diff --git a/CHANGELOG_PENDING.md b/CHANGELOG_PENDING.md
index 9403bdf3401..e9284a6a64e 100644
--- a/CHANGELOG_PENDING.md
+++ b/CHANGELOG_PENDING.md
@@ -1,5 +1,7 @@
 ### Improvements
 
+- Classloader: now supports dynamic exclusions of packages from system property.
+
 ### Bug Fixes
 
 - Fix HTML escaping after `{@literal ...}` blocks in Javadocs
\ No newline at end of file
diff --git a/pulumi b/pulumi
index 1416a34e69e..487b4a8494e 160000
--- a/pulumi
+++ b/pulumi
@@ -1 +1 @@
-Subproject commit 1416a34e69e6939b7e2ff1415e247a8ac52342de
+Subproject commit 487b4a8494ef556063aaf8335e6bad6317bb1072
diff --git a/sdk/java/pulumi/build.gradle b/sdk/java/pulumi/build.gradle
index 901d65d17ea..ece6630ae3b 100644
--- a/sdk/java/pulumi/build.gradle
+++ b/sdk/java/pulumi/build.gradle
@@ -121,8 +121,17 @@ sourceSets {
     }
 }
 
-test {
+task isolatedTest(type: Test) {
     useJUnitPlatform()
+
+    // Include only the specific test class you want to run in isolation
+    include '**/ResourcePackagesIsolatedTest.class'
+
+    // Fork a new JVM process for this specific test
+    forkEvery = 1
+    maxParallelForks = 1
+
+    // Set up test logging if needed
     testLogging {
         showStandardStreams = true
         exceptionFormat = 'full'
@@ -142,6 +151,36 @@ test {
     systemProperty 'java.util.logging.config.file', "${projectDir}/src/test/resources/logging.properties"
 }
 
+test {
+    useJUnitPlatform()
+
+    // Run general tests, excluding the isolated test
+    filter {
+        excludeTestsMatching "com.pulumi.serialization.internal.ResourcePackagesIsolatedTest"
+    }
+
+    testLogging {
+        showStandardStreams = true
+        exceptionFormat = 'full'
+
+        events = ['failed']
+
+        info {
+            events = ['failed', 'skipped']
+        }
+
+        debug {
+            events = ['started', 'skipped', 'failed']
+        }
+    }
+
+    systemProperty 'java.util.logging.config.file', "${projectDir}/src/test/resources/logging.properties"
+
+    // Ensure isolatedTest runs after the main tests
+    finalizedBy isolatedTest
+}
+
+
 def ossrhUsername = project.findProperty("ossrhUsername") ?: System.getenv("OSSRH_USERNAME")
 def ossrhPassword = project.findProperty("ossrhPassword") ?: System.getenv("OSSRH_PASSWORD")
 
diff --git a/sdk/java/pulumi/src/main/java/com/pulumi/serialization/internal/ResourcePackages.java b/sdk/java/pulumi/src/main/java/com/pulumi/serialization/internal/ResourcePackages.java
index 2bc119af858..197f7b9cd5f 100644
--- a/sdk/java/pulumi/src/main/java/com/pulumi/serialization/internal/ResourcePackages.java
+++ b/sdk/java/pulumi/src/main/java/com/pulumi/serialization/internal/ResourcePackages.java
@@ -158,7 +158,21 @@ private static boolean excludePackages(ClassInfo c) {
                 && !c.getPackageName().equals("net.bytebuddy")
                 && !c.getPackageName().startsWith("net.bytebuddy.")
                 && !c.getPackageName().startsWith(Resource.class.getPackageName())
-                && !c.getPackageName().startsWith(EngineGrpc.class.getPackageName());
+                && !c.getPackageName().startsWith(EngineGrpc.class.getPackageName())
+                && !excludePackagesFromProperties(c);
+    }
+
+    private static boolean excludePackagesFromProperties(ClassInfo c) {
+        String packages = System.getProperty("pulumi.resourcepackages.excludes");
+        if (packages != null) {
+            String[] items = packages.split(",");
+            for (String item: items){
+                if (c.getPackageName().startsWith(item)) {
+                    return true;
+                }
+            }
+        }
+        return false;
     }
 
     public ResourcePackages(Log log) {
diff --git a/sdk/java/pulumi/src/test/java/com/pulumi/serialization/internal/ResourcePackagesIsolatedTest.java b/sdk/java/pulumi/src/test/java/com/pulumi/serialization/internal/ResourcePackagesIsolatedTest.java
new file mode 100644
index 00000000000..238d3aad2bd
--- /dev/null
+++ b/sdk/java/pulumi/src/test/java/com/pulumi/serialization/internal/ResourcePackagesIsolatedTest.java
@@ -0,0 +1,46 @@
+package com.pulumi.serialization.internal;
+
+import com.pulumi.Log;
+import org.junit.jupiter.api.Test;
+import java.util.Optional;
+import com.pulumi.core.annotations.ResourceType;
+import com.pulumi.resources.ComponentResource;
+import com.pulumi.resources.ComponentResourceOptions;
+import com.pulumi.resources.Resource;
+import com.pulumi.resources.ResourceArgs;
+
+import javax.annotation.Nullable;
+
+import static org.assertj.core.api.Assertions.assertThat;
+import static org.assertj.core.api.Assertions.fail;
+
+
+
+public class ResourcePackagesIsolatedTest {
+
+    @Test
+    void ExcludedResource() {
+        try {
+            System.setProperty("pulumi.resourcepackages.excludes", ResourcePackagesIsolatedTest.ExcludedResource.class.getPackageName());
+            var resourcePackages = new ResourcePackages(Log.ignore());
+            Optional<Class<Resource>> resourceType = resourcePackages.tryGetResourceType("test-excludePackages:index/ExcludedResource", null);
+
+            if (resourceType.isPresent()) {
+                fail("Test resource was found");
+            } else {
+                assertThat(resourceType).isNotPresent();
+            }
+        } finally {
+            // Clear the system property after the test
+            System.clearProperty("pulumi.resourcepackages.excludes");
+        }
+    }
+
+    @ResourceType(type = "test-excludePackages:index/ExcludedResource")
+    private static class ExcludedResource extends ComponentResource {
+        public ExcludedResource(String type, String name, @Nullable ResourceArgs args, @Nullable ComponentResourceOptions options) {
+            super(type, name, args, options);
+        }
+    }
+
+}
diff --git a/sdk/java/pulumi/src/test/java/com/pulumi/serialization/internal/ResourcePackagesTest.java b/sdk/java/pulumi/src/test/java/com/pulumi/serialization/internal/ResourcePackagesTest.java
index d57dad630a2..cff02215526 100644
--- a/sdk/java/pulumi/src/test/java/com/pulumi/serialization/internal/ResourcePackagesTest.java
+++ b/sdk/java/pulumi/src/test/java/com/pulumi/serialization/internal/ResourcePackagesTest.java
@@ -122,4 +122,5 @@ public AComponentResource(String type, String name, @Nullable ResourceArgs args,
             super(type, name, args, options);
         }
     }
+
 }