diff --git a/pkg/registry/core/service/ipallocator/controller/repairip.go b/pkg/registry/core/service/ipallocator/controller/repairip.go
index bb7c2d877ec..feb7fce3076 100644
--- a/pkg/registry/core/service/ipallocator/controller/repairip.go
+++ b/pkg/registry/core/service/ipallocator/controller/repairip.go
@@ -530,6 +530,23 @@ func (r *RepairIPAddress) syncIPAddress(key string) error {
 			return nil
 		}
 	}
+
+	// Service storage implements transactions. It creates an IPAddress object first and then creates
+	// the Service object, and if the Service object already exists the complete transaction is
+	// reverted. There can be race conditions when the repair loop picks up the new IPAddress object
+	// for reconciliation before the transaction is reverted. This leads to spurious
+	// IPAddressWrongReference warnings, to suppress these warnings we delay the processing of the new
+	// IPAddress object by 5 seconds. The service allocation creates the IPAddress object before creating
+	// the Service object, we easily identify this scenario when the IPAddress object creation timestamp
+	// is after the Service creation timestamp. We do this only when the IPAddress object is created
+	// recently in order to avoid indefinitely requeue/delay in IPAddress cleanup if for some reason
+	// the service transaction revert fails.
+	if ipAddress.CreationTimestamp.After(svc.CreationTimestamp.Time) &&
+		r.clock.Now().Sub(ipAddress.CreationTimestamp.Time) < 5*time.Second {
+		// requeue after the grace period
+		r.ipQueue.AddAfter(key, 5*time.Second)
+		return nil
+	}
 	runtime.HandleError(fmt.Errorf("the IPAddress: %s for Service %s/%s has a wrong reference %#v; cleaning up", ipAddress.Name, svc.Name, svc.Namespace, ipAddress.Spec.ParentRef))
 	r.recorder.Eventf(ipAddress, nil, v1.EventTypeWarning, "IPAddressWrongReference", "IPAddressAllocation", "IPAddress: %s for Service %s/%s has a wrong reference; cleaning up", ipAddress.Name, svc.Namespace, svc.Name)
 	err = r.client.NetworkingV1().IPAddresses().Delete(context.Background(), ipAddress.Name, metav1.DeleteOptions{})
diff --git a/pkg/registry/core/service/ipallocator/controller/repairip_test.go b/pkg/registry/core/service/ipallocator/controller/repairip_test.go
index f716b6035c1..1e44687f025 100644
--- a/pkg/registry/core/service/ipallocator/controller/repairip_test.go
+++ b/pkg/registry/core/service/ipallocator/controller/repairip_test.go
@@ -372,6 +372,40 @@ func TestRepairServiceIP(t *testing.T) {
 			actions:  [][]string{{"delete", "ipaddresses"}},
 			events:   []string{"Warning IPAddressWrongReference IPAddress: 10.0.1.2 for Service bar/test-svc has a wrong reference; cleaning up"},
 		},
+		{
+			name: "Two IPAddresses referencing the same service when service create is called again and ip address is in grace period",
+			svcs: []*v1.Service{
+				newServiceWithCreationTimestamp("test-svc", []string{"10.0.1.1"}, testTimeNow.Add(1*time.Second)),
+			},
+			ipAddresses: []*networkingv1.IPAddress{
+				newIPAddressWithCreationTimestamp("10.0.1.1", newService("test-svc", []string{"10.0.1.1"}), testTimeNow),
+				// ensure the second IPAddress object has a creation timestamp greater than service creation timestamp
+				newIPAddressWithCreationTimestamp("10.0.1.2", newService("test-svc", []string{"10.0.1.1"}), testTimeNow.Add(2*time.Second)),
+			},
+			cidrs: []*networkingv1.ServiceCIDR{
+				newServiceCIDR("kubernetes", serviceCIDRv4, serviceCIDRv6),
+			},
+			// update the test time, ensuring 5 seconds have not passed after creation of the second IPAddress Object
+			testTime: testTimeNow.Add(3 * time.Second),
+		},
+		{
+			name: "Two IPAddresses referencing the same service when service create is called again and ip address is not in grace period",
+			svcs: []*v1.Service{
+				newServiceWithCreationTimestamp("test-svc", []string{"10.0.1.1"}, testTimeNow.Add(1*time.Second)),
+			},
+			ipAddresses: []*networkingv1.IPAddress{
+				newIPAddressWithCreationTimestamp("10.0.1.1", newService("test-svc", []string{"10.0.1.1"}), testTimeNow),
+				// ensure the second IPAddress object has a creation timestamp greater than service creation timestamp
+				newIPAddressWithCreationTimestamp("10.0.1.2", newService("test-svc", []string{"10.0.1.1"}), testTimeNow.Add(2*time.Second)),
+			},
+			cidrs: []*networkingv1.ServiceCIDR{
+				newServiceCIDR("kubernetes", serviceCIDRv4, serviceCIDRv6),
+			},
+			// update the test time, ensuring 5 seconds have passed after creation of the second IPAddress Object
+			testTime: testTimeNow.Add(10 * time.Second),
+			actions:  [][]string{{"delete", "ipaddresses"}},
+			events:   []string{"Warning IPAddressWrongReference IPAddress: 10.0.1.2 for Service bar/test-svc has a wrong reference; cleaning up"},
+		},
 		{
 			name: "Two Services with same ClusterIP",
 			svcs: []*v1.Service{