diff --git a/.github/workflows/test-e2e-samples.yml b/.github/workflows/test-e2e-samples.yml
index fd58dae46c7..41b54f871bb 100644
--- a/.github/workflows/test-e2e-samples.yml
+++ b/.github/workflows/test-e2e-samples.yml
@@ -59,9 +59,7 @@ jobs:
           make generate
           make manifests
 
-# Fixme: The e2e tests for deploy image are failing and we
-# need to fix in a follow up
-#      - name: Testing make test-e2e for project-v4-with-deploy-image
-#        working-directory: testdata/project-v4-with-deploy-image
-#        run: |
-#          make test-e2e
+      - name: Testing make test-e2e for project-v4-with-deploy-image
+        working-directory: testdata/project-v4-with-deploy-image
+        run: |
+          make test-e2e
diff --git a/test/testdata/generate.sh b/test/testdata/generate.sh
index 5a517bdf9b7..1781bc6de62 100755
--- a/test/testdata/generate.sh
+++ b/test/testdata/generate.sh
@@ -92,7 +92,7 @@ function scaffold_test_project {
       $kb create api --group example.com --version v1alpha1 --kind Memcached --image=memcached:memcached:1.6.26-alpine3.19 --image-container-command="memcached,-m=64,-o,modern,-v" --image-container-port="11211" --run-as-user="1001" --plugins="deploy-image/v1-alpha" --make=false
       $kb create api --group example.com --version v1alpha1 --kind Busybox --image=busybox:1.36.1 --plugins="deploy-image/v1-alpha" --make=false
       header_text 'Creating Memcached webhook ...'
-      $kb create webhook --group example.com --version v1alpha1 --kind Memcached --programmatic-validation
+      $kb create webhook --group example.com --version v1alpha1 --kind Memcached --defaulting --programmatic-validation
   fi
 
   if [[ $project == project-v4-with-grafana ]]; then
diff --git a/testdata/project-v4-with-deploy-image/PROJECT b/testdata/project-v4-with-deploy-image/PROJECT
index 1b2ee48a339..beed2814c3f 100644
--- a/testdata/project-v4-with-deploy-image/PROJECT
+++ b/testdata/project-v4-with-deploy-image/PROJECT
@@ -36,6 +36,7 @@ resources:
   path: sigs.k8s.io/kubebuilder/testdata/project-v4-with-deploy-image/api/v1alpha1
   version: v1alpha1
   webhooks:
+    defaulting: true
     validation: true
     webhookVersion: v1
 - api:
diff --git a/testdata/project-v4-with-deploy-image/api/v1alpha1/memcached_webhook.go b/testdata/project-v4-with-deploy-image/api/v1alpha1/memcached_webhook.go
index 89819d050f5..f631533d639 100644
--- a/testdata/project-v4-with-deploy-image/api/v1alpha1/memcached_webhook.go
+++ b/testdata/project-v4-with-deploy-image/api/v1alpha1/memcached_webhook.go
@@ -37,6 +37,17 @@ func (r *Memcached) SetupWebhookWithManager(mgr ctrl.Manager) error {
 
 // TODO(user): EDIT THIS FILE!  THIS IS SCAFFOLDING FOR YOU TO OWN!
 
+// +kubebuilder:webhook:path=/mutate-example-com-testproject-org-v1alpha1-memcached,mutating=true,failurePolicy=fail,sideEffects=None,groups=example.com.testproject.org,resources=memcacheds,verbs=create;update,versions=v1alpha1,name=mmemcached.kb.io,admissionReviewVersions=v1
+
+var _ webhook.Defaulter = &Memcached{}
+
+// Default implements webhook.Defaulter so a webhook will be registered for the type
+func (r *Memcached) Default() {
+	memcachedlog.Info("default", "name", r.Name)
+
+	// TODO(user): fill in your defaulting logic.
+}
+
 // TODO(user): change verbs to "verbs=create;update;delete" if you want to enable deletion validation.
 // NOTE: The 'path' attribute must follow a specific pattern and should not be modified directly here.
 // Modifying the path for an invalid path can cause API server errors; failing to locate the webhook.
diff --git a/testdata/project-v4-with-deploy-image/api/v1alpha1/memcached_webhook_test.go b/testdata/project-v4-with-deploy-image/api/v1alpha1/memcached_webhook_test.go
index 39c2ed23133..3269398e4f9 100644
--- a/testdata/project-v4-with-deploy-image/api/v1alpha1/memcached_webhook_test.go
+++ b/testdata/project-v4-with-deploy-image/api/v1alpha1/memcached_webhook_test.go
@@ -22,6 +22,14 @@ import (
 
 var _ = Describe("Memcached Webhook", func() {
 
+	Context("When creating Memcached under Defaulting Webhook", func() {
+		It("Should fill in the default value if a required field is empty", func() {
+
+			// TODO(user): Add your logic here
+
+		})
+	})
+
 	Context("When creating Memcached under Validating Webhook", func() {
 		It("Should deny if a required field is empty", func() {
 
diff --git a/testdata/project-v4-with-deploy-image/config/webhook/manifests.yaml b/testdata/project-v4-with-deploy-image/config/webhook/manifests.yaml
index 135b03ac0d3..34833909a2c 100644
--- a/testdata/project-v4-with-deploy-image/config/webhook/manifests.yaml
+++ b/testdata/project-v4-with-deploy-image/config/webhook/manifests.yaml
@@ -1,5 +1,31 @@
 ---
 apiVersion: admissionregistration.k8s.io/v1
+kind: MutatingWebhookConfiguration
+metadata:
+  name: mutating-webhook-configuration
+webhooks:
+- admissionReviewVersions:
+  - v1
+  clientConfig:
+    service:
+      name: webhook-service
+      namespace: system
+      path: /mutate-example-com-testproject-org-v1alpha1-memcached
+  failurePolicy: Fail
+  name: mmemcached.kb.io
+  rules:
+  - apiGroups:
+    - example.com.testproject.org
+    apiVersions:
+    - v1alpha1
+    operations:
+    - CREATE
+    - UPDATE
+    resources:
+    - memcacheds
+  sideEffects: None
+---
+apiVersion: admissionregistration.k8s.io/v1
 kind: ValidatingWebhookConfiguration
 metadata:
   name: validating-webhook-configuration
diff --git a/testdata/project-v4-with-deploy-image/dist/install.yaml b/testdata/project-v4-with-deploy-image/dist/install.yaml
index 4e29265f0ae..df2ac73a9b0 100644
--- a/testdata/project-v4-with-deploy-image/dist/install.yaml
+++ b/testdata/project-v4-with-deploy-image/dist/install.yaml
@@ -652,6 +652,32 @@ spec:
           secretName: webhook-server-cert
 ---
 apiVersion: admissionregistration.k8s.io/v1
+kind: MutatingWebhookConfiguration
+metadata:
+  name: project-v4-with-deploy-image-mutating-webhook-configuration
+webhooks:
+- admissionReviewVersions:
+  - v1
+  clientConfig:
+    service:
+      name: project-v4-with-deploy-image-webhook-service
+      namespace: project-v4-with-deploy-image-system
+      path: /mutate-example-com-testproject-org-v1alpha1-memcached
+  failurePolicy: Fail
+  name: mmemcached.kb.io
+  rules:
+  - apiGroups:
+    - example.com.testproject.org
+    apiVersions:
+    - v1alpha1
+    operations:
+    - CREATE
+    - UPDATE
+    resources:
+    - memcacheds
+  sideEffects: None
+---
+apiVersion: admissionregistration.k8s.io/v1
 kind: ValidatingWebhookConfiguration
 metadata:
   name: project-v4-with-deploy-image-validating-webhook-configuration