
+    renderResult = testRenderer.render(
+      <PackagePolicyInputPanel
+        packageInfo={packageInfo}
+        packageInput={mockPackageInput}
+        packageInputStreams={packageInputStreams}
+        packagePolicyInput={packagePolicyInput}
+        updatePackagePolicyInput={mockUpdatePackagePolicyInput}
+        inputValidationResults={inputValidationResults}
+      />
+    );
+  };
+  beforeEach(() => {
+    testRenderer = createFleetTestRendererMock();
+  });
+  afterEach(() => {
+    jest.resetAllMocks();
+  });
+  describe('When agentless is enabled', () => {
+    beforeEach(() => {
+      useAgentlessMock.mockReturnValue({
+        isAgentlessEnabled: true,
+        isAgentlessPackagePolicy: jest.fn(),
+        isAgentlessAgentPolicy: jest.fn(),
+        isAgentlessIntegration: jest.fn(),
+      });
+    });
+
+    it('should render inputs specific to env', async () => {
+      render(mockPackageInfo, mockPackageInputStreams);
+      await waitFor(async () => {
+        expect(
+          await renderResult.findByTestId('PackagePolicy.InputStreamConfig.Switch')
+        ).toBeInTheDocument();
+      });
+      await waitFor(async () => {
+        expect(
+          await renderResult.findByText('Collect sample logs from instances')
+        ).toBeInTheDocument();
+      });
+      await waitFor(async () => {
+        expect(await renderResult.findByText('Sample logs on Agentless')).toBeInTheDocument();
+      });
+      await waitFor(async () => {
+        expect(
+          await renderResult.queryByText('Sample logs hidden in agentless')
+        ).not.toBeInTheDocument();
+      });
+    });
+  });
+
+  describe('When agentless not enabled', () => {
+    beforeEach(() => {
+      useAgentlessMock.mockReturnValue({
+        isAgentlessEnabled: false,
+        isAgentlessPackagePolicy: jest.fn(),
+        isAgentlessAgentPolicy: jest.fn(),
+        isAgentlessIntegration: jest.fn(),
+      });
+    });
+
+    it('should render inputs specific to the env', async () => {
+      render(mockPackageInfo, mockPackageInputStreams);
+      await waitFor(async () => {
+        expect(
+          await renderResult.findByTestId('PackagePolicy.InputStreamConfig.Switch')
+        ).toBeInTheDocument();
+      });
+      await waitFor(async () => {
+        expect(
+          await renderResult.findByText('Collect sample logs from instances')
+        ).toBeInTheDocument();
+      });
+      await waitFor(async () => {
+        expect(await renderResult.queryByText('Sample logs on Agentless')).not.toBeInTheDocument();
+      });
+      await waitFor(async () => {
+        expect(
+          await renderResult.queryByText('Sample logs hidden in agentless')
+        ).toBeInTheDocument();
+      });
+    });
+
+    it('should render inputs when hide_in_deployment_modes is not present', async () => {
+      const packageInputStreams: RegistryStreamWithDataStream[] = [
+        {
+          input: 'logfile',
+          title: 'Sample logs',
+          template_path: 'stream.yml.hbs',
+          vars: [
+            {
+              name: 'paths',
+              type: 'text',
+              title: 'Paths',
+              multi: false,
+              default: ['/var/log/*.log'],
+              required: false,
+              show_user: true,
+            },
+          ],
+          description: 'Collect sample logs',
+          data_stream: {
+            title: 'Default data stream',
+            release: 'ga',
+            type: 'logs',
+            package: 'agentless_test_package',
+            dataset: 'agentless_test_package.default_data_stream',
+            path: 'default_data_stream',
+            elasticsearch: {
+              'ingest_pipeline.name': 'default',
+            },
+            ingest_pipeline: 'default',
+            streams: [
+              {
+                input: 'logfile',
+                title: 'Sample logs',
+                template_path: 'stream.yml.hbs',
+                vars: [
+                  {
+                    name: 'paths',
+                    type: 'text',
+                    title: 'Paths',
+                    multi: false,
+                    default: ['/var/log/*.log'],
+                    required: false,
+                    show_user: true,
+                  },
+                ],
+                description: 'Collect sample log - hidden in agentless',
+              },
+            ],
+          },
+        },
+      ];
+      const packageInfo = {
+        ...mockPackageInfo,
+        data_streams: [
+          {
+            title: 'Default data stream',
+            release: 'ga',
+            type: 'logs',
+            package: 'agentless_test_package',
+            dataset: 'agentless_test_package.default_data_stream',
+            path: 'default_data_stream',
+            elasticsearch: {
+              'ingest_pipeline.name': 'default',
+            },
+            ingest_pipeline: 'default',
+            streams: [
+              {
+                input: 'logfile',
+                title: 'Sample logs',
+                template_path: 'stream.yml.hbs',
+                vars: [
+                  {
+                    name: 'paths',
+                    type: 'text',
+                    title: 'Paths',
+                    multi: false,
+                    default: ['/var/log/*.log'],
+                    required: false,
+                    show_user: true,
+                  },
+                ],
+                description: 'Collect sample logs',
+              },
+            ],
+          },
+        ],
+      } as unknown as PackageInfo;
+      render(packageInfo, packageInputStreams);
+
+      await waitFor(async () => {
+        expect(
+          await renderResult.findByText('Collect sample logs from instances')
+        ).toBeInTheDocument();
+      });
+      await waitFor(async () => {
+        expect(await renderResult.findByText('Sample logs')).toBeInTheDocument();
+      });
+      await waitFor(async () => {
+        expect(await renderResult.findByText('Collect sample logs')).toBeInTheDocument();
+      });
+    });
+  });
+});
diff --git a/x-pack/plugins/fleet/public/applications/fleet/sections/agent_policy/create_package_policy_page/components/steps/components/package_policy_input_panel.tsx b/x-pack/plugins/fleet/public/applications/fleet/sections/agent_policy/create_package_policy_page/components/steps/components/package_policy_input_panel.tsx
index f3ef27474cb0f8..0661c2f36a9b37 100644
--- a/x-pack/plugins/fleet/public/applications/fleet/sections/agent_policy/create_package_policy_page/components/steps/components/package_policy_input_panel.tsx
+++ b/x-pack/plugins/fleet/public/applications/fleet/sections/agent_policy/create_package_policy_page/components/steps/components/package_policy_input_panel.tsx
@@ -5,7 +5,7 @@
  * 2.0.
  */
 
-import React, { useState, Fragment, memo, useMemo } from 'react';
+import React, { useState, Fragment, memo, useMemo, useCallback } from 'react';
 import styled from 'styled-components';
 import { FormattedMessage } from '@kbn/i18n-react';
 import {
@@ -21,16 +21,17 @@ import {
 } from '@elastic/eui';
 
 import type {
-  NewPackagePolicy,
   NewPackagePolicyInput,
   PackageInfo,
   PackagePolicyInputStream,
   RegistryInput,
   RegistryStream,
   RegistryStreamWithDataStream,
+  RegistryVarsEntry,
 } from '../../../../../../types';
 import type { PackagePolicyInputValidationResults } from '../../../services';
 import { hasInvalidButRequiredVar, countValidationErrors } from '../../../services';
+import { useAgentless } from '../../../single_page_layout/hooks/setup_technology';
 
 import { PackagePolicyInputConfig } from './package_policy_input_config';
 import { PackagePolicyInputStreamConfig } from './package_policy_input_stream';
@@ -74,10 +75,8 @@ export const shouldShowStreamsByDefault = (
 export const PackagePolicyInputPanel: React.FunctionComponent<{
   packageInput: RegistryInput;
   packageInfo: PackageInfo;
-  packagePolicy: NewPackagePolicy;
   packageInputStreams: RegistryStreamWithDataStream[];
   packagePolicyInput: NewPackagePolicyInput;
-  updatePackagePolicy: (updatedPackagePolicy: Partial<NewPackagePolicy>) => void;
   updatePackagePolicyInput: (updatedInput: Partial<NewPackagePolicyInput>) => void;
   inputValidationResults: PackagePolicyInputValidationResults;
   forceShowErrors?: boolean;
@@ -88,14 +87,14 @@ export const PackagePolicyInputPanel: React.FunctionComponent<{
     packageInfo,
     packageInputStreams,
     packagePolicyInput,
-    packagePolicy,
-    updatePackagePolicy,
     updatePackagePolicyInput,
     inputValidationResults,
     forceShowErrors,
     isEditPage = false,
   }) => {
     const defaultDataStreamId = useDataStreamId();
+    const { isAgentlessEnabled } = useAgentless();
+
     // Showing streams toggle state
     const [isShowingStreams, setIsShowingStreams] = useState<boolean>(() =>
       shouldShowStreamsByDefault(
@@ -106,6 +105,33 @@ export const PackagePolicyInputPanel: React.FunctionComponent<{
       )
     );
 
+    // Hide registry variables based on `hide_in_deployment_modes` value
+    const hideRegistryVars = useCallback(
+      (registryVar: RegistryVarsEntry) => {
+        if (!registryVar.hide_in_deployment_modes) return false;
+        return (
+          (isAgentlessEnabled &&
+            !!registryVar.hide_in_deployment_modes?.find((mode) => mode === 'agentless')) ||
+          (!isAgentlessEnabled &&
+            !!registryVar.hide_in_deployment_modes?.find((mode) => mode === 'default'))
+        );
+      },
+      [isAgentlessEnabled]
+    );
+
+    const packageInputStreamShouldBeVisible = useCallback(
+      (packageInputStream: RegistryStreamWithDataStream) => {
+        return (
+          !!packageInputStream.vars &&
+          packageInputStream.vars.length > 0 &&
+          !!packageInputStream.vars.find(
+            (registryVar: RegistryVarsEntry) => !hideRegistryVars(registryVar)
+          )
+        );
+      },
+      [hideRegistryVars]
+    );
+
     // Errors state
     const errorCount = inputValidationResults && countValidationErrors(inputValidationResults);
     const hasErrors = forceShowErrors && errorCount;
@@ -114,9 +140,11 @@ export const PackagePolicyInputPanel: React.FunctionComponent<{
       () => packageInputStreams.length > 0,
       [packageInputStreams.length]
     );
+
     const inputStreams = useMemo(
       () =>
         packageInputStreams
+          .filter((packageInputStream) => packageInputStreamShouldBeVisible(packageInputStream))
           .map((packageInputStream) => {
             return {
               packageInputStream,
@@ -126,7 +154,7 @@ export const PackagePolicyInputPanel: React.FunctionComponent<{
             };
           })
           .filter((stream) => Boolean(stream.packagePolicyInputStream)),
-      [packageInputStreams, packagePolicyInput.streams]
+      [packageInputStreamShouldBeVisible, packageInputStreams, packagePolicyInput.streams]
     );
 
     const titleElementId = useMemo(() => htmlIdGenerator()(), []);
@@ -137,11 +165,17 @@ export const PackagePolicyInputPanel: React.FunctionComponent<{
         <EuiFlexGroup justifyContent="spaceBetween" alignItems="center">
           <EuiFlexItem grow={false}>
             <EuiSwitch
+              data-test-subj="PackagePolicy.InputStreamConfig.Switch"
               label={
                 <EuiFlexGroup alignItems="center" gutterSize="s">
                   <EuiFlexItem grow={false}>
                     <EuiTitle size="xs">
-                      <h3 id={titleElementId}>{packageInput.title || packageInput.type}</h3>
+                      <h3
+                        data-test-subj="PackagePolicy.InputStreamConfig.title"
+                        id={titleElementId}
+                      >
+                        {packageInput.title || packageInput.type}
+                      </h3>
                     </EuiTitle>
                   </EuiFlexItem>
                 </EuiFlexGroup>
@@ -203,6 +237,7 @@ export const PackagePolicyInputPanel: React.FunctionComponent<{
         {isShowingStreams && packageInput.vars && packageInput.vars.length ? (
           <Fragment>
             <PackagePolicyInputConfig
+              data-test-subj="PackagePolicy.InputConfig"
               hasInputStreams={hasInputStreams}
               packageInputVars={packageInput.vars}
               packagePolicyInput={packagePolicyInput}
@@ -217,15 +252,14 @@ export const PackagePolicyInputPanel: React.FunctionComponent<{
 
         {/* Per-stream policy */}
         {isShowingStreams ? (
-          <EuiFlexGroup direction="column">
+          <EuiFlexGroup direction="column" data-test-subj="PackagePolicy.InputConfig.streams">
             {inputStreams.map(({ packageInputStream, packagePolicyInputStream }, index) => (
               <EuiFlexItem key={index}>
                 <PackagePolicyInputStreamConfig
+                  data-test-subj="PackagePolicy.InputStreamConfig"
                   packageInfo={packageInfo}
-                  packagePolicy={packagePolicy}
                   packageInputStream={packageInputStream}
                   packagePolicyInputStream={packagePolicyInputStream!}
-                  updatePackagePolicy={updatePackagePolicy}
                   updatePackagePolicyInputStream={(
                     updatedStream: Partial<PackagePolicyInputStream>
                   ) => {
diff --git a/x-pack/plugins/fleet/public/applications/fleet/sections/agent_policy/create_package_policy_page/components/steps/components/package_policy_input_stream.tsx b/x-pack/plugins/fleet/public/applications/fleet/sections/agent_policy/create_package_policy_page/components/steps/components/package_policy_input_stream.tsx
index 6b1bfaaaa09619..8bb916f1d7c02c 100644
--- a/x-pack/plugins/fleet/public/applications/fleet/sections/agent_policy/create_package_policy_page/components/steps/components/package_policy_input_stream.tsx
+++ b/x-pack/plugins/fleet/public/applications/fleet/sections/agent_policy/create_package_policy_page/components/steps/components/package_policy_input_stream.tsx
@@ -33,7 +33,6 @@ import {
 } from '../../../../../../../../../common/services';
 
 import type {
-  NewPackagePolicy,
   NewPackagePolicyInputStream,
   PackageInfo,
   RegistryStreamWithDataStream,
@@ -57,11 +56,9 @@ const ScrollAnchor = styled.div`
 `;
 
 interface Props {
-  packagePolicy: NewPackagePolicy;
   packageInputStream: RegistryStreamWithDataStream;
   packageInfo: PackageInfo;
   packagePolicyInputStream: NewPackagePolicyInputStream;
-  updatePackagePolicy: (updatedPackagePolicy: Partial<NewPackagePolicy>) => void;
   updatePackagePolicyInputStream: (updatedStream: Partial<NewPackagePolicyInputStream>) => void;
   inputStreamValidationResults: PackagePolicyConfigValidationResults;
   forceShowErrors?: boolean;
@@ -70,11 +67,9 @@ interface Props {
 
 export const PackagePolicyInputStreamConfig = memo<Props>(
   ({
-    packagePolicy,
     packageInputStream,
     packageInfo,
     packagePolicyInputStream,
-    updatePackagePolicy,
     updatePackagePolicyInputStream,
     inputStreamValidationResults,
     forceShowErrors,
@@ -136,9 +131,8 @@ export const PackagePolicyInputStreamConfig = memo<Props>(
           }
         });
       }
-
       return [_requiredVars, _advancedVars];
-    }, [packageInputStream.vars]);
+    }, [packageInputStream]);
 
     const advancedVarsWithErrorsCount: number = useMemo(
       () =>
@@ -171,7 +165,7 @@ export const PackagePolicyInputStreamConfig = memo<Props>(
 
     return (
       <>
-        <EuiFlexGrid columns={2}>
+        <EuiFlexGrid columns={2} data-test-subj="streamOptions.inputStreams">
           <ScrollAnchor ref={containerRef} />
           <EuiFlexItem>
             <EuiFlexGroup gutterSize="none" alignItems="flexStart">
@@ -185,6 +179,7 @@ export const PackagePolicyInputStreamConfig = memo<Props>(
                   {packageInfo.type !== 'input' && (
                     <EuiFlexItem grow={false}>
                       <EuiSwitch
+                        data-test-subj="streamOptions.switch"
                         label={packageInputStream.title}
                         disabled={packagePolicyInputStream.keep_enabled}
                         checked={packagePolicyInputStream.enabled}
@@ -227,7 +222,6 @@ export const PackagePolicyInputStreamConfig = memo<Props>(
                 const varConfigEntry = packagePolicyInputStream.vars?.[varName];
                 const value = varConfigEntry?.value;
                 const frozen = varConfigEntry?.frozen ?? false;
-
                 return (
                   <EuiFlexItem key={varName}>
                     <PackagePolicyInputVarField
diff --git a/x-pack/plugins/fleet/public/applications/fleet/sections/agent_policy/create_package_policy_page/components/steps/step_configure_package.tsx b/x-pack/plugins/fleet/public/applications/fleet/sections/agent_policy/create_package_policy_page/components/steps/step_configure_package.tsx
index 5fc13bd223800e..269bcecb78e40d 100644
--- a/x-pack/plugins/fleet/public/applications/fleet/sections/agent_policy/create_package_policy_page/components/steps/step_configure_package.tsx
+++ b/x-pack/plugins/fleet/public/applications/fleet/sections/agent_policy/create_package_policy_page/components/steps/step_configure_package.tsx
@@ -84,10 +84,8 @@ export const StepConfigurePackagePolicy: React.FunctionComponent<{
                   <PackagePolicyInputPanel
                     packageInput={packageInput}
                     packageInfo={packageInfo}
-                    packagePolicy={packagePolicy}
                     packageInputStreams={packageInputStreams}
                     packagePolicyInput={packagePolicyInput}
-                    updatePackagePolicy={updatePackagePolicy}
                     updatePackagePolicyInput={(updatedInput: Partial<NewPackagePolicyInput>) => {
                       const indexOfUpdatedInput = packagePolicy.inputs.findIndex(
                         (input) =>
diff --git a/x-pack/plugins/fleet/public/applications/fleet/sections/agent_policy/create_package_policy_page/single_page_layout/components/layout.tsx b/x-pack/plugins/fleet/public/applications/fleet/sections/agent_policy/create_package_policy_page/single_page_layout/components/layout.tsx
index 535b129278f4f3..21d08d71eb5f7f 100644
--- a/x-pack/plugins/fleet/public/applications/fleet/sections/agent_policy/create_package_policy_page/single_page_layout/components/layout.tsx
+++ b/x-pack/plugins/fleet/public/applications/fleet/sections/agent_policy/create_package_policy_page/single_page_layout/components/layout.tsx
@@ -19,7 +19,7 @@ import {
   EuiSpacer,
 } from '@elastic/eui';
 
-import { useAgentlessPolicy } from '../hooks/setup_technology';
+import { useAgentless } from '../hooks/setup_technology';
 
 import { WithHeaderLayout } from '../../../../../layouts';
 import type { AgentPolicy, PackageInfo, RegistryPolicyTemplate } from '../../../../../types';
@@ -233,8 +233,8 @@ export const CreatePackagePolicySinglePageLayout: React.FunctionComponent<{
       </EuiFlexGroup>
     );
 
-    const { isAgentlessPolicyId } = useAgentlessPolicy();
-    const hasAgentBasedPolicyId = !isAgentlessPolicyId(agentPolicy?.id);
+    const { isAgentlessAgentPolicy } = useAgentless();
+    const hasAgentBasedPolicyId = !isAgentlessAgentPolicy(agentPolicy);
     const showAgentPolicyName = agentPolicy && (isAdd || isEdit) && hasAgentBasedPolicyId;
 
     const rightColumn = showAgentPolicyName ? (
diff --git a/x-pack/plugins/fleet/public/applications/fleet/sections/agent_policy/create_package_policy_page/single_page_layout/hooks/form.tsx b/x-pack/plugins/fleet/public/applications/fleet/sections/agent_policy/create_package_policy_page/single_page_layout/hooks/form.tsx
index f7b46d95f1e678..0ce292cd5cba6e 100644
--- a/x-pack/plugins/fleet/public/applications/fleet/sections/agent_policy/create_package_policy_page/single_page_layout/hooks/form.tsx
+++ b/x-pack/plugins/fleet/public/applications/fleet/sections/agent_policy/create_package_policy_page/single_page_layout/hooks/form.tsx
@@ -48,7 +48,7 @@ import {
   getCloudShellUrlFromPackagePolicy,
 } from '../../../../../../../components/cloud_security_posture/services';
 
-import { useAgentlessPolicy } from './setup_technology';
+import { useAgentless } from './setup_technology';
 
 async function createAgentPolicy({
   packagePolicy,
@@ -134,7 +134,8 @@ export function useOnSubmit({
   const [hasAgentPolicyError, setHasAgentPolicyError] = useState<boolean>(false);
   const hasErrors = validationResults ? validationHasErrors(validationResults) : false;
 
-  const { isAgentlessPolicyId } = useAgentlessPolicy();
+  const { isAgentlessIntegration, isAgentlessAgentPolicy, isAgentlessPackagePolicy } =
+    useAgentless();
 
   // Update agent policy method
   const updateAgentPolicy = useCallback(
@@ -261,11 +262,7 @@ export function useOnSubmit({
         setFormState('INVALID');
         return;
       }
-      if (
-        agentCount !== 0 &&
-        !isAgentlessPolicyId(packagePolicy?.policy_id) &&
-        formState !== 'CONFIRM'
-      ) {
+      if (agentCount !== 0 && !isAgentlessIntegration(packageInfo) && formState !== 'CONFIRM') {
         setFormState('CONFIRM');
         return;
       }
@@ -320,7 +317,12 @@ export function useOnSubmit({
       }
 
       const agentPolicyIdToSave = createdPolicy?.id ?? packagePolicy.policy_id;
-      const shouldForceInstallOnAgentless = isAgentlessPolicyId(agentPolicyIdToSave);
+
+      const shouldForceInstallOnAgentless =
+        isAgentlessAgentPolicy(createdPolicy) ||
+        isAgentlessIntegration(packageInfo) ||
+        isAgentlessPackagePolicy(packagePolicy);
+
       const forceInstall = force || shouldForceInstallOnAgentless;
 
       setFormState('LOADING');
@@ -424,18 +426,20 @@ export function useOnSubmit({
       formState,
       hasErrors,
       agentCount,
-      packagePolicy,
+      isAgentlessIntegration,
+      packageInfo,
       selectedPolicyTab,
-      isAgentlessPolicyId,
+      packagePolicy,
+      isAgentlessAgentPolicy,
+      isAgentlessPackagePolicy,
+      hasFleetAddAgentsPrivileges,
       withSysMonitoring,
       newAgentPolicy,
       updatePackagePolicy,
-      packageInfo,
       notifications.toasts,
       agentPolicy,
       onSaveNavigate,
       confirmForceInstall,
-      hasFleetAddAgentsPrivileges,
     ]
   );
 
diff --git a/x-pack/plugins/fleet/public/applications/fleet/sections/agent_policy/create_package_policy_page/single_page_layout/hooks/setup_technology.ts b/x-pack/plugins/fleet/public/applications/fleet/sections/agent_policy/create_package_policy_page/single_page_layout/hooks/setup_technology.ts
index 2eab867e2ae121..8642b84d7e1e49 100644
--- a/x-pack/plugins/fleet/public/applications/fleet/sections/agent_policy/create_package_policy_page/single_page_layout/hooks/setup_technology.ts
+++ b/x-pack/plugins/fleet/public/applications/fleet/sections/agent_policy/create_package_policy_page/single_page_layout/hooks/setup_technology.ts
@@ -8,24 +8,56 @@
 import { useCallback, useEffect, useState } from 'react';
 
 import { ExperimentalFeaturesService } from '../../../../../services';
-import type { AgentPolicy, NewAgentPolicy } from '../../../../../types';
+import type {
+  AgentPolicy,
+  NewAgentPolicy,
+  NewPackagePolicy,
+  PackageInfo,
+} from '../../../../../types';
 import { SetupTechnology } from '../../../../../types';
 import { sendGetOneAgentPolicy, useStartServices } from '../../../../../hooks';
 import { SelectedPolicyTab } from '../../components';
 import { AGENTLESS_POLICY_ID } from '../../../../../../../../common/constants';
 
-export const useAgentlessPolicy = () => {
+export const useAgentless = () => {
   const { agentless: agentlessExperimentalFeatureEnabled } = ExperimentalFeaturesService.get();
   const { cloud } = useStartServices();
   const isServerless = !!cloud?.isServerlessEnabled;
 
   const isAgentlessEnabled = agentlessExperimentalFeatureEnabled && isServerless;
-  const isAgentlessPolicyId = (id: string | undefined) =>
-    isAgentlessEnabled && id === AGENTLESS_POLICY_ID;
 
+  const isAgentlessAgentPolicy = (agentPolicy: AgentPolicy | undefined) => {
+    if (!agentPolicy) return false;
+    return (
+      isAgentlessEnabled &&
+      (agentPolicy?.id === AGENTLESS_POLICY_ID || !!agentPolicy?.supports_agentless)
+    );
+  };
+
+  // When an integration has at least a policy template enabled for agentless
+  const isAgentlessIntegration = (packageInfo: PackageInfo | undefined) => {
+    if (
+      isAgentlessEnabled &&
+      packageInfo?.policy_templates &&
+      packageInfo?.policy_templates.length > 0 &&
+      !!packageInfo?.policy_templates.find(
+        (policyTemplate) => policyTemplate?.deployment_modes?.agentless.enabled === true
+      )
+    ) {
+      return true;
+    }
+    return false;
+  };
+
+  // TODO: remove this check when CSPM implements the above flag and rely only on `isAgentlessIntegration`
+  const isAgentlessPackagePolicy = (packagePolicy: NewPackagePolicy) => {
+    return isAgentlessEnabled && packagePolicy.policy_id === AGENTLESS_POLICY_ID;
+  };
   return {
     isAgentlessEnabled,
-    isAgentlessPolicyId,
+    isAgentlessAgentPolicy,
+    isAgentlessIntegration,
+    isAgentlessPackagePolicy,
   };
 };
 
@@ -34,18 +66,26 @@ export function useSetupTechnology({
   newAgentPolicy,
   updateAgentPolicy,
   setSelectedPolicyTab,
+  packageInfo,
 }: {
   updateNewAgentPolicy: (policy: NewAgentPolicy) => void;
   newAgentPolicy: NewAgentPolicy;
   updateAgentPolicy: (policy: AgentPolicy | undefined) => void;
   setSelectedPolicyTab: (tab: SelectedPolicyTab) => void;
+  packageInfo?: PackageInfo;
 }) {
-  const { isAgentlessEnabled } = useAgentlessPolicy();
+  const { isAgentlessEnabled, isAgentlessIntegration } = useAgentless();
   const [selectedSetupTechnology, setSelectedSetupTechnology] = useState<SetupTechnology>(
     SetupTechnology.AGENT_BASED
   );
   const [agentlessPolicy, setAgentlessPolicy] = useState<AgentPolicy | undefined>();
 
+  useEffect(() => {
+    if (isAgentlessEnabled && packageInfo && isAgentlessIntegration(packageInfo)) {
+      setSelectedSetupTechnology(SetupTechnology.AGENTLESS);
+    }
+  }, [isAgentlessEnabled, isAgentlessIntegration, packageInfo]);
+
   useEffect(() => {
     const fetchAgentlessPolicy = async () => {
       const { data, error } = await sendGetOneAgentPolicy(AGENTLESS_POLICY_ID);
diff --git a/x-pack/plugins/fleet/public/applications/fleet/sections/agent_policy/create_package_policy_page/single_page_layout/index.test.tsx b/x-pack/plugins/fleet/public/applications/fleet/sections/agent_policy/create_package_policy_page/single_page_layout/index.test.tsx
index c7518cff99f088..88d52d55549594 100644
--- a/x-pack/plugins/fleet/public/applications/fleet/sections/agent_policy/create_package_policy_page/single_page_layout/index.test.tsx
+++ b/x-pack/plugins/fleet/public/applications/fleet/sections/agent_policy/create_package_policy_page/single_page_layout/index.test.tsx
@@ -128,7 +128,7 @@ afterAll(() => {
   consoleDebugMock.mockRestore();
 });
 
-describe('when on the package policy create page', () => {
+describe('When on the package policy create page', () => {
   const createPageUrlPath = pagePathGetters.add_integration_to_policy({ pkgkey: 'nginx-1.3.0' })[1];
 
   let testRenderer: TestRenderer;
@@ -229,7 +229,7 @@ describe('when on the package policy create page', () => {
     (useGetPackageInfoByKeyQuery as jest.Mock).mockReturnValue(getMockPackageInfo());
   });
 
-  describe('and Route state is provided via Fleet HashRouter', () => {
+  describe('And Route state is provided via Fleet HashRouter', () => {
     let expectedRouteState: CreatePackagePolicyRouteState;
 
     beforeEach(() => {
@@ -271,7 +271,7 @@ describe('when on the package policy create page', () => {
     });
   });
 
-  describe('submit page', () => {
+  describe('Submit page', () => {
     const newPackagePolicy = {
       description: '',
       enabled: true,
@@ -453,7 +453,7 @@ describe('when on the package policy create page', () => {
       });
     });
 
-    describe('on save navigate', () => {
+    describe('On save navigate', () => {
       async function setupSaveNavigate(routeState: any, queryParamsPolicyId?: string) {
         (useIntraAppState as jest.MockedFunction<any>).mockReturnValue(routeState);
         render(queryParamsPolicyId);
@@ -563,7 +563,7 @@ describe('when on the package policy create page', () => {
       );
     });
 
-    describe('without query param', () => {
+    describe('Without query param', () => {
       beforeEach(async () => {
         await act(async () => {
           render();
@@ -736,7 +736,7 @@ describe('when on the package policy create page', () => {
       });
     });
 
-    describe('with agentless policy available', () => {
+    describe('With agentless policy available', () => {
       beforeEach(async () => {
         (sendGetOneAgentPolicy as jest.MockedFunction<any>).mockResolvedValue({
           data: { item: { id: AGENTLESS_POLICY_ID, name: 'Agentless CSPM', namespace: 'default' } },
@@ -756,6 +756,13 @@ describe('when on the package policy create page', () => {
       });
 
       test('should not force create package policy when not in serverless', async () => {
+        (useStartServices as jest.MockedFunction<any>).mockReturnValue({
+          ...useStartServices(),
+          cloud: {
+            ...useStartServices().cloud,
+            isServerlessEnabled: false,
+          },
+        });
         await act(async () => {
           fireEvent.click(renderResult.getByText('Existing hosts')!);
         });
diff --git a/x-pack/plugins/fleet/public/applications/fleet/sections/agent_policy/create_package_policy_page/single_page_layout/index.tsx b/x-pack/plugins/fleet/public/applications/fleet/sections/agent_policy/create_package_policy_page/single_page_layout/index.tsx
index 3d2446bc729ddd..1781e79c999bc3 100644
--- a/x-pack/plugins/fleet/public/applications/fleet/sections/agent_policy/create_package_policy_page/single_page_layout/index.tsx
+++ b/x-pack/plugins/fleet/public/applications/fleet/sections/agent_policy/create_package_policy_page/single_page_layout/index.tsx
@@ -329,6 +329,7 @@ export const CreatePackagePolicySinglePage: CreatePackagePolicyParams = ({
       updateNewAgentPolicy,
       updateAgentPolicy,
       setSelectedPolicyTab,
+      packageInfo,
     });
 
   const replaceStepConfigurePackagePolicy =
diff --git a/x-pack/plugins/fleet/server/services/agent_policy.test.ts b/x-pack/plugins/fleet/server/services/agent_policy.test.ts
index 1f6ae15606c462..9811445af6ee3e 100644
--- a/x-pack/plugins/fleet/server/services/agent_policy.test.ts
+++ b/x-pack/plugins/fleet/server/services/agent_policy.test.ts
@@ -278,7 +278,7 @@ describe('Agent policy', () => {
       );
     });
 
-    it('should not throw error if support_agentless is set if agentless feature flag is set in serverless', async () => {
+    it('should create a policy with is_managed true if agentless feature flag is set and in serverless env', async () => {
       jest
         .spyOn(appContextService, 'getExperimentalFeatures')
         .mockReturnValue({ agentless: true } as any);
@@ -289,13 +289,31 @@ describe('Agent policy', () => {
       const soClient = getAgentPolicyCreateMock();
       const esClient = elasticsearchServiceMock.createClusterClient().asInternalUser;
 
-      await expect(
-        agentPolicyService.create(soClient, esClient, {
-          name: 'test',
-          namespace: 'default',
-          supports_agentless: true,
-        })
-      ).resolves.not.toThrow();
+      soClient.find.mockResolvedValueOnce({
+        total: 0,
+        saved_objects: [],
+        per_page: 0,
+        page: 1,
+      });
+
+      const res = await agentPolicyService.create(soClient, esClient, {
+        name: 'test',
+        namespace: 'default',
+        supports_agentless: true,
+      });
+      expect(res).toEqual({
+        id: 'mocked',
+        name: 'test',
+        namespace: 'default',
+        supports_agentless: true,
+        status: 'active',
+        is_managed: true,
+        revision: 1,
+        updated_at: expect.anything(),
+        updated_by: 'system',
+        schema_version: '1.1.1',
+        is_protected: false,
+      });
     });
   });
 
diff --git a/x-pack/plugins/fleet/server/services/agent_policy.ts b/x-pack/plugins/fleet/server/services/agent_policy.ts
index 95de0d05e86b95..635948a5ca4e31 100644
--- a/x-pack/plugins/fleet/server/services/agent_policy.ts
+++ b/x-pack/plugins/fleet/server/services/agent_policy.ts
@@ -332,7 +332,7 @@ class AgentPolicyService {
       {
         ...agentPolicy,
         status: 'active',
-        is_managed: agentPolicy.is_managed ?? false,
+        is_managed: (agentPolicy.is_managed || agentPolicy?.supports_agentless) ?? false,
         revision: 1,
         updated_at: new Date().toISOString(),
         updated_by: options?.user?.username || 'system',