diff --git a/test/e2e/e2e_setup_test.go b/test/e2e/e2e_setup_test.go
index f8674de46a..99d72ef17b 100644
--- a/test/e2e/e2e_setup_test.go
+++ b/test/e2e/e2e_setup_test.go
@@ -317,6 +317,23 @@ func addVCSimTestVariables(managementClusterProxy framework.ClusterProxy, specNa
 
 		testSpecificVariables[k] = v
 	}
+
+	vsphereClientsInitialized.Do(func() {
+		for k, v := range envVar.Status.Variables {
+			switch k {
+			case "VSPHERE_USERNAME":
+				vsphereUsername = v
+			case "VSPHERE_PASSWORD":
+				vspherePassword = v
+			case "VSPHERE_SERVER":
+				vsphereServer = v
+			case "VSPHERE_DATACENTER":
+				vsphereDatacenter = v
+			}
+		}
+
+		By("Initializing the vSphere session to ensure credentials are working", initVSphereSession)
+	})
 }
 
 func setupNamespaceWithVMOperatorDependenciesVCSim(managementClusterProxy framework.ClusterProxy, workloadClusterNamespace string) {
diff --git a/test/e2e/e2e_suite_test.go b/test/e2e/e2e_suite_test.go
index 554da15df9..56b29b952b 100644
--- a/test/e2e/e2e_suite_test.go
+++ b/test/e2e/e2e_suite_test.go
@@ -250,8 +250,7 @@ var _ = SynchronizedBeforeSuite(func() []byte {
 	if testTarget == VCenterTestTarget {
 		// Some of the tests targeting VCenter relies on an additional VSphere session to check test progress;
 		// such session is create once, and shared across many tests.
-		// Some changes will be requires to get this working with vcsim e.g. about how to get the credentials/vCenter info,
-		// but we are deferring this to future work (if an and when necessary).
+		// For vcsim this clients get initialized once in the first run of a postNamespaceCreated function.
 		By("Initializing the vSphere session to ensure credentials are working", initVSphereSession)
 	}
 
diff --git a/test/e2e/govmomi_test.go b/test/e2e/govmomi_test.go
index 10e0e60ac3..9bc35874b2 100644
--- a/test/e2e/govmomi_test.go
+++ b/test/e2e/govmomi_test.go
@@ -20,6 +20,7 @@ import (
 	"flag"
 	"net/url"
 	"os"
+	"sync"
 	"time"
 
 	. "github.com/onsi/ginkgo/v2"
@@ -42,6 +43,8 @@ var (
 	vsphereClient *govmomi.Client
 	restClient    *rest.Client
 	vsphereFinder *find.Finder
+
+	vsphereClientsInitialized sync.Once
 )
 
 func init() {