diff --git a/.pipelines/singletenancy/cilium-overlay/cilium-overlay-e2e-step-template.yaml b/.pipelines/singletenancy/cilium-overlay/cilium-overlay-e2e-step-template.yaml
index 19c26dabce..4d0e2e046d 100644
--- a/.pipelines/singletenancy/cilium-overlay/cilium-overlay-e2e-step-template.yaml
+++ b/.pipelines/singletenancy/cilium-overlay/cilium-overlay-e2e-step-template.yaml
@@ -158,6 +158,11 @@ steps:
   - script: |
       echo "validate pod IP assignment and check systemd-networkd restart"
       kubectl get pod -owide -A
+      if [ "$CILIUM_VERSION_TAG" = "cilium-nightly-pipeline" ]; then
+        echo "Check cilium identities in cilium-test namepsace during nightly run"
+        echo "expect the identities to be deleted when the namespace is deleted"
+        kubectl get ciliumidentity | grep cilium-test
+      fi
       make test-validate-state
       echo "delete cilium connectivity test resources and re-validate state"
       kubectl delete ns cilium-test
@@ -166,6 +171,33 @@ steps:
     name: "validatePods"
     displayName: "Validate Pods"
 
+  - script: |
+      if [ "$CILIUM_VERSION_TAG" = "cilium-nightly-pipeline" ]; then 
+        kubectl get pod -owide -n cilium-test
+        echo "wait for pod and cilium identity deletion in cilium-test namespace"
+        ns="cilium-test"
+        while true; do
+          pods=$(kubectl get pods -n $ns --no-headers=true 2>/dev/null)
+          if [[ -z "$pods" ]]; then
+            echo "No pods found"
+              break
+          fi
+          sleep 2s
+        done
+        sleep 20s
+        echo "Verify cilium identities are deleted from cilium-test"
+        checkIdentity="$(kubectl get ciliumidentity -o json | grep cilium-test | jq -e 'length == 0')"
+        if [[ -n $checkIdentity ]]; then
+          echo "##[error]Cilium Identities still present in cilium-test namespace"
+        else
+          printf -- "Identities deleted from cilium-test namespace\n"
+        fi 
+      else
+        echo "skip cilium identities check for PR pipeline"
+      fi
+    name: "CiliumIdentities"
+    displayName: "Verify Cilium Identities Deletion"
+
   - script: |
       echo "validate pod IP assignment before CNS restart"
       kubectl get pod -owide -A
diff --git a/test/integration/manifests/cilium/deployment.yaml b/test/integration/manifests/cilium/deployment.yaml
index ac09173c36..2842221eee 100644
--- a/test/integration/manifests/cilium/deployment.yaml
+++ b/test/integration/manifests/cilium/deployment.yaml
@@ -36,6 +36,8 @@ spec:
         args:
         - --config-dir=/tmp/cilium/config-map
         - --debug=$(CILIUM_DEBUG)
+        - --identity-gc-interval=0m20s
+        - --identity-heartbeat-timeout=0m20s
         env:
         - name: K8S_NODE_NAME
           valueFrom: