diff --git a/packages/cli/src/config/extension-manager.ts b/packages/cli/src/config/extension-manager.ts
index 0c142cf1b2..009fe3ed73 100644
--- a/packages/cli/src/config/extension-manager.ts
+++ b/packages/cli/src/config/extension-manager.ts
@@ -514,10 +514,13 @@ export class ExtensionManager extends ExtensionLoader {
         )
         .filter((contextFilePath) => fs.existsSync(contextFilePath));
 
-      const hooks = await this.loadExtensionHooks(effectiveExtensionPath, {
-        extensionPath: effectiveExtensionPath,
-        workspacePath: this.workspaceDir,
-      });
+      let hooks: { [K in HookEventName]?: HookDefinition[] } | undefined;
+      if (this.settings.tools?.enableHooks) {
+        hooks = await this.loadExtensionHooks(effectiveExtensionPath, {
+          extensionPath: effectiveExtensionPath,
+          workspacePath: this.workspaceDir,
+        });
+      }
 
       const extension = {
         name: config.name,
diff --git a/packages/cli/src/config/extension.test.ts b/packages/cli/src/config/extension.test.ts
index 32ce455d31..ffef6f794f 100644
--- a/packages/cli/src/config/extension.test.ts
+++ b/packages/cli/src/config/extension.test.ts
@@ -749,6 +749,17 @@ describe('extension tests', () => {
           JSON.stringify(hooksConfig),
         );
 
+        const settings = loadSettings(tempWorkspaceDir).merged;
+        if (!settings.tools) settings.tools = {};
+        settings.tools.enableHooks = true;
+
+        extensionManager = new ExtensionManager({
+          workspaceDir: tempWorkspaceDir,
+          requestConsent: mockRequestConsent,
+          requestSetting: mockPromptForSettings,
+          settings,
+        });
+
         const extensions = await extensionManager.loadExtensions();
         expect(extensions).toHaveLength(1);
         const extension = extensions[0];
@@ -760,6 +771,36 @@ describe('extension tests', () => {
         );
       });
 
+      it('should not load hooks if enableHooks is false', async () => {
+        const extDir = createExtension({
+          extensionsDir: userExtensionsDir,
+          name: 'hook-extension-disabled',
+          version: '1.0.0',
+        });
+
+        const hooksDir = path.join(extDir, 'hooks');
+        fs.mkdirSync(hooksDir);
+        fs.writeFileSync(
+          path.join(hooksDir, 'hooks.json'),
+          JSON.stringify({ hooks: { BeforeTool: [] } }),
+        );
+
+        const settings = loadSettings(tempWorkspaceDir).merged;
+        if (!settings.tools) settings.tools = {};
+        settings.tools.enableHooks = false;
+
+        extensionManager = new ExtensionManager({
+          workspaceDir: tempWorkspaceDir,
+          requestConsent: mockRequestConsent,
+          requestSetting: mockPromptForSettings,
+          settings,
+        });
+
+        const extensions = await extensionManager.loadExtensions();
+        expect(extensions).toHaveLength(1);
+        expect(extensions[0].hooks).toBeUndefined();
+      });
+
       it('should warn about hooks during installation', async () => {
         const requestConsentSpy = vi.fn().mockResolvedValue(true);
         extensionManager.setRequestConsent(requestConsentSpy);
diff --git a/packages/cli/src/config/extensions/github.test.ts b/packages/cli/src/config/extensions/github.test.ts
index 4709b8150c..dccf13e298 100644
--- a/packages/cli/src/config/extensions/github.test.ts
+++ b/packages/cli/src/config/extensions/github.test.ts
@@ -43,6 +43,7 @@ vi.mock('@google/gemini-cli-core', async (importOriginal) => {
     debugLogger: {
       error: vi.fn(),
       log: vi.fn(),
+      warn: vi.fn(),
     },
   };
 });
@@ -263,6 +264,25 @@ describe('github.ts', () => {
         ExtensionUpdateState.UP_TO_DATE,
       );
     });
+
+    it('should return NOT_UPDATABLE if local extension config cannot be loaded', async () => {
+      vi.mocked(mockExtensionManager.loadExtensionConfig).mockImplementation(
+        () => {
+          throw new Error('Config not found');
+        },
+      );
+
+      const ext = {
+        name: 'local-ext',
+        version: '1.0.0',
+        path: '/path/to/installed/ext',
+        installMetadata: { type: 'local', source: '/path/to/source/ext' },
+      } as unknown as GeminiCLIExtension;
+
+      expect(await checkForExtensionUpdate(ext, mockExtensionManager)).toBe(
+        ExtensionUpdateState.NOT_UPDATABLE,
+      );
+    });
   });
 
   describe('downloadFromGitHubRelease', () => {
diff --git a/packages/cli/src/config/extensions/github.ts b/packages/cli/src/config/extensions/github.ts
index 37a974bf8a..335ce542aa 100644
--- a/packages/cli/src/config/extensions/github.ts
+++ b/packages/cli/src/config/extensions/github.ts
@@ -19,6 +19,7 @@ import * as path from 'node:path';
 import * as tar from 'tar';
 import extract from 'extract-zip';
 import { fetchJson, getGitHubToken } from './github_fetch.js';
+import type { ExtensionConfig } from '../extension.js';
 import type { ExtensionManager } from '../extension-manager.js';
 import { EXTENSIONS_CONFIG_FILENAME } from './variables.js';
 
@@ -172,14 +173,23 @@ export async function checkForExtensionUpdate(
 ): Promise<ExtensionUpdateState> {
   const installMetadata = extension.installMetadata;
   if (installMetadata?.type === 'local') {
-    const latestConfig = extensionManager.loadExtensionConfig(
-      installMetadata.source,
-    );
+    let latestConfig: ExtensionConfig | undefined;
+    try {
+      latestConfig = extensionManager.loadExtensionConfig(
+        installMetadata.source,
+      );
+    } catch (e) {
+      debugLogger.warn(
+        `Failed to check for update for local extension "${extension.name}". Could not load extension from source path: ${installMetadata.source}. Error: ${getErrorMessage(e)}`,
+      );
+      return ExtensionUpdateState.NOT_UPDATABLE;
+    }
+
     if (!latestConfig) {
-      debugLogger.error(
+      debugLogger.warn(
         `Failed to check for update for local extension "${extension.name}". Could not load extension from source path: ${installMetadata.source}`,
       );
-      return ExtensionUpdateState.ERROR;
+      return ExtensionUpdateState.NOT_UPDATABLE;
     }
     if (latestConfig.version !== extension.version) {
       return ExtensionUpdateState.UPDATE_AVAILABLE;