diff --git a/pkg/controller/cloud/node_controller.go b/pkg/controller/cloud/node_controller.go
index 0867ee8bbbc..cf38936f366 100644
--- a/pkg/controller/cloud/node_controller.go
+++ b/pkg/controller/cloud/node_controller.go
@@ -445,6 +445,9 @@ func ensureNodeExistsByProviderID(instances cloudprovider.Instances, node *v1.No
 		var err error
 		providerID, err = instances.InstanceID(context.TODO(), types.NodeName(node.Name))
 		if err != nil {
+			if err == cloudprovider.InstanceNotFound {
+				return false, nil
+			}
 			return false, err
 		}