diff --git a/tests/pkg/utils/mco_managedcluster.go b/tests/pkg/utils/mco_managedcluster.go
index a92b4e205..9e96ffe4b 100644
--- a/tests/pkg/utils/mco_managedcluster.go
+++ b/tests/pkg/utils/mco_managedcluster.go
@@ -7,6 +7,7 @@ package utils
 import (
 	"context"
 	"errors"
+	"os"
 
 	goversion "github.com/hashicorp/go-version"
 	metav1 "k8s.io/apimachinery/pkg/apis/meta/v1"
@@ -52,12 +53,13 @@ func ListManagedClusters(opt TestOptions) ([]string, error) {
 		metadata := obj.Object["metadata"].(map[string]interface{})
 		name := metadata["name"].(string)
 		labels := metadata["labels"].(map[string]interface{})
+		if os.Getenv("IS_KIND_ENV") == "true" {
+			// We do not have the obs add on label added in kind cluster
+			clusterNames = append(clusterNames, name)
+			continue
+		}
 		if labels != nil {
-			obsControllerStr := ""
-			if obsController, ok := labels["feature.open-cluster-management.io/addon-observability-controller"]; ok {
-				obsControllerStr = obsController.(string)
-			}
-			if obsControllerStr != "unreachable" {
+			if obsController, ok := labels["feature.open-cluster-management.io/addon-observability-controller"]; ok && obsController.(string) != "unreachable" {
 				clusterNames = append(clusterNames, name)
 			}
 		}