diff --git a/changelog/fragments/helm-dependent-cache-selector.yaml b/changelog/fragments/helm-dependent-cache-selector.yaml
new file mode 100644
index 00000000000..2590b3c097e
--- /dev/null
+++ b/changelog/fragments/helm-dependent-cache-selector.yaml
@@ -0,0 +1,7 @@
+entries:
+  - description: >
+      For Helm-based operators that watch all namespaces, the cache for dependent
+      resources is filtered by the `helm.sdk.operatorframework.io/chart` label again,
+      instead of holding every object of each dependent kind in the cluster.
+    kind: bugfix
+    breaking: false
diff --git a/internal/cmd/helm-operator/run/cmd.go b/internal/cmd/helm-operator/run/cmd.go
index f42a8b62590..cddf30412db 100644
--- a/internal/cmd/helm-operator/run/cmd.go
+++ b/internal/cmd/helm-operator/run/cmd.go
@@ -237,12 +237,12 @@ func configureWatchNamespaces(options *manager.Options, log logr.Logger) {
 		}
 	} else {
 		log.Info("Watching all namespaces")
-		// in order to properly establish cluster level watches
-		// we need to override the default label selectors configured
-		// in later config steps
-		namespaceConfigs[metav1.NamespaceAll] = cache.Config{
-			LabelSelector: labels.Everything(),
-		}
+		// Leave LabelSelector unset so dependent resources fall back to the
+		// chart-label DefaultLabelSelector set in configureSelectors. A
+		// selector here would take precedence over it and cache every object
+		// of each dependent kind in the cluster. Watched custom resources keep
+		// their own ByObject selector.
+		namespaceConfigs[metav1.NamespaceAll] = cache.Config{}
 	}
 
 	options.Cache.DefaultNamespaces = namespaceConfigs
diff --git a/internal/cmd/helm-operator/run/cmd_test.go b/internal/cmd/helm-operator/run/cmd_test.go
new file mode 100644
index 00000000000..fdf956c6aa6
--- /dev/null
+++ b/internal/cmd/helm-operator/run/cmd_test.go
@@ -0,0 +1,59 @@
+// Copyright 2026 The Operator-SDK Authors
+//
+// Licensed under the Apache License, Version 2.0 (the "License");
+// you may not use this file except in compliance with the License.
+// You may obtain a copy of the License at
+//
+//     http://www.apache.org/licenses/LICENSE-2.0
+//
+// Unless required by applicable law or agreed to in writing, software
+// distributed under the License is distributed on an "AS IS" BASIS,
+// WITHOUT WARRANTIES OR CONDITIONS OF ANY KIND, either express or implied.
+// See the License for the specific language governing permissions and
+// limitations under the License.
+
+package run
+
+import (
+	"testing"
+
+	"github.com/go-logr/logr"
+	"github.com/stretchr/testify/assert"
+	metav1 "k8s.io/apimachinery/pkg/apis/meta/v1"
+	"sigs.k8s.io/controller-runtime/pkg/cache"
+	"sigs.k8s.io/controller-runtime/pkg/manager"
+
+	"github.com/operator-framework/operator-sdk/internal/util/k8sutil"
+)
+
+func TestConfigureWatchNamespaces(t *testing.T) {
+	tests := []struct {
+		name           string
+		watchNamespace string
+		want           map[string]cache.Config
+	}{
+		{
+			// A label selector on the all-namespaces config would take
+			// precedence over the chart-label DefaultLabelSelector and cache
+			// every object of each dependent kind in the cluster.
+			name:           "Should leave the label selector unset when watching all namespaces",
+			watchNamespace: "",
+			want:           map[string]cache.Config{metav1.NamespaceAll: {}},
+		},
+		{
+			name:           "Should configure each listed namespace",
+			watchNamespace: "ns1, ns2",
+			want:           map[string]cache.Config{"ns1": {}, "ns2": {}},
+		},
+	}
+	for _, tc := range tests {
+		t.Run(tc.name, func(t *testing.T) {
+			t.Setenv(k8sutil.WatchNamespaceEnvVar, tc.watchNamespace)
+			options := manager.Options{}
+
+			configureWatchNamespaces(&options, logr.Discard())
+
+			assert.Equal(t, tc.want, options.Cache.DefaultNamespaces)
+		})
+	}
+}