diff --git a/go.mod b/go.mod
index b756f2fe16b11..660bc9351437b 100644
--- a/go.mod
+++ b/go.mod
@@ -337,3 +337,5 @@ replace (
 	k8s.io/sample-cli-plugin => k8s.io/sample-cli-plugin v0.31.0
 	k8s.io/sample-controller => k8s.io/sample-controller v0.31.0
 )
+
+replace github.com/argoproj/gitops-engine => github.com/dejanzele/gitops-engine v0.0.0-20241211153501-dd67dd23d8b9
diff --git a/go.sum b/go.sum
index 5cfe6edec501b..1805e1f9b1046 100644
--- a/go.sum
+++ b/go.sum
@@ -88,8 +88,6 @@ github.com/antonmedv/expr v1.15.1/go.mod h1:0E/6TxnOlRNp81GMzX9QfDPAmHo2Phg00y4J
 github.com/apache/thrift v0.12.0/go.mod h1:cp2SuWMxlEZw2r+iP2GNCdIi4C1qmUzdZFSVb+bacwQ=
 github.com/apache/thrift v0.13.0/go.mod h1:cp2SuWMxlEZw2r+iP2GNCdIi4C1qmUzdZFSVb+bacwQ=
 github.com/appscode/go v0.0.0-20191119085241-0887d8ec2ecc/go.mod h1:OawnOmAL4ZX3YaPdN+8HTNwBveT1jMsqP74moa9XUbE=
-github.com/argoproj/gitops-engine v0.7.1-0.20241126194557-037140180399 h1:oTAr8D0pwnu3rw01nvokr6S7iXniq7so72lSvJzlrQs=
-github.com/argoproj/gitops-engine v0.7.1-0.20241126194557-037140180399/go.mod h1:H3JR5JJWtiCC8gxU2iaffw4ER4vhNBxwgwyxtMOR/2Y=
 github.com/argoproj/notifications-engine v0.4.1-0.20241007194503-2fef5c9049fd h1:lOVVoK89j9Nd4+JYJiKAaMNYC1402C0jICROOfUPWn0=
 github.com/argoproj/notifications-engine v0.4.1-0.20241007194503-2fef5c9049fd/go.mod h1:N0A4sEws2soZjEpY4hgZpQS8mRIEw6otzwfkgc3g9uQ=
 github.com/argoproj/pkg v0.13.7-0.20230626144333-d56162821bd1 h1:qsHwwOJ21K2Ao0xPju1sNuqphyMnMYkyB3ZLoLtxWpo=
@@ -219,6 +217,8 @@ github.com/davecgh/go-spew v1.1.2-0.20180830191138-d8f796af33cc/go.mod h1:J7Y8Yc
 github.com/davidmz/go-pageant v1.0.2 h1:bPblRCh5jGU+Uptpz6LgMZGD5hJoOt7otgT454WvHn0=
 github.com/davidmz/go-pageant v1.0.2/go.mod h1:P2EDDnMqIwG5Rrp05dTRITj9z2zpGcD9efWSkTNKLIE=
 github.com/deckarep/golang-set v1.7.1/go.mod h1:93vsz/8Wt4joVM7c2AVqh+YRMiUSc14yDtF28KmMOgQ=
+github.com/dejanzele/gitops-engine v0.0.0-20241211153501-dd67dd23d8b9 h1:6N/+J6eGsB/slKd0ln+CAqBp4vZung2rx3s2nyNRUcU=
+github.com/dejanzele/gitops-engine v0.0.0-20241211153501-dd67dd23d8b9/go.mod h1:H3JR5JJWtiCC8gxU2iaffw4ER4vhNBxwgwyxtMOR/2Y=
 github.com/desertbit/timer v0.0.0-20180107155436-c41aec40b27f h1:U5y3Y5UE0w7amNe7Z5G/twsBW0KEalRQXZzf8ufSh9I=
 github.com/desertbit/timer v0.0.0-20180107155436-c41aec40b27f/go.mod h1:xH/i4TFMt8koVQZ6WFms69WAsDWr2XsYL3Hkl7jkoLE=
 github.com/dgrijalva/jwt-go v3.2.0+incompatible/go.mod h1:E3ru+11k8xSBh+hMPgOLZmtrrCbhqsmaPHjLKYnJCaQ=
diff --git a/test/e2e/hook_test.go b/test/e2e/hook_test.go
index a538566986213..2bf00d2a7d18d 100644
--- a/test/e2e/hook_test.go
+++ b/test/e2e/hook_test.go
@@ -427,3 +427,32 @@ func TestAutomaticallyNamingUnnamedHook(t *testing.T) {
 			assert.Contains(t, resources[2].Name, "postsync")
 		})
 }
+
+func TestHookFinalizerPreSync(t *testing.T) {
+	testHookFinalizer(t, HookTypePreSync)
+}
+
+func TestHookFinalizerSync(t *testing.T) {
+	testHookFinalizer(t, HookTypeSync)
+}
+
+func TestHookFinalizerPostSync(t *testing.T) {
+	testHookFinalizer(t, HookTypePostSync)
+}
+
+func testHookFinalizer(t *testing.T, hookType HookType) {
+	t.Helper()
+	Given(t).
+		Path("hook-resource-deleted-externally").
+		When().
+		PatchFile("hook.yaml", fmt.Sprintf(`[{"op": "replace", "path": "/metadata/annotations", "value": {"argocd.argoproj.io/hook": "%s"}}]`, hookType)).
+		CreateApp().
+		Sync().
+		Then().
+		Expect(OperationPhaseIs(OperationSucceeded)).
+		Expect(SyncStatusIs(SyncStatusCodeSynced)).
+		Expect(ResourceSyncStatusIs("Pod", "pod", SyncStatusCodeSynced)).
+		Expect(ResourceHealthIs("Pod", "pod", health.HealthStatusHealthy)).
+		Expect(ResourceResultNumbering(2)).
+		Expect(ResourceResultIs(ResourceResult{Group: "batch", Version: "v1", Kind: "Job", Namespace: DeploymentNamespace(), Name: "hook", Message: "Reached expected number of succeeded pods", HookType: hookType, HookPhase: OperationSucceeded, SyncPhase: SyncPhase(hookType)}))
+}
diff --git a/test/e2e/testdata/hook-resource-deleted-externally/hook.yaml b/test/e2e/testdata/hook-resource-deleted-externally/hook.yaml
new file mode 100644
index 0000000000000..1bb04369c9516
--- /dev/null
+++ b/test/e2e/testdata/hook-resource-deleted-externally/hook.yaml
@@ -0,0 +1,18 @@
+apiVersion: batch/v1
+kind: Job
+metadata:
+  annotations:
+    argocd.argoproj.io/hook: Sync
+  name: hook
+spec:
+  ttlSecondsAfterFinished: 0
+  backoffLimit: 0
+  template:
+    spec:
+      containers:
+        - command:
+            - "true"
+          image: quay.io/argoprojlabs/argocd-e2e-container:0.1
+          imagePullPolicy: IfNotPresent
+          name: main
+      restartPolicy: Never
\ No newline at end of file
diff --git a/test/e2e/testdata/hook-resource-deleted-externally/pod.yaml b/test/e2e/testdata/hook-resource-deleted-externally/pod.yaml
new file mode 100644
index 0000000000000..001aa52b04cec
--- /dev/null
+++ b/test/e2e/testdata/hook-resource-deleted-externally/pod.yaml
@@ -0,0 +1,12 @@
+apiVersion: v1
+kind: Pod
+metadata:
+  name: pod
+spec:
+  containers:
+    - name: main
+      image: quay.io/argoprojlabs/argocd-e2e-container:0.1
+      imagePullPolicy: IfNotPresent
+      command:
+        - "true"
+  restartPolicy: Never