diff --git a/test/e2e/externalplugin/e2e_suite_test.go b/test/e2e/externalplugin/e2e_suite_test.go
new file mode 100644
index 00000000000..de30d1c3096
--- /dev/null
+++ b/test/e2e/externalplugin/e2e_suite_test.go
@@ -0,0 +1,32 @@
+/*
+Copyright 2023 The Kubernetes Authors.
+
+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 externalplugin
+
+import (
+	"fmt"
+	"testing"
+
+	. "github.com/onsi/ginkgo/v2"
+	. "github.com/onsi/gomega"
+)
+
+// Run e2e tests using the Ginkgo runner.
+func TestE2E(t *testing.T) {
+	RegisterFailHandler(Fail)
+	fmt.Fprintf(GinkgoWriter, "Starting sample external plugin kubebuilder suite\n")
+	RunSpecs(t, "Kubebuilder grafana plugin e2e suite")
+}
diff --git a/test/e2e/externalplugin/generate_test.go b/test/e2e/externalplugin/generate_test.go
new file mode 100644
index 00000000000..fa495485682
--- /dev/null
+++ b/test/e2e/externalplugin/generate_test.go
@@ -0,0 +1,111 @@
+/*
+Copyright 2023 The Kubernetes Authors.
+
+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 externalplugin
+
+import (
+	"path/filepath"
+
+	pluginutil "sigs.k8s.io/kubebuilder/v3/pkg/plugin/util"
+
+	//nolint:golint
+	//nolint:revive
+	. "github.com/onsi/ginkgo/v2"
+
+	//nolint:golint
+	//nolint:revive
+	. "github.com/onsi/gomega"
+
+	//nolint:golint
+	//nolint:revive
+	//nolint:golint
+	//nolint:revive
+	"sigs.k8s.io/kubebuilder/v3/test/e2e/utils"
+)
+
+var _ = Describe("kubebuilder", func() {
+	Context("plugin sampleexternalplugin/v1", func() {
+		var (
+			kbc *utils.TestContext
+		)
+
+		BeforeEach(func() {
+			var err error
+			kbc, err = utils.NewTestContext(pluginutil.KubebuilderBinName, "GO111MODULE=on")
+			Expect(err).NotTo(HaveOccurred(), "Prepare NewTestContext should return no error.")
+			Expect(kbc.Prepare()).To(Succeed())
+		})
+
+		AfterEach(func() {
+			kbc.Destroy()
+		})
+
+		It("should generate a runnable project with sample external plugin", func() {
+			GenerateProject(kbc)
+		})
+
+	})
+})
+
+// GenerateProject implements a sampleexternalplugin/v1 external plugin project defined by a TestContext.
+func GenerateProject(kbc *utils.TestContext) {
+	var err error
+
+	By("initializing a project")
+	err = kbc.Init(
+		"--plugins", "sampleexternalplugin/v1",
+		"--domain", "sample.domain.com",
+	)
+	ExpectWithOffset(1, err).NotTo(HaveOccurred())
+
+	var initFileContentsTmpl = "A simple text file created with the `init` subcommand\nDOMAIN: sample.domain.com"
+	initFileContainsExpr, err := pluginutil.HasFileContentWith(
+		filepath.Join(kbc.Dir, "initFile.txt"), initFileContentsTmpl)
+	ExpectWithOffset(1, err).NotTo(HaveOccurred(), "Check initFile.txt should return no error.")
+	ExpectWithOffset(1, initFileContainsExpr).To(BeTrue(), "The init file does not contain the expected expression.")
+
+	By("creating API definition")
+	err = kbc.CreateAPI(
+		"--plugins", "sampleexternalplugin/v1",
+		"--number=2",
+		"--group", kbc.Group,
+		"--version", kbc.Version,
+		"--kind", kbc.Kind,
+	)
+	ExpectWithOffset(1, err).NotTo(HaveOccurred())
+
+	var apiFileContentsTmpl = "A simple text file created with the `create api` subcommand\nNUMBER: 2"
+	apiFileContainsExpr, err := pluginutil.HasFileContentWith(
+		filepath.Join(kbc.Dir, "apiFile.txt"), apiFileContentsTmpl)
+	ExpectWithOffset(1, err).NotTo(HaveOccurred(), "Check apiFile.txt should return no error.")
+	ExpectWithOffset(1, apiFileContainsExpr).To(BeTrue(), "The api file does not contain the expected expression.")
+
+	By("scaffolding webhook")
+	err = kbc.CreateWebhook(
+		"--plugins", "sampleexternalplugin/v1",
+		"--hooked",
+		"--group", kbc.Group,
+		"--version", kbc.Version,
+		"--kind", kbc.Kind,
+	)
+	ExpectWithOffset(1, err).NotTo(HaveOccurred())
+
+	var webhookFileContentsTmpl = "A simple text file created with the `create webhook` subcommand\nHOOKED!"
+	webhookFileContainsExpr, err := pluginutil.HasFileContentWith(
+		filepath.Join(kbc.Dir, "webhookFile.txt"), webhookFileContentsTmpl)
+	ExpectWithOffset(1, err).NotTo(HaveOccurred(), "Check webhookFile.txt should return no error.")
+	ExpectWithOffset(1, webhookFileContainsExpr).To(BeTrue(), "The webhook file does not contain the expected expression.")
+}
diff --git a/test/e2e/setup.sh b/test/e2e/setup.sh
index 9c8f8b84045..ae6fe2d68b0 100755
--- a/test/e2e/setup.sh
+++ b/test/e2e/setup.sh
@@ -65,4 +65,5 @@ function test_cluster {
   go test $(dirname "$0")/grafana $flags -timeout 30m
   go test $(dirname "$0")/deployimage $flags -timeout 30m
   go test $(dirname "$0")/v4 $flags -timeout 30m
+  go test $(dirname "$0")/externalplugin $flags -timeout 30m
 }