diff --git a/internal/gatewayapi/listener.go b/internal/gatewayapi/listener.go
index 5a54968202d..0d9b04a4027 100644
--- a/internal/gatewayapi/listener.go
+++ b/internal/gatewayapi/listener.go
@@ -29,7 +29,7 @@ func (t *Translator) ProcessListeners(gateways []*GatewayContext, xdsIR XdsIRMap
 	// Infra IR proxy ports must be unique.
 	foundPorts := make(map[string][]*protocolPort)
 	t.validateConflictedLayer7Listeners(gateways)
-	t.validateConflictedLayer4Listeners(gateways, gwapiv1.TCPProtocolType, gwapiv1.TLSProtocolType)
+	t.validateConflictedLayer4Listeners(gateways, gwapiv1.TCPProtocolType)
 	t.validateConflictedLayer4Listeners(gateways, gwapiv1.UDPProtocolType)
 	if t.MergeGateways {
 		t.validateConflictedMergedListeners(gateways)
diff --git a/internal/gatewayapi/route.go b/internal/gatewayapi/route.go
index a2a874e08b1..d10331ca21b 100644
--- a/internal/gatewayapi/route.go
+++ b/internal/gatewayapi/route.go
@@ -793,7 +793,7 @@ func (t *Translator) processTLSRouteParentRefs(tlsRoute *TLSRouteContext, resour
 			if irListener != nil {
 				irRoute := &ir.TCPRoute{
 					Name: irTCPRouteName(tlsRoute),
-					TLS: &ir.TLS{Passthrough: &ir.TLSInspectorConfig{
+					TLS: &ir.TLS{TLSInspectorConfig: &ir.TLSInspectorConfig{
 						SNIs: hosts,
 					}},
 					Destination: &ir.RouteDestination{
@@ -1082,6 +1082,14 @@ func (t *Translator) processTCPRouteParentRefs(tcpRoute *TCPRouteContext, resour
 			accepted = true
 			irKey := t.getIRKey(listener.gateway)
 
+			tls := ir.TLS{
+				Terminate: irTLSConfigs(listener.tlsSecrets),
+			}
+			if listener.Hostname != nil {
+				tls.TLSInspectorConfig = &ir.TLSInspectorConfig{
+					SNIs: []string{string(*listener.Hostname)},
+				}
+			}
 			gwXdsIR := xdsIR[irKey]
 			irListener := gwXdsIR.GetTCPListener(irListenerName(listener))
 			if irListener != nil {
@@ -1091,7 +1099,7 @@ func (t *Translator) processTCPRouteParentRefs(tcpRoute *TCPRouteContext, resour
 						Name:     irRouteDestinationName(tcpRoute, -1 /*rule index*/),
 						Settings: destSettings,
 					},
-					TLS: &ir.TLS{Terminate: irTLSConfigs(listener.tlsSecrets)},
+					TLS: &tls,
 				}
 				irListener.Routes = append(irListener.Routes, irRoute)
 
diff --git a/internal/gatewayapi/testdata/gateway-with-listener-with-tls-terminate-and-passthrough.out.yaml b/internal/gatewayapi/testdata/gateway-with-listener-with-tls-terminate-and-passthrough.out.yaml
index 8b6f602c543..deeae09f620 100644
--- a/internal/gatewayapi/testdata/gateway-with-listener-with-tls-terminate-and-passthrough.out.yaml
+++ b/internal/gatewayapi/testdata/gateway-with-listener-with-tls-terminate-and-passthrough.out.yaml
@@ -222,6 +222,6 @@ xdsIR:
             weight: 1
         name: tlsroute/default/tlsroute-1
         tls:
-          passthrough:
+          inspector:
             snis:
             - foo.bar.com
diff --git a/internal/gatewayapi/testdata/gateway-with-two-listeners-on-same-tcp-or-tls-port.out.yaml b/internal/gatewayapi/testdata/gateway-with-two-listeners-on-same-tcp-or-tls-port.out.yaml
index 3422f943b02..923ff633afe 100644
--- a/internal/gatewayapi/testdata/gateway-with-two-listeners-on-same-tcp-or-tls-port.out.yaml
+++ b/internal/gatewayapi/testdata/gateway-with-two-listeners-on-same-tcp-or-tls-port.out.yaml
@@ -45,11 +45,6 @@ gateways:
         kind: TCPRoute
     - attachedRoutes: 1
       conditions:
-      - lastTransitionTime: null
-        message: Only one TCP/TLS listener is allowed in a given port
-        reason: ProtocolConflict
-        status: "True"
-        type: Conflicted
       - lastTransitionTime: null
         message: Listener must have TLS set when protocol is TLS.
         reason: Invalid
diff --git a/internal/gatewayapi/testdata/tcproute-attaching-to-gateway-with-listener-tls-terminate.in.yaml b/internal/gatewayapi/testdata/tcproute-attaching-to-gateway-with-listener-tls-terminate.in.yaml
index b4beac9da1e..f516414d247 100644
--- a/internal/gatewayapi/testdata/tcproute-attaching-to-gateway-with-listener-tls-terminate.in.yaml
+++ b/internal/gatewayapi/testdata/tcproute-attaching-to-gateway-with-listener-tls-terminate.in.yaml
@@ -19,6 +19,19 @@ gateways:
           allowedRoutes:
             namespaces:
               from: All
+        - name: tls-hostname
+          hostname: "foo.bar.com"
+          protocol: TLS
+          port: 90
+          tls:
+            certificateRefs:
+              - group: ""
+                kind: Secret
+                name: tls-secret-1
+            mode: Terminate
+          allowedRoutes:
+            namespaces:
+              from: All
 tcpRoutes:
   - apiVersion: gateway.networking.k8s.io/v1alpha2
     kind: TCPRoute
@@ -29,10 +42,25 @@ tcpRoutes:
       parentRefs:
         - namespace: envoy-gateway
           name: gateway-1
+          sectionName: tls
       rules:
         - backendRefs:
             - name: service-1
               port: 8080
+  - apiVersion: gateway.networking.k8s.io/v1alpha2
+    kind: TCPRoute
+    metadata:
+      namespace: default
+      name: tcproute-2
+    spec:
+      parentRefs:
+        - namespace: envoy-gateway
+          name: gateway-1
+          sectionName: tls-hostname
+      rules:
+        - backendRefs:
+            - name: service-2
+              port: 8080
 
 secrets:
   - apiVersion: v1
diff --git a/internal/gatewayapi/testdata/tcproute-attaching-to-gateway-with-listener-tls-terminate.out.yaml b/internal/gatewayapi/testdata/tcproute-attaching-to-gateway-with-listener-tls-terminate.out.yaml
index cb2e63a0170..c7663c402d5 100644
--- a/internal/gatewayapi/testdata/tcproute-attaching-to-gateway-with-listener-tls-terminate.out.yaml
+++ b/internal/gatewayapi/testdata/tcproute-attaching-to-gateway-with-listener-tls-terminate.out.yaml
@@ -20,6 +20,19 @@ gateways:
           kind: Secret
           name: tls-secret-1
         mode: Terminate
+    - allowedRoutes:
+        namespaces:
+          from: All
+      hostname: foo.bar.com
+      name: tls-hostname
+      port: 90
+      protocol: TLS
+      tls:
+        certificateRefs:
+        - group: ""
+          kind: Secret
+          name: tls-secret-1
+        mode: Terminate
   status:
     listeners:
     - attachedRoutes: 1
@@ -43,6 +56,27 @@ gateways:
       supportedKinds:
       - group: gateway.networking.k8s.io
         kind: TCPRoute
+    - attachedRoutes: 1
+      conditions:
+      - lastTransitionTime: null
+        message: Sending translated listener configuration to the data plane
+        reason: Programmed
+        status: "True"
+        type: Programmed
+      - lastTransitionTime: null
+        message: Listener has been successfully translated
+        reason: Accepted
+        status: "True"
+        type: Accepted
+      - lastTransitionTime: null
+        message: Listener references have been resolved
+        reason: ResolvedRefs
+        status: "True"
+        type: ResolvedRefs
+      name: tls-hostname
+      supportedKinds:
+      - group: gateway.networking.k8s.io
+        kind: TCPRoute
 infraIR:
   envoy-gateway/gateway-1:
     proxy:
@@ -70,6 +104,7 @@ tcpRoutes:
     parentRefs:
     - name: gateway-1
       namespace: envoy-gateway
+      sectionName: tls
     rules:
     - backendRefs:
       - name: service-1
@@ -91,6 +126,40 @@ tcpRoutes:
       parentRef:
         name: gateway-1
         namespace: envoy-gateway
+        sectionName: tls
+- apiVersion: gateway.networking.k8s.io/v1alpha2
+  kind: TCPRoute
+  metadata:
+    creationTimestamp: null
+    name: tcproute-2
+    namespace: default
+  spec:
+    parentRefs:
+    - name: gateway-1
+      namespace: envoy-gateway
+      sectionName: tls-hostname
+    rules:
+    - backendRefs:
+      - name: service-2
+        port: 8080
+  status:
+    parents:
+    - conditions:
+      - lastTransitionTime: null
+        message: Route is accepted
+        reason: Accepted
+        status: "True"
+        type: Accepted
+      - lastTransitionTime: null
+        message: Resolved all the Object references for the Route
+        reason: ResolvedRefs
+        status: "True"
+        type: ResolvedRefs
+      controllerName: gateway.envoyproxy.io/gatewayclass-controller
+      parentRef:
+        name: gateway-1
+        namespace: envoy-gateway
+        sectionName: tls-hostname
 xdsIR:
   envoy-gateway/gateway-1:
     accessLog:
@@ -117,3 +186,26 @@ xdsIR:
             - name: envoy-gateway/tls-secret-1
               privateKey: 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
               serverCertificate: 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
+    - address: 0.0.0.0
+      name: envoy-gateway/gateway-1/tls-hostname
+      port: 10090
+      routes:
+      - destination:
+          name: tcproute/default/tcproute-2/rule/-1
+          settings:
+          - addressType: IP
+            endpoints:
+            - host: 7.7.7.7
+              port: 8080
+            protocol: TCP
+            weight: 1
+        name: tcproute/default/tcproute-2
+        tls:
+          inspector:
+            snis:
+            - foo.bar.com
+          terminate:
+            certificates:
+            - name: envoy-gateway/tls-secret-1
+              privateKey: 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
+              serverCertificate: 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
diff --git a/internal/gatewayapi/testdata/tlsroute-attaching-to-gateway.out.yaml b/internal/gatewayapi/testdata/tlsroute-attaching-to-gateway.out.yaml
index 90c2adb3124..a3dc7519ecd 100644
--- a/internal/gatewayapi/testdata/tlsroute-attaching-to-gateway.out.yaml
+++ b/internal/gatewayapi/testdata/tlsroute-attaching-to-gateway.out.yaml
@@ -109,6 +109,6 @@ xdsIR:
             weight: 1
         name: tlsroute/default/tlsroute-1
         tls:
-          passthrough:
+          inspector:
             snis:
             - foo.com
diff --git a/internal/gatewayapi/testdata/tlsroute-multiple.out.yaml b/internal/gatewayapi/testdata/tlsroute-multiple.out.yaml
index 10af5aaf19e..5a065e6d6bb 100644
--- a/internal/gatewayapi/testdata/tlsroute-multiple.out.yaml
+++ b/internal/gatewayapi/testdata/tlsroute-multiple.out.yaml
@@ -143,7 +143,7 @@ xdsIR:
             weight: 1
         name: tlsroute/default/tlsroute-1
         tls:
-          passthrough:
+          inspector:
             snis:
             - foo.com
       - destination:
@@ -157,6 +157,6 @@ xdsIR:
             weight: 1
         name: tlsroute/default/tlsroute-2
         tls:
-          passthrough:
+          inspector:
             snis:
             - bar.com
diff --git a/internal/gatewayapi/testdata/tlsroute-with-backendref-in-other-namespace-allowed-by-refgrant.out.yaml b/internal/gatewayapi/testdata/tlsroute-with-backendref-in-other-namespace-allowed-by-refgrant.out.yaml
index 2612b521b34..1f8515c6532 100644
--- a/internal/gatewayapi/testdata/tlsroute-with-backendref-in-other-namespace-allowed-by-refgrant.out.yaml
+++ b/internal/gatewayapi/testdata/tlsroute-with-backendref-in-other-namespace-allowed-by-refgrant.out.yaml
@@ -110,6 +110,6 @@ xdsIR:
             weight: 1
         name: tlsroute/default/tlsroute-1
         tls:
-          passthrough:
+          inspector:
             snis:
             - foo.com
diff --git a/internal/gatewayapi/testdata/tlsroute-with-empty-hostname.out.yaml b/internal/gatewayapi/testdata/tlsroute-with-empty-hostname.out.yaml
index 8a910c00e81..09664c0e41c 100644
--- a/internal/gatewayapi/testdata/tlsroute-with-empty-hostname.out.yaml
+++ b/internal/gatewayapi/testdata/tlsroute-with-empty-hostname.out.yaml
@@ -108,6 +108,6 @@ xdsIR:
             weight: 1
         name: tlsroute/default/tlsroute-1
         tls:
-          passthrough:
+          inspector:
             snis:
             - '*'
diff --git a/internal/gatewayapi/testdata/tlsroute-with-empty-listener-hostname.out.yaml b/internal/gatewayapi/testdata/tlsroute-with-empty-listener-hostname.out.yaml
index 57f27028b74..d40d0927396 100644
--- a/internal/gatewayapi/testdata/tlsroute-with-empty-listener-hostname.out.yaml
+++ b/internal/gatewayapi/testdata/tlsroute-with-empty-listener-hostname.out.yaml
@@ -110,6 +110,6 @@ xdsIR:
             weight: 1
         name: tlsroute/default/tlsroute-1
         tls:
-          passthrough:
+          inspector:
             snis:
             - foo.com
diff --git a/internal/ir/xds.go b/internal/ir/xds.go
index cc6adecbebb..126e8f8fbeb 100644
--- a/internal/ir/xds.go
+++ b/internal/ir/xds.go
@@ -1215,7 +1215,7 @@ type TCPRoute struct {
 type TLS struct {
 	// TLS information required for TLS Passthrough, If provided, incoming
 	// connections' server names are inspected and routed to backends accordingly.
-	Passthrough *TLSInspectorConfig `json:"passthrough,omitempty" yaml:"passthrough,omitempty"`
+	TLSInspectorConfig *TLSInspectorConfig `json:"inspector,omitempty" yaml:"inspector,omitempty"`
 	// TLS information required for TLS Termination
 	Terminate *TLSConfig `json:"terminate,omitempty" yaml:"terminate,omitempty"`
 }
@@ -1246,8 +1246,8 @@ func (t TCPRoute) Validate() error {
 		errs = errors.Join(errs, ErrRouteNameEmpty)
 	}
 
-	if t.TLS != nil && t.TLS.Passthrough != nil {
-		if err := t.TLS.Passthrough.Validate(); err != nil {
+	if t.TLS != nil && t.TLS.TLSInspectorConfig != nil {
+		if err := t.TLS.TLSInspectorConfig.Validate(); err != nil {
 			errs = errors.Join(errs, err)
 		}
 	}
@@ -1280,13 +1280,12 @@ func (t TCPRoute) Validate() error {
 }
 
 // TLSInspectorConfig holds the configuration required for inspecting TLS
-// passthrough connections.
+// connections.
 // +k8s:deepcopy-gen=true
 type TLSInspectorConfig struct {
 	// Server names that are compared against the server names of a new connection.
 	// Wildcard hosts are supported in the prefix form. Partial wildcards are not
 	// supported, and values like *w.example.com are invalid.
-	// SNIs are used only in case of TLS Passthrough.
 	SNIs []string `json:"snis,omitempty" yaml:"snis,omitempty"`
 }
 
diff --git a/internal/ir/xds_test.go b/internal/ir/xds_test.go
index 7251c7cb0f1..d777aa7a58d 100644
--- a/internal/ir/xds_test.go
+++ b/internal/ir/xds_test.go
@@ -119,7 +119,7 @@ var (
 	// TCPRoute
 	happyTCPRouteTLSPassthrough = TCPRoute{
 		Name:        "happy-tls-passthrough",
-		TLS:         &TLS{Passthrough: &TLSInspectorConfig{SNIs: []string{"example.com"}}},
+		TLS:         &TLS{TLSInspectorConfig: &TLSInspectorConfig{SNIs: []string{"example.com"}}},
 		Destination: &happyRouteDestination,
 	}
 	happyTCPRouteTLSTermination = TCPRoute{
@@ -138,7 +138,7 @@ var (
 
 	invalidSNITCPRoute = TCPRoute{
 		Name:        "invalid-sni",
-		TLS:         &TLS{Passthrough: &TLSInspectorConfig{SNIs: []string{}}},
+		TLS:         &TLS{TLSInspectorConfig: &TLSInspectorConfig{SNIs: []string{}}},
 		Destination: &happyRouteDestination,
 	}
 
diff --git a/internal/ir/zz_generated.deepcopy.go b/internal/ir/zz_generated.deepcopy.go
index 584a4a588b1..bd0ce421a7a 100644
--- a/internal/ir/zz_generated.deepcopy.go
+++ b/internal/ir/zz_generated.deepcopy.go
@@ -2192,8 +2192,8 @@ func (in *TCPTimeout) DeepCopy() *TCPTimeout {
 // DeepCopyInto is an autogenerated deepcopy function, copying the receiver, writing into out. in must be non-nil.
 func (in *TLS) DeepCopyInto(out *TLS) {
 	*out = *in
-	if in.Passthrough != nil {
-		in, out := &in.Passthrough, &out.Passthrough
+	if in.TLSInspectorConfig != nil {
+		in, out := &in.TLSInspectorConfig, &out.TLSInspectorConfig
 		*out = new(TLSInspectorConfig)
 		(*in).DeepCopyInto(*out)
 	}
diff --git a/internal/xds/translator/listener.go b/internal/xds/translator/listener.go
index e7ee0e4fbfb..a86bff57fd9 100644
--- a/internal/xds/translator/listener.go
+++ b/internal/xds/translator/listener.go
@@ -388,7 +388,7 @@ func addXdsTCPFilterChain(xdsListener *listenerv3.Listener, irRoute *ir.TCPRoute
 		return errors.New("tcp listener is nil")
 	}
 
-	isTLSPassthrough := irRoute.TLS != nil && irRoute.TLS.Passthrough != nil
+	isTLSPassthrough := irRoute.TLS != nil && irRoute.TLS.TLSInspectorConfig != nil
 	isTLSTerminate := irRoute.TLS != nil && irRoute.TLS.Terminate != nil
 	statPrefix := "tcp"
 	if isTLSPassthrough {
@@ -430,12 +430,19 @@ func addXdsTCPFilterChain(xdsListener *listenerv3.Listener, irRoute *ir.TCPRoute
 	}
 
 	if isTLSPassthrough {
-		if err := addServerNamesMatch(xdsListener, filterChain, irRoute.TLS.Passthrough.SNIs); err != nil {
+		if err := addServerNamesMatch(xdsListener, filterChain, irRoute.TLS.TLSInspectorConfig.SNIs); err != nil {
 			return err
 		}
 	}
 
 	if isTLSTerminate {
+		var snis []string
+		if cfg := irRoute.TLS.TLSInspectorConfig; cfg != nil {
+			snis = cfg.SNIs
+		}
+		if err := addServerNamesMatch(xdsListener, filterChain, snis); err != nil {
+			return err
+		}
 		tSocket, err := buildXdsDownstreamTLSSocket(irRoute.TLS.Terminate)
 		if err != nil {
 			return err
diff --git a/internal/xds/translator/testdata/in/xds-ir/listener-tcp-keepalive.yaml b/internal/xds/translator/testdata/in/xds-ir/listener-tcp-keepalive.yaml
index 1e4cdcdc5dd..9bdaf244912 100644
--- a/internal/xds/translator/testdata/in/xds-ir/listener-tcp-keepalive.yaml
+++ b/internal/xds/translator/testdata/in/xds-ir/listener-tcp-keepalive.yaml
@@ -44,7 +44,7 @@ tcp:
   port: 10082
   tcpKeepalive: {}
   tls:
-    passthrough:
+    inspector:
       snis:
       - bar.com
   destination:
diff --git a/internal/xds/translator/testdata/in/xds-ir/multiple-listeners-same-port.yaml b/internal/xds/translator/testdata/in/xds-ir/multiple-listeners-same-port.yaml
index 0fd5727987d..b694ac5aab0 100644
--- a/internal/xds/translator/testdata/in/xds-ir/multiple-listeners-same-port.yaml
+++ b/internal/xds/translator/testdata/in/xds-ir/multiple-listeners-same-port.yaml
@@ -94,7 +94,7 @@ tcp:
   routes:
   - name: "fifth-route"
     tls:
-      passthrough:
+      inspector:
         snis:
         - bar.com
     destination:
@@ -109,7 +109,7 @@ tcp:
   routes:
   - name: "sixth-route"
     tls:
-      passthrough:
+      inspector:
         snis:
         - bar.net
     destination:
diff --git a/internal/xds/translator/testdata/in/xds-ir/tcp-route-complex.yaml b/internal/xds/translator/testdata/in/xds-ir/tcp-route-complex.yaml
index ddae185afcd..901c0f66f40 100644
--- a/internal/xds/translator/testdata/in/xds-ir/tcp-route-complex.yaml
+++ b/internal/xds/translator/testdata/in/xds-ir/tcp-route-complex.yaml
@@ -5,7 +5,7 @@ tcp:
   routes:
   - name: "tcp-route-complex"
     tls:
-      passthrough:
+      inspector:
         snis:
         - foo.com
         - bar.com
diff --git a/internal/xds/translator/testdata/in/xds-ir/tcp-route-tls-terminate.yaml b/internal/xds/translator/testdata/in/xds-ir/tcp-route-tls-terminate.yaml
index 35c7f7e03a1..4e5be724781 100644
--- a/internal/xds/translator/testdata/in/xds-ir/tcp-route-tls-terminate.yaml
+++ b/internal/xds/translator/testdata/in/xds-ir/tcp-route-tls-terminate.yaml
@@ -18,3 +18,24 @@ tcp:
           port: 50000
         - host: "5.6.7.8"
           port: 50001
+  - name: "tls-terminate-hostname"
+    address: "0.0.0.0"
+    port: 10080
+    tls:
+      inspector:
+        snis:
+        - "*.envoyproxy.io"
+        - "example.com"
+      terminate:
+        certificates:
+        - Name: envoy-gateway-tls-secret-1
+          PrivateKey: 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
+          ServerCertificate: 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
+    destination:
+      name: "tls-terminate-hostname-dest"
+      settings:
+      - endpoints:
+        - host: "2.3.4.5"
+          port: 50000
+        - host: "6.7.8.9"
+          port: 50001
diff --git a/internal/xds/translator/testdata/in/xds-ir/tcp-route-weighted-backend.yaml b/internal/xds/translator/testdata/in/xds-ir/tcp-route-weighted-backend.yaml
index 4b291fb1780..73081048864 100644
--- a/internal/xds/translator/testdata/in/xds-ir/tcp-route-weighted-backend.yaml
+++ b/internal/xds/translator/testdata/in/xds-ir/tcp-route-weighted-backend.yaml
@@ -5,7 +5,7 @@ tcp:
   routes:
   - name: "tcp-route-weighted-backend"
     tls:
-      passthrough:
+      inspector:
         snis:
         - foo.com
         - bar.com
diff --git a/internal/xds/translator/testdata/in/xds-ir/tls-route-passthrough.yaml b/internal/xds/translator/testdata/in/xds-ir/tls-route-passthrough.yaml
index 6227dd0feda..285927c9017 100644
--- a/internal/xds/translator/testdata/in/xds-ir/tls-route-passthrough.yaml
+++ b/internal/xds/translator/testdata/in/xds-ir/tls-route-passthrough.yaml
@@ -5,7 +5,7 @@ tcp:
   routes:
   - name: "tls-route-passthrough-foo"
     tls:
-      passthrough:
+      inspector:
         snis:
         - foo.com
     destination:
@@ -22,7 +22,7 @@ tcp:
   routes:
   - name: "tls-route-passthrough-bar"
     tls:
-      passthrough:
+      inspector:
         snis:
         - bar.com
     destination:
diff --git a/internal/xds/translator/testdata/out/xds-ir/tcp-route-tls-terminate.clusters.yaml b/internal/xds/translator/testdata/out/xds-ir/tcp-route-tls-terminate.clusters.yaml
index af4d15a65a7..a7bedbf76be 100644
--- a/internal/xds/translator/testdata/out/xds-ir/tcp-route-tls-terminate.clusters.yaml
+++ b/internal/xds/translator/testdata/out/xds-ir/tcp-route-tls-terminate.clusters.yaml
@@ -15,3 +15,20 @@
   outlierDetection: {}
   perConnectionBufferLimitBytes: 32768
   type: EDS
+- circuitBreakers:
+    thresholds:
+    - maxRetries: 1024
+  commonLbConfig:
+    localityWeightedLbConfig: {}
+  connectTimeout: 10s
+  dnsLookupFamily: V4_ONLY
+  edsClusterConfig:
+    edsConfig:
+      ads: {}
+      resourceApiVersion: V3
+    serviceName: tls-terminate-hostname-dest
+  lbPolicy: LEAST_REQUEST
+  name: tls-terminate-hostname-dest
+  outlierDetection: {}
+  perConnectionBufferLimitBytes: 32768
+  type: EDS
diff --git a/internal/xds/translator/testdata/out/xds-ir/tcp-route-tls-terminate.endpoints.yaml b/internal/xds/translator/testdata/out/xds-ir/tcp-route-tls-terminate.endpoints.yaml
index 164abc9de25..f25da05cb08 100644
--- a/internal/xds/translator/testdata/out/xds-ir/tcp-route-tls-terminate.endpoints.yaml
+++ b/internal/xds/translator/testdata/out/xds-ir/tcp-route-tls-terminate.endpoints.yaml
@@ -16,3 +16,21 @@
     loadBalancingWeight: 1
     locality:
       region: tls-terminate-dest/backend/0
+- clusterName: tls-terminate-hostname-dest
+  endpoints:
+  - lbEndpoints:
+    - endpoint:
+        address:
+          socketAddress:
+            address: 2.3.4.5
+            portValue: 50000
+      loadBalancingWeight: 1
+    - endpoint:
+        address:
+          socketAddress:
+            address: 6.7.8.9
+            portValue: 50001
+      loadBalancingWeight: 1
+    loadBalancingWeight: 1
+    locality:
+      region: tls-terminate-hostname-dest/backend/0
diff --git a/internal/xds/translator/testdata/out/xds-ir/tcp-route-tls-terminate.listeners.yaml b/internal/xds/translator/testdata/out/xds-ir/tcp-route-tls-terminate.listeners.yaml
index e504c79c007..0de56246e71 100644
--- a/internal/xds/translator/testdata/out/xds-ir/tcp-route-tls-terminate.listeners.yaml
+++ b/internal/xds/translator/testdata/out/xds-ir/tcp-route-tls-terminate.listeners.yaml
@@ -23,5 +23,32 @@
             sdsConfig:
               ads: {}
               resourceApiVersion: V3
+  - filterChainMatch:
+      serverNames:
+      - '*.envoyproxy.io'
+      - example.com
+    filters:
+    - name: envoy.filters.network.tcp_proxy
+      typedConfig:
+        '@type': type.googleapis.com/envoy.extensions.filters.network.tcp_proxy.v3.TcpProxy
+        cluster: tls-terminate-hostname-dest
+        statPrefix: terminate
+    transportSocket:
+      name: envoy.transport_sockets.tls
+      typedConfig:
+        '@type': type.googleapis.com/envoy.extensions.transport_sockets.tls.v3.DownstreamTlsContext
+        commonTlsContext:
+          alpnProtocols:
+          - h2
+          - http/1.1
+          tlsCertificateSdsSecretConfigs:
+          - name: envoy-gateway-tls-secret-1
+            sdsConfig:
+              ads: {}
+              resourceApiVersion: V3
+  listenerFilters:
+  - name: envoy.filters.listener.tls_inspector
+    typedConfig:
+      '@type': type.googleapis.com/envoy.extensions.filters.listener.tls_inspector.v3.TlsInspector
   name: tls-listener-terminate
   perConnectionBufferLimitBytes: 32768
diff --git a/internal/xds/translator/testdata/out/xds-ir/tcp-route-tls-terminate.secrets.yaml b/internal/xds/translator/testdata/out/xds-ir/tcp-route-tls-terminate.secrets.yaml
index d4d502ac098..7acb7c6b865 100644
--- a/internal/xds/translator/testdata/out/xds-ir/tcp-route-tls-terminate.secrets.yaml
+++ b/internal/xds/translator/testdata/out/xds-ir/tcp-route-tls-terminate.secrets.yaml
@@ -4,3 +4,9 @@
       inlineBytes: 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
     privateKey:
       inlineBytes: 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
+- name: envoy-gateway-tls-secret-1
+  tlsCertificate:
+    certificateChain:
+      inlineBytes: 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
+    privateKey:
+      inlineBytes: 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