diff --git a/Custom_Hooks/eb_hooks.py b/Custom_Hooks/eb_hooks.py
index 135c29d6d1c60242a2d56a6179543c17e4690aa4..d1ff1912bfcf57843670d17eb22a9cf234e2bbbe 100644
--- a/Custom_Hooks/eb_hooks.py
+++ b/Custom_Hooks/eb_hooks.py
@@ -463,7 +463,8 @@ def pre_ready_hook(self, *args, **kwargs):
     # overridden, only experts should know that)
     override_mpi_check = os.getenv("JSC_OVERRIDE_MPI_CHECK")
     if not override_mpi_check:
-        if is_mpi and GOLDEN_REPO not in path_to_ec and os.getenv('USER') not in 'swmanage':
+        if is_mpi and GOLDEN_REPO not in path_to_ec and 'Overlays' not in path_to_ec \
+        and os.getenv('USER') not in 'swmanage':
             print_warning(
                 "\nYou are attempting to install a non-system MPI implementation (%s), "
                 "this is very likely to lead to severe performance degradation. Please "