diff --git a/pkg/apis/provisioning/v1alpha1/provisioner.go b/pkg/apis/provisioning/v1alpha1/provisioner.go
index af499a2e1035..add10963cfaf 100644
--- a/pkg/apis/provisioning/v1alpha1/provisioner.go
+++ b/pkg/apis/provisioning/v1alpha1/provisioner.go
@@ -100,9 +100,9 @@ var (
 	OperatingSystemLabelKey = "kubernetes.io/os"
 
 	// Reserved labels
-	ProvisionerNameLabelKey      = SchemeGroupVersion.Group + "/name"
-	ProvisionerNamespaceLabelKey = SchemeGroupVersion.Group + "/namespace"
-	ProvisionerPhaseLabel        = SchemeGroupVersion.Group + "/lifecycle-phase"
+	ProvisionerNameLabelKey          = SchemeGroupVersion.Group + "/name"
+	ProvisionerNamespaceLabelKey     = SchemeGroupVersion.Group + "/namespace"
+	ProvisionerUnderutilizedLabelKey = SchemeGroupVersion.Group + "/underutilized"
 
 	// Reserved annotations
 	ProvisionerTTLKey = SchemeGroupVersion.Group + "/ttl"
@@ -113,9 +113,7 @@ var (
 )
 
 const (
-	ProvisionerUnderutilizedPhase = "underutilized"
-	ProvisionerTerminablePhase    = "terminable"
-	ProvisionerDrainingPhase      = "draining"
+	KarpenterFinalizer = "karpenter.sh/termination"
 )
 
 // Provisioner is the Schema for the Provisioners API
diff --git a/pkg/apis/provisioning/v1alpha1/provisioner_validation.go b/pkg/apis/provisioning/v1alpha1/provisioner_validation.go
index 78f06bafb15d..262015da833b 100644
--- a/pkg/apis/provisioning/v1alpha1/provisioner_validation.go
+++ b/pkg/apis/provisioning/v1alpha1/provisioner_validation.go
@@ -30,7 +30,7 @@ var (
 		OperatingSystemLabelKey,
 		ProvisionerNameLabelKey,
 		ProvisionerNamespaceLabelKey,
-		ProvisionerPhaseLabel,
+		ProvisionerUnderutilizedLabelKey,
 		ProvisionerTTLKey,
 		ZoneLabelKey,
 		InstanceTypeLabelKey,
diff --git a/pkg/apis/provisioning/v1alpha1/provisioner_validation_test.go b/pkg/apis/provisioning/v1alpha1/provisioner_validation_test.go
index 69e6ec3dcd39..0b2269109235 100644
--- a/pkg/apis/provisioning/v1alpha1/provisioner_validation_test.go
+++ b/pkg/apis/provisioning/v1alpha1/provisioner_validation_test.go
@@ -80,7 +80,7 @@ var _ = Describe("Validation", func() {
 				OperatingSystemLabelKey,
 				ProvisionerNameLabelKey,
 				ProvisionerNamespaceLabelKey,
-				ProvisionerPhaseLabel,
+				ProvisionerUnderutilizedLabelKey,
 				ZoneLabelKey,
 				InstanceTypeLabelKey,
 			} {
diff --git a/pkg/cloudprovider/aws/cloudprovider.go b/pkg/cloudprovider/aws/cloudprovider.go
index 5e37ab83fbc6..39df68fbeb32 100644
--- a/pkg/cloudprovider/aws/cloudprovider.go
+++ b/pkg/cloudprovider/aws/cloudprovider.go
@@ -154,8 +154,8 @@ func (c *CloudProvider) GetInstanceTypes(ctx context.Context) ([]cloudprovider.I
 	return c.instanceTypeProvider.Get(ctx)
 }
 
-func (c *CloudProvider) Terminate(ctx context.Context, nodes []*v1.Node) error {
-	return c.instanceProvider.Terminate(ctx, nodes)
+func (c *CloudProvider) Terminate(ctx context.Context, node *v1.Node) error {
+	return c.instanceProvider.Terminate(ctx, node)
 }
 
 // Validate cloud provider specific components of the cluster spec
diff --git a/pkg/cloudprovider/aws/instance.go b/pkg/cloudprovider/aws/instance.go
index d7dbb0cac747..6f005a9a9f46 100644
--- a/pkg/cloudprovider/aws/instance.go
+++ b/pkg/cloudprovider/aws/instance.go
@@ -26,6 +26,7 @@ import (
 
 	"go.uber.org/zap"
 	v1 "k8s.io/api/core/v1"
+	"k8s.io/apimachinery/pkg/api/errors"
 )
 
 type InstanceProvider struct {
@@ -108,31 +109,23 @@ func (p *InstanceProvider) Create(ctx context.Context,
 	return createFleetOutput.Instances[0].InstanceIds[0], nil
 }
 
-func (p *InstanceProvider) Terminate(ctx context.Context, nodes []*v1.Node) error {
-	if len(nodes) == 0 {
-		return nil
-	}
-	ids := p.getInstanceIDs(nodes)
-
-	_, err := p.ec2api.TerminateInstancesWithContext(ctx, &ec2.TerminateInstancesInput{
-		InstanceIds: ids,
-	})
+func (p *InstanceProvider) Terminate(ctx context.Context, node *v1.Node) error {
+	id, err := p.getInstanceID(node)
 	if err != nil {
-		return fmt.Errorf("terminating %d instances, %w", len(ids), err)
+		return fmt.Errorf("getting instance ID for node %s, %w", node.Name, err)
+	}
+	if _, err = p.ec2api.TerminateInstancesWithContext(ctx, &ec2.TerminateInstancesInput{
+		InstanceIds: []*string{id},
+	}); err != nil && !errors.IsNotFound(err) {
+		return fmt.Errorf("terminating instance %s, %w", node.Name, err)
 	}
-
 	return nil
 }
 
-func (p *InstanceProvider) getInstanceIDs(nodes []*v1.Node) []*string {
-	ids := []*string{}
-	for _, node := range nodes {
-		id := strings.Split(node.Spec.ProviderID, "/")
-		if len(id) < 5 {
-			zap.S().Debugf("Continuing after failure to parse instance id, %s has invalid format", node.Name)
-			continue
-		}
-		ids = append(ids, aws.String(id[4]))
+func (p *InstanceProvider) getInstanceID(node *v1.Node) (*string, error) {
+	id := strings.Split(node.Spec.ProviderID, "/")
+	if len(id) < 5 {
+		return nil, fmt.Errorf("parsing instance id %s", node.Spec.ProviderID)
 	}
-	return ids
+	return aws.String(id[4]), nil
 }
diff --git a/pkg/cloudprovider/aws/suite_test.go b/pkg/cloudprovider/aws/suite_test.go
index f502f079f96d..a5d6f2518ac9 100644
--- a/pkg/cloudprovider/aws/suite_test.go
+++ b/pkg/cloudprovider/aws/suite_test.go
@@ -31,6 +31,7 @@ import (
 	"github.com/awslabs/karpenter/pkg/cloudprovider/aws/fake"
 	"github.com/awslabs/karpenter/pkg/cloudprovider/registry"
 	"github.com/awslabs/karpenter/pkg/controllers/provisioning/v1alpha1/allocation"
+
 	"github.com/awslabs/karpenter/pkg/test"
 	. "github.com/onsi/ginkgo"
 	. "github.com/onsi/gomega"
diff --git a/pkg/cloudprovider/fake/cloudprovider.go b/pkg/cloudprovider/fake/cloudprovider.go
index 36667fb04eb2..b5de3f371ad6 100644
--- a/pkg/cloudprovider/fake/cloudprovider.go
+++ b/pkg/cloudprovider/fake/cloudprovider.go
@@ -106,6 +106,6 @@ func (c *CloudProvider) Validate(context.Context, *v1alpha1.Constraints) *apis.F
 	return nil
 }
 
-func (c *CloudProvider) Terminate(context.Context, []*v1.Node) error {
+func (c *CloudProvider) Terminate(ctx context.Context, node *v1.Node) error {
 	return nil
 }
diff --git a/pkg/cloudprovider/types.go b/pkg/cloudprovider/types.go
index 5bb5868e32d7..6df901c132f7 100644
--- a/pkg/cloudprovider/types.go
+++ b/pkg/cloudprovider/types.go
@@ -33,8 +33,8 @@ type CloudProvider interface {
 	GetInstanceTypes(context.Context) ([]InstanceType, error)
 	// Validate is a hook for additional constraint validation logic specific to the cloud provider
 	Validate(context.Context, *v1alpha1.Constraints) *apis.FieldError
-	// Terminate nodes in cloudprovider
-	Terminate(context.Context, []*v1.Node) error
+	// Terminate node in cloudprovider
+	Terminate(context.Context, *v1.Node) error
 }
 
 // Packing is a binpacking solution of equivalently schedulable pods to a set of
diff --git a/pkg/controllers/provisioning/v1alpha1/allocation/bind.go b/pkg/controllers/provisioning/v1alpha1/allocation/bind.go
index ddb21569746a..2d3f44772402 100644
--- a/pkg/controllers/provisioning/v1alpha1/allocation/bind.go
+++ b/pkg/controllers/provisioning/v1alpha1/allocation/bind.go
@@ -18,6 +18,7 @@ import (
 	"context"
 	"fmt"
 
+	"github.com/awslabs/karpenter/pkg/apis/provisioning/v1alpha1"
 	"go.uber.org/zap"
 	v1 "k8s.io/api/core/v1"
 	"k8s.io/apimachinery/pkg/api/errors"
@@ -32,7 +33,9 @@ type Binder struct {
 }
 
 func (b *Binder) Bind(ctx context.Context, node *v1.Node, pods []*v1.Pod) error {
-	// 1. Mark NodeReady=Unknown
+	// 1. Add the Karpenter finalizer to the node to enable the termination workflow
+	node.Finalizers = append(node.Finalizers, v1alpha1.KarpenterFinalizer)
+	// 2. Mark NodeReady=Unknown
 	// Unfortunately, this detail is necessary to prevent kube-scheduler from
 	// scheduling pods to nodes before they're created. Node Lifecycle
 	// Controller will attach a Effect=NoSchedule taint in response to this
@@ -44,7 +47,7 @@ func (b *Binder) Bind(ctx context.Context, node *v1.Node, pods []*v1.Pod) error
 		Type:   v1.NodeReady,
 		Status: v1.ConditionUnknown,
 	}}
-	// 2. Idempotently create a node. In rare cases, nodes can come online and
+	// 3. Idempotently create a node. In rare cases, nodes can come online and
 	// self register before the controller is able to register a node object
 	// with the API server. In the common case, we create the node object
 	// ourselves to enforce the binding decision and enable images to be pulled
@@ -55,7 +58,7 @@ func (b *Binder) Bind(ctx context.Context, node *v1.Node, pods []*v1.Pod) error
 		}
 	}
 
-	// 3. Bind pods
+	// 4. Bind pods
 	for _, pod := range pods {
 		if err := b.bind(ctx, node, pod); err != nil {
 			zap.S().Errorf("Continuing after failing to bind, %s", err.Error())
diff --git a/pkg/controllers/provisioning/v1alpha1/reallocation/controller.go b/pkg/controllers/provisioning/v1alpha1/reallocation/controller.go
index 434a542046b4..15c90c350a3a 100644
--- a/pkg/controllers/provisioning/v1alpha1/reallocation/controller.go
+++ b/pkg/controllers/provisioning/v1alpha1/reallocation/controller.go
@@ -77,8 +77,8 @@ func (c *Controller) Reconcile(ctx context.Context, object client.Object) (recon
 		return reconcile.Result{}, fmt.Errorf("removing ttl from node, %w", err)
 	}
 
-	// 3. Mark any Node past TTL as expired
-	if err := c.utilization.markTerminable(ctx, provisioner); err != nil {
+	// 3. Delete any node past its TTL
+	if err := c.utilization.terminateExpired(ctx, provisioner); err != nil {
 		return reconcile.Result{}, fmt.Errorf("marking nodes terminable, %w", err)
 	}
 	return reconcile.Result{}, nil
diff --git a/pkg/controllers/provisioning/v1alpha1/reallocation/suite_test.go b/pkg/controllers/provisioning/v1alpha1/reallocation/suite_test.go
index a016d04373a1..79f8289a55da 100644
--- a/pkg/controllers/provisioning/v1alpha1/reallocation/suite_test.go
+++ b/pkg/controllers/provisioning/v1alpha1/reallocation/suite_test.go
@@ -95,15 +95,15 @@ var _ = Describe("Reallocation", func() {
 
 			updatedNode := &v1.Node{}
 			Expect(env.Client.Get(ctx, client.ObjectKey{Name: node.Name}, updatedNode)).To(Succeed())
-			Expect(updatedNode.Labels).To(HaveKeyWithValue(v1alpha1.ProvisionerPhaseLabel, v1alpha1.ProvisionerUnderutilizedPhase))
+			Expect(updatedNode.Labels).To(HaveKey(v1alpha1.ProvisionerUnderutilizedLabelKey))
 			Expect(updatedNode.Annotations).To(HaveKey(v1alpha1.ProvisionerTTLKey))
 		})
 		It("should remove labels from utilized nodes", func() {
 			node := test.NodeWith(test.NodeOptions{
 				Labels: map[string]string{
-					v1alpha1.ProvisionerNameLabelKey:      provisioner.Name,
-					v1alpha1.ProvisionerNamespaceLabelKey: provisioner.Namespace,
-					v1alpha1.ProvisionerPhaseLabel:        v1alpha1.ProvisionerUnderutilizedPhase,
+					v1alpha1.ProvisionerNameLabelKey:          provisioner.Name,
+					v1alpha1.ProvisionerNamespaceLabelKey:     provisioner.Namespace,
+					v1alpha1.ProvisionerUnderutilizedLabelKey: "true",
 				},
 				Annotations: map[string]string{
 					v1alpha1.ProvisionerTTLKey: time.Now().Add(time.Duration(100) * time.Second).Format(time.RFC3339),
@@ -124,7 +124,7 @@ var _ = Describe("Reallocation", func() {
 
 			updatedNode := &v1.Node{}
 			Expect(env.Client.Get(ctx, client.ObjectKey{Name: node.Name}, updatedNode)).To(Succeed())
-			Expect(updatedNode.Labels).ToNot(HaveKey(v1alpha1.ProvisionerPhaseLabel))
+			Expect(updatedNode.Labels).ToNot(HaveKey(v1alpha1.ProvisionerUnderutilizedLabelKey))
 			Expect(updatedNode.Annotations).ToNot(HaveKey(v1alpha1.ProvisionerTTLKey))
 		})
 	})
diff --git a/pkg/controllers/provisioning/v1alpha1/reallocation/utilization.go b/pkg/controllers/provisioning/v1alpha1/reallocation/utilization.go
index 995b8b360bbb..97aee73e4b95 100644
--- a/pkg/controllers/provisioning/v1alpha1/reallocation/utilization.go
+++ b/pkg/controllers/provisioning/v1alpha1/reallocation/utilization.go
@@ -44,7 +44,7 @@ func (u *Utilization) Reconcile(ctx context.Context, provisioner *v1alpha1.Provi
 	}
 
 	// 3. Mark any Node past TTL as expired
-	if err := u.markTerminable(ctx, provisioner); err != nil {
+	if err := u.terminateExpired(ctx, provisioner); err != nil {
 		return fmt.Errorf("marking nodes terminable, %w", err)
 	}
 	return nil
@@ -77,7 +77,7 @@ func (u *Utilization) markUnderutilized(ctx context.Context, provisioner *v1alph
 		persisted := node.DeepCopy()
 		node.Labels = functional.UnionStringMaps(
 			node.Labels,
-			map[string]string{v1alpha1.ProvisionerPhaseLabel: v1alpha1.ProvisionerUnderutilizedPhase},
+			map[string]string{v1alpha1.ProvisionerUnderutilizedLabelKey: "true"},
 		)
 		node.Annotations = functional.UnionStringMaps(
 			node.Annotations,
@@ -94,9 +94,7 @@ func (u *Utilization) markUnderutilized(ctx context.Context, provisioner *v1alph
 // clearUnderutilized removes the TTL on underutilized nodes if there is sufficient resource usage
 func (u *Utilization) clearUnderutilized(ctx context.Context, provisioner *v1alpha1.Provisioner) error {
 	// 1. Get underutilized nodes
-	nodes, err := u.getNodes(ctx, provisioner, map[string]string{
-		v1alpha1.ProvisionerPhaseLabel: v1alpha1.ProvisionerUnderutilizedPhase,
-	})
+	nodes, err := u.getNodes(ctx, provisioner, map[string]string{v1alpha1.ProvisionerUnderutilizedLabelKey: "true"})
 	if err != nil {
 		return fmt.Errorf("listing labeled underutilized nodes, %w", err)
 	}
@@ -110,7 +108,7 @@ func (u *Utilization) clearUnderutilized(ctx context.Context, provisioner *v1alp
 
 		if !utilsnode.IsUnderutilized(node, pods) {
 			persisted := node.DeepCopy()
-			delete(node.Labels, v1alpha1.ProvisionerPhaseLabel)
+			delete(node.Labels, v1alpha1.ProvisionerUnderutilizedLabelKey)
 			delete(node.Annotations, v1alpha1.ProvisionerTTLKey)
 			if err := u.kubeClient.Patch(ctx, node, client.MergeFrom(persisted)); err != nil {
 				zap.S().Debugf("Could not remove underutilized labels on node %s, %w", node.Name, err)
@@ -122,24 +120,19 @@ func (u *Utilization) clearUnderutilized(ctx context.Context, provisioner *v1alp
 	return nil
 }
 
-// markTerminable checks if a node is past its ttl and marks it
-func (u *Utilization) markTerminable(ctx context.Context, provisioner *v1alpha1.Provisioner) error {
+// terminateExpired checks if a node is past its ttl and marks it
+func (u *Utilization) terminateExpired(ctx context.Context, provisioner *v1alpha1.Provisioner) error {
 	// 1. Get underutilized nodes
-	nodes, err := u.getNodes(ctx, provisioner, map[string]string{v1alpha1.ProvisionerPhaseLabel: "underutilized"})
+	nodes, err := u.getNodes(ctx, provisioner, map[string]string{v1alpha1.ProvisionerUnderutilizedLabelKey: "true"})
 	if err != nil {
 		return fmt.Errorf("listing underutilized nodes, %w", err)
 	}
 
-	// 2. Check if node is past TTL
+	// 2. Delete node if past TTL
 	for _, node := range nodes {
 		if utilsnode.IsPastTTL(node) {
-			persisted := node.DeepCopy()
-			node.Labels = functional.UnionStringMaps(
-				node.Labels,
-				map[string]string{v1alpha1.ProvisionerPhaseLabel: v1alpha1.ProvisionerTerminablePhase},
-			)
-			if err := u.kubeClient.Patch(ctx, node, client.MergeFrom(persisted)); err != nil {
-				return fmt.Errorf("patching node %s, %w", node.Name, err)
+			if err := u.kubeClient.Delete(ctx, node); err != nil {
+				return fmt.Errorf("sending delete for node %s, %w", node.Name, err)
 			}
 		}
 	}
diff --git a/pkg/controllers/terminating/v1alpha1/controller.go b/pkg/controllers/terminating/v1alpha1/controller.go
index 3ea268551d91..3b5f6590064b 100644
--- a/pkg/controllers/terminating/v1alpha1/controller.go
+++ b/pkg/controllers/terminating/v1alpha1/controller.go
@@ -19,7 +19,9 @@ import (
 	"fmt"
 	"time"
 
+	provisioning "github.com/awslabs/karpenter/pkg/apis/provisioning/v1alpha1"
 	"github.com/awslabs/karpenter/pkg/cloudprovider"
+	"github.com/awslabs/karpenter/pkg/utils/functional"
 
 	v1 "k8s.io/api/core/v1"
 	corev1 "k8s.io/client-go/kubernetes/typed/core/v1"
@@ -63,18 +65,29 @@ func NewController(kubeClient client.Client, coreV1Client corev1.CoreV1Interface
 	}
 }
 
-// Reconcile executes a reallocation control loop for the resource
+// Reconcile executes a termination control loop for the resource
 func (c *Controller) Reconcile(ctx context.Context, object client.Object) (reconcile.Result, error) {
-	// 1. Cordon terminable nodes
-	if err := c.terminator.cordonNodes(ctx); err != nil {
-		return reconcile.Result{}, fmt.Errorf("cordoning terminable nodes, %w", err)
+	node := object.(*v1.Node)
+	// 1. Check if node is terminable
+	if node.DeletionTimestamp == nil || !functional.ContainsString(node.Finalizers, provisioning.KarpenterFinalizer) {
+		return reconcile.Result{}, nil
 	}
-
-	// 2. Drain and delete nodes
-	if err := c.terminator.terminateNodes(ctx); err != nil {
-		return reconcile.Result{}, fmt.Errorf("terminating nodes, %w", err)
+	// 2. Cordon node
+	if err := c.terminator.cordonNode(ctx, node); err != nil {
+		return reconcile.Result{}, fmt.Errorf("cordoning node %s, %w", node.Name, err)
+	}
+	// 3. Drain node
+	drained, err := c.terminator.drainNode(ctx, node)
+	if err != nil {
+		return reconcile.Result{}, fmt.Errorf("draining node %s, %w", node.Name, err)
+	}
+	// 4. If fully drained, terminate the node
+	if drained {
+		if err := c.terminator.terminateNode(ctx, node); err != nil {
+			return reconcile.Result{}, fmt.Errorf("terminating nodes, %w", err)
+		}
 	}
-	return reconcile.Result{}, nil
+	return reconcile.Result{Requeue: !drained}, nil
 }
 
 func (c *Controller) Watches(context.Context) (source.Source, handler.EventHandler, builder.WatchesOption) {
diff --git a/pkg/controllers/terminating/v1alpha1/suite_test.go b/pkg/controllers/terminating/v1alpha1/suite_test.go
index 63d43a270f19..00fca6fccc43 100644
--- a/pkg/controllers/terminating/v1alpha1/suite_test.go
+++ b/pkg/controllers/terminating/v1alpha1/suite_test.go
@@ -15,16 +15,13 @@ limitations under the License.
 package v1alpha1
 
 import (
-	"strings"
+	"context"
 	"testing"
-	"time"
 
-	"github.com/Pallinder/go-randomdata"
 	"github.com/awslabs/karpenter/pkg/apis/provisioning/v1alpha1"
 	"github.com/awslabs/karpenter/pkg/cloudprovider/fake"
 	"github.com/awslabs/karpenter/pkg/cloudprovider/registry"
 	"github.com/awslabs/karpenter/pkg/test"
-	metav1 "k8s.io/apimachinery/pkg/apis/meta/v1"
 	corev1 "k8s.io/client-go/kubernetes/typed/core/v1"
 
 	. "github.com/awslabs/karpenter/pkg/test/expectations"
@@ -58,18 +55,9 @@ var _ = AfterSuite(func() {
 })
 
 var _ = Describe("Reallocation", func() {
-	var provisioner *v1alpha1.Provisioner
-
+	var ctx context.Context
 	BeforeEach(func() {
-		// Create Provisioner to give some time for the node to reconcile
-		provisioner = &v1alpha1.Provisioner{
-			ObjectMeta: metav1.ObjectMeta{Name: strings.ToLower(randomdata.SillyName()),
-				Namespace: "default",
-			},
-			Spec: v1alpha1.ProvisionerSpec{
-				Cluster: &v1alpha1.ClusterSpec{Name: "test-cluster", Endpoint: "http://test-cluster", CABundle: "dGVzdC1jbHVzdGVyCg=="},
-			},
-		}
+		ctx = context.Background()
 	})
 
 	AfterEach(func() {
@@ -77,19 +65,16 @@ var _ = Describe("Reallocation", func() {
 	})
 
 	Context("Reconciliation", func() {
-		It("should terminate nodes marked terminable", func() {
+		It("should terminate deleted nodes", func() {
 			node := test.NodeWith(test.NodeOptions{
+				Finalizers: []string{v1alpha1.KarpenterFinalizer},
 				Labels: map[string]string{
-					v1alpha1.ProvisionerNameLabelKey:      provisioner.Name,
-					v1alpha1.ProvisionerNamespaceLabelKey: provisioner.Namespace,
-					v1alpha1.ProvisionerPhaseLabel:        v1alpha1.ProvisionerTerminablePhase,
-				},
-				Annotations: map[string]string{
-					v1alpha1.ProvisionerTTLKey: time.Now().Add(time.Duration(-100) * time.Second).Format(time.RFC3339),
+					v1alpha1.ProvisionerNameLabelKey:      "default",
+					v1alpha1.ProvisionerNamespaceLabelKey: "default",
 				},
 			})
 			ExpectCreatedWithStatus(env.Client, node)
-			ExpectCreated(env.Client, provisioner)
+			Expect(env.Client.Delete(ctx, node)).To(Succeed())
 			ExpectNotFound(env.Client, node)
 		})
 	})
diff --git a/pkg/controllers/terminating/v1alpha1/terminate.go b/pkg/controllers/terminating/v1alpha1/terminate.go
index cf83997975ca..1146456e0339 100644
--- a/pkg/controllers/terminating/v1alpha1/terminate.go
+++ b/pkg/controllers/terminating/v1alpha1/terminate.go
@@ -38,105 +38,61 @@ type Terminator struct {
 	coreV1Client  corev1.CoreV1Interface
 }
 
-// cordonNodes takes in a list of expired nodes as input and cordons them
-func (t *Terminator) cordonNodes(ctx context.Context) error {
-	// 1. Get terminable nodes
-	nodeList, err := t.getLabeledNodes(ctx, provisioning.ProvisionerTerminablePhase)
-	if err != nil {
-		return err
+// cordonNode cordons a node
+func (t *Terminator) cordonNode(ctx context.Context, node *v1.Node) error {
+	if node.Spec.Unschedulable {
+		return nil
 	}
-	// 2. Cordon nodes
-	for _, node := range nodeList {
-		persisted := node.DeepCopy()
-		node.Spec.Unschedulable = true
-		node.Labels = functional.UnionStringMaps(
-			node.Labels,
-			map[string]string{provisioning.ProvisionerPhaseLabel: provisioning.ProvisionerDrainingPhase},
-		)
-		if err := t.kubeClient.Patch(ctx, node, client.MergeFrom(persisted)); err != nil {
-			return fmt.Errorf("patching node %s, %w", node.Name, err)
-		}
-		zap.S().Debugf("Cordoned node %s", node.Name)
+	persisted := node.DeepCopy()
+	node.Spec.Unschedulable = true
+	if err := t.kubeClient.Patch(ctx, node, client.MergeFrom(persisted)); err != nil {
+		return fmt.Errorf("patching node %s, %w", node.Name, err)
 	}
+	zap.S().Debugf("Cordoned node %s", node.Name)
 	return nil
 }
 
-// terminateNodes takes in a list of expired non-drained nodes and calls drain on them
-func (t *Terminator) terminateNodes(ctx context.Context) error {
-	// 1. Get draining nodes
-	draining, err := t.getLabeledNodes(ctx, provisioning.ProvisionerDrainingPhase)
+// drainNode evicts pods from the node and returns true when fully drained
+func (t *Terminator) drainNode(ctx context.Context, node *v1.Node) (bool, error) {
+	// 1. Get pods on node
+	pods, err := t.getPods(ctx, node)
 	if err != nil {
-		return fmt.Errorf("listing draining nodes, %w", err)
+		return false, fmt.Errorf("listing pods for node %s, %w", node.Name, err)
 	}
-	// 2. Drain nodes
-	drained := []*v1.Node{}
-	for _, node := range draining {
-		// TODO: Check if Node should be drained
-		// - Disrupts PDB
-		// - Pods owned by controller object
-		// - Pod on Node can't be rescheduled elsewhere
-
-		// 2a. Get pods on node
-		pods, err := t.getPods(ctx, node)
-		if err != nil {
-			return fmt.Errorf("listing pods for node %s, %w", node.Name, err)
-		}
-		// 2b. Evict pods on node
-		empty := true
-		for _, p := range pods {
-			if !pod.IsOwnedByDaemonSet(p) {
-				empty = false
-				if err := t.coreV1Client.Pods(p.Namespace).Evict(ctx, &v1beta1.Eviction{
-					ObjectMeta: metav1.ObjectMeta{
-						Name: p.Name,
-					},
-				}); err != nil {
-					zap.S().Debugf("Continuing after failing to evict pods from node %s, %s", node.Name, err.Error())
-				}
+	// 2. Evict pods on node
+	empty := true
+	for _, p := range pods {
+		if !pod.IsOwnedByDaemonSet(p) {
+			empty = false
+			if err := t.coreV1Client.Pods(p.Namespace).Evict(ctx, &v1beta1.Eviction{
+				ObjectMeta: metav1.ObjectMeta{
+					Name: p.Name,
+				},
+			}); err != nil {
+				zap.S().Debugf("Continuing after failing to evict pods from node %s, %s", node.Name, err.Error())
 			}
 		}
-		// 2c. If node is empty, add to list of nodes to delete
-		if empty {
-			drained = append(drained, node)
-		}
-	}
-	// 3. Delete empty nodes
-	if err := t.deleteNodes(ctx, drained); err != nil {
-		return fmt.Errorf("deleting %d nodes, %w", len(drained), err)
 	}
-	return nil
+	return empty, nil
 }
 
-// deleteNode uses a cloudprovider-specific delete to delete a set of nodes
-func (t *Terminator) deleteNodes(ctx context.Context, nodes []*v1.Node) error {
-	// 1. Delete node in cloudprovider's instanceprovider
-	if err := t.cloudProvider.Terminate(ctx, nodes); err != nil {
+// terminateNode terminates the node then removes the finalizer to delete the node
+func (t *Terminator) terminateNode(ctx context.Context, node *v1.Node) error {
+	// 1. Terminate instance associated with node
+	if err := t.cloudProvider.Terminate(ctx, node); err != nil {
 		return fmt.Errorf("terminating cloudprovider instance, %w", err)
 	}
-	// 2. Delete node in APIServer
-	for _, node := range nodes {
-		if err := t.kubeClient.Delete(ctx, node); err != nil {
-			zap.S().Debugf("Continuing after failing to delete node %s, %s", node.Name, err.Error())
-		}
-		zap.S().Infof("Terminated node %s", node.Name)
+	zap.S().Infof("Terminated instance %s", node.Name)
+	// 2. Remove finalizer from node in APIServer
+	persisted := node.DeepCopy()
+	node.Finalizers = functional.StringSliceWithout(node.Finalizers, provisioning.KarpenterFinalizer)
+	if err := t.kubeClient.Patch(ctx, node, client.MergeFrom(persisted)); err != nil {
+		return fmt.Errorf("removing finalizer from node %s, %w", node.Name, err)
 	}
+	zap.S().Debugf("Deleted node %s", node.Name)
 	return nil
 }
 
-// getLabeledNodes returns a list of nodes with the provisioner's labels and given labels
-func (t *Terminator) getLabeledNodes(ctx context.Context, phaseLabel string) ([]*v1.Node, error) {
-	nodes := &v1.NodeList{}
-	if err := t.kubeClient.List(ctx, nodes, client.HasLabels([]string{
-		provisioning.ProvisionerNameLabelKey,
-		provisioning.ProvisionerNamespaceLabelKey,
-	}), client.MatchingLabels(map[string]string{
-		provisioning.ProvisionerPhaseLabel: phaseLabel,
-	})); err != nil {
-		return nil, fmt.Errorf("listing nodes, %w", err)
-	}
-	return ptr.NodeListToSlice(nodes), nil
-}
-
 // getPods returns a list of pods scheduled to a node
 func (t *Terminator) getPods(ctx context.Context, node *v1.Node) ([]*v1.Pod, error) {
 	pods := &v1.PodList{}
diff --git a/pkg/test/expectations/expectations.go b/pkg/test/expectations/expectations.go
index 3f370ba69f47..6c41c1c2a816 100644
--- a/pkg/test/expectations/expectations.go
+++ b/pkg/test/expectations/expectations.go
@@ -22,10 +22,12 @@ import (
 	"github.com/awslabs/karpenter/pkg/apis/provisioning/v1alpha1"
 	"github.com/awslabs/karpenter/pkg/utils/conditions"
 	"github.com/awslabs/karpenter/pkg/utils/log"
+
 	. "github.com/onsi/gomega"
 	v1 "k8s.io/api/core/v1"
 	"k8s.io/apimachinery/pkg/api/errors"
 	"k8s.io/apimachinery/pkg/types"
+	"knative.dev/pkg/ptr"
 	"sigs.k8s.io/controller-runtime/pkg/client"
 )
 
@@ -74,9 +76,19 @@ func ExpectCreatedWithStatus(c client.Client, objects ...client.Object) {
 	}
 }
 
+func ExpectDeletedNode(c client.Client, n *v1.Node) {
+	persisted := n.DeepCopy()
+	n.Finalizers = []string{}
+	Expect(c.Patch(context.Background(), n, client.MergeFrom(persisted))).To(Succeed())
+	ExpectDeleted(c, n)
+}
+
 func ExpectDeleted(c client.Client, objects ...client.Object) {
 	for _, object := range objects {
-		Expect(c.Delete(context.Background(), object)).To(Succeed())
+		Expect(c.Delete(context.Background(), object, &client.DeleteOptions{GracePeriodSeconds: ptr.Int64(0)})).To(Succeed())
+	}
+	for _, object := range objects {
+		ExpectNotFound(c, object)
 	}
 }
 
@@ -110,7 +122,7 @@ func ExpectCleanedUp(c client.Client) {
 	nodes := v1.NodeList{}
 	Expect(c.List(ctx, &nodes)).To(Succeed())
 	for _, node := range nodes.Items {
-		ExpectDeleted(c, &node)
+		ExpectDeletedNode(c, &node)
 	}
 	provisioners := v1alpha1.ProvisionerList{}
 	Expect(c.List(ctx, &provisioners)).To(Succeed())
diff --git a/pkg/test/nodes.go b/pkg/test/nodes.go
index ef581c4241b1..de4c3498901d 100644
--- a/pkg/test/nodes.go
+++ b/pkg/test/nodes.go
@@ -29,6 +29,7 @@ type NodeOptions struct {
 	ReadyStatus   v1.ConditionStatus
 	Unschedulable bool
 	Allocatable   v1.ResourceList
+	Finalizers    []string
 }
 
 func NodeWith(options NodeOptions) *v1.Node {
@@ -44,12 +45,16 @@ func NodeWith(options NodeOptions) *v1.Node {
 	if options.Annotations == nil {
 		options.Annotations = map[string]string{}
 	}
+	if options.Finalizers == nil {
+		options.Finalizers = []string{}
+	}
 
 	return &v1.Node{
 		ObjectMeta: metav1.ObjectMeta{
 			Name:        options.Name,
 			Labels:      options.Labels,
 			Annotations: options.Annotations,
+			Finalizers:  options.Finalizers,
 		},
 		Spec: v1.NodeSpec{
 			Unschedulable: options.Unschedulable,
diff --git a/pkg/utils/functional/functional.go b/pkg/utils/functional/functional.go
index 9a27d8e45b3a..d71c711c7521 100644
--- a/pkg/utils/functional/functional.go
+++ b/pkg/utils/functional/functional.go
@@ -31,6 +31,17 @@ func UnionStringMaps(maps ...map[string]string) map[string]string {
 	return result
 }
 
+func StringSliceWithout(vals []string, remove string) []string {
+	without := []string{}
+	for _, val := range vals {
+		if val == remove {
+			continue
+		}
+		without = append(without, val)
+	}
+	return without
+}
+
 // IntersectStringSlice takes the intersection of all string slices
 func IntersectStringSlice(slices ...[]string) []string {
 	// count occurrences
diff --git a/pkg/utils/node/predicates.go b/pkg/utils/node/predicates.go
index bf86d616809f..9057094370f8 100644
--- a/pkg/utils/node/predicates.go
+++ b/pkg/utils/node/predicates.go
@@ -15,10 +15,11 @@ limitations under the License.
 package node
 
 import (
+	"time"
+
 	"github.com/awslabs/karpenter/pkg/apis/provisioning/v1alpha1"
 	"github.com/awslabs/karpenter/pkg/utils/pod"
 	v1 "k8s.io/api/core/v1"
-	"time"
 )
 
 func IsReadyAndSchedulable(node v1.Node) bool {