diff --git a/test/actions.github.com/update-strategy-v2.test.sh b/test/actions.github.com/update-strategy-v2.test.sh
new file mode 100755
index 00000000..2ac2f2ad
--- /dev/null
+++ b/test/actions.github.com/update-strategy-v2.test.sh
@@ -0,0 +1,151 @@
+#!/bin/bash
+
+set -euo pipefail
+
+DIR="$(realpath "$(dirname "${BASH_SOURCE[0]}")")"
+
+ROOT_DIR="$(realpath "${DIR}/../..")"
+
+source "${DIR}/helper.sh" || {
+    echo "Failed to source helper.sh"
+    exit 1
+}
+
+export VERSION="$(chart_version "${ROOT_DIR}/charts/gha-runner-scale-set-controller-experimental/Chart.yaml")"
+
+SCALE_SET_NAME="update-strategy-$(date '+%M%S')$(((RANDOM + 100) % 100 + 1))"
+SCALE_SET_NAMESPACE="arc-runners"
+WORKFLOW_FILE="arc-test-sleepy-matrix.yaml"
+ARC_NAME="arc"
+ARC_NAMESPACE="arc-systems"
+
+function install_arc() {
+    echo "Installing ARC"
+
+    helm install "${ARC_NAME}" \
+        --namespace "${ARC_NAMESPACE}" \
+        --create-namespace \
+        --set controller.manager.container.image="${IMAGE_NAME}:${IMAGE_TAG}" \
+        --set controller.manager.config.updateStrategy="eventual" \
+        "${ROOT_DIR}/charts/gha-runner-scale-set-controller-experimental" \
+        --debug
+
+    if ! NAME="${ARC_NAME}" NAMESPACE="${ARC_NAMESPACE}" wait_for_arc; then
+        NAMESPACE="${ARC_NAMESPACE}" log_arc
+        return 1
+    fi
+}
+
+function install_scale_set() {
+    echo "Installing scale set ${SCALE_SET_NAME}/${SCALE_SET_NAMESPACE}"
+    helm install "${SCALE_SET_NAME}" \
+        --namespace "${SCALE_SET_NAMESPACE}" \
+        --create-namespace \
+        --set controllerServiceAccount.name="${ARC_NAME}-gha-rs-controller" \
+        --set controllerServiceAccount.namespace="${ARC_NAMESPACE}" \
+        --set auth.url="https://github.com/${TARGET_ORG}/${TARGET_REPO}" \
+        --set auth.githubToken="${GITHUB_TOKEN}" \
+        "${ROOT_DIR}/charts/gha-runner-scale-set-experimental" \
+        --version="${VERSION}" \
+        --debug
+
+    if ! NAME="${SCALE_SET_NAME}" NAMESPACE="${ARC_NAMESPACE}" wait_for_scale_set; then
+        NAMESPACE="${ARC_NAMESPACE}" log_arc
+        return 1
+    fi
+}
+
+function upgrade_scale_set() {
+    echo "Upgrading scale set ${SCALE_SET_NAME}/${SCALE_SET_NAMESPACE}"
+    helm upgrade "${SCALE_SET_NAME}" \
+        --namespace "${SCALE_SET_NAMESPACE}" \
+        --set controllerServiceAccount.name="${ARC_NAME}-gha-rs-controller" \
+        --set controllerServiceAccount.namespace="${ARC_NAMESPACE}" \
+        --set auth.url="https://github.com/${TARGET_ORG}/${TARGET_REPO}" \
+        --set auth.githubToken="${GITHUB_TOKEN}" \
+        --set runner.container.image="ghcr.io/actions/actions-runner:latest" \
+        --set runner.container.command={"/home/runner/run.sh"} \
+        --set runner.env[0].name="TEST" \
+        --set runner.env[0].value="E2E TESTS" \
+        "${ROOT_DIR}/charts/gha-runner-scale-set-experimental" \
+        --version="${VERSION}" \
+        --debug
+
+}
+
+function assert_listener_deleted() {
+    local count=0
+    while true; do
+        LISTENER_COUNT="$(kubectl get pods -l actions.github.com/scale-set-name="${SCALE_SET_NAME}" -n "${ARC_NAMESPACE}" --field-selector=status.phase=Running -o=jsonpath='{.items}' | jq 'length')"
+        RUNNERS_COUNT="$(kubectl get pods -l app.kubernetes.io/component=runner -n "${SCALE_SET_NAMESPACE}" --field-selector=status.phase=Running -o=jsonpath='{.items}' | jq 'length')"
+        RESOURCES="$(kubectl get pods -A)"
+
+        if [ "${LISTENER_COUNT}" -eq 0 ]; then
+            echo "Listener has been deleted"
+            echo "${RESOURCES}"
+            return 0
+        fi
+        if [ "${count}" -ge 60 ]; then
+            echo "Timeout waiting for listener to be deleted"
+            echo "${RESOURCES}"
+            return 1
+        fi
+
+        echo "Waiting for listener to be deleted"
+        echo "Listener count: ${LISTENER_COUNT} target: 0 | Runners count: ${RUNNERS_COUNT} target: 3"
+
+        sleep 1
+        count=$((count + 1))
+    done
+}
+
+function assert_listener_recreated() {
+    count=0
+    while true; do
+        LISTENER_COUNT="$(kubectl get pods -l actions.github.com/scale-set-name="${SCALE_SET_NAME}" -n "${ARC_NAMESPACE}" --field-selector=status.phase=Running -o=jsonpath='{.items}' | jq 'length')"
+        RUNNERS_COUNT="$(kubectl get pods -l app.kubernetes.io/component=runner -n "${SCALE_SET_NAMESPACE}" --field-selector=status.phase=Running -o=jsonpath='{.items}' | jq 'length')"
+        RESOURCES="$(kubectl get pods -A)"
+
+        if [ "${LISTENER_COUNT}" -eq 1 ]; then
+            echo "Listener is up!"
+            echo "${RESOURCES}"
+            return 0
+        fi
+        if [ "${count}" -ge 120 ]; then
+            echo "Timeout waiting for listener to be recreated"
+            echo "${RESOURCES}"
+            return 1
+        fi
+
+        echo "Waiting for listener to be recreated"
+        echo "Listener count: ${LISTENER_COUNT} target: 1 | Runners count: ${RUNNERS_COUNT} target: 0"
+
+        sleep 1
+        count=$((count + 1))
+    done
+}
+
+function main() {
+    local failed=()
+
+    build_image
+    create_cluster
+    install_arc
+    install_scale_set
+
+    WORKFLOW_FILE="${WORKFLOW_FILE}" SCALE_SET_NAME="${SCALE_SET_NAME}" run_workflow || failed+=("run_workflow")
+
+    upgrade_scale_set || failed+=("upgrade_scale_set")
+    assert_listener_deleted || failed+=("assert_listener_deleted")
+    assert_listener_recreated || failed+=("assert_listener_recreated")
+
+    INSTALLATION_NAME="${SCALE_SET_NAME}" NAMESPACE="${SCALE_SET_NAMESPACE}" cleanup_scale_set || failed+=("cleanup_scale_set")
+
+    NAMESPACE="${ARC_NAMESPACE}" log_arc || failed+=("log_arc")
+
+    delete_cluster
+
+    print_results "${failed[@]}"
+}
+
+main