diff --git a/pkg/cli/values/options.go b/pkg/cli/values/options.go
index cd65fa885..292feeb55 100644
--- a/pkg/cli/values/options.go
+++ b/pkg/cli/values/options.go
@@ -21,8 +21,10 @@ import (
 	"encoding/json"
 	"fmt"
 	"io"
+	"io/fs"
 	"net/url"
 	"os"
+	"path/filepath"
 	"strings"
 
 	"helm.sh/helm/v4/pkg/chart/v2/loader"
@@ -32,21 +34,74 @@ import (
 
 // Options captures the different ways to specify values
 type Options struct {
-	ValueFiles    []string // -f/--values
-	StringValues  []string // --set-string
-	Values        []string // --set
-	FileValues    []string // --set-file
-	JSONValues    []string // --set-json
-	LiteralValues []string // --set-literal
+	ValuesDirectories []string // -d / --values-directory
+	ValueFiles        []string // -f / --values
+	StringValues      []string //      --set-string
+	Values            []string //      --set
+	FileValues        []string //      --set-file
+	JSONValues        []string //      --set-json
+	LiteralValues     []string //      --set-literal
 }
 
-// MergeValues merges values from files specified via -f/--values and directly
-// via --set-json, --set, --set-string, or --set-file, marshaling them to YAML
-func (opts *Options) MergeValues(p getter.Providers) (map[string]interface{}, error) {
-	base := map[string]interface{}{}
+// MergeValues merges values from multiple sources according to Helm's precedence rules.
+//
+// The following list is ordered from lowest to highest precedence; items lower in the list override those above.
+// i.e., values from sources later in the list take precedence over earlier ones:
+//
+//  1. -d / --values-directory	: Values files from one or more directories.
+//  2. -f / --values			: Values files or URLs.
+//  3. --set-json				: Values provided as raw JSON.
+//  4. --set					: Inline key=value pairs.
+//  5. --set-string				: Inline key=value pairs (values always treated as strings).
+//  6. --set-file				: Values read from file contents.
+//  7. --set-literal			: Values provided as raw string literals.
+//
+// For example, if `captain=Luffy` is set via --values-directory (1) and `captain=Usopp` is set via --values (2), the
+// final merged value for `captain` will be "Usopp".
+//
+// ---
+//
+// In case any supported flag is specified multiple times, the latter occurrence has higher precedence, i.e. overrides
+// the former.
+//
+// For example, for `--set captain=Luffy --set captain=Usopp`, the final merged value for `captain` will be "Usopp".
+//
+// This applies to all values flags (-d/--values-directory, -f/--values, --set-json, --set, --set-string, --set-file,
+// and --set-literal).
+//
+// ---
+//
+// Additional context: The precedence of default values.
+//
+//   - By default, Helm reads values from the chart’s values.yaml file (if present).
+//   - These default values have the lowest precedence (level 0), meaning any values specified via the above-mentioned
+//     flags will override them.
+//   - If the same values.yaml file is explicitly provided using -f/--values, its values can override those loaded via
+//     -d/--values-directory. However, in that case, they are no longer considered default values.
+//
+// Note: Default values are not handled by this function, but understanding their precedence is important for the
+// overall behavior.
+func (opts *Options) MergeValues(p getter.Providers) (map[string]any, error) {
+	base := map[string]any{}
 
-	// User specified a values files via -f/--values
-	for _, filePath := range opts.ValueFiles {
+	var valuesFiles []string
+
+	// 1. User specified directory(s) via -d/--values-directory.
+	for _, dir := range opts.ValuesDirectories {
+		// Recursively find all .yaml files in the directory.
+		files, err := listYAMLFilesRecursively(dir)
+		if err != nil {
+			// Error is already wrapped.
+			return nil, err
+		}
+
+		valuesFiles = append(valuesFiles, files...)
+	}
+
+	// 2. User specified values files via -f/--values.
+	valuesFiles = append(valuesFiles, opts.ValueFiles...)
+
+	for _, filePath := range valuesFiles {
 		raw, err := readFile(filePath, p)
 		if err != nil {
 			return nil, err
@@ -59,12 +114,12 @@ func (opts *Options) MergeValues(p getter.Providers) (map[string]interface{}, er
 		base = loader.MergeMaps(base, currentMap)
 	}
 
-	// User specified a value via --set-json
+	// 3. User specified a value via --set-json.
 	for _, value := range opts.JSONValues {
 		trimmedValue := strings.TrimSpace(value)
 		if len(trimmedValue) > 0 && trimmedValue[0] == '{' {
 			// If value is JSON object format, parse it as map
-			var jsonMap map[string]interface{}
+			var jsonMap map[string]any
 			if err := json.Unmarshal([]byte(trimmedValue), &jsonMap); err != nil {
 				return nil, fmt.Errorf("failed parsing --set-json data JSON: %s", value)
 			}
@@ -77,23 +132,23 @@ func (opts *Options) MergeValues(p getter.Providers) (map[string]interface{}, er
 		}
 	}
 
-	// User specified a value via --set
+	// 4. User specified a value via --set.
 	for _, value := range opts.Values {
 		if err := strvals.ParseInto(value, base); err != nil {
 			return nil, fmt.Errorf("failed parsing --set data: %w", err)
 		}
 	}
 
-	// User specified a value via --set-string
+	// 5. User specified a value via --set-string.
 	for _, value := range opts.StringValues {
 		if err := strvals.ParseIntoString(value, base); err != nil {
 			return nil, fmt.Errorf("failed parsing --set-string data: %w", err)
 		}
 	}
 
-	// User specified a value via --set-file
+	// 6. User specified a value via --set-file.
 	for _, value := range opts.FileValues {
-		reader := func(rs []rune) (interface{}, error) {
+		reader := func(rs []rune) (any, error) {
 			bytes, err := readFile(string(rs), p)
 			if err != nil {
 				return nil, err
@@ -105,7 +160,7 @@ func (opts *Options) MergeValues(p getter.Providers) (map[string]interface{}, er
 		}
 	}
 
-	// User specified a value via --set-literal
+	// 7. User specified a value via --set-literal.
 	for _, value := range opts.LiteralValues {
 		if err := strvals.ParseLiteralInto(value, base); err != nil {
 			return nil, fmt.Errorf("failed parsing --set-literal data: %w", err)
@@ -136,3 +191,74 @@ func readFile(filePath string, p getter.Providers) ([]byte, error) {
 	}
 	return data.Bytes(), nil
 }
+
+// listYAMLFilesRecursively walks a directory tree and returns a lexicographically sorted list of all YAML files.
+//
+// Example: (dir="foo")
+//
+//		foo/
+//		├── bar/
+//		│    └── bar.yaml
+//		├── baz/
+//		│    ├── baz.yaml
+//		│    └── qux.yaml
+//		├── baz.txt
+//		└── foo.yaml
+//
+//	 Result: ["foo/bar/bar.yaml", "foo/baz/baz.yaml", "foo/baz/qux.yaml", "foo/foo.yaml"]
+func listYAMLFilesRecursively(dir string) ([]string, error) {
+	var files []string
+
+	// Check if the directory exists and is a directory.
+	info, err := os.Stat(dir)
+	if err != nil {
+		return nil, fmt.Errorf("failed to access values directory %q: %w", dir, err)
+	}
+	if !info.IsDir() {
+		return nil, fmt.Errorf("path %q is not a directory", dir)
+	}
+
+	// Walk the directory tree in lexical order. For the above example, this will visit:
+	// 1. foo/bar
+	// 2. foo/bar/bar.yaml
+	// 3. foo/baz
+	// 4. foo/baz/baz.yaml
+	// 5. foo/baz/qux.yaml
+	// 6. foo/baz.txt
+	// 7. foo/foo.yaml
+	//
+	// The inner function filters the “.yaml” files as follows:
+	// 1. foo/bar/bar.yaml
+	// 2. foo/baz/baz.yaml
+	// 3. foo/baz/qux.yaml
+	// 4. foo/foo.yaml
+	//
+	// Note: Since filepath.WalkDir walks in lexical order, the returned list of files is also sorted lexicographically.
+	err = filepath.WalkDir(dir, func(path string, d fs.DirEntry, err error) error {
+		if err != nil {
+			return fmt.Errorf("failed to walk directory %q: %w", path, err)
+		}
+
+		// Collect YAML files (.yaml or .yml, case-insensitive), skipping directories.
+		if !d.IsDir() && isYamlFileExtension(d.Name()) {
+			files = append(files, path)
+		}
+
+		return nil
+	})
+	if err != nil {
+		return nil, fmt.Errorf("failed to list files in directory %q: %w", dir, err)
+	}
+
+	return files, nil
+}
+
+// isYamlFileExtension checks if the given file name has a YAML file extension. It returns true for files ending with
+// .yaml or .yml (case-insensitive).
+func isYamlFileExtension(fileName string) bool {
+	// Extract file extension and convert to lower case for case-insensitive comparison.
+	ext := strings.ToLower(filepath.Ext(fileName))
+
+	// Check for .yaml or .yml extensions.
+	return ext == ".yaml" || ext == ".yml"
+}
diff --git a/pkg/cli/values/options_test.go b/pkg/cli/values/options_test.go
index fe1afc5d2..361d06156 100644
--- a/pkg/cli/values/options_test.go
+++ b/pkg/cli/values/options_test.go
@@ -298,7 +298,7 @@ func TestMergeValuesCLI(t *testing.T) {
 	tests := []struct {
 		name     string
 		opts     Options
-		expected map[string]interface{}
+		expected map[string]any
 		wantErr  bool
 	}{
 		{
@@ -306,8 +306,8 @@ func TestMergeValuesCLI(t *testing.T) {
 			opts: Options{
 				JSONValues: []string{`{"foo": {"bar": "baz"}}`},
 			},
-			expected: map[string]interface{}{
-				"foo": map[string]interface{}{
+			expected: map[string]any{
+				"foo": map[string]any{
 					"bar": "baz",
 				},
 			},
@@ -317,9 +317,9 @@ func TestMergeValuesCLI(t *testing.T) {
 			opts: Options{
 				JSONValues: []string{"foo.bar=[1,2,3]"},
 			},
-			expected: map[string]interface{}{
-				"foo": map[string]interface{}{
-					"bar": []interface{}{1.0, 2.0, 3.0},
+			expected: map[string]any{
+				"foo": map[string]any{
+					"bar": []any{1.0, 2.0, 3.0},
 				},
 			},
 		},
@@ -328,7 +328,7 @@ func TestMergeValuesCLI(t *testing.T) {
 			opts: Options{
 				Values: []string{"foo=bar"},
 			},
-			expected: map[string]interface{}{
+			expected: map[string]any{
 				"foo": "bar",
 			},
 		},
@@ -337,7 +337,7 @@ func TestMergeValuesCLI(t *testing.T) {
 			opts: Options{
 				StringValues: []string{"foo=123"},
 			},
-			expected: map[string]interface{}{
+			expected: map[string]any{
 				"foo": "123",
 			},
 		},
@@ -346,7 +346,7 @@ func TestMergeValuesCLI(t *testing.T) {
 			opts: Options{
 				LiteralValues: []string{"foo=true"},
 			},
-			expected: map[string]interface{}{
+			expected: map[string]any{
 				"foo": "true",
 			},
 		},
@@ -358,7 +358,7 @@ func TestMergeValuesCLI(t *testing.T) {
 				JSONValues:    []string{`{"c": "foo1"}`},
 				LiteralValues: []string{"d=bar1"},
 			},
-			expected: map[string]interface{}{
+			expected: map[string]any{
 				"a": "foo",
 				"b": "bar",
 				"c": "foo1",
@@ -372,6 +372,447 @@ func TestMergeValuesCLI(t *testing.T) {
 			},
 			wantErr: true,
 		},
+		{
+			// When the --values-directory (-d) flag is used, the given directory is scanned recursively for YAML files.
+			// If the directory doesn't exist, the function should:
+			// - Return a nil map and an error.
+			name: "missing values directory",
+			opts: Options{
+				// Set using flag -d / --values-directory (read values from YAML files in the specified directory).
+				ValuesDirectories: []string{
+					"testdata/one-piece-chart/values.d/no-such-directory",
+				},
+			},
+			// Directory doesn't exist, so expect a nil map.
+			expected: nil,
+			// Directory doesn't exist, so expect an error.
+			wantErr: true,
+		},
+		{
+			// When the --values-directory (-d) flag is used, the given directory is scanned recursively for YAML files.
+			// If the directory exists and contains no files, the function should:
+			// - Return an empty map.
+			// - No errors should occur.
+			name: "values directory without files",
+			opts: Options{
+				// Set using flag -d / --values-directory (read values from YAML files in the specified directory).
+				ValuesDirectories: []string{
+					"testdata/one-piece-chart/values.d/values-directory-without-files",
+				},
+			},
+			// No YAML files, so expect an empty map.
+			expected: map[string]any{},
+			// No error expected.
+			wantErr: false,
+		},
+		{
+			// When the --values-directory (-d) flag is used, the given directory is scanned recursively for YAML files.
+			// If the directory exists and contains only non-YAML files, the function should:
+			// - Return an empty map.
+			// - No errors should occur.
+			name: "values directory with only non-YAML files",
+			opts: Options{
+				// Set using flag -d / --values-directory (read values from YAML files in the specified directory).
+				ValuesDirectories: []string{
+					"testdata/one-piece-chart/values.d/values-directory-with-only-non-yaml-files",
+				},
+			},
+			expected: map[string]any{},
+			// No error expected.
+			wantErr: false,
+		},
+		{
+			// When the --values-directory (-d) flag is used, the given directory is scanned recursively for YAML files.
+			// If the directory exists and contains single YAML file, the function should:
+			// - Read and parse the YAML file.
+			// - Return the result map, which contains the key-value pairs from the file.
+			// - No errors should occur.
+			name: "values directory with single YAML file",
+			opts: Options{
+				// Set using flag -d / --values-directory (read values from YAML files in the specified directory).
+				ValuesDirectories: []string{
+					"testdata/one-piece-chart/values.d/values-directory-with-single-yaml-file",
+				},
+			},
+			expected: map[string]any{
+				// Field "alliances" is read from "alliances-law.yaml" file.
+				"alliances": []any{
+					map[string]any{
+						"name":    "Heart Pirates",
+						"captain": "Trafalgar D. Water Law",
+					},
+				},
+			},
+			// No error expected.
+			wantErr: false,
+		},
+		{
+			// When the --values-directory (-d) flag is used, the given directory is scanned recursively for YAML files.
+			// If the directory exists and contains one YAML file and one non-YAML file, the function should:
+			// - Read and parse the YAML file.
+			// - Return the result map, which contains the key-value pairs from the YAML file.
+			// - No errors should occur.
+			name: "values directory with one YAML file and one non-YAML file",
+			opts: Options{
+				// Set using flag -d / --values-directory (read values from YAML files in the specified directory).
+				ValuesDirectories: []string{
+					"testdata/one-piece-chart/values.d/values-directory-with-one-yaml-file-and-one-non-yaml-file",
+				},
+			},
+			expected: map[string]any{
+				// Field "ship" is read from "ship-thousand-sunny.yaml" file.
+				"ship": map[string]any{
+					"name":   "Thousand Sunny",
+					"status": "Active",
+					"speed":  "Fast",
+				},
+			},
+			// No error expected.
+			wantErr: false,
+		},
+		{
+			// When the --values-directory (-d) flag is used, the given directory is scanned recursively for YAML files.
+			// If the directory exists and contains multiple YAML files with no overlapping keys, the function should:
+			// - Read and parse all YAML files individually.
+			// - Merge the resulting key-value maps into a single map.
+			// - Return the merged map, where key-value pairs from all files are present, and none are overwritten
+			//   (since there is no overlap).
+			// - No errors should occur.
+			name: "values directory with multiple YAML files, without overlapping keys",
+			opts: Options{
+				// Set using flag -d / --values-directory (read values from YAML files in the specified directory).
+				ValuesDirectories: []string{
+					"testdata/one-piece-chart/values.d/" +
+						"values-directory-with-multiple-yaml-files-without-overlapping-keys",
+				},
+			},
+			expected: map[string]any{
+				// Field "alliances" is read from "alliances-kid.yaml".
+				"alliances": []any{
+					map[string]any{
+						"name":    "Kid Pirates",
+						"captain": "Eustass Kid",
+					},
+				},
+				// Field "ship" is read from "ship-going-merry.yaml".
+				"ship": map[string]any{
+					"name":   "Going Merry",
+					"status": "Destroyed",
+					"speed":  "Slow",
+				},
+			},
+			// No error expected.
+			wantErr: false,
+		},
+		{
+			// When the --values-directory (-d) flag is used, the given directory is scanned recursively for YAML files.
+			// If the directory exists and contains multiple YAML files with few overlapping keys, the function should:
+			// - Read and parse all YAML files individually.
+			// - Merge the resulting key-value maps into a single map.
+			// - Return the merged map, where key-value pairs from all files are present, and for overlapping keys, the
+			//   value from the last file (lexicographically) processed takes precedence (overwrites previous values).
+			// - No errors should occur.
+			name: "values directory with multiple YAML files, with few overlapping keys",
+			opts: Options{
+				// Set using flag -d / --values-directory (read values from YAML files in the specified directory).
+				ValuesDirectories: []string{
+					"testdata/one-piece-chart/values.d/" +
+						"values-directory-with-multiple-yaml-files-with-few-overlapping-keys",
+				},
+			},
+			expected: map[string]any{
+				"crew": []any{
+					map[string]any{
+						"name": "Monkey D. Luffy",
+						"role": "Captain",
+						// Field "bounty" is set to "30,000,000" in "1-crew-luffy-east-blue.yaml", and is overridden
+						// as "100,000,000" in "2-crew-luffy-alabasta.yaml".
+						"bounty":      "100,000,000",
+						"age":         float64(19),
+						"devil_fruit": "Gomu Gomu no Mi",
+					},
+				},
+			},
+			// No error expected.
+			wantErr: false,
+		},
+		{
+			// When the --values-directory (-d) flag is used, the given directory is scanned recursively for YAML files.
+			// If the directory exists and contains multiple YAML files with all overlapping keys, the function should:
+			// - Read and parse all YAML files individually.
+			// - Merge the resulting key-value maps into a single map.
+			// - Return the merged map, where key-value pairs from the last file (lexicographically) overwriting all
+			//   from previous files.
+			// - No errors should occur.
+			name: "values directory with multiple YAML files, with all overlapping keys",
+			opts: Options{
+				// Set using flag -d / --values-directory (read values from YAML files in the specified directory).
+				ValuesDirectories: []string{
+					"testdata/one-piece-chart/values.d/" +
+						"values-directory-with-multiple-yaml-files-with-all-overlapping-keys",
+				},
+			},
+			expected: map[string]any{
+				"ship": map[string]any{
+					// Field "name" is set to "Going Merry" in "ship-going-merry.yaml", and is overridden as
+					// "Thousand Sunny" in "ship-thousand-sunny.yaml".
+					"name": "Thousand Sunny",
+					// Field "status" is set to "Destroyed" in "ship-going-merry.yaml", and is overridden as
+					// "Active" in "ship-thousand-sunny.yaml".
+					"status": "Active",
+					// Field "speed" is set to "Slow" in "ship-going-merry.yaml", and is overridden as "Fast" in
+					// "ship-thousand-sunny.yaml".
+					"speed": "Fast",
+				},
+			},
+			// No error expected.
+			wantErr: false,
+		},
+		{
+			// When the --values-directory (-d) flag is used, the given directory is scanned recursively for YAML files.
+			// If the directory exists and nested directories and YAML files with no overlapping keys, the function
+			// should:
+			// - Read and parse all YAML files, from all levels, individually.
+			// - Merge the resulting key-value maps into a single map.
+			// - Return the merged map, where key-value pairs from all files are present, and none are overwritten
+			//   (since there is no overlap).
+			// - No errors should occur.
+			name: "values directory with nested directories and YAML files, without overlapping keys",
+			opts: Options{
+				// Set using flag -d / --values-directory (read values from YAML files in the specified directory).
+				ValuesDirectories: []string{
+					"testdata/one-piece-chart/values.d/" +
+						"values-directory-with-nested-directories-and-YAML-files-without-overlapping-keys",
+				},
+			},
+			expected: map[string]any{
+				// Field "crew" is read from "1-crew-luffy-east-blue.yaml".
+				"crew": []any{
+					map[string]any{
+						"name":        "Monkey D. Luffy",
+						"role":        "Captain",
+						"bounty":      "30,000,000",
+						"age":         float64(19),
+						"devil_fruit": "Gomu Gomu no Mi",
+					},
+				},
+				// Field "alliances" is read from "subdir/alliances-grandfleet.yaml".
+				"alliances": []any{
+					map[string]any{
+						"name":    "Straw Hat Grand Fleet",
+						"captain": "Various",
+					},
+				},
+			},
+			// No error expected.
+			wantErr: false,
+		},
+		{
+			// When the --values-directory (-d) flag is used, the given directory is scanned recursively for YAML files.
+			// If the directory exists and nested directories and YAML files with few overlapping keys, the function
+			// should:
+			// - Read and parse all YAML files, from all levels, individually.
+			// - Merge the resulting key-value maps into a single map.
+			// - Return the merged map, where key-value pairs from all files are present, and for overlapping keys, the
+			//   value from the last file (lexicographically) processed takes precedence (overwrites previous values).
+			// - No errors should occur.
+			name: "values directory with nested directories and YAML files, with few overlapping keys",
+			opts: Options{
+				// Set using flag -d / --values-directory (read values from YAML files in the specified directory).
+				ValuesDirectories: []string{
+					"testdata/one-piece-chart/values.d/" +
+						"values-directory-with-nested-directories-and-YAML-files-with-few-overlapping-keys",
+				},
+			},
+			expected: map[string]any{
+				"crew": []any{
+					map[string]any{
+						"name": "Monkey D. Luffy",
+						"role": "Captain",
+						// Field "bounty" is set to "30,000,000" in "1-crew-luffy-east-blue.yaml", and is overridden
+						// as "100,000,000" in "subdir/2-crew-luffy-alabasta.yaml".
+						"bounty":      "100,000,000",
+						"age":         float64(19),
+						"devil_fruit": "Gomu Gomu no Mi",
+					},
+				},
+			},
+			// No error expected.
+			wantErr: false,
+		},
+		{
+			// When the --values-directory (-d) flag is used, the given directory is scanned recursively for YAML files.
+			// If the directory exists and nested directories and YAML files with all overlapping keys, the function
+			// should:
+			// - Read and parse all YAML files, from all levels, individually.
+			// - Merge the resulting key-value maps into a single map.
+			// - Return the merged map, where key-value pairs from the last file (lexicographically) overwriting all
+			//   from previous files.
+			// - No errors should occur.
+			name: "values directory with nested directories and YAML files, with all overlapping keys",
+			opts: Options{
+				// Set using flag -d / --values-directory (read values from YAML files in the specified directory).
+				ValuesDirectories: []string{
+					"testdata/one-piece-chart/values.d/" +
+						"values-directory-with-nested-directories-and-YAML-files-with-all-overlapping-keys",
+				},
+			},
+			expected: map[string]any{
+				"ship": map[string]any{
+					// Field "name" is set to "Going Merry" in "ship-going-merry.yaml", and is overridden as
+					// "Thousand Sunny" in "subdir/ship-thousand-sunny.yaml".
+					"name": "Thousand Sunny",
+					// Field "status" is set to "Destroyed" in "ship-going-merry.yaml", and is overridden as
+					// "Active" in "subdir/ship-thousand-sunny.yaml".
+					"status": "Active",
+					// Field "speed" is set to "Slow" in "ship-going-merry.yaml", and is overridden as "Fast" in
+					// "subdir/ship-thousand-sunny.yaml".
+					"speed": "Fast",
+				},
+			},
+			// No error expected.
+			wantErr: false,
+		},
+		{
+			// When the --values-directory (-d) flag is used, the given directory is scanned recursively for YAML files
+			// with different extensions (case-insensitive). Ignore files with non-YAML extensions.
+			// If the directory exists and contains YAML files with different extensions (case-insensitive), the
+			// function should:
+			// - Read and parse all YAML files with different extensions (case-insensitive) individually. Ignore files
+			//   with non-YAML extensions.
+			// - Merge the resulting key-value maps into a single map.
+			// - Return the merged map, where key-value pairs from all files are present.
+			// - No errors should occur.
+			name: "values directory with multiple YAML files, with different extensions case-insensitive, " +
+				"ignore other files",
+			opts: Options{
+				// Set using flag -d / --values-directory (read values from YAML files in the specified directory).
+				ValuesDirectories: []string{
+					"testdata/one-piece-chart/values.d/" +
+						"values-directory-with-multiple-yaml-files-with-different-extensions-case-insensitive",
+				},
+			},
+			expected: map[string]any{
+				// Field "crew" is read from "1-crew-luffy-east-blue.YML".
+				"crew": []any{
+					map[string]any{
+						"name":        "Monkey D. Luffy",
+						"role":        "Captain",
+						"bounty":      "30,000,000",
+						"age":         float64(19),
+						"devil_fruit": "Gomu Gomu no Mi",
+					},
+				},
+				// Field "alliances" is read from "alliances-kid.yml".
+				"alliances": []any{
+					map[string]any{
+						"name":    "Kid Pirates",
+						"captain": "Eustass Kid",
+					},
+				},
+				// Field "ship" is read from "ship-going-merry.YAML".
+				"ship": map[string]any{
+					"name":   "Going Merry",
+					"status": "Destroyed",
+					"speed":  "Slow",
+				},
+			},
+			// No error expected.
+			wantErr: false,
+		},
+		{
+			// When the --values-directory (-d) flag is used to scan the directory recursively for YAML files, and the
+			// remaining input flags -f/--values, --set-string, --set, --set-file, --set-json, --set-literal are used to
+			// override values from the directory.
+			// If the directory exists and nested directories and YAML files with all overlapping keys, the function
+			// should:
+			// - Read and parse all YAML files, from all levels, individually.
+			// - Merge the resulting key-value maps into a single map.
+			// - Return the merged map, where key-value pairs from the last file (lexicographically) overwriting all
+			//   from previous files.
+			// - No errors should occur.
+			name: "values directory with YAML files, and values overridden via all other flags " +
+				"(-f/--values, --set-string, --set, --set-file, --set-json, --set-literal)",
+			opts: Options{
+				// Set using flag -d / --values-directory (read values from YAML files in the specified directory).
+				ValuesDirectories: []string{
+					"testdata/one-piece-chart/values.d/" +
+						"values-directory-with-YAML-files-and-values-overridden-via-all-other-flags",
+				},
+
+				// Set using flag -f / --values (read values from the specified YAML file).
+				ValueFiles: []string{
+					"testdata/one-piece-chart/values.d/shared-values/alliances-kid.yaml",
+				},
+
+				// Set using flag --set-string (inline string key=value pairs, value must be a string).
+				StringValues: []string{
+					"crew[0].role=Legendary Captain",
+				},
+
+				// Set using flag --set (inline key=value pairs, value type is inferred).
+				Values: []string{
+					// String value "ship.name" will be overridden via --set.
+					"ship.name=Going Merry",
+					// Integer value "crew[0].age" will be overridden via --set.
+					"crew[0].age=20",
+				},
+
+				// Set using flag --set-file (read value from specified file).
+				FileValues: []string{
+					"crew[0].devil_fruit=testdata/one-piece-chart/values.d/shared-values/devil-fruit.txt",
+				},
+
+				// Set using flag --set-json (parse JSON string for value).
+				JSONValues: []string{
+					`ship.status={"condition":"Destroyed","where":"Enies Lobby"}`,
+				},
+
+				// Set using flag --set-literal (force literal string value, even if it is parsable to any other type).
+				LiteralValues: []string{
+					// String value "ship.speed" will be overridden via --set-literal.
+					"ship.speed=Slow",
+					// Integer value "crew[0].bounty" will be overridden via --set-literal.
+					// Note: --set-literal treats numbers as strings.
+					"crew[0].bounty=1,500,000,000",
+				},
+			},
+			expected: map[string]any{
+				"alliances": []any{ // Added via -f / --values.
+					map[string]any{
+						"captain": "Eustass Kid",
+						"name":    "Kid Pirates",
+					},
+				},
+				"crew": []any{
+					map[string]any{
+						"name": "Monkey D. Luffy",
+						// Field "role" is overridden by --set-string.
+						"role": "Legendary Captain",
+						// Field "bounty" is overridden by --set-literal.
+						"bounty": "1,500,000,000",
+						// Field "devil_fruit" is overridden by --set-file.
+						"devil_fruit": "Hito Hito no Mi",
+						// Field "age" is overridden by --set.
+						// Note: --set treats numbers as int64.
+						"age": int64(20),
+					},
+				},
+				"ship": map[string]any{
+					// Field "name" is overridden by --set.
+					"name": "Going Merry",
+					// Field "status" is overridden by --set-json.
+					"status": map[string]any{
+						"condition": "Destroyed",
+						"where":     "Enies Lobby",
+					},
+					// Field "speed" is overridden by --set-literal.
+					"speed": "Slow",
+				},
+			},
+			// No error expected.
+			wantErr: false,
+		},
 	}
 
 	for _, tt := range tests {
diff --git a/pkg/cli/values/testdata/one-piece-chart/Chart.yaml b/pkg/cli/values/testdata/one-piece-chart/Chart.yaml
new file mode 100644
index 000000000..b637cc812
--- /dev/null
+++ b/pkg/cli/values/testdata/one-piece-chart/Chart.yaml
@@ -0,0 +1,6 @@
+apiVersion: v2
+name: onepiece-novals
+description: Helm chart for testing --values-directory precedence with no defaults
+type: application
+version: 0.1.0
+appVersion: "1.0"
diff --git a/pkg/cli/values/testdata/one-piece-chart/templates/NOTES.txt b/pkg/cli/values/testdata/one-piece-chart/templates/NOTES.txt
new file mode 100644
index 000000000..385e1e1be
--- /dev/null
+++ b/pkg/cli/values/testdata/one-piece-chart/templates/NOTES.txt
@@ -0,0 +1,3 @@
+Values merged into this release:
+
+  kubectl get cm {{ include "onepiece-novals.fullname" . }}-values -o yaml
diff --git a/pkg/cli/values/testdata/one-piece-chart/templates/_helpers.tpl b/pkg/cli/values/testdata/one-piece-chart/templates/_helpers.tpl
new file mode 100644
index 000000000..d40237d6f
--- /dev/null
+++ b/pkg/cli/values/testdata/one-piece-chart/templates/_helpers.tpl
@@ -0,0 +1,3 @@
+{{- define "onepiece-novals.fullname" -}}
+{{- printf "%s" .Release.Name | trunc 63 | trimSuffix "-" -}}
+{{- end -}}
diff --git a/pkg/cli/values/testdata/one-piece-chart/templates/configmap.yaml b/pkg/cli/values/testdata/one-piece-chart/templates/configmap.yaml
new file mode 100644
index 000000000..b0d77b787
--- /dev/null
+++ b/pkg/cli/values/testdata/one-piece-chart/templates/configmap.yaml
@@ -0,0 +1,7 @@
+apiVersion: v1
+kind: ConfigMap
+metadata:
+  name: {{ include "onepiece-novals.fullname" . }}-values
+data:
+  merged-values.yaml: |
+{{ toYaml .Values | indent 4 }}
diff --git a/pkg/cli/values/testdata/one-piece-chart/templates/deployment.yaml b/pkg/cli/values/testdata/one-piece-chart/templates/deployment.yaml
new file mode 100644
index 000000000..e752e9710
--- /dev/null
+++ b/pkg/cli/values/testdata/one-piece-chart/templates/deployment.yaml
@@ -0,0 +1,36 @@
+apiVersion: apps/v1
+kind: Deployment
+metadata:
+  name: {{ include "one-piece-chart.fullname" . }}-app
+spec:
+  replicas: 1
+  selector:
+    matchLabels:
+      app: {{ include "one-piece-chart.fullname" . }}
+  template:
+    metadata:
+      labels:
+        app: {{ include "one-piece-chart.fullname" . }}
+    spec:
+      containers:
+        - name: onepiece-container
+          image: alpine:3.18
+          command: ["/bin/sh", "-c"]
+          args:
+            - |
+              echo "Mounted bounty files at /bounties:"
+              for f in /bounties/*.yaml; do
+                [ -e "$f" ] || continue
+                echo "---"
+                echo "Member: $(basename "$f" .yaml)"
+                cat "$f"
+              done
+              sleep 3600
+          volumeMounts:
+            - name: crew-bounties
+              mountPath: /bounties
+              readOnly: true
+      volumes:
+        - name: crew-bounties
+          configMap:
+            name: {{ include "one-piece-chart.fullname" . }}-crew
diff --git a/pkg/cli/values/testdata/one-piece-chart/values.d/shared-values/1-crew-luffy-east-blue.yaml b/pkg/cli/values/testdata/one-piece-chart/values.d/shared-values/1-crew-luffy-east-blue.yaml
new file mode 100644
index 000000000..4fc7fb565
--- /dev/null
+++ b/pkg/cli/values/testdata/one-piece-chart/values.d/shared-values/1-crew-luffy-east-blue.yaml
@@ -0,0 +1,6 @@
+crew:
+  - name: "Monkey D. Luffy"
+    role: "Captain"
+    bounty: "30,000,000"
+    age: 19
+    devil_fruit: "Gomu Gomu no Mi"
diff --git a/pkg/cli/values/testdata/one-piece-chart/values.d/shared-values/2-crew-luffy-alabasta.yaml b/pkg/cli/values/testdata/one-piece-chart/values.d/shared-values/2-crew-luffy-alabasta.yaml
new file mode 100644
index 000000000..eeda89370
--- /dev/null
+++ b/pkg/cli/values/testdata/one-piece-chart/values.d/shared-values/2-crew-luffy-alabasta.yaml
@@ -0,0 +1,6 @@
+crew:
+  - name: "Monkey D. Luffy"
+    role: "Captain"
+    bounty: "100,000,000"
+    age: 19
+    devil_fruit: "Gomu Gomu no Mi"
diff --git a/pkg/cli/values/testdata/one-piece-chart/values.d/shared-values/alliances-grandfleet.yaml b/pkg/cli/values/testdata/one-piece-chart/values.d/shared-values/alliances-grandfleet.yaml
new file mode 100644
index 000000000..ac02b9390
--- /dev/null
+++ b/pkg/cli/values/testdata/one-piece-chart/values.d/shared-values/alliances-grandfleet.yaml
@@ -0,0 +1,3 @@
+alliances:
+  - name: "Straw Hat Grand Fleet"
+    captain: "Various"
diff --git a/pkg/cli/values/testdata/one-piece-chart/values.d/shared-values/alliances-kid.yaml b/pkg/cli/values/testdata/one-piece-chart/values.d/shared-values/alliances-kid.yaml
new file mode 100644
index 000000000..3072ba3ce
--- /dev/null
+++ b/pkg/cli/values/testdata/one-piece-chart/values.d/shared-values/alliances-kid.yaml
@@ -0,0 +1,3 @@
+alliances:
+  - name: "Kid Pirates"
+    captain: "Eustass Kid"
diff --git a/pkg/cli/values/testdata/one-piece-chart/values.d/shared-values/alliances-law.yaml b/pkg/cli/values/testdata/one-piece-chart/values.d/shared-values/alliances-law.yaml
new file mode 100644
index 000000000..114127db8
--- /dev/null
+++ b/pkg/cli/values/testdata/one-piece-chart/values.d/shared-values/alliances-law.yaml
@@ -0,0 +1,3 @@
+alliances:
+  - name: "Heart Pirates"
+    captain: "Trafalgar D. Water Law"
diff --git a/pkg/cli/values/testdata/one-piece-chart/values.d/shared-values/devil-fruit.txt b/pkg/cli/values/testdata/one-piece-chart/values.d/shared-values/devil-fruit.txt
new file mode 100644
index 000000000..d866a771e
--- /dev/null
+++ b/pkg/cli/values/testdata/one-piece-chart/values.d/shared-values/devil-fruit.txt
@@ -0,0 +1 @@
+Hito Hito no Mi
\ No newline at end of file
diff --git a/pkg/cli/values/testdata/one-piece-chart/values.d/shared-values/ignore.md b/pkg/cli/values/testdata/one-piece-chart/values.d/shared-values/ignore.md
new file mode 100644
index 000000000..5dc029801
--- /dev/null
+++ b/pkg/cli/values/testdata/one-piece-chart/values.d/shared-values/ignore.md
@@ -0,0 +1,4 @@
+# This will be ignored anyway.
+ship:
+  name: "Polar Tang"
+  status: "Active"
diff --git a/pkg/cli/values/testdata/one-piece-chart/values.d/shared-values/ship-going-merry.yaml b/pkg/cli/values/testdata/one-piece-chart/values.d/shared-values/ship-going-merry.yaml
new file mode 100644
index 000000000..0b3ec4d6f
--- /dev/null
+++ b/pkg/cli/values/testdata/one-piece-chart/values.d/shared-values/ship-going-merry.yaml
@@ -0,0 +1,4 @@
+ship:
+  name: "Going Merry"
+  status: "Destroyed"
+  speed: "Slow"
diff --git a/pkg/cli/values/testdata/one-piece-chart/values.d/shared-values/ship-thousand-sunny.yaml b/pkg/cli/values/testdata/one-piece-chart/values.d/shared-values/ship-thousand-sunny.yaml
new file mode 100644
index 000000000..aaaf2e7b8
--- /dev/null
+++ b/pkg/cli/values/testdata/one-piece-chart/values.d/shared-values/ship-thousand-sunny.yaml
@@ -0,0 +1,4 @@
+ship:
+  name: "Thousand Sunny"
+  status: "Active"
+  speed: "Fast"
diff --git a/pkg/cli/values/testdata/one-piece-chart/values.d/values-directory-with-YAML-files-and-values-overridden-via-all-other-flags/1-crew-luffy-east-blue.yaml b/pkg/cli/values/testdata/one-piece-chart/values.d/values-directory-with-YAML-files-and-values-overridden-via-all-other-flags/1-crew-luffy-east-blue.yaml
new file mode 120000
index 000000000..80636c148
--- /dev/null
+++ b/pkg/cli/values/testdata/one-piece-chart/values.d/values-directory-with-YAML-files-and-values-overridden-via-all-other-flags/1-crew-luffy-east-blue.yaml
@@ -0,0 +1 @@
+../shared-values/1-crew-luffy-east-blue.yaml
\ No newline at end of file
diff --git a/pkg/cli/values/testdata/one-piece-chart/values.d/values-directory-with-YAML-files-and-values-overridden-via-all-other-flags/alliances-law.yaml b/pkg/cli/values/testdata/one-piece-chart/values.d/values-directory-with-YAML-files-and-values-overridden-via-all-other-flags/alliances-law.yaml
new file mode 120000
index 000000000..7bdb74f6f
--- /dev/null
+++ b/pkg/cli/values/testdata/one-piece-chart/values.d/values-directory-with-YAML-files-and-values-overridden-via-all-other-flags/alliances-law.yaml
@@ -0,0 +1 @@
+../shared-values/alliances-law.yaml
\ No newline at end of file
diff --git a/pkg/cli/values/testdata/one-piece-chart/values.d/values-directory-with-YAML-files-and-values-overridden-via-all-other-flags/ship-thousand-sunny.yaml b/pkg/cli/values/testdata/one-piece-chart/values.d/values-directory-with-YAML-files-and-values-overridden-via-all-other-flags/ship-thousand-sunny.yaml
new file mode 120000
index 000000000..ffd956da0
--- /dev/null
+++ b/pkg/cli/values/testdata/one-piece-chart/values.d/values-directory-with-YAML-files-and-values-overridden-via-all-other-flags/ship-thousand-sunny.yaml
@@ -0,0 +1 @@
+../shared-values/ship-thousand-sunny.yaml
\ No newline at end of file
diff --git a/pkg/cli/values/testdata/one-piece-chart/values.d/values-directory-with-multiple-yaml-files-with-all-overlapping-keys/ship-going-merry.yaml b/pkg/cli/values/testdata/one-piece-chart/values.d/values-directory-with-multiple-yaml-files-with-all-overlapping-keys/ship-going-merry.yaml
new file mode 120000
index 000000000..2ed4b40be
--- /dev/null
+++ b/pkg/cli/values/testdata/one-piece-chart/values.d/values-directory-with-multiple-yaml-files-with-all-overlapping-keys/ship-going-merry.yaml
@@ -0,0 +1 @@
+../shared-values/ship-going-merry.yaml
\ No newline at end of file
diff --git a/pkg/cli/values/testdata/one-piece-chart/values.d/values-directory-with-multiple-yaml-files-with-all-overlapping-keys/ship-thousand-sunny.yaml b/pkg/cli/values/testdata/one-piece-chart/values.d/values-directory-with-multiple-yaml-files-with-all-overlapping-keys/ship-thousand-sunny.yaml
new file mode 120000
index 000000000..ffd956da0
--- /dev/null
+++ b/pkg/cli/values/testdata/one-piece-chart/values.d/values-directory-with-multiple-yaml-files-with-all-overlapping-keys/ship-thousand-sunny.yaml
@@ -0,0 +1 @@
+../shared-values/ship-thousand-sunny.yaml
\ No newline at end of file
diff --git a/pkg/cli/values/testdata/one-piece-chart/values.d/values-directory-with-multiple-yaml-files-with-different-extensions-case-insensitive/1-crew-luffy-east-blue.YML b/pkg/cli/values/testdata/one-piece-chart/values.d/values-directory-with-multiple-yaml-files-with-different-extensions-case-insensitive/1-crew-luffy-east-blue.YML
new file mode 120000
index 000000000..80636c148
--- /dev/null
+++ b/pkg/cli/values/testdata/one-piece-chart/values.d/values-directory-with-multiple-yaml-files-with-different-extensions-case-insensitive/1-crew-luffy-east-blue.YML
@@ -0,0 +1 @@
+../shared-values/1-crew-luffy-east-blue.yaml
\ No newline at end of file
diff --git a/pkg/cli/values/testdata/one-piece-chart/values.d/values-directory-with-multiple-yaml-files-with-different-extensions-case-insensitive/alliances-kid.yml b/pkg/cli/values/testdata/one-piece-chart/values.d/values-directory-with-multiple-yaml-files-with-different-extensions-case-insensitive/alliances-kid.yml
new file mode 120000
index 000000000..8449d354a
--- /dev/null
+++ b/pkg/cli/values/testdata/one-piece-chart/values.d/values-directory-with-multiple-yaml-files-with-different-extensions-case-insensitive/alliances-kid.yml
@@ -0,0 +1 @@
+../shared-values/alliances-kid.yaml
\ No newline at end of file
diff --git a/pkg/cli/values/testdata/one-piece-chart/values.d/values-directory-with-multiple-yaml-files-with-different-extensions-case-insensitive/ignore.md b/pkg/cli/values/testdata/one-piece-chart/values.d/values-directory-with-multiple-yaml-files-with-different-extensions-case-insensitive/ignore.md
new file mode 120000
index 000000000..96ca2481c
--- /dev/null
+++ b/pkg/cli/values/testdata/one-piece-chart/values.d/values-directory-with-multiple-yaml-files-with-different-extensions-case-insensitive/ignore.md
@@ -0,0 +1 @@
+../shared-values/ignore.md
\ No newline at end of file
diff --git a/pkg/cli/values/testdata/one-piece-chart/values.d/values-directory-with-multiple-yaml-files-with-different-extensions-case-insensitive/ship-going-merry.YAML b/pkg/cli/values/testdata/one-piece-chart/values.d/values-directory-with-multiple-yaml-files-with-different-extensions-case-insensitive/ship-going-merry.YAML
new file mode 120000
index 000000000..2ed4b40be
--- /dev/null
+++ b/pkg/cli/values/testdata/one-piece-chart/values.d/values-directory-with-multiple-yaml-files-with-different-extensions-case-insensitive/ship-going-merry.YAML
@@ -0,0 +1 @@
+../shared-values/ship-going-merry.yaml
\ No newline at end of file
diff --git a/pkg/cli/values/testdata/one-piece-chart/values.d/values-directory-with-multiple-yaml-files-with-few-overlapping-keys/1-crew-luffy-east-blue.yaml b/pkg/cli/values/testdata/one-piece-chart/values.d/values-directory-with-multiple-yaml-files-with-few-overlapping-keys/1-crew-luffy-east-blue.yaml
new file mode 120000
index 000000000..80636c148
--- /dev/null
+++ b/pkg/cli/values/testdata/one-piece-chart/values.d/values-directory-with-multiple-yaml-files-with-few-overlapping-keys/1-crew-luffy-east-blue.yaml
@@ -0,0 +1 @@
+../shared-values/1-crew-luffy-east-blue.yaml
\ No newline at end of file
diff --git a/pkg/cli/values/testdata/one-piece-chart/values.d/values-directory-with-multiple-yaml-files-with-few-overlapping-keys/2-crew-luffy-alabasta.yaml b/pkg/cli/values/testdata/one-piece-chart/values.d/values-directory-with-multiple-yaml-files-with-few-overlapping-keys/2-crew-luffy-alabasta.yaml
new file mode 120000
index 000000000..dd574823c
--- /dev/null
+++ b/pkg/cli/values/testdata/one-piece-chart/values.d/values-directory-with-multiple-yaml-files-with-few-overlapping-keys/2-crew-luffy-alabasta.yaml
@@ -0,0 +1 @@
+../shared-values/2-crew-luffy-alabasta.yaml
\ No newline at end of file
diff --git a/pkg/cli/values/testdata/one-piece-chart/values.d/values-directory-with-multiple-yaml-files-without-overlapping-keys/alliances-kid.yaml b/pkg/cli/values/testdata/one-piece-chart/values.d/values-directory-with-multiple-yaml-files-without-overlapping-keys/alliances-kid.yaml
new file mode 120000
index 000000000..8449d354a
--- /dev/null
+++ b/pkg/cli/values/testdata/one-piece-chart/values.d/values-directory-with-multiple-yaml-files-without-overlapping-keys/alliances-kid.yaml
@@ -0,0 +1 @@
+../shared-values/alliances-kid.yaml
\ No newline at end of file
diff --git a/pkg/cli/values/testdata/one-piece-chart/values.d/values-directory-with-multiple-yaml-files-without-overlapping-keys/ship-going-merry.yaml b/pkg/cli/values/testdata/one-piece-chart/values.d/values-directory-with-multiple-yaml-files-without-overlapping-keys/ship-going-merry.yaml
new file mode 120000
index 000000000..2ed4b40be
--- /dev/null
+++ b/pkg/cli/values/testdata/one-piece-chart/values.d/values-directory-with-multiple-yaml-files-without-overlapping-keys/ship-going-merry.yaml
@@ -0,0 +1 @@
+../shared-values/ship-going-merry.yaml
\ No newline at end of file
diff --git a/pkg/cli/values/testdata/one-piece-chart/values.d/values-directory-with-nested-directories-and-YAML-files-with-all-overlapping-keys/ship-going-merry.yaml b/pkg/cli/values/testdata/one-piece-chart/values.d/values-directory-with-nested-directories-and-YAML-files-with-all-overlapping-keys/ship-going-merry.yaml
new file mode 120000
index 000000000..2ed4b40be
--- /dev/null
+++ b/pkg/cli/values/testdata/one-piece-chart/values.d/values-directory-with-nested-directories-and-YAML-files-with-all-overlapping-keys/ship-going-merry.yaml
@@ -0,0 +1 @@
+../shared-values/ship-going-merry.yaml
\ No newline at end of file
diff --git a/pkg/cli/values/testdata/one-piece-chart/values.d/values-directory-with-nested-directories-and-YAML-files-with-all-overlapping-keys/subdir/ship-thousand-sunny.yaml b/pkg/cli/values/testdata/one-piece-chart/values.d/values-directory-with-nested-directories-and-YAML-files-with-all-overlapping-keys/subdir/ship-thousand-sunny.yaml
new file mode 120000
index 000000000..b57062c7e
--- /dev/null
+++ b/pkg/cli/values/testdata/one-piece-chart/values.d/values-directory-with-nested-directories-and-YAML-files-with-all-overlapping-keys/subdir/ship-thousand-sunny.yaml
@@ -0,0 +1 @@
+../../shared-values/ship-thousand-sunny.yaml
\ No newline at end of file
diff --git a/pkg/cli/values/testdata/one-piece-chart/values.d/values-directory-with-nested-directories-and-YAML-files-with-few-overlapping-keys/1-crew-luffy-east-blue.yaml b/pkg/cli/values/testdata/one-piece-chart/values.d/values-directory-with-nested-directories-and-YAML-files-with-few-overlapping-keys/1-crew-luffy-east-blue.yaml
new file mode 120000
index 000000000..80636c148
--- /dev/null
+++ b/pkg/cli/values/testdata/one-piece-chart/values.d/values-directory-with-nested-directories-and-YAML-files-with-few-overlapping-keys/1-crew-luffy-east-blue.yaml
@@ -0,0 +1 @@
+../shared-values/1-crew-luffy-east-blue.yaml
\ No newline at end of file
diff --git a/pkg/cli/values/testdata/one-piece-chart/values.d/values-directory-with-nested-directories-and-YAML-files-with-few-overlapping-keys/subdir/2-crew-luffy-alabasta.yaml b/pkg/cli/values/testdata/one-piece-chart/values.d/values-directory-with-nested-directories-and-YAML-files-with-few-overlapping-keys/subdir/2-crew-luffy-alabasta.yaml
new file mode 120000
index 000000000..1e50b01c3
--- /dev/null
+++ b/pkg/cli/values/testdata/one-piece-chart/values.d/values-directory-with-nested-directories-and-YAML-files-with-few-overlapping-keys/subdir/2-crew-luffy-alabasta.yaml
@@ -0,0 +1 @@
+../../shared-values/2-crew-luffy-alabasta.yaml
\ No newline at end of file
diff --git a/pkg/cli/values/testdata/one-piece-chart/values.d/values-directory-with-nested-directories-and-YAML-files-without-overlapping-keys/1-crew-luffy-east-blue.yaml b/pkg/cli/values/testdata/one-piece-chart/values.d/values-directory-with-nested-directories-and-YAML-files-without-overlapping-keys/1-crew-luffy-east-blue.yaml
new file mode 120000
index 000000000..80636c148
--- /dev/null
+++ b/pkg/cli/values/testdata/one-piece-chart/values.d/values-directory-with-nested-directories-and-YAML-files-without-overlapping-keys/1-crew-luffy-east-blue.yaml
@@ -0,0 +1 @@
+../shared-values/1-crew-luffy-east-blue.yaml
\ No newline at end of file
diff --git a/pkg/cli/values/testdata/one-piece-chart/values.d/values-directory-with-nested-directories-and-YAML-files-without-overlapping-keys/subdir/alliances-grandfleet.yaml b/pkg/cli/values/testdata/one-piece-chart/values.d/values-directory-with-nested-directories-and-YAML-files-without-overlapping-keys/subdir/alliances-grandfleet.yaml
new file mode 120000
index 000000000..c0e22f871
--- /dev/null
+++ b/pkg/cli/values/testdata/one-piece-chart/values.d/values-directory-with-nested-directories-and-YAML-files-without-overlapping-keys/subdir/alliances-grandfleet.yaml
@@ -0,0 +1 @@
+../../shared-values/alliances-grandfleet.yaml
\ No newline at end of file
diff --git a/pkg/cli/values/testdata/one-piece-chart/values.d/values-directory-with-one-yaml-file-and-one-non-yaml-file/ignore.md b/pkg/cli/values/testdata/one-piece-chart/values.d/values-directory-with-one-yaml-file-and-one-non-yaml-file/ignore.md
new file mode 120000
index 000000000..96ca2481c
--- /dev/null
+++ b/pkg/cli/values/testdata/one-piece-chart/values.d/values-directory-with-one-yaml-file-and-one-non-yaml-file/ignore.md
@@ -0,0 +1 @@
+../shared-values/ignore.md
\ No newline at end of file
diff --git a/pkg/cli/values/testdata/one-piece-chart/values.d/values-directory-with-one-yaml-file-and-one-non-yaml-file/ship-thousand-sunny.yaml b/pkg/cli/values/testdata/one-piece-chart/values.d/values-directory-with-one-yaml-file-and-one-non-yaml-file/ship-thousand-sunny.yaml
new file mode 120000
index 000000000..ffd956da0
--- /dev/null
+++ b/pkg/cli/values/testdata/one-piece-chart/values.d/values-directory-with-one-yaml-file-and-one-non-yaml-file/ship-thousand-sunny.yaml
@@ -0,0 +1 @@
+../shared-values/ship-thousand-sunny.yaml
\ No newline at end of file
diff --git a/pkg/cli/values/testdata/one-piece-chart/values.d/values-directory-with-only-non-yaml-files/ignore.md b/pkg/cli/values/testdata/one-piece-chart/values.d/values-directory-with-only-non-yaml-files/ignore.md
new file mode 120000
index 000000000..96ca2481c
--- /dev/null
+++ b/pkg/cli/values/testdata/one-piece-chart/values.d/values-directory-with-only-non-yaml-files/ignore.md
@@ -0,0 +1 @@
+../shared-values/ignore.md
\ No newline at end of file
diff --git a/pkg/cli/values/testdata/one-piece-chart/values.d/values-directory-with-single-yaml-file/alliances-law.yaml b/pkg/cli/values/testdata/one-piece-chart/values.d/values-directory-with-single-yaml-file/alliances-law.yaml
new file mode 120000
index 000000000..7bdb74f6f
--- /dev/null
+++ b/pkg/cli/values/testdata/one-piece-chart/values.d/values-directory-with-single-yaml-file/alliances-law.yaml
@@ -0,0 +1 @@
+../shared-values/alliances-law.yaml
\ No newline at end of file
diff --git a/pkg/cli/values/testdata/one-piece-chart/values.d/values-directory-without-files/.gitignore b/pkg/cli/values/testdata/one-piece-chart/values.d/values-directory-without-files/.gitignore
new file mode 100644
index 000000000..e69de29bb
diff --git a/pkg/cli/values/testdata/one-piece-chart/values.yaml b/pkg/cli/values/testdata/one-piece-chart/values.yaml
new file mode 100644
index 000000000..ed9e8d7f8
--- /dev/null
+++ b/pkg/cli/values/testdata/one-piece-chart/values.yaml
@@ -0,0 +1 @@
+# Intentionally empty – no defaults.
\ No newline at end of file
diff --git a/pkg/cmd/flags.go b/pkg/cmd/flags.go
index b20772ef9..1c87fad28 100644
--- a/pkg/cmd/flags.go
+++ b/pkg/cmd/flags.go
@@ -47,6 +47,10 @@ const (
 )
 
 func addValueOptionsFlags(f *pflag.FlagSet, v *values.Options) {
+	f.StringSliceVarP(&v.ValuesDirectories, "values-directory", "d", []string{},
+		"specify values directory to scan recursively for \".yaml\" files. Files are loaded in lexical order. When "+
+			"keys overlap, values from the later file override those from earlier ones. Note: This flag can be "+
+			"specified multiple times.")
 	f.StringSliceVarP(&v.ValueFiles, "values", "f", []string{}, "specify values in a YAML file or a URL (can specify multiple)")
 	f.StringArrayVar(&v.Values, "set", []string{}, "set values on the command line (can specify multiple or separate values with commas: key1=val1,key2=val2)")
 	f.StringArrayVar(&v.StringValues, "set-string", []string{}, "set STRING values on the command line (can specify multiple or separate values with commas: key1=val1,key2=val2)")
diff --git a/pkg/cmd/install.go b/pkg/cmd/install.go
index 295f1ae37..9291f50d4 100644
--- a/pkg/cmd/install.go
+++ b/pkg/cmd/install.go
@@ -47,12 +47,14 @@ This command installs a chart archive.
 The install argument must be a chart reference, a path to a packaged chart,
 a path to an unpacked chart directory or a URL.
 
-To override values in a chart, use either the '--values' flag and pass in a file
-or use the '--set' flag and pass configuration from the command line, to force
-a string value use '--set-string'. You can use '--set-file' to set individual
-values from a file when the value itself is too long for the command line
-or is dynamically generated. You can also use '--set-json' to set json values
-(scalars/objects/arrays) from the command line. Additionally, you can use '--set-json' and passing json object as a string.
+To override values in a chart, use the '-f'/'--values' flag to provide a file or
+the '--set' flag to pass configuration directly from the command line. To force
+a string value, use '--set-string'. Use '--set-file' when a value is too long
+for the command line or dynamically generated. You can also use '--set-json' to
+provide JSON values (scalars, objects, or arrays) from the command line, either
+as a direct argument or by passing a JSON object as a string. Alternatively, use
+the '-d'/'--values-directory' flag to specify a directory containing YAML files
+when you have many values or shared configurations split across files.
 
     $ helm install -f myvalues.yaml myredis ./redis
 
@@ -76,6 +78,9 @@ or
 
     $ helm install --set-json '{"master":{"sidecars":[{"name":"sidecar","image":"myImage","imagePullPolicy":"Always","ports":[{"name":"portname","containerPort":1234}]}]}}' myredis ./redis
 
+or
+    $ helm install -d values.d/ myredis ./redis
+
 You can specify the '--values'/'-f' flag multiple times. The priority will be given to the
 last (right-most) file specified. For example, if both myvalues.yaml and override.yaml
 contained a key called 'Test', the value set in override.yaml would take precedence:
@@ -96,6 +101,33 @@ And in the following example, 'foo' is set to '{"key1":"value1","key2":"bar"}':
 
     $ helm install --set-json='foo={"key1":"value1","key2":"value2"}' --set-json='foo.key2="bar"' myredis ./redis
 
+Key details about flag '-d'/'--values-directory':
+- **Purpose:**
+  - Specify a directory containing values YAML files.
+- **Behavior:**
+  - All YAML files in the directory and its nested subdirectories are loaded
+    recursively. Non-YAML files are skipped.
+  - Files within a single directory are processed in **lexicographical order**,
+    with later files overriding earlier ones when keys overlap.
+- **Precedence:**
+  - This flag has the **lowest precedence** among all value flags
+    ('-d'/'--values-directory', '-f'/'--values', '--set', '--set-string',
+    '--set-file', '--set-json', '--set-literal'). Values from these other flags
+    override values from files in the specified directory.
+  - Exception: The chart's default 'values.yaml' has a **lower precedence** than
+    the '-d'/'--values-directory' flag, i.e., the values from files in the
+    directory can override it. To let default values override directory files,
+    include 'values.yaml' explicitly via '-f'/'--values'.
+- **Multiple Directories:**
+  - The flag can be specified **multiple times**.
+  - When multiple directories are provided, files in directories specified later
+    override values from earlier directories.
+  - **Lexicographical ordering** applies within each directory (and its nested
+    subdirectories) and not between directories specified with multiple
+    '-d'/'--values-directory' flags.
+
+    $ helm install -d default-values/ -d prod-overrides/ myredis ./redis
+
 To check the generated manifests of a release without installing the chart,
 the --debug and --dry-run flags can be combined.
 
diff --git a/pkg/cmd/upgrade.go b/pkg/cmd/upgrade.go
index f32493e87..80d88f509 100644
--- a/pkg/cmd/upgrade.go
+++ b/pkg/cmd/upgrade.go
@@ -50,12 +50,14 @@ argument can be either: a chart reference('example/mariadb'), a path to a chart
 a packaged chart, or a fully qualified URL. For chart references, the latest
 version will be specified unless the '--version' flag is set.
 
-To override values in a chart, use either the '--values' flag and pass in a file
-or use the '--set' flag and pass configuration from the command line, to force string
-values, use '--set-string'. You can use '--set-file' to set individual
-values from a file when the value itself is too long for the command line
-or is dynamically generated. You can also use '--set-json' to set json values
-(scalars/objects/arrays) from the command line. Additionally, you can use '--set-json' and passing json object as a string.
+To override values in a chart, use the '-f'/'--values' flag to provide a file or
+the '--set' flag to pass configuration directly from the command line. To force
+a string value, use '--set-string'. Use '--set-file' when a value is too long
+for the command line or dynamically generated. You can also use '--set-json' to
+provide JSON values (scalars, objects, or arrays) from the command line, either
+as a direct argument or by passing a JSON object as a string. Alternatively, use
+the '-d'/'--values-directory' flag to specify a directory containing YAML files
+when you have many values or shared configurations split across files.
 
 You can specify the '--values'/'-f' flag multiple times. The priority will be given to the
 last (right-most) file specified. For example, if both myvalues.yaml and override.yaml
@@ -76,6 +78,33 @@ or '--set' flags. Priority is given to new values.
 
     $ helm upgrade --reuse-values --set foo=bar --set foo=newbar redis ./redis
 
+Key details about flag '-d'/'--values-directory':
+- **Purpose:**
+  - Specify a directory containing values YAML files.
+- **Behavior:**
+  - All YAML files in the directory and its nested subdirectories are loaded
+    recursively. Non-YAML files are skipped.
+  - Files within a single directory are processed in **lexicographical order**,
+    with later files overriding earlier ones when keys overlap.
+- **Precedence:**
+  - This flag has the **lowest precedence** among all value flags
+    ('-d'/'--values-directory', '-f'/'--values', '--set', '--set-string',
+    '--set-file', '--set-json', '--set-literal'). Values from these other flags
+    override values from files in the specified directory.
+  - Exception: The chart's default 'values.yaml' has a **lower precedence** than
+    the '-d'/'--values-directory' flag, i.e., the values from files in the
+    directory can override it. To let default values override directory files,
+    include 'values.yaml' explicitly via '-f'/'--values'.
+- **Multiple Directories:**
+  - The flag can be specified **multiple times**.
+  - When multiple directories are provided, files in directories specified later
+    override values from earlier directories.
+  - **Lexicographical ordering** applies within each directory (and its nested
+    subdirectories) and not between directories specified with multiple
+    '-d'/'--values-directory' flags.
+
+    $ helm upgrade -d default-values/ -d prod-overrides/ myredis ./redis
+
 The --dry-run flag will output all generated chart manifests, including Secrets
 which can contain sensitive values. To hide Kubernetes Secrets use the
 --hide-secret flag. Please carefully consider how and when these flags are used.