diff --git a/.github/actions/e2e/install-karpenter/action.yaml b/.github/actions/e2e/install-karpenter/action.yaml
index b0c8ee550c00..36d2ef0b9dc8 100644
--- a/.github/actions/e2e/install-karpenter/action.yaml
+++ b/.github/actions/e2e/install-karpenter/action.yaml
@@ -22,6 +22,9 @@ inputs:
   k8s_version:
     description: 'Version of Kubernetes to use for the launched cluster'
     default: "1.29"
+  webhooks_enabled:
+    description: "Whether webhooks are enabled or not. Valid values are 'true' or 'false'"
+    default: 'true'
   git_ref:
     description: "The git commit, tag, or branch to check out. Requires a corresponding Karpenter snapshot release"
 runs:
@@ -53,19 +56,19 @@ runs:
       ACCOUNT_ID: ${{ inputs.account_id }}
       CLUSTER_NAME: ${{ inputs.cluster_name }}
       K8S_VERSION: ${{ inputs.k8s_version }}
+      WEBHOOKS_ENABLED: ${{ inputs.webhooks_enabled }}
     run: |
       aws eks update-kubeconfig --name "$CLUSTER_NAME"
 
       # Parse minor version to determine whether to enable the webhooks
       K8S_VERSION_MINOR="${K8S_VERSION#*.}"
-      WEBHOOK_ENABLED=true
 
       # Remove service account annotation when dropping support for 1.23
       helm upgrade --install karpenter "oci://$ECR_ACCOUNT_ID.dkr.ecr.$ECR_REGION.amazonaws.com/karpenter/snapshot/karpenter" \
         -n kube-system \
         --version "0-$(git rev-parse HEAD)" \
         --set logLevel=debug \
-        --set webhook.enabled=${WEBHOOK_ENABLED} \
+        --set webhook.enabled=${WEBHOOKS_ENABLED} \
         --set serviceAccount.annotations."eks\.amazonaws\.com/role-arn"="arn:aws:iam::$ACCOUNT_ID:role/karpenter-irsa-$CLUSTER_NAME" \
         --set settings.clusterName="$CLUSTER_NAME" \
         --set settings.interruptionQueue="$CLUSTER_NAME" \
diff --git a/.github/actions/e2e/setup-cluster/action.yaml b/.github/actions/e2e/setup-cluster/action.yaml
index 5a78144a0d30..06de1503449f 100644
--- a/.github/actions/e2e/setup-cluster/action.yaml
+++ b/.github/actions/e2e/setup-cluster/action.yaml
@@ -45,6 +45,9 @@ inputs:
   cleanup:
     description: "Whether to cleanup resources on failure"
     default: 'false'
+  webhooks_enabled:
+    description: "Whether webhooks are enabled or not. Valid values are 'true' or 'false'"
+    default: 'true'
 runs:
   using: "composite"
   steps:
@@ -281,3 +284,4 @@ runs:
       cluster_name: ${{ inputs.cluster_name }}
       k8s_version: ${{ inputs.k8s_version }}
       git_ref: ${{ inputs.git_ref }}
+      webhooks_enabled: ${{ inputs.webhooks_enabled }}
diff --git a/.github/workflows/e2e-matrix.yaml b/.github/workflows/e2e-matrix.yaml
index 5d5be7392c5c..bd33fe06c885 100644
--- a/.github/workflows/e2e-matrix.yaml
+++ b/.github/workflows/e2e-matrix.yaml
@@ -76,6 +76,8 @@ jobs:
             region: ${{ inputs.region }}
           - name: IPv6
             region: ${{ inputs.region }}
+          - name: Webhooks
+            region: ${{ inputs.region }}
           - name: LocalZone
             # LAX is the only local zone available in the CI account, therefore only use us-west-2
             region: us-west-2
diff --git a/.github/workflows/e2e.yaml b/.github/workflows/e2e.yaml
index 95cc85246409..32abe7f09bc0 100644
--- a/.github/workflows/e2e.yaml
+++ b/.github/workflows/e2e.yaml
@@ -27,6 +27,7 @@ on:
           - Scale
           - PrivateCluster
           - LocalZone
+          - Webhooks
       k8s_version:
         type: choice
         options:
@@ -138,6 +139,7 @@ jobs:
           prometheus_region: ${{ vars.PROMETHEUS_REGION }}
           enable_local_zones: ${{ inputs.suite == 'LocalZone' }}
           cleanup: ${{ inputs.cleanup }}
+          webhooks_enabled: ${{ inputs.suite != 'Webhooks' && true }} # Set webhooks_enabled to false if running webhook smoke test suite
       - name: run the ${{ inputs.suite }} test suite
         env:
           SUITE: ${{ inputs.suite }}
diff --git a/test/suites/webhooks/suite_test.go b/test/suites/webhooks/suite_test.go
new file mode 100644
index 000000000000..b66ce2fa82aa
--- /dev/null
+++ b/test/suites/webhooks/suite_test.go
@@ -0,0 +1,66 @@
+/*
+Licensed under the Apache License, Version 2.0 (the "License");
+you may not use this file except in compliance with the License.
+You may obtain a copy of the License at
+
+    http://www.apache.org/licenses/LICENSE-2.0
+
+Unless required by applicable law or agreed to in writing, software
+distributed under the License is distributed on an "AS IS" BASIS,
+WITHOUT WARRANTIES OR CONDITIONS OF ANY KIND, either express or implied.
+See the License for the specific language governing permissions and
+limitations under the License.
+*/
+
+package webhooks_test
+
+import (
+	"context"
+	"testing"
+
+	v1beta1 "github.com/aws/karpenter-provider-aws/pkg/apis/v1beta1"
+	"github.com/aws/karpenter-provider-aws/test/pkg/environment/aws"
+
+	karpv1beta1 "sigs.k8s.io/karpenter/pkg/apis/v1beta1"
+
+	karptest "sigs.k8s.io/karpenter/pkg/test"
+
+	. "github.com/onsi/ginkgo/v2"
+	. "github.com/onsi/gomega"
+	. "knative.dev/pkg/logging/testing"
+)
+
+var ctx context.Context
+var env *aws.Environment
+var nodeClass *v1beta1.EC2NodeClass
+var nodePool *karpv1beta1.NodePool
+
+func TestWebhooks(t *testing.T) {
+	RegisterFailHandler(Fail)
+
+	ctx = TestContextWithLogger(t)
+	BeforeSuite(func() {
+		env = aws.NewEnvironment(t)
+	})
+	AfterSuite(func() {
+		env.Stop()
+	})
+	RunSpecs(t, "Webhooks")
+}
+
+var _ = BeforeEach(func() {
+	env.BeforeEach()
+	nodeClass = env.DefaultEC2NodeClass()
+	nodePool = env.DefaultNodePool(nodeClass)
+})
+var _ = AfterEach(func() { env.Cleanup() })
+var _ = AfterEach(func() { env.AfterEach() })
+
+var _ = Describe("Webhooks", func() {
+	It("should schedule pods when webhooks are disabled", func() {
+		pod := karptest.Pod()
+		env.ExpectCreated(pod, nodeClass, nodePool)
+		env.EventuallyExpectHealthy(pod)
+		env.ExpectCreatedNodeCount("==", 1)
+	})
+})