diff --git a/api/v1beta1/ibmpowervsimage_types.go b/api/v1beta1/ibmpowervsimage_types.go
index a408f24e44..2c2985109c 100644
--- a/api/v1beta1/ibmpowervsimage_types.go
+++ b/api/v1beta1/ibmpowervsimage_types.go
@@ -53,6 +53,12 @@ type IBMPowerVSImageSpec struct {
 	// +kubebuilder:validation:Enum=tier1;tier3
 	// +optional
 	StorageType string `json:"storageType,omitempty"`
+
+	// DeletePolicy defines the policy used to identify images to delete when deleting associated cluster.
+	// +kubebuilder:default=delete
+	// +kubebuilder:validation:Enum=delete;retain
+	// +optional
+	DeletePolicy string `json:"deletePolicy,omitempty"`
 }
 
 // IBMPowerVSImageStatus defines the observed state of IBMPowerVSImage
diff --git a/api/v1beta1/types.go b/api/v1beta1/types.go
index d42d53ae2f..25215c0da9 100644
--- a/api/v1beta1/types.go
+++ b/api/v1beta1/types.go
@@ -16,6 +16,11 @@ limitations under the License.
 
 package v1beta1
 
+const (
+	// DeletePolicyLabel is the label set on ibmpowervsimage to identify images to delete when deleting associated cluster.
+	DeletePolicyLabel = "infrastructure.cluster.x-k8s.io/delete-policy"
+)
+
 // PowerVSInstanceState describes the state of an IBM Power VS instance.
 type PowerVSInstanceState string
 
diff --git a/config/crd/bases/infrastructure.cluster.x-k8s.io_ibmpowervsimages.yaml b/config/crd/bases/infrastructure.cluster.x-k8s.io_ibmpowervsimages.yaml
index 229dedb8b4..658edff34c 100644
--- a/config/crd/bases/infrastructure.cluster.x-k8s.io_ibmpowervsimages.yaml
+++ b/config/crd/bases/infrastructure.cluster.x-k8s.io_ibmpowervsimages.yaml
@@ -52,6 +52,14 @@ spec:
                   to.
                 minLength: 1
                 type: string
+              deletePolicy:
+                default: delete
+                description: DeletePolicy defines the policy used to identify images
+                  to delete when deleting associated cluster.
+                enum:
+                - delete
+                - retain
+                type: string
               object:
                 description: Cloud Object Storage image filename
                 type: string
diff --git a/controllers/ibmpowervscluster_controller.go b/controllers/ibmpowervscluster_controller.go
index f63aa53b16..30d8dade9f 100644
--- a/controllers/ibmpowervscluster_controller.go
+++ b/controllers/ibmpowervscluster_controller.go
@@ -190,7 +190,7 @@ func (r *IBMPowerVSClusterReconciler) listDescendants(ctx context.Context, clust
 
 	listOptions := []client.ListOption{
 		client.InNamespace(cluster.Namespace),
-		client.MatchingLabels(map[string]string{clusterv1.ClusterLabelName: cluster.Name}),
+		client.MatchingLabels(map[string]string{clusterv1.ClusterLabelName: cluster.Name, v1beta1.DeletePolicyLabel: "delete"}),
 	}
 
 	if err := r.Client.List(ctx, &descendants.ibmPowerVSImages, listOptions...); err != nil {
diff --git a/controllers/ibmpowervsimage_controller.go b/controllers/ibmpowervsimage_controller.go
index 25405127fb..716d49c4fc 100644
--- a/controllers/ibmpowervsimage_controller.go
+++ b/controllers/ibmpowervsimage_controller.go
@@ -66,6 +66,9 @@ func (r *IBMPowerVSImageReconciler) Reconcile(ctx context.Context, req ctrl.Requ
 
 	cluster, err := util.GetClusterByName(ctx, r.Client, ibmImage.Namespace, ibmImage.Spec.ClusterName)
 	if err != nil {
+		if ibmImage.Spec.DeletePolicy == "retain" {
+			return ctrl.Result{}, nil
+		}
 		return ctrl.Result{}, err
 	}
 
@@ -106,6 +109,10 @@ func (r *IBMPowerVSImageReconciler) reconcile(ctx context.Context, cluster *v1be
 		imageScope.IBMPowerVSImage.Labels[clusterv1.ClusterLabelName] = imageScope.IBMPowerVSImage.Spec.ClusterName
 	}
 
+	if _, ok := imageScope.IBMPowerVSImage.Labels[v1beta1.DeletePolicyLabel]; !ok {
+		imageScope.IBMPowerVSImage.Labels[v1beta1.DeletePolicyLabel] = imageScope.IBMPowerVSImage.Spec.DeletePolicy
+	}
+
 	if r.shouldAdopt(*imageScope.IBMPowerVSImage) {
 		imageScope.Info("Image Controller has not yet set OwnerRef")
 		imageScope.IBMPowerVSImage.OwnerReferences = clusterv1util.EnsureOwnerRef(imageScope.IBMPowerVSImage.OwnerReferences, metav1.OwnerReference{
@@ -121,7 +128,7 @@ func (r *IBMPowerVSImageReconciler) reconcile(ctx context.Context, cluster *v1be
 		job, err := imageScope.IBMPowerVSClient.GetJob(jobID)
 		if err != nil {
 			imageScope.Info("Unable to get job details")
-			return ctrl.Result{RequeueAfter: 2 * time.Minute}, err
+			return ctrl.Result{RequeueAfter: 1 * time.Minute}, err
 		}
 		switch *job.Status.State {
 		case "completed":
@@ -130,17 +137,17 @@ func (r *IBMPowerVSImageReconciler) reconcile(ctx context.Context, cluster *v1be
 			imageScope.SetNotReady()
 			imageScope.SetImageState(string(v1beta1.PowerVSImageStateFailed))
 			conditions.MarkFalse(imageScope.IBMPowerVSImage, v1beta1.ImageImportedCondition, v1beta1.ImageImportFailedReason, clusterv1.ConditionSeverityError, job.Status.Message)
-			return ctrl.Result{RequeueAfter: 2 * time.Minute}, fmt.Errorf("failed to import image, message: %s", job.Status.Message)
+			return ctrl.Result{RequeueAfter: 1 * time.Minute}, fmt.Errorf("failed to import image, message: %s", job.Status.Message)
 		case "queued":
 			imageScope.SetNotReady()
 			imageScope.SetImageState(string(v1beta1.PowerVSImageStateQue))
 			conditions.MarkFalse(imageScope.IBMPowerVSImage, v1beta1.ImageImportedCondition, string(v1beta1.PowerVSImageStateQue), clusterv1.ConditionSeverityInfo, job.Status.Message)
-			return ctrl.Result{RequeueAfter: 2 * time.Minute}, nil
+			return ctrl.Result{RequeueAfter: 1 * time.Minute}, nil
 		default:
 			imageScope.SetNotReady()
 			imageScope.SetImageState(string(v1beta1.PowerVSImageStateImporting))
 			conditions.MarkFalse(imageScope.IBMPowerVSImage, v1beta1.ImageImportedCondition, *job.Status.State, clusterv1.ConditionSeverityInfo, job.Status.Message)
-			return ctrl.Result{RequeueAfter: 2 * time.Minute}, nil
+			return ctrl.Result{RequeueAfter: 1 * time.Minute}, nil
 		}
 	}