diff --git a/charts/cluster-api-runtime-extensions-nutanix/addons/cni/cilium/values-template.yaml b/charts/cluster-api-runtime-extensions-nutanix/addons/cni/cilium/values-template.yaml
index eeaf24497..c4fa5ee70 100644
--- a/charts/cluster-api-runtime-extensions-nutanix/addons/cni/cilium/values-template.yaml
+++ b/charts/cluster-api-runtime-extensions-nutanix/addons/cni/cilium/values-template.yaml
@@ -1,5 +1,7 @@
 cni:
+{{- if not .EnableKubeProxyReplacement }}
   chainingMode: portmap
+{{- end }}
   exclusive: false
 hubble:
   enabled: true