diff --git a/pkg/background/update_request_controller.go b/pkg/background/update_request_controller.go
index b9223be6fad6..4de7b79b8b5c 100644
--- a/pkg/background/update_request_controller.go
+++ b/pkg/background/update_request_controller.go
@@ -99,7 +99,7 @@ func NewController(
 	})
 	polInformer.Informer().AddEventHandler(cache.ResourceEventHandlerFuncs{
 		UpdateFunc: c.updatePolicy,
-		DeleteFunc: c.deletePolicy,
+		DeleteFunc: c.deleteNSPolicy,
 	})
 
 	c.informersSynced = []cache.InformerSynced{cpolInformer.Informer().HasSynced, polInformer.Informer().HasSynced, urInformer.Informer().HasSynced, namespaceInformer.Informer().HasSynced, podInformer.Informer().HasSynced}
@@ -370,6 +370,50 @@ func (c *controller) deletePolicy(obj interface{}) {
 	}
 }
 
+func (c *controller) deleteNSPolicy(obj interface{}) {
+	p, ok := kubeutils.GetObjectWithTombstone(obj).(*kyvernov1.Policy)
+	if !ok {
+		logger.Info("Failed to get deleted object", "obj", obj)
+		return
+	}
+
+	logger.V(4).Info("deleting policy", "name", p.Name)
+	key, err := cache.MetaNamespaceKeyFunc(kubeutils.GetObjectWithTombstone(obj))
+	if err != nil {
+		logger.Error(err, "failed to load policy key")
+	} else {
+		logger.V(4).Info("updating policy", "key", key)
+
+		// check if deleted policy is clone generate policy
+		generatePolicyWithClone := pkgCommon.ProcessDeletePolicyForCloneGenerateRule(p, c.client, c.kyvernoClient, c.urLister, p.GetName(), logger)
+
+		// get the generated resource name from update request
+		selector := labels.SelectorFromSet(labels.Set(map[string]string{
+			kyvernov1beta1.URGeneratePolicyLabel: p.Name,
+		}))
+
+		urList, err := c.urLister.List(selector)
+		if err != nil {
+			logger.Error(err, "failed to get ur for resource", "label", kyvernov1beta1.URGeneratePolicyLabel)
+			return
+		}
+
+		if !generatePolicyWithClone {
+			// re-evaluate the UR as the policy was updated
+			for _, ur := range urList {
+				logger.V(4).Info("enqueue the ur for cleanup", "ur", ur.Name)
+				c.enqueueUpdateRequest(ur)
+			}
+		} else {
+			for _, ur := range urList {
+				for _, generatedResource := range ur.Status.GeneratedResources {
+					logger.V(4).Info("retaining resource for cloned policy", "apiVersion", generatedResource.APIVersion, "kind", generatedResource.Kind, "name", generatedResource.Name, "namespace", generatedResource.Namespace)
+				}
+			}
+		}
+	}
+}
+
 func (c *controller) addUR(obj interface{}) {
 	ur := obj.(*kyvernov1beta1.UpdateRequest)
 	c.enqueueUpdateRequest(ur)