diff --git a/changelog/fragments/fix-fbc-init-container-security-context.yaml b/changelog/fragments/fix-fbc-init-container-security-context.yaml
new file mode 100644
index 00000000000..97383fe55a8
--- /dev/null
+++ b/changelog/fragments/fix-fbc-init-container-security-context.yaml
@@ -0,0 +1,10 @@
+# entries is a list of entries to include in
+# release notes and/or the migration guide
+entries:
+  - description: >
+      Fixed `operator-sdk run bundle` with `--security-context-config=restricted` to apply
+      the restricted security context to init containers (`registry-grpc-init`), not just
+      the main container. This resolves PodSecurity violations on clusters with
+      `restricted` policy enforcement.
+    kind: bugfix
+    breaking: false
diff --git a/internal/olm/operator/registry/fbcindex/fbc_registry_pod.go b/internal/olm/operator/registry/fbcindex/fbc_registry_pod.go
index 4abc2f238af..eb15579eea9 100644
--- a/internal/olm/operator/registry/fbcindex/fbc_registry_pod.go
+++ b/internal/olm/operator/registry/fbcindex/fbc_registry_pod.go
@@ -148,8 +148,7 @@ func (f *FBCRegistryPod) Create(ctx context.Context, cfg *operator.Configuration
 			},
 		}
 
-		// Update the Registry Pod container security context to be restrictive
-		f.pod.Spec.Containers[0].SecurityContext = &corev1.SecurityContext{
+		restrictedSecurityContext := &corev1.SecurityContext{
 			Privileged:               pointer.To(false),
 			ReadOnlyRootFilesystem:   pointer.To(false),
 			AllowPrivilegeEscalation: pointer.To(false),
@@ -157,6 +156,14 @@ func (f *FBCRegistryPod) Create(ctx context.Context, cfg *operator.Configuration
 				Drop: []corev1.Capability{"ALL"},
 			},
 		}
+
+		// Update the Registry Pod container security context to be restrictive
+		f.pod.Spec.Containers[0].SecurityContext = restrictedSecurityContext
+
+		// Update all init containers with the same restrictive security context
+		for i := range f.pod.Spec.InitContainers {
+			f.pod.Spec.InitContainers[i].SecurityContext = restrictedSecurityContext
+		}
 	}
 
 	if f.ImagePullPolicy == "" {