diff --git a/manifests/function/bootstrap/kustomization.yaml b/manifests/function/bootstrap/kustomization.yaml
new file mode 100644
index 000000000..b1e944410
--- /dev/null
+++ b/manifests/function/bootstrap/kustomization.yaml
@@ -0,0 +1,2 @@
+generators:
+  - template.yaml
diff --git a/manifests/function/bootstrap/replacements/kustomization.yaml b/manifests/function/bootstrap/replacements/kustomization.yaml
new file mode 100644
index 000000000..59d5ea989
--- /dev/null
+++ b/manifests/function/bootstrap/replacements/kustomization.yaml
@@ -0,0 +1,4 @@
+apiVersion: kustomize.config.k8s.io/v1beta1
+kind: Kustomization
+resources:
+  - remotedirect-vars.yaml
diff --git a/manifests/function/bootstrap/replacements/remotedirect-vars.yaml b/manifests/function/bootstrap/replacements/remotedirect-vars.yaml
new file mode 100644
index 000000000..a42c84f55
--- /dev/null
+++ b/manifests/function/bootstrap/replacements/remotedirect-vars.yaml
@@ -0,0 +1,27 @@
+apiVersion: airshipit.org/v1alpha1
+kind: ReplacementTransformer
+metadata:
+  name: versions-remotedirect-replacement
+  annotations:
+    config.kubernetes.io/function: |-
+      container:
+        image: quay.io/airshipit/replacement-transformer:v2
+replacements:
+- source:
+    objref:
+      name: versions-remotedirect
+    fieldref: spec.remotedirect.isoURL
+  target:
+    objref:
+      kind: BaremetalManager
+      name: RemoteDirectEphemeral
+    fieldrefs: ["spec.operationOptions.remoteDirect.isoURL%ISO_URL%"]
+- source:
+    objref:
+      name: versions-remotedirect
+    fieldref: spec.remotedirect.node
+  target:
+    objref:
+      kind: BaremetalManager
+      name: RemoteDirectEphemeral
+    fieldrefs: ["spec.hostSelector.name%EPHEMERAL_NODE%"]
diff --git a/manifests/function/bootstrap/template.yaml b/manifests/function/bootstrap/template.yaml
new file mode 100644
index 000000000..611e9a313
--- /dev/null
+++ b/manifests/function/bootstrap/template.yaml
@@ -0,0 +1,28 @@
+apiVersion: airshipit.org/v1alpha1
+kind: Templater
+metadata:
+  name: iso-patch-template
+  annotations:
+    config.kubernetes.io/function: |
+      container:
+        image: quay.io/airshipit/templater:latest
+        envs:
+        - AIRSHIPCTL_EPHEMERAL_ISO_URL
+template: |
+  {{- $isoURL := env "AIRSHIPCTL_EPHEMERAL_ISO_URL" }}
+  {{- if not (empty $isoURL) }}
+  apiVersion: builtin
+  kind: PatchStrategicMergeTransformer
+  metadata:
+    name: smp
+  patches: |-
+    ---
+    apiVersion: airshipit.org/v1alpha1
+    kind: BaremetalManager
+    metadata:
+      name: RemoteDirectEphemeral
+    spec:
+      operationOptions:
+        remoteDirect:
+          isoURL: {{ $isoURL }}
+  {{- end }}
diff --git a/manifests/phases/executors.yaml b/manifests/phases/executors.yaml
index 1a8929465..aeb72b3ac 100644
--- a/manifests/phases/executors.yaml
+++ b/manifests/phases/executors.yaml
@@ -196,10 +196,10 @@ metadata:
 spec:
   operation: remote-direct
   hostSelector:
-    name: REPLACE_ME
+    name: EPHEMERAL_NODE
   operationOptions:
     remoteDirect:
-      isoURL: REPLACE_ME
+      isoURL: ISO_URL
 ---
 apiVersion: airshipit.org/v1alpha1
 kind: GenericContainer
diff --git a/manifests/phases/kustomization.yaml b/manifests/phases/kustomization.yaml
index 1d53edebf..c24b42d19 100644
--- a/manifests/phases/kustomization.yaml
+++ b/manifests/phases/kustomization.yaml
@@ -9,3 +9,6 @@ patchesStrategicMerge:
   - clusterctl_init_options.yaml
 transformers:
   - ../function/clusterctl/replacements
+  # NOTE(aostapenko) Consume AIRSHIPCTL_EPHEMERAL_ISO_URL here that will
+  # have precedence over phase catalogue isoURL value
+  - ../function/bootstrap
diff --git a/manifests/site/test-site/phases/catalogue.yaml b/manifests/site/test-site/phases/catalogue.yaml
new file mode 100644
index 000000000..e7feea484
--- /dev/null
+++ b/manifests/site/test-site/phases/catalogue.yaml
@@ -0,0 +1,10 @@
+apiVersion: airshipit.org/v1alpha1
+kind: VersionsCatalogue
+metadata:
+  name: versions-remotedirect
+spec:
+  remotedirect:
+    # NOTE(aostapenko) This value will only be used in absense of
+    # AIRSHIPCTL_EPHEMERAL_ISO_URL environment variable
+    isoURL: http://localhost:8099/ephemeral.iso
+    node: node02
diff --git a/manifests/site/test-site/phases/kustomization.yaml b/manifests/site/test-site/phases/kustomization.yaml
index ec6686c02..55159500e 100644
--- a/manifests/site/test-site/phases/kustomization.yaml
+++ b/manifests/site/test-site/phases/kustomization.yaml
@@ -1,6 +1,6 @@
 resources:
   - ../kubeconfig
   - ../../../phases
-## TODO Consider making a catalogue combined with variable substitution instead
-patchesStrategicMerge:
-  - phase-patch.yaml
\ No newline at end of file
+  - catalogue.yaml
+transformers:
+  - ../../../function/bootstrap/replacements
diff --git a/manifests/site/test-site/phases/phase-patch.yaml b/manifests/site/test-site/phases/phase-patch.yaml
deleted file mode 100644
index 18f031368..000000000
--- a/manifests/site/test-site/phases/phase-patch.yaml
+++ /dev/null
@@ -1,10 +0,0 @@
-apiVersion: airshipit.org/v1alpha1
-kind: BaremetalManager
-metadata:
-  name: RemoteDirectEphemeral
-spec:
-  hostSelector:
-    name: node02
-  operationOptions:
-    remoteDirect:
-      isoURL: http://localhost:8099/ephemeral.iso
\ No newline at end of file