diff --git a/controllers/argocd/route.go b/controllers/argocd/route.go
index d4c75da1d..e7cc53ce9 100644
--- a/controllers/argocd/route.go
+++ b/controllers/argocd/route.go
@@ -384,7 +384,7 @@ func (r *ReconcileArgoCD) reconcileApplicationSetControllerWebhookRoute(cr *argo
 
 func shortenHostname(hostname string) (string, error) {
 	if hostname == "" {
-		return "", fmt.Errorf("hostname is empty")
+		return "", nil
 	}
 
 	// Split the hostname into labels
diff --git a/controllers/argocd/route_test.go b/controllers/argocd/route_test.go
index 4e365beb0..cd3b1fedd 100644
--- a/controllers/argocd/route_test.go
+++ b/controllers/argocd/route_test.go
@@ -2,6 +2,7 @@ package argocd
 
 import (
 	"context"
+	"strings"
 	"testing"
 
 	"github.com/stretchr/testify/assert"
@@ -29,7 +30,6 @@ func TestReconcileRouteSetLabels(t *testing.T) {
 	logf.SetLogger(ZapLogger(true))
 	argoCD := makeArgoCD(func(a *argoproj.ArgoCD) {
 		a.Spec.Server.Route.Enabled = true
-		a.Spec.Server.Host = "test.hostname.com"
 		labels := make(map[string]string)
 		labels["my-key"] = "my-value"
 		a.Spec.Server.Route.Labels = labels
@@ -69,7 +69,6 @@ func TestReconcileRouteSetsInsecure(t *testing.T) {
 	logf.SetLogger(ZapLogger(true))
 	argoCD := makeArgoCD(func(a *argoproj.ArgoCD) {
 		a.Spec.Server.Route.Enabled = true
-		a.Spec.Server.Host = "test.hostname.com"
 	})
 
 	resObjs := []client.Object{argoCD}
@@ -146,7 +145,6 @@ func TestReconcileRouteUnsetsInsecure(t *testing.T) {
 	argoCD := makeArgoCD(func(a *argoproj.ArgoCD) {
 		a.Spec.Server.Route.Enabled = true
 		a.Spec.Server.Insecure = true
-		a.Spec.Server.Host = "test.hostname.com"
 	})
 
 	resObjs := []client.Object{argoCD}
@@ -220,63 +218,84 @@ func TestReconcileRouteForShorteningHostname(t *testing.T) {
 	routeAPIFound = true
 	ctx := context.Background()
 	logf.SetLogger(ZapLogger(true))
-	hostname := "myhostnameaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaa.aaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaa.aaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaa.aaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaa.aaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaa.redhat.com"
 
-	argoCD := makeArgoCD(func(a *argoproj.ArgoCD) {
-		a.Spec.Server.Route.Enabled = true
-		a.Spec.ApplicationSet = &argoproj.ArgoCDApplicationSet{
-			WebhookServer: argoproj.WebhookServerSpec{
-				Route: argoproj.ArgoCDRouteSpec{
-					Enabled: true,
-				},
-				Host: hostname,
-			},
-		}
-	})
-
-	resObjs := []client.Object{argoCD}
-	subresObjs := []client.Object{argoCD}
-	runtimeObjs := []runtime.Object{}
-	sch := makeTestReconcilerScheme(argoproj.AddToScheme, configv1.Install, routev1.Install)
-	cl := makeTestReconcilerClient(sch, resObjs, subresObjs, runtimeObjs)
-	r := makeTestReconciler(cl, sch)
-
-	assert.NoError(t, createNamespace(r, argoCD.Namespace, ""))
-
-	req := reconcile.Request{
-		NamespacedName: types.NamespacedName{
-			Name:      testArgoCDName,
-			Namespace: testNamespace,
+	tests := []struct {
+		testName string
+		expected string
+		hostname string
+	}{
+		{
+			testName: "longHostname",
+			hostname: "myhostnameaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaa.aaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaa.aaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaa.aaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaa.aaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaa.redhat.com",
+			expected: "myhostnameaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaa.aaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaa.aaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaa.aaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaa.aaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaa.redhat.com",
+		},
+		{
+			testName: "twentySixLetterHostname",
+			hostname: "myhostnametwentysixletteraaaaaaaaaaaaaaaaaaaaaa.aaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaa.aaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaa.aaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaa.aaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaa.aaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaa.redhat.com",
+			expected: "myhostnametwentysixletteraaaaaaaaaaaaaa.aaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaa.aaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaa.aaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaa.aaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaa.aaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaa.redhat.com",
 		},
 	}
 
-	// Check if it returns error when hostname is empty
-	_, err := r.Reconcile(context.TODO(), req)
-	assert.EqualError(t, err, "hostname is empty")
+	for _, v := range tests {
+		t.Run(v.testName, func(t *testing.T) {
+
+			argoCD := makeArgoCD(func(a *argoproj.ArgoCD) {
+				a.Spec.Server.Route.Enabled = true
+				a.Spec.ApplicationSet = &argoproj.ArgoCDApplicationSet{
+					WebhookServer: argoproj.WebhookServerSpec{
+						Route: argoproj.ArgoCDRouteSpec{
+							Enabled: true,
+						},
+						Host: v.hostname,
+					},
+				}
+			})
+
+			resObjs := []client.Object{argoCD}
+			subresObjs := []client.Object{argoCD}
+			runtimeObjs := []runtime.Object{}
+			sch := makeTestReconcilerScheme(argoproj.AddToScheme, configv1.Install, routev1.Install)
+			cl := makeTestReconcilerClient(sch, resObjs, subresObjs, runtimeObjs)
+			r := makeTestReconciler(cl, sch)
+
+			assert.NoError(t, createNamespace(r, argoCD.Namespace, ""))
+
+			req := reconcile.Request{
+				NamespacedName: types.NamespacedName{
+					Name:      testArgoCDName,
+					Namespace: testNamespace,
+				},
+			}
 
-	// second reconciliation after changing the hostname.
-	err = r.Client.Get(ctx, req.NamespacedName, argoCD)
-	fatalIfError(t, err, "failed to load ArgoCD %q: %s", testArgoCDName+"-server", err)
+			// Check if it returns nil when hostname is empty
+			_, err := r.Reconcile(context.TODO(), req)
+			assert.NoError(t, err)
 
-	argoCD.Spec.Server.Host = hostname
-	err = r.Client.Update(ctx, argoCD)
-	fatalIfError(t, err, "failed to update the ArgoCD: %s", err)
+			// second reconciliation after changing the hostname.
+			err = r.Client.Get(ctx, req.NamespacedName, argoCD)
+			fatalIfError(t, err, "failed to load ArgoCD %q: %s", testArgoCDName+"-server", err)
 
-	_, err = r.Reconcile(context.TODO(), req)
-	assert.NoError(t, err)
+			argoCD.Spec.Server.Host = v.hostname
+			err = r.Client.Update(ctx, argoCD)
+			fatalIfError(t, err, "failed to update the ArgoCD: %s", err)
 
-	loaded := &routev1.Route{}
-	err = r.Client.Get(ctx, types.NamespacedName{Name: testArgoCDName + "-server", Namespace: testNamespace}, loaded)
-	fatalIfError(t, err, "failed to load route %q: %s", testArgoCDName+"-server", err)
+			_, err = r.Reconcile(context.TODO(), req)
+			assert.NoError(t, err)
 
-	wantRoute := &routev1.RouteSpec{
-		Host: "myhostnameaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaa.aaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaa.aaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaa.aaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaa.aaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaa.redhat.com",
-	}
+			loaded := &routev1.Route{}
+			err = r.Client.Get(ctx, types.NamespacedName{Name: testArgoCDName + "-server", Namespace: testNamespace}, loaded)
+			fatalIfError(t, err, "failed to load route %q: %s", testArgoCDName+"-server", err)
 
-	if diff := cmp.Diff(wantRoute.Host, loaded.Spec.Host); diff != "" {
-		t.Fatalf("failed to reconcile route:\n%s", diff)
-	}
+			if diff := cmp.Diff(v.expected, loaded.Spec.Host); diff != "" {
+				t.Fatalf("failed to reconcile route:\n%s", diff)
+			}
 
+			// Check if first label is greater than 20
+			labels := strings.Split(loaded.Spec.Host, ".")
+			assert.True(t, len(labels[0]) > 20)
+
+		})
+	}
 }
 
 func makeReconciler(t *testing.T, acd *argoproj.ArgoCD, objs ...runtime.Object) *ReconcileArgoCD {