diff --git a/api/v1beta2/ibmpowervscluster_webhook.go b/api/v1beta2/ibmpowervscluster_webhook.go
index cf5f36dab..bac5ee35a 100644
--- a/api/v1beta2/ibmpowervscluster_webhook.go
+++ b/api/v1beta2/ibmpowervscluster_webhook.go
@@ -121,6 +121,10 @@ func (r *IBMPowerVSCluster) validateIBMPowerVSClusterCreateInfraPrereq() *field.
 		return field.Invalid(field.NewPath("spec.zone"), r.Spec.Zone, "value of zone is empty")
 	}
 
+	if r.Spec.VPC == nil {
+		return field.Invalid(field.NewPath("spec.vpc"), r.Spec.VPC, "value of VPC is empty")
+	}
+
 	if r.Spec.VPC.Region == nil {
 		return field.Invalid(field.NewPath("spec.vpc.region"), r.Spec.VPC.Region, "value of VPC region is empty")
 	}
diff --git a/cloud/scope/powervs_machine.go b/cloud/scope/powervs_machine.go
index dfeb80e30..7706bb89c 100644
--- a/cloud/scope/powervs_machine.go
+++ b/cloud/scope/powervs_machine.go
@@ -162,6 +162,8 @@ func NewPowerVSMachineScope(params PowerVSMachineScopeParams) (scope *PowerVSMac
 	var serviceInstanceID, serviceInstanceName string
 	if params.IBMPowerVSMachine.Spec.ServiceInstanceID != "" {
 		serviceInstanceID = params.IBMPowerVSMachine.Spec.ServiceInstanceID
+	} else if params.IBMPowerVSMachine.Spec.ServiceInstance != nil && params.IBMPowerVSMachine.Spec.ServiceInstance.ID != nil {
+		serviceInstanceID = *params.IBMPowerVSMachine.Spec.ServiceInstance.ID
 	} else {
 		serviceInstanceName = fmt.Sprintf("%s-%s", params.IBMPowerVSCluster.GetName(), "serviceInstance")
 		if params.IBMPowerVSCluster.Spec.ServiceInstance != nil && params.IBMPowerVSCluster.Spec.ServiceInstance.Name != nil {