diff --git a/cli/azd/cmd/middleware/hooks.go b/cli/azd/cmd/middleware/hooks.go
index d43794fbeb4..fdcaa9257d1 100644
--- a/cli/azd/cmd/middleware/hooks.go
+++ b/cli/azd/cmd/middleware/hooks.go
@@ -14,26 +14,27 @@ import (
 	"github.com/azure/azure-dev/cli/azd/pkg/ext"
 	"github.com/azure/azure-dev/cli/azd/pkg/input"
 	"github.com/azure/azure-dev/cli/azd/pkg/ioc"
+	"github.com/azure/azure-dev/cli/azd/pkg/lazy"
 	"github.com/azure/azure-dev/cli/azd/pkg/output/ux"
 	"github.com/azure/azure-dev/cli/azd/pkg/project"
 )
 
 type HooksMiddleware struct {
-	envManager     environment.Manager
-	env            *environment.Environment
-	projectConfig  *project.ProjectConfig
-	importManager  *project.ImportManager
-	commandRunner  exec.CommandRunner
-	console        input.Console
-	options        *Options
-	serviceLocator ioc.ServiceLocator
+	envManager        environment.Manager
+	env               *environment.Environment
+	lazyProjectConfig *lazy.Lazy[*project.ProjectConfig]
+	importManager     *project.ImportManager
+	commandRunner     exec.CommandRunner
+	console           input.Console
+	options           *Options
+	serviceLocator    ioc.ServiceLocator
 }
 
 // Creates a new instance of the Hooks middleware
 func NewHooksMiddleware(
 	envManager environment.Manager,
 	env *environment.Environment,
-	projectConfig *project.ProjectConfig,
+	lazyProjectConfig *lazy.Lazy[*project.ProjectConfig],
 	importManager *project.ImportManager,
 	commandRunner exec.CommandRunner,
 	console input.Console,
@@ -41,54 +42,62 @@ func NewHooksMiddleware(
 	serviceLocator ioc.ServiceLocator,
 ) Middleware {
 	return &HooksMiddleware{
-		envManager:     envManager,
-		env:            env,
-		projectConfig:  projectConfig,
-		importManager:  importManager,
-		commandRunner:  commandRunner,
-		console:        console,
-		options:        options,
-		serviceLocator: serviceLocator,
+		envManager:        envManager,
+		env:               env,
+		lazyProjectConfig: lazyProjectConfig,
+		importManager:     importManager,
+		commandRunner:     commandRunner,
+		console:           console,
+		options:           options,
+		serviceLocator:    serviceLocator,
 	}
 }
 
 // Runs the Hooks middleware
 func (m *HooksMiddleware) Run(ctx context.Context, next NextFn) (*actions.ActionResult, error) {
+	projectConfig, err := m.lazyProjectConfig.GetValue()
+	if err != nil || projectConfig == nil {
+		log.Println("azd project is not available, skipping all hook registrations.")
+		return next(ctx)
+	}
+
 	// Validate hooks and display any warnings
 	if !m.options.IsChildAction(ctx) {
-		if err := m.validateHooks(ctx, m.projectConfig); err != nil {
+		if err := m.validateHooks(ctx, projectConfig); err != nil {
 			return nil, fmt.Errorf("failed validating hooks, %w", err)
 		}
 	}
 
-	if err := m.registerServiceHooks(ctx); err != nil {
+	if err := m.registerServiceHooks(ctx, projectConfig); err != nil {
 		return nil, fmt.Errorf("failed registering service hooks, %w", err)
 	}
 
-	return m.registerCommandHooks(ctx, next)
+	return m.registerCommandHooks(ctx, projectConfig, next)
 }
 
 // Register command level hooks for the executing cobra command & action
 // Invokes the middleware next function
+
 func (m *HooksMiddleware) registerCommandHooks(
 	ctx context.Context,
+	projectConfig *project.ProjectConfig,
 	next NextFn,
 ) (*actions.ActionResult, error) {
-	if len(m.projectConfig.Hooks) == 0 {
+	if len(projectConfig.Hooks) == 0 {
 		log.Println(
 			"azd project does not contain any command hooks, skipping command hook registrations.",
 		)
 		return next(ctx)
 	}
 
-	hooksManager := ext.NewHooksManager(m.projectConfig.Path, m.commandRunner)
+	hooksManager := ext.NewHooksManager(projectConfig.Path, m.commandRunner)
 	hooksRunner := ext.NewHooksRunner(
 		hooksManager,
 		m.commandRunner,
 		m.envManager,
 		m.console,
-		m.projectConfig.Path,
-		m.projectConfig.Hooks,
+		projectConfig.Path,
+		projectConfig.Hooks,
 		m.env,
 		m.serviceLocator,
 	)
@@ -117,8 +126,11 @@ func (m *HooksMiddleware) registerCommandHooks(
 
 // Registers event handlers for all services within the project configuration
 // Runs hooks for each matching event handler
-func (m *HooksMiddleware) registerServiceHooks(ctx context.Context) error {
-	stableServices, err := m.importManager.ServiceStable(ctx, m.projectConfig)
+func (m *HooksMiddleware) registerServiceHooks(
+	ctx context.Context,
+	projectConfig *project.ProjectConfig,
+) error {
+	stableServices, err := m.importManager.ServiceStable(ctx, projectConfig)
 	if err != nil {
 		return fmt.Errorf("failed getting services: %w", err)
 	}
diff --git a/cli/azd/cmd/middleware/hooks_test.go b/cli/azd/cmd/middleware/hooks_test.go
index f33d531d9dc..5849ac039ab 100644
--- a/cli/azd/cmd/middleware/hooks_test.go
+++ b/cli/azd/cmd/middleware/hooks_test.go
@@ -15,6 +15,7 @@ import (
 	"github.com/azure/azure-dev/cli/azd/pkg/environment/azdcontext"
 	"github.com/azure/azure-dev/cli/azd/pkg/exec"
 	"github.com/azure/azure-dev/cli/azd/pkg/ext"
+	"github.com/azure/azure-dev/cli/azd/pkg/lazy"
 	"github.com/azure/azure-dev/cli/azd/pkg/project"
 	"github.com/azure/azure-dev/cli/azd/test/mocks"
 	"github.com/azure/azure-dev/cli/azd/test/mocks/mockenv"
@@ -288,6 +289,34 @@ func Test_ServiceHooks_Registered(t *testing.T) {
 	require.Equal(t, 1, preDeployCount)
 }
 
+func Test_HooksMiddleware_SkipsWhenProjectUnavailable(t *testing.T) {
+	mockContext := mocks.NewMockContext(context.Background())
+	envManager := &mockenv.MockEnvManager{}
+	env := environment.New("test")
+
+	lazyProjectConfig := lazy.NewLazy(func() (*project.ProjectConfig, error) {
+		return nil, errors.New("failed to load project")
+	})
+
+	middleware := NewHooksMiddleware(
+		envManager,
+		env,
+		lazyProjectConfig,
+		project.NewImportManager(nil),
+		mockContext.CommandRunner,
+		mockContext.Console,
+		&Options{CommandPath: "command"},
+		mockContext.Container,
+	)
+
+	nextFn, actionRan := createNextFn()
+	result, err := middleware.Run(*mockContext.Context, nextFn)
+
+	require.NoError(t, err)
+	require.NotNil(t, result)
+	require.True(t, *actionRan)
+}
+
 func createAzdContext(t *testing.T) *azdcontext.AzdContext {
 	tempDir := t.TempDir()
 	ostest.Chdir(t, tempDir)
@@ -343,10 +372,12 @@ func runMiddleware(
 	envManager.On("Save", mock.Anything, mock.Anything).Return(nil)
 	envManager.On("Reload", mock.Anything, mock.Anything).Return(nil)
 
+	lazyProjectConfig := lazy.From(projectConfig)
+
 	middleware := NewHooksMiddleware(
 		envManager,
 		env,
-		projectConfig,
+		lazyProjectConfig,
 		project.NewImportManager(nil),
 		mockContext.CommandRunner,
 		mockContext.Console,