diff --git a/deployments/gpu_plugin/overlays/fake_devices/add-nfd-feature-file.yaml b/deployments/gpu_plugin/overlays/fake_devices/add-nfd-feature-file.yaml
new file mode 100644
index 000000000..e55126102
--- /dev/null
+++ b/deployments/gpu_plugin/overlays/fake_devices/add-nfd-feature-file.yaml
@@ -0,0 +1,30 @@
+apiVersion: apps/v1
+kind: DaemonSet
+metadata:
+  name: intel-gpu-plugin
+spec:
+  template:
+    spec:
+      containers:
+      - name: intel-gpu-nfd
+        # convert generated sysfs content to NFD feature labels file
+        image: intel/intel-gpu-initcontainer:devel
+        imagePullPolicy: IfNotPresent
+        securityContext:
+          readOnlyRootFilesystem: true
+          allowPrivilegeEscalation: false
+          capabilities:
+            drop: [ "ALL" ]
+        volumeMounts:
+        - name: nfd-features
+          mountPath: /nfd
+          readOnly: false
+        workingDir: /usr/local/bin/gpu-sw
+        # needed until GPU plugin drops NFD hook usage due to:
+        # https://github.com/kubernetes-sigs/node-feature-discovery/issues/856
+        command: ["sh", "-c", "while true; do ./intel-gpu-nfdhook | tee /nfd/fake-gpu; sleep 99999; done"]
+      volumes:
+      - name: nfd-features
+        hostPath:
+          path: /etc/kubernetes/node-feature-discovery/features.d/
+          type: DirectoryOrCreate
diff --git a/deployments/gpu_plugin/overlays/fake_devices/del-intel-gpu-initcontainer.yaml b/deployments/gpu_plugin/overlays/fake_devices/del-intel-gpu-initcontainer.yaml
new file mode 100644
index 000000000..725978a49
--- /dev/null
+++ b/deployments/gpu_plugin/overlays/fake_devices/del-intel-gpu-initcontainer.yaml
@@ -0,0 +1,10 @@
+apiVersion: apps/v1
+kind: DaemonSet
+metadata:
+  name: intel-gpu-plugin
+spec:
+  template:
+    spec:
+      initContainers:
+      - name: intel-gpu-initcontainer
+        $patch: delete
diff --git a/deployments/gpu_plugin/overlays/fake_devices/fake-device-volumes.yaml b/deployments/gpu_plugin/overlays/fake_devices/fake-device-volumes.yaml
new file mode 100644
index 000000000..950995ede
--- /dev/null
+++ b/deployments/gpu_plugin/overlays/fake_devices/fake-device-volumes.yaml
@@ -0,0 +1,49 @@
+apiVersion: apps/v1
+kind: DaemonSet
+metadata:
+  name: intel-gpu-plugin
+spec:
+  template:
+    spec:
+      initContainers:
+      - name: fakedev-generator
+        # container runtime prevents writing to /sys & /dev,
+        # so volumes need to be mounted elsewhere
+        volumeMounts:
+        - name: devfs
+          mountPath: /tmp/fakedev/dev
+          readOnly: false
+        - name: sysfs
+          mountPath: /tmp/fakedev/sys
+          readOnly: false
+        # files are generated under CWD
+        workingDir: /tmp/fakedev
+      containers:
+      - name: intel-gpu-nfd
+        # expects sysfs here
+        volumeMounts:
+        - name: sysfs
+          mountPath: /host-sys
+          readOnly: true
+      - name: intel-gpu-plugin
+        args: [
+          "-prefix=/tmp/fakedev",
+          "-shared-dev-num=2",
+          "-enable-monitoring",
+          "-resource-manager"
+        ]
+        # devfs host & container paths must match for everything to work
+        volumeMounts:
+        - name: devfs
+          mountPath: /tmp/fakedev/dev
+          readOnly: true
+        - name: sysfs
+          mountPath: /tmp/fakedev/sys
+          readOnly: true
+      volumes:
+      - name: devfs
+        hostPath:
+          path: /tmp/fakedev/dev
+          type: DirectoryOrCreate
+      - name: sysfs
+        emptyDir: {}
diff --git a/deployments/gpu_plugin/overlays/fake_devices/fakedev-config.json b/deployments/gpu_plugin/overlays/fake_devices/fakedev-config.json
new file mode 100644
index 000000000..2fcaa5b45
--- /dev/null
+++ b/deployments/gpu_plugin/overlays/fake_devices/fakedev-config.json
@@ -0,0 +1,8 @@
+{
+	"Info": "8x 4 GiB DG1 [Iris Xe MAX Graphics] GPUs",
+	"DevCount": 8,
+	"DevMemSize": 4294967296,
+	"Capabilities": {
+		"platform": "fake_DG1"
+	}
+}
diff --git a/deployments/gpu_plugin/overlays/fake_devices/generate-fake-devices.yaml b/deployments/gpu_plugin/overlays/fake_devices/generate-fake-devices.yaml
new file mode 100644
index 000000000..4bf038aae
--- /dev/null
+++ b/deployments/gpu_plugin/overlays/fake_devices/generate-fake-devices.yaml
@@ -0,0 +1,24 @@
+apiVersion: apps/v1
+kind: DaemonSet
+metadata:
+  name: intel-gpu-plugin
+spec:
+  template:
+    spec:
+      volumes:
+      - name: fake-conf
+        configMap:
+          name: fakedev-config
+      initContainers:
+      - name: fakedev-generator
+        image: intel/intel-gpu-fakedev:devel
+        securityContext:
+          runAsUser: 0
+          readOnlyRootFilesystem: false
+          allowPrivilegeEscalation: false
+        volumeMounts:
+        - name: fake-conf
+          mountPath: /config
+          readOnly: true
+        # generate fake sysfs / devfs files for GPU plugin based on config
+        command: ["/generator", "-json", "/config/fakedev.json", "-verbose"]
diff --git a/deployments/gpu_plugin/overlays/fake_devices/kustomization.yaml b/deployments/gpu_plugin/overlays/fake_devices/kustomization.yaml
new file mode 100644
index 000000000..2d4aeb242
--- /dev/null
+++ b/deployments/gpu_plugin/overlays/fake_devices/kustomization.yaml
@@ -0,0 +1,15 @@
+apiVersion: kustomize.config.k8s.io/v1beta1
+kind: Kustomization
+bases:
+  - ../fractional_resources
+configMapGenerator:
+- name: fakedev-config
+  files:
+  - fakedev-config.json
+patches:
+  - fake-device-volumes.yaml
+  - generate-fake-devices.yaml
+  # NFD feature file changes is obsolete after GPU plugin moves away from NFD hooks
+  # https://github.com/kubernetes-sigs/node-feature-discovery/issues/856
+  - del-intel-gpu-initcontainer.yaml
+  - add-nfd-feature-file.yaml