diff --git a/cmd/clusterawsadm/cloudformation/bootstrap/cluster_api_controller.go b/cmd/clusterawsadm/cloudformation/bootstrap/cluster_api_controller.go
index be53426281..616e60d164 100644
--- a/cmd/clusterawsadm/cloudformation/bootstrap/cluster_api_controller.go
+++ b/cmd/clusterawsadm/cloudformation/bootstrap/cluster_api_controller.go
@@ -283,6 +283,7 @@ func (t Template) ControllersPolicy() *iamv1.PolicyDocument {
 				"s3:PutObject",
 				"s3:DeleteObject",
 				"s3:PutBucketPolicy",
+				"s3:PutBucketTagging",
 			},
 		})
 	}
diff --git a/cmd/clusterawsadm/cloudformation/bootstrap/fixtures/with_s3_bucket.yaml b/cmd/clusterawsadm/cloudformation/bootstrap/fixtures/with_s3_bucket.yaml
index d4c8817892..a045a10bf0 100644
--- a/cmd/clusterawsadm/cloudformation/bootstrap/fixtures/with_s3_bucket.yaml
+++ b/cmd/clusterawsadm/cloudformation/bootstrap/fixtures/with_s3_bucket.yaml
@@ -288,6 +288,7 @@ Resources:
           - s3:PutObject
           - s3:DeleteObject
           - s3:PutBucketPolicy
+          - s3:PutBucketTagging
           Effect: Allow
           Resource:
           - arn:*:s3:::cluster-api-provider-aws-*
diff --git a/pkg/cloud/services/s3/s3.go b/pkg/cloud/services/s3/s3.go
index 96a39f8bcd..8940eda38c 100644
--- a/pkg/cloud/services/s3/s3.go
+++ b/pkg/cloud/services/s3/s3.go
@@ -31,6 +31,7 @@ import (
 	"github.com/aws/aws-sdk-go/service/sts/stsiface"
 	"github.com/pkg/errors"
 
+	infrav1 "sigs.k8s.io/cluster-api-provider-aws/v2/api/v1beta2"
 	iam "sigs.k8s.io/cluster-api-provider-aws/v2/iam/api/v1beta1"
 	"sigs.k8s.io/cluster-api-provider-aws/v2/pkg/cloud/scope"
 	"sigs.k8s.io/cluster-api-provider-aws/v2/util/system"
@@ -68,6 +69,10 @@ func (s *Service) ReconcileBucket() error {
 		return errors.Wrap(err, "ensuring bucket exists")
 	}
 
+	if err := s.tagBucket(bucketName); err != nil {
+		return errors.Wrap(err, "tagging bucket")
+	}
+
 	if err := s.ensureBucketPolicy(bucketName); err != nil {
 		return errors.Wrap(err, "ensuring bucket policy")
 	}
@@ -230,6 +235,39 @@ func (s *Service) ensureBucketPolicy(bucketName string) error {
 	return nil
 }
 
+func (s *Service) tagBucket(bucketName string) error {
+	taggingInput := &s3.PutBucketTaggingInput{
+		Bucket: aws.String(bucketName),
+		Tagging: &s3.Tagging{
+			TagSet: nil,
+		},
+	}
+
+	tags := infrav1.Build(infrav1.BuildParams{
+		ClusterName: s.scope.Name(),
+		Lifecycle:   infrav1.ResourceLifecycleOwned,
+		Name:        nil,
+		Role:        aws.String("node"),
+		Additional:  nil,
+	})
+
+	for key, value := range tags {
+		taggingInput.Tagging.TagSet = append(taggingInput.Tagging.TagSet, &s3.Tag{
+			Key:   aws.String(key),
+			Value: aws.String(value),
+		})
+	}
+
+	_, err := s.S3Client.PutBucketTagging(taggingInput)
+	if err != nil {
+		return err
+	}
+
+	s.scope.Trace("Tagged bucket", "bucket_name", bucketName)
+
+	return nil
+}
+
 func (s *Service) bucketPolicy(bucketName string) (string, error) {
 	accountID, err := s.STSClient.GetCallerIdentity(&sts.GetCallerIdentityInput{})
 	if err != nil {
diff --git a/pkg/cloud/services/s3/s3_test.go b/pkg/cloud/services/s3/s3_test.go
index 700dcc3ae3..f3753b24ad 100644
--- a/pkg/cloud/services/s3/s3_test.go
+++ b/pkg/cloud/services/s3/s3_test.go
@@ -75,6 +75,25 @@ func TestReconcileBucket(t *testing.T) {
 		}
 
 		s3Mock.EXPECT().CreateBucket(gomock.Eq(input)).Return(nil, nil).Times(1)
+
+		taggingInput := &s3svc.PutBucketTaggingInput{
+			Bucket: aws.String(expectedBucketName),
+			Tagging: &s3svc.Tagging{
+				TagSet: []*s3svc.Tag{
+					{
+						Key:   aws.String("sigs.k8s.io/cluster-api-provider-aws/cluster/test-cluster"),
+						Value: aws.String("owned"),
+					},
+					{
+						Key:   aws.String("sigs.k8s.io/cluster-api-provider-aws/role"),
+						Value: aws.String("node"),
+					},
+				},
+			},
+		}
+
+		s3Mock.EXPECT().PutBucketTagging(gomock.Eq(taggingInput)).Return(nil, nil).Times(1)
+
 		s3Mock.EXPECT().PutBucketPolicy(gomock.Any()).Return(nil, nil).Times(1)
 
 		if err := svc.ReconcileBucket(); err != nil {
@@ -129,6 +148,7 @@ func TestReconcileBucket(t *testing.T) {
 			}
 		}).Return(nil, nil).Times(1)
 
+		s3Mock.EXPECT().PutBucketTagging(gomock.Any()).Return(nil, nil).Times(1)
 		s3Mock.EXPECT().PutBucketPolicy(gomock.Any()).Return(nil, nil).Times(1)
 
 		if err := svc.ReconcileBucket(); err != nil {
@@ -150,6 +170,7 @@ func TestReconcileBucket(t *testing.T) {
 		})
 
 		s3Mock.EXPECT().CreateBucket(gomock.Any()).Return(nil, nil).Times(1)
+		s3Mock.EXPECT().PutBucketTagging(gomock.Any()).Return(nil, nil).Times(1)
 		s3Mock.EXPECT().PutBucketPolicy(gomock.Any()).Do(func(input *s3svc.PutBucketPolicyInput) {
 			if input.Policy == nil {
 				t.Fatalf("Policy must be defined")
@@ -189,6 +210,7 @@ func TestReconcileBucket(t *testing.T) {
 		svc, s3Mock := testService(t, &infrav1.S3Bucket{})
 
 		s3Mock.EXPECT().CreateBucket(gomock.Any()).Return(nil, nil).Times(2)
+		s3Mock.EXPECT().PutBucketTagging(gomock.Any()).Return(nil, nil).Times(2)
 		s3Mock.EXPECT().PutBucketPolicy(gomock.Any()).Return(nil, nil).Times(2)
 
 		if err := svc.ReconcileBucket(); err != nil {
@@ -208,6 +230,7 @@ func TestReconcileBucket(t *testing.T) {
 		err := awserr.New(s3svc.ErrCodeBucketAlreadyOwnedByYou, "err", errors.New("err"))
 
 		s3Mock.EXPECT().CreateBucket(gomock.Any()).Return(nil, err).Times(1)
+		s3Mock.EXPECT().PutBucketTagging(gomock.Any()).Return(nil, nil).Times(1)
 		s3Mock.EXPECT().PutBucketPolicy(gomock.Any()).Return(nil, nil).Times(1)
 
 		if err := svc.ReconcileBucket(); err != nil {
@@ -248,6 +271,7 @@ func TestReconcileBucket(t *testing.T) {
 			svc, s3Mock := testService(t, &infrav1.S3Bucket{})
 
 			s3Mock.EXPECT().CreateBucket(gomock.Any()).Return(nil, nil).Times(1)
+			s3Mock.EXPECT().PutBucketTagging(gomock.Any()).Return(nil, nil).Times(1)
 
 			mockCtrl := gomock.NewController(t)
 			stsMock := mock_stsiface.NewMockSTSAPI(mockCtrl)
@@ -265,6 +289,7 @@ func TestReconcileBucket(t *testing.T) {
 			svc, s3Mock := testService(t, &infrav1.S3Bucket{})
 
 			s3Mock.EXPECT().CreateBucket(gomock.Any()).Return(nil, nil).Times(1)
+			s3Mock.EXPECT().PutBucketTagging(gomock.Any()).Return(nil, nil).Times(1)
 			s3Mock.EXPECT().PutBucketPolicy(gomock.Any()).Return(nil, errors.New("error")).Times(1)
 
 			if err := svc.ReconcileBucket(); err == nil {