diff --git a/pkg/testutils/moduletemplate.go b/pkg/testutils/moduletemplate.go
index fae821e135..e8f6183d6d 100644
--- a/pkg/testutils/moduletemplate.go
+++ b/pkg/testutils/moduletemplate.go
@@ -2,6 +2,7 @@ package testutils
 
 import (
 	"context"
+	"errors"
 	"fmt"
 
 	"sigs.k8s.io/controller-runtime/pkg/client"
@@ -9,6 +10,7 @@ import (
 	"github.com/kyma-project/lifecycle-manager/api/v1beta2"
 	"github.com/kyma-project/lifecycle-manager/internal/descriptor/provider"
 	"github.com/kyma-project/lifecycle-manager/pkg/templatelookup"
+	"github.com/kyma-project/lifecycle-manager/pkg/util"
 )
 
 func GetModuleTemplate(ctx context.Context,
@@ -25,18 +27,22 @@ func GetModuleTemplate(ctx context.Context,
 	return templateInfo.ModuleTemplate, nil
 }
 
-func RegularModuleTemplateExists(ctx context.Context,
+func ModuleTemplateExists(ctx context.Context,
 	clnt client.Client,
 	module v1beta2.Module,
 	defaultChannel string,
 ) error {
 	moduleTemplate, err := GetModuleTemplate(ctx, clnt, module, defaultChannel)
-	return CRExists(moduleTemplate, err)
+	if moduleTemplate == nil || errors.Is(err, templatelookup.ErrNoTemplatesInListResult) {
+		return ErrNotFound
+	}
+
+	return nil
 }
 
 func AllModuleTemplatesExists(ctx context.Context, clnt client.Client, kyma *v1beta2.Kyma) error {
 	for _, module := range kyma.Spec.Modules {
-		if err := RegularModuleTemplateExists(ctx, clnt, module, kyma.Spec.Channel); err != nil {
+		if err := ModuleTemplateExists(ctx, clnt, module, kyma.Spec.Channel); err != nil {
 			return err
 		}
 	}
@@ -64,3 +70,18 @@ func UpdateModuleTemplateSpec(ctx context.Context,
 	}
 	return nil
 }
+
+func DeleteModuleTemplate(ctx context.Context,
+	clnt client.Client, module v1beta2.Module, kymaChannel string,
+) error {
+	moduleTemplate, err := GetModuleTemplate(ctx, clnt, module, kymaChannel)
+	if util.IsNotFound(err) {
+		return nil
+	}
+
+	err = client.IgnoreNotFound(clnt.Delete(ctx, moduleTemplate))
+	if err != nil {
+		return fmt.Errorf("moduletemplate not deleted: %w", err)
+	}
+	return nil
+}
diff --git a/tests/e2e/module_deletion_test.go b/tests/e2e/module_deletion_test.go
index bd7c0a26f1..fe7fb7e36a 100644
--- a/tests/e2e/module_deletion_test.go
+++ b/tests/e2e/module_deletion_test.go
@@ -217,5 +217,19 @@ var _ = Describe("Non Blocking Kyma Module Deletion", Ordered, func() {
 				WithArguments(defaultRemoteKymaName, remoteNamespace, runtimeClient, shared.StateReady).
 				Should(Succeed())
 		})
+
+		It("When ModuleTemplate is removed from KCP Cluster", func() {
+			Eventually(DeleteModuleTemplate).
+				WithContext(ctx).
+				WithArguments(controlPlaneClient, module, kyma.Spec.Channel).
+				Should(Succeed())
+		})
+
+		It("Then ModuleTemplate is no longer in SKR Cluster", func() {
+			Eventually(ModuleTemplateExists).
+				WithContext(ctx).
+				WithArguments(runtimeClient, module, kyma.Spec.Channel).
+				Should(Equal(ErrNotFound))
+		})
 	})
 })
diff --git a/tests/integration/controller/controlplane/kyma_remote_sync_test.go b/tests/integration/controller/controlplane/kyma_remote_sync_test.go
index 059bed819c..b3cb22c199 100644
--- a/tests/integration/controller/controlplane/kyma_remote_sync_test.go
+++ b/tests/integration/controller/controlplane/kyma_remote_sync_test.go
@@ -97,11 +97,11 @@ var _ = Describe("Kyma sync into Remote Cluster", Ordered, func() {
 			WithArguments(SKRTemplate).
 			Should(Succeed())
 		By("ModuleTemplate exists in KCP cluster")
-		Eventually(RegularModuleTemplateExists, Timeout, Interval).
+		Eventually(ModuleTemplateExists, Timeout, Interval).
 			WithArguments(ctx, controlPlaneClient, moduleInKCP, kyma.Spec.Channel).
 			Should(Succeed())
 		By("ModuleTemplate exists in SKR cluster")
-		Eventually(RegularModuleTemplateExists, Timeout, Interval).WithArguments(ctx, runtimeClient, moduleInKCP,
+		Eventually(ModuleTemplateExists, Timeout, Interval).WithArguments(ctx, runtimeClient, moduleInKCP,
 			kyma.Spec.Channel).Should(Succeed())
 
 		By("No module synced to remote Kyma")
@@ -111,7 +111,7 @@ var _ = Describe("Kyma sync into Remote Cluster", Ordered, func() {
 			Should(Succeed())
 
 		By("Remote Module Catalog created")
-		Eventually(RegularModuleTemplateExists, Timeout, Interval).
+		Eventually(ModuleTemplateExists, Timeout, Interval).
 			WithArguments(ctx, runtimeClient, moduleInSKR, kyma.Spec.Channel).
 			Should(Succeed())
 		Eventually(containsModuleTemplateCondition, Timeout, Interval).