diff --git a/test/framework/cluster_proxy.go b/test/framework/cluster_proxy.go
index 3dc92278dc1a..a275fcb80439 100644
--- a/test/framework/cluster_proxy.go
+++ b/test/framework/cluster_proxy.go
@@ -188,12 +188,14 @@ type clusterProxy struct {
 }
 
 // NewClusterProxy returns a clusterProxy given a KubeconfigPath and the scheme defining the types hosted in the cluster.
-// If a kubeconfig file isn't provided, standard kubeconfig locations will be used (kubectl loading rules apply).
+// If a kubeconfig file isn't provided, standard kubeconfig locations will be used (first with in-cluster, then kubectl loading rules apply).
 func NewClusterProxy(name string, kubeconfigPath string, scheme *runtime.Scheme, options ...Option) ClusterProxy {
 	Expect(scheme).NotTo(BeNil(), "scheme is required for NewClusterProxy")
 
 	if kubeconfigPath == "" {
-		kubeconfigPath = clientcmd.NewDefaultClientConfigLoadingRules().GetDefaultFilename()
+		if _, err := rest.InClusterConfig(); err != nil {
+			kubeconfigPath = clientcmd.NewDefaultClientConfigLoadingRules().GetDefaultFilename()
+		}
 	}
 
 	proxy := &clusterProxy{
@@ -354,11 +356,18 @@ func (p *clusterProxy) CreateOrUpdate(ctx context.Context, resources []byte, opt
 }
 
 func (p *clusterProxy) GetRESTConfig() *rest.Config {
-	config, err := clientcmd.LoadFromFile(p.kubeconfigPath)
-	Expect(err).ToNot(HaveOccurred(), "Failed to load Kubeconfig file from %q", p.kubeconfigPath)
-
-	restConfig, err := clientcmd.NewDefaultClientConfig(*config, &clientcmd.ConfigOverrides{}).ClientConfig()
-	Expect(err).ToNot(HaveOccurred(), "Failed to get ClientConfig from %q", p.kubeconfigPath)
+	var restConfig *rest.Config
+	var err error
+	if p.kubeconfigPath == "" {
+		restConfig, err = rest.InClusterConfig()
+		Expect(err).NotTo(HaveOccurred(), "Failed to get in-cluster config")
+	} else {
+		config, err := clientcmd.LoadFromFile(p.kubeconfigPath)
+		Expect(err).ToNot(HaveOccurred(), "Failed to load Kubeconfig file from %q", p.kubeconfigPath)
+
+		restConfig, err = clientcmd.NewDefaultClientConfig(*config, &clientcmd.ConfigOverrides{}).ClientConfig()
+		Expect(err).ToNot(HaveOccurred(), "Failed to get ClientConfig from %q", p.kubeconfigPath)
+	}
 
 	restConfig.UserAgent = "cluster-api-e2e"