diff --git a/controllers/gateway/targetgroup_configuration_controller.go b/controllers/gateway/targetgroup_configuration_controller.go
index d83e97b3b..cc4822a76 100644
--- a/controllers/gateway/targetgroup_configuration_controller.go
+++ b/controllers/gateway/targetgroup_configuration_controller.go
@@ -26,6 +26,12 @@ import (
 	"sigs.k8s.io/controller-runtime/pkg/reconcile"
 	"sigs.k8s.io/controller-runtime/pkg/source"
 	gwv1 "sigs.k8s.io/gateway-api/apis/v1"
+	gwalpha2 "sigs.k8s.io/gateway-api/apis/v1alpha2"
+)
+
+const (
+	targetReferenceKindService = "Service"
+	targetReferenceKindGateway = "Gateway"
 )
 
 // NewTargetGroupConfigurationReconciler constructs a reconciler that responds to targetgroup configuration changes
@@ -126,6 +132,26 @@ func (r *targetgroupConfigurationReconciler) handleDelete(tgConf *elbv2gw.Target
 		return r.finalizerManager.RemoveFinalizers(context.Background(), tgConf, shared_constants.TargetGroupConfigurationFinalizer)
 	}
 
+	targetKind := targetReferenceKindService
+	if tgConf.Spec.TargetReference.Kind != nil {
+		targetKind = *tgConf.Spec.TargetReference.Kind
+	}
+
+	if targetKind == targetReferenceKindGateway {
+		inUseRoutes, err := r.isGatewayTargetTGCInUse(context.Background(), tgConf)
+		if err != nil {
+			return err
+		}
+		if inUseRoutes != "" {
+			return fmt.Errorf("targetgroup configuration [%+v] is still in use by TCPRoutes [%s]", k8s.NamespacedName(tgConf), inUseRoutes)
+		}
+		return r.finalizerManager.RemoveFinalizers(context.Background(), tgConf, shared_constants.TargetGroupConfigurationFinalizer)
+	}
+
+	if targetKind != targetReferenceKindService {
+		return fmt.Errorf("targetgroup configuration [%+v] has unsupported targetReference kind %q", k8s.NamespacedName(tgConf), targetKind)
+	}
+
 	svcReference := types.NamespacedName{
 		Namespace: tgConf.Namespace,
 		Name:      tgConf.Spec.TargetReference.Name,
@@ -184,6 +210,40 @@ func (r *targetgroupConfigurationReconciler) isDefaultTGCInUse(ctx context.Conte
 	return "", nil
 }
 
+func (r *targetgroupConfigurationReconciler) isGatewayTargetTGCInUse(ctx context.Context, tgConf *elbv2gw.TargetGroupConfiguration) (string, error) {
+	tcpRouteList := &gwalpha2.TCPRouteList{}
+	if err := r.k8sClient.List(ctx, tcpRouteList); err != nil {
+		return "", err
+	}
+
+	var inUseRoutes []string
+	for i := range tcpRouteList.Items {
+		route := &tcpRouteList.Items[i]
+		for _, rule := range route.Spec.Rules {
+			for _, beRef := range rule.BackendRefs {
+				if beRef.Kind == nil || *beRef.Kind != targetReferenceKindGateway {
+					continue
+				}
+
+				routeTargetNamespace := route.Namespace
+				if beRef.Namespace != nil {
+					routeTargetNamespace = string(*beRef.Namespace)
+				}
+
+				if routeTargetNamespace == tgConf.Namespace && string(beRef.Name) == tgConf.Spec.TargetReference.Name {
+					inUseRoutes = append(inUseRoutes, k8s.NamespacedName(route).String())
+					break
+				}
+			}
+		}
+	}
+
+	if len(inUseRoutes) > 0 {
+		return strings.Join(inUseRoutes, ", "), nil
+	}
+	return "", nil
+}
+
 func (r *targetgroupConfigurationReconciler) SetupWithManager(_ context.Context, mgr ctrl.Manager) (controller.Controller, error) {
 	return controller.New(constants.TargetGroupConfigurationController, mgr, controller.Options{
 		MaxConcurrentReconciles: r.workers,
diff --git a/controllers/gateway/targetgroup_configuration_controller_test.go b/controllers/gateway/targetgroup_configuration_controller_test.go
new file mode 100644
index 000000000..ff285af25
--- /dev/null
+++ b/controllers/gateway/targetgroup_configuration_controller_test.go
@@ -0,0 +1,118 @@
+package gateway
+
+import (
+	"context"
+	"testing"
+
+	"github.com/go-logr/logr"
+	"github.com/golang/mock/gomock"
+	"github.com/stretchr/testify/assert"
+	metav1 "k8s.io/apimachinery/pkg/apis/meta/v1"
+	elbv2gw "sigs.k8s.io/aws-load-balancer-controller/apis/gateway/v1beta1"
+	"sigs.k8s.io/aws-load-balancer-controller/pkg/k8s"
+	"sigs.k8s.io/aws-load-balancer-controller/pkg/shared_constants"
+	"sigs.k8s.io/aws-load-balancer-controller/pkg/testutils"
+	"sigs.k8s.io/controller-runtime/pkg/client"
+	gwv1 "sigs.k8s.io/gateway-api/apis/v1"
+	gwalpha2 "sigs.k8s.io/gateway-api/apis/v1alpha2"
+)
+
+func TestTargetGroupConfigurationReconciler_handleDelete_GatewayTargetStillInUse(t *testing.T) {
+	ctrl := gomock.NewController(t)
+	defer ctrl.Finish()
+
+	k8sClient := testutils.GenerateTestClient()
+	finalizerManager := k8s.NewMockFinalizerManager(ctrl)
+
+	targetKind := targetReferenceKindGateway
+	tgConf := &elbv2gw.TargetGroupConfiguration{
+		ObjectMeta: metav1.ObjectMeta{
+			Name:       "gateway-tgc",
+			Namespace:  "test-ns",
+			Finalizers: []string{shared_constants.TargetGroupConfigurationFinalizer},
+		},
+		Spec: elbv2gw.TargetGroupConfigurationSpec{
+			TargetReference: &elbv2gw.Reference{
+				Name: "chained-gateway",
+				Kind: &targetKind,
+			},
+		},
+	}
+	routeKind := gwalpha2.Kind(targetReferenceKindGateway)
+	route := &gwalpha2.TCPRoute{
+		ObjectMeta: metav1.ObjectMeta{
+			Name:      "tcp-route",
+			Namespace: "test-ns",
+		},
+		Spec: gwalpha2.TCPRouteSpec{
+			Rules: []gwalpha2.TCPRouteRule{
+				{
+					BackendRefs: []gwalpha2.BackendRef{
+						{
+							BackendObjectReference: gwalpha2.BackendObjectReference{
+								Name: "chained-gateway",
+								Kind: &routeKind,
+							},
+						},
+					},
+				},
+			},
+		},
+	}
+
+	assert.NoError(t, k8sClient.Create(context.Background(), tgConf))
+	assert.NoError(t, k8sClient.Create(context.Background(), route))
+
+	r := &targetgroupConfigurationReconciler{
+		k8sClient:        k8sClient,
+		logger:           logr.Discard(),
+		finalizerManager: finalizerManager,
+		gwRetrieveFn: func(ctx context.Context, k8sClient client.Client, gwController string) ([]*gwv1.Gateway, error) {
+			return nil, nil
+		},
+	}
+
+	err := r.handleDelete(tgConf)
+	assert.EqualError(t, err, "targetgroup configuration [test-ns/gateway-tgc] is still in use by TCPRoutes [test-ns/tcp-route]")
+}
+
+func TestTargetGroupConfigurationReconciler_handleDelete_GatewayTargetNotInUse(t *testing.T) {
+	ctrl := gomock.NewController(t)
+	defer ctrl.Finish()
+
+	k8sClient := testutils.GenerateTestClient()
+	finalizerManager := k8s.NewMockFinalizerManager(ctrl)
+
+	targetKind := targetReferenceKindGateway
+	tgConf := &elbv2gw.TargetGroupConfiguration{
+		ObjectMeta: metav1.ObjectMeta{
+			Name:       "gateway-tgc",
+			Namespace:  "test-ns",
+			Finalizers: []string{shared_constants.TargetGroupConfigurationFinalizer},
+		},
+		Spec: elbv2gw.TargetGroupConfigurationSpec{
+			TargetReference: &elbv2gw.Reference{
+				Name: "chained-gateway",
+				Kind: &targetKind,
+			},
+		},
+	}
+
+	assert.NoError(t, k8sClient.Create(context.Background(), tgConf))
+
+	finalizerManager.EXPECT().
+		RemoveFinalizers(context.Background(), tgConf, shared_constants.TargetGroupConfigurationFinalizer).
+		Return(nil)
+
+	r := &targetgroupConfigurationReconciler{
+		k8sClient:        k8sClient,
+		logger:           logr.Discard(),
+		finalizerManager: finalizerManager,
+		gwRetrieveFn: func(ctx context.Context, k8sClient client.Client, gwController string) ([]*gwv1.Gateway, error) {
+			return nil, nil
+		},
+	}
+
+	err := r.handleDelete(tgConf)
+	assert.NoError(t, err)
+}