diff --git a/.github/workflows/pull-integration-cluster-k3d.yml b/.github/workflows/pull-integration-cluster-k3d.yml
index eae5c6fd1a..3bb328c41c 100644
--- a/.github/workflows/pull-integration-cluster-k3d.yml
+++ b/.github/workflows/pull-integration-cluster-k3d.yml
@@ -44,18 +44,12 @@ jobs:
         run: |
             set -e
             npm ci
-            npm run build
-            npm i -g serve
+            npm run start > busola.log &
       - name: run_tests
         shell: bash
         run: |
           k3d kubeconfig get k3dCluster > tests/integration/fixtures/kubeconfig.yaml
-          export CYPRESS_DOMAIN=http://localhost:3000
-          serve -s build > busola.log &
-
-          pushd backend
-          npm start > backend.log &
-          popd
+          export CYPRESS_DOMAIN=http://localhost:8080
           
           echo "waiting for server to be up..."
           while [[ "$(curl -s -o /dev/null -w ''%{http_code}'' "$CYPRESS_DOMAIN")" != "200" ]]; do sleep 5; done
@@ -76,6 +70,5 @@ jobs:
         with:
           name: busola-logs-${{ github.job }}
           path: |
-            backend/backend.log
             busola.log
           retention-days: 90
diff --git a/.github/workflows/pull-integration-namespace-k3d.yml b/.github/workflows/pull-integration-namespace-k3d.yml
index 1acd4901c4..073151997c 100644
--- a/.github/workflows/pull-integration-namespace-k3d.yml
+++ b/.github/workflows/pull-integration-namespace-k3d.yml
@@ -44,19 +44,13 @@ jobs:
         run: |
             set -e
             npm ci
-            npm run build
-            npm i -g serve
+            npm run start > busola.log &
       - name: run_tests
         shell: bash
         run: |
           k3d kubeconfig get k3dCluster > tests/integration/fixtures/kubeconfig.yaml
-          export CYPRESS_DOMAIN=http://localhost:3000
-          serve -s build > busola.log &
+          export CYPRESS_DOMAIN=http://localhost:8080
 
-          pushd backend
-          npm start > backend.log &
-          popd
-          
           echo "waiting for server to be up..."
           while [[ "$(curl -s -o /dev/null -w ''%{http_code}'' "$CYPRESS_DOMAIN")" != "200" ]]; do sleep 5; done
           sleep 10
@@ -76,6 +70,5 @@ jobs:
         with:
           name: busola-logs-${{ github.job }}
           path: |
-            backend/backend.log
             busola.log
           retention-days: 90
diff --git a/.github/workflows/pull-lighthouse.yml b/.github/workflows/pull-lighthouse.yml
index 011d3dc150..7095573eaf 100644
--- a/.github/workflows/pull-lighthouse.yml
+++ b/.github/workflows/pull-lighthouse.yml
@@ -37,18 +37,12 @@ jobs:
         run: |
             set -e
             npm ci
-            npm run build
-            npm i -g serve
+            npm run start > busola.log &
       - name: run_tests
         shell: bash
         run: |
           k3d kubeconfig get k3dCluster > tests/lighthouse/fixtures/kubeconfig.yaml
-          export DOMAIN=http://localhost:3000
-          serve -s build > busola.log &
-
-          pushd backend
-          npm start > backend.log &
-          popd
+          export DOMAIN=http://localhost:8080
           
           echo "waiting for server to be up..."
           while [[ "$(curl -s -o /dev/null -w ''%{http_code}'' "$DOMAIN")" != "200" ]]; do sleep 5; done
@@ -62,6 +56,5 @@ jobs:
         with:
           name: busola-logs-${{ github.job }}
           path: |
-            backend/backend.log
             busola.log
           retention-days: 90
diff --git a/Makefile b/Makefile
index bb245f942f..a9dedf5b27 100644
--- a/Makefile
+++ b/Makefile
@@ -1,9 +1,9 @@
-IMG_NAME = busola-web
-LOCAL_IMG_NAME = busola
-IMG = $(DOCKER_PUSH_REPOSITORY)$(DOCKER_PUSH_DIRECTORY)/$(IMG_NAME)
-LOCAL_IMG = $(DOCKER_PUSH_REPOSITORY)$(DOCKER_PUSH_DIRECTORY)/$(LOCAL_IMG_NAME)
-KYMA_DASHBOARD_IMG = $(DOCKER_PUSH_REPOSITORY)$(DOCKER_PUSH_DIRECTORY)/$(KYMA_DASHBOARD_IMG_NAME)
-TAG = $(DOCKER_TAG)
+APP_NAME = busola
+.DEFAULT_GOAL=help
+
+help: ## Display this help.
+	@awk 'BEGIN {FS = ":.*##"; printf "\nUsage:\n  make \033[36m<target>\033[0m\n"} /^[a-zA-Z_0-9-]+:.*?##/ { printf "  \033[36m%-15s\033[0m %s\n", $$1, $$2 } /^##@/ { printf "\n\033[1m%s\033[0m\n", substr($$0, 5) } ' $(MAKEFILE_LIST)
+
 
 .PHONY: resolve
 resolve:
@@ -21,30 +21,12 @@ release: build-image push-image
 
 release-local: build-image-local push-image-local
 
-build-image:
-	docker build -t $(IMG_NAME) -f Dockerfile .
-
-build-image-local:
-	docker build -t $(LOCAL_IMG_NAME) -f Dockerfile.local .
-
-push-image:
-	docker tag $(IMG_NAME) $(IMG):$(TAG)
-	docker push $(IMG):$(TAG)
-ifeq ($(JOB_TYPE), postsubmit)
-	@echo "Sign image with Cosign"
-	cosign version
-	cosign sign -key ${KMS_KEY_URL} $(REPO)$(IMG):$(TAG)
-else
-	@echo "Image signing skipped"
-endif
-
-push-image-local:
-	docker tag $(LOCAL_IMG_NAME) $(LOCAL_IMG):$(TAG)
-	docker push $(LOCAL_IMG):$(TAG)
-ifeq ($(JOB_TYPE), postsubmit)
-	@echo "Tag image with latest"
-	docker tag $(LOCAL_IMG_NAME) $(LOCAL_IMG):latest
-	docker push $(LOCAL_IMG):latest
-else
-	@echo "Image tagging with latest skipped"
-endif
+build-image: ## Build busola backend image
+	docker build -t $(APP_NAME) -f Dockerfile .
+
+install-busola-k3d: build-image ## Build busola web image and install it on local k3d cluster
+	$(eval HASH_TAG=$(shell docker images $(APP_NAME):latest --quiet))
+	docker tag $(APP_NAME) $(APP_NAME):$(HASH_TAG)
+
+	k3d image import $(APP_NAME):$(HASH_TAG) -c kyma
+	kubectl set image deployment busola busola=$(APP_NAME):$(HASH_TAG)
diff --git a/README.md b/README.md
index cd398ab3de..7e1a6e5259 100644
--- a/README.md
+++ b/README.md
@@ -165,7 +165,7 @@ For the information on how to run tests and configure them, go to the [`tests`](
    docker run --rm -it -p 3001:3001 -v <path to your kubeconfig>:/app/core-ui/kubeconfig/<your kubeconfig file name> --pid=host --name busola europe-docker.pkg.dev/kyma-project/prod/busola:latest
    ```
 
-2. When you open Busola in your browser, go to `http://localhost:3001?kubeconfigID={YOUR_KUBECONFIG_FILE_NAME}`. Busola will try to download that file and add it for your Busola instance.
+2. When you open Busola in your browser, visit `http://localhost:3001?kubeconfigID={YOUR_KUBECONFIG_FILE_NAME}`. Busola will try to download that file and add it for your Busola instance.
 
 ### Set active environment
 
@@ -178,6 +178,84 @@ For the information on how to run tests and configure them, go to the [`tests`](
    docker run --rm -it -p 3001:3001 -v <path to your custom config>:/app/core-ui/environments/ --env ENVIRONMENT={your-env} --pid=host --name busola europe-docker.pkg.dev/kyma-project/prod/busola:latest
    ```
 
+## Deploy Busola in the Kubernetes Cluster
+
+To install Busola in the Kubernetes cluster, run:
+
+```shell
+(cd resources && kustomize build base/ | kubectl apply -f- )
+```
+
+To install Busola using a specific environment configuration, set the `ENVIRONMENT` shell environment variable and run:
+
+```shell
+(cd resources && kustomize build environments/${ENVIRONMENT} | kubectl apply -f- )
+```
+
+## Access Busola Installed on Kubernetes
+
+### kubectl
+
+The simplest method that always works is to use the capabilities of kubectl.
+
+```shell
+kubectl port-forward services/busola 3001:3001
+```
+
+### k3d
+
+Prerequisites:
+
+- K3d with exposed loadbalancer on port 80.
+  > **TIP:** To create K3d with exposed load balancer run: `k3d cluster create -p "80:80@loadbalancer"`.
+  > See [Exposing Services](https://k3d.io/v5.6.3/usage/exposing_services/) for more details.
+
+1. Install Ingress resources:
+
+```shell
+(cd resources && kubectl apply -f ingress/ingress.yaml)
+```
+
+2. Visit `localhost`
+
+#### Connect to the k3d Cluster With Busola Installed.
+
+To connect to the same k3d cluster with Busola installed, download kubeconfig and change the cluster server address to `https://kubernetes.default.svc:443`.
+
+Use shell to quickly process the file.
+
+Prerequisites:
+
+- [yq](https://mikefarah.gitbook.io/yq)
+
+Set the `K3D_CLUSTER_NAME` shell environment variable to the name of your cluster and run:
+
+```shell
+k3d kubeconfig get ${K3D_CLUSTER_NAME} > k3d-kubeconfig.yaml
+yq --inplace '.clusters[].cluster.server = "https://kubernetes.default.svc:443"' k3d-kubeconfig.yaml
+```
+
+### Kubernetes Cluster with Istio Installed
+
+Prerequisites:
+
+- Sidecar Proxy injection enabled, see [Enable Istio Sidecar Proxy Injection](https://kyma-project.io/#/istio/user/tutorials/01-40-enable-sidecar-injection?id=enable-istio-sidecar-proxy-injection).
+- The API Gateway module installed, see [Quick Install](https://kyma-project.io/#/02-get-started/01-quick-install)
+
+1. Install the Istio required resources:
+
+```shell
+(cd resources && kubectl apply -k istio)
+```
+
+2. To get the Busola address, run:
+
+```shell
+kubectl get virtualservices.networking.istio.io
+```
+
+and find the `busola-***` virtual service. Under `HOSTS,` there is an address where you can access the Busola page.
+
 ## Troubleshooting
 
 > **TIP:** To solve most of the problems with Busola development, clear the browser cache or do a hard refresh of the website.
diff --git a/backend/Makefile b/backend/Makefile
index fe9ee86c7f..28e836f2e5 100644
--- a/backend/Makefile
+++ b/backend/Makefile
@@ -1,12 +1,6 @@
-APP_NAME = busola-backend
-IMG_NAME := $(DOCKER_PUSH_REPOSITORY)$(DOCKER_PUSH_DIRECTORY)/$(APP_NAME)
-TAG := $(DOCKER_TAG)
-
-
-build-image:
-	docker build -t $(APP_NAME) -f Dockerfile .
-push-image:
-	docker tag $(APP_NAME):latest $(IMG_NAME):$(TAG)
-	docker push $(IMG_NAME):$(TAG)
-
-release: build-image push-image 
+##@ General
+.DEFAULT_GOAL=help
+.PHONY: help
+.PHONY: help
+help: ## Display this help.
+	@awk 'BEGIN {FS = ":.*##"; printf "\nUsage:\n  make \033[36m<target>\033[0m\n"} /^[a-zA-Z_0-9-]+:.*?##/ { printf "  \033[36m%-15s\033[0m %s\n", $$1, $$2 } /^##@/ { printf "\n\033[1m%s\033[0m\n", substr($$0, 5) } ' $(MAKEFILE_LIST)
diff --git a/busola.log b/busola.log
new file mode 100644
index 0000000000..dbb509fe37
--- /dev/null
+++ b/busola.log
@@ -0,0 +1,53 @@
+
+> @kyma-project/busola@0.0.1-rc.8 start
+> concurrently -c cyan,green npm:busola npm:backend
+
+[busola] 
+[busola] > @kyma-project/busola@0.0.1-rc.8 busola
+[busola] > npm run copy-themes; BROWSER=none GENERATE_SOURCEMAP=false vite
+[busola] 
+[backend] 
+[backend] > @kyma-project/busola@0.0.1-rc.8 backend
+[backend] > cd backend && npm run start
+[backend] 
+[busola] 
+[busola] > @kyma-project/busola@0.0.1-rc.8 copy-themes
+[busola] > cp node_modules/@sap-theming/theming-base-content/content/Base/baseLib/sap_horizon/css_variables.css public/themes/@sap-theming/default.css; for theme in hcb dark hcw ; do cp node_modules/@sap-theming/theming-base-content/content/Base/baseLib/sap_horizon_$theme/css_variables.css public/themes/@sap-theming/$theme.css ; done
+[busola] 
+[backend] 
+[backend] > backend@1.0.0 start
+[backend] > SSL_CERT_FILE=certs.pem NODE_ENV=development nodemon --exec babel-node index.js
+[backend] 
+[backend] [nodemon] 2.0.22
+[backend] [nodemon] to restart at any time, enter `rs`
+[backend] [nodemon] watching path(s): *.*
+[backend] [nodemon] watching extensions: js,mjs,json
+[backend] [nodemon] starting `babel-node index.js`
+[busola] Forced re-optimization of dependencies
+[busola] [vite-plugin-static-copy] Collected 1 items.
+[busola] 
+[busola]   VITE v5.4.3  ready in 1274 ms
+[busola] 
+[busola]   ➜  Local:   http://localhost:8080/
+[busola]   ➜  Network: use --host to expose
+[backend] node:events:496
+[backend]       throw er; // Unhandled 'error' event
+[backend]       ^
+[backend] 
+[backend] Error: listen EADDRINUSE: address already in use 0.0.0.0:3001
+[backend]     at Server.setupListenHandle [as _listen2] (node:net:1897:16)
+[backend]     at listenInCluster (node:net:1945:12)
+[backend]     at doListen (node:net:2109:7)
+[backend]     at processTicksAndRejections (node:internal/process/task_queues:83:21)
+[backend] Emitted 'error' event on Server instance at:
+[backend]     at emitErrorNT (node:net:1924:8)
+[backend]     at processTicksAndRejections (node:internal/process/task_queues:82:21) {
+[backend]   code: 'EADDRINUSE',
+[backend]   errno: -98,
+[backend]   syscall: 'listen',
+[backend]   address: '0.0.0.0',
+[backend]   port: 3001
+[backend] }
+[backend] 
+[backend] Node.js v20.12.1
+[backend] [nodemon] app crashed - waiting for file changes before starting...
diff --git a/examples/custom-extension/script.js b/examples/custom-extension/script.js
index bc3c6bd601..841aeacbc8 100644
--- a/examples/custom-extension/script.js
+++ b/examples/custom-extension/script.js
@@ -6,9 +6,7 @@ function fetchWrapper(url, options = {}) {
 }
 
 function proxyFetch(url, options = {}) {
-  const baseUrl = window.location.hostname.startsWith('localhost')
-    ? 'http://localhost:3001/proxy'
-    : '/proxy';
+  const baseUrl = '/proxy';
   const encodedUrl = encodeURIComponent(url);
   const proxyUrl = `${baseUrl}?url=${encodedUrl}`;
   return fetch(proxyUrl, options);
diff --git a/resources/base/resource-validation/rule-sets/datree/rules.yaml b/resource-validation/rule-sets/datree/rules.yaml
similarity index 100%
rename from resources/base/resource-validation/rule-sets/datree/rules.yaml
rename to resource-validation/rule-sets/datree/rules.yaml
diff --git a/resources/base/resource-validation/rule-sets/default/policies.yaml b/resource-validation/rule-sets/default/policies.yaml
similarity index 100%
rename from resources/base/resource-validation/rule-sets/default/policies.yaml
rename to resource-validation/rule-sets/default/policies.yaml
diff --git a/resources/base/resource-validation/rule-sets/kubernetes-pod-security-standards/policies.yaml b/resource-validation/rule-sets/kubernetes-pod-security-standards/policies.yaml
similarity index 100%
rename from resources/base/resource-validation/rule-sets/kubernetes-pod-security-standards/policies.yaml
rename to resource-validation/rule-sets/kubernetes-pod-security-standards/policies.yaml
diff --git a/resources/base/resource-validation/rule-sets/kubernetes-pod-security-standards/rules.yaml b/resource-validation/rule-sets/kubernetes-pod-security-standards/rules.yaml
similarity index 100%
rename from resources/base/resource-validation/rule-sets/kubernetes-pod-security-standards/rules.yaml
rename to resource-validation/rule-sets/kubernetes-pod-security-standards/rules.yaml
diff --git a/resources/base/resource-validation/rulesetSchema.json b/resource-validation/rulesetSchema.json
similarity index 100%
rename from resources/base/resource-validation/rulesetSchema.json
rename to resource-validation/rulesetSchema.json
diff --git a/resources/apply-resources-istio.sh b/resources/apply-resources-istio.sh
deleted file mode 100755
index f1c10eade5..0000000000
--- a/resources/apply-resources-istio.sh
+++ /dev/null
@@ -1,18 +0,0 @@
-#!/bin/bash
-set -e
-
-if [ -z "$1" ] ; then
-    echo "No domain passed as first argument, aborting." 
-    exit 1
-fi
-
-export DOMAIN=$1
-export NAMESPACE=${2:-busola}
-export ENVIRONMENT=$3
-TMP_DIR="../temp/resources"
-
-./apply-resources.sh "$@"
-
-envsubst < "${TMP_DIR}"/istio/virtualservice-busola.tpl.yaml > "${TMP_DIR}"/istio/virtualservice-busola.yaml
-
-kubectl apply -k "${TMP_DIR}"/istio --namespace=$NAMESPACE
diff --git a/resources/apply-resources.sh b/resources/apply-resources.sh
deleted file mode 100755
index 14739fa646..0000000000
--- a/resources/apply-resources.sh
+++ /dev/null
@@ -1,22 +0,0 @@
-#!/bin/bash
-set -e
-
-if [ -z "$1" ] ; then
-    echo "No domain passed as first argument, aborting." 
-    exit 1
-fi
-
-export DOMAIN=$1
-NAMESPACE=${2:-busola}
-export ENVIRONMENT=$3
-TMP_DIR="../temp/resources"
-
-
-mkdir -p "${TMP_DIR}"
-cp -rf . "${TMP_DIR}"
-
-kubectl create namespace "${NAMESPACE}" || true
-kubectl apply -k "${TMP_DIR}/environments/${ENVIRONMENT}" --namespace="${NAMESPACE}"
-
-envsubst < "${TMP_DIR}"/ingress/ingress.tpl.yaml > "${TMP_DIR}"/ingress/ingress.yaml
-kubectl apply -k "${TMP_DIR}"/ingress --namespace=$NAMESPACE
diff --git a/resources/base/backend/deployment.yaml b/resources/base/backend/deployment.yaml
deleted file mode 100644
index a017c42574..0000000000
--- a/resources/base/backend/deployment.yaml
+++ /dev/null
@@ -1,53 +0,0 @@
-apiVersion: apps/v1
-kind: Deployment
-metadata:
-  name: backend
-  labels:
-    app: backend
-spec:
-  replicas: 1
-  selector:
-    matchLabels:
-      app: backend
-  strategy:
-    type: RollingUpdate
-    rollingUpdate:
-      maxUnavailable: 0
-  template:
-    metadata:
-      labels:
-        app: backend
-    spec:
-      containers:
-        - name: backend
-          image: busola-backend
-          imagePullPolicy: Always
-          resources:
-            limits:
-              cpu: 1
-              memory: 1Gi
-            requests:
-              cpu: 200m
-              memory: 128M
-          securityContext:
-            allowPrivilegeEscalation: false
-            privileged: false
-          ports:
-            - containerPort: 3001
-              name: http-backend
-              protocol: TCP
-          terminationMessagePath: /dev/termination-log
-          terminationMessagePolicy: File
-          env:
-            - name: ADDRESS
-              value: 0.0.0.0
-          volumeMounts:
-            - name: config
-              mountPath: /app/config
-      volumes:
-        - name: config
-          configMap:
-            name: busola-config
-            items:
-              - key: config
-                path: config.yaml
diff --git a/resources/base/backend/hpa.yaml b/resources/base/backend/hpa.yaml
deleted file mode 100644
index 6b010cd9e1..0000000000
--- a/resources/base/backend/hpa.yaml
+++ /dev/null
@@ -1,26 +0,0 @@
-apiVersion: autoscaling/v2
-kind: HorizontalPodAutoscaler
-metadata:
-  name: backend
-  labels:
-    app: busola
-spec:
-  scaleTargetRef:
-    apiVersion: apps/v1
-    kind: Deployment
-    name: backend
-  minReplicas: 1
-  maxReplicas: 11
-  metrics:
-    - type: Resource
-      resource:
-        name: cpu
-        target:
-          type: Utilization
-          averageUtilization: 125
-    - type: Resource
-      resource:
-        name: memory
-        target:
-          type: Utilization
-          averageUtilization: 125
diff --git a/resources/base/backend/service.yaml b/resources/base/backend/service.yaml
deleted file mode 100644
index 41b9205d85..0000000000
--- a/resources/base/backend/service.yaml
+++ /dev/null
@@ -1,14 +0,0 @@
-apiVersion: v1
-kind: Service
-metadata:
-  name: backend
-  labels:
-    app: backend
-spec:
-  ports:
-    - port: 3001
-      targetPort: 3001
-      protocol: TCP
-      name: http
-  selector:
-    app: backend
diff --git a/resources/base/web/deployment.yaml b/resources/base/busola/deployment.yaml
similarity index 85%
rename from resources/base/web/deployment.yaml
rename to resources/base/busola/deployment.yaml
index a8a8b1eb5e..2450819668 100644
--- a/resources/base/web/deployment.yaml
+++ b/resources/base/busola/deployment.yaml
@@ -1,7 +1,7 @@
 apiVersion: apps/v1
 kind: Deployment
 metadata:
-  name: web
+  name: busola
   labels:
     app: busola
 spec:
@@ -16,8 +16,8 @@ spec:
     spec:
       containers:
         - name: busola
-          image: busola-web
-          imagePullPolicy: Always
+          image: busola
+          imagePullPolicy: IfNotPresent
           env:
             - name: ENVIRONMENT
               valueFrom:
@@ -25,18 +25,19 @@ spec:
                   optional: true
                   key: ENVIRONMENT
                   name: environment
+          volumeMounts:
+            - name: config
+              mountPath: /app/core-ui/config
           resources:
             requests:
               cpu: 100m
               memory: 21Mi
           ports:
-            - containerPort: 8080
-          volumeMounts:
-            - name: config
-              mountPath: /app/core-ui/config
+            - containerPort: 3001
       volumes:
         - name: config
           configMap:
+            optional: true
             name: busola-config
             items:
               - key: config
diff --git a/resources/base/web/hpa.yaml b/resources/base/busola/hpa.yaml
similarity index 93%
rename from resources/base/web/hpa.yaml
rename to resources/base/busola/hpa.yaml
index d65e500215..9fbdb37d2c 100644
--- a/resources/base/web/hpa.yaml
+++ b/resources/base/busola/hpa.yaml
@@ -1,14 +1,14 @@
 apiVersion: autoscaling/v2
 kind: HorizontalPodAutoscaler
 metadata:
-  name: web
+  name: busola
   labels:
     app: busola
 spec:
   scaleTargetRef:
     apiVersion: apps/v1
     kind: Deployment
-    name: web
+    name: busola
   minReplicas: 1
   maxReplicas: 11
   metrics:
diff --git a/resources/base/backend/kustomization.yaml b/resources/base/busola/kustomization.yaml
similarity index 100%
rename from resources/base/backend/kustomization.yaml
rename to resources/base/busola/kustomization.yaml
diff --git a/resources/base/web/service.yaml b/resources/base/busola/service.yaml
similarity index 57%
rename from resources/base/web/service.yaml
rename to resources/base/busola/service.yaml
index 95fcfd898e..0168f1c4a2 100644
--- a/resources/base/web/service.yaml
+++ b/resources/base/busola/service.yaml
@@ -1,13 +1,13 @@
 apiVersion: v1
 kind: Service
 metadata:
-  name: web
+  name: busola
   labels:
     app: busola
 spec:
   ports:
-    - port: 8080
-      name: http-web
-      targetPort: 8080
+    - port: 3001
+      name: http-busola
+      targetPort: 3001
   selector:
     app: busola
diff --git a/resources/base/extensions-patch/builtin-resource-extensions.configmap.yaml b/resources/base/extensions-patch/builtin-resource-extensions.configmap.yaml
deleted file mode 100644
index 7058c48da1..0000000000
--- a/resources/base/extensions-patch/builtin-resource-extensions.configmap.yaml
+++ /dev/null
@@ -1,9 +0,0 @@
-kind: ConfigMap
-apiVersion: v1
-metadata:
-  name: busola-builtin-resource-extensions
-  labels:
-    app.kubernetes.io/name: busola-builtin-resource-extensions
-    busola.io/extension: builtin-resources
-data:
-  extensions.yaml: []
diff --git a/resources/base/extensions-patch/kustomization.yaml b/resources/base/extensions-patch/kustomization.yaml
deleted file mode 100644
index 3a5d82821b..0000000000
--- a/resources/base/extensions-patch/kustomization.yaml
+++ /dev/null
@@ -1,14 +0,0 @@
-apiVersion: kustomize.config.k8s.io/v1beta1
-kind: Kustomization
-resources:
-  - builtin-resource-extensions.configmap.yaml
-patchesJson6902:
-  - target:
-      group: apps
-      version: v1
-      kind: Deployment
-      name: web
-    path: web-deployment.patch.yaml
-
-bases:
-  - ../web
diff --git a/resources/base/extensions-patch/web-deployment.patch.yaml b/resources/base/extensions-patch/web-deployment.patch.yaml
deleted file mode 100644
index e90f94506b..0000000000
--- a/resources/base/extensions-patch/web-deployment.patch.yaml
+++ /dev/null
@@ -1,14 +0,0 @@
-- op: add
-  path: /spec/template/spec/containers/0/volumeMounts/1
-  value:
-    name: extensions
-    mountPath: /app/core/assets/extensions
-- op: add
-  path: /spec/template/spec/volumes/1
-  value:
-    name: extensions
-    configMap:
-      name: busola-builtin-resource-extensions
-      items:
-        - key: extensions.yaml
-          path: extensions.yaml
diff --git a/resources/base/kustomization.yaml b/resources/base/kustomization.yaml
index 446976a60d..c325f63b5c 100644
--- a/resources/base/kustomization.yaml
+++ b/resources/base/kustomization.yaml
@@ -1,12 +1,8 @@
 apiVersion: kustomize.config.k8s.io/v1beta1
 kind: Kustomization
 resources:
-  - backend
-  - web
+  - busola
 images:
-  - name: busola-web
-    newName: europe-docker.pkg.dev/kyma-project/prod/busola-web
-    newTag: latest
-  - name: busola-backend
-    newName: europe-docker.pkg.dev/kyma-project/prod/busola-backend
+  - name: busola
+    newName: europe-docker.pkg.dev/kyma-project/prod/busola
     newTag: latest
diff --git a/resources/base/web/configmap.yaml b/resources/base/web/configmap.yaml
deleted file mode 100644
index 94677f8b59..0000000000
--- a/resources/base/web/configmap.yaml
+++ /dev/null
@@ -1,61 +0,0 @@
-kind: ConfigMap
-apiVersion: v1
-metadata:
-  name: busola-config
-data:
-  config: >
-    {
-      "config": {
-        "storage": "localStorage",
-        "features": {
-          "LEGAL_LINKS": {
-            "config": {
-              "legal-disclosure": {
-                "default": "https://www.sap.com/corporate/en/legal/impressum.html",
-                "de": "https://www.sap.com/corporate/de/legal/impressum.html"
-              },
-              "privacy": {
-                "default":
-                  "https://help.sap.com/viewer/82bdf2271c6041f79387c122147cf774/Cloud/en-US"
-              },
-              "copyright": {
-                "default": "https://www.sap.com/corporate/en/legal/copyright.html",
-                "de": "https://www.sap.com/corporate/de/legal/copyright.html"
-              },
-              "trademark": {
-                "default": "https://www.sap.com/corporate/en/legal/trademark.html",
-                "de": "https://www.sap.com/corporate/de/legal/trademark.html"
-              }
-            }
-          },
-          "GET_HELP_LINKS": {
-            "config": {
-              "kyma-project-io": {
-                "default": "https://kyma-project.io"
-              },
-              "help-sap-com": {
-                "default": "https://help.sap.com"
-              }
-            }
-          },
-          "SENTRY": {
-            "isEnabled": true,
-            "selectors": [],
-            "config": {
-              "dsn": ""
-            }
-          },
-          "KUBECONFIG_ID": {
-            "config": {
-              "kubeconfigUrl": "/kubeconfig"
-            }
-          },
-          "GZIP": {
-            "isEnabled": true
-          },
-          "VISUAL_RESOURCES": {
-            "isEnabled": true
-          }
-        }
-      }
-    }
diff --git a/resources/base/web/kustomization.yaml b/resources/base/web/kustomization.yaml
deleted file mode 100644
index 8c9f6e654b..0000000000
--- a/resources/base/web/kustomization.yaml
+++ /dev/null
@@ -1,7 +0,0 @@
-apiVersion: kustomize.config.k8s.io/v1beta1
-kind: Kustomization
-resources:
-  - configmap.yaml
-  - deployment.yaml
-  - hpa.yaml
-  - service.yaml
diff --git a/resources/ingress/ingress.tpl.yaml b/resources/ingress/ingress.tpl.yaml
deleted file mode 100644
index afda2cee0a..0000000000
--- a/resources/ingress/ingress.tpl.yaml
+++ /dev/null
@@ -1,29 +0,0 @@
-kind: Ingress
-apiVersion: networking.k8s.io/v1
-metadata:
-  name: ingress-busola
-  annotations:
-    nginx.ingress.kubernetes.io/rewrite-target: /$1
-    nginx.ingress.kubernetes.io/force-ssl-redirect: 'true'
-    nginx.ingress.kubernetes.io/server-snippet: 'server_tokens off;' # hide nginx version
-    nginx.ingress.kubernetes.io/enable-cors: 'false'
-spec:
-  ingressClassName: nginx
-  rules:
-    - host: $DOMAIN
-      http:
-        paths:
-          - backend:
-              service:
-                name: web
-                port:
-                  number: 8080
-            path: /(.*)
-            pathType: Prefix
-          - backend:
-              service:
-                name: backend
-                port:
-                  number: 3001
-            path: /backend(?:/|$)(.*)
-            pathType: Prefix
diff --git a/resources/ingress/ingress.yaml b/resources/ingress/ingress.yaml
new file mode 100644
index 0000000000..c3f74defff
--- /dev/null
+++ b/resources/ingress/ingress.yaml
@@ -0,0 +1,15 @@
+kind: Ingress
+apiVersion: networking.k8s.io/v1
+metadata:
+  name: busola
+spec:
+  rules:
+    - http:
+        paths:
+          - path: /
+            pathType: Prefix
+            backend:
+              service:
+                name: busola
+                port:
+                  number: 3001
diff --git a/resources/ingress/ingressClass.yaml b/resources/ingress/ingressClass.yaml
deleted file mode 100644
index a5feb7a495..0000000000
--- a/resources/ingress/ingressClass.yaml
+++ /dev/null
@@ -1,10 +0,0 @@
-apiVersion: networking.k8s.io/v1
-kind: IngressClass
-metadata:
-  labels:
-    app.kubernetes.io/component: controller
-  name: nginx
-  annotations:
-    ingressclass.kubernetes.io/is-default-class: 'true'
-spec:
-  controller: k8s.io/ingress-nginx
diff --git a/resources/istio/apirule.yaml b/resources/istio/apirule.yaml
new file mode 100644
index 0000000000..203e3a74d7
--- /dev/null
+++ b/resources/istio/apirule.yaml
@@ -0,0 +1,15 @@
+apiVersion: gateway.kyma-project.io/v2alpha1
+kind: APIRule
+metadata:
+  name: busola
+spec:
+  gateway: kyma-system/kyma-gateway
+  hosts:
+    - busola
+  service:
+    name: busola
+    port: 3001
+  rules:
+    - path: /{**}
+      methods: ['GET']
+      noAuth: true
diff --git a/resources/istio/destinationrule-busola-backend.yaml b/resources/istio/destinationrule-busola-backend.yaml
deleted file mode 100644
index 2314cf3e16..0000000000
--- a/resources/istio/destinationrule-busola-backend.yaml
+++ /dev/null
@@ -1,9 +0,0 @@
-apiVersion: networking.istio.io/v1alpha3
-kind: DestinationRule
-metadata:
-  name: backend
-spec:
-  host: backend
-  trafficPolicy:
-    tls:
-      mode: SIMPLE
diff --git a/resources/istio/kustomization.yaml b/resources/istio/kustomization.yaml
index ff3b2d8a2b..579346e571 100644
--- a/resources/istio/kustomization.yaml
+++ b/resources/istio/kustomization.yaml
@@ -1,8 +1,4 @@
 apiVersion: kustomize.config.k8s.io/v1beta1
 kind: Kustomization
 resources:
-  - virtualservice-busola.yaml
-  # Add the destinationrule for TLS into the backend pod.
-  # This will tell the istio sidecar to use TLS to connect to the backend service.
-  # For this to work, you need to enable TLS in the backend. See docs/install-kyma-dashboard-manually.md for more information.
-  # - destinationrule-busola-backend.yaml
+  - apirule.yaml
diff --git a/resources/istio/virtualservice-busola.tpl.yaml b/resources/istio/virtualservice-busola.tpl.yaml
deleted file mode 100644
index f771f2e728..0000000000
--- a/resources/istio/virtualservice-busola.tpl.yaml
+++ /dev/null
@@ -1,21 +0,0 @@
-apiVersion: networking.istio.io/v1alpha3
-kind: VirtualService
-metadata:
-  name: busola
-spec:
-  hosts:
-    - $DOMAIN
-  gateways:
-    - kyma-system/kyma-gateway
-  http:
-    - name: 'backend-route'
-      match:
-        - uri:
-            prefix: '/backend'
-      route:
-        - destination:
-            host: backend.$NAMESPACE.svc.cluster.local
-    - name: 'web-route'
-      route:
-        - destination:
-            host: web.$NAMESPACE.svc.cluster.local
diff --git a/src/components/Gardener/useGardenerLoginFunction.tsx b/src/components/Gardener/useGardenerLoginFunction.tsx
index e7a18cff84..5ba0bc7fe1 100644
--- a/src/components/Gardener/useGardenerLoginFunction.tsx
+++ b/src/components/Gardener/useGardenerLoginFunction.tsx
@@ -21,12 +21,12 @@ async function failFastFetch<T>(
 }
 
 export function useGardenerLogin(setReport: (report: string) => void) {
-  const { backendAddress } = getClusterConfig();
   const clustersInfo = useClustersInfo();
 
   const getAvailableProjects = async (
     fetchHeaders: HeadersInit,
   ): Promise<string[]> => {
+    const { backendAddress } = getClusterConfig();
     type SSRResult = {
       status: { resourceRules: PermissionSet[] };
     };
@@ -63,6 +63,8 @@ export function useGardenerLogin(setReport: (report: string) => void) {
     fetchHeaders: HeadersInit,
     availableProjects: string[],
   ) => {
+    const { backendAddress } = getClusterConfig();
+
     type ShootsResult = {
       items: K8sResource[];
     };
diff --git a/src/shared/hooks/BackendAPI/useFetch.ts b/src/shared/hooks/BackendAPI/useFetch.ts
index 5acc7f7e9a..bbf102fd1c 100644
--- a/src/shared/hooks/BackendAPI/useFetch.ts
+++ b/src/shared/hooks/BackendAPI/useFetch.ts
@@ -5,7 +5,7 @@ import { throwHttpError } from 'shared/hooks/BackendAPI/config';
 
 import { authDataState, AuthDataState } from '../../../state/authDataAtom';
 import { getClusterConfig } from '../../../state/utils/getBackendInfo';
-import { clusterState, ActiveClusterState } from '../../../state/clusterAtom';
+import { ActiveClusterState, clusterState } from '../../../state/clusterAtom';
 
 export type FetchFn = ({
   relativeUrl,
diff --git a/src/shared/utils/env.ts b/src/shared/utils/env.ts
index 55bbe3fc38..ced6aaf9cc 100644
--- a/src/shared/utils/env.ts
+++ b/src/shared/utils/env.ts
@@ -1,15 +1,36 @@
 import joinPaths from './path';
 
-export default async function getConfigDir(): Promise<string> {
+export enum Envs {
+  ENVIRONMENT = 'ENVIRONMENT',
+}
+
+async function getEnv(env: Envs): Promise<string> {
   const input = await fetchActiveEnv();
-  const envVar = input.trim().split('=');
-  if (envVar?.length === 2 && envVar[1]) {
-    const envDir = envVar[1].trim();
-    return joinPaths('environments', envDir);
+  const envs = readEnv(input);
+  const desiredEnv = envs.get(env);
+  return desiredEnv ? desiredEnv : '';
+}
+
+export async function getConfigDir(): Promise<string> {
+  const environment = await getEnv(Envs.ENVIRONMENT);
+  if (environment) {
+    return joinPaths('environments', environment);
   }
   return '';
 }
 
+function readEnv(input: string): Map<string, string> {
+  return new Map(
+    input.split('\n').map(value => {
+      const envVar = value.trim().split('=');
+      if (envVar?.length === 2 && envVar[1]) {
+        return [envVar[0], envVar[1]];
+      }
+      return ['', ''];
+    }),
+  );
+}
+
 async function fetchActiveEnv(): Promise<string> {
   const envResponse = await fetch('/active.env');
   return envResponse.text();
diff --git a/src/shared/utils/getClusterConfig.js b/src/shared/utils/getClusterConfig.js
deleted file mode 100644
index c4bf6398fa..0000000000
--- a/src/shared/utils/getClusterConfig.js
+++ /dev/null
@@ -1,15 +0,0 @@
-const domain = window.location.hostname;
-
-function getBackendAddress() {
-  // dev busola
-  if (window.location.hostname.startsWith('localhost')) {
-    return 'http://localhost:3001/backend';
-    // on cluster
-  } else {
-    return '/backend';
-  }
-}
-export const getClusterConfig = () => ({
-  domain,
-  backendAddress: getBackendAddress(),
-});
diff --git a/src/state/configuration/configurationAtom.ts b/src/state/configuration/configurationAtom.ts
index c36844b15c..bc4cfbc0c6 100644
--- a/src/state/configuration/configurationAtom.ts
+++ b/src/state/configuration/configurationAtom.ts
@@ -10,7 +10,7 @@ import { ConfigFeatureList } from '../types';
 import { apiGroupState } from '../discoverability/apiGroupsSelector';
 import { getFeatures } from './getFeatures';
 import { FetchFn } from 'shared/hooks/BackendAPI/useFetch';
-import getConfigDir from 'shared/utils/env';
+import { getConfigDir } from 'shared/utils/env';
 
 type Configuration = {
   features?: ConfigFeatureList;
diff --git a/src/state/navigation/extensionsAtom.ts b/src/state/navigation/extensionsAtom.ts
index 426102e79e..c79f55b093 100644
--- a/src/state/navigation/extensionsAtom.ts
+++ b/src/state/navigation/extensionsAtom.ts
@@ -26,7 +26,7 @@ import pluralize from 'pluralize';
 import { useGet } from 'shared/hooks/BackendAPI/useGet';
 import { CustomResourceDefinition } from 'command-pallette/CommandPalletteUI/handlers/crHandler';
 import { createPostFn } from 'shared/hooks/BackendAPI/usePost';
-import getConfigDir from 'shared/utils/env';
+import { getConfigDir } from 'shared/utils/env';
 
 /*
 the order of the overwrting extensions
@@ -435,7 +435,10 @@ export const useGetExtensions = () => {
           relativeUrl: url,
           init: options,
           abortController: options?.signal
-            ? { signal: options?.signal, abort: () => {} }
+            ? {
+                signal: options?.signal,
+                abort: () => {},
+              }
             : undefined,
         });
       }
diff --git a/src/state/utils/getBackendInfo.ts b/src/state/utils/getBackendInfo.ts
index d5ee6e5fec..d295ce51e2 100644
--- a/src/state/utils/getBackendInfo.ts
+++ b/src/state/utils/getBackendInfo.ts
@@ -1,22 +1,6 @@
 const domain = window.location.hostname;
 
-const getBackendAddress = () => {
-  // local busola - needed for e2e tests to work locally
-  if (
-    window.location.hostname.startsWith('localhost') &&
-    window.location.port === '8080' &&
-    !process.env.IS_DOCKER
-  ) {
-    return 'http://127.0.0.1:3001/backend';
-    // dev busola
-  } else if (window.location.hostname.startsWith('localhost')) {
-    return 'http://localhost:3001/backend';
-    // on cluster
-  } else {
-    return '/backend';
-  }
-};
 export const getClusterConfig = () => ({
   domain,
-  backendAddress: getBackendAddress(),
+  backendAddress: '/backend',
 });
diff --git a/tests/lighthouse/lighthouse.spec.js b/tests/lighthouse/lighthouse.spec.js
index b0716c54b4..ad70ba3459 100644
--- a/tests/lighthouse/lighthouse.spec.js
+++ b/tests/lighthouse/lighthouse.spec.js
@@ -3,9 +3,7 @@ import { playAudit } from 'playwright-lighthouse';
 import { chromium } from 'playwright';
 import { tmpdir } from 'os';
 
-const ADDRESS = process.env.LOCAL
-  ? 'http://localhost:8080'
-  : 'http://localhost:3000';
+const ADDRESS = 'http://localhost:8080';
 
 test('Busola Lighthouse audit', async () => {
   const context = await chromium.launchPersistentContext(tmpdir(), {
diff --git a/vite.config.mts b/vite.config.mts
index 0e88a8863e..d056603ede 100644
--- a/vite.config.mts
+++ b/vite.config.mts
@@ -15,6 +15,13 @@ export default defineConfig({
   },
   server: {
     port: 8080,
+    proxy: {
+      // with options
+      '^/backend/.*': {
+        target: 'http://localhost:3001',
+        changeOrigin: true,
+      },
+    },
   },
   plugins: [
     {
@@ -38,11 +45,11 @@ export default defineConfig({
     viteStaticCopy({
       targets: [
         {
-          src: 'resources/base/resource-validation/rule-sets/**/*.yaml',
+          src: 'resource-validation/rule-sets/**/*.yaml',
           dest: 'resource-validation',
           rename: 'rule-set.yaml',
           transform() {
-            return mergeYamlFiles('resources/base/resource-validation/rule-sets/**/*.yaml');
+            return mergeYamlFiles('resource-validation/rule-sets/**/*.yaml');
           },
         },
       ],
@@ -60,7 +67,7 @@ export default defineConfig({
       },
     },
     include: [
-      '@openapi-contrib/openapi-schema-to-json-schema', 
+      '@openapi-contrib/openapi-schema-to-json-schema',
       '@stoplight/json-ref-resolver',
       'monaco-yaml/yaml.worker.js'
     ]