diff --git a/api/v1beta1/consts.go b/api/v1beta1/consts.go
index e65e0a02..9848dfcc 100644
--- a/api/v1beta1/consts.go
+++ b/api/v1beta1/consts.go
@@ -33,6 +33,13 @@ const (
 
 	// CAPEVersionAnnotation is the annotation identifying the version of CAPE that the resource reconciled by.
 	CAPEVersionAnnotation = "cape.infrastructure.cluster.x-k8s.io/cape-version"
+
+	// CreatedByAnnotation is the annotation identifying the creator of the resource.
+	//
+	// The creator can be in one of the following two formats:
+	// 1. ${Tower username}@${Tower auth_config_id}, e.g. caas.smartx@7e98ecbb-779e-43f6-8330-1bc1d29fffc7.
+	// 2. ${Tower username}, e.g. root. If auth_config_id is not set, it means it is a LOCAL user.
+	CreatedByAnnotation = "cape.infrastructure.cluster.x-k8s.io/created-by"
 )
 
 // Labels.
diff --git a/controllers/elfmachine_controller.go b/controllers/elfmachine_controller.go
index c7a10f7a..6ee08025 100644
--- a/controllers/elfmachine_controller.go
+++ b/controllers/elfmachine_controller.go
@@ -57,6 +57,7 @@ import (
 	labelsutil "github.com/smartxworks/cluster-api-provider-elf/pkg/util/labels"
 	machineutil "github.com/smartxworks/cluster-api-provider-elf/pkg/util/machine"
 	patchutil "github.com/smartxworks/cluster-api-provider-elf/pkg/util/patch"
+	typesutil "github.com/smartxworks/cluster-api-provider-elf/pkg/util/types"
 )
 
 //+kubebuilder:rbac:groups=infrastructure.cluster.x-k8s.io,resources=elfmachines,verbs=get;list;watch;create;update;patch;delete
@@ -612,14 +613,14 @@ func (r *ElfMachineReconciler) reconcileVM(ctx *context.MachineContext) (*models
 
 	vmRef := util.GetVMRef(vm)
 	// If vmRef is in UUID format, it means that the ELF VM created.
-	if !machineutil.IsUUID(vmRef) {
+	if !typesutil.IsUUID(vmRef) {
 		ctx.Logger.Info("The VM is being created", "vmRef", vmRef)
 
 		return vm, false, nil
 	}
 
 	// When ELF VM created, set UUID to VMRef
-	if !machineutil.IsUUID(ctx.ElfMachine.Status.VMRef) {
+	if !typesutil.IsUUID(ctx.ElfMachine.Status.VMRef) {
 		ctx.ElfMachine.SetVM(vmRef)
 	}
 
@@ -660,7 +661,7 @@ func (r *ElfMachineReconciler) getVM(ctx *context.MachineContext) (*models.VM, e
 		return nil, err
 	}
 
-	if machineutil.IsUUID(ctx.ElfMachine.Status.VMRef) {
+	if typesutil.IsUUID(ctx.ElfMachine.Status.VMRef) {
 		vmDisconnectionTimestamp := ctx.ElfMachine.GetVMDisconnectionTimestamp()
 		if vmDisconnectionTimestamp == nil {
 			now := metav1.Now()
diff --git a/controllers/elfmachine_controller_placement_group.go b/controllers/elfmachine_controller_placement_group.go
index bb25319f..ba204e05 100644
--- a/controllers/elfmachine_controller_placement_group.go
+++ b/controllers/elfmachine_controller_placement_group.go
@@ -42,6 +42,7 @@ import (
 	annotationsutil "github.com/smartxworks/cluster-api-provider-elf/pkg/util/annotations"
 	kcputil "github.com/smartxworks/cluster-api-provider-elf/pkg/util/kcp"
 	machineutil "github.com/smartxworks/cluster-api-provider-elf/pkg/util/machine"
+	typesutil "github.com/smartxworks/cluster-api-provider-elf/pkg/util/types"
 	"github.com/smartxworks/cluster-api-provider-elf/pkg/version"
 )
 
@@ -258,7 +259,7 @@ func (r *ElfMachineReconciler) getVMHostForRollingUpdate(ctx *context.MachineCon
 
 	elfMachineMap := make(map[string]*infrav1.ElfMachine)
 	for i := 0; i < len(elfMachines); i++ {
-		if machineutil.IsUUID(elfMachines[i].Status.VMRef) {
+		if typesutil.IsUUID(elfMachines[i].Status.VMRef) {
 			elfMachineMap[elfMachines[i].Name] = elfMachines[i]
 		}
 	}
@@ -359,7 +360,7 @@ func (r *ElfMachineReconciler) getPlacementGroup(ctx *context.MachineContext, pl
 	}
 
 	// Placement group is performing an operation
-	if !machineutil.IsUUID(*placementGroup.LocalID) || placementGroup.EntityAsyncStatus != nil {
+	if !typesutil.IsUUID(*placementGroup.LocalID) || placementGroup.EntityAsyncStatus != nil {
 		ctx.Logger.Info("Waiting for placement group task done", "placementGroup", *placementGroup.Name)
 
 		return nil, nil
diff --git a/pkg/service/consts.go b/pkg/service/consts.go
index 0e30697b..19fdf97a 100644
--- a/pkg/service/consts.go
+++ b/pkg/service/consts.go
@@ -23,3 +23,7 @@ const (
 	// SKSVMTemplateUIDLabel is the label used to find the virtual machine template.
 	SKSVMTemplateUIDLabel = "system.cloudtower/sks-template-uid"
 )
+
+// VMOwnerSearchForUsername is used to specify the ower source of the virtual machine.
+// TODO: Tower SDK will provide the VMOwnerSearchFor enumeration types in the new version.
+const VMOwnerSearchForUsername = "username"
diff --git a/pkg/service/util.go b/pkg/service/util.go
index 6a6a81f5..8d6819ad 100644
--- a/pkg/service/util.go
+++ b/pkg/service/util.go
@@ -26,6 +26,7 @@ import (
 
 	infrav1 "github.com/smartxworks/cluster-api-provider-elf/api/v1beta1"
 	"github.com/smartxworks/cluster-api-provider-elf/pkg/config"
+	typesutil "github.com/smartxworks/cluster-api-provider-elf/pkg/util/types"
 )
 
 // GetUpdatedVMRestrictedFields returns the updated restricted fields of the VM compared to ElfMachine.
@@ -309,3 +310,31 @@ func calGPUAvailableVgpusNum(vgpuInstanceNum, assignedVGPUsNum int32) int32 {
 
 	return count
 }
+
+// parseOwnerFromCreatedByAnnotation parse owner from createdBy annotation.
+//
+// The createdBy can be in one of the following two formats:
+// 1. ${Tower username}@${Tower auth_config_id}.
+// 2. ${Tower username}.
+//
+// The owner can be in one of the following two formats:
+// 1. ${Tower username}_${Tower auth_config_id}, e.g. caas.smartx_7e98ecbb-779e-43f6-8330-1bc1d29fffc7.
+// 2. ${Tower username}, e.g. root. If auth_config_id is not set, it means it is a LOCAL user.
+func parseOwnerFromCreatedByAnnotation(createdBy string) string {
+	lastIndex := strings.LastIndex(createdBy, "@")
+	if len(createdBy) <= 1 || lastIndex <= 0 || lastIndex == len(createdBy) {
+		return createdBy
+	}
+
+	username := createdBy[0:lastIndex]
+	authConfigID := createdBy[lastIndex+1:]
+
+	// If authConfigID is not in UUID format, it means username contains the last `@` character,
+	// return createdBy directly.
+	if !typesutil.IsUUID(authConfigID) {
+		return createdBy
+	}
+
+	// last `@` replaced with `_`.
+	return fmt.Sprintf("%s_%s", username, authConfigID)
+}
diff --git a/pkg/service/util_test.go b/pkg/service/util_test.go
index c3f4d132..d409657b 100644
--- a/pkg/service/util_test.go
+++ b/pkg/service/util_test.go
@@ -261,3 +261,26 @@ func TestHasGPUsCanNotBeUsedForVM(t *testing.T) {
 		}), elfMachine)).To(gomega.BeFalse())
 	})
 }
+
+func TestParseOwnerFromCreatedByAnnotation(t *testing.T) {
+	g := gomega.NewGomegaWithT(t)
+
+	t.Run("parseOwnerFromCreatedByAnnotation", func(t *testing.T) {
+		g.Expect(parseOwnerFromCreatedByAnnotation("")).To(gomega.Equal(""))
+		g.Expect(parseOwnerFromCreatedByAnnotation("a")).To(gomega.Equal("a"))
+		g.Expect(parseOwnerFromCreatedByAnnotation("@")).To(gomega.Equal("@"))
+		g.Expect(parseOwnerFromCreatedByAnnotation("a@")).To(gomega.Equal("a@"))
+		g.Expect(parseOwnerFromCreatedByAnnotation("@a")).To(gomega.Equal("@a"))
+		g.Expect(parseOwnerFromCreatedByAnnotation("@@")).To(gomega.Equal("@@"))
+		g.Expect(parseOwnerFromCreatedByAnnotation("root")).To(gomega.Equal("root"))
+		g.Expect(parseOwnerFromCreatedByAnnotation("@root")).To(gomega.Equal("@root"))
+		g.Expect(parseOwnerFromCreatedByAnnotation("ro@ot")).To(gomega.Equal("ro@ot"))
+		g.Expect(parseOwnerFromCreatedByAnnotation("root@")).To(gomega.Equal("root@"))
+		g.Expect(parseOwnerFromCreatedByAnnotation("@ro@ot@")).To(gomega.Equal("@ro@ot@"))
+		g.Expect(parseOwnerFromCreatedByAnnotation("root@123456")).To(gomega.Equal("root@123456"))
+		g.Expect(parseOwnerFromCreatedByAnnotation("root@d8dc20fc-e197-41da-83b6-c903c88663fd")).To(gomega.Equal("root_d8dc20fc-e197-41da-83b6-c903c88663fd"))
+		g.Expect(parseOwnerFromCreatedByAnnotation("@root@d8dc20fc-e197-41da-83b6-c903c88663fd")).To(gomega.Equal("@root_d8dc20fc-e197-41da-83b6-c903c88663fd"))
+		g.Expect(parseOwnerFromCreatedByAnnotation("root@@d8dc20fc-e197-41da-83b6-c903c88663fd")).To(gomega.Equal("root@_d8dc20fc-e197-41da-83b6-c903c88663fd"))
+		g.Expect(parseOwnerFromCreatedByAnnotation("root@d8dc20fc-e197-41da-83b6-c903c88663fd@")).To(gomega.Equal("root@d8dc20fc-e197-41da-83b6-c903c88663fd@"))
+	})
+}
diff --git a/pkg/service/vm.go b/pkg/service/vm.go
index 2e5c7e72..d5427181 100644
--- a/pkg/service/vm.go
+++ b/pkg/service/vm.go
@@ -39,6 +39,7 @@ import (
 	infrav1 "github.com/smartxworks/cluster-api-provider-elf/api/v1beta1"
 	"github.com/smartxworks/cluster-api-provider-elf/pkg/config"
 	"github.com/smartxworks/cluster-api-provider-elf/pkg/session"
+	annotationsutil "github.com/smartxworks/cluster-api-provider-elf/pkg/util/annotations"
 )
 
 type VMService interface {
@@ -241,11 +242,21 @@ func (svr *TowerVMService) Clone(
 		hostID = *host.ID
 	}
 
+	var owner *models.VMOwnerParams
+	if createdBy := annotationsutil.GetCreatedBy(elfCluster); createdBy != "" {
+		creator := parseOwnerFromCreatedByAnnotation(createdBy)
+		owner = &models.VMOwnerParams{
+			SearchFor: TowerString(VMOwnerSearchForUsername),
+			Value:     TowerString(creator),
+		}
+	}
+
 	vmCreateVMFromTemplateParams := &models.VMCreateVMFromContentLibraryTemplateParams{
 		ClusterID:   cluster.ID,
 		HostID:      TowerString(hostID),
 		Name:        TowerString(elfMachine.Name),
 		Description: TowerString(fmt.Sprintf(config.VMDescription, elfCluster.Spec.Tower.Server)),
+		Owner:       owner,
 		Vcpu:        vCPU,
 		CPUCores:    cpuCores,
 		CPUSockets:  cpuSockets,
diff --git a/pkg/util/annotations/helpers.go b/pkg/util/annotations/helpers.go
index ceb61872..2534140f 100644
--- a/pkg/util/annotations/helpers.go
+++ b/pkg/util/annotations/helpers.go
@@ -43,6 +43,15 @@ func GetPlacementGroupName(o metav1.Object) string {
 	return annotations[infrav1.PlacementGroupNameAnnotation]
 }
 
+func GetCreatedBy(o metav1.Object) string {
+	annotations := o.GetAnnotations()
+	if annotations == nil {
+		return ""
+	}
+
+	return annotations[infrav1.CreatedByAnnotation]
+}
+
 // AddAnnotations sets the desired annotations on the object and returns true if the annotations have changed.
 func AddAnnotations(o metav1.Object, desired map[string]string) bool {
 	return annotations.AddAnnotations(o, desired)
diff --git a/pkg/util/machine/machine.go b/pkg/util/machine/machine.go
index cecdb964..e66ac4e0 100644
--- a/pkg/util/machine/machine.go
+++ b/pkg/util/machine/machine.go
@@ -29,6 +29,7 @@ import (
 
 	infrav1 "github.com/smartxworks/cluster-api-provider-elf/api/v1beta1"
 	labelsutil "github.com/smartxworks/cluster-api-provider-elf/pkg/util/labels"
+	typesutil "github.com/smartxworks/cluster-api-provider-elf/pkg/util/types"
 )
 
 const (
@@ -39,10 +40,6 @@ const (
 	// ProviderIDPattern is a regex pattern and is used by ConvertProviderIDToUUID
 	// to convert a providerID into a UUID string.
 	ProviderIDPattern = `(?i)^` + ProviderIDPrefix + `([a-f\d]{8}-[a-f\d]{4}-[a-f\d]{4}-[a-f\d]{4}-[a-f\d]{12})$`
-
-	// UUIDPattern is a regex pattern and is used by ConvertUUIDToProviderID
-	// to convert a UUID into a providerID string.
-	UUIDPattern = `(?i)^[a-f\d]{8}-[a-f\d]{4}-[a-f\d]{4}-[a-f\d]{4}-[a-f\d]{12}$`
 )
 
 // ErrNoMachineIPAddr indicates that no valid IP addresses were found in a machine context.
@@ -132,23 +129,13 @@ func ConvertProviderIDToUUID(providerID *string) string {
 }
 
 func ConvertUUIDToProviderID(uuid string) string {
-	if !IsUUID(uuid) {
+	if !typesutil.IsUUID(uuid) {
 		return ""
 	}
 
 	return ProviderIDPrefix + uuid
 }
 
-func IsUUID(uuid string) bool {
-	if uuid == "" {
-		return false
-	}
-
-	pattern := regexp.MustCompile(UUIDPattern)
-
-	return pattern.MatchString(uuid)
-}
-
 func GetNetworkStatus(ipsStr string) []infrav1.NetworkStatus {
 	networks := []infrav1.NetworkStatus{}
 
diff --git a/pkg/util/machine/machine_test.go b/pkg/util/machine/machine_test.go
index 5e393312..4f2c18ad 100644
--- a/pkg/util/machine/machine_test.go
+++ b/pkg/util/machine/machine_test.go
@@ -183,49 +183,6 @@ func TestConvertUUIDtoProviderID(t *testing.T) {
 	}
 }
 
-func TestIsUUID(t *testing.T) {
-	g := gomega.NewGomegaWithT(t)
-
-	testCases := []struct {
-		name   string
-		uuid   string
-		isUUID bool
-	}{
-		{
-			name:   "empty uuid",
-			uuid:   "",
-			isUUID: false,
-		},
-		{
-			name:   "invalid uuid",
-			uuid:   "1234",
-			isUUID: false,
-		},
-		{
-			name:   "valid uuid",
-			uuid:   "12345678-1234-1234-1234-123456789abc",
-			isUUID: true,
-		},
-		{
-			name:   "mixed case",
-			uuid:   "12345678-1234-1234-1234-123456789AbC",
-			isUUID: true,
-		},
-		{
-			name:   "invalid hex chars",
-			uuid:   "12345678-1234-1234-1234-123456789abg",
-			isUUID: false,
-		},
-	}
-
-	for _, tc := range testCases {
-		t.Run(tc.name, func(t *testing.T) {
-			isUUID := IsUUID(tc.uuid)
-			g.Expect(isUUID).To(gomega.Equal(tc.isUUID))
-		})
-	}
-}
-
 func TestGetNetworkStatus(t *testing.T) {
 	g := gomega.NewGomegaWithT(t)
 
diff --git a/pkg/util/tower.go b/pkg/util/tower.go
index 33f86f5a..0fe36eac 100644
--- a/pkg/util/tower.go
+++ b/pkg/util/tower.go
@@ -20,7 +20,7 @@ import (
 	"github.com/smartxworks/cloudtower-go-sdk/v2/models"
 
 	"github.com/smartxworks/cluster-api-provider-elf/pkg/service"
-	machineutil "github.com/smartxworks/cluster-api-provider-elf/pkg/util/machine"
+	typesutil "github.com/smartxworks/cluster-api-provider-elf/pkg/util/types"
 )
 
 // GetVMRef returns the ID or localID of the VM.
@@ -34,7 +34,7 @@ func GetVMRef(vm *models.VM) string {
 	}
 
 	vmLocalID := service.GetTowerString(vm.LocalID)
-	if machineutil.IsUUID(vmLocalID) {
+	if typesutil.IsUUID(vmLocalID) {
 		return vmLocalID
 	}
 
diff --git a/pkg/util/types/uuid.go b/pkg/util/types/uuid.go
new file mode 100644
index 00000000..93d62800
--- /dev/null
+++ b/pkg/util/types/uuid.go
@@ -0,0 +1,35 @@
+/*
+Copyright 2023.
+
+Licensed under the Apache License, Version 2.0 (the "License");
+you may not use this file except in compliance with the License.
+You may obtain a copy of the License at
+
+    http://www.apache.org/licenses/LICENSE-2.0
+
+Unless required by applicable law or agreed to in writing, software
+distributed under the License is distributed on an "AS IS" BASIS,
+WITHOUT WARRANTIES OR CONDITIONS OF ANY KIND, either express or implied.
+See the License for the specific language governing permissions and
+limitations under the License.
+*/
+
+package types
+
+import "regexp"
+
+const (
+	// UUIDPattern is a regex pattern and is used by ConvertUUIDToProviderID
+	// to convert a UUID into a providerID string.
+	UUIDPattern = `(?i)^[a-f\d]{8}-[a-f\d]{4}-[a-f\d]{4}-[a-f\d]{4}-[a-f\d]{12}$`
+)
+
+func IsUUID(uuid string) bool {
+	if uuid == "" {
+		return false
+	}
+
+	pattern := regexp.MustCompile(UUIDPattern)
+
+	return pattern.MatchString(uuid)
+}
diff --git a/pkg/util/types/uuid_test.go b/pkg/util/types/uuid_test.go
new file mode 100644
index 00000000..b2bcf2dc
--- /dev/null
+++ b/pkg/util/types/uuid_test.go
@@ -0,0 +1,66 @@
+/*
+Copyright 2023.
+
+Licensed under the Apache License, Version 2.0 (the "License");
+you may not use this file except in compliance with the License.
+You may obtain a copy of the License at
+
+    http://www.apache.org/licenses/LICENSE-2.0
+
+Unless required by applicable law or agreed to in writing, software
+distributed under the License is distributed on an "AS IS" BASIS,
+WITHOUT WARRANTIES OR CONDITIONS OF ANY KIND, either express or implied.
+See the License for the specific language governing permissions and
+limitations under the License.
+*/
+
+package types
+
+import (
+	"testing"
+
+	"github.com/onsi/gomega"
+)
+
+func TestIsUUID(t *testing.T) {
+	g := gomega.NewGomegaWithT(t)
+
+	testCases := []struct {
+		name   string
+		uuid   string
+		isUUID bool
+	}{
+		{
+			name:   "empty uuid",
+			uuid:   "",
+			isUUID: false,
+		},
+		{
+			name:   "invalid uuid",
+			uuid:   "1234",
+			isUUID: false,
+		},
+		{
+			name:   "valid uuid",
+			uuid:   "12345678-1234-1234-1234-123456789abc",
+			isUUID: true,
+		},
+		{
+			name:   "mixed case",
+			uuid:   "12345678-1234-1234-1234-123456789AbC",
+			isUUID: true,
+		},
+		{
+			name:   "invalid hex chars",
+			uuid:   "12345678-1234-1234-1234-123456789abg",
+			isUUID: false,
+		},
+	}
+
+	for _, tc := range testCases {
+		t.Run(tc.name, func(t *testing.T) {
+			isUUID := IsUUID(tc.uuid)
+			g.Expect(isUUID).To(gomega.Equal(tc.isUUID))
+		})
+	}
+}