diff --git a/api/krusty/no_list_items_test.go b/api/krusty/no_list_items_test.go
index 27b8ae726..b6cc58742 100644
--- a/api/krusty/no_list_items_test.go
+++ b/api/krusty/no_list_items_test.go
@@ -61,8 +61,6 @@ metadata:
 apiVersion: example.com/v1alpha1
 kind: MyResourceList
 metadata:
-  annotations:
-    kustomize.config.k8s.io/convertToInlineList: "false"
   name: test
 rules: []
 `)
@@ -77,8 +75,6 @@ metadata:
 apiVersion: example.com/v1alpha1
 kind: MyResourceList
 metadata:
-  annotations:
-    kustomize.config.k8s.io/convertToInlineList: "false"
   name: test
 rules: []
 `)
@@ -95,8 +91,6 @@ resources:
 apiVersion: infra.protonbase.io/v1alpha1
 kind: AccessWhiteList
 metadata:
-  annotations:
-    kustomize.config.k8s.io/convertToInlineList: "false"
   name: wlmls5769f
   namespace: dc7i4hyxzw
 spec:
@@ -110,8 +104,6 @@ spec:
 apiVersion: infra.protonbase.io/v1alpha1
 kind: AccessWhiteList
 metadata:
-  annotations:
-    kustomize.config.k8s.io/convertToInlineList: "false"
   name: wlmls5769f
   namespace: dc7i4hyxzw
 spec:
@@ -119,4 +111,104 @@ spec:
   - sourceIps: 0.0.0.0/16
 `)
   
+}
+
+func TestListToIndividualResources(t *testing.T) {
+  th := kusttest_test.MakeHarness(t)
+  th.WriteK(".", `
+resources:
+- list.yaml
+`)
+
+  th.WriteF("list.yaml", `
+apiVersion: v1
+kind: PodList
+items:
+  - apiVersion: v1
+    kind: Pod
+    metadata:
+      name: my-pod-1
+      namespace: default
+      labels:
+        app: my-app
+    spec:
+      containers:
+        - name: my-container
+          image: nginx:1.19.10
+          ports:
+            - containerPort: 80
+  - apiVersion: v1
+    kind: Pod
+    metadata:
+      name: my-pod-2
+      namespace: default
+      labels:
+        app: my-app
+    spec:
+      containers:
+        - name: my-container
+          image: nginx:1.19.10
+          ports:
+            - containerPort: 80
+  - apiVersion: v1
+    kind: Pod
+    metadata:
+      name: my-pod-3
+      namespace: default
+      labels:
+        app: my-app
+    spec:
+      containers:
+        - name: my-container
+          image: nginx:1.19.10
+          ports:
+            - containerPort: 80
+`)
+
+  m := th.Run(".", th.MakeDefaultOptions())
+
+
+  th.AssertActualEqualsExpected(m, `
+apiVersion: v1
+kind: Pod
+metadata:
+  labels:
+    app: my-app
+  name: my-pod-1
+  namespace: default
+spec:
+  containers:
+  - image: nginx:1.19.10
+    name: my-container
+    ports:
+    - containerPort: 80
+---
+apiVersion: v1
+kind: Pod
+metadata:
+  labels:
+    app: my-app
+  name: my-pod-2
+  namespace: default
+spec:
+  containers:
+  - image: nginx:1.19.10
+    name: my-container
+    ports:
+    - containerPort: 80
+---
+apiVersion: v1
+kind: Pod
+metadata:
+  labels:
+    app: my-app
+  name: my-pod-3
+  namespace: default
+spec:
+  containers:
+  - image: nginx:1.19.10
+    name: my-container
+    ports:
+    - containerPort: 80
+`)
 }
\ No newline at end of file
diff --git a/api/resource/factory.go b/api/resource/factory.go
index c4c6a6e9a..a42f93bb8 100644
--- a/api/resource/factory.go
+++ b/api/resource/factory.go
@@ -7,7 +7,6 @@ import (
 	"encoding/json"
 	"fmt"
 	"log"
-	"strconv"
 	"strings"
 
 	"sigs.k8s.io/kustomize/api/ifc"
@@ -190,16 +189,6 @@ func (rf *Factory) inlineAnyEmbeddedLists(
 	var n0 *yaml.RNode
 	for len(nodes) > 0 {
 		n0, nodes = nodes[0], nodes[1:]
-		annotations := n0.GetAnnotations()
-		convertToInlineList, err := strconv.ParseBool(annotations["kustomize.config.k8s.io/convertToInlineList"])
-		if err != nil {
-			convertToInlineList = true
-		}
-		if !convertToInlineList {
-			// if the annotation is set to true, then we should not convert the list to inline
-			result = append(result, n0)
-			continue
-		}
 		kind := n0.GetKind()
 		if !strings.HasSuffix(kind, "List") {
 			result = append(result, n0)
@@ -213,7 +202,10 @@ func (rf *Factory) inlineAnyEmbeddedLists(
 		}
 		items, ok := m["items"]
 		if !ok {
-			// treat as an empty list
+			// Items field is not present.
+			// This is not a collections resource.
+			// read more https://kubernetes.io/docs/reference/using-api/api-concepts/#collections
+			result = append(result, n0)
 			continue
 		}
 		slice, ok := items.([]interface{})