diff --git a/api/v1beta1/azuremanagedmachinepool_webhook.go b/api/v1beta1/azuremanagedmachinepool_webhook.go
index 86be164f2aa..459750e8b7d 100644
--- a/api/v1beta1/azuremanagedmachinepool_webhook.go
+++ b/api/v1beta1/azuremanagedmachinepool_webhook.go
@@ -35,6 +35,7 @@ import (
 	"sigs.k8s.io/cluster-api-provider-azure/util/maps"
 	webhookutils "sigs.k8s.io/cluster-api-provider-azure/util/webhook"
 	clusterv1 "sigs.k8s.io/cluster-api/api/v1beta1"
+	clusterctlv1 "sigs.k8s.io/cluster-api/cmd/clusterctl/api/v1alpha3"
 	capifeature "sigs.k8s.io/cluster-api/feature"
 	ctrl "sigs.k8s.io/controller-runtime"
 	"sigs.k8s.io/controller-runtime/pkg/client"
@@ -316,7 +317,8 @@ func (m *AzureManagedMachinePool) validateLastSystemNodePool(cli client.Client)
 		return nil
 	}
 
-	if ownerCluster.Spec.Paused {
+	// checking if the Cluster is going to be deleted for clusterctl move operation
+	if _, found := ownerCluster.Annotations[clusterctlv1.DeleteForMoveAnnotation]; found {
 		return nil
 	}