diff --git a/pkg/syncer/metadatasyncer.go b/pkg/syncer/metadatasyncer.go
index 21f300db67..c77b08cf35 100644
--- a/pkg/syncer/metadatasyncer.go
+++ b/pkg/syncer/metadatasyncer.go
@@ -141,7 +141,8 @@ const (
 	ResourceKindSnapshot                 = "VolumeSnapshot"
 	PVCQuotaExtensionServiceName         = "volume.cns.vsphere.vmware.com"
 	SnapQuotaExtensionServiceName        = "snapshot.cns.vsphere.vmware.com"
-	VMServiceExtensionServiceName        = "vmware-system-vmop-webhook-service"
+	VMExtensionServiceName               = "vmware-system-vmop-webhook-service"
+	VMSnapshotExtensionServiceName       = "snapshot-vmware-system-vmop-webhook-service"
 	scParamStoragePolicyID               = "storagePolicyID"
 	StorageQuotaPeriodicSyncInstanceName = "storage-quota-periodic-sync"
 	FileVolumePrefix                     = "file:"
@@ -1196,7 +1197,8 @@ func calculateVMServiceStoragePolicyUsageReservedForNamespace(ctx context.Contex
 	}
 	storagePolicyToReservedMap := make(map[string]*resource.Quantity)
 	for _, storagePolicyUsage := range supList.Items {
-		if storagePolicyUsage.Spec.ResourceExtensionName == VMServiceExtensionServiceName {
+		if storagePolicyUsage.Spec.ResourceExtensionName == VMExtensionServiceName ||
+			storagePolicyUsage.Spec.ResourceExtensionName == VMSnapshotExtensionServiceName {
 			log.Debugf("calculateVMServiceStoragePolicyUsageReservedForNamespace: Processing StoragePolicyUsage"+
 				" Name: %q, Namespace: %q", storagePolicyUsage.Name, storagePolicyUsage.Namespace)
 			if storagePolicyUsage.DeletionTimestamp != nil {
diff --git a/pkg/syncer/metadatasyncer_test.go b/pkg/syncer/metadatasyncer_test.go
index 14443975f0..25a6c59506 100644
--- a/pkg/syncer/metadatasyncer_test.go
+++ b/pkg/syncer/metadatasyncer_test.go
@@ -23,6 +23,10 @@ import (
 
 	"k8s.io/apimachinery/pkg/api/resource"
 	metav1 "k8s.io/apimachinery/pkg/apis/meta/v1"
+	"k8s.io/apimachinery/pkg/runtime"
+	"sigs.k8s.io/controller-runtime/pkg/client"
+	"sigs.k8s.io/controller-runtime/pkg/client/fake"
+	cnsoperatorv1alpha1 "sigs.k8s.io/vsphere-csi-driver/v3/pkg/apis/cnsoperator"
 	storagepolicyv1alpha2 "sigs.k8s.io/vsphere-csi-driver/v3/pkg/apis/cnsoperator/storagepolicy/v1alpha2"
 )
 
@@ -214,3 +218,545 @@ func quantitiesEqual(a, b map[string]*resource.Quantity) bool {
 	}
 	return true
 }
+
+// errorClient is a wrapper around a fake client that returns errors on List operations
+type errorClient struct {
+	client.Client
+	err error
+}
+
+func (e *errorClient) List(ctx context.Context, list client.ObjectList, opts ...client.ListOption) error {
+	return e.err
+}
+
+func TestCalculateVMServiceStoragePolicyUsageReservedForNamespace(t *testing.T) {
+	ctx := context.Background()
+	namespace := "test-namespace"
+
+	tests := []struct {
+		name           string
+		setupClient    func() client.Client
+		expectedResult map[string]*resource.Quantity
+		expectError    bool
+	}{
+		{
+			name: "Success with single StoragePolicyUsage for VM extension",
+			setupClient: func() client.Client {
+				scheme := runtime.NewScheme()
+				_ = cnsoperatorv1alpha1.AddToScheme(scheme)
+
+				tenGi := resource.MustParse("10Gi")
+				spu := &storagepolicyv1alpha2.StoragePolicyUsage{
+					ObjectMeta: metav1.ObjectMeta{
+						Name:      "spu-1",
+						Namespace: namespace,
+					},
+					Spec: storagepolicyv1alpha2.StoragePolicyUsageSpec{
+						StoragePolicyId:       "policy-1",
+						ResourceExtensionName: VMExtensionServiceName,
+					},
+					Status: storagepolicyv1alpha2.StoragePolicyUsageStatus{
+						ResourceTypeLevelQuotaUsage: &storagepolicyv1alpha2.QuotaUsageDetails{
+							Reserved: &tenGi,
+						},
+					},
+				}
+
+				return fake.NewClientBuilder().
+					WithScheme(scheme).
+					WithObjects(spu).
+					Build()
+			},
+			expectedResult: func() map[string]*resource.Quantity {
+				tenGi := resource.MustParse("10Gi")
+				return map[string]*resource.Quantity{
+					"policy-1": resource.NewQuantity(tenGi.Value(), resource.BinarySI),
+				}
+			}(),
+			expectError: false,
+		},
+		{
+			name: "Success with single StoragePolicyUsage for VM snapshot extension",
+			setupClient: func() client.Client {
+				scheme := runtime.NewScheme()
+				_ = cnsoperatorv1alpha1.AddToScheme(scheme)
+
+				fiveGi := resource.MustParse("5Gi")
+				spu := &storagepolicyv1alpha2.StoragePolicyUsage{
+					ObjectMeta: metav1.ObjectMeta{
+						Name:      "spu-2",
+						Namespace: namespace,
+					},
+					Spec: storagepolicyv1alpha2.StoragePolicyUsageSpec{
+						StoragePolicyId:       "policy-2",
+						ResourceExtensionName: VMSnapshotExtensionServiceName,
+					},
+					Status: storagepolicyv1alpha2.StoragePolicyUsageStatus{
+						ResourceTypeLevelQuotaUsage: &storagepolicyv1alpha2.QuotaUsageDetails{
+							Reserved: &fiveGi,
+						},
+					},
+				}
+
+				return fake.NewClientBuilder().
+					WithScheme(scheme).
+					WithObjects(spu).
+					Build()
+			},
+			expectedResult: func() map[string]*resource.Quantity {
+				fiveGi := resource.MustParse("5Gi")
+				return map[string]*resource.Quantity{
+					"policy-2": resource.NewQuantity(fiveGi.Value(), resource.BinarySI),
+				}
+			}(),
+			expectError: false,
+		},
+		{
+			name: "Success with multiple StoragePolicyUsage objects for same policy",
+			setupClient: func() client.Client {
+				scheme := runtime.NewScheme()
+				_ = cnsoperatorv1alpha1.AddToScheme(scheme)
+
+				tenGi := resource.MustParse("10Gi")
+				fiveGi := resource.MustParse("5Gi")
+				spu1 := &storagepolicyv1alpha2.StoragePolicyUsage{
+					ObjectMeta: metav1.ObjectMeta{
+						Name:      "spu-1",
+						Namespace: namespace,
+					},
+					Spec: storagepolicyv1alpha2.StoragePolicyUsageSpec{
+						StoragePolicyId:       "policy-1",
+						ResourceExtensionName: VMExtensionServiceName,
+					},
+					Status: storagepolicyv1alpha2.StoragePolicyUsageStatus{
+						ResourceTypeLevelQuotaUsage: &storagepolicyv1alpha2.QuotaUsageDetails{
+							Reserved: &tenGi,
+						},
+					},
+				}
+				spu2 := &storagepolicyv1alpha2.StoragePolicyUsage{
+					ObjectMeta: metav1.ObjectMeta{
+						Name:      "spu-2",
+						Namespace: namespace,
+					},
+					Spec: storagepolicyv1alpha2.StoragePolicyUsageSpec{
+						StoragePolicyId:       "policy-1",
+						ResourceExtensionName: VMSnapshotExtensionServiceName,
+					},
+					Status: storagepolicyv1alpha2.StoragePolicyUsageStatus{
+						ResourceTypeLevelQuotaUsage: &storagepolicyv1alpha2.QuotaUsageDetails{
+							Reserved: &fiveGi,
+						},
+					},
+				}
+
+				return fake.NewClientBuilder().
+					WithScheme(scheme).
+					WithObjects(spu1, spu2).
+					Build()
+			},
+			expectedResult: func() map[string]*resource.Quantity {
+				fifteenGi := resource.MustParse("15Gi")
+				return map[string]*resource.Quantity{
+					"policy-1": resource.NewQuantity(fifteenGi.Value(), resource.BinarySI),
+				}
+			}(),
+			expectError: false,
+		},
+		{
+			name: "Success with multiple StoragePolicyUsage objects for different policies",
+			setupClient: func() client.Client {
+				scheme := runtime.NewScheme()
+				_ = cnsoperatorv1alpha1.AddToScheme(scheme)
+
+				tenGi := resource.MustParse("10Gi")
+				fiveGi := resource.MustParse("5Gi")
+				spu1 := &storagepolicyv1alpha2.StoragePolicyUsage{
+					ObjectMeta: metav1.ObjectMeta{
+						Name:      "spu-1",
+						Namespace: namespace,
+					},
+					Spec: storagepolicyv1alpha2.StoragePolicyUsageSpec{
+						StoragePolicyId:       "policy-1",
+						ResourceExtensionName: VMExtensionServiceName,
+					},
+					Status: storagepolicyv1alpha2.StoragePolicyUsageStatus{
+						ResourceTypeLevelQuotaUsage: &storagepolicyv1alpha2.QuotaUsageDetails{
+							Reserved: &tenGi,
+						},
+					},
+				}
+				spu2 := &storagepolicyv1alpha2.StoragePolicyUsage{
+					ObjectMeta: metav1.ObjectMeta{
+						Name:      "spu-2",
+						Namespace: namespace,
+					},
+					Spec: storagepolicyv1alpha2.StoragePolicyUsageSpec{
+						StoragePolicyId:       "policy-2",
+						ResourceExtensionName: VMSnapshotExtensionServiceName,
+					},
+					Status: storagepolicyv1alpha2.StoragePolicyUsageStatus{
+						ResourceTypeLevelQuotaUsage: &storagepolicyv1alpha2.QuotaUsageDetails{
+							Reserved: &fiveGi,
+						},
+					},
+				}
+
+				return fake.NewClientBuilder().
+					WithScheme(scheme).
+					WithObjects(spu1, spu2).
+					Build()
+			},
+			expectedResult: func() map[string]*resource.Quantity {
+				tenGi := resource.MustParse("10Gi")
+				fiveGi := resource.MustParse("5Gi")
+				return map[string]*resource.Quantity{
+					"policy-1": resource.NewQuantity(tenGi.Value(), resource.BinarySI),
+					"policy-2": resource.NewQuantity(fiveGi.Value(), resource.BinarySI),
+				}
+			}(),
+			expectError: false,
+		},
+		{
+			name: "Success with empty list",
+			setupClient: func() client.Client {
+				scheme := runtime.NewScheme()
+				_ = cnsoperatorv1alpha1.AddToScheme(scheme)
+
+				return fake.NewClientBuilder().
+					WithScheme(scheme).
+					Build()
+			},
+			expectedResult: map[string]*resource.Quantity{},
+			expectError:    false,
+		},
+		{
+			name: "Success with StoragePolicyUsage filtered out - wrong ResourceExtensionName",
+			setupClient: func() client.Client {
+				scheme := runtime.NewScheme()
+				_ = cnsoperatorv1alpha1.AddToScheme(scheme)
+
+				tenGi := resource.MustParse("10Gi")
+				spu := &storagepolicyv1alpha2.StoragePolicyUsage{
+					ObjectMeta: metav1.ObjectMeta{
+						Name:      "spu-1",
+						Namespace: namespace,
+					},
+					Spec: storagepolicyv1alpha2.StoragePolicyUsageSpec{
+						StoragePolicyId:       "policy-1",
+						ResourceExtensionName: "other-extension",
+					},
+					Status: storagepolicyv1alpha2.StoragePolicyUsageStatus{
+						ResourceTypeLevelQuotaUsage: &storagepolicyv1alpha2.QuotaUsageDetails{
+							Reserved: &tenGi,
+						},
+					},
+				}
+
+				return fake.NewClientBuilder().
+					WithScheme(scheme).
+					WithObjects(spu).
+					Build()
+			},
+			expectedResult: map[string]*resource.Quantity{},
+			expectError:    false,
+		},
+		{
+			name: "Success with StoragePolicyUsage filtered out - marked for deletion",
+			setupClient: func() client.Client {
+				scheme := runtime.NewScheme()
+				_ = cnsoperatorv1alpha1.AddToScheme(scheme)
+
+				now := metav1.Now()
+				tenGi := resource.MustParse("10Gi")
+				spu := &storagepolicyv1alpha2.StoragePolicyUsage{
+					ObjectMeta: metav1.ObjectMeta{
+						Name:              "spu-1",
+						Namespace:         namespace,
+						DeletionTimestamp: &now,
+						Finalizers:        []string{"test-finalizer"},
+					},
+					Spec: storagepolicyv1alpha2.StoragePolicyUsageSpec{
+						StoragePolicyId:       "policy-1",
+						ResourceExtensionName: VMExtensionServiceName,
+					},
+					Status: storagepolicyv1alpha2.StoragePolicyUsageStatus{
+						ResourceTypeLevelQuotaUsage: &storagepolicyv1alpha2.QuotaUsageDetails{
+							Reserved: &tenGi,
+						},
+					},
+				}
+
+				return fake.NewClientBuilder().
+					WithScheme(scheme).
+					WithObjects(spu).
+					Build()
+			},
+			expectedResult: map[string]*resource.Quantity{},
+			expectError:    false,
+		},
+		{
+			name: "Success with StoragePolicyUsage filtered out - missing ResourceTypeLevelQuotaUsage",
+			setupClient: func() client.Client {
+				scheme := runtime.NewScheme()
+				_ = cnsoperatorv1alpha1.AddToScheme(scheme)
+
+				spu := &storagepolicyv1alpha2.StoragePolicyUsage{
+					ObjectMeta: metav1.ObjectMeta{
+						Name:      "spu-1",
+						Namespace: namespace,
+					},
+					Spec: storagepolicyv1alpha2.StoragePolicyUsageSpec{
+						StoragePolicyId:       "policy-1",
+						ResourceExtensionName: VMExtensionServiceName,
+					},
+					Status: storagepolicyv1alpha2.StoragePolicyUsageStatus{
+						ResourceTypeLevelQuotaUsage: nil,
+					},
+				}
+
+				return fake.NewClientBuilder().
+					WithScheme(scheme).
+					WithObjects(spu).
+					Build()
+			},
+			expectedResult: map[string]*resource.Quantity{},
+			expectError:    false,
+		},
+		{
+			name: "Success with mixed valid and invalid StoragePolicyUsage objects",
+			setupClient: func() client.Client {
+				scheme := runtime.NewScheme()
+				_ = cnsoperatorv1alpha1.AddToScheme(scheme)
+
+				now := metav1.Now()
+				tenGi := resource.MustParse("10Gi")
+				fiveGi := resource.MustParse("5Gi")
+
+				// Valid SPU
+				spu1 := &storagepolicyv1alpha2.StoragePolicyUsage{
+					ObjectMeta: metav1.ObjectMeta{
+						Name:      "spu-1",
+						Namespace: namespace,
+					},
+					Spec: storagepolicyv1alpha2.StoragePolicyUsageSpec{
+						StoragePolicyId:       "policy-1",
+						ResourceExtensionName: VMExtensionServiceName,
+					},
+					Status: storagepolicyv1alpha2.StoragePolicyUsageStatus{
+						ResourceTypeLevelQuotaUsage: &storagepolicyv1alpha2.QuotaUsageDetails{
+							Reserved: &tenGi,
+						},
+					},
+				}
+
+				// Invalid SPU - wrong extension name
+				spu2 := &storagepolicyv1alpha2.StoragePolicyUsage{
+					ObjectMeta: metav1.ObjectMeta{
+						Name:      "spu-2",
+						Namespace: namespace,
+					},
+					Spec: storagepolicyv1alpha2.StoragePolicyUsageSpec{
+						StoragePolicyId:       "policy-2",
+						ResourceExtensionName: "other-extension",
+					},
+					Status: storagepolicyv1alpha2.StoragePolicyUsageStatus{
+						ResourceTypeLevelQuotaUsage: &storagepolicyv1alpha2.QuotaUsageDetails{
+							Reserved: &fiveGi,
+						},
+					},
+				}
+
+				// Invalid SPU - marked for deletion
+				spu3 := &storagepolicyv1alpha2.StoragePolicyUsage{
+					ObjectMeta: metav1.ObjectMeta{
+						Name:              "spu-3",
+						Namespace:         namespace,
+						DeletionTimestamp: &now,
+						Finalizers:        []string{"test-finalizer"},
+					},
+					Spec: storagepolicyv1alpha2.StoragePolicyUsageSpec{
+						StoragePolicyId:       "policy-3",
+						ResourceExtensionName: VMSnapshotExtensionServiceName,
+					},
+					Status: storagepolicyv1alpha2.StoragePolicyUsageStatus{
+						ResourceTypeLevelQuotaUsage: &storagepolicyv1alpha2.QuotaUsageDetails{
+							Reserved: &fiveGi,
+						},
+					},
+				}
+
+				// Invalid SPU - missing status
+				spu4 := &storagepolicyv1alpha2.StoragePolicyUsage{
+					ObjectMeta: metav1.ObjectMeta{
+						Name:      "spu-4",
+						Namespace: namespace,
+					},
+					Spec: storagepolicyv1alpha2.StoragePolicyUsageSpec{
+						StoragePolicyId:       "policy-4",
+						ResourceExtensionName: VMExtensionServiceName,
+					},
+					Status: storagepolicyv1alpha2.StoragePolicyUsageStatus{
+						ResourceTypeLevelQuotaUsage: nil,
+					},
+				}
+
+				// Valid SPU
+				spu5 := &storagepolicyv1alpha2.StoragePolicyUsage{
+					ObjectMeta: metav1.ObjectMeta{
+						Name:      "spu-5",
+						Namespace: namespace,
+					},
+					Spec: storagepolicyv1alpha2.StoragePolicyUsageSpec{
+						StoragePolicyId:       "policy-1",
+						ResourceExtensionName: VMSnapshotExtensionServiceName,
+					},
+					Status: storagepolicyv1alpha2.StoragePolicyUsageStatus{
+						ResourceTypeLevelQuotaUsage: &storagepolicyv1alpha2.QuotaUsageDetails{
+							Reserved: &fiveGi,
+						},
+					},
+				}
+
+				return fake.NewClientBuilder().
+					WithScheme(scheme).
+					WithObjects(spu1, spu2, spu3, spu4, spu5).
+					Build()
+			},
+			expectedResult: func() map[string]*resource.Quantity {
+				fifteenGi := resource.MustParse("15Gi")
+				return map[string]*resource.Quantity{
+					"policy-1": resource.NewQuantity(fifteenGi.Value(), resource.BinarySI),
+				}
+			}(),
+			expectError: false,
+		},
+		{
+			name: "Error when List fails",
+			setupClient: func() client.Client {
+				scheme := runtime.NewScheme()
+				_ = cnsoperatorv1alpha1.AddToScheme(scheme)
+
+				baseClient := fake.NewClientBuilder().
+					WithScheme(scheme).
+					Build()
+
+				return &errorClient{
+					Client: baseClient,
+					err:    errors.New("list error"),
+				}
+			},
+			expectedResult: nil,
+			expectError:    true,
+		},
+		{
+			name: "Success with zero reserved quantity",
+			setupClient: func() client.Client {
+				scheme := runtime.NewScheme()
+				_ = cnsoperatorv1alpha1.AddToScheme(scheme)
+
+				zero := resource.MustParse("0Gi")
+				spu := &storagepolicyv1alpha2.StoragePolicyUsage{
+					ObjectMeta: metav1.ObjectMeta{
+						Name:      "spu-1",
+						Namespace: namespace,
+					},
+					Spec: storagepolicyv1alpha2.StoragePolicyUsageSpec{
+						StoragePolicyId:       "policy-1",
+						ResourceExtensionName: VMExtensionServiceName,
+					},
+					Status: storagepolicyv1alpha2.StoragePolicyUsageStatus{
+						ResourceTypeLevelQuotaUsage: &storagepolicyv1alpha2.QuotaUsageDetails{
+							Reserved: &zero,
+						},
+					},
+				}
+
+				return fake.NewClientBuilder().
+					WithScheme(scheme).
+					WithObjects(spu).
+					Build()
+			},
+			expectedResult: map[string]*resource.Quantity{
+				"policy-1": resource.NewQuantity(0, resource.BinarySI),
+			},
+			expectError: false,
+		},
+		{
+			name: "Success with StoragePolicyUsage in different namespace",
+			setupClient: func() client.Client {
+				scheme := runtime.NewScheme()
+				_ = cnsoperatorv1alpha1.AddToScheme(scheme)
+
+				tenGi := resource.MustParse("10Gi")
+				// SPU in different namespace
+				spu1 := &storagepolicyv1alpha2.StoragePolicyUsage{
+					ObjectMeta: metav1.ObjectMeta{
+						Name:      "spu-1",
+						Namespace: "other-namespace",
+					},
+					Spec: storagepolicyv1alpha2.StoragePolicyUsageSpec{
+						StoragePolicyId:       "policy-1",
+						ResourceExtensionName: VMExtensionServiceName,
+					},
+					Status: storagepolicyv1alpha2.StoragePolicyUsageStatus{
+						ResourceTypeLevelQuotaUsage: &storagepolicyv1alpha2.QuotaUsageDetails{
+							Reserved: &tenGi,
+						},
+					},
+				}
+
+				// SPU in target namespace
+				fiveGi := resource.MustParse("5Gi")
+				spu2 := &storagepolicyv1alpha2.StoragePolicyUsage{
+					ObjectMeta: metav1.ObjectMeta{
+						Name:      "spu-2",
+						Namespace: namespace,
+					},
+					Spec: storagepolicyv1alpha2.StoragePolicyUsageSpec{
+						StoragePolicyId:       "policy-2",
+						ResourceExtensionName: VMExtensionServiceName,
+					},
+					Status: storagepolicyv1alpha2.StoragePolicyUsageStatus{
+						ResourceTypeLevelQuotaUsage: &storagepolicyv1alpha2.QuotaUsageDetails{
+							Reserved: &fiveGi,
+						},
+					},
+				}
+
+				return fake.NewClientBuilder().
+					WithScheme(scheme).
+					WithObjects(spu1, spu2).
+					Build()
+			},
+			expectedResult: func() map[string]*resource.Quantity {
+				fiveGi := resource.MustParse("5Gi")
+				return map[string]*resource.Quantity{
+					"policy-2": resource.NewQuantity(fiveGi.Value(), resource.BinarySI),
+				}
+			}(),
+			expectError: false,
+		},
+	}
+
+	for _, tt := range tests {
+		t.Run(tt.name, func(t *testing.T) {
+			fakeClient := tt.setupClient()
+			result, err := calculateVMServiceStoragePolicyUsageReservedForNamespace(ctx, fakeClient, namespace)
+
+			if tt.expectError {
+				if err == nil {
+					t.Errorf("calculateVMServiceStoragePolicyUsageReservedForNamespace() expected error but got nil")
+				}
+			} else {
+				if err != nil {
+					t.Errorf("calculateVMServiceStoragePolicyUsageReservedForNamespace() returned error: %v", err)
+				}
+				if !quantitiesEqual(result, tt.expectedResult) {
+					t.Errorf("calculateVMServiceStoragePolicyUsageReservedForNamespace() result = %v; want %v",
+						result, tt.expectedResult)
+				}
+			}
+		})
+	}
+}