diff --git a/test/integration/cluster_placement_test.go b/test/integration/cluster_placement_test.go
index 114cd41ac..efe61f052 100644
--- a/test/integration/cluster_placement_test.go
+++ b/test/integration/cluster_placement_test.go
@@ -1023,8 +1023,144 @@ var _ = Describe("Test Cluster Resource Placement Controller", func() {
 			markInternalMCJoined(clusterA)
 		})
 
-		XIt("Test  cluster scoped resource change unpick by a placement", func() {
+		It("Test cluster scoped resource change unpick by a placement", func() {
+			By("create cluster role binding")
+			crb := &rbacv1.ClusterRoleBinding{
+				ObjectMeta: metav1.ObjectMeta{
+					Name: "test-cluster-role-binding",
+					Labels: map[string]string{
+						"fleet.azure.com/name": "test",
+					},
+				},
+				RoleRef: rbacv1.RoleRef{
+					APIGroup: rbacv1.GroupName,
+					Kind:     ClusterRoleKind,
+					Name:     "test-cluster-role",
+				},
+			}
+			Expect(k8sClient.Create(ctx, crb)).Should(Succeed())
+
+			By("create cluster resource placement")
+			crp = &fleetv1alpha1.ClusterResourcePlacement{
+				ObjectMeta: metav1.ObjectMeta{
+					Name: "resource-select",
+				},
+				Spec: fleetv1alpha1.ClusterResourcePlacementSpec{
+					ResourceSelectors: []fleetv1alpha1.ClusterResourceSelector{
+						{
+							Group:   rbacv1.GroupName,
+							Version: "v1",
+							Kind:    "ClusterRoleBinding",
+							LabelSelector: &metav1.LabelSelector{
+								MatchLabels: map[string]string{
+									"fleet.azure.com/name": "test",
+								},
+							},
+						},
+					},
+				},
+			}
+			Expect(k8sClient.Create(ctx, crp)).Should(Succeed())
+			By("Select resource by label clusterResourcePlacement created")
+
+			// verify that we have created the work object
+			var clusterWork workv1alpha1.Work
+			Eventually(func() error {
+				if err := k8sClient.Get(ctx, types.NamespacedName{
+					Name: crp.Name, Namespace: fmt.Sprintf(utils.NamespaceNameFormat, clusterA.Name)}, &clusterWork); err != nil {
+					return err
+				}
+				return nil
+			}, timeout, interval).Should(Succeed(), "Failed to retrieve %s work", crp.Name)
+
+			// Apply is Pending because work api controller is not being run for this test suite
+			fleetResourceIdentifier := fleetv1alpha1.ResourceIdentifier{
+				Group:   rbacv1.GroupName,
+				Version: "v1",
+				Kind:    "ClusterRoleBinding",
+				Name:    "test-cluster-role-binding",
+			}
+			wantCRPStatus := fleetv1alpha1.ClusterResourcePlacementStatus{
+				Conditions: []metav1.Condition{
+					{
+						Type:               string(fleetv1alpha1.ResourcePlacementConditionTypeScheduled),
+						Status:             metav1.ConditionTrue,
+						ObservedGeneration: 1,
+						Reason:             "ScheduleSucceeded",
+					},
+					{
+						Type:               string(fleetv1alpha1.ResourcePlacementStatusConditionTypeApplied),
+						Status:             metav1.ConditionUnknown,
+						ObservedGeneration: 1,
+						Reason:             "ApplyPending",
+					},
+				},
+				SelectedResources: []fleetv1alpha1.ResourceIdentifier{fleetResourceIdentifier},
+				TargetClusters:    []string{clusterA.Name},
+			}
+
+			crpStatusCmpOptions := []cmp.Option{
+				cmpopts.IgnoreFields(metav1.Condition{}, "LastTransitionTime", "Message"),
+				cmpopts.SortSlices(func(ref1, ref2 metav1.Condition) bool { return ref1.Type < ref2.Type }),
+			}
+
+			Eventually(func() error {
+				if err := k8sClient.Get(ctx, types.NamespacedName{Name: crp.Name}, crp); err != nil {
+					return err
+				}
+				if diff := cmp.Diff(wantCRPStatus, crp.Status, crpStatusCmpOptions...); diff != "" {
+					return fmt.Errorf("CRP status(%s) mismatch (-want +got):\n%s", crp.Name, diff)
+				}
+				return nil
+			}, timeout, interval).Should(Succeed(), "Failed to compare actual and expected CRP status in hub cluster")
+
+			Expect(k8sClient.Get(ctx, types.NamespacedName{Name: crp.Name}, crp)).Should(Succeed())
+			By("Update cluster role binding such that CRP doesn't pick it up")
+			crb.ObjectMeta.Labels = map[string]string{
+				"fleet.azure.com/env": "prod",
+			}
+			Expect(k8sClient.Update(ctx, crb)).Should(Succeed())
+
+			// verify that the work object created is not present anymore since we are not picking the cluster role binding
+			nsName := fmt.Sprintf(utils.NamespaceNameFormat, clusterA.Name)
+			Eventually(func() bool {
+				var clusterWork workv1alpha1.Work
+				return apierrors.IsNotFound(k8sClient.Get(ctx, types.NamespacedName{
+					Name:      crp.Name,
+					Namespace: nsName,
+				}, &clusterWork))
+			}, timeout, interval).Should(BeTrue())
+			By("Verified the work object is removed")
+
+			wantCRPStatus = fleetv1alpha1.ClusterResourcePlacementStatus{
+				Conditions: []metav1.Condition{
+					{
+						Type:               string(fleetv1alpha1.ResourcePlacementConditionTypeScheduled),
+						Status:             metav1.ConditionFalse,
+						ObservedGeneration: 1,
+						Reason:             "ScheduleFailed",
+					},
+					{
+						Type:               string(fleetv1alpha1.ResourcePlacementStatusConditionTypeApplied),
+						Status:             metav1.ConditionUnknown,
+						ObservedGeneration: 1,
+						Reason:             "ApplyPending",
+					},
+				},
+			}
+
+			Eventually(func() error {
+				if err := k8sClient.Get(ctx, types.NamespacedName{Name: crp.Name}, crp); err != nil {
+					return err
+				}
+				if diff := cmp.Diff(wantCRPStatus, crp.Status, crpStatusCmpOptions...); diff != "" {
+					return fmt.Errorf("CRP status(%s) mismatch (-want +got):\n%s", crp.Name, diff)
+				}
+				return nil
+			}, timeout, interval).Should(Succeed(), "Failed to compare actual and expected CRP status in hub cluster")
 
+			By("Delete cluster role binding")
+			Expect(k8sClient.Delete(ctx, crb)).Should(Succeed())
 		})
 
 		It("Test a cluster scoped resource selected by multiple placements", func() {