diff --git a/api/v1beta2/conditions_consts.go b/api/v1beta2/conditions_consts.go
index 716d487a4..1506ee0c2 100644
--- a/api/v1beta2/conditions_consts.go
+++ b/api/v1beta2/conditions_consts.go
@@ -36,8 +36,11 @@ const (
 	// InstanceErroredReason instance is in a errored state.
 	InstanceErroredReason = "InstanceErrored"
 
-	// InstanceNotReadyReason used when the instance is in a pending state.
+	// InstanceNotReadyReason used when the instance is in a not ready state.
 	InstanceNotReadyReason = "InstanceNotReady"
+
+	// InstanceStateUnknownReason used when the instance is in a unknown state.
+	InstanceStateUnknownReason = "InstanceStateUnknown"
 )
 
 const (
diff --git a/cloud/scope/powervs_machine.go b/cloud/scope/powervs_machine.go
index bc07cc8c3..32028599a 100644
--- a/cloud/scope/powervs_machine.go
+++ b/cloud/scope/powervs_machine.go
@@ -202,6 +202,15 @@ func (m *PowerVSMachineScope) CreateMachine() (*models.PVMInstanceReference, err
 		// TODO need a reasonable wrapped error.
 		return instanceReply, nil
 	}
+
+	// Check if create request has been already triggered.
+	// If InstanceReadyCondition is Unknown then return and wait for it to get updated.
+	for _, con := range m.IBMPowerVSMachine.Status.Conditions {
+		if con.Type == infrav1beta2.InstanceReadyCondition && con.Status == corev1.ConditionUnknown {
+			return nil, nil
+		}
+	}
+
 	cloudInitData, err := m.GetBootstrapData()
 	if err != nil {
 		return nil, err
diff --git a/cloud/scope/powervs_machine_test.go b/cloud/scope/powervs_machine_test.go
index 45618b99a..67093a652 100644
--- a/cloud/scope/powervs_machine_test.go
+++ b/cloud/scope/powervs_machine_test.go
@@ -257,6 +257,22 @@ func TestCreateMachinePVS(t *testing.T) {
 			require.Equal(t, expectedOutput.ServerName, out.ServerName)
 		})
 
+		t.Run("Return NIL when Machine is not present in the Instance list and Machine state is unknown", func(t *testing.T) {
+			g := NewWithT(t)
+			setup(t)
+			t.Cleanup(teardown)
+			expectedOutput := (*models.PVMInstanceReference)(nil)
+			scope := setupPowerVSMachineScope(clusterName, *core.StringPtr("foo-machine-2"), core.StringPtr(pvsImage), core.StringPtr(pvsNetwork), true, mockpowervs)
+			scope.IBMPowerVSMachine.Status.Conditions = append(scope.IBMPowerVSMachine.Status.Conditions, capiv1beta1.Condition{
+				Type:   infrav1beta2.InstanceReadyCondition,
+				Status: corev1.ConditionUnknown,
+			})
+			mockpowervs.EXPECT().GetAllInstance().Return(pvmInstances, nil)
+			out, err := scope.CreateMachine()
+			g.Expect(err).To(BeNil())
+			require.Equal(t, expectedOutput, out)
+		})
+
 		t.Run("Eror while getting instances", func(t *testing.T) {
 			g := NewWithT(t)
 			setup(t)
diff --git a/controllers/ibmpowervsmachine_controller.go b/controllers/ibmpowervsmachine_controller.go
index e3e228c6f..9177328c5 100644
--- a/controllers/ibmpowervsmachine_controller.go
+++ b/controllers/ibmpowervsmachine_controller.go
@@ -262,6 +262,9 @@ func (r *IBMPowerVSMachineReconciler) reconcileNormal(machineScope *scope.PowerV
 			machineScope.Info("PowerVS instance state is undefined", "state", *instance.Status, "instance-id", machineScope.GetInstanceID())
 			conditions.MarkUnknown(machineScope.IBMPowerVSMachine, infrav1beta2.InstanceReadyCondition, "", "")
 		}
+	} else {
+		machineScope.SetNotReady()
+		conditions.MarkUnknown(machineScope.IBMPowerVSMachine, infrav1beta2.InstanceReadyCondition, infrav1beta2.InstanceStateUnknownReason, "")
 	}
 
 	// Requeue after 2 minute if machine is not ready to update status of the machine properly.