diff --git a/Makefile b/Makefile
index fbb4c4a3..ebdb58f2 100644
--- a/Makefile
+++ b/Makefile
@@ -18,6 +18,10 @@ TAG ?= latest
 ENABLE_MULTI_PLATFORMS ?= false
 HELM_CHART_VERSION ?= v0.0.0-latest
 
+# Arguments for go test. This can be used, for example, to run specific tests via
+# `GO_TEST_EXTRA_ARGS="-run TestName/foo/etc"`.
+GO_TEST_EXTRA_ARGS ?=
+
 # This will print out the help message for contributing to the project.
 .PHONY: help
 help:
@@ -104,7 +108,7 @@ test-cel: envtest apigen
 	@for k8sVersion in $(ENVTEST_K8S_VERSIONS); do \
   		echo "Run CEL Validation on k8s $$k8sVersion"; \
         KUBEBUILDER_ASSETS="$$($(ENVTEST) use $$k8sVersion -p path)" \
-                 go test ./tests/cel-validation --tags test_cel_validation -v -count=1; \
+                 go test ./tests/cel-validation $(GO_TEST_EXTRA_ARGS) --tags test_cel_validation -v -count=1; \
     done
 
 # This runs the end-to-end tests for extproc without controller or k8s at all.
@@ -116,7 +120,7 @@ test-extproc: build.extproc
 	@$(MAKE) build.extproc_custom_router CMD_PATH_PREFIX=examples
 	@$(MAKE) build.testupstream CMD_PATH_PREFIX=tests
 	@echo "Run ExtProc test"
-	@go test ./tests/extproc/... -tags test_extproc -v -count=1
+	@go test ./tests/extproc/... $(GO_TEST_EXTRA_ARGS) -tags test_extproc -v -count=1
 
 # This runs the end-to-end tests for the controller with EnvTest.
 .PHONY: test-controller
@@ -124,7 +128,7 @@ test-controller: envtest apigen
 	@for k8sVersion in $(ENVTEST_K8S_VERSIONS); do \
   		echo "Run Controller tests on k8s $$k8sVersion"; \
         KUBEBUILDER_ASSETS="$$($(ENVTEST) use $$k8sVersion -p path)" \
-                 go test ./tests/controller --tags test_controller -v -count=1; \
+                 go test ./tests/controller $(GO_TEST_EXTRA_ARGS) --tags test_controller -v -count=1; \
     done
 
 # This runs the end-to-end tests for the controller and extproc with a local kind cluster.
@@ -133,8 +137,9 @@ test-controller: envtest apigen
 .PHONY: test-e2e
 test-e2e: kind
 	@$(MAKE) docker-build DOCKER_BUILD_ARGS="--load"
+	@$(MAKE) docker-build.testupstream CMD_PATH_PREFIX=tests DOCKER_BUILD_ARGS="--load"
 	@echo "Run E2E tests"
-	@go test ./tests/e2e/... -tags test_e2e -v -count=1
+	@go test ./tests/e2e/... $(GO_TEST_EXTRA_ARGS) -tags test_e2e -v -count=1
 
 # This builds a binary for the given command under the internal/cmd directory.
 #
@@ -187,6 +192,12 @@ build.%:
 #
 # Example:
 # - `make docker-build.controller TAG=v1.2.3`
+#
+# To build the main functions outside cmd/ directory, set CMD_PATH_PREFIX to the directory containing the main function.
+#
+# Example:
+# - `make docker-build.extproc_custom_router CMD_PATH_PREFIX=examples`
+# - `make docker-build.testupstream CMD_PATH_PREFIX=tests`
 .PHONY: docker-build.%
 docker-build.%:
 	$(eval COMMAND_NAME := $(subst docker-build.,,$@))
@@ -198,7 +209,7 @@ docker-build.%:
 	@$(MAKE) build.$(COMMAND_NAME) GOOS_LIST="linux"
 	docker buildx build . -t $(OCI_REGISTRY)/$(COMMAND_NAME):$(TAG) --build-arg COMMAND_NAME=$(COMMAND_NAME) $(PLATFORMS) $(DOCKER_BUILD_ARGS)
 
-# This builds docker images for all commands. All options for `docker-build.%` apply.
+# This builds docker images for all commands under cmd/ directory. All options for `docker-build.%` apply.
 #
 # Example:
 # - `make docker-build`
diff --git a/internal/controller/ai_gateway_route.go b/internal/controller/ai_gateway_route.go
index cb200f49..4ab31148 100644
--- a/internal/controller/ai_gateway_route.go
+++ b/internal/controller/ai_gateway_route.go
@@ -46,7 +46,6 @@ type aiGatewayRouteController struct {
 	client              client.Client
 	kube                kubernetes.Interface
 	logger              logr.Logger
-	logLevel            string
 	defaultExtProcImage string
 	eventChan           chan ConfigSinkEvent
 }
@@ -59,7 +58,7 @@ func NewAIGatewayRouteController(
 	return &aiGatewayRouteController{
 		client:              client,
 		kube:                kube,
-		logger:              logger.WithName("ai-gateway-route-controller"),
+		logger:              logger.WithName("eaig-route-controller"),
 		defaultExtProcImage: options.ExtProcImage,
 		eventChan:           ch,
 	}
@@ -204,7 +203,7 @@ func (c *aiGatewayRouteController) reconcileExtProcDeployment(ctx context.Contex
 									Ports:           []corev1.ContainerPort{{Name: "grpc", ContainerPort: 1063}},
 									Args: []string{
 										"-configPath", "/etc/ai-gateway/extproc/" + expProcConfigFileName,
-										"-logLevel", c.logLevel,
+										"-logLevel", "info", // TODO: this should be configurable via FilterConfig API.
 									},
 									VolumeMounts: []corev1.VolumeMount{
 										{Name: "config", MountPath: "/etc/ai-gateway/extproc"},
@@ -268,7 +267,7 @@ func (c *aiGatewayRouteController) reconcileExtProcDeployment(ctx context.Contex
 }
 
 func extProcName(route *aigv1a1.AIGatewayRoute) string {
-	return fmt.Sprintf("ai-gateway-ai-gateway-route-extproc-%s", route.Name)
+	return fmt.Sprintf("eaig-route-extproc-%s", route.Name)
 }
 
 func ownerReferenceForAIGatewayRoute(aiGatewayRoute *aigv1a1.AIGatewayRoute) []metav1.OwnerReference {
diff --git a/internal/controller/ai_gateway_route_test.go b/internal/controller/ai_gateway_route_test.go
index f8ce44ba..74368e23 100644
--- a/internal/controller/ai_gateway_route_test.go
+++ b/internal/controller/ai_gateway_route_test.go
@@ -27,7 +27,7 @@ func Test_extProcName(t *testing.T) {
 			Name: "myroute",
 		},
 	})
-	require.Equal(t, "ai-gateway-ai-gateway-route-extproc-myroute", actual)
+	require.Equal(t, "eaig-route-extproc-myroute", actual)
 }
 
 func TestAIGatewayRouteController_ensuresExtProcConfigMapExists(t *testing.T) {
diff --git a/internal/controller/sink.go b/internal/controller/sink.go
index 4d85b918..6be985c4 100644
--- a/internal/controller/sink.go
+++ b/internal/controller/sink.go
@@ -7,6 +7,7 @@ import (
 	"github.com/go-logr/logr"
 	metav1 "k8s.io/apimachinery/pkg/apis/meta/v1"
 	"k8s.io/client-go/kubernetes"
+	"k8s.io/utils/ptr"
 	"sigs.k8s.io/controller-runtime/pkg/client"
 	gwapiv1 "sigs.k8s.io/gateway-api/apis/v1"
 	"sigs.k8s.io/yaml"
@@ -89,6 +90,7 @@ func (c *configSink) handleEvent(event ConfigSinkEvent) {
 
 func (c *configSink) syncAIGatewayRoute(aiGatewayRoute *aigv1a1.AIGatewayRoute) {
 	// Check if the HTTPRoute exists.
+	c.logger.Info("syncing AIGatewayRoute", "namespace", aiGatewayRoute.Namespace, "name", aiGatewayRoute.Name)
 	var httpRoute gwapiv1.HTTPRoute
 	err := c.client.Get(context.Background(), client.ObjectKey{Name: aiGatewayRoute.Name, Namespace: aiGatewayRoute.Namespace}, &httpRoute)
 	existingRoute := err == nil
@@ -115,11 +117,13 @@ func (c *configSink) syncAIGatewayRoute(aiGatewayRoute *aigv1a1.AIGatewayRoute)
 	}
 
 	if existingRoute {
+		c.logger.Info("updating HTTPRoute", "namespace", httpRoute.Namespace, "name", httpRoute.Name)
 		if err := c.client.Update(context.Background(), &httpRoute); err != nil {
 			c.logger.Error(err, "failed to update HTTPRoute", "namespace", httpRoute.Namespace, "name", httpRoute.Name)
 			return
 		}
 	} else {
+		c.logger.Info("creating HTTPRoute", "namespace", httpRoute.Namespace, "name", httpRoute.Name)
 		if err := c.client.Create(context.Background(), &httpRoute); err != nil {
 			c.logger.Error(err, "failed to create HTTPRoute", "namespace", httpRoute.Namespace, "name", httpRoute.Name)
 			return
@@ -142,6 +146,10 @@ func (c *configSink) syncAIServiceBackend(aiBackend *aigv1a1.AIServiceBackend) {
 		return
 	}
 	for _, aiGatewayRoute := range aiGatewayRoutes.Items {
+		c.logger.Info("syncing AIGatewayRoute",
+			"namespace", aiGatewayRoute.Namespace, "name", aiGatewayRoute.Name,
+			"referenced_backend", aiBackend.Name, "referenced_backend_namespace", aiBackend.Namespace,
+		)
 		c.syncAIGatewayRoute(&aiGatewayRoute)
 	}
 }
@@ -229,6 +237,17 @@ func (c *configSink) newHTTPRoute(dst *gwapiv1.HTTPRoute, aiGatewayRoute *aigv1a
 		}
 		rules[i] = rule
 	}
+
+	// Adds the default route rule with "/" path.
+	rules = append(rules, gwapiv1.HTTPRouteRule{
+		Matches: []gwapiv1.HTTPRouteMatch{
+			{Path: &gwapiv1.HTTPPathMatch{Value: ptr.To("/")}},
+		},
+		BackendRefs: []gwapiv1.HTTPBackendRef{
+			{BackendRef: gwapiv1.BackendRef{BackendObjectReference: backends[0].Spec.BackendRef.BackendObjectReference}},
+		},
+	})
+
 	dst.Spec.Rules = rules
 
 	targetRefs := aiGatewayRoute.Spec.TargetRefs
diff --git a/internal/controller/sink_test.go b/internal/controller/sink_test.go
index ceb322f1..a8c684fb 100644
--- a/internal/controller/sink_test.go
+++ b/internal/controller/sink_test.go
@@ -86,12 +86,15 @@ func TestConfigSink_syncAIGatewayRoute(t *testing.T) {
 		var updatedHTTPRoute gwapiv1.HTTPRoute
 		err = fakeClient.Get(context.Background(), client.ObjectKey{Name: "route1", Namespace: "ns1"}, &updatedHTTPRoute)
 		require.NoError(t, err)
-		require.Len(t, updatedHTTPRoute.Spec.Rules, 2)
+		require.Len(t, updatedHTTPRoute.Spec.Rules, 3) // 2 backends + 1 for the default rule.
 		require.Len(t, updatedHTTPRoute.Spec.Rules[0].BackendRefs, 1)
 		require.Equal(t, "some-backend1", string(updatedHTTPRoute.Spec.Rules[0].BackendRefs[0].BackendRef.Name))
 		require.Equal(t, "apple.ns1", updatedHTTPRoute.Spec.Rules[0].Matches[0].Headers[0].Value)
 		require.Equal(t, "some-backend2", string(updatedHTTPRoute.Spec.Rules[1].BackendRefs[0].BackendRef.Name))
 		require.Equal(t, "orange.ns1", updatedHTTPRoute.Spec.Rules[1].Matches[0].Headers[0].Value)
+		// Defaulting to the first backend.
+		require.Equal(t, "some-backend1", string(updatedHTTPRoute.Spec.Rules[2].BackendRefs[0].BackendRef.Name))
+		require.Equal(t, "/", *updatedHTTPRoute.Spec.Rules[2].Matches[0].Path.Value)
 	})
 }
 
@@ -196,11 +199,17 @@ func Test_newHTTPRoute(t *testing.T) {
 			BackendRefs: []gwapiv1.HTTPBackendRef{{BackendRef: gwapiv1.BackendRef{BackendObjectReference: gwapiv1.BackendObjectReference{Name: "some-backend4", Namespace: ptr.To[gwapiv1.Namespace]("ns1")}}}},
 		},
 	}
-	require.Len(t, httpRoute.Spec.Rules, 4)
+	require.Len(t, httpRoute.Spec.Rules, 5) // 4 backends + 1 for the default rule.
 	for i, r := range httpRoute.Spec.Rules {
 		t.Run(fmt.Sprintf("rule-%d", i), func(t *testing.T) {
-			require.Equal(t, expRules[i].Matches, r.Matches)
-			require.Equal(t, expRules[i].BackendRefs, r.BackendRefs)
+			if i == 4 {
+				require.Equal(t, expRules[0].BackendRefs, r.BackendRefs)
+				require.NotNil(t, r.Matches[0].Path)
+				require.Equal(t, "/", *r.Matches[0].Path.Value)
+			} else {
+				require.Equal(t, expRules[i].Matches, r.Matches)
+				require.Equal(t, expRules[i].BackendRefs, r.BackendRefs)
+			}
 		})
 	}
 }
diff --git a/internal/extproc/mocks_test.go b/internal/extproc/mocks_test.go
index 7c3666f7..048fc193 100644
--- a/internal/extproc/mocks_test.go
+++ b/internal/extproc/mocks_test.go
@@ -3,6 +3,7 @@ package extproc
 import (
 	"context"
 	"io"
+	"log/slog"
 	"testing"
 
 	corev3 "github.com/envoyproxy/go-control-plane/envoy/config/core/v3"
@@ -23,7 +24,7 @@ var (
 	_ extprocapi.Router     = &mockRouter{}
 )
 
-func newMockProcessor(_ *processorConfig) *mockProcessor {
+func newMockProcessor(_ *processorConfig, _ *slog.Logger) *mockProcessor {
 	return &mockProcessor{}
 }
 
diff --git a/internal/extproc/processor.go b/internal/extproc/processor.go
index fdb0c564..ad437cac 100644
--- a/internal/extproc/processor.go
+++ b/internal/extproc/processor.go
@@ -6,6 +6,7 @@ import (
 	"context"
 	"fmt"
 	"io"
+	"log/slog"
 	"unicode/utf8"
 
 	corev3 "github.com/envoyproxy/go-control-plane/envoy/config/core/v3"
@@ -44,12 +45,13 @@ type ProcessorIface interface {
 }
 
 // NewProcessor creates a new processor.
-func NewProcessor(config *processorConfig) *Processor {
-	return &Processor{config: config}
+func NewProcessor(config *processorConfig, logger *slog.Logger) *Processor {
+	return &Processor{config: config, logger: logger}
 }
 
 // Processor handles the processing of the request and response messages for a single stream.
 type Processor struct {
+	logger           *slog.Logger
 	config           *processorConfig
 	requestHeaders   map[string]string
 	responseEncoding string
@@ -72,12 +74,14 @@ func (p *Processor) ProcessRequestBody(_ context.Context, rawBody *extprocv3.Htt
 	if err != nil {
 		return nil, fmt.Errorf("failed to parse request body: %w", err)
 	}
+	p.logger.Info("Processing request", "path", path, "model", model)
 
 	p.requestHeaders[p.config.ModelNameHeaderKey] = model
 	b, err := p.config.router.Calculate(p.requestHeaders)
 	if err != nil {
 		return nil, fmt.Errorf("failed to calculate route: %w", err)
 	}
+	p.logger.Info("Selected backend", "backend", b.Name)
 
 	factory, ok := p.config.factories[b.OutputSchema]
 	if !ok {
diff --git a/internal/extproc/processor_test.go b/internal/extproc/processor_test.go
index 5363797b..6fd51b4b 100644
--- a/internal/extproc/processor_test.go
+++ b/internal/extproc/processor_test.go
@@ -3,6 +3,7 @@ package extproc
 import (
 	"context"
 	"errors"
+	"log/slog"
 	"testing"
 
 	corev3 "github.com/envoyproxy/go-control-plane/envoy/config/core/v3"
@@ -86,7 +87,7 @@ func TestProcessor_ProcessRequestBody(t *testing.T) {
 		headers := map[string]string{":path": "/foo"}
 		rbp := mockRequestBodyParser{t: t, retModelName: "some-model", expPath: "/foo"}
 		rt := mockRouter{t: t, expHeaders: headers, retErr: errors.New("test error")}
-		p := &Processor{config: &processorConfig{bodyParser: rbp.impl, router: rt}, requestHeaders: headers}
+		p := &Processor{config: &processorConfig{bodyParser: rbp.impl, router: rt}, requestHeaders: headers, logger: slog.Default()}
 		_, err := p.ProcessRequestBody(context.Background(), &extprocv3.HttpBody{})
 		require.ErrorContains(t, err, "failed to calculate route: test error")
 	})
@@ -100,7 +101,7 @@ func TestProcessor_ProcessRequestBody(t *testing.T) {
 		p := &Processor{config: &processorConfig{
 			bodyParser: rbp.impl, router: rt,
 			factories: make(map[filterconfig.VersionedAPISchema]translator.Factory),
-		}, requestHeaders: headers}
+		}, requestHeaders: headers, logger: slog.Default()}
 		_, err := p.ProcessRequestBody(context.Background(), &extprocv3.HttpBody{})
 		require.ErrorContains(t, err, "failed to find factory for output schema {\"some-schema\" \"v10.0\"}")
 	})
@@ -117,7 +118,7 @@ func TestProcessor_ProcessRequestBody(t *testing.T) {
 			factories: map[filterconfig.VersionedAPISchema]translator.Factory{
 				{Schema: "some-schema", Version: "v10.0"}: factory.impl,
 			},
-		}, requestHeaders: headers}
+		}, requestHeaders: headers, logger: slog.Default()}
 		_, err := p.ProcessRequestBody(context.Background(), &extprocv3.HttpBody{})
 		require.ErrorContains(t, err, "failed to create translator: test error")
 	})
@@ -134,7 +135,7 @@ func TestProcessor_ProcessRequestBody(t *testing.T) {
 			factories: map[filterconfig.VersionedAPISchema]translator.Factory{
 				{Schema: "some-schema", Version: "v10.0"}: factory.impl,
 			},
-		}, requestHeaders: headers}
+		}, requestHeaders: headers, logger: slog.Default()}
 		_, err := p.ProcessRequestBody(context.Background(), &extprocv3.HttpBody{})
 		require.ErrorContains(t, err, "failed to transform request: test error")
 	})
@@ -157,7 +158,7 @@ func TestProcessor_ProcessRequestBody(t *testing.T) {
 			},
 			selectedBackendHeaderKey: "x-ai-gateway-backend-key",
 			ModelNameHeaderKey:       "x-ai-gateway-model-key",
-		}, requestHeaders: headers}
+		}, requestHeaders: headers, logger: slog.Default()}
 		resp, err := p.ProcessRequestBody(context.Background(), &extprocv3.HttpBody{})
 		require.NoError(t, err)
 		require.Equal(t, mt, p.translator)
diff --git a/internal/extproc/server.go b/internal/extproc/server.go
index 91874fc4..009ae742 100644
--- a/internal/extproc/server.go
+++ b/internal/extproc/server.go
@@ -23,11 +23,11 @@ import (
 type Server[P ProcessorIface] struct {
 	logger       *slog.Logger
 	config       *processorConfig
-	newProcessor func(*processorConfig) P
+	newProcessor func(*processorConfig, *slog.Logger) P
 }
 
 // NewServer creates a new external processor server.
-func NewServer[P ProcessorIface](logger *slog.Logger, newProcessor func(*processorConfig) P) (*Server[P], error) {
+func NewServer[P ProcessorIface](logger *slog.Logger, newProcessor func(*processorConfig, *slog.Logger) P) (*Server[P], error) {
 	srv := &Server[P]{logger: logger, newProcessor: newProcessor}
 	return srv, nil
 }
@@ -78,7 +78,7 @@ func (s *Server[P]) LoadConfig(config *filterconfig.Config) error {
 
 // Process implements [extprocv3.ExternalProcessorServer].
 func (s *Server[P]) Process(stream extprocv3.ExternalProcessor_ProcessServer) error {
-	p := s.newProcessor(s.config)
+	p := s.newProcessor(s.config, s.logger)
 	return s.process(p, stream)
 }
 
diff --git a/internal/extproc/server_test.go b/internal/extproc/server_test.go
index 39c49aaa..09734303 100644
--- a/internal/extproc/server_test.go
+++ b/internal/extproc/server_test.go
@@ -104,13 +104,13 @@ func TestServer_Watch(t *testing.T) {
 func TestServer_processMsg(t *testing.T) {
 	t.Run("unknown request type", func(t *testing.T) {
 		s := requireNewServerWithMockProcessor(t)
-		p := s.newProcessor(nil)
+		p := s.newProcessor(nil, slog.Default())
 		_, err := s.processMsg(context.Background(), p, &extprocv3.ProcessingRequest{})
 		require.ErrorContains(t, err, "unknown request type")
 	})
 	t.Run("request headers", func(t *testing.T) {
 		s := requireNewServerWithMockProcessor(t)
-		p := s.newProcessor(nil)
+		p := s.newProcessor(nil, slog.Default())
 
 		hm := &corev3.HeaderMap{Headers: []*corev3.HeaderValue{{Key: "foo", Value: "bar"}}}
 		expResponse := &extprocv3.ProcessingResponse{Response: &extprocv3.ProcessingResponse_RequestHeaders{}}
@@ -127,7 +127,7 @@ func TestServer_processMsg(t *testing.T) {
 	})
 	t.Run("request body", func(t *testing.T) {
 		s := requireNewServerWithMockProcessor(t)
-		p := s.newProcessor(nil)
+		p := s.newProcessor(nil, slog.Default())
 
 		reqBody := &extprocv3.HttpBody{}
 		expResponse := &extprocv3.ProcessingResponse{Response: &extprocv3.ProcessingResponse_RequestBody{}}
@@ -144,7 +144,7 @@ func TestServer_processMsg(t *testing.T) {
 	})
 	t.Run("response headers", func(t *testing.T) {
 		s := requireNewServerWithMockProcessor(t)
-		p := s.newProcessor(nil)
+		p := s.newProcessor(nil, slog.Default())
 
 		hm := &corev3.HeaderMap{Headers: []*corev3.HeaderValue{{Key: "foo", Value: "bar"}}}
 		expResponse := &extprocv3.ProcessingResponse{Response: &extprocv3.ProcessingResponse_ResponseHeaders{}}
@@ -161,7 +161,7 @@ func TestServer_processMsg(t *testing.T) {
 	})
 	t.Run("response body", func(t *testing.T) {
 		s := requireNewServerWithMockProcessor(t)
-		p := s.newProcessor(nil)
+		p := s.newProcessor(nil, slog.Default())
 
 		reqBody := &extprocv3.HttpBody{}
 		expResponse := &extprocv3.ProcessingResponse{Response: &extprocv3.ProcessingResponse_ResponseBody{}}
@@ -213,7 +213,7 @@ func TestServer_Process(t *testing.T) {
 		ctx, cancel := context.WithTimeout(context.Background(), time.Second)
 		defer cancel()
 
-		p := s.newProcessor(nil)
+		p := s.newProcessor(nil, slog.Default())
 		hm := &corev3.HeaderMap{Headers: []*corev3.HeaderValue{{Key: "foo", Value: "bar"}}}
 		expResponse := &extprocv3.ProcessingResponse{Response: &extprocv3.ProcessingResponse_RequestHeaders{}}
 		p.t = t
diff --git a/internal/extproc/translator/openai_awsbedrock_test.go b/internal/extproc/translator/openai_awsbedrock_test.go
index f4bcc25f..adaa8f81 100644
--- a/internal/extproc/translator/openai_awsbedrock_test.go
+++ b/internal/extproc/translator/openai_awsbedrock_test.go
@@ -4,6 +4,7 @@ import (
 	"bytes"
 	"encoding/base64"
 	"encoding/json"
+	"fmt"
 	"strconv"
 	"strings"
 	"testing"
@@ -579,6 +580,8 @@ func TestOpenAIToAWSBedrockTranslatorV1ChatCompletion_ResponseBody(t *testing.T)
 		t.Run(tt.name, func(t *testing.T) {
 			body, err := json.Marshal(tt.input)
 			require.NoError(t, err)
+			fmt.Println(string(body))
+
 			o := &openAIToAWSBedrockTranslatorV1ChatCompletion{}
 			hm, bm, usedToken, err := o.ResponseBody(bytes.NewBuffer(body), false)
 			require.NoError(t, err)
diff --git a/tests/controller/controller_test.go b/tests/controller/controller_test.go
index 8e9fee4e..5c16ac0f 100644
--- a/tests/controller/controller_test.go
+++ b/tests/controller/controller_test.go
@@ -35,7 +35,7 @@ import (
 var defaultSchema = aigv1a1.VersionedAPISchema{Schema: aigv1a1.APISchemaOpenAI, Version: "v1"}
 
 func extProcName(aiGatewayRouteName string) string {
-	return fmt.Sprintf("ai-gateway-ai-gateway-route-extproc-%s", aiGatewayRouteName)
+	return fmt.Sprintf("eaig-route-extproc-%s", aiGatewayRouteName)
 }
 
 // TestStartControllers tests the [controller.StartControllers] function.
@@ -202,7 +202,7 @@ func TestStartControllers(t *testing.T) {
 					t.Logf("failed to get http route %s: %v", route, err)
 					return false
 				}
-				require.Len(t, httpRoute.Spec.Rules, 2)
+				require.Len(t, httpRoute.Spec.Rules, 3) // 2 for backends, 1 for the default backend.
 				require.Len(t, httpRoute.Spec.Rules[0].Matches, 1)
 				require.Len(t, httpRoute.Spec.Rules[0].Matches[0].Headers, 1)
 				require.Equal(t, "x-envoy-ai-gateway-selected-backend", string(httpRoute.Spec.Rules[0].Matches[0].Headers[0].Name))
diff --git a/tests/e2e/e2e_test.go b/tests/e2e/e2e_test.go
index aca7adb8..a76c2bf3 100644
--- a/tests/e2e/e2e_test.go
+++ b/tests/e2e/e2e_test.go
@@ -6,10 +6,19 @@ import (
 	"bytes"
 	"context"
 	"fmt"
+	"net"
+	"net/http"
 	"os"
 	"os/exec"
 	"testing"
 	"time"
+
+	"github.com/stretchr/testify/require"
+)
+
+const (
+	egNamespace   = "envoy-gateway-system"
+	egDefaultPort = 10080
 )
 
 func initLog(msg string) {
@@ -18,6 +27,11 @@ func initLog(msg string) {
 
 func TestMain(m *testing.M) {
 	ctx, cancel := context.WithDeadline(context.Background(), time.Now().Add(5*time.Minute))
+
+	// The following code sets up the kind cluster, installs the Envoy Gateway, and installs the AI Gateway.
+	// They must be idempotent and can be run multiple times so that we can run the tests multiple times on
+	// failures.
+
 	if err := initKindCluster(ctx); err != nil {
 		cancel()
 		panic(err)
@@ -33,6 +47,11 @@ func TestMain(m *testing.M) {
 		panic(err)
 	}
 
+	if err := initTestupstream(ctx); err != nil {
+		cancel()
+		panic(err)
+	}
+
 	code := m.Run()
 	cancel()
 	os.Exit(code)
@@ -71,6 +90,7 @@ func initKindCluster(ctx context.Context) (err error) {
 	for _, image := range []string{
 		"ghcr.io/envoyproxy/ai-gateway/controller:latest",
 		"ghcr.io/envoyproxy/ai-gateway/extproc:latest",
+		"ghcr.io/envoyproxy/ai-gateway/testupstream:latest",
 	} {
 		cmd := exec.CommandContext(ctx, kindPath, "load", "docker-image", image, "--name", kindClusterName)
 		cmd.Stdout = os.Stdout
@@ -129,9 +149,29 @@ func initAIGateway(ctx context.Context) (err error) {
 	if err = helm.Run(); err != nil {
 		return
 	}
+	// Restart the controller to pick up the new changes in the AI Gateway.
+	initLog("\tRestart AI Gateway controller")
+	if err = kubectlRestartDeployment(ctx, "envoy-ai-gateway-system", "ai-gateway-controller"); err != nil {
+		return
+	}
 	return kubectlWaitForDeploymentReady("envoy-ai-gateway-system", "ai-gateway-controller")
 }
 
+func initTestupstream(ctx context.Context) (err error) {
+	initLog("Installing Test Upstream sever")
+	start := time.Now()
+	defer func() {
+		elapsed := time.Since(start)
+		initLog(fmt.Sprintf("\tdone (took %.2fs in total)\n", elapsed.Seconds()))
+	}()
+	initLog("\tapplying manifests")
+	if err = kubectlApplyManifest(ctx, "./init/testupstream/"); err != nil {
+		return
+	}
+	initLog("\t--- waiting for deployment")
+	return kubectlWaitForDeploymentReady("default", "testupstream")
+}
+
 func kubectl(ctx context.Context, args ...string) *exec.Cmd {
 	cmd := exec.CommandContext(ctx, "kubectl", args...)
 	cmd.Stdout = os.Stdout
@@ -144,6 +184,11 @@ func kubectlApplyManifest(ctx context.Context, manifest string) (err error) {
 	return cmd.Run()
 }
 
+func kubectlDeleteManifest(ctx context.Context, manifest string) (err error) {
+	cmd := kubectl(ctx, "delete", "-f", manifest)
+	return cmd.Run()
+}
+
 func kubectlRestartDeployment(ctx context.Context, namespace, deployment string) error {
 	cmd := kubectl(ctx, "rollout", "restart", "deployment/"+deployment, "-n", namespace)
 	return cmd.Run()
@@ -157,3 +202,82 @@ func kubectlWaitForDeploymentReady(namespace, deployment string) (err error) {
 	}
 	return
 }
+
+func requireWaitForPodReady(t *testing.T, namespace, labelSelector string) {
+	// This repeats the wait subcommand in order to be able to wait for the
+	// resources not created yet.
+	requireWaitForPodReadyWithTimeout(t, namespace, labelSelector, 3*time.Minute)
+}
+
+func requireWaitForPodReadyWithTimeout(t *testing.T, namespace, labelSelector string, timeout time.Duration) {
+	// This repeats the wait subcommand in order to be able to wait for the
+	// resources not created yet.
+	require.Eventually(t, func() bool {
+		cmd := kubectl(context.Background(), "wait", "--timeout=2s", "-n", namespace,
+			"pods", "--for=condition=Ready", "-l", labelSelector)
+		return cmd.Run() == nil
+	}, timeout, 5*time.Second)
+}
+
+func requireNewHTTPPortForwarder(t *testing.T, namespace string, selector string, port int) portForwarder {
+	f, err := newPodPortForwarder(context.Background(), namespace, selector, port)
+	require.NoError(t, err)
+	require.Eventually(t, func() bool {
+		conn, err := http.Get(f.address())
+		if err != nil {
+			t.Logf("error: %v", err)
+			return false
+		}
+		_ = conn.Body.Close()
+		return true // We don't care about the response.
+	}, 3*time.Minute, 200*time.Millisecond)
+	return f
+}
+
+// newPodPortForwarder creates a new local port forwarder for the namespace and selector.
+func newPodPortForwarder(ctx context.Context, namespace, selector string, podPort int) (f portForwarder, err error) {
+	l, err := net.Listen("tcp", "localhost:0")
+	if err != nil {
+		return portForwarder{}, fmt.Errorf("failed to get a local available port for Pod %q: %w", selector, err)
+	}
+	err = l.Close()
+	if err != nil {
+		return portForwarder{}, err
+	}
+	f.localPort = l.Addr().(*net.TCPAddr).Port
+
+	cmd := kubectl(ctx, "get", "pod", "-n", namespace,
+		"--selector="+selector, "-o", "jsonpath='{.items[0].metadata.name}'")
+	cmd.Stdout = nil // To ensure that we can capture the output by Output().
+	out, err := cmd.Output()
+	if err != nil {
+		return portForwarder{}, fmt.Errorf("failed to get service name: %w", err)
+	}
+	serviceName := string(out[1 : len(out)-1]) // Remove the quotes.
+
+	cmd = kubectl(ctx, "port-forward",
+		"-n", namespace, "pod/"+serviceName,
+		fmt.Sprintf("%d:%d", f.localPort, podPort),
+	)
+	if err := cmd.Start(); err != nil {
+		return portForwarder{}, fmt.Errorf("failed to start port-forward: %w", err)
+	}
+	f.cmd = cmd
+	return
+}
+
+// portForwarder is a local port forwarder to a pod.
+type portForwarder struct {
+	cmd       *exec.Cmd
+	localPort int
+}
+
+// kill stops the port forwarder.
+func (f portForwarder) kill() {
+	_ = f.cmd.Process.Kill()
+}
+
+// address returns the address of the port forwarder.
+func (f portForwarder) address() string {
+	return fmt.Sprintf("http://127.0.0.1:%d", f.localPort)
+}
diff --git a/tests/e2e/init/envoygateway/config.yaml b/tests/e2e/init/envoygateway/config.yaml
index 76310750..1adff5b1 100644
--- a/tests/e2e/init/envoygateway/config.yaml
+++ b/tests/e2e/init/envoygateway/config.yaml
@@ -36,28 +36,4 @@ data:
     extensionApis:
       enableEnvoyPatchPolicy: true
       enableBackend: true
-    extensionManager:
-      resources:
-      - group: aigateway.envoyproxy.io
-        version: v1alpha1
-        kind: AIGatewayRoute
-      # Envoy Gateway will watch these resource kinds and use them as extension policies
-      # which can be attached to Gateway resources.
-      policyResources:
-      - group: aigateway.envoyproxy.io
-        version: v1alpha1
-        kind: AIGatewayRoute
-      hooks:
-        # The type of hooks that should be invoked
-        xdsTranslator:
-          post:
-          - HTTPListener
-          - Route
-          - Translation
-      service:
-        # The service that is hosting the extension server
-        fqdn:
-          hostname: ai-gateway-controller.envoy-ai-gateway-system.svc.cluster.local
-          port: 1063
 ---
-
diff --git a/tests/e2e/init/testupstream/manifest.yaml b/tests/e2e/init/testupstream/manifest.yaml
new file mode 100644
index 00000000..42e56042
--- /dev/null
+++ b/tests/e2e/init/testupstream/manifest.yaml
@@ -0,0 +1,90 @@
+apiVersion: apps/v1
+kind: Deployment
+metadata:
+  name: testupstream
+  namespace: default
+spec:
+  replicas: 1
+  selector:
+    matchLabels:
+      app: testupstream
+  template:
+    metadata:
+      labels:
+        app: testupstream
+    spec:
+      containers:
+        - name: testupstream
+          image: ghcr.io/envoyproxy/ai-gateway/testupstream:latest
+          imagePullPolicy: IfNotPresent
+          ports:
+            - containerPort: 8080
+          env:
+            - name: TESTUPSTREAM_ID
+              value: primary
+          readinessProbe:
+            httpGet:
+              path: /health
+              port: 8080
+            initialDelaySeconds: 1
+            periodSeconds: 1
+---
+apiVersion: v1
+kind: Service
+metadata:
+  name: testupstream
+  namespace: default
+spec:
+  selector:
+    app: testupstream
+  ports:
+    - protocol: TCP
+      port: 80
+      targetPort: 8080
+  type: ClusterIP
+
+---
+apiVersion: apps/v1
+kind: Deployment
+metadata:
+  name: testupstream-canary
+  namespace: default
+spec:
+  replicas: 1
+  selector:
+    matchLabels:
+      app: testupstream-canary
+  template:
+    metadata:
+      labels:
+        app: testupstream-canary
+    spec:
+      containers:
+        - name: testupstream-canary
+          image: ghcr.io/envoyproxy/ai-gateway/testupstream:latest
+          imagePullPolicy: IfNotPresent
+          env:
+            - name: TESTUPSTREAM_ID
+              value: canary
+          ports:
+            - containerPort: 8080
+          readinessProbe:
+            httpGet:
+              path: /health
+              port: 8080
+            initialDelaySeconds: 1
+            periodSeconds: 1
+---
+apiVersion: v1
+kind: Service
+metadata:
+  name: testupstream-canary
+  namespace: default
+spec:
+  selector:
+    app: testupstream-canary
+  ports:
+    - protocol: TCP
+      port: 80
+      targetPort: 8080
+  type: ClusterIP
diff --git a/tests/e2e/testdata/translation_testupstream.yaml b/tests/e2e/testdata/translation_testupstream.yaml
new file mode 100644
index 00000000..94202820
--- /dev/null
+++ b/tests/e2e/testdata/translation_testupstream.yaml
@@ -0,0 +1,74 @@
+apiVersion: gateway.networking.k8s.io/v1
+kind: GatewayClass
+metadata:
+  name: translation-testupstream
+spec:
+  controllerName: gateway.envoyproxy.io/gatewayclass-controller
+---
+apiVersion: gateway.networking.k8s.io/v1
+kind: Gateway
+metadata:
+  name: translation-testupstream
+  namespace: default
+spec:
+  gatewayClassName: translation-testupstream
+  listeners:
+    - name: http
+      protocol: HTTP
+      port: 80
+---
+apiVersion: aigateway.envoyproxy.io/v1alpha1
+kind: AIGatewayRoute
+metadata:
+  name: translation-testupstream
+  namespace: default
+spec:
+  inputSchema:
+    schema: OpenAI
+  targetRefs:
+    - name: translation-testupstream
+      kind: Gateway
+      group: gateway.networking.k8s.io
+  rules:
+    - matches:
+        - headers:
+            - type: Exact
+              name: x-envoy-ai-gateway-model
+              value: some-cool-model
+      backendRefs:
+        - name: translation-testupstream-cool-model-backend
+          weight: 100
+    - matches:
+        - headers:
+            - type: Exact
+              name: x-envoy-ai-gateway-model
+              value: another-cool-model
+      backendRefs:
+        - name: translation-testupstream-another-cool-model-backend
+          weight: 100
+---
+apiVersion: aigateway.envoyproxy.io/v1alpha1
+kind: AIServiceBackend
+metadata:
+  name: translation-testupstream-cool-model-backend
+  namespace: default
+spec:
+  outputSchema:
+    schema: OpenAI
+  backendRef:
+    name: testupstream
+    kind: Service
+    port: 80
+---
+apiVersion: aigateway.envoyproxy.io/v1alpha1
+kind: AIServiceBackend
+metadata:
+  name: translation-testupstream-another-cool-model-backend
+  namespace: default
+spec:
+  outputSchema:
+    schema: AWSBedrock
+  backendRef:
+    name: testupstream-canary
+    kind: Service
+    port: 80
diff --git a/tests/e2e/translation_testupstream_test.go b/tests/e2e/translation_testupstream_test.go
new file mode 100644
index 00000000..b50e6310
--- /dev/null
+++ b/tests/e2e/translation_testupstream_test.go
@@ -0,0 +1,88 @@
+//go:build test_e2e
+
+package e2e
+
+import (
+	"context"
+	"encoding/base64"
+	"testing"
+	"time"
+
+	"github.com/openai/openai-go"
+	"github.com/openai/openai-go/option"
+	"github.com/stretchr/testify/require"
+)
+
+// TestTranslationWithTestUpstream tests the translation with the test upstream.
+func TestTranslationWithTestUpstream(t *testing.T) {
+	ctx, cancel := context.WithTimeout(context.Background(), 3*time.Minute)
+	defer cancel()
+
+	const manifest = "testdata/translation_testupstream.yaml"
+	require.NoError(t, kubectlApplyManifest(ctx, manifest))
+	defer func() {
+		// require.NoError(t, kubectlDeleteManifest(context.Background(), manifest))
+	}()
+
+	const egSelector = "gateway.envoyproxy.io/owning-gateway-name=translation-testupstream"
+	requireWaitForPodReady(t, egNamespace, egSelector)
+
+	fwd := requireNewHTTPPortForwarder(t, egNamespace, egSelector, egDefaultPort)
+	defer fwd.kill()
+
+	t.Run("/chat/completions", func(t *testing.T) {
+		for _, tc := range []struct {
+			name             string
+			modelName        string
+			expPath          string
+			fakeResponseBody string
+		}{
+			{
+				name:             "openai",
+				modelName:        "some-cool-model",
+				expPath:          "/v1/chat/completions",
+				fakeResponseBody: `{"choices":[{"message":{"content":"This is a test."}}]}`,
+			},
+			{
+				name:             "aws-bedrock",
+				modelName:        "another-cool-model",
+				expPath:          "/model/another-cool-model/converse",
+				fakeResponseBody: `{"output":{"message":{"content":[{"text":"response"},{"text":"from"},{"text":"assistant"}],"role":"assistant"}},"stopReason":null,"usage":{"inputTokens":10,"outputTokens":20,"totalTokens":30}}`,
+			},
+		} {
+			t.Run(tc.name, func(t *testing.T) {
+				require.Eventually(t, func() bool {
+					ctx, cancel := context.WithTimeout(context.Background(), 10*time.Second)
+					defer cancel()
+
+					t.Logf("modelName: %s", tc.modelName)
+					client := openai.NewClient(option.WithBaseURL(fwd.address()+"/v1/"),
+						option.WithHeader(
+							"x-expected-path", base64.StdEncoding.EncodeToString([]byte(tc.expPath))),
+						option.WithHeader("x-response-body",
+							base64.StdEncoding.EncodeToString([]byte(tc.fakeResponseBody)),
+						))
+
+					chatCompletion, err := client.Chat.Completions.New(ctx, openai.ChatCompletionNewParams{
+						Messages: openai.F([]openai.ChatCompletionMessageParamUnion{
+							openai.UserMessage("Say this is a test"),
+						}),
+						Model: openai.F(tc.modelName),
+					})
+					if err != nil {
+						t.Logf("error: %v", err)
+						return false
+					}
+					var choiceNonEmpty bool
+					for _, choice := range chatCompletion.Choices {
+						t.Logf("choice: %s", choice.Message.Content)
+						if choice.Message.Content != "" {
+							choiceNonEmpty = true
+						}
+					}
+					return choiceNonEmpty
+				}, 10*time.Second, 1*time.Second)
+			})
+		}
+	})
+}