diff --git a/src/pkg/cluster/namespace.go b/src/pkg/cluster/namespace.go
index f7e776146d..6a35ee6a56 100644
--- a/src/pkg/cluster/namespace.go
+++ b/src/pkg/cluster/namespace.go
@@ -67,6 +67,5 @@ func AdoptZarfManagedLabels(labels map[string]string) map[string]string {
 		labels = make(map[string]string)
 	}
 	labels[k8s.ZarfManagedByLabel] = "zarf"
-	delete(labels, k8s.AgentLabel)
 	return labels
 }
diff --git a/src/test/e2e/26_simple_packages_test.go b/src/test/e2e/26_simple_packages_test.go
index c7a96e80d6..347aad89fd 100644
--- a/src/test/e2e/26_simple_packages_test.go
+++ b/src/test/e2e/26_simple_packages_test.go
@@ -65,3 +65,19 @@ func TestManifests(t *testing.T) {
 	stdOut, stdErr, err = e2e.Zarf("package", "remove", "manifests", "--confirm")
 	require.NoError(t, err, stdOut, stdErr)
 }
+
+func TestAgentIgnore(t *testing.T) {
+	t.Log("E2E: Test Manifests that are Agent Ignored")
+	e2e.SetupWithCluster(t)
+
+	testCreate := filepath.Join("src", "test", "packages", "26-agent-ignore")
+	testDeploy := filepath.Join("build", fmt.Sprintf("zarf-package-agent-ignore-namespace-%s.tar.zst", e2e.Arch))
+
+	// Create the agent ignore test package
+	stdOut, stdErr, err := e2e.Zarf("package", "create", testCreate, "-o", "build", "--confirm")
+	require.NoError(t, err, stdOut, stdErr)
+
+	// Deploy the agent ignore test package
+	stdOut, stdErr, err = e2e.Zarf("package", "deploy", testDeploy, "--confirm")
+	require.NoError(t, err, stdOut, stdErr)
+}
diff --git a/src/test/packages/26-agent-ignore/manifests/deployment.yaml b/src/test/packages/26-agent-ignore/manifests/deployment.yaml
new file mode 100644
index 0000000000..46bbab17c1
--- /dev/null
+++ b/src/test/packages/26-agent-ignore/manifests/deployment.yaml
@@ -0,0 +1,20 @@
+apiVersion: apps/v1
+kind: Deployment
+metadata:
+  name: httpd-deployment
+spec:
+  selector:
+    matchLabels:
+      app: httpd
+  replicas: 2 # tells deployment to run 2 pods matching the template
+  template:
+    metadata:
+      labels:
+        app: httpd
+    spec:
+      containers:
+      - name: httpd
+        # This is explicitly a different tag than examples/manifests to ensure it has to pull the image from outside the cluster
+        image: "httpd:alpine"
+        ports:
+        - containerPort: 80
diff --git a/src/test/packages/26-agent-ignore/manifests/namespace.yaml b/src/test/packages/26-agent-ignore/manifests/namespace.yaml
new file mode 100644
index 0000000000..53e30073c4
--- /dev/null
+++ b/src/test/packages/26-agent-ignore/manifests/namespace.yaml
@@ -0,0 +1,6 @@
+apiVersion: v1
+kind: Namespace
+metadata:
+  name: httpd-ignored
+  labels:
+    zarf.dev/agent: ignore
diff --git a/src/test/packages/26-agent-ignore/zarf.yaml b/src/test/packages/26-agent-ignore/zarf.yaml
new file mode 100644
index 0000000000..d945eef803
--- /dev/null
+++ b/src/test/packages/26-agent-ignore/zarf.yaml
@@ -0,0 +1,23 @@
+kind: ZarfPackageConfig
+metadata:
+  name: agent-ignore-namespace
+  description: Simple test to check that Zarf respects ignored namespaces.
+
+components:
+  - name: httpd-deployment
+    required: true
+    manifests:
+      - name: agent-ignore-httpd
+        namespace: httpd-ignored
+        files:
+          - manifests/deployment.yaml
+          - manifests/namespace.yaml
+    actions:
+      onDeploy:
+        after:
+          - wait:
+              cluster:
+                kind: deployment
+                name: httpd-deployment
+                namespace: httpd-ignored
+                condition: "{.status.readyReplicas}=2"