diff --git a/hack/main.go.tmpl b/hack/main.go.tmpl
index 0f08fb816..7276691ab 100644
--- a/hack/main.go.tmpl
+++ b/hack/main.go.tmpl
@@ -117,10 +117,17 @@ func main() {
 			MaxConcurrentReconciles: *maxReconcileRate,
 			Features:                &feature.Flags{},
 		},
-		Provider:       config.GetProvider(),
-		WorkspaceStore: terraform.NewWorkspaceStore(log, terraform.WithDisableInit(len(*nativeProviderPath) != 0), terraform.WithProcessReportInterval(*pollInterval)),
-		SetupFn:        clients.TerraformSetupBuilder(*terraformVersion, *nativeProviderSource, *providerVersion, scheduler),
+		Provider: config.GetProvider(),
+		SetupFn:  clients.TerraformSetupBuilder(*terraformVersion, *nativeProviderSource, *providerVersion, scheduler),
 	}
+
+	if *enableManagementPolicies {
+		o.Features.Enable(features.EnableAlphaManagementPolicies)
+		log.Info("Alpha feature enabled", "flag", features.EnableAlphaManagementPolicies)
+	}
+
+	o.WorkspaceStore = terraform.NewWorkspaceStore(log, terraform.WithDisableInit(len(*nativeProviderPath) != 0), terraform.WithProcessReportInterval(*pollInterval), terraform.WithFeatures(o.Features))
+
 	if *enableExternalSecretStores {
 		o.SecretStoreConfigGVK = &v1alpha1.StoreConfigGroupVersionKind
 		log.Info("Alpha feature enabled", "flag", features.EnableAlphaExternalSecretStores)