diff --git a/api/internal/plugins/loader/loader_test.go b/api/internal/plugins/loader/loader_test.go
index 53992db52..23cf55cb9 100644
--- a/api/internal/plugins/loader/loader_test.go
+++ b/api/internal/plugins/loader/loader_test.go
@@ -87,8 +87,12 @@ func TestLoaderWithWorkingDir(t *testing.T) {
 	c := types.EnabledPluginConfig(types.BploLoadFromFileSys)
 	pLdr := NewLoader(c, rmF, fsys)
 	npLdr := pLdr.LoaderWithWorkingDir("/tmp/dummy")
+	require.Equal(t,
+		"",
+		pLdr.Config().FnpLoadingOptions.WorkingDir,
+		"the plugin working dir should not change")
 	require.Equal(t,
 		"/tmp/dummy",
 		npLdr.Config().FnpLoadingOptions.WorkingDir,
-		"plugin working dir is not set correctly")
+		"the plugin working dir is not updated")
 }
diff --git a/api/krusty/fnplugin_test.go b/api/krusty/fnplugin_test.go
index 81f6f3c82..40f63b642 100644
--- a/api/krusty/fnplugin_test.go
+++ b/api/krusty/fnplugin_test.go
@@ -41,13 +41,19 @@ spec:
 EOF
 `
 
-const krmEchoDotSh = `#!/bin/bash
-
-resourceList=$(cat)
-echo "$resourceList"
+const krmTransformerDotSh = `#!/bin/bash
+cat << EOF
+apiVersion: v1
+kind: Secret
+metadata:
+  name: dummyTransformed
+stringData:
+  foo: bar
+type: Opaque
+EOF
 `
 
-func TestFnExecGenerator(t *testing.T) {
+func TestFnExecGeneratorInBase(t *testing.T) {
 	fSys := filesys.MakeFsOnDisk()
 
 	th := kusttest_test.MakeHarnessWithFs(t, fSys)
@@ -93,7 +99,6 @@ spec:
 `)
 
 	m := th.Run(tmpDir.String(), o)
-	assert.NoError(t, err)
 	yml, err := m.AsYaml()
 	assert.NoError(t, err)
 	assert.Equal(t, `apiVersion: v1
@@ -132,7 +137,7 @@ spec:
 	assert.NoError(t, fSys.RemoveAll(tmpDir.String()))
 }
 
-func TestFnExecGeneratorInOverlay(t *testing.T) {
+func TestFnExecGeneratorInBaseWithOverlay(t *testing.T) {
 	fSys := filesys.MakeFsOnDisk()
 
 	th := kusttest_test.MakeHarnessWithFs(t, fSys)
@@ -223,7 +228,98 @@ spec:
 	assert.NoError(t, fSys.RemoveAll(tmpDir.String()))
 }
 
-func TestFnExecTransformer(t *testing.T) {
+func TestFnExecGeneratorInOverlay(t *testing.T) {
+	fSys := filesys.MakeFsOnDisk()
+
+	th := kusttest_test.MakeHarnessWithFs(t, fSys)
+	o := th.MakeOptionsPluginsEnabled()
+	o.PluginConfig.FnpLoadingOptions.EnableExec = true
+
+	tmpDir, err := filesys.NewTmpConfirmedDir()
+	assert.NoError(t, err)
+	base := filepath.Join(tmpDir.String(), "base")
+	prod := filepath.Join(tmpDir.String(), "prod")
+	assert.NoError(t, fSys.Mkdir(base))
+	assert.NoError(t, fSys.Mkdir(prod))
+	th.WriteK(base, `
+resources:
+- short_secret.yaml
+`)
+	th.WriteK(prod, `
+resources:
+- ../base
+generators:
+- gener.yaml
+`)
+	th.WriteF(filepath.Join(base, "short_secret.yaml"),
+		`
+apiVersion: v1
+kind: Secret
+metadata:
+  labels:
+    airshipit.org/ephemeral-user-data: "true"
+  name: node1-bmc-secret
+type: Opaque
+stringData:
+  userData: |
+    bootcmd:
+    - mkdir /mnt/vda
+`)
+	th.WriteF(filepath.Join(prod, "generateDeployment.sh"), generateDeploymentDotSh)
+
+	assert.NoError(t, os.Chmod(filepath.Join(prod, "generateDeployment.sh"), 0777))
+	th.WriteF(filepath.Join(prod, "gener.yaml"), `
+kind: executable
+metadata:
+  name: demo
+  annotations:
+    config.kubernetes.io/function: |
+      exec:
+        path: ./generateDeployment.sh
+spec:
+`)
+
+	m := th.Run(prod, o)
+	assert.NoError(t, err)
+	yml, err := m.AsYaml()
+	assert.NoError(t, err)
+	assert.Equal(t, `apiVersion: v1
+kind: Secret
+metadata:
+  labels:
+    airshipit.org/ephemeral-user-data: "true"
+  name: node1-bmc-secret
+stringData:
+  userData: |
+    bootcmd:
+    - mkdir /mnt/vda
+type: Opaque
+---
+apiVersion: apps/v1
+kind: Deployment
+metadata:
+  annotations:
+    tshirt-size: small
+  labels:
+    app: nginx
+  name: nginx
+spec:
+  selector:
+    matchLabels:
+      app: nginx
+  template:
+    metadata:
+      labels:
+        app: nginx
+    spec:
+      containers:
+      - image: nginx
+        name: nginx
+`, string(yml))
+	assert.NoError(t, fSys.RemoveAll(tmpDir.String()))
+}
+
+func TestFnExecTransformerInBase(t *testing.T) {
 	fSys := filesys.MakeFsOnDisk()
 
 	th := kusttest_test.MakeHarnessWithFs(t, fSys)
@@ -238,7 +334,7 @@ func TestFnExecTransformer(t *testing.T) {
 resources:
 - secret.yaml
 transformers:
-- krm-echo.yaml
+- krm-transformer.yaml
 `)
 	th.WriteF(filepath.Join(base, "secret.yaml"),
 		`
@@ -250,10 +346,10 @@ type: Opaque
 stringData:
   foo: bar
 `)
-	th.WriteF(filepath.Join(base, "krmEcho.sh"), krmEchoDotSh)
+	th.WriteF(filepath.Join(base, "krmTransformer.sh"), krmTransformerDotSh)
 
-	assert.NoError(t, os.Chmod(filepath.Join(base, "krmEcho.sh"), 0777))
-	th.WriteF(filepath.Join(base, "krm-echo.yaml"), `
+	assert.NoError(t, os.Chmod(filepath.Join(base, "krmTransformer.sh"), 0777))
+	th.WriteF(filepath.Join(base, "krm-transformer.yaml"), `
 apiVersion: examples.config.kubernetes.io/v1beta1
 kind: MyPlugin
 metadata:
@@ -261,17 +357,77 @@ metadata:
   annotations:
     config.kubernetes.io/function: |
       exec:
-        path: ./krmEcho.sh
+        path: ./krmTransformer.sh
 `)
 
 	m := th.Run(base, o)
-	assert.NoError(t, err)
 	yml, err := m.AsYaml()
 	assert.NoError(t, err)
 	assert.Equal(t, `apiVersion: v1
 kind: Secret
+metadata:
+  name: dummyTransformed
+stringData:
+  foo: bar
+type: Opaque
+`, string(yml))
+	assert.NoError(t, fSys.RemoveAll(tmpDir.String()))
+}
+
+func TestFnExecTransformerInBaseWithOverlay(t *testing.T) {
+	fSys := filesys.MakeFsOnDisk()
+
+	th := kusttest_test.MakeHarnessWithFs(t, fSys)
+	o := th.MakeOptionsPluginsEnabled()
+	o.PluginConfig.FnpLoadingOptions.EnableExec = true
+
+	tmpDir, err := filesys.NewTmpConfirmedDir()
+	assert.NoError(t, err)
+	base := filepath.Join(tmpDir.String(), "base")
+	prod := filepath.Join(tmpDir.String(), "prod")
+	assert.NoError(t, fSys.Mkdir(base))
+	assert.NoError(t, fSys.Mkdir(prod))
+	th.WriteK(base, `
+resources:
+- secret.yaml
+transformers:
+- krm-transformer.yaml
+`)
+	th.WriteK(prod, `
+resources:
+- ../base
+`)
+	th.WriteF(filepath.Join(base, "secret.yaml"),
+		`
+apiVersion: v1
+kind: Secret
 metadata:
   name: dummy
+type: Opaque
+stringData:
+  foo: bar
+`)
+	th.WriteF(filepath.Join(base, "krmTransformer.sh"), krmTransformerDotSh)
+
+	assert.NoError(t, os.Chmod(filepath.Join(base, "krmTransformer.sh"), 0777))
+	th.WriteF(filepath.Join(base, "krm-transformer.yaml"), `
+apiVersion: examples.config.kubernetes.io/v1beta1
+kind: MyPlugin
+metadata:
+  name: notImportantHere
+  annotations:
+    config.kubernetes.io/function: |
+      exec:
+        path: ./krmTransformer.sh
+`)
+
+	m := th.Run(prod, o)
+	yml, err := m.AsYaml()
+	assert.NoError(t, err)
+	assert.Equal(t, `apiVersion: v1
+kind: Secret
+metadata:
+  name: dummyTransformed
 stringData:
   foo: bar
 type: Opaque
@@ -300,7 +456,7 @@ resources:
 resources:
 - ../base
 transformers:
-- krm-echo.yaml
+- krm-transformer.yaml
 `)
 	th.WriteF(filepath.Join(base, "secret.yaml"),
 		`
@@ -312,10 +468,10 @@ type: Opaque
 stringData:
   foo: bar
 `)
-	th.WriteF(filepath.Join(prod, "krmEcho.sh"), krmEchoDotSh)
+	th.WriteF(filepath.Join(prod, "krmTransformer.sh"), krmTransformerDotSh)
 
-	assert.NoError(t, os.Chmod(filepath.Join(prod, "krmEcho.sh"), 0777))
-	th.WriteF(filepath.Join(prod, "krm-echo.yaml"), `
+	assert.NoError(t, os.Chmod(filepath.Join(prod, "krmTransformer.sh"), 0777))
+	th.WriteF(filepath.Join(prod, "krm-transformer.yaml"), `
 apiVersion: examples.config.kubernetes.io/v1beta1
 kind: MyPlugin
 metadata:
@@ -323,17 +479,16 @@ metadata:
   annotations:
     config.kubernetes.io/function: |
       exec:
-        path: ./krmEcho.sh
+        path: ./krmTransformer.sh
 `)
 
 	m := th.Run(prod, o)
-	assert.NoError(t, err)
 	yml, err := m.AsYaml()
 	assert.NoError(t, err)
 	assert.Equal(t, `apiVersion: v1
 kind: Secret
 metadata:
-  name: dummy
+  name: dummyTransformed
 stringData:
   foo: bar
 type: Opaque