diff --git a/azure/services/identities/client.go b/azure/services/identities/client.go
index ca406d2914f..d8958c161af 100644
--- a/azure/services/identities/client.go
+++ b/azure/services/identities/client.go
@@ -51,6 +51,19 @@ func NewClient(auth azure.Authorizer) (Client, error) {
 	return &AzureClient{factory.NewUserAssignedIdentitiesClient()}, nil
 }
 
+// NewClientBySub creates a new MSI client with a given subscriptionID
+func NewClientBySub(auth azure.Authorizer, subscriptionID string) (Client, error) {
+	opts, err := azure.ARMClientOptions(auth.CloudEnvironment())
+	if err != nil {
+		return nil, errors.Wrap(err, "failed to create identities client options")
+	}
+	factory, err := armmsi.NewClientFactory(subscriptionID, auth.Token(), opts)
+	if err != nil {
+		return nil, errors.Wrap(err, "failed to create armmsi client factory")
+	}
+	return &AzureClient{factory.NewUserAssignedIdentitiesClient()}, nil
+}
+
 // Get returns a managed service identity.
 func (ac *AzureClient) Get(ctx context.Context, resourceGroupName, name string) (armmsi.Identity, error) {
 	ctx, _, done := tele.StartSpanWithLogger(ctx, "identities.AzureClient.Get")
diff --git a/azure/services/virtualmachines/virtualmachines.go b/azure/services/virtualmachines/virtualmachines.go
index 9179a11dedd..5641b439d1f 100644
--- a/azure/services/virtualmachines/virtualmachines.go
+++ b/azure/services/virtualmachines/virtualmachines.go
@@ -176,7 +176,18 @@ func (s *Service) checkUserAssignedIdentities(ctx context.Context, specIdentitie
 
 	// Create a map of the expected identities. The ProviderID is converted to match the format of the VM identity.
 	for _, expectedIdentity := range specIdentities {
-		expectedClientID, err := s.identitiesGetter.GetClientID(ctx, expectedIdentity.ProviderID)
+		var identitiesClient identities.Client = s.identitiesGetter
+		parsed, err := azureutil.ParseResourceID(expectedIdentity.ProviderID)
+		if err != nil {
+			return err
+		}
+		if parsed.SubscriptionID != s.Scope.SubscriptionID() {
+			identitiesClient, err = identities.NewClientBySub(s.Scope, parsed.SubscriptionID)
+			if err != nil {
+				return errors.Wrapf(err, "failed to create identities client from subscription ID %s", parsed.SubscriptionID)
+			}
+		}
+		expectedClientID, err := identitiesClient.GetClientID(ctx, expectedIdentity.ProviderID)
 		if err != nil {
 			return errors.Wrap(err, "failed to get client ID")
 		}
diff --git a/controllers/azurejson_machine_controller.go b/controllers/azurejson_machine_controller.go
index 6a49a3f8a08..2eb5e5e4f03 100644
--- a/controllers/azurejson_machine_controller.go
+++ b/controllers/azurejson_machine_controller.go
@@ -31,6 +31,7 @@ import (
 	infrav1 "sigs.k8s.io/cluster-api-provider-azure/api/v1beta1"
 	"sigs.k8s.io/cluster-api-provider-azure/azure/scope"
 	"sigs.k8s.io/cluster-api-provider-azure/azure/services/identities"
+	azureutil "sigs.k8s.io/cluster-api-provider-azure/util/azure"
 	"sigs.k8s.io/cluster-api-provider-azure/util/reconciler"
 	"sigs.k8s.io/cluster-api-provider-azure/util/tele"
 	clusterv1 "sigs.k8s.io/cluster-api/api/v1beta1"
@@ -215,11 +216,22 @@ func (r *AzureJSONMachineReconciler) Reconcile(ctx context.Context, req ctrl.Req
 	// Construct secret for this machine
 	userAssignedIdentityIfExists := ""
 	if len(azureMachine.Spec.UserAssignedIdentities) > 0 {
-		idsClient, err := identities.NewClient(clusterScope)
+		var identitiesClient identities.Client
+		identitiesClient, err := identities.NewClient(clusterScope)
 		if err != nil {
 			return reconcile.Result{}, errors.Wrap(err, "failed to create identities client")
 		}
-		userAssignedIdentityIfExists, err = idsClient.GetClientID(
+		parsed, err := azureutil.ParseResourceID(azureMachine.Spec.UserAssignedIdentities[0].ProviderID)
+		if err != nil {
+			return reconcile.Result{}, errors.Wrapf(err, "failed to parse ProviderID %s", azureMachine.Spec.UserAssignedIdentities[0].ProviderID)
+		}
+		if parsed.SubscriptionID != clusterScope.SubscriptionID() {
+			identitiesClient, err = identities.NewClientBySub(clusterScope, parsed.SubscriptionID)
+			if err != nil {
+				return reconcile.Result{}, errors.Wrapf(err, "failed to create identities client from subscription ID %s", parsed.SubscriptionID)
+			}
+		}
+		userAssignedIdentityIfExists, err = identitiesClient.GetClientID(
 			ctx, azureMachine.Spec.UserAssignedIdentities[0].ProviderID)
 		if err != nil {
 			return reconcile.Result{}, errors.Wrap(err, "failed to get user-assigned identity ClientID")
diff --git a/controllers/azurejson_machinepool_controller.go b/controllers/azurejson_machinepool_controller.go
index 09d5af0773a..d62cdf41dae 100644
--- a/controllers/azurejson_machinepool_controller.go
+++ b/controllers/azurejson_machinepool_controller.go
@@ -27,6 +27,7 @@ import (
 	"k8s.io/client-go/tools/record"
 	"k8s.io/utils/ptr"
 	infrav1 "sigs.k8s.io/cluster-api-provider-azure/api/v1beta1"
+	azureutil "sigs.k8s.io/cluster-api-provider-azure/util/azure"
 	"sigs.k8s.io/cluster-api-provider-azure/azure/services/identities"
 	infrav1exp "sigs.k8s.io/cluster-api-provider-azure/exp/api/v1beta1"
 	"sigs.k8s.io/cluster-api-provider-azure/util/reconciler"
@@ -148,11 +149,22 @@ func (r *AzureJSONMachinePoolReconciler) Reconcile(ctx context.Context, req ctrl
 	// Construct secret for this machine
 	userAssignedIdentityIfExists := ""
 	if len(azureMachinePool.Spec.UserAssignedIdentities) > 0 {
-		idsClient, err := getClient(clusterScope)
+		var identitiesClient identities.Client
+		identitiesClient, err := getClient(clusterScope)
 		if err != nil {
 			return reconcile.Result{}, errors.Wrap(err, "failed to create identities client")
 		}
-		userAssignedIdentityIfExists, err = idsClient.GetClientID(
+		parsed, err := azureutil.ParseResourceID(azureMachinePool.Spec.UserAssignedIdentities[0].ProviderID)
+		if err != nil {
+			return reconcile.Result{}, errors.Wrapf(err, "failed to parse ProviderID %s", azureMachinePool.Spec.UserAssignedIdentities[0].ProviderID)
+		}
+		if parsed.SubscriptionID != clusterScope.SubscriptionID() {
+			identitiesClient, err = identities.NewClientBySub(clusterScope, parsed.SubscriptionID)
+			if err != nil {
+				return reconcile.Result{}, errors.Wrapf(err, "failed to create identities client from subscription ID %s", parsed.SubscriptionID)
+			}
+		}
+		userAssignedIdentityIfExists, err = identitiesClient.GetClientID(
 			ctx, azureMachinePool.Spec.UserAssignedIdentities[0].ProviderID)
 		if err != nil {
 			return reconcile.Result{}, errors.Wrap(err, "failed to get user-assigned identity ClientID")
diff --git a/controllers/azurejson_machinetemplate_controller.go b/controllers/azurejson_machinetemplate_controller.go
index 359ae971a57..baea0ee8e18 100644
--- a/controllers/azurejson_machinetemplate_controller.go
+++ b/controllers/azurejson_machinetemplate_controller.go
@@ -30,6 +30,7 @@ import (
 	infrav1 "sigs.k8s.io/cluster-api-provider-azure/api/v1beta1"
 	"sigs.k8s.io/cluster-api-provider-azure/azure/scope"
 	"sigs.k8s.io/cluster-api-provider-azure/azure/services/identities"
+	azureutil "sigs.k8s.io/cluster-api-provider-azure/util/azure"
 	"sigs.k8s.io/cluster-api-provider-azure/util/reconciler"
 	"sigs.k8s.io/cluster-api-provider-azure/util/tele"
 	clusterv1 "sigs.k8s.io/cluster-api/api/v1beta1"
@@ -175,11 +176,22 @@ func (r *AzureJSONTemplateReconciler) Reconcile(ctx context.Context, req ctrl.Re
 	// Construct secret for this machine template
 	userAssignedIdentityIfExists := ""
 	if len(azureMachineTemplate.Spec.Template.Spec.UserAssignedIdentities) > 0 {
-		idsClient, err := identities.NewClient(clusterScope)
+		var identitiesClient identities.Client
+		identitiesClient, err := identities.NewClient(clusterScope)
 		if err != nil {
 			return reconcile.Result{}, errors.Wrap(err, "failed to create identities client")
 		}
-		userAssignedIdentityIfExists, err = idsClient.GetClientID(
+		parsed, err := azureutil.ParseResourceID(azureMachineTemplate.Spec.Template.Spec.UserAssignedIdentities[0].ProviderID)
+		if err != nil {
+			return reconcile.Result{}, errors.Wrapf(err, "failed to parse ProviderID %s", azureMachineTemplate.Spec.Template.Spec.UserAssignedIdentities[0].ProviderID)
+		}
+		if parsed.SubscriptionID != clusterScope.SubscriptionID() {
+			identitiesClient, err = identities.NewClientBySub(clusterScope, parsed.SubscriptionID)
+			if err != nil {
+				return reconcile.Result{}, errors.Wrapf(err, "failed to create identities client from subscription ID %s", parsed.SubscriptionID)
+			}
+		}
+		userAssignedIdentityIfExists, err = identitiesClient.GetClientID(
 			ctx, azureMachineTemplate.Spec.Template.Spec.UserAssignedIdentities[0].ProviderID)
 		if err != nil {
 			return reconcile.Result{}, errors.Wrap(err, "failed to get user-assigned identity ClientID")