diff --git a/test/integration/run.sh b/test/integration/run.sh
index 2b97b81e..0d36e2c2 100755
--- a/test/integration/run.sh
+++ b/test/integration/run.sh
@@ -147,6 +147,7 @@ ${kubectl} create namespace ${test_ns} || fail "Could not create namespace ${tes
 . ${dir}/test-cases/issue-1880-transformers-with-file-deps.sh
 . ${dir}/test-cases/issue-821-adhoc-dep-go-getter.sh
 . ${dir}/test-cases/issue-2599-default-inherit.sh
+. ${dir}/test-cases/issue-1172-selector-required-env.sh
 . ${dir}/test-cases/kubedog-tracking.sh
 . ${dir}/test-cases/lookup.sh
 
diff --git a/test/integration/test-cases/issue-1172-selector-required-env.sh b/test/integration/test-cases/issue-1172-selector-required-env.sh
new file mode 100644
index 00000000..5127e263
--- /dev/null
+++ b/test/integration/test-cases/issue-1172-selector-required-env.sh
@@ -0,0 +1,67 @@
+#!/usr/bin/env bash
+
+# Test for issue #1172: Helmfile renders entire helmfile even with selector labels
+# https://github.com/helmfile/helmfile/issues/1172
+#
+# This test verifies that selector-based filtering works correctly when
+# requiredEnv is used in release values. Users set all required env vars,
+# so rendering succeeds, and selectors filter out non-matching releases.
+
+issue_1172_case_dir="$(cd "${cases_dir}/issue-1172-selector-required-env" && pwd)"
+issue_1172_tmp=$(mktemp -d)
+
+cleanup_issue_1172() {
+    rm -rf "${issue_1172_tmp}"
+}
+trap cleanup_issue_1172 EXIT
+
+test_start "issue-1172: selector filtering with requiredEnv"
+
+export ISSUE_1172_BUZZ="test-buzz-value"
+
+# Test 1: With selector tier=label2, only rel2 should be templated
+info "Test 1: helmfile template with -l tier=label2 should only template rel2"
+code=0
+${helmfile} -f "${issue_1172_case_dir}/input/helmfile.yaml.gotmpl" \
+    template -l tier=label2 > "${issue_1172_tmp}/selected.yaml" 2>&1 || code=$?
+
+if [ ${code} -ne 0 ]; then
+    cat "${issue_1172_tmp}/selected.yaml"
+    fail "helmfile template with selector should succeed when all env vars are set"
+fi
+
+if grep -q "release: rel1" "${issue_1172_tmp}/selected.yaml"; then
+    fail "rel1 should NOT be templated when selector tier=label2 is active"
+fi
+
+if ! grep -q "release: rel2" "${issue_1172_tmp}/selected.yaml"; then
+    cat "${issue_1172_tmp}/selected.yaml"
+    fail "rel2 should be templated when selector tier=label2 is active"
+fi
+
+info "PASS: only rel2 was templated with selector"
+
+# Test 2: Without selector, both releases should be templated
+info "Test 2: helmfile template without selector should template both releases"
+code=0
+${helmfile} -f "${issue_1172_case_dir}/input/helmfile.yaml.gotmpl" \
+    template > "${issue_1172_tmp}/all.yaml" 2>&1 || code=$?
+
+if [ ${code} -ne 0 ]; then
+    cat "${issue_1172_tmp}/all.yaml"
+    fail "helmfile template without selector should succeed when all env vars are set"
+fi
+
+if ! grep -q "release: rel1" "${issue_1172_tmp}/all.yaml"; then
+    fail "rel1 should be templated when no selector is active"
+fi
+
+if ! grep -q "release: rel2" "${issue_1172_tmp}/all.yaml"; then
+    fail "rel2 should be templated when no selector is active"
+fi
+
+info "PASS: both releases were templated without selector"
+
+trap - EXIT
+cleanup_issue_1172
+test_pass "issue-1172: selector filtering with requiredEnv"
diff --git a/test/integration/test-cases/issue-1172-selector-required-env/input/helmfile.yaml.gotmpl b/test/integration/test-cases/issue-1172-selector-required-env/input/helmfile.yaml.gotmpl
new file mode 100644
index 00000000..255502dd
--- /dev/null
+++ b/test/integration/test-cases/issue-1172-selector-required-env/input/helmfile.yaml.gotmpl
@@ -0,0 +1,13 @@
+releases:
+  - name: rel1
+    chart: ../../../charts/httpbin
+    labels:
+      tier: label1
+    values:
+      - image:
+          repository: {{ requiredEnv "ISSUE_1172_BUZZ" }}
+
+  - name: rel2
+    chart: ../../../charts/httpbin
+    labels:
+      tier: label2