diff --git a/modules/proxy_containerized/main.tf b/modules/proxy_containerized/main.tf
index 61074a592..200a787fc 100644
--- a/modules/proxy_containerized/main.tf
+++ b/modules/proxy_containerized/main.tf
@@ -23,7 +23,7 @@ module "proxy_containerized" {
   base_configuration            = var.base_configuration
   image                         = var.image == "default" || local.product_version == "head" ? var.images[local.product_version] : var.image
   name                          = var.name
-  use_os_released_updates       = true
+  use_os_released_updates       = var.use_os_released_updates
   install_salt_bundle           = var.install_salt_bundle
   ssh_key_path                  = var.ssh_key_path
   additional_repos              = var.additional_repos
diff --git a/modules/proxy_containerized/variables.tf b/modules/proxy_containerized/variables.tf
index 34affdecf..8d74ae5d1 100644
--- a/modules/proxy_containerized/variables.tf
+++ b/modules/proxy_containerized/variables.tf
@@ -134,3 +134,8 @@ variable "additional_grains" {
   description = "custom grain string to be added to this minion's configuration"
   default     = {}
 }
+
+variable "use_os_released_updates" {
+  description = "Apply all updates from SUSE Linux Enterprise repos"
+  default     = true
+}
\ No newline at end of file
diff --git a/salt/scc/proxy.sls b/salt/scc/proxy.sls
index f523f1614..6bd57bfd8 100644
--- a/salt/scc/proxy.sls
+++ b/salt/scc/proxy.sls
@@ -1,6 +1,6 @@
-{% if 'proxy' in grains.get('roles') and not 'proxy_containerized' in grains.get('roles') and grains.get('proxy_registration_code') %}
+{% if 'proxy' in grains.get('roles') and grains.get('proxy_registration_code') %}
 
-{% if '4.3' in grains['product_version'] %}
+{% if '4.3' in grains['product_version'] and not 'proxy_containerized' in grains.get('roles') %}
 register_suse_manager_proxy_with_scc:
    cmd.run:
      - name: SUSEConnect --url https://scc.suse.com -r {{ grains.get("proxy_registration_code") }} -p SUSE-Manager-Proxy/4.3/x86_64