diff --git a/src/lightning/pytorch/CHANGELOG.md b/src/lightning/pytorch/CHANGELOG.md
index b3248b265eb3a..240c942c6644b 100644
--- a/src/lightning/pytorch/CHANGELOG.md
+++ b/src/lightning/pytorch/CHANGELOG.md
@@ -83,6 +83,9 @@ The format is based on [Keep a Changelog](http://keepachangelog.com/en/1.0.0/).
 - Fixed an issue that caused `num_nodes` not to be set correctly for `FSDPStrategy` ([#17438](https://github.com/Lightning-AI/lightning/pull/17438))
 
 
+- Fixed signature inspection of decorated hooks ([#17507](https://github.com/Lightning-AI/lightning/pull/17507))
+
+
 ## [2.0.1.post0] - 2023-04-11
 
 ### Fixed
diff --git a/src/lightning/pytorch/utilities/signature_utils.py b/src/lightning/pytorch/utilities/signature_utils.py
index bed5e2f18a31b..0f41c5948fb46 100644
--- a/src/lightning/pytorch/utilities/signature_utils.py
+++ b/src/lightning/pytorch/utilities/signature_utils.py
@@ -25,6 +25,9 @@ def is_param_in_hook_signature(
         explicit: whether the parameter has to be explicitly declared
         min_args: whether the `signature` has at least `min_args` parameters
     """
+    if hasattr(hook_fx, "__wrapped__"):
+        # in case the hook has a decorator
+        hook_fx = hook_fx.__wrapped__
     parameters = inspect.getfullargspec(hook_fx)
     args = parameters.args[1:]  # ignore `self`
     return (
diff --git a/tests/tests_pytorch/utilities/test_signature_utils.py b/tests/tests_pytorch/utilities/test_signature_utils.py
new file mode 100644
index 0000000000000..7ad1c5855b50c
--- /dev/null
+++ b/tests/tests_pytorch/utilities/test_signature_utils.py
@@ -0,0 +1,36 @@
+import torch
+
+from lightning.pytorch.utilities.signature_utils import is_param_in_hook_signature
+
+
+def test_param_in_hook_signature():
+    class LightningModule:
+        def validation_step(self, dataloader_iter, batch_idx):
+            ...
+
+    model = LightningModule()
+    assert is_param_in_hook_signature(model.validation_step, "dataloader_iter", explicit=True)
+
+    class LightningModule:
+        @torch.no_grad()
+        def validation_step(self, dataloader_iter, batch_idx):
+            ...
+
+    model = LightningModule()
+    assert is_param_in_hook_signature(model.validation_step, "dataloader_iter", explicit=True)
+
+    class LightningModule:
+        def validation_step(self, *args):
+            ...
+
+    model = LightningModule()
+    assert not is_param_in_hook_signature(model.validation_step, "dataloader_iter", explicit=True)
+    assert is_param_in_hook_signature(model.validation_step, "dataloader_iter", explicit=False)
+
+    class LightningModule:
+        def validation_step(self, a, b):
+            ...
+
+    model = LightningModule()
+    assert not is_param_in_hook_signature(model.validation_step, "dataloader_iter", min_args=3)
+    assert is_param_in_hook_signature(model.validation_step, "dataloader_iter", min_args=2)