diff --git a/cluster-autoscaler/cloudprovider/clusterapi/clusterapi_machinedeployment.go b/cluster-autoscaler/cloudprovider/clusterapi/clusterapi_machinedeployment.go
index 100c1ff6bbf8..12757ab083c0 100644
--- a/cluster-autoscaler/cloudprovider/clusterapi/clusterapi_machinedeployment.go
+++ b/cluster-autoscaler/cloudprovider/clusterapi/clusterapi_machinedeployment.go
@@ -99,6 +99,28 @@ func (r machineDeploymentScalableResource) SetSize(nreplicas int32) error {
 	return updateErr
 }
 
+func (r machineDeploymentScalableResource) UnmarkMachineForDeletion(machine *Machine) error {
+	u, err := r.controller.dynamicclient.Resource(*r.controller.machineResource).Namespace(machine.Namespace).Get(context.TODO(), machine.Name, metav1.GetOptions{})
+
+	if err != nil {
+		return err
+	}
+	if u == nil {
+		return fmt.Errorf("unknown machine %s", machine.Name)
+	}
+
+	u = u.DeepCopy()
+
+	annotations := u.GetAnnotations()
+	if _, ok := annotations[machineDeleteAnnotationKey]; ok {
+		delete(annotations, machineDeleteAnnotationKey)
+		u.SetAnnotations(annotations)
+		_, updateErr := r.controller.dynamicclient.Resource(*r.controller.machineResource).Namespace(u.GetNamespace()).Update(context.TODO(), u, metav1.UpdateOptions{})
+		return updateErr
+	}
+	return nil
+}
+
 func (r machineDeploymentScalableResource) MarkMachineForDeletion(machine *Machine) error {
 	u, err := r.controller.dynamicclient.Resource(*r.controller.machineResource).Namespace(machine.Namespace).Get(context.TODO(), machine.Name, metav1.GetOptions{})
 
diff --git a/cluster-autoscaler/cloudprovider/clusterapi/clusterapi_machineset.go b/cluster-autoscaler/cloudprovider/clusterapi/clusterapi_machineset.go
index 98655bfaf3b5..6a80628b8ac1 100644
--- a/cluster-autoscaler/cloudprovider/clusterapi/clusterapi_machineset.go
+++ b/cluster-autoscaler/cloudprovider/clusterapi/clusterapi_machineset.go
@@ -107,6 +107,28 @@ func (r machineSetScalableResource) MarkMachineForDeletion(machine *Machine) err
 	return updateErr
 }
 
+func (r machineSetScalableResource) UnmarkMachineForDeletion(machine *Machine) error {
+	u, err := r.controller.dynamicclient.Resource(*r.controller.machineResource).Namespace(machine.Namespace).Get(context.TODO(), machine.Name, metav1.GetOptions{})
+
+	if err != nil {
+		return err
+	}
+	if u == nil {
+		return fmt.Errorf("unknown machine %s", machine.Name)
+	}
+
+	u = u.DeepCopy()
+
+	annotations := u.GetAnnotations()
+	if _, ok := annotations[machineDeleteAnnotationKey]; ok {
+		delete(annotations, machineDeleteAnnotationKey)
+		u.SetAnnotations(annotations)
+		_, updateErr := r.controller.dynamicclient.Resource(*r.controller.machineResource).Namespace(u.GetNamespace()).Update(context.TODO(), u, metav1.UpdateOptions{})
+		return updateErr
+	}
+	return nil
+}
+
 func newMachineSetScalableResource(controller *machineController, machineSet *MachineSet) (*machineSetScalableResource, error) {
 	minSize, maxSize, err := parseScalingBounds(machineSet.Annotations)
 	if err != nil {
diff --git a/cluster-autoscaler/cloudprovider/clusterapi/clusterapi_nodegroup.go b/cluster-autoscaler/cloudprovider/clusterapi/clusterapi_nodegroup.go
index 89731eee11ed..346ddcef60c7 100644
--- a/cluster-autoscaler/cloudprovider/clusterapi/clusterapi_nodegroup.go
+++ b/cluster-autoscaler/cloudprovider/clusterapi/clusterapi_nodegroup.go
@@ -99,12 +99,12 @@ func (ng *nodegroup) DeleteNodes(nodes []*corev1.Node) error {
 	}
 
 	// Step 2: if deleting len(nodes) would make the replica count
-	// <= 0, then the request to delete that many nodes is bogus
-	// and we fail fast.
+	// < node group minimum size, then the request to delete that many
+	// nodes is bogus and we fail fast.
 	replicas := ng.scalableResource.Replicas()
 
-	if replicas-int32(len(nodes)) <= 0 {
-		return fmt.Errorf("unable to delete %d machines in %q, machine replicas are <= 0 ", len(nodes), ng.Id())
+	if replicas-int32(len(nodes)) < int32(ng.MinSize()) {
+		return fmt.Errorf("unable to delete %d machines in %q, machine replicas are less than requested minimum", len(nodes), ng.Id())
 	}
 
 	// Step 3: annotate the corresponding machine that it is a
@@ -139,6 +139,7 @@ func (ng *nodegroup) DeleteNodes(nodes []*corev1.Node) error {
 		}
 
 		if err := ng.scalableResource.SetSize(replicas - 1); err != nil {
+			nodeGroup.scalableResource.UnmarkMachineForDeletion(machine)
 			return err
 		}
 
diff --git a/cluster-autoscaler/cloudprovider/clusterapi/clusterapi_scalableresource.go b/cluster-autoscaler/cloudprovider/clusterapi/clusterapi_scalableresource.go
index 6c47da3004db..151d4896235b 100644
--- a/cluster-autoscaler/cloudprovider/clusterapi/clusterapi_scalableresource.go
+++ b/cluster-autoscaler/cloudprovider/clusterapi/clusterapi_scalableresource.go
@@ -46,4 +46,7 @@ type scalableResource interface {
 
 	// MarkMachineForDeletion marks machine for deletion
 	MarkMachineForDeletion(machine *Machine) error
+
+	// UnmarkMachineForDeletion unmarks machine for deletion
+	UnmarkMachineForDeletion(machine *Machine) error
 }