diff --git a/src/chocolatey/infrastructure.app/services/PowershellService.cs b/src/chocolatey/infrastructure.app/services/PowershellService.cs
index 8390cb2ae7..0685018c10 100644
--- a/src/chocolatey/infrastructure.app/services/PowershellService.cs
+++ b/src/chocolatey/infrastructure.app/services/PowershellService.cs
@@ -96,6 +96,9 @@ private IEnumerable<string> get_hook_scripts(ChocolateyConfiguration configurati
             // If skipping hook scripts, return an empty list
             if (configuration.SkipHookScripts) return hookScriptPaths;
 
+            // If hooks directory doesn't exist, return an empty list to prevent directory not exist warnings
+            if (!_fileSystem.directory_exists(ApplicationParameters.HooksLocation)) return hookScriptPaths;
+
             string filenameBase;
 
             if (isPreHook)
diff --git a/tests/chocolatey-tests/Hooks.Tests.ps1 b/tests/chocolatey-tests/Hooks.Tests.ps1
new file mode 100644
index 0000000000..2087bdbe5b
--- /dev/null
+++ b/tests/chocolatey-tests/Hooks.Tests.ps1
@@ -0,0 +1,93 @@
+Import-Module helpers/common-helpers
+
+Describe "hooks tests" -Tag Chocolatey, Hooks {
+    BeforeDiscovery {
+        $Flags = @(
+            @{ Flag = '' ; RunsHooks = $true ; Command = 'install' }
+            @{ Flag = '--skip-powershell' ; RunsHooks = $false ; Command = 'install' }
+            @{ Flag = '--skip-hooks' ; RunsHooks = $false ; Command = 'install' }
+
+            @{ Flag = '' ; RunsHooks = $true ; Command = 'uninstall' }
+            @{ Flag = '--skip-powershell' ; RunsHooks = $false ; Command = 'uninstall' }
+            @{ Flag = '--skip-hooks' ; RunsHooks = $false ; Command = 'uninstall' }
+
+            @{ Flag = '' ; RunsHooks = $true ; Command = 'upgrade' }
+            @{ Flag = '--skip-powershell' ; RunsHooks = $false ; Command = 'upgrade' }
+            @{ Flag = '--skip-hooks' ; RunsHooks = $false ; Command = 'upgrade' }
+
+        )
+    }
+    BeforeAll {
+        Initialize-ChocolateyTestInstall
+        # Add the hooks package to the test install so that it is available in each snapshot.
+        $null = Invoke-Choco install scriptpackage.hook --version 1.0.0
+        New-ChocolateyInstallSnapshot
+    }
+
+    AfterAll {
+        Remove-ChocolateyTestInstall
+    }
+
+    Context '<Command> hooks with flag: <Flag>' -ForEach $Flags {
+        BeforeAll {
+            Restore-ChocolateyInstallSnapshot
+            $Package = 'upgradepackage'
+
+            if ($Command -ne 'install') {
+                $ver = if ($Command -eq 'upgrade') {
+                    '1.0.0'
+                }
+                else {
+                    '1.1.0'
+                }
+                $null = Invoke-Choco install $Package --version $ver --no-progress
+            }
+
+            $Output = Invoke-Choco $Command $Package $Flag --no-progress
+        }
+
+        # Uninstall/Upgrade exit -1: https://github.com/chocolatey/choco/issues/2822
+        It "Exits with Success (0,-1)" {
+            $Output.ExitCode | Should -BeIn @(0, -1) -Because $Output.String
+        }
+
+        It "Should execute hooks (<RunsHooks>)" {
+            $Version = '1.1.0'
+
+            $Messages = @(
+                if ($Command -eq 'uninstall') {
+                    "pre-uninstall-all.ps1 hook ran for $Package $Version"
+                    "post-uninstall-all.ps1 hook ran for $Package $Version"
+                    "pre-uninstall-$Package.ps1 hook ran for $Package $Version"
+                    "post-uninstall-$Package.ps1 hook ran for $Package $Version"
+                    "pre-beforemodify-all.ps1 hook ran for $Package $Version"
+                    "post-beforemodify-all.ps1 hook ran for $Package $Version"
+                    "pre-beforemodify-$Package.ps1 hook ran for $Package $Version"
+                    "post-beforemodify-$Package.ps1 hook ran for $Package $Version"
+                }
+                else {
+                    "pre-install-all.ps1 hook ran for $Package $Version"
+                    "post-install-all.ps1 hook ran for $Package $Version"
+                    "pre-install-$Package.ps1 hook ran for $Package $Version"
+                    "post-install-$Package.ps1 hook ran for $Package $Version"
+                }
+
+                if ($Command -eq 'upgrade') {
+                    "pre-beforemodify-all.ps1 hook ran for $Package 1.0.0"
+                    "pre-beforemodify-$Package.ps1 hook ran for $Package 1.0.0"
+                }
+            )
+
+            foreach ($msg in $Messages) {
+                if ($RunsHooks) {
+                    $Output.Lines | Should -Contain $msg -Because $Output.String
+                }
+                else {
+                    $Output.Lines | Should -Not -Contain $msg -Because $Output.String
+                }
+            }
+
+            $Output.Lines | Should -Not -Contain "pre-$Command-doesnotexist.ps1 hook ran for $Package $Version" -Because $Output.String
+        }
+    }
+}
diff --git a/tests/chocolatey-tests/chocolatey.Tests.ps1 b/tests/chocolatey-tests/chocolatey.Tests.ps1
index b89d2d0ccb..de3a47c88a 100644
--- a/tests/chocolatey-tests/chocolatey.Tests.ps1
+++ b/tests/chocolatey-tests/chocolatey.Tests.ps1
@@ -139,13 +139,7 @@ Describe "Ensuring Chocolatey is correctly installed" -Tag Environment, Chocolat
 
         # This is FossOnly for now as there are some undetermined errors here that do not seem to present inside of Chocolatey. https://gitlab.com/chocolatey/build-automation/chocolatey-test-kitchen/-/issues/39
         It "Should be able to run the script in AllSigned mode" -Skip:($_ -notin $PowerShellFiles) -Tag FossOnly {
-            # The chocolateyScriptRunner expects some passed in values and results in two errors if they're not there. This accounts for that.
-            $expectedErrors = if ($FileUnderTest.Name -eq 'chocolateyScriptRunner.ps1') {
-                2
-            }
-            else {
-                0
-            }
+            $expectedErrors = 0
             $command = "Import-Module $FileUnderTest -ErrorAction SilentlyContinue; exit `$error.count"
             & powershell.exe -noprofile -ExecutionPolicy AllSigned -command $command 2>$null
             $LastExitCode | Should -BeExactly $expectedErrors