diff --git a/apis/v1alpha1/ack-generate-metadata.yaml b/apis/v1alpha1/ack-generate-metadata.yaml
index c35ca1ed..d1c1fd44 100755
--- a/apis/v1alpha1/ack-generate-metadata.yaml
+++ b/apis/v1alpha1/ack-generate-metadata.yaml
@@ -1,13 +1,13 @@
 ack_generate_info:
-  build_date: "2022-03-29T17:33:11Z"
-  build_hash: 6f659f796434e8fd6443c0b3a5b495daae910035
-  go_version: go1.17.8
-  version: v0.18.0
+  build_date: "2022-03-30T20:36:15Z"
+  build_hash: c6b852a8017aa73cfc5a882b1ba60c88d820e967
+  go_version: go1.17
+  version: v0.18.1
 api_directory_checksum: e5bf2003f6be051fdeda5059df47eb7fff0a9c86
 api_version: v1alpha1
 aws_sdk_go_version: v1.42.0
 generator_config_info:
-  file_checksum: c041dcc9493bdd9baed2e0599d8bc4401b5f2d25
+  file_checksum: e017fb539a06710c6713157e5f61e2a0c20e70ba
   original_file_name: generator.yaml
 last_modification:
   reason: API generation
diff --git a/apis/v1alpha1/generator.yaml b/apis/v1alpha1/generator.yaml
index 0732d0fc..82fdc660 100644
--- a/apis/v1alpha1/generator.yaml
+++ b/apis/v1alpha1/generator.yaml
@@ -281,6 +281,8 @@ resources:
         template_path: hooks/vpc/sdk_read_many_post_set_output.go.tpl
   VpcEndpoint:
     fields:
+      PolicyDocument:
+        late_initialize: {}
       VpcId:
         references:
           resource: VPC
diff --git a/generator.yaml b/generator.yaml
index 0732d0fc..82fdc660 100644
--- a/generator.yaml
+++ b/generator.yaml
@@ -281,6 +281,8 @@ resources:
         template_path: hooks/vpc/sdk_read_many_post_set_output.go.tpl
   VpcEndpoint:
     fields:
+      PolicyDocument:
+        late_initialize: {}
       VpcId:
         references:
           resource: VPC
diff --git a/pkg/resource/vpc_endpoint/manager.go b/pkg/resource/vpc_endpoint/manager.go
index 993245df..ed6d3ff1 100644
--- a/pkg/resource/vpc_endpoint/manager.go
+++ b/pkg/resource/vpc_endpoint/manager.go
@@ -45,7 +45,7 @@ var (
 // +kubebuilder:rbac:groups=ec2.services.k8s.aws,resources=vpcendpoints,verbs=get;list;watch;create;update;patch;delete
 // +kubebuilder:rbac:groups=ec2.services.k8s.aws,resources=vpcendpoints/status,verbs=get;update;patch
 
-var lateInitializeFieldNames = []string{}
+var lateInitializeFieldNames = []string{"PolicyDocument"}
 
 // resourceManager is responsible for providing a consistent way to perform
 // CRUD operations in a backend AWS service API for Book custom resources.
@@ -236,6 +236,10 @@ func (rm *resourceManager) LateInitialize(
 func (rm *resourceManager) incompleteLateInitialization(
 	res acktypes.AWSResource,
 ) bool {
+	ko := rm.concreteResource(res).ko.DeepCopy()
+	if ko.Spec.PolicyDocument == nil {
+		return true
+	}
 	return false
 }
 
@@ -245,7 +249,12 @@ func (rm *resourceManager) lateInitializeFromReadOneOutput(
 	observed acktypes.AWSResource,
 	latest acktypes.AWSResource,
 ) acktypes.AWSResource {
-	return latest
+	observedKo := rm.concreteResource(observed).ko.DeepCopy()
+	latestKo := rm.concreteResource(latest).ko.DeepCopy()
+	if observedKo.Spec.PolicyDocument != nil && latestKo.Spec.PolicyDocument == nil {
+		latestKo.Spec.PolicyDocument = observedKo.Spec.PolicyDocument
+	}
+	return &resource{latestKo}
 }
 
 // IsSynced returns true if the resource is synced.
diff --git a/test/e2e/tests/test_references.py b/test/e2e/tests/test_references.py
index 3bc0a393..b0d133aa 100644
--- a/test/e2e/tests/test_references.py
+++ b/test/e2e/tests/test_references.py
@@ -118,6 +118,7 @@ def test_references(self, ec2_client):
         assert k8s.wait_on_condition(vpc_ref, "ACK.ResourceSynced", "True", wait_periods=5)
         assert k8s.wait_on_condition(sg_ref, "ACK.ResourceSynced", "True", wait_periods=5)
         assert k8s.wait_on_condition(subnet_ref, "ACK.ResourceSynced", "True", wait_periods=5)
+        assert k8s.wait_on_condition(vpc_endpoint_ref, "ACK.ResourceSynced", "True", wait_periods=5)
 
         assert k8s.wait_on_condition(sg_ref, "ACK.ReferencesResolved", "True", wait_periods=5)
         assert k8s.wait_on_condition(subnet_ref, "ACK.ReferencesResolved", "True", wait_periods=5)