diff --git a/.github/actions/deploy-lifecycle-manager-e2e/action.yml b/.github/actions/deploy-lifecycle-manager-e2e/action.yml
index 38714fe8a6..1d1526a83d 100644
--- a/.github/actions/deploy-lifecycle-manager-e2e/action.yml
+++ b/.github/actions/deploy-lifecycle-manager-e2e/action.yml
@@ -97,6 +97,51 @@ runs:
         cat certificate_renewal.yaml
         kustomize edit add patch --path certificate_renewal.yaml --kind Certificate --group cert-manager.io --version v1 --name watcher-serving
         popd
+    - name: Create and use maintenance window policy
+      if: ${{matrix.e2e-test == 'maintenance-window-with-module-downtime'}}
+      working-directory: lifecycle-manager/config
+      shell: bash
+      run: |
+        current_time=$(date -u +"%Y-%m-%dT%H:%M:%SZ")
+        time_plus_2_hours=$(date -u -d "2 hours" +"%Y-%m-%dT%H:%M:%SZ")
+        time_plus_1_day=$(date -u -d "1 day" +"%Y-%m-%dT%H:%M:%SZ")
+        time_plus_1_day_plus_2_hours=$(date -u -d "1 day 2 hours" +"%Y-%m-%dT%H:%M:%SZ")
+        
+        cat <<EOF > ./maintenance_windows/policy.json
+        {
+          "rules": [
+            {
+              "match": {
+                "region": "asia"
+              },
+              "windows": [
+                {
+                  "begin": "$current_time",
+                  "end": "$time_plus_2_hours"
+                }
+              ]
+            },
+            {
+              "match": {
+                "region": "europe"
+              },
+              "windows": [
+                {
+                  "begin": "$time_plus_1_day",
+                  "end": "$time_plus_1_day_plus_2_hours"
+                }
+              ]
+            }
+          ],
+          "default": {}
+        }
+        EOF
+        
+        echo "Maintenance window policy:"
+        cat ./maintenance_windows/policy.json
+        
+        cd watcher_local_test
+        kustomize edit add component ../maintenance_windows
     - name: Deploy LM local testing kustomize
       uses: ./lifecycle-manager/.github/actions/deploy-lifecycle-manager
       with:
diff --git a/.github/actions/deploy-template-operator-with-modulereleasemeta/action.yml b/.github/actions/deploy-template-operator-with-modulereleasemeta/action.yml
index b91fc5e082..6afca737d2 100644
--- a/.github/actions/deploy-template-operator-with-modulereleasemeta/action.yml
+++ b/.github/actions/deploy-template-operator-with-modulereleasemeta/action.yml
@@ -42,13 +42,22 @@ runs:
     - name: Create and apply Template Operator ModuleTemplate with ModuleDeploymentNameInNewerVersion
       working-directory: template-operator
       if: ${{ matrix.e2e-test != 'mandatory-module' &&
-        matrix.e2e-test != 'mandatory-module-metrics' 
+        matrix.e2e-test != 'mandatory-module-metrics'
         }}
       shell: bash
       run: |
+        INCLUDE_DEFAULT_CR=true
+        MANDATORY=false
+        DEPLOY_MODULETEMPLATE=true
+        if [ "${{ matrix.e2e-test }}" == "modulereleasemeta-maintenance-window-with-module-downtime" ]; then
+          REQUIRE_DOWNTIME=true
+        else
+          REQUIRE_DOWNTIME=false
+        fi
+        
         make build-manifests
         yq eval '(. | select(.kind == "Deployment") | .metadata.name) = "${{ env.ModuleDeploymentNameInNewerVersion }}"' -i template-operator.yaml
-        ./deploy_moduletemplate.sh ${{ env.ModuleName }} ${{ env.NewerVersion }}
+        ./deploy_moduletemplate.sh ${{ env.ModuleName }} ${{ env.NewerVersion }} $INCLUDE_DEFAULT_CR $MANDATORY $DEPLOY_MODULETEMPLATE $REQUIRE_DOWNTIME
     - name: Create and apply ModuleReleaseMeta from the latest release
       working-directory: template-operator
       if: ${{ matrix.e2e-test == 'kyma-metrics' ||
@@ -75,7 +84,8 @@ runs:
         matrix.e2e-test == 'modulereleasemeta-upgrade-under-deletion' ||
         matrix.e2e-test == 'modulereleasemeta-sync' ||
         matrix.e2e-test == 'module-status-on-skr-connection-lost' ||
-        matrix.e2e-test == 'modulereleasemeta-not-allowed-installation'
+        matrix.e2e-test == 'modulereleasemeta-not-allowed-installation' ||
+        matrix.e2e-test == 'modulereleasemeta-maintenance-window-with-module-downtime'
         }}
       shell: bash
       run: |
diff --git a/.github/workflows/test-e2e-with-modulereleasemeta.yml b/.github/workflows/test-e2e-with-modulereleasemeta.yml
index 9cd6b1757d..65c9547a5d 100644
--- a/.github/workflows/test-e2e-with-modulereleasemeta.yml
+++ b/.github/workflows/test-e2e-with-modulereleasemeta.yml
@@ -67,6 +67,8 @@ jobs:
           - modulereleasemeta-watch-trigger
           - modulereleasemeta-not-allowed-installation
           - labelling
+          - modulereleasemeta-maintenance-window-with-module-downtime
+
     runs-on: ubuntu-latest
     timeout-minutes: 20
     steps:
diff --git a/scripts/tests/deploy_moduletemplate.sh b/scripts/tests/deploy_moduletemplate.sh
index f70edce432..5a55bb9368 100755
--- a/scripts/tests/deploy_moduletemplate.sh
+++ b/scripts/tests/deploy_moduletemplate.sh
@@ -9,6 +9,7 @@ RELEASE_VERSION=$2
 INCLUDE_DEFAULT_CR=${3:-true}
 MANDATORY=${4:-false}
 DEPLOY_MODULETEMPLATE=${5:-true}
+REQUIRES_DOWNTIME=${6:-false}
 
 cat <<EOF > module-config-for-e2e.yaml
 name: kyma-project.io/module/${MODULE_NAME}
@@ -17,6 +18,7 @@ security: sec-scanners-config.yaml
 manifest: https://localhost:8080/template-operator.yaml
 repository: https://github.com/kyma-project/template-operator
 documentation: https://github.com/kyma-project/template-operator/blob/main/README.md
+requiresDowntime: ${REQUIRES_DOWNTIME}
 icons:
 - name: module-icon
   link: https://github.com/kyma-project/template-operator/blob/main/docs/assets/logo.png
diff --git a/tests/e2e/Makefile b/tests/e2e/Makefile
index 28cb5ba689..bc54afa9e7 100644
--- a/tests/e2e/Makefile
+++ b/tests/e2e/Makefile
@@ -171,3 +171,6 @@ modulereleasemeta-not-allowed-installation:
 
 labelling:
 	go test -timeout 20m -ginkgo.v -ginkgo.focus "Labelling SKR resources"
+
+modulereleasemeta-maintenance-window-with-module-downtime:
+	go test -timeout 20m -ginkgo.v -ginkgo.focus "Maintenance Window With ModuleReleaseMeta and Module Downtime"
diff --git a/tests/e2e/modulereleasemeta_maintenance_window_module_downtime_test.go b/tests/e2e/modulereleasemeta_maintenance_window_module_downtime_test.go
new file mode 100644
index 0000000000..c6e8972959
--- /dev/null
+++ b/tests/e2e/modulereleasemeta_maintenance_window_module_downtime_test.go
@@ -0,0 +1,139 @@
+package e2e_test
+
+import (
+	. "github.com/onsi/ginkgo/v2"
+	. "github.com/onsi/gomega"
+
+	"github.com/kyma-project/lifecycle-manager/api/shared"
+	"github.com/kyma-project/lifecycle-manager/api/v1beta2"
+	. "github.com/kyma-project/lifecycle-manager/pkg/testutils"
+	. "github.com/kyma-project/lifecycle-manager/tests/e2e/commontestutils"
+)
+
+var _ = Describe("Maintenance Window With ModuleReleaseMeta and Module Downtime", Ordered, func() {
+	kyma := NewKymaWithSyncLabel("kyma-sample", ControlPlaneNamespace, v1beta2.DefaultChannel)
+	kyma.Labels["operator.kyma-project.io/region"] = "europe"
+	kyma.Spec.SkipMaintenanceWindows = false
+	/*
+		Maintenance Windows are defined as such:
+			region asia: current time - current time + 2 hours
+			region europe: tomorrow
+	*/
+
+	module := NewTemplateOperator(v1beta2.DefaultChannel)
+	moduleCR := NewTestModuleCR(RemoteNamespace)
+
+	InitEmptyKymaBeforeAll(kyma)
+	CleanupKymaAfterAll(kyma)
+
+	Context("Given SKR Cluster", func() {
+		It("When Kyma Module is enabled on SKR Kyma CR and Maintenance Window is opt in", func() {
+			Eventually(EnableModule).
+				WithContext(ctx).
+				WithArguments(skrClient, defaultRemoteKymaName, RemoteNamespace, module).
+				Should(Succeed())
+		})
+
+		It("Then Module CR is deployed", func() {
+			Eventually(ModuleCRExists).
+				WithContext(ctx).
+				WithArguments(skrClient, moduleCR).
+				Should(Succeed())
+
+			By("And Module Operator Deployment is deployed")
+			Eventually(DeploymentIsReady).
+				WithContext(ctx).
+				WithArguments(skrClient, ModuleDeploymentNameInOlderVersion, TestModuleResourceNamespace).
+				Should(Succeed())
+
+			By("And KCP Kyma CR is in \"Ready\" State")
+			Eventually(KymaIsInState).
+				WithContext(ctx).
+				WithArguments(kyma.GetName(), kyma.GetNamespace(), kcpClient, shared.StateReady).
+				Should(Succeed())
+		})
+
+		It("When new version requiring downtime is selected in ModuleReleaseMeta,"+
+			" but no Maintenance Window is active", func() {
+			Eventually(UpdateChannelVersionInModuleReleaseMeta).
+				WithContext(ctx).
+				WithArguments(kcpClient, module.Name, ControlPlaneNamespace, v1beta2.DefaultChannel, NewerVersion).
+				Should(Succeed())
+		})
+
+		It("Then Module CR exists", func() {
+			Eventually(ModuleCRExists).
+				WithContext(ctx).
+				WithArguments(skrClient, moduleCR).
+				Should(Succeed())
+
+			By("And old Module Operator Deployment still exists")
+			Consistently(DeploymentIsReady).
+				WithContext(ctx).
+				WithArguments(skrClient, ModuleDeploymentNameInOlderVersion, TestModuleResourceNamespace).
+				Should(Succeed())
+
+			By("And new Module Operator Deployment is not deployed")
+			Consistently(DeploymentIsReady).
+				WithContext(ctx).
+				WithArguments(skrClient, ModuleDeploymentNameInNewerVersion, TestModuleResourceNamespace).
+				Should(Equal(ErrNotFound))
+
+			By("And KCP Kyma CR is in \"Ready\" State")
+			Eventually(KymaIsInState).
+				WithContext(ctx).
+				WithArguments(kyma.GetName(), kyma.GetNamespace(), kcpClient, shared.StateReady).
+				Should(Succeed())
+		})
+
+		It("When a Maintenance Window is active", func() {
+			Eventually(UpdateKymaLabel).
+				WithContext(ctx).
+				WithArguments(kcpClient, kyma.Name, kyma.Namespace, "operator.kyma-project.io/region", "asia").
+				Should(Succeed())
+		})
+
+		It("Then Module CR exists", func() {
+			Eventually(ModuleCRExists).
+				WithContext(ctx).
+				WithArguments(skrClient, moduleCR).
+				Should(Succeed())
+
+			By("And old Module Operator Deployment no longer exists")
+			Eventually(DeploymentIsReady).
+				WithContext(ctx).
+				WithArguments(skrClient, ModuleDeploymentNameInOlderVersion, TestModuleResourceNamespace).
+				Should(Equal(ErrNotFound))
+
+			By("And new Module Operator Deployment is deployed")
+			Eventually(DeploymentIsReady).
+				WithContext(ctx).
+				WithArguments(skrClient, ModuleDeploymentNameInNewerVersion, TestModuleResourceNamespace).
+				Should(Succeed())
+
+			By("And KCP Kyma CR is in \"Ready\" State")
+			Eventually(KymaIsInState).
+				WithContext(ctx).
+				WithArguments(kyma.GetName(), kyma.GetNamespace(), kcpClient, shared.StateReady).
+				Should(Succeed())
+
+			By("And Kyma Module Version in Kyma Status is updated")
+			newModuleTemplateVersion, err := ReadModuleVersionFromModuleTemplate(ctx, kcpClient, module,
+				kyma.Spec.Channel, ControlPlaneNamespace)
+			Expect(err).ToNot(HaveOccurred())
+
+			Eventually(ModuleVersionInKymaStatusIsCorrect).
+				WithContext(ctx).
+				WithArguments(kcpClient, kyma.GetName(), kyma.GetNamespace(), module.Name,
+					newModuleTemplateVersion).
+				Should(Succeed())
+
+			By("And Manifest Version is updated")
+			Eventually(ManifestVersionIsCorrect).
+				WithContext(ctx).
+				WithArguments(kcpClient, kyma.GetName(), kyma.GetNamespace(), module.Name,
+					newModuleTemplateVersion).
+				Should(Succeed())
+		})
+	})
+})
diff --git a/versions.yaml b/versions.yaml
index 73b46c8fe0..7b4c7dc60c 100644
--- a/versions.yaml
+++ b/versions.yaml
@@ -1,7 +1,7 @@
 # defines the versions of the tools used in the project
 istio: "1.24.1"
 k3d: "5.7.4"
-modulectl: "1.1.3"
+modulectl: "1.1.5"
 certManager: "1.15.0"
 k8s: "1.30.3"
 kustomize: "5.3.0"