diff --git a/api/v1alpha1/pattern_types.go b/api/v1alpha1/pattern_types.go
index ac36d0f46..d752829f8 100644
--- a/api/v1alpha1/pattern_types.go
+++ b/api/v1alpha1/pattern_types.go
@@ -100,6 +100,10 @@ type GitConfig struct {
 	// +operator-sdk:csv:customresourcedefinitions:type=spec,order=16
 	TargetRevision string `json:"targetRevision,omitempty"`
 
+	// Path within git repo where values files are located. Default: repository root
+	// +operator-sdk:csv:customresourcedefinitions:type=spec,order=17
+	TargetPath string `json:"targetPath,omitempty"`
+
 	// Upstream git repo containing the pattern to deploy. Used when in-cluster fork to point to the upstream pattern repository.
 	// Takes precedence over TargetRepo
 	// +operator-sdk:csv:customresourcedefinitions:type=spec,order=14,xDescriptors={"urn:alm:descriptor:com.tectonic.ui:fieldDependency:gitSpec.inClusterGitServer:true"}
diff --git a/bundle/manifests/gitops.hybrid-cloud-patterns.io_patterns.yaml b/bundle/manifests/gitops.hybrid-cloud-patterns.io_patterns.yaml
index ac2ed3325..7a570d7ca 100644
--- a/bundle/manifests/gitops.hybrid-cloud-patterns.io_patterns.yaml
+++ b/bundle/manifests/gitops.hybrid-cloud-patterns.io_patterns.yaml
@@ -1,9 +1,9 @@
+---
 apiVersion: apiextensions.k8s.io/v1
 kind: CustomResourceDefinition
 metadata:
   annotations:
     controller-gen.kubebuilder.io/version: v0.16.4
-  creationTimestamp: null
   name: patterns.gitops.hybrid-cloud-patterns.io
 spec:
   group: gitops.hybrid-cloud-patterns.io
@@ -107,6 +107,10 @@ spec:
                     description: (DEPRECATED) Branch, tag or commit in the upstream
                       git repository. Does not support short-sha's. Default to HEAD
                     type: string
+                  targetPath:
+                    description: 'Path within git repo where values files are located.
+                      Default: repository root'
+                    type: string
                   targetRepo:
                     description: Git repo containing the pattern to deploy. Must use
                       https/http or, for ssh, git@server:foo/bar.git
@@ -241,9 +245,3 @@ spec:
     storage: true
     subresources:
       status: {}
-status:
-  acceptedNames:
-    kind: ""
-    plural: ""
-  conditions: null
-  storedVersions: null
diff --git a/config/crd/bases/gitops.hybrid-cloud-patterns.io_patterns.yaml b/config/crd/bases/gitops.hybrid-cloud-patterns.io_patterns.yaml
index 2af229e86..7a570d7ca 100644
--- a/config/crd/bases/gitops.hybrid-cloud-patterns.io_patterns.yaml
+++ b/config/crd/bases/gitops.hybrid-cloud-patterns.io_patterns.yaml
@@ -107,6 +107,10 @@ spec:
                     description: (DEPRECATED) Branch, tag or commit in the upstream
                       git repository. Does not support short-sha's. Default to HEAD
                     type: string
+                  targetPath:
+                    description: 'Path within git repo where values files are located.
+                      Default: repository root'
+                    type: string
                   targetRepo:
                     description: Git repo containing the pattern to deploy. Must use
                       https/http or, for ssh, git@server:foo/bar.git
diff --git a/internal/controller/argo.go b/internal/controller/argo.go
index a25fa0e20..9dfb7ad98 100644
--- a/internal/controller/argo.go
+++ b/internal/controller/argo.go
@@ -369,6 +369,10 @@ func newApplicationParameters(p *api.Pattern) []argoapi.HelmParameter {
 			Name:  "global.targetRevision",
 			Value: p.Spec.GitConfig.TargetRevision,
 		},
+		{
+			Name:  "global.targetPath",
+			Value: p.Spec.GitConfig.TargetPath,
+		},
 		{
 			Name:  "global.hubClusterDomain",
 			Value: p.Status.AppClusterDomain,
@@ -457,6 +461,14 @@ func convertArgoHelmParametersToMap(params []argoapi.HelmParameter) map[string]a
 }
 
 func newApplicationValueFiles(p *api.Pattern, prefix string) []string {
+	basePath := p.Spec.GitConfig.TargetPath
+	if basePath != "" {
+		if prefix != "" {
+			prefix = fmt.Sprintf("%s/%s", prefix, basePath)
+		} else {
+			prefix = basePath
+		}
+	}
 	files := []string{
 		fmt.Sprintf("%s/values-global.yaml", prefix),
 		fmt.Sprintf("%s/values-%s.yaml", prefix, p.Spec.ClusterGroupName),
@@ -668,6 +680,7 @@ func newMultiSourceApplication(p *api.Pattern) *argoapi.Application {
 	valuesSource := &argoapi.ApplicationSource{
 		RepoURL:        p.Spec.GitConfig.TargetRepo,
 		TargetRevision: p.Spec.GitConfig.TargetRevision,
+		Path:           p.Spec.GitConfig.TargetPath,
 		Ref:            "patternref",
 	}
 	sources = append(sources, *valuesSource)
diff --git a/internal/controller/argo_test.go b/internal/controller/argo_test.go
index ff5a6089e..3d11645b3 100644
--- a/internal/controller/argo_test.go
+++ b/internal/controller/argo_test.go
@@ -187,6 +187,34 @@ var _ = Describe("Argo Pattern", func() {
 				Expect(newMultiSourceApplication(pattern)).To(Equal(multiSourceArgoApp))
 			})
 		})
+		Context("multiSource with targetPath set", func() {
+			It("Returns an argo application with path in values source", func() {
+				format.MaxDepth = 100
+				format.MaxLength = 0
+				pattern.Spec.GitConfig.TargetPath = "envs/dev"
+				tmpTrue := true
+				pattern.Spec.MultiSourceConfig.Enabled = &tmpTrue
+				multiSourceArgoApp = argoApp.DeepCopy()
+				multiSourceArgoApp.Spec.Source = nil
+				multiSourceArgoApp.Spec.Sources = []argoapi.ApplicationSource{
+					{
+						RepoURL:        pattern.Spec.GitConfig.TargetRepo,
+						TargetRevision: pattern.Spec.GitConfig.TargetRevision,
+						Path:           "envs/dev",
+						Ref:            "patternref",
+					},
+					{
+						RepoURL:        pattern.Spec.MultiSourceConfig.HelmRepoUrl,
+						Chart:          "clustergroup",
+						Path:           "",
+						TargetRevision: pattern.Spec.MultiSourceConfig.ClusterGroupChartVersion,
+						Helm:           commonApplicationSourceHelm(pattern, "$patternref"),
+					},
+				}
+				Expect(newMultiSourceApplication(pattern)).To(Equal(multiSourceArgoApp))
+				pattern.Spec.GitConfig.TargetPath = ""
+			})
+		})
 	})
 
 	Describe("Testing newApplicationValueFiles function", func() {
@@ -242,6 +270,23 @@ var _ = Describe("Argo Pattern", func() {
 					"myprefix/test2.yaml")))
 			})
 		})
+
+		Context("With targetPath set", func() {
+			BeforeEach(func() {
+				pattern.Spec.GitConfig.TargetPath = "envs/dev"
+			})
+			AfterEach(func() {
+				pattern.Spec.GitConfig.TargetPath = ""
+			})
+			It("Returns values with targetPath prefix", func() {
+				valueFiles := newApplicationValueFiles(pattern, "")
+				Expect(valueFiles).To(Equal(prefixArray(defaultValueFiles, "envs/dev")))
+			})
+			It("Returns values with combined prefix and targetPath", func() {
+				valueFiles := newApplicationValueFiles(pattern, "$patternref")
+				Expect(valueFiles).To(Equal(prefixArray(defaultValueFiles, "$patternref/envs/dev")))
+			})
+		})
 	})
 
 	Describe("Argo Helm Functions", func() {
@@ -367,6 +412,10 @@ var _ = Describe("Argo Pattern", func() {
 						Value:       "main",
 						ForceString: false,
 					},
+					{
+						Name:  "global.targetPath",
+						Value: "",
+					},
 					{
 						Name:        "global.hubClusterDomain",
 						Value:       "apps.hub-cluster.validatedpatterns.io",