diff --git a/acceptance/testdata/runnerdeploy.envsubst.yaml b/acceptance/testdata/runnerdeploy.envsubst.yaml
index ad935125..4ac0b704 100644
--- a/acceptance/testdata/runnerdeploy.envsubst.yaml
+++ b/acceptance/testdata/runnerdeploy.envsubst.yaml
@@ -28,6 +28,7 @@ spec:
       ## Replace `mumoshu/actions-runner-dind:dev` with your dind image
       #dockerdWithinRunnerContainer: true
       #image: mumoshu/actions-runner-dind:dev
+      dockerdWithinRunnerContainer: ${RUNNER_DOCKERD_WITHIN_RUNNER_CONTAINER}
 
       #
       # Set the MTU used by dockerd-managed network interfaces (including docker-build-ubuntu)
diff --git a/test/e2e/e2e_test.go b/test/e2e/e2e_test.go
index e6d25f12..3b24ba91 100644
--- a/test/e2e/e2e_test.go
+++ b/test/e2e/e2e_test.go
@@ -17,12 +17,15 @@ var (
 	controllerImageTag  = "e2e"
 	controllerImage     = testing.Img(controllerImageRepo, controllerImageTag)
 	runnerImageRepo     = "actionsrunnercontrollere2e/actions-runner"
+	runnerDindImageRepo = "actionsrunnercontrollere2e/actions-runner-dind"
 	runnerImageTag      = "e2e"
 	runnerImage         = testing.Img(runnerImageRepo, runnerImageTag)
+	runnerDindImage     = testing.Img(runnerDindImageRepo, runnerImageTag)
 
 	prebuildImages = []testing.ContainerImage{
 		controllerImage,
 		runnerImage,
+		runnerDindImage,
 	}
 
 	builds = []testing.DockerBuild{
@@ -36,6 +39,11 @@ var (
 			Args:       []testing.BuildArg{},
 			Image:      runnerImage,
 		},
+		{
+			Dockerfile: "../../runner/Dockerfile.dindrunner",
+			Args:       []testing.BuildArg{},
+			Image:      runnerDindImage,
+		},
 	}
 
 	certManagerVersion = "v1.1.1"
@@ -52,7 +60,6 @@ var (
 		"SYNC_PERIOD=" + "10s",
 		"NAME=" + controllerImageRepo,
 		"VERSION=" + controllerImageTag,
-		"RUNNER_NAME=" + runnerImageRepo,
 		"RUNNER_TAG=" + runnerImageTag,
 	}
 
@@ -173,6 +180,7 @@ type env struct {
 	githubTokenWebhook                                       string
 	testEnterprise                                           string
 	featureFlagEphemeral                                     bool
+	dockerdWithinRunnerContainer                             bool
 	testJobs                                                 []job
 }
 
@@ -203,6 +211,12 @@ func initTestEnv(t *testing.T) *env {
 	ephemeral, _ := strconv.ParseBool(testing.Getenv(t, "TEST_FEATURE_FLAG_EPHEMERAL"))
 	e.featureFlagEphemeral = ephemeral
 
+	var err error
+	e.dockerdWithinRunnerContainer, err = strconv.ParseBool(testing.Getenv(t, "TEST_RUNNER_DOCKERD_WITHIN_RUNNER_CONTAINER", "false"))
+	if err != nil {
+		panic(fmt.Sprintf("unable to parse bool from TEST_RUNNER_DOCKERD_WITHIN_RUNNER_CONTAINER: %v", err))
+	}
+
 	return e
 }
 
@@ -260,6 +274,18 @@ func (e *env) installActionsRunnerController(t *testing.T) {
 		fmt.Sprintf("RUNNER_FEATURE_FLAG_EPHEMERAL=%v", e.featureFlagEphemeral),
 	}
 
+	if e.dockerdWithinRunnerContainer {
+		varEnv = append(varEnv,
+			"RUNNER_DOCKERD_WITHIN_RUNNER_CONTAINER=true",
+			"RUNNER_NAME="+runnerDindImageRepo,
+		)
+	} else {
+		varEnv = append(varEnv,
+			"RUNNER_DOCKERD_WITHIN_RUNNER_CONTAINER=false",
+			"RUNNER_NAME="+runnerImageRepo,
+		)
+	}
+
 	scriptEnv = append(scriptEnv, varEnv...)
 	scriptEnv = append(scriptEnv, commonScriptEnv...)