diff --git a/linux/guest_customization/linux_gosc_verify.yml b/linux/guest_customization/linux_gosc_verify.yml
index a5ae2e321..c69a525e9 100644
--- a/linux/guest_customization/linux_gosc_verify.yml
+++ b/linux/guest_customization/linux_gosc_verify.yml
@@ -111,6 +111,22 @@
     - gosc_failed_items | length > 0
     - vcenter_version is version('6.5.0', '==')
 
+- name: "cloud-init GOSC in OracleLinux 8.7 & 9.1 with original UEK will fail due to known issue"
+  block:
+    - name: "Known issue - ignore failure of cloud-init GOSC in Oracle Linux 8.7 and 9.1"
+      ansible.builtin.debug:
+        msg:
+          - "There is a cloud-init issue on Oracle Linux 8.7 and 9.1 when uninstall cloud-init."
+          - "Files and directories under /etc/cloud/ are not removed after uninstall cloud-init."
+          - "The issue has been resolved in newer UEK R7 5.15.0-8.91.4.1 release. Please install the latest cloud-init 22.1-6 for resolution."
+          - "Please refer to https://bugzilla.oracle.com/bugzilla/show_bug.cgi?id=18115"
+      tags:
+        - known_issue
+  when:
+    - guest_os_ansible_distribution == "OracleLinux"
+    - guest_os_ansible_distribution_ver in ['8.7', '9.1']
+    - guest_os_ansible_kernel in ['5.15.0-3.60.5.1.el9uek.x86_64', '5.15.0-3.60.5.1.el8uek.x86_64']
+
 - name: "GOS customization failed"
   ansible.builtin.fail:
     msg: "{{ gosc_validation_errors | dict2items | selectattr('key', 'in', gosc_failed_items) | map(attribute='value') | flatten }}"
diff --git a/linux/guest_customization/linux_gosc_workflow.yml b/linux/guest_customization/linux_gosc_workflow.yml
index 7ffb6e507..efec8929b 100644
--- a/linux/guest_customization/linux_gosc_workflow.yml
+++ b/linux/guest_customization/linux_gosc_workflow.yml
@@ -82,6 +82,31 @@
             package_state: "present"
           when: guest_os_ansible_distribution != "VMware Photon OS"
 
+        # Need to install the latest cloud-init to Oracle Linux 8.7, 9.1 and pass the GOSC tests in Ansible
+        - name: "Install latest 'cloud-init' for cloud-init GOSC on {{ guest_os_ansible_distribution }}"
+          block:
+            - name: "Uninstall current cloud-init"
+              include_tasks: ../utils/install_uninstall_package.yml
+              vars:
+                package_list: ["cloud-init"]
+                package_state: "absent"
+
+            - name: "Remove /etc/cloud dir before install the latest cloud-init"
+              ansible.builtin.shell: |
+                if [ -e "/etc/cloud" ] ; then
+                  rm -rf "/etc/cloud";
+                fi
+              delegate_to: "{{ vm_guest_ip }}"
+
+            - name: "Install latest cloud-init version"
+              include_tasks: ../utils/install_uninstall_package.yml
+              vars:
+                package_list: ["cloud-init"]
+                package_state: "latest"
+          when:
+            - guest_os_ansible_distribution == "OracleLinux"
+            - guest_os_ansible_distribution_ver in ['8.7', '9.1']
+
         # Check whether cloud-init version meets cloud-init GOSC requirements
         # Debian 10 and 11 cloud-init GOSC requires cloud-init 22.1 or later installed.
         # See https://bugs.debian.org/cgi-bin/bugreport.cgi?bug=1008039