diff --git a/controllers/object_controls.go b/controllers/object_controls.go
index b436bcab1..5171fddc1 100644
--- a/controllers/object_controls.go
+++ b/controllers/object_controls.go
@@ -3553,6 +3553,30 @@ func transformDriverContainer(obj *appsv1.DaemonSet, config *gpuv1.ClusterPolicy
 		}
 	}
 
+	// Mount /lib/modules for precompiled drivers on SUSE distributions.
+	// Those containers need access to host /lib/modules at runtime.
+	osID := getOSName(n.gpuNodeOSTag)
+	if config.Driver.UsePrecompiledDrivers() && (osID == "sles" || osID == "sl-micro") {
+		n.logger.Info("Mounting /lib/modules into the driver container")
+		libModulesVolMount := corev1.VolumeMount{
+			Name:      "lib-modules",
+			MountPath: "/run/host/lib/modules",
+			ReadOnly:  true,
+		}
+		driverContainer.VolumeMounts = append(driverContainer.VolumeMounts, libModulesVolMount)
+
+		libModulesVol := corev1.Volume{
+			Name: "lib-modules",
+			VolumeSource: corev1.VolumeSource{
+				HostPath: &corev1.HostPathVolumeSource{
+					Path: "/lib/modules",
+					Type: ptr.To(corev1.HostPathDirectory),
+				},
+			},
+		}
+		podSpec.Volumes = append(podSpec.Volumes, libModulesVol)
+	}
+
 	// no further repo configuration required when using pre-compiled drivers, return here.
 	if config.Driver.UsePrecompiledDrivers() {
 		return nil
@@ -3594,7 +3618,7 @@ func transformDriverContainer(obj *appsv1.DaemonSet, config *gpuv1.ClusterPolicy
 		}
 	}
 
-	osID := getOSName(n.gpuNodeOSTag)
+	osID = getOSName(n.gpuNodeOSTag)
 	// set up subscription entitlements for RHEL(using K8s with a non-CRIO runtime) and SLES
 	if (osID == "rhel" && n.openshift == "" && n.runtime != gpuv1.CRIO) || osID == "sles" || osID == "sl-micro" {
 		n.logger.Info("Mounting subscriptions into the driver container", "OS", osID)
diff --git a/controllers/object_controls_test.go b/controllers/object_controls_test.go
index f6df7340d..4a60d2162 100644
--- a/controllers/object_controls_test.go
+++ b/controllers/object_controls_test.go
@@ -1883,3 +1883,91 @@ func TestMIGManager(t *testing.T) {
 		})
 	}
 }
+
+// TestDriverPrecompiledLibModulesUbuntu tests that /lib/modules is NOT mounted for precompiled drivers on Ubuntu
+func TestDriverPrecompiledLibModulesUbuntu(t *testing.T) {
+	cp := getDriverTestInput("precompiled")
+	output := getDriverTestOutput("precompiled")
+
+	ds, err := testDaemonsetCommon(t, cp, "Driver", output["numDaemonsets"].(int))
+	if err != nil {
+		t.Fatalf("error in testDaemonsetCommon(): %v", err)
+	}
+	require.NotNil(t, ds)
+
+	// Check that /lib/modules volume and mount are NOT present
+	for _, vol := range ds.Spec.Template.Spec.Volumes {
+		require.NotEqual(t, "lib-modules", vol.Name, "lib-modules volume should not be present for ubuntu")
+	}
+
+	driverContainer := findContainerByName(ds.Spec.Template.Spec.Containers, "nvidia-driver-ctr")
+	require.NotNil(t, driverContainer)
+
+	for _, mount := range driverContainer.VolumeMounts {
+		require.NotEqual(t, "lib-modules", mount.Name, "lib-modules volume mount should not be present for ubuntu")
+	}
+
+	// Cleanup
+	err = removeState(&clusterPolicyController, clusterPolicyController.idx-1)
+	if err != nil {
+		t.Fatalf("error removing state %v:", err)
+	}
+	clusterPolicyController.idx--
+}
+
+// TestDriverPrecompiledLibModulesSuse tests that /lib/modules is mounted for precompiled drivers on SLES and SL-Micro
+func TestDriverPrecompiledLibModulesSuse(t *testing.T) {
+	osTags := []string{"sles16.0", "sl-micro6.1"}
+
+	for _, osTag := range osTags {
+		t.Run(osTag, func(t *testing.T) {
+			// Save original OS tag and restore after test
+			originalOSTag := clusterPolicyController.gpuNodeOSTag
+			defer func() {
+				clusterPolicyController.gpuNodeOSTag = originalOSTag
+			}()
+
+			clusterPolicyController.gpuNodeOSTag = osTag
+
+			cp := getDriverTestInput("precompiled")
+			output := getDriverTestOutput("precompiled")
+
+			ds, err := testDaemonsetCommon(t, cp, "Driver", output["numDaemonsets"].(int))
+			if err != nil {
+				t.Fatalf("error in testDaemonsetCommon(): %v", err)
+			}
+			require.NotNil(t, ds)
+
+			// Check for /lib/modules volume and mount
+			foundVolume := false
+			for _, vol := range ds.Spec.Template.Spec.Volumes {
+				if vol.Name == "lib-modules" {
+					foundVolume = true
+					require.NotNil(t, vol.HostPath)
+					require.Equal(t, "/lib/modules", vol.HostPath.Path)
+				}
+			}
+			require.Truef(t, foundVolume, "lib-modules volume not found for precompiled drivers on %s", osTag)
+
+			foundMount := false
+			driverContainer := findContainerByName(ds.Spec.Template.Spec.Containers, "nvidia-driver-ctr")
+			require.NotNil(t, driverContainer)
+
+			for _, mount := range driverContainer.VolumeMounts {
+				if mount.Name == "lib-modules" {
+					foundMount = true
+					require.Equal(t, "/run/host/lib/modules", mount.MountPath)
+					require.True(t, mount.ReadOnly)
+				}
+			}
+			require.Truef(t, foundMount, "lib-modules volume mount not found for precompiled drivers on %s", osTag)
+
+			// Cleanup
+			err = removeState(&clusterPolicyController, clusterPolicyController.idx-1)
+			if err != nil {
+				t.Fatalf("error removing state %v:", err)
+			}
+			clusterPolicyController.idx--
+		})
+	}
+}
diff --git a/internal/state/driver_volumes.go b/internal/state/driver_volumes.go
index c9e13b998..a1f59c94c 100644
--- a/internal/state/driver_volumes.go
+++ b/internal/state/driver_volumes.go
@@ -209,6 +209,29 @@ func (s *stateDriver) getDriverAdditionalConfigs(ctx context.Context, cr *v1alph
 				additionalCfgs.Volumes = append(additionalCfgs.Volumes, subscriptionVol)
 			}
 		}
+
+		// Mount /lib/modules for precompiled drivers on SUSE distributions.
+		// Those containers need access to host /lib/modules at runtime.
+		if cr.Spec.UsePrecompiledDrivers() && (pool.osRelease == "sles" || pool.osRelease == "sl-micro") {
+			logger.Info("Mounting /lib/modules into the driver container")
+			libModulesVolMount := corev1.VolumeMount{
+				Name:      "lib-modules",
+				MountPath: "/run/host/lib/modules",
+				ReadOnly:  true,
+			}
+			additionalCfgs.VolumeMounts = append(additionalCfgs.VolumeMounts, libModulesVolMount)
+
+			libModulesVol := corev1.Volume{
+				Name: "lib-modules",
+				VolumeSource: corev1.VolumeSource{
+					HostPath: &corev1.HostPathVolumeSource{
+						Path: "/lib/modules",
+						Type: ptr.To(corev1.HostPathDirectory),
+					},
+				},
+			}
+			additionalCfgs.Volumes = append(additionalCfgs.Volumes, libModulesVol)
+		}
 	}
 
 	// mount any custom kernel module configuration parameters at /drivers