diff --git a/pkg/cloudprovider/provider/kubevirt/provider.go b/pkg/cloudprovider/provider/kubevirt/provider.go
index fa385cf17..b57b833a6 100644
--- a/pkg/cloudprovider/provider/kubevirt/provider.go
+++ b/pkg/cloudprovider/provider/kubevirt/provider.go
@@ -76,6 +76,10 @@ const (
 	registrySource imageSource = "registry"
 	// pvcSource defines the pvc source type for VM Disk Image.
 	pvcSource imageSource = "pvc"
+	// topologyRegionKey and topologyZoneKey  on PVC is a topology-aware volume provisioners will automatically set
+	// node affinity constraints on a PersistentVolume.
+	topologyRegionKey = "topology.kubernetes.io/region"
+	topologyZoneKey   = "topology.kubernetes.io/zone"
 )
 
 type provider struct {
@@ -106,6 +110,8 @@ type Config struct {
 	SecondaryDisks            []SecondaryDisks
 	NodeAffinityPreset        NodeAffinityPreset
 	TopologySpreadConstraints []corev1.TopologySpreadConstraint
+	Region                    string
+	Zone                      string
 }
 
 // StorageTarget represents targeted storage definition that will be used to provision VirtualMachine volumes. Currently,
@@ -331,6 +337,11 @@ func (p *provider) getConfig(provSpec clusterv1alpha1.ProviderSpec) (*Config, *p
 		return nil, nil, fmt.Errorf(`failed to parse "topologySpreadConstraints" field: %w`, err)
 	}
 
+	if rawConfig.VirtualMachine.Location != nil {
+		config.Zone = rawConfig.VirtualMachine.Location.Zone
+		config.Region = rawConfig.VirtualMachine.Location.Region
+	}
+
 	return &config, pconfig, nil
 }
 
@@ -649,6 +660,14 @@ func (p *provider) newVirtualMachine(_ context.Context, c *Config, pc *providerc
 	labels["cluster.x-k8s.io/cluster-name"] = c.ClusterName
 	labels["cluster.x-k8s.io/role"] = "worker"
 
+	if c.Region != "" {
+		labels[topologyRegionKey] = c.Region
+	}
+
+	if c.Zone != "" {
+		labels[topologyZoneKey] = c.Zone
+	}
+
 	var (
 		dataVolumeName = machine.Name
 		annotations    = map[string]string{}
diff --git a/pkg/cloudprovider/provider/kubevirt/provider_test.go b/pkg/cloudprovider/provider/kubevirt/provider_test.go
index a1ef8545a..d4ab2bc58 100644
--- a/pkg/cloudprovider/provider/kubevirt/provider_test.go
+++ b/pkg/cloudprovider/provider/kubevirt/provider_test.go
@@ -21,6 +21,7 @@ import (
 	"context"
 	"embed"
 	"html/template"
+	"k8c.io/machine-controller/pkg/cloudprovider/provider/kubevirt/types"
 	"path"
 	"reflect"
 	"testing"
@@ -68,6 +69,7 @@ type kubevirtProviderSpecConf struct {
 	OsImageSource            imageSource
 	OsImageSourceURL         string
 	PullMethod               cdiv1beta1.RegistryPullMethod
+	Location                 *types.Location
 }
 
 func (k kubevirtProviderSpecConf) rawProviderSpec(t *testing.T) []byte {
@@ -101,6 +103,12 @@ func (k kubevirtProviderSpecConf) rawProviderSpec(t *testing.T) []byte {
 		},
 		{{- end }}
 		"virtualMachine": {
+            {{- if .Location }}
+            "location": {
+               "zone": "{{ .Location.Zone }}",
+               "region": "{{ .Location.Region }}"
+            },
+            {{- end }}
 			{{- if .Instancetype }}
 			"instancetype": {
 				"name": "{{ .Instancetype.Name }}",
@@ -202,6 +210,15 @@ func TestNewVirtualMachine(t *testing.T) {
 				},
 			},
 		},
+		{
+			name: "location-zone-and-region-aware",
+			specConf: kubevirtProviderSpecConf{
+				Location: &types.Location{
+					Region: "europe-central",
+					Zone:   "hh",
+				},
+			},
+		},
 		{
 			name:     "topologyspreadconstraints",
 			specConf: kubevirtProviderSpecConf{TopologySpreadConstraint: true},
diff --git a/pkg/cloudprovider/provider/kubevirt/testdata/location-zone-and-region-aware.yaml b/pkg/cloudprovider/provider/kubevirt/testdata/location-zone-and-region-aware.yaml
new file mode 100644
index 000000000..66c747353
--- /dev/null
+++ b/pkg/cloudprovider/provider/kubevirt/testdata/location-zone-and-region-aware.yaml
@@ -0,0 +1,83 @@
+apiVersion: kubevirt.io/v1
+kind: VirtualMachine
+metadata:
+  annotations:
+  labels:
+    cluster.x-k8s.io/cluster-name: cluster-name
+    cluster.x-k8s.io/role: worker
+    kubevirt.io/vm: location-zone-and-region-aware
+    topology.kubernetes.io/region: europe-central
+    topology.kubernetes.io/zone: hh
+    md: md-name
+  name: location-zone-and-region-aware
+  namespace: test-namespace
+spec:
+  dataVolumeTemplates:
+    - metadata:
+        name: location-zone-and-region-aware
+      spec:
+        pvc:
+          accessModes:
+            - ReadWriteOnce
+          resources:
+            requests:
+              storage: 10Gi
+          storageClassName: longhorn
+        source:
+          http:
+            url: http://x.y.z.t/ubuntu.img
+  runStrategy: Once
+  template:
+    metadata:
+      creationTimestamp: null
+      annotations:
+        "ovn.kubernetes.io/allow_live_migration": "true"
+        "kubevirt.io/allow-pod-bridge-network-live-migration": "true"
+      labels:
+        cluster.x-k8s.io/cluster-name: cluster-name
+        cluster.x-k8s.io/role: worker
+        kubevirt.io/vm: location-zone-and-region-aware
+        md: md-name
+        topology.kubernetes.io/region: europe-central
+        topology.kubernetes.io/zone: hh
+    spec:
+      affinity: {}
+      domain:
+        devices:
+          disks:
+            - disk:
+                bus: virtio
+              name: datavolumedisk
+            - disk:
+                bus: virtio
+              name: cloudinitdisk
+          interfaces:
+            - name: default
+              bridge: {}
+        resources:
+          limits:
+            cpu: "2"
+            memory: 2Gi
+          requests:
+            cpu: "2"
+            memory: 2Gi
+      networks:
+        - name: default
+          pod: {}
+      terminationGracePeriodSeconds: 30
+      topologyspreadconstraints:
+        - maxskew: 1
+          topologykey: kubernetes.io/hostname
+          whenunsatisfiable: ScheduleAnyway
+          labelselector:
+            matchlabels:
+              md: md-name
+      volumes:
+        - dataVolume:
+            name: location-zone-and-region-aware
+          name: datavolumedisk
+        - cloudInitNoCloud:
+            secretRef:
+              name: udsn
+          name: cloudinitdisk
+      evictionStrategy: External
diff --git a/pkg/cloudprovider/provider/kubevirt/types/types.go b/pkg/cloudprovider/provider/kubevirt/types/types.go
index 52a2c2e63..e5505e714 100644
--- a/pkg/cloudprovider/provider/kubevirt/types/types.go
+++ b/pkg/cloudprovider/provider/kubevirt/types/types.go
@@ -57,6 +57,7 @@ type VirtualMachine struct {
 	Template   Template                            `json:"template,omitempty"`
 	DNSPolicy  providerconfigtypes.ConfigVarString `json:"dnsPolicy,omitempty"`
 	DNSConfig  *corev1.PodDNSConfig                `json:"dnsConfig,omitempty"`
+	Location   *Location                           `json:"location,omitempty"`
 }
 
 // Flavor.
@@ -125,6 +126,12 @@ type TopologySpreadConstraint struct {
 	WhenUnsatisfiable providerconfigtypes.ConfigVarString `json:"whenUnsatisfiable,omitempty"`
 }
 
+// Location describes the region and zone where the machines are created at and where the deployed resources will reside.
+type Location struct {
+	Region string `json:"region,omitempty"`
+	Zone   string `json:"zone,omitempty"`
+}
+
 func GetConfig(pconfig providerconfigtypes.Config) (*RawConfig, error) {
 	rawConfig := &RawConfig{}