diff --git a/internal/controllers/networking/network_peering_controller.go b/internal/controllers/networking/network_peering_controller.go
index 8ef4ce795..55be6fc59 100644
--- a/internal/controllers/networking/network_peering_controller.go
+++ b/internal/controllers/networking/network_peering_controller.go
@@ -60,11 +60,9 @@ func (r *NetworkPeeringReconciler) reconcile(ctx context.Context, log logr.Logge
 		}
 	}
 
-	if len(peeringClaimRefs) > 0 {
-		log.V(1).Info("Peering claim refs require network spec update")
-		if err := r.updateSpec(ctx, log, network, peeringClaimRefs); err != nil {
-			return ctrl.Result{}, fmt.Errorf("error updating network spec: %w", err)
-		}
+	log.V(1).Info("Peering claim refs require network spec update")
+	if err := r.updateSpec(ctx, log, network, peeringClaimRefs); err != nil {
+		return ctrl.Result{}, fmt.Errorf("error updating network spec: %w", err)
 	}
 
 	log.V(1).Info("Reconciled")
diff --git a/internal/controllers/networking/network_peering_controller_test.go b/internal/controllers/networking/network_peering_controller_test.go
index a1479e8fc..7904c4708 100644
--- a/internal/controllers/networking/network_peering_controller_test.go
+++ b/internal/controllers/networking/network_peering_controller_test.go
@@ -577,4 +577,100 @@ var _ = Describe("NetworkPeeringController", func() {
 		Eventually(Get(network1)).Should(Satisfy(apierrors.IsNotFound))
 		Eventually(Get(network3)).Should(Satisfy(apierrors.IsNotFound))
 	})
+
+	It("should remove incoming peerings if no matching peering found", func(ctx SpecContext) {
+		By("creating a network network-1")
+		network1 := &networkingv1alpha1.Network{
+			ObjectMeta: metav1.ObjectMeta{
+				Namespace: ns.Name,
+				Name:      "network-1",
+			},
+			Spec: networkingv1alpha1.NetworkSpec{
+				Peerings: []networkingv1alpha1.NetworkPeering{
+					{
+						Name: "peering-1",
+						NetworkRef: networkingv1alpha1.NetworkPeeringNetworkRef{
+							Name:      "network-2",
+							Namespace: ns.Name,
+						},
+					},
+				},
+			},
+		}
+		Expect(k8sClient.Create(ctx, network1)).To(Succeed())
+
+		By("creating a network network-2")
+		network2 := &networkingv1alpha1.Network{
+			ObjectMeta: metav1.ObjectMeta{
+				Namespace: ns.Name,
+				Name:      "network-2",
+			},
+			Spec: networkingv1alpha1.NetworkSpec{
+				Peerings: []networkingv1alpha1.NetworkPeering{
+					{
+						Name: "peering-1",
+						NetworkRef: networkingv1alpha1.NetworkPeeringNetworkRef{
+							Name:      "network-1",
+							Namespace: ns.Name,
+						},
+					},
+				},
+			},
+		}
+		Expect(k8sClient.Create(ctx, network2)).To(Succeed())
+
+		By("patching networks as available")
+		baseNetwork1 := network1.DeepCopy()
+		network1.Status.State = networkingv1alpha1.NetworkStateAvailable
+		Expect(k8sClient.Status().Patch(ctx, network1, client.MergeFrom(baseNetwork1))).To(Succeed())
+
+		baseNetwork2 := network2.DeepCopy()
+		network2.Status.State = networkingv1alpha1.NetworkStateAvailable
+		Expect(k8sClient.Status().Patch(ctx, network2, client.MergeFrom(baseNetwork2))).To(Succeed())
+
+		By("waiting for networks to reference each other")
+		Eventually(Object(network1)).
+			Should(SatisfyAll(
+				HaveField("Spec.PeeringClaimRefs", ConsistOf(networkingv1alpha1.NetworkPeeringClaimRef{
+					Namespace: network2.Namespace,
+					Name:      network2.Name,
+					UID:       network2.UID,
+				})),
+				HaveField("Status.State", Equal(networkingv1alpha1.NetworkStateAvailable)),
+			))
+
+		Eventually(Object(network2)).
+			Should(SatisfyAll(
+				HaveField("Spec.PeeringClaimRefs", ConsistOf(networkingv1alpha1.NetworkPeeringClaimRef{
+					Namespace: network1.Namespace,
+					Name:      network1.Name,
+					UID:       network1.UID,
+				})),
+				HaveField("Status.State", Equal(networkingv1alpha1.NetworkStateAvailable)),
+			))
+
+		By("removing peerings from network-1")
+		baseNetwork1 = network1.DeepCopy()
+		network1.Spec.Peerings = []networkingv1alpha1.NetworkPeering{}
+		Expect(k8sClient.Patch(ctx, network1, client.MergeFrom(baseNetwork1))).To(Succeed())
+
+		By("ensuring incoming peerings are also removed from network-1 and network-2")
+		Eventually(Object(network1)).Should(SatisfyAll(
+			HaveField("Spec.Peerings", BeNil()),
+			HaveField("Spec.PeeringClaimRefs", BeNil()),
+		))
+
+		Eventually(Object(network2)).Should(SatisfyAll(
+			HaveField("Spec.Peerings", Not(BeNil())),
+			HaveField("Spec.PeeringClaimRefs", BeNil()),
+		))
+
+		By("deleting the networks")
+		Expect(k8sClient.Delete(ctx, network1)).To(Succeed())
+		Expect(k8sClient.Delete(ctx, network2)).To(Succeed())
+
+		By("waiting for networks to be gone")
+		Eventually(Get(network1)).Should(Satisfy(apierrors.IsNotFound))
+		Eventually(Get(network2)).Should(Satisfy(apierrors.IsNotFound))
+	})
 })