diff --git a/pkg/env/kube_env.go b/pkg/env/kube_env.go
index 1dd8ee7eb..f2d50e844 100644
--- a/pkg/env/kube_env.go
+++ b/pkg/env/kube_env.go
@@ -50,6 +50,9 @@ func NewKubeEnvPrinter(injector di.Injector) *KubeEnvPrinter {
 // It checks for a project-specific volume directory and returns current variables
 // if it doesn't exist. If it does, it ensures each PVC directory has a corresponding
 // "PV_" environment variable, returning the map if all are accounted for.
+// If not all volumes are accounted for, it attempts to query the Kubernetes API
+// to create environment variables for matching PVCs. If the API is unavailable,
+// it gracefully degrades by returning the basic environment variables without failing.
 func (e *KubeEnvPrinter) GetEnvVars() (map[string]string, error) {
 	envVars := make(map[string]string)
 	configRoot, err := e.configHandler.GetConfigRoot()
@@ -111,7 +114,7 @@ func (e *KubeEnvPrinter) GetEnvVars() (map[string]string, error) {
 
 	pvcs, err := queryPersistentVolumeClaims(kubeConfigPath)
 	if err != nil {
-		return nil, fmt.Errorf("error querying persistent volume claims: %w", err)
+		return envVars, nil
 	}
 
 	if pvcs != nil && pvcs.Items != nil {
diff --git a/pkg/env/kube_env_test.go b/pkg/env/kube_env_test.go
index a8a57f6a3..fbf9169de 100644
--- a/pkg/env/kube_env_test.go
+++ b/pkg/env/kube_env_test.go
@@ -272,19 +272,22 @@ func TestKubeEnvPrinter_GetEnvVars(t *testing.T) {
 		// When getting environment variables
 		envVars, err := printer.GetEnvVars()
 
-		// Then an error should be returned
-		if err == nil {
-			t.Error("Expected error, got nil")
+		// Then no error should be returned (graceful degradation)
+		if err != nil {
+			t.Errorf("Expected no error due to graceful degradation, got %v", err)
 		}
 
-		// And the error should mention querying PVCs
-		if !strings.Contains(err.Error(), "error querying persistent volume claims") {
-			t.Errorf("Expected error about querying PVCs, got %v", err)
+		// And envVars should not be nil (should contain basic kube config vars)
+		if envVars == nil {
+			t.Error("Expected non-nil envVars with basic kube config")
 		}
 
-		// And envVars should be nil
-		if envVars != nil {
-			t.Errorf("Expected nil envVars, got %v", envVars)
+		// And basic kubernetes environment variables should be present
+		if _, exists := envVars["KUBECONFIG"]; !exists {
+			t.Error("Expected KUBECONFIG to be present in envVars")
+		}
+		if _, exists := envVars["KUBE_CONFIG_PATH"]; !exists {
+			t.Error("Expected KUBE_CONFIG_PATH to be present in envVars")
 		}
 	})