diff --git a/.gitignore b/.gitignore
index e7a69ebd4f..3b5f624836 100644
--- a/.gitignore
+++ b/.gitignore
@@ -24,6 +24,11 @@ test/e2e/images
 go.work
 go.work.sum
 
+# Common editor / temporary files
+*~
+*.tmp
+.DS_Store
+
 # Tilt files.
 .tiltbuild
 /tilt.d
diff --git a/test/e2e/config/fixture.yaml b/test/e2e/config/fixture.yaml
index f8da4bf414..1055a59418 100644
--- a/test/e2e/config/fixture.yaml
+++ b/test/e2e/config/fixture.yaml
@@ -15,6 +15,7 @@ variables:
   DEPLOY_BMO: "true"
   DEPLOY_CERT_MANAGER: "true"
   BMO_KUSTOMIZATION: "../../config/overlays/fixture"
+  EXPECTED_HOST_NAME: ""
   # Test credentials. The tests will create a BMH with these.
   # For the fixture provider it does not matter much what we put here.
   BMC_USER: admin
diff --git a/test/e2e/config/ironic.yaml b/test/e2e/config/ironic.yaml
index 8841ea4484..a2cb5a629e 100644
--- a/test/e2e/config/ironic.yaml
+++ b/test/e2e/config/ironic.yaml
@@ -19,6 +19,7 @@ variables:
   DEPLOY_CERT_MANAGER: "true"
   BMO_KUSTOMIZATION: "../../config/overlays/e2e"
   IRONIC_KUSTOMIZATION: "../../ironic-deployment/overlays/e2e"
+  EXPECTED_HOST_NAME: "localhost.localdomain"
   # Test credentials. The tests will create a BMH with these.
   BMC_USER: admin
   BMC_PASSWORD: password
diff --git a/test/e2e/re_inspection_test.go b/test/e2e/re_inspection_test.go
new file mode 100644
index 0000000000..e9b486f7d9
--- /dev/null
+++ b/test/e2e/re_inspection_test.go
@@ -0,0 +1,137 @@
+package e2e
+
+import (
+	"context"
+	"fmt"
+	"strings"
+
+	. "github.com/onsi/ginkgo/v2"
+	. "github.com/onsi/gomega"
+	corev1 "k8s.io/api/core/v1"
+	metav1 "k8s.io/apimachinery/pkg/apis/meta/v1"
+	"k8s.io/apimachinery/pkg/types"
+	"k8s.io/utils/pointer"
+	"sigs.k8s.io/cluster-api/test/framework"
+	"sigs.k8s.io/cluster-api/util"
+
+	capm3_e2e "github.com/metal3-io/cluster-api-provider-metal3/test/e2e"
+
+	metal3api "github.com/metal3-io/baremetal-operator/apis/metal3.io/v1alpha1"
+)
+
+var _ = Describe("Re-Inspection", func() {
+	var (
+		specName         = "re-inspection"
+		namespace        *corev1.Namespace
+		cancelWatches    context.CancelFunc
+		bmcUser          string
+		bmcPassword      string
+		bmcAddress       string
+		bootMacAddress   string
+		expectedHostName string
+	)
+	const (
+		wrongHostName = "wrongHostName"
+	)
+	BeforeEach(func() {
+		bmcUser = e2eConfig.GetVariable("BMC_USER")
+		bmcPassword = e2eConfig.GetVariable("BMC_PASSWORD")
+		bmcAddress = e2eConfig.GetVariable("BMC_ADDRESS")
+		bootMacAddress = e2eConfig.GetVariable("BOOT_MAC_ADDRESS")
+		expectedHostName = e2eConfig.GetVariable("EXPECTED_HOST_NAME")
+
+		namespace, cancelWatches = framework.CreateNamespaceAndWatchEvents(ctx, framework.CreateNamespaceAndWatchEventsInput{
+			Creator:   clusterProxy.GetClient(),
+			ClientSet: clusterProxy.GetClientSet(),
+			Name:      fmt.Sprintf("%s-%s", specName, util.RandomString(6)),
+			LogFolder: artifactFolder,
+		})
+	})
+
+	It("should re-inspect the annotated BMH", func() {
+		By("creating a secret with BMH credentials")
+		bmcCredentials := corev1.Secret{
+			ObjectMeta: metav1.ObjectMeta{
+				Name:      "bmc-credentials",
+				Namespace: namespace.Name,
+			},
+			StringData: map[string]string{
+				"username": bmcUser,
+				"password": bmcPassword,
+			},
+		}
+		err := clusterProxy.GetClient().Create(ctx, &bmcCredentials)
+		Expect(err).NotTo(HaveOccurred())
+
+		By("creating a BMH with inspection disabled and hardware details added with wrong HostName")
+		newHardwareDetails := strings.Replace(hardwareDetails, "localhost.localdomain", wrongHostName, 1)
+		bmh := metal3api.BareMetalHost{
+			ObjectMeta: metav1.ObjectMeta{
+				Name:      specName + "-reinspect",
+				Namespace: namespace.Name,
+				Annotations: map[string]string{
+					metal3api.InspectAnnotationPrefix:   "disabled",
+					metal3api.HardwareDetailsAnnotation: newHardwareDetails,
+				},
+			},
+			Spec: metal3api.BareMetalHostSpec{
+				BMC: metal3api.BMCDetails{
+					Address:         bmcAddress,
+					CredentialsName: "bmc-credentials",
+				},
+				BootMode:       metal3api.Legacy,
+				BootMACAddress: bootMacAddress,
+			},
+		}
+		err = clusterProxy.GetClient().Create(ctx, &bmh)
+		Expect(err).NotTo(HaveOccurred())
+
+		By("waiting for the BMH to be in registering state")
+		WaitForBmhInProvisioningState(ctx, WaitForBmhInProvisioningStateInput{
+			Client: clusterProxy.GetClient(),
+			Bmh:    bmh,
+			State:  metal3api.StateRegistering,
+		}, e2eConfig.GetIntervals(specName, "wait-registering")...)
+
+		By("waiting for the BMH to become available")
+		WaitForBmhInProvisioningState(ctx, WaitForBmhInProvisioningStateInput{
+			Client: clusterProxy.GetClient(),
+			Bmh:    bmh,
+			State:  metal3api.StateAvailable,
+		}, e2eConfig.GetIntervals(specName, "wait-available")...)
+
+		By("checking that the BMH has wrong HostName")
+		key := types.NamespacedName{Namespace: bmh.Namespace, Name: bmh.Name}
+		Expect(clusterProxy.GetClient().Get(ctx, key, &bmh)).To(Succeed())
+		Expect(bmh.Status.HardwareDetails.Hostname).To(Equal(wrongHostName))
+
+		By("removing HardwareDetailsAnnotation")
+		capm3_e2e.AnnotateBmh(ctx, clusterProxy.GetClient(), bmh, metal3api.HardwareDetailsAnnotation, nil)
+
+		By("adding InspectAnnotation to re-inspect")
+		capm3_e2e.AnnotateBmh(ctx, clusterProxy.GetClient(), bmh, metal3api.InspectAnnotationPrefix, pointer.String(""))
+
+		By("waiting for the BMH to be in inspecting state after inspection annotaion")
+		WaitForBmhInProvisioningState(ctx, WaitForBmhInProvisioningStateInput{
+			Client: clusterProxy.GetClient(),
+			Bmh:    bmh,
+			State:  metal3api.StateInspecting,
+		}, e2eConfig.GetIntervals(specName, "wait-inspecting")...)
+
+		By("waiting for the BMH to become available after re-inspection")
+		WaitForBmhInProvisioningState(ctx, WaitForBmhInProvisioningStateInput{
+			Client: clusterProxy.GetClient(),
+			Bmh:    bmh,
+			State:  metal3api.StateAvailable,
+		}, e2eConfig.GetIntervals(specName, "wait-available")...)
+
+		By("checking that the hardware details are corrected after re-inspection")
+		key = types.NamespacedName{Namespace: bmh.Namespace, Name: bmh.Name}
+		Expect(clusterProxy.GetClient().Get(ctx, key, &bmh)).To(Succeed())
+		Expect(bmh.Status.HardwareDetails.Hostname).To(Equal(expectedHostName))
+	})
+
+	AfterEach(func() {
+		cleanup(ctx, clusterProxy, namespace, cancelWatches, e2eConfig.GetIntervals("default", "wait-namespace-deleted")...)
+	})
+})