diff --git a/cmd/manager/main.go b/cmd/manager/main.go
index d9e0d9c8..87a47304 100644
--- a/cmd/manager/main.go
+++ b/cmd/manager/main.go
@@ -28,6 +28,7 @@ import (
 	"github.com/openshift/cluster-api-provider-ovirt/pkg/apis"
 	"github.com/openshift/cluster-api-provider-ovirt/pkg/cloud/ovirt"
 	"github.com/openshift/cluster-api-provider-ovirt/pkg/cloud/ovirt/machine"
+	"github.com/openshift/cluster-api-provider-ovirt/pkg/cloud/ovirt/providerIDcontroller"
 
 	clusterapis "github.com/openshift/cluster-api/pkg/apis"
 	"github.com/openshift/cluster-api/pkg/client/clientset_generated/clientset"
@@ -146,6 +147,8 @@ func main() {
 
 	capimachine.AddWithActuator(mgr, machineActuator)
 
+	providerIDcontroller.Add(mgr, manager.Options{})
+
 	if err := mgr.AddReadyzCheck("ping", healthz.Ping); err != nil {
 		klog.Fatal(err)
 	}
diff --git a/go.mod b/go.mod
index d556c6fd..d6596095 100644
--- a/go.mod
+++ b/go.mod
@@ -3,6 +3,7 @@ module github.com/openshift/cluster-api-provider-ovirt
 go 1.12
 
 require (
+	github.com/go-logr/logr v0.1.0
 	github.com/golang/groupcache v0.0.0-20190129154638-5b532d6fd5ef // indirect
 	github.com/openshift/cluster-api v0.0.0-20191030113141-9a3a7bbe9258
 	github.com/ovirt/go-ovirt v0.0.0-20200428093010-9bcc4fd4e6c0
diff --git a/pkg/cloud/ovirt/providerIDcontroller/providerIDController.go b/pkg/cloud/ovirt/providerIDcontroller/providerIDController.go
new file mode 100644
index 00000000..2198217f
--- /dev/null
+++ b/pkg/cloud/ovirt/providerIDcontroller/providerIDController.go
@@ -0,0 +1,146 @@
+package providerIDcontroller
+
+import (
+	"context"
+	"fmt"
+
+	"github.com/go-logr/logr"
+	ovirtsdk "github.com/ovirt/go-ovirt"
+	corev1 "k8s.io/api/core/v1"
+	"k8s.io/apimachinery/pkg/api/errors"
+	"k8s.io/klog/klogr"
+	"sigs.k8s.io/controller-runtime/pkg/client"
+	"sigs.k8s.io/controller-runtime/pkg/controller"
+	"sigs.k8s.io/controller-runtime/pkg/handler"
+	"sigs.k8s.io/controller-runtime/pkg/log"
+	"sigs.k8s.io/controller-runtime/pkg/manager"
+	"sigs.k8s.io/controller-runtime/pkg/reconcile"
+	"sigs.k8s.io/controller-runtime/pkg/source"
+
+	"github.com/openshift/cluster-api-provider-ovirt/pkg/cloud/ovirt/clients"
+)
+
+var _ reconcile.Reconciler = &providerIDReconciler{}
+
+type providerIDReconciler struct {
+	log                  logr.Logger
+	client               client.Client
+	listNodesByFieldFunc func(key, value string) ([]corev1.Node, error)
+	fetchProviderIDFunc  func(string) (string, error)
+	ovirtApi             *ovirtsdk.Connection
+}
+
+func (r *providerIDReconciler) Reconcile(request reconcile.Request) (reconcile.Result, error) {
+	log := r.log.WithValues("node", request.NamespacedName)
+	log.V(3).Info("Reconciling", request.NamespacedName)
+
+	// Fetch the Node instance
+	node := corev1.Node{}
+	err := r.client.Get(context.Background(), request.NamespacedName, &node)
+	if err != nil {
+		if errors.IsNotFound(err) {
+			// Request object not found, could have been deleted after reconcile request.
+			// Owned objects are automatically garbage collected. For additional cleanup logic use finalizers.
+			// Return and don't requeue
+			return reconcile.Result{}, nil
+		}
+		// Error reading the object - requeue the request.
+		return reconcile.Result{}, fmt.Errorf("error getting node: %v", err)
+	}
+
+	if node.Spec.ProviderID != "" {
+		return reconcile.Result{}, nil
+	}
+
+	r.log.Info("spec.ProviderID is empty, fetching from ovirt")
+	id, err := r.fetchProviderIDFunc(node.Name)
+	if err != nil {
+		return reconcile.Result{}, fmt.Errorf("failed getting VM from oVirt: %v", err)
+	}
+
+	node.Spec.ProviderID = fmt.Sprintf("ovirt://%s", id)
+	err = r.client.Update(context.Background(), &node)
+	if err != nil {
+		return reconcile.Result{}, fmt.Errorf("failed updating node %s: %v", node.Name, err)
+	}
+	return reconcile.Result{}, nil
+}
+
+func (r *providerIDReconciler) fetchOvirtVmID(nodeName string) (string, error) {
+	c, err := r.getConnection("openshift-machine-api", "ovirt-credentials")
+	if err != nil {
+		return "", err
+	}
+	send, err := c.SystemService().VmsService().List().Search(fmt.Sprintf("name=%s", nodeName)).Send()
+	if err != nil {
+		r.log.Error(err, "Failed to find VM", "VM name", nodeName)
+		return "", err
+	}
+	vms := send.MustVms().Slice()
+	if len(vms) != 1 {
+		return "", fmt.Errorf("expected to get 1 VM but got %v", len(vms))
+	}
+	return vms[0].MustId(), nil
+}
+
+func Add(mgr manager.Manager, opts manager.Options) error {
+	reconciler, err := NewProviderIDReconciler(mgr)
+
+	if err != nil {
+		return fmt.Errorf("error building reconciler: %v", err)
+	}
+
+	c, err := controller.New("provdierID-controller", mgr, controller.Options{Reconciler: reconciler})
+	if err != nil {
+		return err
+	}
+
+	//Watch node changes
+	err = c.Watch(&source.Kind{Type: &corev1.Node{}}, &handler.EnqueueRequestForObject{})
+	if err != nil {
+		return err
+	}
+
+	return nil
+}
+
+func NewProviderIDReconciler(mgr manager.Manager) (*providerIDReconciler, error) {
+	log.SetLogger(klogr.New())
+	r := providerIDReconciler{
+		log:    log.Log.WithName("controllers").WithName("providerID-reconciler"),
+		client: mgr.GetClient(),
+	}
+	r.fetchProviderIDFunc = r.fetchOvirtVmID
+	return &r, nil
+}
+
+func (r *providerIDReconciler) getConnection(namespace, secretName string) (*ovirtsdk.Connection, error) {
+	var err error
+	if r.ovirtApi == nil || r.ovirtApi.Test() != nil {
+		// session expired or some other error, re-login.
+		r.ovirtApi, err = createApiConnection(r.client, namespace, secretName)
+	}
+	return r.ovirtApi, err
+}
+
+//createApiConnection returns a a client to oVirt's API endpoint
+func createApiConnection(client client.Client, namespace string, secretName string) (*ovirtsdk.Connection, error) {
+	creds, err := clients.GetCredentialsSecret(client, namespace, secretName)
+
+	if err != nil {
+		return nil, fmt.Errorf("failed getting credentials for namespace %s, %s", namespace, err)
+	}
+
+	connection, err := ovirtsdk.NewConnectionBuilder().
+		URL(creds.URL).
+		Username(creds.Username).
+		Password(creds.Password).
+		CAFile(creds.CAFile).
+		Insecure(creds.Insecure).
+		Build()
+	if err != nil {
+		return nil, err
+	}
+
+	return connection, nil
+}
diff --git a/pkg/cloud/ovirt/providerIDcontroller/providerIDController_test.go b/pkg/cloud/ovirt/providerIDcontroller/providerIDController_test.go
new file mode 100644
index 00000000..d8454ad8
--- /dev/null
+++ b/pkg/cloud/ovirt/providerIDcontroller/providerIDController_test.go
@@ -0,0 +1 @@
+package providerIDcontroller