diff --git a/go.mod b/go.mod
index 42a9fd74d..57b51dc76 100644
--- a/go.mod
+++ b/go.mod
@@ -82,3 +82,5 @@ require (
 	sigs.k8s.io/json v0.0.0-20221116044647-bc3834ca7abd // indirect
 	sigs.k8s.io/yaml v1.4.0 // indirect
 )
+
+replace k8s.io/api => k8s.io/api v0.0.0-20240718103906-7c71f3c0b7a7 // feature-branch
diff --git a/go.sum b/go.sum
index 78551be8b..92b26e18b 100644
--- a/go.sum
+++ b/go.sum
@@ -188,8 +188,8 @@ gopkg.in/yaml.v2 v2.4.0/go.mod h1:RDklbk79AGWmwhnvt/jBztapEOGDOx6ZbXqjP6csGnQ=
 gopkg.in/yaml.v3 v3.0.0-20200313102051-9f266ea9e77c/go.mod h1:K4uyk7z7BCEPqu6E+C64Yfv1cQ7kz7rIZviUmN+EgEM=
 gopkg.in/yaml.v3 v3.0.1 h1:fxVm/GzAzEWqLHuvctI91KS9hhNmmWOoWu0XTYJS7CA=
 gopkg.in/yaml.v3 v3.0.1/go.mod h1:K4uyk7z7BCEPqu6E+C64Yfv1cQ7kz7rIZviUmN+EgEM=
-k8s.io/api v0.29.4 h1:WEnF/XdxuCxdG3ayHNRR8yH3cI1B/llkWBma6bq4R3w=
-k8s.io/api v0.29.4/go.mod h1:DetSv0t4FBTcEpfA84NJV3g9a7+rSzlUHk5ADAYHUv0=
+k8s.io/api v0.0.0-20240718103906-7c71f3c0b7a7 h1:yum8NOR/ysIRWDiCZuVbLvHCmeuM2KHc/8voO+xoivw=
+k8s.io/api v0.0.0-20240718103906-7c71f3c0b7a7/go.mod h1:AFqQkkEfmsUH52cPeKeWVm6eQZJUan7p62A0JEH+azM=
 k8s.io/apiextensions-apiserver v0.29.2 h1:UK3xB5lOWSnhaCk0RFZ0LUacPZz9RY4wi/yt2Iu+btg=
 k8s.io/apiextensions-apiserver v0.29.2/go.mod h1:aLfYjpA5p3OwtqNXQFkhJ56TB+spV8Gc4wfMhUA3/b8=
 k8s.io/apimachinery v0.29.4 h1:RaFdJiDmuKs/8cm1M6Dh1Kvyh59YQFDcFuFTSmXes6Q=
diff --git a/pkg/util/testing/wrappers.go b/pkg/util/testing/wrappers.go
index a08eef463..232e7841a 100644
--- a/pkg/util/testing/wrappers.go
+++ b/pkg/util/testing/wrappers.go
@@ -254,6 +254,12 @@ func (j *JobTemplateWrapper) PodSpec(podSpec corev1.PodSpec) *JobTemplateWrapper
 	return j
 }
 
+// PodFailurePolicy sets the Job pod failure policy
+func (j *JobTemplateWrapper) PodFailurePolicy(podFailurePolicy batchv1.PodFailurePolicy) *JobTemplateWrapper {
+	j.Spec.PodFailurePolicy = &podFailurePolicy
+	return j
+}
+
 // SetAnnotations sets the annotations on the Job template.
 func (j *JobTemplateWrapper) SetAnnotations(annotations map[string]string) *JobTemplateWrapper {
 	j.Annotations = annotations
diff --git a/test/e2e/e2e_test.go b/test/e2e/e2e_test.go
index 8c713a721..7e920e83e 100644
--- a/test/e2e/e2e_test.go
+++ b/test/e2e/e2e_test.go
@@ -21,6 +21,7 @@ import (
 
 	"github.com/onsi/ginkgo/v2"
 	"github.com/onsi/gomega"
+	v1 "k8s.io/api/batch/v1"
 	corev1 "k8s.io/api/core/v1"
 	metav1 "k8s.io/apimachinery/pkg/apis/meta/v1"
 	"k8s.io/apimachinery/pkg/types"
@@ -130,7 +131,54 @@ var _ = ginkgo.Describe("JobSet", func() {
 			util.JobSetDeleted(ctx, k8sClient, js, timeout)
 		})
 	})
+	ginkgo.When("pod failure policy is used", func() {
+		ginkgo.It("should allow to fail the Job on exit code", func() {
+			ctx := context.Background()
+
+			// This test verifies that the PodFailurePolicy terminated the Job
+			// Otherwise the pod restarts, with the default backoffLimit of 6
+			// the Pod restarts would take cumulatively at least:
+			// 10+20+40+80+160+320=630s (exceeding the test timeout)
+			ginkgo.By("creating jobset with ttl seconds after finished")
+			jsWrapper := testing.MakeJobSet("job-pod-failure-policy", ns.Name).
+				TTLSecondsAfterFinished(5).
+				ReplicatedJob(testing.MakeReplicatedJob("rjob").
+					Job(testing.MakeJobTemplate("job", ns.Name).
+						PodFailurePolicy(v1.PodFailurePolicy{
+							Rules: []v1.PodFailurePolicyRule{
+								{
+									Action: v1.PodFailurePolicyActionFailJob,
+									OnExitCodes: &v1.PodFailurePolicyOnExitCodesRequirement{
+										Operator: v1.PodFailurePolicyOnExitCodesOpIn,
+										Values:   []int32{42},
+									},
+								},
+							},
+						}).
+						PodSpec(corev1.PodSpec{
+							RestartPolicy: "Never",
+							Containers: []corev1.Container{
+								{
+									Name:    "sleep-test-container",
+									Image:   "bash:latest",
+									Command: []string{"bash", "-c"},
+									Args:    []string{"exit 42"},
+								},
+							},
+						}).Obj()).
+					Replicas(int32(1)).
+					Obj())
+			js := jsWrapper.Obj()
 
+			// Verify jobset created successfully.
+			ginkgo.By("checking that jobset creation succeeds")
+			gomega.Expect(k8sClient.Create(ctx, js)).Should(gomega.Succeed())
+
+			// Check jobset status if specified.
+			ginkgo.By("checking jobset condition")
+			util.JobSetFailed(ctx, k8sClient, js, timeout)
+		})
+	})
 }) // end of Describe
 
 // getPingCommand returns ping command for 4 hostnames