diff --git a/.github/workflows/e2e.yaml b/.github/workflows/e2e.yaml
index ca3b4645..58ca89ed 100644
--- a/.github/workflows/e2e.yaml
+++ b/.github/workflows/e2e.yaml
@@ -19,8 +19,7 @@ jobs:
         go-version-file: go.mod
 
     - name: Run the extension developer e2e test
-      run: |
-        make extension-developer-e2e
+      run: make extension-developer-e2e
 
   e2e-kind:
     runs-on: ubuntu-latest
@@ -48,3 +47,15 @@ jobs:
           files: e2e-cover.out
           flags: e2e
           token: ${{ secrets.CODECOV_TOKEN }}
+
+  upgrade-e2e:
+    runs-on: ubuntu-latest
+    steps:
+    - uses: actions/checkout@v4
+
+    - uses: actions/setup-go@v5
+      with:
+        go-version-file: go.mod
+
+    - name: Run the upgrade e2e test
+      run: make test-upgrade-e2e
diff --git a/Makefile b/Makefile
index c2af631b..a5db041e 100644
--- a/Makefile
+++ b/Makefile
@@ -158,6 +158,24 @@ test-e2e: run image-registry build-push-e2e-catalog registry-load-bundles e2e e2
 extension-developer-e2e: KIND_CLUSTER_NAME := operator-controller-ext-dev-e2e  #EXHELP Run extension-developer e2e on local kind cluster
 extension-developer-e2e: run image-registry test-ext-dev-e2e kind-clean
 
+.PHONY: run-latest-release
+run-latest-release:
+	curl -L -s https://github.com/operator-framework/operator-controller/releases/latest/download/install.sh | bash -s
+
+.PHONY: pre-upgrade-setup
+pre-upgrade-setup:
+	./hack/pre-upgrade-setup.sh $(CATALOG_IMG) $(TEST_CLUSTER_CATALOG_NAME) $(TEST_CLUSTER_EXTENSION_NAME)
+
+.PHONY: post-upgrade-checks
+post-upgrade-checks:
+	./hack/post-upgrade-checks.sh $(TEST_CLUSTER_CATALOG_NAME) $(TEST_CLUSTER_EXTENSION_NAME)
+
+.PHONY: test-upgrade-e2e
+test-upgrade-e2e: KIND_CLUSTER_NAME := operator-controller-upgrade-e2e
+test-upgrade-e2e: TEST_CLUSTER_CATALOG_NAME := test-catalog
+test-upgrade-e2e: TEST_CLUSTER_EXTENSION_NAME := test-package
+test-upgrade-e2e: kind-cluster run-latest-release image-registry build-push-e2e-catalog registry-load-bundles pre-upgrade-setup docker-build kind-load kind-deploy post-upgrade-checks kind-clean #HELP Run upgrade e2e tests on a local kind cluster
+
 .PHONY: e2e-coverage
 e2e-coverage:
 	COVERAGE_OUTPUT=./e2e-cover.out ./hack/e2e-coverage.sh
diff --git a/hack/post-upgrade-checks.sh b/hack/post-upgrade-checks.sh
new file mode 100755
index 00000000..78fe04f5
--- /dev/null
+++ b/hack/post-upgrade-checks.sh
@@ -0,0 +1,22 @@
+#!/bin/bash
+
+set -euo pipefail
+
+help="post-upgrade-checks.sh is used to perform tests after upgrade from the previous release.
+
+Usage:
+  post-upgrade-checks.sh [TEST_CLUSTER_CATALOG_NAME] [TEST_CLUSTER_EXTENSION_NAME]
+"
+
+if [[ "$#" -ne 2 ]]; then
+  echo "Illegal number of arguments passed"
+  echo "${help}"
+  exit 1
+fi
+
+TEST_CLUSTER_CATALOG_NAME=$1
+TEST_CLUSTER_EXTENSION_NAME=$2
+
+kubectl wait --for=condition=Available --timeout=60s -n olmv1-system deployment --all
+kubectl wait --for=condition=Unpacked --timeout=60s ClusterCatalog $TEST_CLUSTER_CATALOG_NAME
+kubectl wait --for=condition=Installed --timeout=60s ClusterExtension $TEST_CLUSTER_EXTENSION_NAME
diff --git a/hack/pre-upgrade-setup.sh b/hack/pre-upgrade-setup.sh
new file mode 100755
index 00000000..07243c0e
--- /dev/null
+++ b/hack/pre-upgrade-setup.sh
@@ -0,0 +1,48 @@
+#!/bin/bash
+
+set -euo pipefail
+
+help="pre-upgrade-setup.sh is used to create some basic resources
+which will later be used in upgrade testing.
+
+Usage:
+  post-upgrade-checks.sh [TEST_CATALOG_IMG] [TEST_CATALOG_NAME] [TEST_CLUSTER_EXTENSION_NAME]
+"
+
+if [[ "$#" -ne 3 ]]; then
+  echo "Illegal number of arguments passed"
+  echo "${help}"
+  exit 1
+fi
+
+TEST_CATALOG_IMG=$1
+TEST_CLUSTER_CATALOG_NAME=$2
+TEST_CLUSTER_EXTENSION_NAME=$3
+
+kubectl apply -f - << EOF
+apiVersion: catalogd.operatorframework.io/v1alpha1
+kind: ClusterCatalog
+metadata:
+  name: ${TEST_CLUSTER_CATALOG_NAME}
+spec:
+  source:
+    type: image
+    image:
+      ref: ${TEST_CATALOG_IMG}
+      pollInterval: 24h
+      insecureSkipTLSVerify: true
+EOF
+
+
+kubectl apply -f - << EOF
+apiVersion: olm.operatorframework.io/v1alpha1
+kind: ClusterExtension
+metadata:
+  name: ${TEST_CLUSTER_EXTENSION_NAME}
+spec:
+  installNamespace: default
+  packageName: prometheus
+EOF
+
+kubectl wait --for=condition=Unpacked --timeout=60s ClusterCatalog $TEST_CLUSTER_CATALOG_NAME
+kubectl wait --for=condition=Installed --timeout=60s ClusterExtension $TEST_CLUSTER_EXTENSION_NAME