diff --git a/internal/reconciler/logpipeline/fluentbit/reconciler_test.go b/internal/reconciler/logpipeline/fluentbit/reconciler_test.go
index a4f72565b..2786f2b1e 100644
--- a/internal/reconciler/logpipeline/fluentbit/reconciler_test.go
+++ b/internal/reconciler/logpipeline/fluentbit/reconciler_test.go
@@ -4,6 +4,9 @@ import (
 	"context"
 	"errors"
 	"fmt"
+	"os"
+	"sigs.k8s.io/controller-runtime/pkg/client"
+	"sigs.k8s.io/controller-runtime/pkg/client/interceptor"
 	"testing"
 	"time"
 
@@ -1076,3 +1079,60 @@ func TestCalculateChecksum(t *testing.T) {
 		require.NotEqualf(t, checksum, newChecksum, "Checksum not changed by updating certificate secret")
 	})
 }
+
+func TestCreateOrUpdateFluentBit(t *testing.T) {
+	var objects []client.Object
+	var logPipe telemetryv1alpha1.LogPipeline
+	scheme := runtime.NewScheme()
+	_ = clientgoscheme.AddToScheme(scheme)
+	_ = telemetryv1alpha1.AddToScheme(scheme)
+	pipeline := testutils.NewLogPipelineBuilder().WithName("test-fluentbit-resources").WithFinalizer("FLUENT_BIT_SECTIONS_CONFIG_MAP").WithCustomFilter("Name grep").Build()
+	fakeClient := fake.NewClientBuilder().WithScheme(scheme).WithObjects(&pipeline).WithStatusSubresource(&pipeline).WithInterceptorFuncs(interceptor.Funcs{
+		Create: func(ctx context.Context, c client.WithWatch, obj client.Object, _ ...client.CreateOption) error {
+			objects = append(objects, obj)
+			return c.Create(ctx, obj)
+		},
+	}).Build()
+
+	proberStub := commonStatusStubs.NewDaemonSetProber(nil)
+
+	flowHealthProberStub := &logpipelinemocks.FlowHealthProber{}
+	flowHealthProberStub.On("Probe", mock.Anything, pipeline.Name).Return(prober.LogPipelineProbeResult{}, nil)
+
+	istioStatusCheckerStub := &stubs.IstioStatusChecker{IsActive: false}
+
+	pipelineValidatorWithStubs := &Validator{
+		EndpointValidator:  stubs.NewEndpointValidator(nil),
+		TLSCertValidator:   stubs.NewTLSCertValidator(nil),
+		SecretRefValidator: stubs.NewSecretRefValidator(nil),
+	}
+
+	testConfig := Config{
+		DaemonSet:           types.NamespacedName{Name: "test-telemetry-fluent-bit", Namespace: "default"},
+		SectionsConfigMap:   types.NamespacedName{Name: "test-telemetry-fluent-bit-sections", Namespace: "default"},
+		FilesConfigMap:      types.NamespacedName{Name: "test-telemetry-fluent-bit-files", Namespace: "default"},
+		LuaConfigMap:        types.NamespacedName{Name: "test-telemetry-fluent-bit-lua", Namespace: "default"},
+		ParsersConfigMap:    types.NamespacedName{Name: "test-telemetry-fluent-bit-parsers", Namespace: "default"},
+		EnvConfigSecret:     types.NamespacedName{Name: "test-telemetry-fluent-bit-env", Namespace: "default"},
+		TLSFileConfigSecret: types.NamespacedName{Name: "test-telemetry-fluent-bit-output-tls-config", Namespace: "default"},
+		DaemonSetConfig: fluentbit.DaemonSetConfig{
+			FluentBitImage: "fluent/bit:latest",
+			ExporterImage:  "exporter:latest",
+		},
+	}
+	errToMsgStub := &logpipelinemocks.ErrorToMessageConverter{}
+
+	sut := New(fakeClient, testConfig, proberStub, flowHealthProberStub, istioStatusCheckerStub, pipelineValidatorWithStubs, errToMsgStub)
+	require.NoError(t, fakeClient.Get(context.Background(), types.NamespacedName{Name: pipeline.Name}, &logPipe))
+
+	err := sut.Reconcile(context.Background(), &logPipe)
+	require.NoError(t, err)
+
+	bytes, err := testutils.MarshalYAML(scheme, objects)
+	require.NoError(t, err)
+
+	goldenFileBytes, err := os.ReadFile("testdata/fluent-bit.yaml")
+	require.NoError(t, err)
+
+	require.Equal(t, string(goldenFileBytes), string(bytes))
+}
diff --git a/internal/reconciler/logpipeline/fluentbit/testdata/fluent-bit.yaml b/internal/reconciler/logpipeline/fluentbit/testdata/fluent-bit.yaml
new file mode 100644
index 000000000..3f7ddfd3e
--- /dev/null
+++ b/internal/reconciler/logpipeline/fluentbit/testdata/fluent-bit.yaml
@@ -0,0 +1,464 @@
+apiVersion: v1
+data:
+  custom_parsers.conf: |2
+
+    [PARSER]
+        Name docker_no_time
+        Format json
+        Time_Keep Off
+        Time_Key time
+        Time_Format %Y-%m-%dT%H:%M:%S.%L
+  fluent-bit.conf: |2
+
+    [SERVICE]
+        Daemon Off
+        Flush 1
+        Log_Level warn
+        Parsers_File custom_parsers.conf
+        Parsers_File dynamic-parsers/parsers.conf
+        HTTP_Server On
+        HTTP_Listen 0.0.0.0
+        HTTP_Port 2020
+        storage.path /data/flb-storage/
+        storage.metrics on
+
+    @INCLUDE dynamic/*.conf
+kind: ConfigMap
+metadata:
+  creationTimestamp: null
+  labels:
+    app.kubernetes.io/instance: telemetry
+    app.kubernetes.io/name: fluent-bit
+  name: test-telemetry-fluent-bit
+  namespace: default
+  ownerReferences:
+  - apiVersion: telemetry.kyma-project.io/v1alpha1
+    kind: LogPipeline
+    name: test-fluentbit-resources
+    uid: ""
+  resourceVersion: "1"
+---
+apiVersion: v1
+kind: ConfigMap
+metadata:
+  creationTimestamp: null
+  name: test-telemetry-fluent-bit-files
+  namespace: default
+  resourceVersion: "1"
+---
+apiVersion: v1
+data:
+  filter-script.lua: |2
+
+    function kubernetes_map_keys(tag, timestamp, record)
+      if record.kubernetes == nil then
+        return 0
+      end
+      map_keys(record.kubernetes.annotations)
+      map_keys(record.kubernetes.labels)
+      return 1, timestamp, record
+    end
+    function map_keys(table)
+      if table == nil then
+        return
+      end
+      local new_table = {}
+      local changed_keys = {}
+      for key, val in pairs(table) do
+        local mapped_key = string.gsub(key, "[%/%.]", "_")
+        if mapped_key ~= key then
+          new_table[mapped_key] = val
+          changed_keys[key] = true
+        end
+      end
+      for key in pairs(changed_keys) do
+        table[key] = nil
+      end
+      for key, val in pairs(new_table) do
+        table[key] = val
+      end
+    end
+kind: ConfigMap
+metadata:
+  creationTimestamp: null
+  labels:
+    app.kubernetes.io/instance: telemetry
+    app.kubernetes.io/name: fluent-bit
+  name: test-telemetry-fluent-bit-lua
+  namespace: default
+  ownerReferences:
+  - apiVersion: telemetry.kyma-project.io/v1alpha1
+    kind: LogPipeline
+    name: test-fluentbit-resources
+    uid: ""
+  resourceVersion: "1"
+---
+apiVersion: v1
+data:
+  parsers.conf: ""
+kind: ConfigMap
+metadata:
+  creationTimestamp: null
+  labels:
+    app.kubernetes.io/instance: telemetry
+    app.kubernetes.io/name: fluent-bit
+  name: test-telemetry-fluent-bit-parsers
+  namespace: default
+  ownerReferences:
+  - apiVersion: telemetry.kyma-project.io/v1alpha1
+    kind: LogPipeline
+    name: test-fluentbit-resources
+    uid: ""
+  resourceVersion: "1"
+---
+apiVersion: v1
+kind: ConfigMap
+metadata:
+  creationTimestamp: null
+  name: test-telemetry-fluent-bit-sections
+  namespace: default
+  resourceVersion: "1"
+---
+apiVersion: v1
+kind: Secret
+metadata:
+  creationTimestamp: null
+  name: test-telemetry-fluent-bit-env
+  namespace: default
+  resourceVersion: "1"
+---
+apiVersion: v1
+kind: Secret
+metadata:
+  creationTimestamp: null
+  name: test-telemetry-fluent-bit-output-tls-config
+  namespace: default
+  resourceVersion: "1"
+---
+apiVersion: v1
+kind: Service
+metadata:
+  annotations:
+    prometheus.io/port: "2021"
+    prometheus.io/scheme: http
+    prometheus.io/scrape: "true"
+  creationTimestamp: null
+  labels:
+    app.kubernetes.io/instance: telemetry
+    app.kubernetes.io/name: fluent-bit
+    telemetry.kyma-project.io/self-monitor: enabled
+  name: test-telemetry-fluent-bit-exporter-metrics
+  namespace: default
+  ownerReferences:
+  - apiVersion: telemetry.kyma-project.io/v1alpha1
+    kind: LogPipeline
+    name: test-fluentbit-resources
+    uid: ""
+  resourceVersion: "1"
+spec:
+  ports:
+  - name: http-metrics
+    port: 2021
+    protocol: TCP
+    targetPort: http-metrics
+  selector:
+    app.kubernetes.io/instance: telemetry
+    app.kubernetes.io/name: fluent-bit
+  type: ClusterIP
+status:
+  loadBalancer: {}
+---
+apiVersion: v1
+kind: Service
+metadata:
+  annotations:
+    prometheus.io/path: /api/v2/metrics/prometheus
+    prometheus.io/port: "2020"
+    prometheus.io/scheme: http
+    prometheus.io/scrape: "true"
+  creationTimestamp: null
+  labels:
+    app.kubernetes.io/instance: telemetry
+    app.kubernetes.io/name: fluent-bit
+    telemetry.kyma-project.io/self-monitor: enabled
+  name: test-telemetry-fluent-bit-metrics
+  namespace: default
+  ownerReferences:
+  - apiVersion: telemetry.kyma-project.io/v1alpha1
+    kind: LogPipeline
+    name: test-fluentbit-resources
+    uid: ""
+  resourceVersion: "1"
+spec:
+  ports:
+  - name: http
+    port: 2020
+    protocol: TCP
+    targetPort: http
+  selector:
+    app.kubernetes.io/instance: telemetry
+    app.kubernetes.io/name: fluent-bit
+  type: ClusterIP
+status:
+  loadBalancer: {}
+---
+apiVersion: v1
+kind: ServiceAccount
+metadata:
+  creationTimestamp: null
+  name: test-telemetry-fluent-bit
+  namespace: default
+  ownerReferences:
+  - apiVersion: telemetry.kyma-project.io/v1alpha1
+    kind: LogPipeline
+    name: test-fluentbit-resources
+    uid: ""
+  resourceVersion: "1"
+---
+apiVersion: apps/v1
+kind: DaemonSet
+metadata:
+  creationTimestamp: null
+  labels:
+    app.kubernetes.io/instance: telemetry
+    app.kubernetes.io/name: fluent-bit
+  name: test-telemetry-fluent-bit
+  namespace: default
+  ownerReferences:
+  - apiVersion: telemetry.kyma-project.io/v1alpha1
+    kind: LogPipeline
+    name: test-fluentbit-resources
+    uid: ""
+  resourceVersion: "1"
+spec:
+  selector:
+    matchLabels:
+      app.kubernetes.io/instance: telemetry
+      app.kubernetes.io/name: fluent-bit
+  template:
+    metadata:
+      annotations:
+        checksum/logpipeline-config: 52bae9e75e172cfba38acdcb7da0e183a3450464ec2b7d821a46cb46dfd11e6f
+        traffic.sidecar.istio.io/excludeInboundPorts: 2020,2021
+      creationTimestamp: null
+      labels:
+        app.kubernetes.io/instance: telemetry
+        app.kubernetes.io/name: fluent-bit
+        sidecar.istio.io/inject: "true"
+        telemetry.kyma-project.io/log-export: "true"
+    spec:
+      containers:
+      - envFrom:
+        - secretRef:
+            name: test-telemetry-fluent-bit-env
+            optional: true
+        image: fluent/bit:latest
+        imagePullPolicy: IfNotPresent
+        livenessProbe:
+          httpGet:
+            path: /
+            port: http
+        name: fluent-bit
+        ports:
+        - containerPort: 2020
+          name: http
+          protocol: TCP
+        readinessProbe:
+          httpGet:
+            path: /api/v1/health
+            port: http
+        resources:
+          limits:
+            cpu: "0"
+            memory: "0"
+          requests:
+            cpu: "0"
+            memory: "0"
+        securityContext:
+          allowPrivilegeEscalation: false
+          capabilities:
+            add:
+            - FOWNER
+            drop:
+            - ALL
+          privileged: false
+          readOnlyRootFilesystem: true
+        volumeMounts:
+        - mountPath: /fluent-bit/etc
+          name: shared-fluent-bit-config
+        - mountPath: /fluent-bit/etc/fluent-bit.conf
+          name: config
+          subPath: fluent-bit.conf
+        - mountPath: /fluent-bit/etc/dynamic/
+          name: dynamic-config
+        - mountPath: /fluent-bit/etc/dynamic-parsers/
+          name: dynamic-parsers-config
+        - mountPath: /fluent-bit/etc/custom_parsers.conf
+          name: config
+          subPath: custom_parsers.conf
+        - mountPath: /fluent-bit/scripts/filter-script.lua
+          name: luascripts
+          subPath: filter-script.lua
+        - mountPath: /var/log
+          name: varlog
+          readOnly: true
+        - mountPath: /data
+          name: varfluentbit
+        - mountPath: /files
+          name: dynamic-files
+        - mountPath: /fluent-bit/etc/output-tls-config/
+          name: output-tls-config
+          readOnly: true
+      - args:
+        - --storage-path=/data/flb-storage/
+        - --metric-name=telemetry_fsbuffer_usage_bytes
+        image: exporter:latest
+        name: exporter
+        ports:
+        - containerPort: 2021
+          name: http-metrics
+          protocol: TCP
+        resources:
+          limits:
+            cpu: 100m
+            memory: 50Mi
+          requests:
+            cpu: 1m
+            memory: 5Mi
+        securityContext:
+          allowPrivilegeEscalation: false
+          capabilities:
+            drop:
+            - ALL
+          privileged: false
+          readOnlyRootFilesystem: true
+        volumeMounts:
+        - mountPath: /data
+          name: varfluentbit
+      securityContext:
+        runAsNonRoot: false
+        seccompProfile:
+          type: RuntimeDefault
+      serviceAccountName: test-telemetry-fluent-bit
+      volumes:
+      - configMap:
+          name: test-telemetry-fluent-bit
+        name: config
+      - configMap:
+          name: test-telemetry-fluent-bit-luascripts
+        name: luascripts
+      - hostPath:
+          path: /var/log
+        name: varlog
+      - emptyDir: {}
+        name: shared-fluent-bit-config
+      - configMap:
+          name: test-telemetry-fluent-bit-sections
+          optional: true
+        name: dynamic-config
+      - configMap:
+          name: test-telemetry-fluent-bit-parsers
+          optional: true
+        name: dynamic-parsers-config
+      - configMap:
+          name: test-telemetry-fluent-bit-files
+          optional: true
+        name: dynamic-files
+      - hostPath:
+          path: /var/test-telemetry-fluent-bit
+        name: varfluentbit
+      - name: output-tls-config
+        secret:
+          secretName: test-telemetry-fluent-bit-output-tls-config
+  updateStrategy: {}
+status:
+  currentNumberScheduled: 0
+  desiredNumberScheduled: 0
+  numberMisscheduled: 0
+  numberReady: 0
+---
+apiVersion: networking.k8s.io/v1
+kind: NetworkPolicy
+metadata:
+  creationTimestamp: null
+  labels:
+    app.kubernetes.io/instance: telemetry
+    app.kubernetes.io/name: fluent-bit
+  name: test-telemetry-fluent-bit
+  namespace: default
+  ownerReferences:
+  - apiVersion: telemetry.kyma-project.io/v1alpha1
+    kind: LogPipeline
+    name: test-fluentbit-resources
+    uid: ""
+  resourceVersion: "1"
+spec:
+  egress:
+  - to:
+    - ipBlock:
+        cidr: 0.0.0.0/0
+    - ipBlock:
+        cidr: ::/0
+  ingress:
+  - from:
+    - ipBlock:
+        cidr: 0.0.0.0/0
+    - ipBlock:
+        cidr: ::/0
+    ports:
+    - port: 2021
+      protocol: TCP
+    - port: 2020
+      protocol: TCP
+  podSelector:
+    matchLabels:
+      app.kubernetes.io/instance: telemetry
+      app.kubernetes.io/name: fluent-bit
+  policyTypes:
+  - Ingress
+  - Egress
+---
+apiVersion: rbac.authorization.k8s.io/v1
+kind: ClusterRole
+metadata:
+  creationTimestamp: null
+  name: test-telemetry-fluent-bit
+  namespace: default
+  ownerReferences:
+  - apiVersion: telemetry.kyma-project.io/v1alpha1
+    kind: LogPipeline
+    name: test-fluentbit-resources
+    uid: ""
+  resourceVersion: "1"
+rules:
+- apiGroups:
+  - ""
+  resources:
+  - namespaces
+  - pods
+  verbs:
+  - get
+  - list
+  - watch
+---
+apiVersion: rbac.authorization.k8s.io/v1
+kind: ClusterRoleBinding
+metadata:
+  creationTimestamp: null
+  name: test-telemetry-fluent-bit
+  namespace: default
+  ownerReferences:
+  - apiVersion: telemetry.kyma-project.io/v1alpha1
+    kind: LogPipeline
+    name: test-fluentbit-resources
+    uid: ""
+  resourceVersion: "1"
+roleRef:
+  apiGroup: rbac.authorization.k8s.io
+  kind: ClusterRole
+  name: test-telemetry-fluent-bit
+subjects:
+- kind: ServiceAccount
+  name: test-telemetry-fluent-bit
+  namespace: default
+---