diff --git a/.github/workflows/e2e-testing.yaml b/.github/workflows/e2e-testing.yaml
index 308f3b5c7..bcbbcc9f1 100644
--- a/.github/workflows/e2e-testing.yaml
+++ b/.github/workflows/e2e-testing.yaml
@@ -63,7 +63,41 @@ jobs:
           MONGODB_ATLAS_SECRET_PROFILE: cfn-cloud-dev-github-action
         run: |
           cd cfn-resources/test/e2e/cluster
-          go test -timeout 90m -v cluster_test.go
+          go test -timeout 90m -v -run '^TestClusterCFN$' .
+
+  # Run idividual test in separate test group for parallel execution. 
+  # Due to usage of t.Setenv() in test code t.Parallel() is not possible.
+  # Having both tests run in same `go test` execution is not possible due to scripts used for private registry publishing modifying same files 
+  cluster-pause:
+    needs: change-detection
+    if: ${{ needs.change-detection.outputs.cluster == 'true' }}
+    runs-on: ubuntu-latest
+    steps:
+      - uses: actions/checkout@08c6903cd8c0fde910a37f88322edcfb5dd907a8
+      - uses: actions/setup-python@e797f83bcb11b83ae66e0230d6156d7c80228e7c
+        with:
+          python-version: '3.9'
+          cache: 'pip'
+      - run: pip install cloudformation-cli-go-plugin
+      - uses: actions/setup-go@44694675825211faa026b3c33043df3e48a5fa00
+        with:
+          go-version-file: 'cfn-resources/go.mod'
+      - uses: aws-actions/configure-aws-credentials@00943011d9042930efac3dcd3a170e4273319bc8
+        with:
+          aws-access-key-id: ${{ secrets.AWS_ACCESS_KEY_ID_TEST_ENV }}
+          aws-secret-access-key: ${{ secrets.AWS_SECRET_ACCESS_KEY_TEST_ENV }}
+          aws-region: eu-west-1
+      - name: Run E2E test
+        shell: bash
+        env:
+          MONGODB_ATLAS_PUBLIC_KEY: ${{ secrets.CLOUD_DEV_PUBLIC_KEY }}
+          MONGODB_ATLAS_PRIVATE_KEY: ${{ secrets.CLOUD_DEV_PRIVATE_KEY }}
+          MONGODB_ATLAS_ORG_ID: ${{ secrets.CLOUD_DEV_ORG_ID }}
+          MONGODB_ATLAS_BASE_URL: https://cloud-dev.mongodb.com/
+          MONGODB_ATLAS_SECRET_PROFILE: cfn-cloud-dev-github-action
+        run: |
+          cd cfn-resources/test/e2e/cluster
+          go test -timeout 90m -v -run '^TestClusterPauseCFN$' .    
   
   
   flex-cluster:
diff --git a/cfn-resources/cluster/cmd/resource/resource.go b/cfn-resources/cluster/cmd/resource/resource.go
index ffb0b89dc..d0fe60594 100644
--- a/cfn-resources/cluster/cmd/resource/resource.go
+++ b/cfn-resources/cluster/cmd/resource/resource.go
@@ -120,9 +120,19 @@ func Update(req handler.Request, prevModel *Model, currentModel *Model) (handler
 		return updateClusterCallback(client, currentModel, *currentModel.ProjectId)
 	}
 	currentModel.validateDefaultLabel()
+
+	currentCluster, resp, err := client.Atlas20231115014.ClustersApi.GetCluster(context.Background(), *currentModel.ProjectId, *currentModel.Name).Execute()
+	if pe := util.HandleClusterError(err, resp); pe != nil {
+		return *pe, nil
+	}
+
+	// Unpausing must be handled separately from other updates to avoid errors from the API.
+	if pe := handleUnpausingUpdate(client, currentCluster, currentModel); pe != nil {
+		return *pe, nil
+	}
+
 	adminCluster, errEvent := setClusterRequest(currentModel)
 	if len(adminCluster.GetReplicationSpecs()) > 0 {
-		currentCluster, _, _ := client.Atlas20231115014.ClustersApi.GetCluster(context.Background(), *currentModel.ProjectId, *currentModel.Name).Execute()
 		if currentCluster != nil {
 			adminCluster.ReplicationSpecs = AddReplicationSpecIDs(currentCluster.GetReplicationSpecs(), adminCluster.GetReplicationSpecs())
 		}
@@ -150,6 +160,15 @@ func Update(req handler.Request, prevModel *Model, currentModel *Model) (handler
 	return event, nil
 }
 
+func handleUnpausingUpdate(client *util.MongoDBClient, currentCluster *admin20231115014.AdvancedClusterDescription, currentModel *Model) *handler.ProgressEvent {
+	if (currentCluster.Paused != nil && *currentCluster.Paused) && (currentModel.Paused == nil || !*currentModel.Paused) {
+		_, resp, err := client.Atlas20231115014.ClustersApi.UpdateCluster(context.Background(), *currentModel.ProjectId, *currentModel.Name,
+			&admin20231115014.AdvancedClusterDescription{Paused: admin20231115014.PtrBool(false)}).Execute()
+		return util.HandleClusterError(err, resp)
+	}
+	return nil
+}
+
 // Delete handles the Delete event from the Cloudformation service.
 func Delete(req handler.Request, prevModel *Model, currentModel *Model) (handler.ProgressEvent, error) {
 	client, setupErr := setupRequest(req, currentModel, createReadUpdateDeleteRequiredFields)
diff --git a/cfn-resources/test/e2e/cluster/cluster_pause.json.template b/cfn-resources/test/e2e/cluster/cluster_pause.json.template
new file mode 100644
index 000000000..6d827a96d
--- /dev/null
+++ b/cfn-resources/test/e2e/cluster/cluster_pause.json.template
@@ -0,0 +1,41 @@
+{
+  "AWSTemplateFormatVersion": "2010-09-09",
+  "Description": "Minimal template to exercise pausing/unpausing a single REPLICASET cluster",
+  "Resources": {
+    "Cluster": {
+      "Type": "{{ .ResourceTypeName }}",
+      "Properties": {
+        "Name": "{{ .Name }}",
+        "ProjectId": "{{ .ProjectID }}",
+        "Profile": "{{ .Profile }}",
+        "ClusterType": "REPLICASET",
+        "Paused": "{{ .Paused }}",
+        "ReplicationSpecs": [
+          {
+            "NumShards": 1,
+            "AdvancedRegionConfigs": [
+              {
+                "RegionName": "US_EAST_1",
+                "Priority": 7,
+                "ProviderName": "AWS",
+                "ElectableSpecs": {
+                  "EbsVolumeType": "STANDARD",
+                  "InstanceSize": "M10",
+                  "NodeCount": 3
+                }
+              }
+            ]
+          }
+        ]
+      }
+    }
+  },
+  "Outputs": {
+    "MongoDBAtlasClusterID": {
+      "Description": "Cluster Id",
+      "Value": { "Fn::GetAtt": ["Cluster", "Id"] }
+    }
+  }
+}
+
+
diff --git a/cfn-resources/test/e2e/cluster/cluster_pause_test.go b/cfn-resources/test/e2e/cluster/cluster_pause_test.go
new file mode 100644
index 000000000..5e4bd4f8f
--- /dev/null
+++ b/cfn-resources/test/e2e/cluster/cluster_pause_test.go
@@ -0,0 +1,208 @@
+// Copyright 2024 MongoDB Inc
+//
+// Licensed under the Apache License, Version 2.0 (the "License");
+// you may not use this file except in compliance with the License.
+// You may obtain a copy of the License at
+//
+//	http://www.apache.org/licenses/LICENSE-2.0
+//
+// Unless required by applicable law or agreed to in writing, software
+// distributed under the License is distributed on an "AS IS" BASIS,
+// WITHOUT WARRANTIES OR CONDITIONS OF ANY KIND, either express or implied.
+// See the License for the specific language governing permissions and
+// limitations under the License.
+package cluster_test
+
+import (
+	ctx "context"
+	"os"
+	"testing"
+
+	"github.com/aws/aws-sdk-go-v2/service/cloudformation"
+	"github.com/mongodb/mongodbatlas-cloudformation-resources/test/e2e/utility"
+	"github.com/stretchr/testify/assert"
+	admin20231115014 "go.mongodb.org/atlas-sdk/v20231115014/admin"
+)
+
+type pauseTestContext struct {
+	cfnClient              *cloudformation.Client
+	atlasClient20231115014 *admin20231115014.APIClient
+	resourceCtx            utility.ResourceContext
+	template               string
+	clusterTmplObj         pauseTestCluster
+}
+
+type pauseTestCluster struct {
+	ResourceTypeName string
+	Name             string
+	Profile          string
+	ProjectID        string
+	Paused           string
+}
+
+const (
+	pauseCfnTemplatePath = "cluster_pause.json.template"
+)
+
+// Replication specs are hardcoded in the CFN template for this test.
+
+var (
+	pauseProfile     = os.Getenv("MONGODB_ATLAS_SECRET_PROFILE")
+	pauseOrgID       = os.Getenv("MONGODB_ATLAS_ORG_ID")
+	pauseRandSuffix  = utility.GetRandNum().String()
+	pauseProjectName = "cfn-e2e-cluster-pause" + pauseRandSuffix
+	pauseClusterName = "cfn-e2e-cluster-pause" + pauseRandSuffix
+	pauseStackName   = "stack-cluster-pause-e2e-" + pauseRandSuffix
+)
+
+func TestClusterPauseCFN(t *testing.T) {
+	testCtx := setupPauseSuite(t)
+
+	t.Run("Validate Template", func(t *testing.T) {
+		utility.TestIsTemplateValid(t, testCtx.cfnClient, testCtx.template)
+	})
+
+	t.Run("Create Stack", func(t *testing.T) {
+		testCreatePauseStack(t, testCtx)
+	})
+
+	t.Run("Pause Cluster", func(t *testing.T) {
+		testUpdatePauseState(t, testCtx, true)
+	})
+
+	t.Run("Unpause Cluster", func(t *testing.T) {
+		testUpdatePauseState(t, testCtx, false)
+	})
+
+	t.Run("Delete Stack", func(t *testing.T) {
+		testDeletePauseStack(t, testCtx)
+	})
+}
+
+func setupPauseSuite(t *testing.T) *pauseTestContext {
+	t.Helper()
+	t.Log("Setting up pause suite")
+	testCtx := new(pauseTestContext)
+	testCtx.setUp(t)
+	return testCtx
+}
+
+func (c *pauseTestContext) setUp(t *testing.T) {
+	t.Helper()
+	c.resourceCtx = utility.InitResourceCtx(pauseStackName, pauseRandSuffix, resourceTypeName, resourceDirectory)
+	c.cfnClient, _ = utility.NewClients(t)
+	_, c.atlasClient20231115014 = utility.NewClients20231115014(t)
+
+	utility.PublishToPrivateRegistry(t, c.resourceCtx)
+	c.setupPrerequisites(t)
+}
+
+func (c *pauseTestContext) setupPrerequisites(t *testing.T) {
+	t.Helper()
+	t.Cleanup(func() {
+		cleanupPausePrerequisites(t, c)
+		cleanupPauseResources(t, c)
+	})
+	t.Log("Setting up prerequisites for pause test")
+
+	var projectID string
+	if projectIDEnvVar := os.Getenv("MONGODB_ATLAS_PROJECT_ID"); projectIDEnvVar != "" {
+		t.Logf("using projectID from env var %s", projectIDEnvVar)
+		projectID = projectIDEnvVar
+	} else {
+		projectID = utility.CreateProject(t, c.atlasClient20231115014, pauseOrgID, pauseProjectName)
+	}
+
+	c.clusterTmplObj = pauseTestCluster{
+		Name:             pauseClusterName,
+		ProjectID:        projectID,
+		Profile:          pauseProfile,
+		Paused:           "false",
+		ResourceTypeName: os.Getenv("RESOURCE_TYPE_NAME_FOR_E2E"),
+	}
+
+	var err error
+	c.template, err = newPauseCFNTemplate(c.clusterTmplObj)
+	utility.FailNowIfError(t, "Error while reading pause CFN Template: %v", err)
+	t.Logf("Pause test setup complete. ProjectID: %s, ClusterName: %s", c.clusterTmplObj.ProjectID, c.clusterTmplObj.Name)
+}
+
+func newPauseCFNTemplate(tmpl pauseTestCluster) (string, error) {
+	return utility.ExecuteGoTemplate(pauseCfnTemplatePath, tmpl)
+}
+
+func testCreatePauseStack(t *testing.T, c *pauseTestContext) {
+	t.Helper()
+	t.Logf("Creating pause stack with template:\n%s", c.template)
+
+	output := utility.CreateStack(t, c.cfnClient, pauseStackName, c.template)
+	clusterID := getPauseClusterIDFromStack(output)
+
+	cluster := readPauseClusterFromAtlas(t, c)
+
+	assert.Equal(t, cluster.GetId(), clusterID)
+	assert.False(t, cluster.GetPaused())
+}
+
+func testUpdatePauseState(t *testing.T, c *pauseTestContext, pause bool) {
+	t.Helper()
+
+	if pause {
+		c.clusterTmplObj.Paused = "true"
+	} else {
+		c.clusterTmplObj.Paused = "false"
+	}
+
+	var err error
+	c.template, err = newPauseCFNTemplate(c.clusterTmplObj)
+	utility.FailNowIfError(t, "Error while reading pause CFN Template: %v", err)
+
+	output := utility.UpdateStack(t, c.cfnClient, pauseStackName, c.template)
+	_ = getPauseClusterIDFromStack(output)
+
+	cluster := readPauseClusterFromAtlas(t, c)
+
+	assert.Equal(t, pause, cluster.GetPaused())
+}
+
+func testDeletePauseStack(t *testing.T, c *pauseTestContext) {
+	t.Helper()
+	utility.DeleteStack(t, c.cfnClient, pauseStackName)
+	_, resp, _ := c.atlasClient20231115014.ClustersApi.GetCluster(ctx.Background(), c.clusterTmplObj.ProjectID, c.clusterTmplObj.Name).Execute()
+	assert.Equal(t, 404, resp.StatusCode)
+}
+
+func cleanupPauseResources(t *testing.T, c *pauseTestContext) {
+	t.Helper()
+	utility.DeleteStackForCleanup(t, c.cfnClient, pauseStackName)
+}
+
+func cleanupPausePrerequisites(t *testing.T, c *pauseTestContext) {
+	t.Helper()
+	t.Log("Cleaning up pause test prerequisites")
+	if os.Getenv("MONGODB_ATLAS_PROJECT_ID") == "" {
+		utility.DeleteProject(t, c.atlasClient20231115014, c.clusterTmplObj.ProjectID)
+	} else {
+		t.Log("skipping project deletion (project managed outside of test)")
+	}
+}
+
+func readPauseClusterFromAtlas(t *testing.T, c *pauseTestContext) *admin20231115014.AdvancedClusterDescription {
+	t.Helper()
+	context := ctx.Background()
+	projectID := c.clusterTmplObj.ProjectID
+	cluster, resp, err := c.atlasClient20231115014.ClustersApi.GetCluster(context, projectID, c.clusterTmplObj.Name).Execute()
+	utility.FailNowIfError(t, "Err while retrieving Cluster from Atlas: %v", err)
+	assert.Equal(t, 200, resp.StatusCode)
+	return cluster
+}
+
+func getPauseClusterIDFromStack(output *cloudformation.DescribeStacksOutput) string {
+	stackOutputs := output.Stacks[0].Outputs
+	for i := 0; i < len(stackOutputs); i++ {
+		if *stackOutputs[i].OutputKey == "MongoDBAtlasClusterID" {
+			return *stackOutputs[i].OutputValue
+		}
+	}
+	return ""
+}