diff --git a/tests/data_protection/oadp/test_velero_backup_hooks.py b/tests/data_protection/oadp/test_velero_backup_hooks.py
new file mode 100644
index 0000000000..4ad143d986
--- /dev/null
+++ b/tests/data_protection/oadp/test_velero_backup_hooks.py
@@ -0,0 +1,51 @@
+"""
+Velero Backup Hook Opt-Out Tests
+
+STP: https://github.com/RedHatQE/openshift-virtualization-tests-design-docs/blob/main/stps/sig-storage/remove-velero-hooks-stp.md
+Jira: https://redhat.atlassian.net/browse/CNV-79727 # <skip-jira-utils-check>
+"""
+
+import pytest
+
+
+class TestVeleroBackupHookOptOut:
+    """
+    Tests for Velero backup hook opt-out with backup/restore operations.
+
+    Preconditions:
+        - VM with backup hooks disabled
+    """
+
+    __test__ = False
+
+    @pytest.mark.polarion("CNV-16267")
+    def test_backup_paused_vm_hooks_disabled(self):
+        """
+        Test that backup of paused VM completes with hooks disabled.
+
+        Preconditions:
+            - VM with backup hooks disabled, paused
+
+        Steps:
+            1. Run Velero backup
+
+        Expected:
+            Backup completes successfully without freeze/unfreeze hook execution
+        """
+
+    @pytest.mark.polarion("CNV-16268")
+    def test_full_backup_restore_hooks_disabled(self):
+        """
+        Test that full backup/restore cycle completes with hooks disabled.
+
+        Preconditions:
+            - Running VM with backup hooks disabled
+
+        Steps:
+            1. Run Velero backup
+            2. Delete VM and namespace
+            3. Restore from backup
+
+        Expected:
+            VM is restored and running after backup/restore cycle
+        """