diff --git a/.github/workflows/build_test_ci.yml b/.github/workflows/build_test_ci.yml
index a2c520702..6ee2f2042 100644
--- a/.github/workflows/build_test_ci.yml
+++ b/.github/workflows/build_test_ci.yml
@@ -76,7 +76,7 @@ jobs:
     - name: Docker cache
       uses: ScribeMD/docker-cache@0.3.7
       with:
-        key: docker-${{ runner.os }}-${{ hashFiles('Makefile') }}}
+        key: docker-${{ runner.os }}-${{ hashFiles('go.sum') }}}
 
     - name: Lint
       run: make lint
@@ -100,6 +100,7 @@ jobs:
         disable-sudo: true
         egress-policy: block
         allowed-endpoints: >
+          api.linode.com:443
           api.github.com:443
           github.com:443
           gcr.io:443
@@ -130,7 +131,7 @@ jobs:
     - name: Docker cache
       uses: ScribeMD/docker-cache@0.3.7
       with:
-        key: docker-${{ runner.os }}-${{ hashFiles('Makefile') }}}
+        key: docker-${{ runner.os }}-${{ hashFiles('go.sum') }}}
 
     - name: E2E test
       run: make e2etest
@@ -173,7 +174,7 @@ jobs:
     - name: Docker cache
       uses: ScribeMD/docker-cache@0.3.7
       with:
-        key: docker-${{ runner.os }}-${{ hashFiles('Makefile') }}
+        key: docker-${{ runner.os }}-${{ hashFiles('go.sum') }}
 
     - name: Build the Docker image
       run: make docker-build
diff --git a/Makefile b/Makefile
index 702e969b5..96a3be68d 100644
--- a/Makefile
+++ b/Makefile
@@ -89,11 +89,14 @@ test: manifests generate fmt vet envtest ## Run tests.
 	KUBEBUILDER_ASSETS="$(shell $(ENVTEST) use $(ENVTEST_K8S_VERSION) --bin-dir $(LOCALBIN) -p path)" go test -race -timeout 60s ./... -coverprofile cover.out
 
 .PHONY: e2etest
-e2etest: kind ctlptl tilt kuttl kustomize clusterctl manifests generate
+e2etest:
+	make --no-print-directory _e2etest # Workaround to force the flag on Github Action
+
+_e2etest: kind ctlptl tilt kuttl kustomize clusterctl envsubst manifests generate
 	@echo -n "LINODE_TOKEN=$(LINODE_TOKEN)" > config/default/.env.linode
 	$(CTLPTL) apply -f .tilt/ctlptl-config.yaml
-	$(TILT) ci --timeout 180s -f Tiltfile
-	$(KUTTL) test --config e2e/kuttl-config.yaml
+	$(TILT) ci --timeout 240s -f Tiltfile
+	ROOT_DIR="$(PWD)" $(KUTTL) test --config e2e/kuttl-config.yaml
 
 ##@ Build
 
@@ -180,6 +183,7 @@ TILT ?= $(LOCALBIN)/tilt
 KIND ?= $(LOCALBIN)/kind
 KUTTL ?= $(LOCALBIN)/kuttl
 ENVTEST ?= $(LOCALBIN)/setup-envtest
+ENVSUBST ?= $(LOCALBIN)/envsubst
 HUSKY ?= $(LOCALBIN)/husky
 NILAWAY ?= $(LOCALBIN)/nilaway
 GOVULNC ?= $(LOCALBIN)/govulncheck
@@ -192,6 +196,7 @@ CONTROLLER_TOOLS_VERSION ?= v0.13.0
 TILT_VERSION ?= 0.33.6
 KIND_VERSION ?= 0.20.0
 KUTTL_VERSION ?= 0.15.0
+ENVSUBST_VERSION ?= v1.4.2
 HUSKY_VERSION ?= v0.2.16
 NILAWAY_VERSION ?= latest
 GOVULNC_VERSION ?= v1.0.1
@@ -251,6 +256,12 @@ envtest: $(ENVTEST) ## Download envtest-setup locally if necessary.
 $(ENVTEST): $(LOCALBIN)
 	test -s $(LOCALBIN)/setup-envtest || GOBIN=$(LOCALBIN) go install sigs.k8s.io/controller-runtime/tools/setup-envtest@latest
 
+.PHONY: envsubst
+envsubst: $(ENVSUBST) ## Download envsubst locally if necessary. If wrong version is installed, it will be overwritten.
+$(ENVSUBST): $(LOCALBIN)
+	test -s $(ENVSUBST) || \
+	(cd $(LOCALBIN); curl -Lso ./envsubst https://github.com/a8m/envsubst/releases/download/$(ENVSUBST_VERSION)/envsubst-$(shell uname -s)-$(ARCH) && chmod +x envsubst)
+
 .PHONY: husky
 husky: $(HUSKY) ## Download husky locally if necessary.
 	@echo Execute install command to enable git hooks: ./bin/husky install
diff --git a/cloud/scope/cluster.go b/cloud/scope/cluster.go
index c61077530..a99557394 100644
--- a/cloud/scope/cluster.go
+++ b/cloud/scope/cluster.go
@@ -21,13 +21,13 @@ import (
 	"errors"
 	"fmt"
 
-	"sigs.k8s.io/controller-runtime/pkg/controller/controllerutil"
-
-	infrav1alpha1 "github.com/linode/cluster-api-provider-linode/api/v1alpha1"
 	"github.com/linode/linodego"
 	clusterv1 "sigs.k8s.io/cluster-api/api/v1beta1"
 	"sigs.k8s.io/cluster-api/util/patch"
 	"sigs.k8s.io/controller-runtime/pkg/client"
+	"sigs.k8s.io/controller-runtime/pkg/controller/controllerutil"
+
+	infrav1alpha1 "github.com/linode/cluster-api-provider-linode/api/v1alpha1"
 )
 
 // ClusterScopeParams defines the input parameters used to create a new Scope.
diff --git a/config/manager/manager.yaml b/config/manager/manager.yaml
index 8fa75b04c..ab0520063 100644
--- a/config/manager/manager.yaml
+++ b/config/manager/manager.yaml
@@ -77,6 +77,8 @@ spec:
              secretKeyRef:
                name: token
                key: LINODE_TOKEN
+        - name: LINODE_API_VERSION
+          value: v4beta
         name: manager
         securityContext:
           allowPrivilegeEscalation: false
diff --git a/controller/linodemachine_controller.go b/controller/linodemachine_controller.go
index dbd5c83d9..04d6a0531 100644
--- a/controller/linodemachine_controller.go
+++ b/controller/linodemachine_controller.go
@@ -18,7 +18,6 @@ package controller
 
 import (
 	"context"
-	b64 "encoding/base64"
 	"errors"
 	"fmt"
 	"net/http"
@@ -31,6 +30,7 @@ import (
 	"github.com/linode/linodego"
 	corev1 "k8s.io/api/core/v1"
 	"k8s.io/apimachinery/pkg/runtime"
+	utilerrors "k8s.io/apimachinery/pkg/util/errors"
 	"k8s.io/client-go/tools/record"
 	clusterv1 "sigs.k8s.io/cluster-api/api/v1beta1"
 	cerrs "sigs.k8s.io/cluster-api/errors"
@@ -90,6 +90,8 @@ type LinodeMachineReconciler struct {
 //
 // For more details, check Reconcile and its Result here:
 // - https://pkg.go.dev/sigs.k8s.io/controller-runtime@v0.16.0/pkg/reconcile
+//
+//nolint:gocyclo,cyclop // As simple as possible.
 func (r *LinodeMachineReconciler) Reconcile(ctx context.Context, req ctrl.Request) (ctrl.Result, error) {
 	ctx, cancel := context.WithTimeout(ctx, reconciler.DefaultedLoopTimeout(r.ReconcileTimeout))
 	defer cancel()
@@ -98,17 +100,21 @@ func (r *LinodeMachineReconciler) Reconcile(ctx context.Context, req ctrl.Reques
 
 	linodeMachine := &infrav1alpha1.LinodeMachine{}
 	if err := r.Client.Get(ctx, req.NamespacedName, linodeMachine); err != nil {
-		log.Error(err, "Failed to fetch Linode machine")
+		if err = client.IgnoreNotFound(err); err != nil {
+			log.Error(err, "Failed to fetch Linode machine")
+		}
 
-		return ctrl.Result{}, client.IgnoreNotFound(err)
+		return ctrl.Result{}, err
 	}
 
 	machine, err := kutil.GetOwnerMachine(ctx, r.Client, linodeMachine.ObjectMeta)
 	switch {
 	case err != nil:
-		log.Error(err, "Failed to fetch owner machine")
+		if err = client.IgnoreNotFound(err); err != nil {
+			log.Error(err, "Failed to fetch owner machine")
+		}
 
-		return ctrl.Result{}, client.IgnoreNotFound(err)
+		return ctrl.Result{}, err
 	case machine == nil:
 		log.Info("Machine Controller has not yet set OwnerRef, skipping reconciliation")
 
@@ -134,14 +140,25 @@ func (r *LinodeMachineReconciler) Reconcile(ctx context.Context, req ctrl.Reques
 	log = log.WithValues("Linode machine: ", machine.Name)
 
 	cluster, err := kutil.GetClusterFromMetadata(ctx, r.Client, machine.ObjectMeta)
-	if err != nil {
-		log.Info("Failed to fetch cluster by label")
+	switch {
+	case err != nil:
+		if err = client.IgnoreNotFound(err); err != nil {
+			log.Error(err, "Failed to fetch cluster by label")
+		}
 
-		return ctrl.Result{}, client.IgnoreNotFound(err)
-	} else if cluster == nil {
-		log.Info("Failed to find cluster by label")
+		return ctrl.Result{}, err
+	case cluster == nil:
+		err = errors.New("missing cluster")
 
-		return ctrl.Result{}, client.IgnoreNotFound(err)
+		log.Error(err, "Missing cluster")
+
+		return ctrl.Result{}, err
+	case cluster.Spec.InfrastructureRef == nil:
+		err = errors.New("missing infrastructure reference")
+
+		log.Error(err, "Missing infrastructure reference")
+
+		return ctrl.Result{}, err
 	}
 
 	linodeCluster := &infrav1alpha1.LinodeCluster{}
@@ -151,9 +168,11 @@ func (r *LinodeMachineReconciler) Reconcile(ctx context.Context, req ctrl.Reques
 	}
 
 	if err = r.Client.Get(ctx, linodeClusterKey, linodeCluster); err != nil {
-		log.Error(err, "Failed to fetch Linode cluster")
+		if err = client.IgnoreNotFound(err); err != nil {
+			log.Error(err, "Failed to fetch Linode cluster")
+		}
 
-		return ctrl.Result{}, client.IgnoreNotFound(err)
+		return ctrl.Result{}, err
 	}
 
 	machineScope, err := scope.NewMachineScope(
@@ -214,7 +233,7 @@ func (r *LinodeMachineReconciler) reconcile(
 		}
 
 		// Always close the scope when exiting this function so we can persist any LinodeMachine changes.
-		if patchErr := machineScope.Close(ctx); patchErr != nil && client.IgnoreNotFound(patchErr) != nil {
+		if patchErr := machineScope.Close(ctx); patchErr != nil && utilerrors.FilterOut(patchErr) != nil {
 			logger.Error(patchErr, "failed to patch LinodeMachine")
 
 			err = errors.Join(err, patchErr)
@@ -252,7 +271,7 @@ func (r *LinodeMachineReconciler) reconcile(
 
 		logger = logger.WithValues("ID", *machineScope.LinodeMachine.Spec.InstanceID)
 
-		res, err = r.reconcileUpdate(ctx, logger, machineScope)
+		res, linodeInstance, err = r.reconcileUpdate(ctx, logger, machineScope)
 
 		return
 	}
@@ -265,7 +284,7 @@ func (r *LinodeMachineReconciler) reconcile(
 
 		return ctrl.Result{RequeueAfter: reconciler.DefaultMachineControllerWaitForBootstrapDelay}, nil
 	}
-	err = r.reconcileCreate(ctx, logger, machineScope, clusterScope)
+	linodeInstance, err = r.reconcileCreate(ctx, logger, machineScope, clusterScope)
 
 	return
 }
@@ -275,7 +294,7 @@ func (r *LinodeMachineReconciler) reconcileCreate(
 	logger logr.Logger,
 	machineScope *scope.MachineScope,
 	clusterScope *scope.ClusterScope,
-) error {
+) (*linodego.Instance, error) {
 	logger.Info("creating machine")
 
 	tags := []string{string(machineScope.LinodeCluster.UID), string(machineScope.LinodeMachine.UID)}
@@ -284,7 +303,7 @@ func (r *LinodeMachineReconciler) reconcileCreate(
 	if err != nil {
 		logger.Error(err, "Failed to list Linode machine instances")
 
-		return err
+		return nil, err
 	}
 
 	var linodeInstance *linodego.Instance
@@ -294,28 +313,12 @@ func (r *LinodeMachineReconciler) reconcileCreate(
 
 		linodeInstance = &linodeInstances[0]
 	case 0:
-		createConfig := linodeMachineSpecToInstanceCreateConfig(machineScope.LinodeMachine.Spec)
-		if createConfig == nil {
-			err = errors.New("failed to convert machine spec to create instance config")
-
-			logger.Error(err, "Panic! Struct of LinodeMachineSpec is different than InstanceCreateOptions")
-
-			return err
-		}
-		createConfig.Label = machineScope.LinodeMachine.Spec.Label
-		createConfig.Tags = tags
-		createConfig.SwapSize = util.Pointer(0)
-		createConfig.PrivateIP = true
-
 		// get the bootstrap data for the Linode instance and set it for create config
-		bootstrapData, err := machineScope.GetBootstrapData(ctx)
+		createConfig, err := r.newCreateConfig(ctx, machineScope, tags, logger)
 		if err != nil {
-			logger.Info("Failed to get bootstrap data", "error", err.Error())
+			logger.Error(err, "Failed to create Linode machine create config")
 
-			return err
-		}
-		createConfig.Metadata = &linodego.InstanceMetadataOptions{
-			UserData: b64.StdEncoding.EncodeToString(bootstrapData),
+			return nil, err
 		}
 
 		if machineScope.LinodeCluster.Spec.VPCRef != nil {
@@ -323,7 +326,7 @@ func (r *LinodeMachineReconciler) reconcileCreate(
 			if err != nil {
 				logger.Error(err, "Failed to get VPC interface confiog")
 
-				return err
+				return nil, err
 			}
 
 			createConfig.Interfaces = append(createConfig.Interfaces, *iface)
@@ -333,14 +336,14 @@ func (r *LinodeMachineReconciler) reconcileCreate(
 		if err != nil {
 			logger.Error(err, "Failed to create Linode machine instance")
 
-			return err
+			return nil, err
 		}
 	default:
 		err = errors.New("multiple instances")
 
 		logger.Error(err, "Panic! Multiple instances found. This might be a concurrency issue in the controller!!!", "tags", tags)
 
-		return err
+		return nil, err
 	}
 
 	if linodeInstance == nil {
@@ -348,7 +351,7 @@ func (r *LinodeMachineReconciler) reconcileCreate(
 
 		logger.Error(err, "Panic! Failed to create isntance")
 
-		return err
+		return nil, err
 	}
 
 	machineScope.LinodeMachine.Status.Ready = true
@@ -366,26 +369,25 @@ func (r *LinodeMachineReconciler) reconcileCreate(
 	if err = services.AddNodeToNB(ctx, logger, machineScope, clusterScope); err != nil {
 		logger.Error(err, "Failed to add instance to Node Balancer backend")
 
-		return err
+		return linodeInstance, err
 	}
 
-	return nil
+	return linodeInstance, nil
 }
 
 func (r *LinodeMachineReconciler) reconcileUpdate(
 	ctx context.Context,
 	logger logr.Logger,
 	machineScope *scope.MachineScope,
-) (res reconcile.Result, err error) {
+) (res reconcile.Result, linodeInstance *linodego.Instance, err error) {
 	logger.Info("updating machine")
 
 	res = ctrl.Result{}
 
 	if machineScope.LinodeMachine.Spec.InstanceID == nil {
-		return res, errors.New("missing instance ID")
+		return res, nil, errors.New("missing instance ID")
 	}
 
-	var linodeInstance *linodego.Instance
 	if linodeInstance, err = machineScope.LinodeClient.GetInstance(ctx, *machineScope.LinodeMachine.Spec.InstanceID); err != nil {
 		err = util.IgnoreLinodeAPIError(err, http.StatusNotFound)
 		if err != nil {
@@ -400,27 +402,27 @@ func (r *LinodeMachineReconciler) reconcileUpdate(
 			conditions.MarkFalse(machineScope.LinodeMachine, clusterv1.ReadyCondition, "missing", clusterv1.ConditionSeverityWarning, "instance not found")
 		}
 
-		return res, err
+		return res, nil, err
 	}
 
 	if _, ok := requeueInstanceStatuses[linodeInstance.Status]; ok {
 		if linodeInstance.Updated.Add(reconciler.DefaultMachineControllerWaitForRunningTimeout).After(time.Now()) {
 			logger.Info("Instance has one operaton running, re-queuing reconciliation", "status", linodeInstance.Status)
 
-			return ctrl.Result{RequeueAfter: reconciler.DefaultMachineControllerWaitForRunningDelay}, nil
+			return ctrl.Result{RequeueAfter: reconciler.DefaultMachineControllerWaitForRunningDelay}, linodeInstance, nil
 		}
 
 		logger.Info("Instance has one operaton long running, skipping reconciliation", "status", linodeInstance.Status)
 
 		conditions.MarkFalse(machineScope.LinodeMachine, clusterv1.ReadyCondition, string(linodeInstance.Status), clusterv1.ConditionSeverityInfo, "skipped due to long running operation")
 
-		return res, nil
+		return res, linodeInstance, nil
 	} else if linodeInstance.Status != linodego.InstanceRunning {
 		logger.Info("Instance has incompatible status, skipping reconciliation", "status", linodeInstance.Status)
 
 		conditions.MarkFalse(machineScope.LinodeMachine, clusterv1.ReadyCondition, string(linodeInstance.Status), clusterv1.ConditionSeverityInfo, "incompatible status")
 
-		return res, nil
+		return res, linodeInstance, nil
 	}
 
 	machineScope.LinodeMachine.Status.Ready = true
@@ -429,7 +431,7 @@ func (r *LinodeMachineReconciler) reconcileUpdate(
 
 	r.Recorder.Event(machineScope.LinodeMachine, corev1.EventTypeNormal, string(clusterv1.ReadyCondition), "instance is running")
 
-	return res, nil
+	return res, linodeInstance, nil
 }
 
 func (r *LinodeMachineReconciler) reconcileDelete(
diff --git a/controller/linodemachine_controller_helpers.go b/controller/linodemachine_controller_helpers.go
index 666858cf5..ecaa44e64 100644
--- a/controller/linodemachine_controller_helpers.go
+++ b/controller/linodemachine_controller_helpers.go
@@ -19,13 +19,15 @@ package controller
 import (
 	"bytes"
 	"context"
+	b64 "encoding/base64"
 	"encoding/gob"
 	"errors"
 	"sort"
 
 	"github.com/go-logr/logr"
-	infrav1 "github.com/linode/cluster-api-provider-linode/api/v1alpha1"
+	"github.com/google/uuid"
 	"github.com/linode/cluster-api-provider-linode/cloud/scope"
+	"github.com/linode/cluster-api-provider-linode/util"
 	"github.com/linode/cluster-api-provider-linode/util/reconciler"
 	"github.com/linode/linodego"
 	apierrors "k8s.io/apimachinery/pkg/api/errors"
@@ -35,8 +37,54 @@ import (
 	ctrl "sigs.k8s.io/controller-runtime"
 	"sigs.k8s.io/controller-runtime/pkg/client"
 	"sigs.k8s.io/controller-runtime/pkg/handler"
+
+	infrav1alpha1 "github.com/linode/cluster-api-provider-linode/api/v1alpha1"
 )
 
+func (*LinodeMachineReconciler) newCreateConfig(ctx context.Context, machineScope *scope.MachineScope, tags []string, logger logr.Logger) (*linodego.InstanceCreateOptions, error) {
+	var err error
+
+	createConfig := linodeMachineSpecToInstanceCreateConfig(machineScope.LinodeMachine.Spec)
+	if createConfig == nil {
+		err = errors.New("failed to convert machine spec to create instance config")
+
+		logger.Error(err, "Panic! Struct of LinodeMachineSpec is different than InstanceCreateOptions")
+
+		return nil, err
+	}
+	createConfig.SwapSize = util.Pointer(0)
+	createConfig.PrivateIP = true
+
+	bootstrapData, err := machineScope.GetBootstrapData(ctx)
+	if err != nil {
+		logger.Info("Failed to get bootstrap data", "error", err.Error())
+
+		return nil, err
+	}
+	createConfig.Metadata = &linodego.InstanceMetadataOptions{
+		UserData: b64.StdEncoding.EncodeToString(bootstrapData),
+	}
+
+	if createConfig.Tags == nil {
+		createConfig.Tags = []string{}
+	}
+	createConfig.Tags = append(createConfig.Tags, tags...)
+
+	if createConfig.Label == "" {
+		createConfig.Label = util.RenderObjectLabel(machineScope.LinodeMachine.UID)
+	}
+
+	if createConfig.Image == "" {
+		createConfig.Image = reconciler.DefaultMachineControllerLinodeImage
+	}
+
+	if createConfig.RootPass == "" {
+		createConfig.RootPass = uuid.NewString()
+	}
+
+	return createConfig, nil
+}
+
 func (r *LinodeMachineReconciler) linodeClusterToLinodeMachines(logger logr.Logger) handler.MapFunc {
 	logger = logger.WithName("LinodeMachineReconciler").WithName("linodeClusterToLinodeMachines")
 
@@ -44,7 +92,7 @@ func (r *LinodeMachineReconciler) linodeClusterToLinodeMachines(logger logr.Logg
 		ctx, cancel := context.WithTimeout(ctx, reconciler.DefaultMappingTimeout)
 		defer cancel()
 
-		linodeCluster, ok := o.(*infrav1.LinodeCluster)
+		linodeCluster, ok := o.(*infrav1alpha1.LinodeCluster)
 		if !ok {
 			logger.Info("Failed to cast object to Cluster")
 
@@ -142,7 +190,7 @@ func (r *LinodeMachineReconciler) getVPCInterfaceConfig(ctx context.Context, mac
 
 	logger = logger.WithValues("vpcName", name, "vpcNamespace", namespace)
 
-	linodeVPC := infrav1.LinodeVPC{
+	linodeVPC := infrav1alpha1.LinodeVPC{
 		ObjectMeta: metav1.ObjectMeta{
 			Namespace: namespace,
 			Name:      name,
@@ -202,7 +250,7 @@ func (r *LinodeMachineReconciler) getVPCInterfaceConfig(ctx context.Context, mac
 	}, nil
 }
 
-func linodeMachineSpecToInstanceCreateConfig(machineSpec infrav1.LinodeMachineSpec) *linodego.InstanceCreateOptions {
+func linodeMachineSpecToInstanceCreateConfig(machineSpec infrav1alpha1.LinodeMachineSpec) *linodego.InstanceCreateOptions {
 	var buf bytes.Buffer
 	enc := gob.NewEncoder(&buf)
 	err := enc.Encode(machineSpec)
diff --git a/controller/linodemachine_controller_helpers_test.go b/controller/linodemachine_controller_helpers_test.go
index 3a00d3a6b..d3ce540f4 100644
--- a/controller/linodemachine_controller_helpers_test.go
+++ b/controller/linodemachine_controller_helpers_test.go
@@ -5,10 +5,11 @@ import (
 	"encoding/gob"
 	"testing"
 
-	infrav1 "github.com/linode/cluster-api-provider-linode/api/v1alpha1"
 	"github.com/linode/linodego"
 	"github.com/stretchr/testify/assert"
 	"github.com/stretchr/testify/require"
+
+	infrav1alpha1 "github.com/linode/cluster-api-provider-linode/api/v1alpha1"
 )
 
 func TestLinodeMachineSpecToCreateInstanceConfig(t *testing.T) {
@@ -16,7 +17,7 @@ func TestLinodeMachineSpecToCreateInstanceConfig(t *testing.T) {
 
 	subnetID := 1
 
-	machineSpec := infrav1.LinodeMachineSpec{
+	machineSpec := infrav1alpha1.LinodeMachineSpec{
 		Region:          "region",
 		Type:            "type",
 		Label:           "label",
@@ -28,14 +29,14 @@ func TestLinodeMachineSpecToCreateInstanceConfig(t *testing.T) {
 		StackScriptData: map[string]string{"script": "data"},
 		BackupID:        1,
 		Image:           "image",
-		Interfaces: []infrav1.InstanceConfigInterfaceCreateOptions{
+		Interfaces: []infrav1alpha1.InstanceConfigInterfaceCreateOptions{
 			{
 				IPAMAddress: "address",
 				Label:       "label",
 				Purpose:     linodego.InterfacePurposePublic,
 				Primary:     true,
 				SubnetID:    &subnetID,
-				IPv4: &infrav1.VPCIPv4{
+				IPv4: &infrav1alpha1.VPCIPv4{
 					VPC:     "vpc",
 					NAT1To1: "nat11",
 				},
@@ -45,7 +46,7 @@ func TestLinodeMachineSpecToCreateInstanceConfig(t *testing.T) {
 		BackupsEnabled: true,
 		PrivateIP:      true,
 		Tags:           []string{"tag"},
-		Metadata: &infrav1.InstanceMetadataOptions{
+		Metadata: &infrav1alpha1.InstanceMetadataOptions{
 			UserData: "userdata",
 		},
 		FirewallID: 1,
@@ -59,7 +60,7 @@ func TestLinodeMachineSpecToCreateInstanceConfig(t *testing.T) {
 	err := enc.Encode(createConfig)
 	require.NoError(t, err, "Failed to encode InstanceCreateOptions")
 
-	var actualMachineSpec infrav1.LinodeMachineSpec
+	var actualMachineSpec infrav1alpha1.LinodeMachineSpec
 	dec := gob.NewDecoder(&buf)
 	err = dec.Decode(&actualMachineSpec)
 	require.NoError(t, err, "Failed to decode LinodeMachineSpec")
diff --git a/e2e/Makefile b/e2e/Makefile
new file mode 100644
index 000000000..83d77f710
--- /dev/null
+++ b/e2e/Makefile
@@ -0,0 +1,24 @@
+runTestCase:
+	@T="$$(KUBECONFIG="$$ROOT_DIR/kubeconfig" kuttl test --timeout 300 --skip-delete --namespace "$$NAMESPACE" "$$TC" 2>&1)" ;\
+	echo "$$T" |\
+		grep -v harness.go |\
+		grep -v ^=== |\
+		grep -v "running without a 'kuttl-test.yaml" |\
+		grep -v "creation of user-supplied namespace" |\
+		grep -v "not match file name regexp" |\
+		grep -v "kutt-test config testdirs is overridden" ;\
+	echo "$$T" | \
+		grep '^PASS' || \
+			(echo "$$T" | grep harness.go && cat "$$TC/step/00-step.yaml" && exit 1)
+
+renderTestCase:
+	@D="$$(mktemp -d)" ;\
+	mkdir -p "$$D/step" ;\
+	envsubst -i "$$TPL" -o "$$D/step/00-step.yaml" ;\
+	echo -n "$$D"
+
+getKubeUid:
+	@kubectl get -o jsonpath='{.metadata.uid}' -n "$$NAMESPACE" "$$OBJ"
+
+callLinodeApiGet:
+	@curl -s -H "Authorization: Bearer $$LINODE_TOKEN" -H "X-Filter: $$FILTER" "https://api.linode.com/v4beta/$$URI"
diff --git a/e2e/README.MD b/e2e/README.MD
new file mode 100644
index 000000000..e660dc72d
--- /dev/null
+++ b/e2e/README.MD
@@ -0,0 +1,82 @@
+# E2E Framework
+
+The E2E framework uses Kuttl under the hood. Kuttl is a simple and most importantly static tool.
+That means there is no way to dynamically generate manifests.
+The solution is KIK (Kuttl-In-Kuttl)! 
+
+## Kuttl-In-Kuttl
+
+## How does it work
+
+ - Instead of creating a static Kuttl manifest, you can create template. Template extension must be `.yml` otherwise Kuttl starts executing it.
+ - Template is rendered via `envsubst`, so you can use Bash variables for dynamic data injection.
+  - Variables always present
+    - `${KUBECONFIG}`
+    - `${NAMESPACE}`
+    - `${ROOT_DIR}`
+
+    Example template
+```yaml
+apiVersion: infrastructure.cluster.x-k8s.io/v1alpha1
+kind: LinodeMachine
+metadata:
+  ownerReferences:
+  - apiVersion: cluster.x-k8s.io/v1beta1
+    kind: Machine
+    name: machine-sample
+    uid: ${MACHINE_UID}
+  name: linodemachine-sample
+spec:
+  region: us-sea
+  type: g5-nanode-1
+```
+
+ - Helper tools are available, please create a Makefile in your test folder. In this way you can use built in helpers without including any script in the test, plus this file is a good place for test specific helpers.
+
+    Example Makefile
+```makefile
+include ../../Makefile
+```
+
+ - Template is nothing without a runner, please use helpers provided in Makefile to render and run template.
+
+    Example template runner
+```yaml
+apiVersion: kuttl.dev/v1beta1
+kind: TestStep
+commands:
+  - script: |-
+      MACHINE_UID="$(OBJ=machines/machine-sample make getKubeUid)" \
+      TC="$(TPL="$PWD/02-create-linodemachine.tpl.yml" make renderTestCase)" make runTestCase
+```
+
+  - You can run testsuits (which can contain template rendering).
+
+    Example testsuit runner:
+```yaml
+apiVersion: kuttl.dev/v1beta1
+kind: TestStep
+commands:
+  - script: TC="$PWD/testsuit" make runTestCase
+```
+
+  - Test execution order is not guaranteed. If a test depends on another resource it is strongly suggested to create `assert` files to wait for an event. Almost every test depends on CAPI providers, so there is a good chance, you have to create a `00-assert.yaml` in your test folder.
+
+    Example `00-assert.yaml`:
+```yaml
+apiVersion: apps/v1
+kind: Deployment
+metadata:
+  name: capi-controller-manager
+  namespace: capi-system
+status:
+  availableReplicas: 1
+---
+apiVersion: apps/v1
+kind: Deployment
+metadata:
+  name: cluster-api-provider-linode-controller-manager
+  namespace: cluster-api-provider-linode-system
+status:
+  availableReplicas: 1
+```
diff --git a/e2e/basic/cluster/00-assert.yaml b/e2e/basic/cluster/00-assert.yaml
deleted file mode 100644
index e69de29bb..000000000
diff --git a/e2e/basic/machine/00-assert.yaml b/e2e/basic/machine/00-assert.yaml
deleted file mode 100644
index e69de29bb..000000000
diff --git a/e2e/basic/vpc/00-assert.yaml b/e2e/basic/vpc/00-assert.yaml
deleted file mode 100644
index e69de29bb..000000000
diff --git a/e2e/kuttl-config.yaml b/e2e/kuttl-config.yaml
index b06687408..a9abaa602 100644
--- a/e2e/kuttl-config.yaml
+++ b/e2e/kuttl-config.yaml
@@ -1,6 +1,7 @@
 apiVersion: kuttl.dev/v1beta1
 kind: TestSuite
 testDirs:
-- e2e/basic
-kindConfig: e2e/kind-config.yaml
-timeout: 120
+- e2e/linodecluster-controller
+- e2e/linodemachine-controller
+- e2e/linodevpc-controller
+timeout: 300
diff --git a/e2e/linodecluster-controller/minimal/00-assert.yaml b/e2e/linodecluster-controller/minimal/00-assert.yaml
new file mode 100644
index 000000000..4107fd8f0
--- /dev/null
+++ b/e2e/linodecluster-controller/minimal/00-assert.yaml
@@ -0,0 +1,15 @@
+apiVersion: apps/v1
+kind: Deployment
+metadata:
+  name: capi-controller-manager
+  namespace: capi-system
+status:
+  availableReplicas: 1
+---
+apiVersion: apps/v1
+kind: Deployment
+metadata:
+  name: cluster-api-provider-linode-controller-manager
+  namespace: cluster-api-provider-linode-system
+status:
+  availableReplicas: 1
diff --git a/e2e/linodemachine-controller/minimal/00-assert.yaml b/e2e/linodemachine-controller/minimal/00-assert.yaml
new file mode 100644
index 000000000..4107fd8f0
--- /dev/null
+++ b/e2e/linodemachine-controller/minimal/00-assert.yaml
@@ -0,0 +1,15 @@
+apiVersion: apps/v1
+kind: Deployment
+metadata:
+  name: capi-controller-manager
+  namespace: capi-system
+status:
+  availableReplicas: 1
+---
+apiVersion: apps/v1
+kind: Deployment
+metadata:
+  name: cluster-api-provider-linode-controller-manager
+  namespace: cluster-api-provider-linode-system
+status:
+  availableReplicas: 1
diff --git a/e2e/linodemachine-controller/minimal/01-assert.yaml b/e2e/linodemachine-controller/minimal/01-assert.yaml
new file mode 100644
index 000000000..ca3986171
--- /dev/null
+++ b/e2e/linodemachine-controller/minimal/01-assert.yaml
@@ -0,0 +1,17 @@
+apiVersion: cluster.x-k8s.io/v1beta1
+kind: Cluster
+metadata:
+  annotations:
+    cluster.x-k8s.io/paused: "true"
+  name: cluster-sample
+spec:
+  paused: true
+---
+apiVersion: cluster.x-k8s.io/v1beta1
+kind: Machine
+metadata:
+  annotations:
+    cluster.x-k8s.io/paused: "true"
+  name: machine-sample
+spec:
+  clusterName: cluster-sample
diff --git a/e2e/linodemachine-controller/minimal/01-create-cluster.yaml b/e2e/linodemachine-controller/minimal/01-create-cluster.yaml
new file mode 100644
index 000000000..c77670b2f
--- /dev/null
+++ b/e2e/linodemachine-controller/minimal/01-create-cluster.yaml
@@ -0,0 +1,39 @@
+apiVersion: infrastructure.cluster.x-k8s.io/v1alpha1
+kind: LinodeCluster
+metadata:
+  annotations:
+    cluster.x-k8s.io/paused: "true"
+  name: linodecluster-sample
+---
+apiVersion: cluster.x-k8s.io/v1beta1
+kind: Cluster
+metadata:
+  annotations:
+    cluster.x-k8s.io/paused: "true"
+  name: cluster-sample
+spec:
+  paused: true
+  infrastructureRef:
+    name: linodecluster-sample
+---
+apiVersion: cluster.x-k8s.io/v1beta1
+kind: Machine
+metadata:
+  annotations:
+    cluster.x-k8s.io/paused: "true"
+  name: machine-sample
+spec:
+  clusterName: cluster-sample
+  bootstrap:
+    configRef:
+      apiVersion: v1
+      kind: "ConfigMap"
+      name: "boostrap-sample"
+    dataSecretName: bootstrap-data-sample
+---
+apiVersion: v1
+kind: Secret
+metadata:
+  name: bootstrap-data-sample
+data:
+  value: dG91Y2ggL29rCg==
diff --git a/e2e/linodemachine-controller/minimal/02-assert.yaml b/e2e/linodemachine-controller/minimal/02-assert.yaml
new file mode 100644
index 000000000..1cb149503
--- /dev/null
+++ b/e2e/linodemachine-controller/minimal/02-assert.yaml
@@ -0,0 +1,10 @@
+apiVersion: infrastructure.cluster.x-k8s.io/v1alpha1
+kind: LinodeMachine
+metadata:
+  name: linodemachine-sample
+spec:
+  region: us-sea
+  type: g5-nanode-1
+status:
+  ready: true
+  instanceState: running
diff --git a/e2e/linodemachine-controller/minimal/02-create-linodemachine.tpl.yml b/e2e/linodemachine-controller/minimal/02-create-linodemachine.tpl.yml
new file mode 100644
index 000000000..0a4b23b4e
--- /dev/null
+++ b/e2e/linodemachine-controller/minimal/02-create-linodemachine.tpl.yml
@@ -0,0 +1,12 @@
+apiVersion: infrastructure.cluster.x-k8s.io/v1alpha1
+kind: LinodeMachine
+metadata:
+  ownerReferences:
+  - apiVersion: cluster.x-k8s.io/v1beta1
+    kind: Machine
+    name: machine-sample
+    uid: ${MACHINE_UID}
+  name: linodemachine-sample
+spec:
+  region: us-sea
+  type: g5-nanode-1
diff --git a/e2e/linodemachine-controller/minimal/02-create-linodemachine.yaml b/e2e/linodemachine-controller/minimal/02-create-linodemachine.yaml
new file mode 100644
index 000000000..de40c5987
--- /dev/null
+++ b/e2e/linodemachine-controller/minimal/02-create-linodemachine.yaml
@@ -0,0 +1,6 @@
+apiVersion: kuttl.dev/v1beta1
+kind: TestStep
+commands:
+  - script: |-
+      MACHINE_UID="$(OBJ=machines/machine-sample make getKubeUid)" \
+      TC="$(TPL="$PWD/02-create-linodemachine.tpl.yml" make renderTestCase)" make runTestCase
diff --git a/e2e/linodemachine-controller/minimal/03-delete-linodemachine.yaml b/e2e/linodemachine-controller/minimal/03-delete-linodemachine.yaml
new file mode 100644
index 000000000..3bf5e64ad
--- /dev/null
+++ b/e2e/linodemachine-controller/minimal/03-delete-linodemachine.yaml
@@ -0,0 +1,6 @@
+apiVersion: kuttl.dev/v1beta1
+kind: TestStep
+delete:
+- apiVersion: infrastructure.cluster.x-k8s.io/v1alpha1
+  kind: LinodeMachine
+  name: linodemachine-sample
diff --git a/e2e/linodemachine-controller/minimal/03-error.yaml b/e2e/linodemachine-controller/minimal/03-error.yaml
new file mode 100644
index 000000000..4ff1b308e
--- /dev/null
+++ b/e2e/linodemachine-controller/minimal/03-error.yaml
@@ -0,0 +1,4 @@
+apiVersion: infrastructure.cluster.x-k8s.io/v1alpha1
+kind: LinodeMachine
+metadata:
+  name: linodemachine-sample
diff --git a/e2e/linodemachine-controller/minimal/04-verify-linode-instance.yaml b/e2e/linodemachine-controller/minimal/04-verify-linode-instance.yaml
new file mode 100644
index 000000000..4515f8566
--- /dev/null
+++ b/e2e/linodemachine-controller/minimal/04-verify-linode-instance.yaml
@@ -0,0 +1,5 @@
+apiVersion: kuttl.dev/v1beta1
+kind: TestStep
+commands:
+  - script: |-
+      URI="linode/instances" FILTER="{\"tags\":\"$(OBJ=linodemachines/linodemachine-sample make getKubeUid)\"}" make callLinodeApiGet | grep 'results": 0'
diff --git a/e2e/linodemachine-controller/minimal/Makefile b/e2e/linodemachine-controller/minimal/Makefile
new file mode 100644
index 000000000..3924bfdc1
--- /dev/null
+++ b/e2e/linodemachine-controller/minimal/Makefile
@@ -0,0 +1 @@
+include ../../Makefile
diff --git a/e2e/linodevpc-controller/minimal/00-assert.yaml b/e2e/linodevpc-controller/minimal/00-assert.yaml
new file mode 100644
index 000000000..4107fd8f0
--- /dev/null
+++ b/e2e/linodevpc-controller/minimal/00-assert.yaml
@@ -0,0 +1,15 @@
+apiVersion: apps/v1
+kind: Deployment
+metadata:
+  name: capi-controller-manager
+  namespace: capi-system
+status:
+  availableReplicas: 1
+---
+apiVersion: apps/v1
+kind: Deployment
+metadata:
+  name: cluster-api-provider-linode-controller-manager
+  namespace: cluster-api-provider-linode-system
+status:
+  availableReplicas: 1
diff --git a/go.mod b/go.mod
index a81240a93..aa2c033a4 100644
--- a/go.mod
+++ b/go.mod
@@ -6,6 +6,7 @@ toolchain go1.21.5
 
 require (
 	github.com/go-logr/logr v1.4.1
+	github.com/google/uuid v1.3.1
 	github.com/linode/linodego v1.28.0
 	github.com/onsi/ginkgo/v2 v2.15.0
 	github.com/onsi/gomega v1.31.1
@@ -41,7 +42,6 @@ require (
 	github.com/google/go-cmp v0.6.0 // indirect
 	github.com/google/gofuzz v1.2.0 // indirect
 	github.com/google/pprof v0.0.0-20210720184732-4bb14d4b1be1 // indirect
-	github.com/google/uuid v1.3.1 // indirect
 	github.com/imdario/mergo v0.3.13 // indirect
 	github.com/josharian/intern v1.0.0 // indirect
 	github.com/json-iterator/go v1.1.12 // indirect
diff --git a/util/reconciler/defaults.go b/util/reconciler/defaults.go
index 5a13bf0e4..db9722be8 100644
--- a/util/reconciler/defaults.go
+++ b/util/reconciler/defaults.go
@@ -28,6 +28,8 @@ const (
 
 	// DefaultMachineControllerWaitForBootstrapDelay is the default requeue delay if bootstrap data is not ready.
 	DefaultMachineControllerWaitForBootstrapDelay = 5 * time.Second
+	// DefaultMachineControllerLinodeImage default image.
+	DefaultMachineControllerLinodeImage = "linode/ubuntu22.04"
 	// DefaultMachineControllerWaitForRunningDelay is the default requeue delay if instance is not running.
 	DefaultMachineControllerWaitForRunningDelay = 5 * time.Second
 	// DefaultMachineControllerWaitForRunningTimeout is the default timeout if instance is not running.