diff --git a/packages/@ember/-internals/glimmer/lib/component-managers/custom.ts b/packages/@ember/-internals/glimmer/lib/component-managers/custom.ts
index 69567b7be81..d0c97ab1f22 100644
--- a/packages/@ember/-internals/glimmer/lib/component-managers/custom.ts
+++ b/packages/@ember/-internals/glimmer/lib/component-managers/custom.ts
@@ -45,14 +45,22 @@ const CAPABILITIES = {
 export interface OptionalCapabilities {
   asyncLifecycleCallbacks?: boolean;
   destructor?: boolean;
+  updateHook?: boolean;
 }
 
 export function capabilities(managerAPI: '3.4', options: OptionalCapabilities = {}): Capabilities {
   assert('Invalid component manager compatibility specified', managerAPI === '3.4');
 
+  let updateHook = true;
+
+  if (EMBER_CUSTOM_COMPONENT_ARG_PROXY) {
+    updateHook = updateHook: 'updateHook' in options ? Boolean(options.updateHook) : true;
+  }
+
   return {
     asyncLifeCycleCallbacks: Boolean(options.asyncLifecycleCallbacks),
     destructor: Boolean(options.destructor),
+    updateHook,
   };
 }
 
@@ -66,6 +74,7 @@ export interface DefinitionState<ComponentInstance> {
 export interface Capabilities {
   asyncLifeCycleCallbacks: boolean;
   destructor: boolean;
+  updateHook: boolean;
 }
 
 // TODO: export ICapturedArgumentsValue from glimmer and replace this
@@ -137,12 +146,12 @@ export interface ComponentArguments {
 export default class CustomComponentManager<ComponentInstance>
   extends AbstractComponentManager<
     CustomComponentState<ComponentInstance>,
-    DefinitionState<ComponentInstance>
+    CustomComponentDefinitionState<ComponentInstance>
   >
   implements
     WithStaticLayout<
       CustomComponentState<ComponentInstance>,
-      DefinitionState<ComponentInstance>,
+      CustomComponentDefinitionState<ComponentInstance>,
       OwnedTemplateMeta,
       RuntimeResolver
     > {
@@ -265,8 +274,12 @@ export default class CustomComponentManager<ComponentInstance>
     }
   }
 
-  getCapabilities(): ComponentCapabilities {
-    return CAPABILITIES;
+  getCapabilities({
+    delegate,
+  }: CustomComponentDefinitionState<ComponentInstance>): ComponentCapabilities {
+    return Object.assign({}, CAPABILITIES, {
+      updateHook: delegate.capabilities.updateHook,
+    });
   }
 
   getTag({ args }: CustomComponentState<ComponentInstance>): Tag {
diff --git a/packages/@ember/-internals/glimmer/tests/utils/glimmerish-component.js b/packages/@ember/-internals/glimmer/tests/utils/glimmerish-component.js
index ce3b8003524..db3e12fce70 100644
--- a/packages/@ember/-internals/glimmer/tests/utils/glimmerish-component.js
+++ b/packages/@ember/-internals/glimmer/tests/utils/glimmerish-component.js
@@ -3,7 +3,7 @@ import { setOwner } from '@ember/-internals/owner';
 
 class GlimmerishComponentManager {
   constructor(owner) {
-    this.capabilities = capabilities('3.4');
+    this.capabilities = capabilities('3.4', { updateHook: false });
     this.owner = owner;
   }
 
@@ -11,8 +11,6 @@ class GlimmerishComponentManager {
     return new Factory(this.owner, args.named);
   }
 
-  updateComponent() {}
-
   getContext(component) {
     return component;
   }