diff --git a/config/overlays/odh/inferenceservice-config-patch.yaml b/config/overlays/odh/inferenceservice-config-patch.yaml
new file mode 100644
index 00000000000..e40682fd0cc
--- /dev/null
+++ b/config/overlays/odh/inferenceservice-config-patch.yaml
@@ -0,0 +1,70 @@
+apiVersion: v1
+kind: ConfigMap
+metadata:
+  name: inferenceservice-config
+  namespace: kserve
+data:
+  explainers: "{}"
+  storageInitializer: |-
+    {
+        "image" : "$(kserve-storage-initializer)",
+        "memoryRequest": "100Mi",
+        "memoryLimit": "1Gi",
+        "cpuRequest": "100m",
+        "cpuLimit": "1",
+        "enableDirectPvcVolumeMount": false
+    }
+  ingress: |-
+    {
+        "ingressGateway" : "knative-serving/knative-ingress-gateway",
+        "ingressService" : "istio-ingressgateway.istio-system.svc.cluster.local",
+        "localGateway" : "knative-serving/knative-local-gateway",
+        "localGatewayService" : "knative-local-gateway.istio-system.svc.cluster.local",
+        "ingressDomain"  : "example.com",
+        "ingressClassName" : "istio",
+        "domainTemplate": "{{ .Name }}-{{ .Namespace }}.{{ .IngressDomain }}",
+        "urlScheme": "https",
+        "disableIstioVirtualHost": true
+    }
+  logger: |-
+    {
+        "image" : "$(kserve-agent)",
+        "memoryRequest": "100Mi",
+        "memoryLimit": "1Gi",
+        "cpuRequest": "100m",
+        "cpuLimit": "1",
+        "defaultUrl": "http://default-broker"
+    }
+  batcher: |-
+    {
+        "image" : "$(kserve-agent)",
+        "memoryRequest": "1Gi",
+        "memoryLimit": "1Gi",
+        "cpuRequest": "1",
+        "cpuLimit": "1"
+    }
+  agent: |-
+    {
+        "image" : "$(kserve-agent)",
+        "memoryRequest": "100Mi",
+        "memoryLimit": "1Gi",
+        "cpuRequest": "100m",
+        "cpuLimit": "1"
+    }
+  router: |-
+    {
+        "image" : "$(kserve-router)",
+        "memoryRequest": "100Mi",
+        "memoryLimit": "1Gi",
+        "cpuRequest": "100m",
+        "cpuLimit": "1"
+    }
+  deploy: |-
+    {
+      "defaultDeploymentMode": "Serverless"
+    }
+  metricsAggregator: |-
+    {
+      "enableMetricAggregation": "false",
+      "enablePrometheusScraping" : "false"
+    }
diff --git a/config/overlays/odh/kustomization.yaml b/config/overlays/odh/kustomization.yaml
index 87ae27f946f..b6ec0336989 100644
--- a/config/overlays/odh/kustomization.yaml
+++ b/config/overlays/odh/kustomization.yaml
@@ -5,5 +5,55 @@ resources:
 - ../../default
 - user-cluster-roles.yaml
 
-patchesStrategicMerge:
-- remove-namespace.yaml
+namespace: opendatahub
+
+patches:
+- path: remove-namespace.yaml
+- path: inferenceservice-config-patch.yaml
+
+replacements:
+- source:
+    kind: ConfigMap
+    name: kserve-parameters
+    fieldpath: data.kserve-controller
+  targets:
+  - select:
+      kind: Deployment
+      name: kserve-controller-manager
+    fieldPaths:
+    - spec.template.spec.containers.[name=manager].image
+
+configMapGenerator:
+- envs:
+  - params.env
+  name: kserve-parameters
+
+generatorOptions:
+  disableNameSuffixHash: true
+
+vars:
+- fieldref:
+    fieldpath: data.kserve-storage-initializer
+  name: kserve-storage-initializer
+  objref:
+    apiVersion: v1
+    kind: ConfigMap
+    name: kserve-parameters
+- fieldref:
+    fieldpath: data.kserve-agent
+  name: kserve-agent
+  objref:
+    apiVersion: v1
+    kind: ConfigMap
+    name: kserve-parameters
+- fieldref:
+    fieldpath: data.kserve-router
+  name: kserve-router
+  objref:
+    apiVersion: v1
+    kind: ConfigMap
+    name: kserve-parameters
+
+configurations:
+  - params.yaml
+
diff --git a/config/overlays/odh/params.env b/config/overlays/odh/params.env
new file mode 100644
index 00000000000..f4233dc6a6e
--- /dev/null
+++ b/config/overlays/odh/params.env
@@ -0,0 +1,4 @@
+kserve-controller=quay.io/opendatahub/kserve-controller:latest
+kserve-agent=quay.io/opendatahub/kserve-agent:latest
+kserve-router=quay.io/opendatahub/kserve-router:latest
+kserve-storage-initializer=quay.io/opendatahub/kserve-storage-initializer:latest
diff --git a/config/overlays/odh/params.yaml b/config/overlays/odh/params.yaml
new file mode 100644
index 00000000000..dc7f5878ccf
--- /dev/null
+++ b/config/overlays/odh/params.yaml
@@ -0,0 +1,5 @@
+varReference:
+  - path: spec/template/spec/containers/image
+    kind: Deployment
+  - path: data
+    kind: ConfigMap
diff --git a/test/scripts/openshift-ci/deploy.serverless.sh b/test/scripts/openshift-ci/deploy.serverless.sh
index 9c66d85eeb6..93e4d1c60a1 100755
--- a/test/scripts/openshift-ci/deploy.serverless.sh
+++ b/test/scripts/openshift-ci/deploy.serverless.sh
@@ -98,6 +98,12 @@ spec:
       enabled: true
 EOF
 
+# Apparently, as part of KNative installation, deployments can be restarted because
+# of configuration changes, leading to waitpodready to fail sometimes.
+# Let's sleep 2minutes to let the KNative operator to stabilize the installation before
+# checking for the readiness of KNative stack.
+sleep 120
+
 waitpodready "knative-serving" "app=controller"
 waitpodready "knative-serving" "app=net-istio-controller"
 waitpodready "knative-serving" "app=net-istio-webhook"