diff --git a/pkg/controllers/scheduling/cluster_event_handler.go b/pkg/controllers/scheduling/cluster_event_handler.go
index 5ae4f6c36..e5eee2e86 100644
--- a/pkg/controllers/scheduling/cluster_event_handler.go
+++ b/pkg/controllers/scheduling/cluster_event_handler.go
@@ -2,14 +2,15 @@ package scheduling
 
 import (
 	"fmt"
+	"reflect"
 
-	"k8s.io/apimachinery/pkg/api/errors"
 	metav1 "k8s.io/apimachinery/pkg/apis/meta/v1"
 	utilruntime "k8s.io/apimachinery/pkg/util/runtime"
 	cache "k8s.io/client-go/tools/cache"
 	"k8s.io/klog/v2"
 	clusterlisterv1beta1 "open-cluster-management.io/api/client/cluster/listers/cluster/v1beta1"
 	clusterapiv1 "open-cluster-management.io/api/cluster/v1"
+	clusterapiv1beta1 "open-cluster-management.io/api/cluster/v1beta1"
 )
 
 type clusterEventHandler struct {
@@ -38,8 +39,8 @@ func (h *clusterEventHandler) OnUpdate(oldObj, newObj interface{}) {
 		return
 	}
 
-	// if the clusterset of the cluster changes, process the original clusterset
-	if newCluster.Labels[clusterSetLabel] != oldCluster.Labels[clusterSetLabel] {
+	// if the cluster labels changes, process the original clusterset
+	if !reflect.DeepEqual(newCluster.Labels, oldCluster.Labels) {
 		h.onChange(oldCluster)
 	}
 }
@@ -62,46 +63,43 @@ func (h *clusterEventHandler) onChange(obj interface{}) {
 		return
 	}
 
-	clusterSetName, err := h.getClusterSetName(cluster)
+	clusterSetNames, err := h.getClusterSetNames(cluster)
 	if err != nil {
 		klog.V(4).Infof("Unable to get clusterset of cluster %q: %v", cluster.GetName(), err)
 		return
 	}
 
 	// skip cluster belongs to no clusterset
-	if len(clusterSetName) == 0 {
+	if len(clusterSetNames) == 0 {
 		return
 	}
 
-	// enqueue placements which might be impacted
-	err = enqueuePlacementsByClusterSet(
-		clusterSetName,
-		h.clusterSetBindingLister,
-		h.placementLister,
-		h.enqueuePlacementFunc,
-	)
-	if err != nil {
-		klog.Errorf("Unable to enqueue placements with access to clusterset %q: %v", clusterSetName, err)
+	for _, clusterSetName := range clusterSetNames {
+		// enqueue placements which might be impacted
+		err = enqueuePlacementsByClusterSet(
+			clusterSetName,
+			h.clusterSetBindingLister,
+			h.placementLister,
+			h.enqueuePlacementFunc,
+		)
+		if err != nil {
+			klog.Errorf("Unable to enqueue placements with access to clusterset %q: %v", clusterSetName, err)
+		}
 	}
 }
 
 // getClusterSetName returns the name of the clusterset the cluster belongs to. It also checks the existence
 // of the clusterset.
-func (h *clusterEventHandler) getClusterSetName(cluster metav1.Object) (string, error) {
-	// skip cluster belongs to no clusterset
-	labels := cluster.GetLabels()
-	clusterSetName, ok := labels[clusterSetLabel]
-	if !ok {
-		return "", nil
-	}
-	_, err := h.clusterSetLister.Get(clusterSetName)
-	// skip if the clusterset does not exist
-	if errors.IsNotFound(err) {
-		return "", nil
-	}
+func (h *clusterEventHandler) getClusterSetNames(cluster metav1.Object) ([]string, error) {
+	clusterSetNames := []string{}
+	clusterSets, err := clusterapiv1beta1.GetClusterSetsOfCluster(cluster.(*clusterapiv1.ManagedCluster), h.clusterSetLister)
 	if err != nil {
-		return "", err
+		return clusterSetNames, err
 	}
 
-	return clusterSetName, nil
+	for _, cs := range clusterSets {
+		clusterSetNames = append(clusterSetNames, cs.Name)
+	}
+
+	return clusterSetNames, nil
 }
diff --git a/pkg/controllers/scheduling/cluster_event_handler_test.go b/pkg/controllers/scheduling/cluster_event_handler_test.go
index 100f1fb6f..e8e757828 100644
--- a/pkg/controllers/scheduling/cluster_event_handler_test.go
+++ b/pkg/controllers/scheduling/cluster_event_handler_test.go
@@ -5,11 +5,13 @@ import (
 	"strings"
 	"testing"
 
+	metav1 "k8s.io/apimachinery/pkg/apis/meta/v1"
 	"k8s.io/apimachinery/pkg/runtime"
 	"k8s.io/apimachinery/pkg/util/sets"
 	"k8s.io/client-go/tools/cache"
 
 	clusterfake "open-cluster-management.io/api/client/cluster/clientset/versioned/fake"
+	clusterapiv1beta1 "open-cluster-management.io/api/cluster/v1beta1"
 	testinghelpers "open-cluster-management.io/placement/pkg/helpers/testing"
 )
 
@@ -55,6 +57,36 @@ func TestOnClusterChange(t *testing.T) {
 				"ns2/placement2",
 			},
 		},
+		{
+			name: "cluster blongs to multiple clusterset",
+			obj:  testinghelpers.NewManagedCluster("cluster1").WithLabel("cloud", "Amazon").WithLabel(clusterSetLabel, "clusterset2").Build(),
+			initObjs: []runtime.Object{
+				testinghelpers.NewClusterSet("global").WithClusterSelector(clusterapiv1beta1.ManagedClusterSelector{
+					SelectorType:  clusterapiv1beta1.LabelSelector,
+					LabelSelector: &metav1.LabelSelector{},
+				}).Build(),
+				testinghelpers.NewClusterSet("clusterset1").WithClusterSelector(clusterapiv1beta1.ManagedClusterSelector{
+					SelectorType: clusterapiv1beta1.LabelSelector,
+					LabelSelector: &metav1.LabelSelector{
+						MatchLabels: map[string]string{
+							"cloud": "Amazon",
+						},
+					},
+				}).Build(),
+				testinghelpers.NewClusterSet("clusterset2").Build(),
+				testinghelpers.NewClusterSetBinding("ns1", "global"),
+				testinghelpers.NewClusterSetBinding("ns2", "clusterset1"),
+				testinghelpers.NewClusterSetBinding("ns3", "clusterset2"),
+				testinghelpers.NewPlacement("ns1", "placement1").Build(),
+				testinghelpers.NewPlacement("ns2", "placement2").Build(),
+				testinghelpers.NewPlacement("ns3", "placement3").Build(),
+			},
+			queuedKeys: []string{
+				"ns1/placement1",
+				"ns2/placement2",
+				"ns3/placement3",
+			},
+		},
 	}
 
 	for _, c := range cases {
@@ -93,6 +125,42 @@ func TestOnClusterUpdate(t *testing.T) {
 			name:   "cluster belongs to no clusterset",
 			newObj: testinghelpers.NewManagedCluster("cluster1").WithLabel("cloud", "Amazon").Build(),
 			oldObj: testinghelpers.NewManagedCluster("cluster1").WithLabel("cloud", "Google").Build(),
+			initObjs: []runtime.Object{
+				testinghelpers.NewClusterSet("clusterset1").Build(),
+				testinghelpers.NewClusterSetBinding("ns1", "clusterset1"),
+				testinghelpers.NewPlacement("ns1", "placement1").Build(),
+			},
+		},
+		{
+			name:   "cluster blongs to multiple clusterset",
+			newObj: testinghelpers.NewManagedCluster("cluster1").WithLabel(clusterSetLabel, "clusterset2").WithLabel("cloud", "Google").Build(),
+			oldObj: testinghelpers.NewManagedCluster("cluster1").WithLabel(clusterSetLabel, "clusterset2").WithLabel("cloud", "Amazon").Build(),
+			initObjs: []runtime.Object{
+				testinghelpers.NewClusterSet("global").WithClusterSelector(clusterapiv1beta1.ManagedClusterSelector{
+					SelectorType:  clusterapiv1beta1.LabelSelector,
+					LabelSelector: &metav1.LabelSelector{},
+				}).Build(),
+				testinghelpers.NewClusterSet("clusterset1").WithClusterSelector(clusterapiv1beta1.ManagedClusterSelector{
+					SelectorType: clusterapiv1beta1.LabelSelector,
+					LabelSelector: &metav1.LabelSelector{
+						MatchLabels: map[string]string{
+							"cloud": "Amazon",
+						},
+					},
+				}).Build(),
+				testinghelpers.NewClusterSet("clusterset2").Build(),
+				testinghelpers.NewClusterSetBinding("ns1", "global"),
+				testinghelpers.NewClusterSetBinding("ns2", "clusterset1"),
+				testinghelpers.NewClusterSetBinding("ns3", "clusterset2"),
+				testinghelpers.NewPlacement("ns1", "placement1").Build(),
+				testinghelpers.NewPlacement("ns2", "placement2").Build(),
+				testinghelpers.NewPlacement("ns3", "placement3").Build(),
+			},
+			queuedKeys: []string{
+				"ns1/placement1",
+				"ns2/placement2",
+				"ns3/placement3",
+			},
 		},
 		{
 			name: "assign a cluster to a clusterset",
@@ -110,16 +178,33 @@ func TestOnClusterUpdate(t *testing.T) {
 		},
 		{
 			name:   "remove cluster from a clusterset",
-			newObj: testinghelpers.NewManagedCluster("cluster1").WithLabel("cloud", "Amazon").Build(),
-			oldObj: testinghelpers.NewManagedCluster("cluster1").
-				WithLabel(clusterSetLabel, "clusterset1").WithLabel("cloud", "Amazon").Build(),
+			newObj: testinghelpers.NewManagedCluster("cluster1").Build(),
+			oldObj: testinghelpers.NewManagedCluster("cluster1").WithLabel(clusterSetLabel, "clusterset2").WithLabel("cloud", "Amazon").Build(),
 			initObjs: []runtime.Object{
-				testinghelpers.NewClusterSet("clusterset1").Build(),
-				testinghelpers.NewClusterSetBinding("ns1", "clusterset1"),
+				testinghelpers.NewClusterSet("global").WithClusterSelector(clusterapiv1beta1.ManagedClusterSelector{
+					SelectorType:  clusterapiv1beta1.LabelSelector,
+					LabelSelector: &metav1.LabelSelector{},
+				}).Build(),
+				testinghelpers.NewClusterSet("clusterset1").WithClusterSelector(clusterapiv1beta1.ManagedClusterSelector{
+					SelectorType: clusterapiv1beta1.LabelSelector,
+					LabelSelector: &metav1.LabelSelector{
+						MatchLabels: map[string]string{
+							"cloud": "Amazon",
+						},
+					},
+				}).Build(),
+				testinghelpers.NewClusterSet("clusterset2").Build(),
+				testinghelpers.NewClusterSetBinding("ns1", "global"),
+				testinghelpers.NewClusterSetBinding("ns2", "clusterset1"),
+				testinghelpers.NewClusterSetBinding("ns3", "clusterset2"),
 				testinghelpers.NewPlacement("ns1", "placement1").Build(),
+				testinghelpers.NewPlacement("ns2", "placement2").Build(),
+				testinghelpers.NewPlacement("ns3", "placement3").Build(),
 			},
 			queuedKeys: []string{
 				"ns1/placement1",
+				"ns2/placement2",
+				"ns3/placement3",
 			},
 		},
 		{
@@ -195,14 +280,32 @@ func TestOnClusterDelete(t *testing.T) {
 		},
 		{
 			name: "cluster",
-			obj:  testinghelpers.NewManagedCluster("cluster1").WithLabel(clusterSetLabel, "clusterset1").Build(),
+			obj:  testinghelpers.NewManagedCluster("cluster1").WithLabel(clusterSetLabel, "clusterset2").WithLabel("cloud", "Amazon").Build(),
 			initObjs: []runtime.Object{
-				testinghelpers.NewClusterSet("clusterset1").Build(),
-				testinghelpers.NewClusterSetBinding("ns1", "clusterset1"),
+				testinghelpers.NewClusterSet("global").WithClusterSelector(clusterapiv1beta1.ManagedClusterSelector{
+					SelectorType:  clusterapiv1beta1.LabelSelector,
+					LabelSelector: &metav1.LabelSelector{},
+				}).Build(),
+				testinghelpers.NewClusterSet("clusterset1").WithClusterSelector(clusterapiv1beta1.ManagedClusterSelector{
+					SelectorType: clusterapiv1beta1.LabelSelector,
+					LabelSelector: &metav1.LabelSelector{
+						MatchLabels: map[string]string{
+							"cloud": "Amazon",
+						},
+					},
+				}).Build(),
+				testinghelpers.NewClusterSet("clusterset2").Build(),
+				testinghelpers.NewClusterSetBinding("ns1", "global"),
+				testinghelpers.NewClusterSetBinding("ns2", "clusterset1"),
+				testinghelpers.NewClusterSetBinding("ns3", "clusterset2"),
 				testinghelpers.NewPlacement("ns1", "placement1").Build(),
+				testinghelpers.NewPlacement("ns2", "placement2").Build(),
+				testinghelpers.NewPlacement("ns3", "placement3").Build(),
 			},
 			queuedKeys: []string{
 				"ns1/placement1",
+				"ns2/placement2",
+				"ns3/placement3",
 			},
 		},
 		{
diff --git a/pkg/controllers/scheduling/clusterset_event_handler_test.go b/pkg/controllers/scheduling/clusterset_event_handler_test.go
index 536d0a45a..deec8d0ff 100644
--- a/pkg/controllers/scheduling/clusterset_event_handler_test.go
+++ b/pkg/controllers/scheduling/clusterset_event_handler_test.go
@@ -5,11 +5,13 @@ import (
 	"strings"
 	"testing"
 
+	metav1 "k8s.io/apimachinery/pkg/apis/meta/v1"
 	"k8s.io/apimachinery/pkg/runtime"
 	"k8s.io/apimachinery/pkg/util/sets"
 	cache "k8s.io/client-go/tools/cache"
 
 	clusterfake "open-cluster-management.io/api/client/cluster/clientset/versioned/fake"
+	clusterapiv1beta1 "open-cluster-management.io/api/cluster/v1beta1"
 	testinghelpers "open-cluster-management.io/placement/pkg/helpers/testing"
 )
 
@@ -75,7 +77,7 @@ func TestOnClusterSetAdd(t *testing.T) {
 			obj:  "invalid object type",
 		},
 		{
-			name: "clusterset",
+			name: "clusterset selector type is LegacyClusterSetLabel",
 			obj:  testinghelpers.NewClusterSet("clusterset1").Build(),
 			initObjs: []runtime.Object{
 				testinghelpers.NewClusterSetBinding("ns1", "clusterset1"),
@@ -85,6 +87,24 @@ func TestOnClusterSetAdd(t *testing.T) {
 				"ns1/placement1",
 			},
 		},
+		{
+			name: "clusterset selector type is LabelSelector",
+			obj: testinghelpers.NewClusterSet("clusterset1").WithClusterSelector(clusterapiv1beta1.ManagedClusterSelector{
+				SelectorType: clusterapiv1beta1.LabelSelector,
+				LabelSelector: &metav1.LabelSelector{
+					MatchLabels: map[string]string{
+						"cloud": "Amazon",
+					},
+				},
+			}).Build(),
+			initObjs: []runtime.Object{
+				testinghelpers.NewClusterSetBinding("ns1", "clusterset1"),
+				testinghelpers.NewPlacement("ns1", "placement1").Build(),
+			},
+			queuedKeys: []string{
+				"ns1/placement1",
+			},
+		},
 	}
 
 	for _, c := range cases {
@@ -122,7 +142,7 @@ func TestOnClusterSetDelete(t *testing.T) {
 			obj:  "invalid object type",
 		},
 		{
-			name: "clusterset",
+			name: "clusterset selector type is LegacyClusterSetLabel",
 			obj:  testinghelpers.NewClusterSet("clusterset1").Build(),
 			initObjs: []runtime.Object{
 				testinghelpers.NewClusterSetBinding("ns1", "clusterset1"),
@@ -132,6 +152,24 @@ func TestOnClusterSetDelete(t *testing.T) {
 				"ns1/placement1",
 			},
 		},
+		{
+			name: "clusterset selector type is LabelSelector",
+			obj: testinghelpers.NewClusterSet("clusterset1").WithClusterSelector(clusterapiv1beta1.ManagedClusterSelector{
+				SelectorType: clusterapiv1beta1.LabelSelector,
+				LabelSelector: &metav1.LabelSelector{
+					MatchLabels: map[string]string{
+						"cloud": "Amazon",
+					},
+				},
+			}).Build(),
+			initObjs: []runtime.Object{
+				testinghelpers.NewClusterSetBinding("ns1", "clusterset1"),
+				testinghelpers.NewPlacement("ns1", "placement1").Build(),
+			},
+			queuedKeys: []string{
+				"ns1/placement1",
+			},
+		},
 		{
 			name: "tombstone",
 			obj: cache.DeletedFinalStateUnknown{
diff --git a/test/e2e/placement_test.go b/test/e2e/placement_test.go
index 808dc125e..ae0ec30ee 100644
--- a/test/e2e/placement_test.go
+++ b/test/e2e/placement_test.go
@@ -24,6 +24,7 @@ var _ = ginkgo.Describe("Placement", func() {
 	var namespace string
 	var placementName string
 	var clusterSet1Name string
+	var clusterSetGlobal string
 	var suffix string
 	var err error
 
@@ -32,6 +33,7 @@ var _ = ginkgo.Describe("Placement", func() {
 		namespace = fmt.Sprintf("ns-%s", suffix)
 		placementName = fmt.Sprintf("placement-%s", suffix)
 		clusterSet1Name = fmt.Sprintf("clusterset-%s", suffix)
+		clusterSetGlobal = "global"
 
 		// create testing namespace
 		ns := &corev1.Namespace{
@@ -46,6 +48,7 @@ var _ = ginkgo.Describe("Placement", func() {
 	ginkgo.AfterEach(func() {
 		ginkgo.By("Delete managedclusterset")
 		clusterClient.ClusterV1beta1().ManagedClusterSets().Delete(context.Background(), clusterSet1Name, metav1.DeleteOptions{})
+		clusterClient.ClusterV1beta1().ManagedClusterSets().Delete(context.Background(), clusterSetGlobal, metav1.DeleteOptions{})
 
 		ginkgo.By("Delete managedclusters")
 		clusterClient.ClusterV1().ManagedClusters().DeleteCollection(context.Background(), metav1.DeleteOptions{}, metav1.ListOptions{
@@ -127,16 +130,27 @@ var _ = ginkgo.Describe("Placement", func() {
 		}, eventuallyTimeout, eventuallyInterval).Should(gomega.BeTrue())
 	}
 
-	assertBindingClusterSet := func(clusterSetName string) {
-		ginkgo.By("Create clusterset/clustersetbinding")
+	assertCreatingClusterSet := func(clusterSetName string, matchLabel map[string]string) {
+		ginkgo.By("Create clusterset")
 		clusterset := &clusterapiv1beta1.ManagedClusterSet{
 			ObjectMeta: metav1.ObjectMeta{
 				Name: clusterSetName,
 			},
 		}
+		if matchLabel != nil {
+			clusterset.Spec.ClusterSelector = clusterapiv1beta1.ManagedClusterSelector{
+				SelectorType: clusterapiv1beta1.LabelSelector,
+				LabelSelector: &metav1.LabelSelector{
+					MatchLabels: matchLabel,
+				},
+			}
+		}
 		_, err = clusterClient.ClusterV1beta1().ManagedClusterSets().Create(context.Background(), clusterset, metav1.CreateOptions{})
 		gomega.Expect(err).ToNot(gomega.HaveOccurred())
+	}
 
+	assertCreatingClusterSetBinding := func(clusterSetName string) {
+		ginkgo.By("Create clustersetbinding")
 		csb := &clusterapiv1beta1.ManagedClusterSetBinding{
 			ObjectMeta: metav1.ObjectMeta{
 				Namespace: namespace,
@@ -150,6 +164,12 @@ var _ = ginkgo.Describe("Placement", func() {
 		gomega.Expect(err).ToNot(gomega.HaveOccurred())
 	}
 
+	assertBindingClusterSet := func(clusterSetName string, matchLabel map[string]string) {
+		ginkgo.By("Create clusterset/clustersetbinding")
+		assertCreatingClusterSet(clusterSetName, matchLabel)
+		assertCreatingClusterSetBinding(clusterSetName)
+	}
+
 	assertCreatingClusters := func(clusterSetName string, num int) {
 		ginkgo.By(fmt.Sprintf("Create %d clusters", num))
 		for i := 0; i < num; i++ {
@@ -188,7 +208,7 @@ var _ = ginkgo.Describe("Placement", func() {
 	}
 
 	ginkgo.It("Should schedule successfully", func() {
-		assertBindingClusterSet(clusterSet1Name)
+		assertBindingClusterSet(clusterSet1Name, nil)
 		assertCreatingClusters(clusterSet1Name, 5)
 		assertCreatingPlacement(placementName, noc(10), 5)
 
@@ -203,8 +223,10 @@ var _ = ginkgo.Describe("Placement", func() {
 		assertNumberOfDecisions(placementName, 5)
 		assertPlacementStatus(placementName, 5, false)
 
-		// create 2 more clusters
-		assertCreatingClusters(clusterSet1Name, 2)
+		// create global clusterset
+		assertBindingClusterSet(clusterSetGlobal, map[string]string{})
+		// create 2 more clusters belong to global clusterset
+		assertCreatingClusters("", 2)
 		assertNumberOfDecisions(placementName, 6)
 		assertPlacementStatus(placementName, 6, true)
 
@@ -226,7 +248,7 @@ var _ = ginkgo.Describe("Placement", func() {
 	})
 
 	ginkgo.It("Should delete placementdecision successfully", func() {
-		assertBindingClusterSet(clusterSet1Name)
+		assertBindingClusterSet(clusterSet1Name, nil)
 		assertCreatingClusters(clusterSet1Name, 1)
 		assertCreatingPlacement(placementName, nil, 1)
 
diff --git a/test/integration/placement_test.go b/test/integration/placement_test.go
index 1a03e97ef..8fb39a6f3 100644
--- a/test/integration/placement_test.go
+++ b/test/integration/placement_test.go
@@ -667,6 +667,30 @@ var _ = ginkgo.Describe("Placement", func() {
 			assertPlacementConditionSatisfied(placementName, nod, true)
 		})
 
+		ginkgo.It("Should be satisfied once new clusters belong to labelselector type clusterset are added", func() {
+			ginkgo.By("Bind clusterset to the placement namespace")
+			assertCreatingLabelSelectorClusterSet(clusterSet1Name, map[string]string{
+				"vendor": "openShift",
+			})
+			assertCreatingClusterSetBinding(clusterSet1Name)
+			assertCreatingClusterWithLabel(clusterName+"1", map[string]string{
+				"vendor": "openShift",
+			})
+			assertCreatingPlacementWithDecision(placementName, noc(2), 1, clusterapiv1beta1.PrioritizerPolicy{}, []clusterapiv1beta1.Toleration{})
+
+			// add more clusters
+			assertCreatingClusterWithLabel(clusterName+"2", map[string]string{
+				"vendor": "openShift",
+			})
+
+			nod := 2
+			assertNumberOfDecisions(placementName, nod)
+			assertPlacementConditionSatisfied(placementName, nod, true)
+
+			assertDeletingCluster(clusterName + "1")
+			assertDeletingCluster(clusterName + "2")
+		})
+
 		ginkgo.It("Should schedule successfully once new clusterset is bound", func() {
 			assertBindingClusterSet(clusterSet1Name)
 			assertCreatingClusters(clusterSet1Name, 5)
@@ -681,6 +705,34 @@ var _ = ginkgo.Describe("Placement", func() {
 			assertPlacementConditionSatisfied(placementName, nod, false)
 		})
 
+		ginkgo.It("Should schedule successfully once new labelselector type clusterset is bound", func() {
+			ginkgo.By("Bind clusterset to the placement namespace")
+			assertCreatingLabelSelectorClusterSet(clusterSet1Name, map[string]string{
+				"vendor": "openShift",
+			})
+			assertCreatingClusterSetBinding(clusterSet1Name)
+			assertCreatingClusterWithLabel(clusterName+"1", map[string]string{
+				"vendor": "openShift",
+			})
+			assertCreatingPlacementWithDecision(placementName, noc(2), 1, clusterapiv1beta1.PrioritizerPolicy{}, []clusterapiv1beta1.Toleration{})
+
+			ginkgo.By("Bind one more labelselector clusterset to the placement namespace")
+			assertCreatingLabelSelectorClusterSet(clusterSet2Name, map[string]string{
+				"vendor": "IKS",
+			})
+			assertCreatingClusterSetBinding(clusterSet2Name)
+			assertCreatingClusterWithLabel(clusterName+"2", map[string]string{
+				"vendor": "IKS",
+			})
+
+			nod := 2
+			assertNumberOfDecisions(placementName, nod)
+			assertPlacementConditionSatisfied(placementName, nod, true)
+
+			assertDeletingCluster(clusterName + "1")
+			assertDeletingCluster(clusterName + "2")
+		})
+
 		ginkgo.It("Should create multiple placementdecisions once scheduled", func() {
 			assertBindingClusterSet(clusterSet1Name)
 			assertCreatingClusters(clusterSet1Name, 101)
@@ -981,7 +1033,7 @@ var _ = ginkgo.Describe("Placement", func() {
 			assertClusterNamesOfDecisions(placementName, []string{clusterNames[0], clusterNames[2]})
 		})
 
-		ginkgo.It("Should re-schedule successfully once a new cluster added/deleted", func() {
+		ginkgo.It("Should re-schedule successfully once a new cluster with resources added/deleted", func() {
 			// cluster settings
 			clusterNames := []string{
 				clusterName + "-1",
@@ -1066,10 +1118,10 @@ var _ = ginkgo.Describe("Placement", func() {
 				"vendor": "openShift",
 			})
 			assertCreatingClusterSetBinding(clusterSet1Name)
-			assertCreatingClusterWithLabel("cluster1", map[string]string{
+			assertCreatingClusterWithLabel(clusterName+"1", map[string]string{
 				"vendor": "openShift",
 			})
-			assertCreatingClusterWithLabel("cluster2", map[string]string{
+			assertCreatingClusterWithLabel(clusterName+"2", map[string]string{
 				"vendor": "IKS",
 			})
 			assertCreatingPlacementWithDecision(placementName, noc(10), 1, clusterapiv1beta1.PrioritizerPolicy{}, []clusterapiv1beta1.Toleration{})
@@ -1088,6 +1140,12 @@ var _ = ginkgo.Describe("Placement", func() {
 			})
 			assertNumberOfDecisions(placementName, 1)
 			assertPlacementConditionSatisfied(placementName, 1, false)
+
+			ginkgo.By("Delete the cluster")
+			assertDeletingCluster(clusterName + "1")
+			assertNumberOfDecisions(placementName, 0)
+
+			assertDeletingCluster(clusterName + "2")
 		})
 
 		ginkgo.It("Should re-schedule successfully once a clustersetbinding deleted/added", func() {