diff --git a/data-plane/dispatcher/src/main/java/dev/knative/eventing/kafka/broker/dispatcher/CloudEventMutator.java b/data-plane/dispatcher/src/main/java/dev/knative/eventing/kafka/broker/dispatcher/CloudEventMutator.java
index 438dab1820..97cf2cb469 100644
--- a/data-plane/dispatcher/src/main/java/dev/knative/eventing/kafka/broker/dispatcher/CloudEventMutator.java
+++ b/data-plane/dispatcher/src/main/java/dev/knative/eventing/kafka/broker/dispatcher/CloudEventMutator.java
@@ -19,7 +19,7 @@
 import java.util.function.Function;
 
 /**
- * A CloudEventMutator mutates a given CloudEvent.
+ * A CloudEventMutator mutates a given CloudEvent
  */
 @FunctionalInterface
 public interface CloudEventMutator extends Function<CloudEvent, CloudEvent> {}
diff --git a/data-plane/dispatcher/src/main/java/dev/knative/eventing/kafka/broker/dispatcher/impl/RecordDispatcherMutatorChain.java b/data-plane/dispatcher/src/main/java/dev/knative/eventing/kafka/broker/dispatcher/impl/RecordDispatcherMutatorChain.java
index 6313fcc0a4..a64521d410 100644
--- a/data-plane/dispatcher/src/main/java/dev/knative/eventing/kafka/broker/dispatcher/impl/RecordDispatcherMutatorChain.java
+++ b/data-plane/dispatcher/src/main/java/dev/knative/eventing/kafka/broker/dispatcher/impl/RecordDispatcherMutatorChain.java
@@ -23,7 +23,7 @@
 
 /**
  * {@link RecordDispatcherMutatorChain} chains {@link RecordDispatcher}s and applies mutations using a provided
- * {@link CloudEventMutator} before passing the {@link KafkaConsumerRecord} to the next {@link RecordDispatcher}.
+ * {@link CloudEventMutator} before passing the {@link ConsumerRecord} to the next {@link RecordDispatcher}.
  */
 public class RecordDispatcherMutatorChain implements RecordDispatcher {
 
diff --git a/data-plane/dispatcher/src/main/java/dev/knative/eventing/kafka/broker/dispatcher/impl/consumer/NullCloudEventInterceptor.java b/data-plane/dispatcher/src/main/java/dev/knative/eventing/kafka/broker/dispatcher/impl/consumer/NullCloudEventInterceptor.java
new file mode 100644
index 0000000000..12ab37e476
--- /dev/null
+++ b/data-plane/dispatcher/src/main/java/dev/knative/eventing/kafka/broker/dispatcher/impl/consumer/NullCloudEventInterceptor.java
@@ -0,0 +1,87 @@
+/*
+ * Copyright © 2018 Knative Authors (knative-dev@googlegroups.com)
+ *
+ * Licensed under the Apache License, Version 2.0 (the "License");
+ * you may not use this file except in compliance with the License.
+ * You may obtain a copy of the License at
+ *
+ *     http://www.apache.org/licenses/LICENSE-2.0
+ *
+ * Unless required by applicable law or agreed to in writing, software
+ * distributed under the License is distributed on an "AS IS" BASIS,
+ * WITHOUT WARRANTIES OR CONDITIONS OF ANY KIND, either express or implied.
+ * See the License for the specific language governing permissions and
+ * limitations under the License.
+ */
+
+package dev.knative.eventing.kafka.broker.dispatcher.impl.consumer;
+
+import io.cloudevents.CloudEvent;
+import java.util.ArrayList;
+import java.util.HashMap;
+import java.util.List;
+import java.util.Map;
+import org.apache.kafka.clients.consumer.ConsumerInterceptor;
+import org.apache.kafka.clients.consumer.ConsumerRecord;
+import org.apache.kafka.clients.consumer.ConsumerRecords;
+import org.apache.kafka.clients.consumer.OffsetAndMetadata;
+import org.apache.kafka.common.TopicPartition;
+import org.slf4j.Logger;
+import org.slf4j.LoggerFactory;
+
+public class NullCloudEventInterceptor implements ConsumerInterceptor<Object, CloudEvent> {
+
+    private static final CloudEventDeserializer cloudEventDeserializer = new CloudEventDeserializer();
+
+    private static final Logger logger = LoggerFactory.getLogger(NullCloudEventInterceptor.class);
+
+    @Override
+    public ConsumerRecords<Object, CloudEvent> onConsume(ConsumerRecords<Object, CloudEvent> records) {
+        if (records.isEmpty()) {
+            return records;
+        }
+        final Map<TopicPartition, List<ConsumerRecord<Object, CloudEvent>>> validRecords =
+                new HashMap<>(records.count());
+        for (final var record : records) {
+            final var tp = new TopicPartition(record.topic(), record.partition());
+            if (!validRecords.containsKey(tp)) {
+                validRecords.put(tp, new ArrayList<>());
+            }
+            validRecords.get(tp).add(maybeDeserializeRecord(record));
+        }
+
+        return new ConsumerRecords<>(validRecords);
+    }
+
+    @Override
+    public void onCommit(Map<TopicPartition, OffsetAndMetadata> map) {
+        // Intentionally left blank
+    }
+
+    @Override
+    public void close() {
+        // Intentionally left blank
+    }
+
+    @Override
+    public void configure(Map<String, ?> map) {
+        logger.info("NullCloudEventInterceptor configured");
+    }
+
+    private ConsumerRecord<Object, CloudEvent> maybeDeserializeRecord(ConsumerRecord<Object, CloudEvent> record) {
+        if (record.value() != null) {
+            return record;
+        }
+        // A valid CloudEvent in the CE binary protocol binding of Kafka
+        // might be composed by only Headers.
+        //
+        // KafkaConsumer doesn't call the deserializer if the value
+        // is null.
+        //
+        // That means that we get a record with a null value and some CE
+        // headers even though the record is a valid CloudEvent.
+        logger.debug("deserializing null record");
+        return KafkaConsumerRecordUtils.copyRecordAssigningValue(
+                record, cloudEventDeserializer.deserialize(record.topic(), record.headers(), null));
+    }
+}
diff --git a/data-plane/dispatcher/src/main/java/dev/knative/eventing/kafka/broker/dispatcher/main/Main.java b/data-plane/dispatcher/src/main/java/dev/knative/eventing/kafka/broker/dispatcher/main/Main.java
index 01a608b26e..3fc667d6b9 100644
--- a/data-plane/dispatcher/src/main/java/dev/knative/eventing/kafka/broker/dispatcher/main/Main.java
+++ b/data-plane/dispatcher/src/main/java/dev/knative/eventing/kafka/broker/dispatcher/main/Main.java
@@ -31,6 +31,7 @@
 import dev.knative.eventing.kafka.broker.dispatcher.impl.consumer.CloudEventDeserializer;
 import dev.knative.eventing.kafka.broker.dispatcher.impl.consumer.InvalidCloudEventInterceptor;
 import dev.knative.eventing.kafka.broker.dispatcher.impl.consumer.KeyDeserializer;
+import dev.knative.eventing.kafka.broker.dispatcher.impl.consumer.NullCloudEventInterceptor;
 import io.cloudevents.kafka.CloudEventSerializer;
 import io.cloudevents.kafka.PartitionKeyExtensionInterceptor;
 import io.opentelemetry.sdk.OpenTelemetrySdk;
@@ -81,7 +82,9 @@ public static void start(
         Properties consumerConfig = Configurations.readPropertiesSync(env.getConsumerConfigFilePath());
         consumerConfig.put(ConsumerConfig.KEY_DESERIALIZER_CLASS_CONFIG, KeyDeserializer.class.getName());
         consumerConfig.put(ConsumerConfig.VALUE_DESERIALIZER_CLASS_CONFIG, CloudEventDeserializer.class.getName());
-        consumerConfig.put(ConsumerConfig.INTERCEPTOR_CLASSES_CONFIG, InvalidCloudEventInterceptor.class.getName());
+        consumerConfig.put(
+                ConsumerConfig.INTERCEPTOR_CLASSES_CONFIG,
+                NullCloudEventInterceptor.class.getName() + "," + InvalidCloudEventInterceptor.class.getName());
 
         // Read WebClient config
         JsonObject webClientConfig = Configurations.readPropertiesAsJsonSync(env.getWebClientConfigFilePath());
diff --git a/data-plane/dispatcher/src/test/java/dev/knative/eventing/kafka/broker/dispatcher/main/InterceptorChainTest.java b/data-plane/dispatcher/src/test/java/dev/knative/eventing/kafka/broker/dispatcher/main/InterceptorChainTest.java
new file mode 100644
index 0000000000..5684174820
--- /dev/null
+++ b/data-plane/dispatcher/src/test/java/dev/knative/eventing/kafka/broker/dispatcher/main/InterceptorChainTest.java
@@ -0,0 +1,268 @@
+/*
+ * Copyright © 2018 Knative Authors (knative-dev@googlegroups.com)
+ *
+ * Licensed under the Apache License, Version 2.0 (the "License");
+ * you may not use this file except in compliance with the License.
+ * You may obtain a copy of the License at
+ *
+ *     http://www.apache.org/licenses/LICENSE-2.0
+ *
+ * Unless required by applicable law or agreed to in writing, software
+ * distributed under the License is distributed on an "AS IS" BASIS,
+ * WITHOUT WARRANTIES OR CONDITIONS OF ANY KIND, either express or implied.
+ * See the License for the specific language governing permissions and
+ * limitations under the License.
+ */
+
+package dev.knative.eventing.kafka.broker.dispatcher.main;
+
+import static org.assertj.core.api.Assertions.assertThat;
+
+import dev.knative.eventing.kafka.broker.dispatcher.impl.consumer.CloudEventDeserializer;
+import dev.knative.eventing.kafka.broker.dispatcher.impl.consumer.InvalidCloudEvent;
+import dev.knative.eventing.kafka.broker.dispatcher.impl.consumer.InvalidCloudEventInterceptor;
+import dev.knative.eventing.kafka.broker.dispatcher.impl.consumer.NullCloudEventInterceptor;
+import io.cloudevents.CloudEvent;
+import io.cloudevents.core.builder.CloudEventBuilder;
+import io.cloudevents.core.data.BytesCloudEventData;
+import java.net.URI;
+import java.nio.charset.StandardCharsets;
+import java.time.Instant;
+import java.time.OffsetDateTime;
+import java.time.ZoneId;
+import java.util.ArrayList;
+import java.util.HashMap;
+import java.util.List;
+import java.util.Map;
+import java.util.stream.Collectors;
+import java.util.stream.IntStream;
+import org.apache.kafka.clients.consumer.ConsumerRecord;
+import org.apache.kafka.clients.consumer.ConsumerRecords;
+import org.apache.kafka.common.TopicPartition;
+import org.junit.jupiter.api.Test;
+
+public class InterceptorChainTest {
+    public static class InterceptorChain {
+        InvalidCloudEventInterceptor invalidCloudEventInterceptor;
+        NullCloudEventInterceptor nullCloudEventInterceptor;
+
+        Map<String, String> configs;
+
+        public InterceptorChain() {
+            this.invalidCloudEventInterceptor = new InvalidCloudEventInterceptor();
+            this.nullCloudEventInterceptor = new NullCloudEventInterceptor();
+
+            this.configs = new HashMap<>();
+            withKindPlural(configs);
+            withSourceName(configs);
+            withSourceNamespace(configs);
+            withEnabled(configs);
+
+            this.invalidCloudEventInterceptor.configure(this.configs);
+        }
+
+        public Map<String, String> getConfigs() {
+            return this.configs;
+        }
+
+        public ConsumerRecords<Object, CloudEvent> onConsume(final ConsumerRecords<Object, CloudEvent> records) {
+            return this.invalidCloudEventInterceptor.onConsume(this.nullCloudEventInterceptor.onConsume(records));
+        }
+
+        private static void withKindPlural(final Map<String, String> configs) {
+            with(configs, InvalidCloudEventInterceptor.KIND_PLURAL_CONFIG, "kafkasources");
+        }
+
+        private static void withSourceName(final Map<String, String> configs) {
+            with(configs, InvalidCloudEventInterceptor.SOURCE_NAME_CONFIG, "ks");
+        }
+
+        private static void withSourceNamespace(final Map<String, String> configs) {
+            with(configs, InvalidCloudEventInterceptor.SOURCE_NAMESPACE_CONFIG, "knative-ns");
+        }
+
+        private static void withEnabled(final Map<String, String> configs) {
+            with(configs, CloudEventDeserializer.INVALID_CE_WRAPPER_ENABLED, "true");
+        }
+
+        private static <T> void with(final Map<String, T> configs, final String key, final T p) {
+            configs.put(key, p);
+        }
+    }
+
+    @Test
+    public void shouldTransformEventsToValidEventsHandlingNullValues() {
+        var interceptor = new InterceptorChain();
+
+        var input = mockInvalidRecords();
+
+        var configs = interceptor.getConfigs();
+
+        var got = interceptor.onConsume(input);
+
+        for (final var r : input) {
+            var tp = new TopicPartition(r.topic(), r.partition());
+            var inputRecords = input.records(tp);
+            var expected = new ArrayList<ConsumerRecord<Object, CloudEvent>>();
+            for (var i : inputRecords) {
+                var value = CloudEventBuilder.v1()
+                        .withId(String.format("partition:%d/offset:%d", i.partition(), i.offset()))
+                        .withTime(OffsetDateTime.ofInstant(Instant.ofEpochMilli(i.timestamp()), ZoneId.of("UTC")))
+                        .withSource(URI.create(String.format(
+                                "/apis/v1/namespaces/%s/%s/%s#%s",
+                                configs.get(InvalidCloudEventInterceptor.SOURCE_NAMESPACE_CONFIG),
+                                configs.get(InvalidCloudEventInterceptor.KIND_PLURAL_CONFIG),
+                                configs.get(InvalidCloudEventInterceptor.SOURCE_NAME_CONFIG),
+                                i.topic())))
+                        .withSubject(String.format("partition:%d#%d", i.partition(), i.offset()))
+                        .withType("dev.knative.kafka.event");
+
+                if (i.value() != null) {
+                    value.withData(BytesCloudEventData.wrap(new byte[] {1}));
+                }
+
+                i.headers()
+                        .forEach(h -> value.withExtension(
+                                "kafkaheader" + h.key(), new String(h.value(), StandardCharsets.UTF_8)));
+
+                setKeys(value, i);
+
+                expected.add(new ConsumerRecord<>(
+                        i.topic(),
+                        i.partition(),
+                        i.offset(),
+                        i.timestamp(),
+                        i.timestampType(),
+                        i.serializedKeySize(),
+                        i.serializedValueSize(),
+                        i.key(),
+                        value.build(),
+                        i.headers(),
+                        i.leaderEpoch()));
+            }
+
+            var pairs = zip(expected, got.records(tp));
+            for (var p : pairs) {
+                assertConsumerRecordEquals(p.getKey(), p.getValue());
+            }
+        }
+    }
+
+    @Test
+    public void shouldTransformNullEventsToValidEvents() {
+        var interceptor = new InterceptorChain();
+
+        var input = mockValidRecords();
+
+        var configs = interceptor.getConfigs();
+
+        var got = interceptor.onConsume(input);
+
+        for (final var r : input) {
+            var tp = new TopicPartition(r.topic(), r.partition());
+            var inputRecords = input.records(tp);
+            var expected = new ArrayList<ConsumerRecord<Object, CloudEvent>>();
+            for (var i : inputRecords) {
+                var value = i.value();
+
+                if (value == null) {
+                    var builder = CloudEventBuilder.v1()
+                            .withId(String.format("partition:%d/offset:%d", i.partition(), i.offset()))
+                            .withTime(OffsetDateTime.ofInstant(Instant.ofEpochMilli(i.timestamp()), ZoneId.of("UTC")))
+                            .withSource(URI.create(String.format(
+                                    "/apis/v1/namespaces/%s/%s/%s#%s",
+                                    configs.get(InvalidCloudEventInterceptor.SOURCE_NAMESPACE_CONFIG),
+                                    configs.get(InvalidCloudEventInterceptor.KIND_PLURAL_CONFIG),
+                                    configs.get(InvalidCloudEventInterceptor.SOURCE_NAME_CONFIG),
+                                    i.topic())))
+                            .withSubject(String.format("partition:%d#%d", i.partition(), i.offset()))
+                            .withType("dev.knative.kafka.event");
+
+                    setKeys(builder, i);
+
+                    value = builder.build();
+                }
+
+                expected.add(new ConsumerRecord<>(
+                        i.topic(),
+                        i.partition(),
+                        i.offset(),
+                        i.timestamp(),
+                        i.timestampType(),
+                        i.serializedKeySize(),
+                        i.serializedValueSize(),
+                        i.key(),
+                        value,
+                        i.headers(),
+                        i.leaderEpoch()));
+            }
+
+            var pairs = zip(expected, got.records(tp));
+            for (var p : pairs) {
+                assertConsumerRecordEquals(p.getKey(), p.getValue());
+            }
+        }
+    }
+
+    private void assertConsumerRecordEquals(
+            final ConsumerRecord<Object, CloudEvent> actual, final ConsumerRecord<Object, CloudEvent> expected) {
+        assertThat(actual.topic()).isEqualTo(expected.topic());
+        assertThat(actual.partition()).isEqualTo(expected.partition());
+        assertThat(actual.offset()).isEqualTo(expected.offset());
+        assertThat(actual.key()).isEqualTo(expected.key());
+        assertThat(actual.value()).isEqualTo(expected.value());
+        assertThat(actual.serializedKeySize()).isEqualTo(expected.serializedKeySize());
+        assertThat(actual.timestamp()).isEqualTo(expected.timestamp());
+        assertThat(actual.timestampType()).isEqualTo(expected.timestampType());
+        assertThat(actual.headers()).isEqualTo(expected.headers());
+    }
+
+    private void setKeys(io.cloudevents.core.v1.CloudEventBuilder value, ConsumerRecord<Object, CloudEvent> i) {
+        if (i.key() instanceof Number) {
+            value.withExtension("partitionkey", (Number) i.key());
+            value.withExtension("key", (Number) i.key());
+        } else if (i.key() instanceof String) {
+            value.withExtension("partitionkey", i.key().toString());
+            value.withExtension("key", i.key().toString());
+        } else if (i.key() instanceof byte[]) {
+            value.withExtension("partitionkey", (byte[]) i.key());
+            value.withExtension("key", (byte[]) i.key());
+        } else if (i.key() != null) {
+            throw new IllegalArgumentException("unknown type for key: " + i.key());
+        }
+    }
+
+    public static <A, B> List<Map.Entry<A, B>> zip(List<A> as, List<B> bs) {
+        if (as.size() != bs.size()) {
+            throw new IllegalArgumentException("List must have the same length");
+        }
+        return IntStream.range(0, as.size())
+                .mapToObj(i -> Map.entry(as.get(i), bs.get(i)))
+                .collect(Collectors.toList());
+    }
+
+    private static ConsumerRecords<Object, CloudEvent> mockInvalidRecords() {
+        return new ConsumerRecords<>(Map.of(
+                new TopicPartition("t1", 0),
+                List.of(
+                        new ConsumerRecord<>("t1", 0, 0, "a", new InvalidCloudEvent(new byte[] {1})),
+                        new ConsumerRecord<>("t1", 0, 1, "a", null))));
+    }
+
+    private static ConsumerRecords<Object, CloudEvent> mockValidRecords() {
+        return new ConsumerRecords<>(Map.of(
+                new TopicPartition("t1", 0),
+                List.of(
+                        new ConsumerRecord<>(
+                                "t1",
+                                0,
+                                0,
+                                "a",
+                                CloudEventBuilder.v1()
+                                        .withId("1")
+                                        .withType("example.event.type")
+                                        .withSource(URI.create("localhost"))
+                                        .build()),
+                        new ConsumerRecord<>("t1", 0, 1, "a", null))));
+    }
+}
diff --git a/test/e2e_new/kafka_source_test.go b/test/e2e_new/kafka_source_test.go
index ca1b27b808..0cb82cfa32 100644
--- a/test/e2e_new/kafka_source_test.go
+++ b/test/e2e_new/kafka_source_test.go
@@ -116,6 +116,21 @@ func TestKafkaSourceBinaryEvent(t *testing.T) {
 	env.Test(ctx, t, features.KafkaSourceBinaryEvent())
 }
 
+func TestKafkaSourceBinaryEventWithExtensions(t *testing.T) {
+	t.Parallel()
+
+	ctx, env := global.Environment(
+		knative.WithKnativeNamespace(system.Namespace()),
+		knative.WithLoggingConfig,
+		knative.WithTracingConfig,
+		k8s.WithEventListener,
+		environment.WithPollTimings(PollInterval, PollTimeout),
+		environment.Managed(t),
+	)
+
+	env.Test(ctx, t, features.KafkaSourceBinaryEventWithExtensions())
+}
+
 func TestKafkaSourceStructuredEvent(t *testing.T) {
 	t.Parallel()
 
diff --git a/test/rekt/features/kafka_source.go b/test/rekt/features/kafka_source.go
index a7397ee7d0..c3fc8954ec 100644
--- a/test/rekt/features/kafka_source.go
+++ b/test/rekt/features/kafka_source.go
@@ -403,6 +403,41 @@ func KafkaSourceBinaryEvent() *feature.Feature {
 	)
 }
 
+func KafkaSourceBinaryEventWithExtensions() *feature.Feature {
+	senderOptions := []eventshub.EventsHubOption{
+		eventshub.InputHeader("ce-specversion", cloudevents.VersionV1),
+		eventshub.InputHeader("ce-type", "com.github.pull.create"),
+		eventshub.InputHeader("ce-source", "github.com/cloudevents/spec/pull"),
+		eventshub.InputHeader("ce-subject", "123"),
+		eventshub.InputHeader("ce-id", "A234-1234-1234"),
+		eventshub.InputHeader("content-type", "application/json"),
+	}
+	matcher := AllOf(
+		HasSpecVersion(cloudevents.VersionV1),
+		HasType("com.github.pull.create"),
+		HasSource("github.com/cloudevents/spec/pull"),
+		HasSubject("123"),
+		HasId("A234-1234-1234"),
+		HasDataContentType("application/json"),
+		HasExtension("comexampleextension1", "value"),
+		HasExtension("comexampleothervalue", "5"),
+	)
+
+	return kafkaSourceFeature("KafkaSourceBinaryEvent",
+		kafkaSourceConfig{
+			authMech: PlainMech,
+			opts: []manifest.CfgFn{
+				kafkasource.WithExtensions(map[string]string{
+					"comexampleextension1": "value",
+					"comexampleothervalue": "5",
+				})},
+		},
+		kafkaSinkConfig{},
+		senderOptions,
+		matcher,
+	)
+}
+
 func KafkaSourceStructuredEvent() *feature.Feature {
 	eventTime, _ := cetypes.ParseTime("2018-04-05T17:31:00Z")
 	senderOptions := []eventshub.EventsHubOption{