diff --git a/keywords/cloud_platform/dcmanager/dcmanager_prestage_strategy_keywords.py b/keywords/cloud_platform/dcmanager/dcmanager_prestage_strategy_keywords.py
index 300d2d3d..0411818e 100644
--- a/keywords/cloud_platform/dcmanager/dcmanager_prestage_strategy_keywords.py
+++ b/keywords/cloud_platform/dcmanager/dcmanager_prestage_strategy_keywords.py
@@ -44,18 +44,19 @@ class DcmanagerPrestageStrategyKeywords(BaseKeyword):
         # wait for apply to complete
         return self.wait_for_state(["complete", "failed"])
 
-    def get_dcmanager_prestage_strategy_create(self, sysadmin_password: str, sw_deploy: bool = True, subcloud_name: str = None) -> DcmanagerPrestageStrategyShowOutput:
+    def get_dcmanager_prestage_strategy_create(self, sw_deploy: bool = True, subcloud_name: str = None) -> DcmanagerPrestageStrategyShowOutput:
         """Gets the prestage-strategy create.
 
         Args:
-            sysadmin_password (str): The password for the sysadmin user.
-            sw_deploy (bool): If True, include the --for-sw-deploy argument in the command.
+            sw_deploy (bool): If True, include the --for-sw-deploy argument in the command,
+             if False include --for-install argument.
             subcloud_name (str): The subcloud name.
 
         Returns:
             DcmanagerPrestageStrategyShowOutput: The output of the prestage strategy.
         """
-        sw_deploy_arg = "--for-sw-deploy" if sw_deploy else ""
+        sysadmin_password = ConfigurationManager.get_lab_config().get_admin_credentials().get_password()
+        sw_deploy_arg = "--for-sw-deploy" if sw_deploy else "--for-install"
         subcloud_name_arg = subcloud_name if subcloud_name else ""
         command = source_openrc(f"dcmanager prestage-strategy create {sw_deploy_arg} --sysadmin-password {sysadmin_password} {subcloud_name_arg}")
         output = self.ssh_connection.send(command)
@@ -120,9 +121,8 @@ class DcmanagerPrestageStrategyKeywords(BaseKeyword):
             subcloud_name (str): The subcloud name.
         """
         get_logger().log_info("Starting the prestage strategy creation, application, and deletion process.")
-        sysadmin_password = ConfigurationManager.get_lab_config().get_admin_credentials().get_password()
         get_logger().log_test_case_step("Create the prestage strategy")
-        prestage_strategy_out = self.get_dcmanager_prestage_strategy_create(sysadmin_password=sysadmin_password, sw_deploy=sw_deploy, subcloud_name=subcloud_name)
+        prestage_strategy_out = self.get_dcmanager_prestage_strategy_create(sw_deploy=sw_deploy, subcloud_name=subcloud_name)
         get_logger().log_info(f"Created prestage strategy state: {prestage_strategy_out.get_dcmanager_prestage_strategy().get_state()}")
         get_logger().log_test_case_step("Apply the strategy")
         dcman_obj = self.get_dcmanager_prestage_strategy_apply()
diff --git a/keywords/cloud_platform/dcmanager/dcmanager_sw_deploy_strategy_keywords.py b/keywords/cloud_platform/dcmanager/dcmanager_sw_deploy_strategy_keywords.py
index dab42010..b7ef6596 100644
--- a/keywords/cloud_platform/dcmanager/dcmanager_sw_deploy_strategy_keywords.py
+++ b/keywords/cloud_platform/dcmanager/dcmanager_sw_deploy_strategy_keywords.py
@@ -20,15 +20,17 @@ class DcmanagerSwDeployStrategy(BaseKeyword):
         """
         self.ssh_connection = ssh_connection
 
-    def dcmanager_sw_deploy_strategy_create(self, subcloud_name: str, sw_version: str):
+    def dcmanager_sw_deploy_strategy_create(self, subcloud_name: str, sw_version: str, with_delete: bool = False):
         """
         Runs dcmanager sw-deploy-strategy create command.
 
         Args:
             subcloud_name (str): The subcloud name.
             sw_version (str): The software version to be deployed.
+            with_delete (bool): If true, adds parameter --with-delete
         """
-        command = source_openrc(f"dcmanager sw-deploy-strategy create {subcloud_name} {sw_version}")
+        delete = "--with-delete" if with_delete else ""
+        command = source_openrc(f"dcmanager sw-deploy-strategy create {subcloud_name} {sw_version} {delete}")
 
         self.ssh_connection.send(command)
         self.validate_success_return_code(self.ssh_connection)
diff --git a/testcases/cloud_platform/regression/dc/prestage/test_prestage_with_container_images.py b/testcases/cloud_platform/regression/dc/prestage/test_prestage_with_container_images.py
new file mode 100644
index 00000000..9d99d8bb
--- /dev/null
+++ b/testcases/cloud_platform/regression/dc/prestage/test_prestage_with_container_images.py
@@ -0,0 +1,76 @@
+from pytest import mark
+
+from config.configuration_manager import ConfigurationManager
+from framework.logging.automation_logger import get_logger
+from framework.validation.validation import validate_equals
+from keywords.cloud_platform.dcmanager.dcmanager_prestage_strategy_keywords import DcmanagerPrestageStrategyKeywords
+from keywords.cloud_platform.dcmanager.dcmanager_strategy_step_keywords import DcmanagerStrategyStepKeywords
+from keywords.cloud_platform.dcmanager.dcmanager_subcloud_list_keywords import DcManagerSubcloudListKeywords
+from keywords.cloud_platform.dcmanager.dcmanager_subcloud_prestage import DcmanagerSubcloudPrestage
+from keywords.cloud_platform.dcmanager.dcmanager_subcloud_show_keywords import DcManagerSubcloudShowKeywords
+from keywords.cloud_platform.dcmanager.dcmanager_sw_deploy_strategy_keywords import DcmanagerSwDeployStrategy
+from keywords.cloud_platform.health.health_keywords import HealthKeywords
+from keywords.cloud_platform.ssh.lab_connection_keywords import LabConnectionKeywords
+from keywords.cloud_platform.upgrade.software_list_keywords import SoftwareListKeywords
+from keywords.files.file_keywords import FileKeywords
+
+
+@mark.p0
+@mark.lab_has_subcloud
+def test_subcloud_prestage_with_images():
+    """Test the prestage of a subcloud."""
+    # Gets the SSH connection to the active controller of the central cloud.
+    central_ssh = LabConnectionKeywords().get_active_controller_ssh()
+
+    # Gets the lowest subcloud (the subcloud with the lowest id).
+    dcm_sc_list_kw = DcManagerSubcloudListKeywords(central_ssh)
+    lowest_subcloud = dcm_sc_list_kw.get_dcmanager_subcloud_list().get_lower_id_async_subcloud()
+    subcloud_name = lowest_subcloud.get_name()
+    subcloud_ssh = LabConnectionKeywords().get_subcloud_ssh(subcloud_name)
+
+    # Gets the lowest subcloud sysadmin password
+    lab_config = ConfigurationManager.get_lab_config().get_subcloud(subcloud_name)
+    syspass = lab_config.get_admin_credentials().get_password()
+    subcloud_sw_version = DcManagerSubcloudShowKeywords(central_ssh).get_dcmanager_subcloud_show(subcloud_name).get_dcmanager_subcloud_show_object().get_software_version()
+
+    sw_release = SoftwareListKeywords(central_ssh).get_software_list().get_release_name_by_state("deployed")
+    latest_deployed_release = max(sw_release)
+
+    # Attempt sw-deploy-strategy and prestage-strategy delete to prevent sw-deploy-strategy create failure.
+    DcmanagerSwDeployStrategy(central_ssh).dcmanager_sw_deploy_strategy_delete()
+    DcmanagerPrestageStrategyKeywords(central_ssh).get_dcmanager_prestage_strategy_delete()
+
+    remote_registry_path = f"/opt/platform-backup/{subcloud_sw_version}"
+
+    # Create prestage strategy for subcloud
+    DcmanagerPrestageStrategyKeywords(central_ssh).get_dcmanager_prestage_strategy_create(sw_deploy=False, subcloud_name=subcloud_name)
+
+    # Apply strategy to subcloud
+    DcmanagerPrestageStrategyKeywords(central_ssh).get_dcmanager_prestage_strategy_apply()
+
+    get_logger().log_info("Checking if local registry file is created...")
+    FileKeywords(subcloud_ssh).file_exists(f"{remote_registry_path}/local_registry_filesystem.tgz")
+
+    # Remove prestage strategy
+    DcmanagerPrestageStrategyKeywords(central_ssh).get_dcmanager_prestage_strategy_delete()
+
+    # Prestage the subcloud with the latest software deployed in the controller
+    get_logger().log_info(f"Prestage {subcloud_name} with {sw_release}.")
+    DcmanagerSubcloudPrestage(central_ssh).dcmanager_subcloud_prestage(subcloud_name=subcloud_name, syspass=syspass, for_sw_deploy=True)
+
+    # Create software deploy strategy
+    get_logger().log_info(f"Create sw-deploy strategy for {subcloud_name}.")
+    DcmanagerSwDeployStrategy(central_ssh).dcmanager_sw_deploy_strategy_create(subcloud_name=subcloud_name, sw_version=latest_deployed_release, with_delete=True)
+
+    # Apply the previously created strategy
+    get_logger().log_info(f"Apply strategy for {subcloud_name}.")
+    DcmanagerSwDeployStrategy(central_ssh).dcmanager_sw_deploy_strategy_apply(subcloud_name=subcloud_name)
+
+    strategy_status = DcmanagerStrategyStepKeywords(central_ssh).get_dcmanager_strategy_step_show(subcloud_name).get_dcmanager_strategy_step_show().get_state()
+
+    # Verify that the strategy was applied correctly
+    validate_equals(strategy_status, "complete", f"Software deploy completed successfully for subcloud {subcloud_name}.")
+
+    # validate Healthy status
+    subcloud_ssh = LabConnectionKeywords().get_subcloud_ssh(subcloud_name)
+    HealthKeywords(subcloud_ssh).validate_healty_cluster()