diff --git a/cluster-autoscaler/cloudprovider/mcm/mcm_manager.go b/cluster-autoscaler/cloudprovider/mcm/mcm_manager.go
index 0d595a6831a1..8cd8024a1976 100644
--- a/cluster-autoscaler/cloudprovider/mcm/mcm_manager.go
+++ b/cluster-autoscaler/cloudprovider/mcm/mcm_manager.go
@@ -64,8 +64,6 @@ const (
 	conflictRetryInterval   = 5 * time.Second
 	// machinePriorityAnnotation is the annotation to set machine priority while deletion
 	machinePriorityAnnotation = "machinepriority.machine.sapcloud.io"
-	// labelForFailureDomain is the label for failure domain used by kubernetes.io
-	labelForFailureDomain = "failure-domain.beta.kubernetes.io/zone"
 	// kindAWSMachineClass is the kind for machine class used by In-tree AWS provider
 	kindAWSMachineClass = "AWSMachineClass"
 	// kindAzureMachineClass is the kind for machine class used by In-tree Azure provider
@@ -441,10 +439,15 @@ func (m *McmManager) GetMachineDeploymentNodeTemplate(machinedeployment *Machine
 		return nil, fmt.Errorf("Unable to fetch MachineDeployment object %s, Error: %v", machinedeployment.Name, err)
 	}
 
-	var region, zone string
-	var instance instanceType
-	machineClass := md.Spec.Template.Spec.Class
-	nodeTemplateSpec := md.Spec.Template.Spec.NodeTemplateSpec
+	var (
+		region   string
+		zone     string
+		instance instanceType
+
+		machineClass     = md.Spec.Template.Spec.Class
+		nodeTemplateSpec = md.Spec.Template.Spec.NodeTemplateSpec
+	)
+
 	switch machineClass.Kind {
 	case kindAWSMachineClass:
 		mc, err := m.machineclient.AWSMachineClasses(m.namespace).Get(context.TODO(), machineClass.Name, metav1.GetOptions{})
@@ -459,9 +462,7 @@ func (m *McmManager) GetMachineDeploymentNodeTemplate(machinedeployment *Machine
 			GPU:          awsInstance.GPU,
 		}
 		region = mc.Spec.Region
-		if mc.Labels != nil {
-			zone = mc.Labels[labelForFailureDomain]
-		}
+		zone = getZoneValueFromMCLabels(mc.Labels)
 	case kindAzureMachineClass:
 		mc, err := m.machineclient.AzureMachineClasses(m.namespace).Get(context.TODO(), machineClass.Name, metav1.GetOptions{})
 		if err != nil {
@@ -499,9 +500,7 @@ func (m *McmManager) GetMachineDeploymentNodeTemplate(machinedeployment *Machine
 				GPU:          awsInstance.GPU,
 			}
 			region = providerSpec.Region
-			if mc.Labels != nil {
-				zone = mc.Labels[labelForFailureDomain]
-			}
+			zone = getZoneValueFromMCLabels(mc.Labels)
 		case providerAzure:
 			var providerSpec *azureapis.AzureProviderSpec
 			err = json.Unmarshal(mc.ProviderSpec.Raw, &providerSpec)
@@ -548,6 +547,22 @@ func (m *McmManager) GetMachineDeploymentNodeTemplate(machinedeployment *Machine
 	return nodeTmpl, nil
 }
 
+func getZoneValueFromMCLabels(labels map[string]string) string {
+	var zone string
+
+	if labels != nil {
+		if value, exists := labels[apiv1.LabelZoneFailureDomainStable]; exists {
+			// Prefer zone value from the new label
+			zone = value
+		} else if value, exists := labels[apiv1.LabelZoneFailureDomain]; exists {
+			// Fallback to zone value from deprecated label if new lable value doesn't exist
+			zone = value
+		}
+	}
+
+	return zone
+}
+
 func (m *McmManager) buildNodeFromTemplate(name string, template *nodeTemplate) (*apiv1.Node, error) {
 	node := apiv1.Node{}
 	nodeName := fmt.Sprintf("%s-%d", name, rand.Int63())
@@ -585,12 +600,20 @@ func buildGenericLabels(template *nodeTemplate, nodeName string) map[string]stri
 	result := make(map[string]string)
 	// TODO: extract from MCM
 	result[kubeletapis.LabelArch] = cloudprovider.DefaultArch
+	result[apiv1.LabelArchStable] = cloudprovider.DefaultArch
+
 	result[kubeletapis.LabelOS] = cloudprovider.DefaultOS
+	result[apiv1.LabelOSStable] = cloudprovider.DefaultOS
 
 	result[apiv1.LabelInstanceType] = template.InstanceType.InstanceType
+	result[apiv1.LabelInstanceTypeStable] = template.InstanceType.InstanceType
 
 	result[apiv1.LabelZoneRegion] = template.Region
+	result[apiv1.LabelZoneRegionStable] = template.Region
+
 	result[apiv1.LabelZoneFailureDomain] = template.Zone
+	result[apiv1.LabelZoneFailureDomainStable] = template.Zone
+
 	result[apiv1.LabelHostname] = nodeName
 	return result
 }
diff --git a/cluster-autoscaler/cloudprovider/mcm/mcm_manager_test.go b/cluster-autoscaler/cloudprovider/mcm/mcm_manager_test.go
index 90347e6a137c..814a40b8090c 100644
--- a/cluster-autoscaler/cloudprovider/mcm/mcm_manager_test.go
+++ b/cluster-autoscaler/cloudprovider/mcm/mcm_manager_test.go
@@ -26,17 +26,73 @@ import (
 )
 
 func TestBuildGenericLabels(t *testing.T) {
+	var (
+		instanceTypeC4Large = "c4.large"
+		regionUSEast1       = "us-east-1"
+		zoneUSEast1a        = "us-east-1a"
+		testHostName        = "test-hostname"
+	)
+
 	labels := buildGenericLabels(&nodeTemplate{
 		InstanceType: &instanceType{
-			InstanceType: "c4.large",
+			InstanceType: instanceTypeC4Large,
 			VCPU:         2,
 			MemoryMb:     3840,
 		},
-		Region: "us-east-1",
-	}, "sillyname")
-	assert.Equal(t, "us-east-1", labels[apiv1.LabelZoneRegion])
-	assert.Equal(t, "sillyname", labels[apiv1.LabelHostname])
-	assert.Equal(t, "c4.large", labels[apiv1.LabelInstanceType])
+		Region: regionUSEast1,
+		Zone:   zoneUSEast1a,
+	}, testHostName)
+
 	assert.Equal(t, cloudprovider.DefaultArch, labels[kubeletapis.LabelArch])
+	assert.Equal(t, cloudprovider.DefaultArch, labels[apiv1.LabelArchStable])
+
 	assert.Equal(t, cloudprovider.DefaultOS, labels[kubeletapis.LabelOS])
+	assert.Equal(t, cloudprovider.DefaultOS, labels[apiv1.LabelOSStable])
+
+	assert.Equal(t, instanceTypeC4Large, labels[apiv1.LabelInstanceType])
+	assert.Equal(t, instanceTypeC4Large, labels[apiv1.LabelInstanceTypeStable])
+
+	assert.Equal(t, regionUSEast1, labels[apiv1.LabelZoneRegion])
+	assert.Equal(t, regionUSEast1, labels[apiv1.LabelZoneRegionStable])
+
+	assert.Equal(t, zoneUSEast1a, labels[apiv1.LabelZoneFailureDomain])
+	assert.Equal(t, zoneUSEast1a, labels[apiv1.LabelZoneFailureDomainStable])
+
+	assert.Equal(t, testHostName, labels[apiv1.LabelHostname])
+}
+
+func TestGenerationOfCorrectZoneValueFromMCLabel(t *testing.T) {
+	var (
+		resultingZone string
+		zoneA         = "zone-a"
+		zoneB         = "zone-b"
+		randomKey     = "random-key"
+		randomValue   = "random-value"
+	)
+
+	// Basic test to get zone value
+	resultingZone = getZoneValueFromMCLabels(map[string]string{
+		apiv1.LabelZoneFailureDomainStable: zoneA,
+	})
+	assert.Equal(t, resultingZone, zoneA)
+
+	// Prefer LabelZoneFailureDomainStable label over LabelZoneFailureDomain
+	resultingZone = getZoneValueFromMCLabels(map[string]string{
+		apiv1.LabelZoneFailureDomainStable: zoneA,
+		apiv1.LabelZoneFailureDomain:       zoneB,
+	})
+	assert.Equal(t, resultingZone, zoneA)
+
+	// Fallback to LabelZoneFailureDomain when LabelZoneFailureDomainStable is not found
+	resultingZone = getZoneValueFromMCLabels(map[string]string{
+		randomKey:                    randomValue,
+		apiv1.LabelZoneFailureDomain: zoneB,
+	})
+	assert.Equal(t, resultingZone, zoneB)
+
+	// When neither of the labels are found
+	resultingZone = getZoneValueFromMCLabels(map[string]string{
+		randomKey: randomValue,
+	})
+	assert.Equal(t, resultingZone, "")
 }