diff --git a/flux_local/values.py b/flux_local/values.py
index eb341740..6f84e3be 100644
--- a/flux_local/values.py
+++ b/flux_local/values.py
@@ -168,7 +168,7 @@ def _lookup_value_reference(
 
     elif (found_value := found_data.get(ref.values_key)) is None:
         raise InvalidValuesReference(
-            "Unable to find key {ref.values_key} in {namespace}/{ref.name}"
+            f"Unable to find key {ref.values_key} in {namespace}/{ref.name}"
         )
 
     return found_value
@@ -230,7 +230,7 @@ def expand_value_references(
     if not helm_release.values_from:
         return helm_release
 
-    values = helm_release.values or {}
+    values: dict[str, Any] = {}
     cluster_config = ks_cluster_config([kustomization])
     for ref in helm_release.values_from:
         _LOGGER.debug("Expanding value reference %s", ref)
@@ -257,6 +257,9 @@ def expand_value_references(
                 f"Error building HelmRelease '{helm_release.namespaced_name}': {err}"
             )
 
+    if helm_release.values:
+        values = _deep_merge(values, helm_release.values)
+
     helm_release.values = values
     return helm_release
 
diff --git a/tests/test_values.py b/tests/test_values.py
index fb56bc63..b54bfcc6 100644
--- a/tests/test_values.py
+++ b/tests/test_values.py
@@ -2,6 +2,8 @@
 
 import base64
 from pathlib import Path
+import yaml
+from typing import Any
 
 import pytest
 from syrupy.assertion import SnapshotAssertion
@@ -101,6 +103,75 @@ def test_values_references_with_values_key() -> None:
     }
 
 
+
+@pytest.mark.parametrize(
+    ("inline_values", "expected_values"),
+    [
+        (
+            {
+                "redis": {
+                    "enabled": True,
+                }
+            },
+            {
+                "redis": {
+                    "enabled": True,
+                }
+            }
+        ),
+        (
+            {},
+            {
+                "redis": {
+                    "enabled": False,
+                }
+            }
+        )
+    ]
+)
+def test_value_reference_ordering(inline_values: dict[str, Any], expected_values: dict[str, Any]) -> None:
+    """Test for expanding a value reference with inline values that overwrite."""
+    hr = HelmRelease(
+        name="test",
+        namespace="test",
+        chart=HelmChart(
+            repo_name="test-repo",
+            repo_namespace="flux-system",
+            name="test-chart",
+            version="test-version",
+        ),
+        values={
+            **inline_values,
+        },
+        values_from=[
+            ValuesReference(
+                kind="ConfigMap",
+                name="test-binary-data-configmap",
+                values_key="some-key",
+            ),
+        ],
+    )
+    ks = Kustomization(
+        name="test",
+        namespace="test",
+        path="example/path",
+        helm_releases=[hr],
+        config_maps=[
+            ConfigMap(
+                name="test-binary-data-configmap",
+                namespace="test",
+                binary_data={
+                    "some-key": base64.b64encode(
+                        "redis:\n  enabled: False".encode("utf-8")
+                    )
+                },
+            ),
+        ],
+    )
+    updated_hr = expand_value_references(hr, ks)
+    assert updated_hr.values == expected_values
+
+
 def test_values_references_with_missing_values_key() -> None:
     """Test for expanding a value reference with a values key that is missing."""
     hr = HelmRelease(
@@ -300,11 +371,12 @@ def test_values_reference_invalid_target_path() -> None:
             name="test-chart",
             version="test-version",
         ),
-        values={
-            "test": "test",
-            "target": ["a", "b", "c"],
-        },
+        values={},
         values_from=[
+            ValuesReference(
+                kind="ConfigMap",
+                name="test-values-original-configmap",
+            ),
             ValuesReference(
                 kind="ConfigMap",
                 name="test-values-configmap",
@@ -324,6 +396,16 @@ def test_values_reference_invalid_target_path() -> None:
                 name="test-values-configmap",
                 namespace="test",
                 data={"some-key": "example_value"},
+            ),
+            ConfigMap(
+                name="test-values-original-configmap",
+                namespace="test",
+                data={
+                    "values.yaml": yaml.dump({
+                        "test": "test",
+                        "target": ["a", "b", "c"],
+                    }),
+                }
             )
         ],
     )
diff --git a/tests/testdata/cluster8/apps/podinfo-values.yaml b/tests/testdata/cluster8/apps/podinfo-values.yaml
index b4f3e312..7e57b5c3 100644
--- a/tests/testdata/cluster8/apps/podinfo-values.yaml
+++ b/tests/testdata/cluster8/apps/podinfo-values.yaml
@@ -7,7 +7,6 @@ metadata:
 data:
   values.yaml: |-
     redis:
-      enabled: true
       repository: public.ecr.aws/docker/library/redis
       tag: 7.0.5
     ingress:
diff --git a/tests/testdata/cluster8/apps/podinfo.yaml b/tests/testdata/cluster8/apps/podinfo.yaml
index 214f6378..371a0fa7 100644
--- a/tests/testdata/cluster8/apps/podinfo.yaml
+++ b/tests/testdata/cluster8/apps/podinfo.yaml
@@ -28,6 +28,9 @@ spec:
   install:
     remediation:
       retries: 3
+  values:
+    redis:
+      enabled: true
   valuesFrom:
     - kind: ConfigMap
       name: podinfo-values
diff --git a/tests/tool/__snapshots__/test_build.ambr b/tests/tool/__snapshots__/test_build.ambr
index db48e61c..2730aad1 100644
--- a/tests/tool/__snapshots__/test_build.ambr
+++ b/tests/tool/__snapshots__/test_build.ambr
@@ -945,6 +945,9 @@
         retries: 3
     interval: 50m
     releaseName: podinfo
+    values:
+      redis:
+        enabled: true
     valuesFrom:
     - kind: ConfigMap
       name: podinfo-values
@@ -968,7 +971,6 @@
         tag: 7.0.6
     values.yaml: |-
       redis:
-        enabled: true
         repository: public.ecr.aws/docker/library/redis
         tag: 7.0.5
       ingress:
@@ -6340,6 +6342,9 @@
         retries: 3
     interval: 50m
     releaseName: podinfo
+    values:
+      redis:
+        enabled: true
     valuesFrom:
     - kind: ConfigMap
       name: podinfo-values
@@ -6363,7 +6368,6 @@
         tag: 7.0.6
     values.yaml: |-
       redis:
-        enabled: true
         repository: public.ecr.aws/docker/library/redis
         tag: 7.0.5
       ingress: