diff --git a/pkg/controllers/controllers.go b/pkg/controllers/controllers.go
index ffc0872dc924..350a1cc7b484 100644
--- a/pkg/controllers/controllers.go
+++ b/pkg/controllers/controllers.go
@@ -85,7 +85,7 @@ func NewControllers(
 		nodeclassstatus.NewController(kubeClient, subnetProvider, securityGroupProvider, amiProvider, instanceProfileProvider, launchTemplateProvider),
 		nodeclasstermination.NewController(kubeClient, recorder, instanceProfileProvider, launchTemplateProvider),
 		nodeclaimgarbagecollection.NewController(kubeClient, cloudProvider),
-		nodeclaimtagging.NewController(kubeClient, instanceProvider),
+		nodeclaimtagging.NewController(kubeClient, cloudProvider, instanceProvider),
 		controllerspricing.NewController(pricingProvider),
 		controllersinstancetype.NewController(instanceTypeProvider),
 		controllersinstancetypecapacity.NewController(kubeClient, cloudProvider, instanceTypeProvider),
diff --git a/pkg/controllers/nodeclaim/tagging/controller.go b/pkg/controllers/nodeclaim/tagging/controller.go
index 6c3294a810e5..383cfa0bf985 100644
--- a/pkg/controllers/nodeclaim/tagging/controller.go
+++ b/pkg/controllers/nodeclaim/tagging/controller.go
@@ -21,6 +21,7 @@ import (
 
 	"k8s.io/apimachinery/pkg/api/equality"
 	controllerruntime "sigs.k8s.io/controller-runtime"
+	"sigs.k8s.io/controller-runtime/pkg/builder"
 	"sigs.k8s.io/controller-runtime/pkg/client"
 	"sigs.k8s.io/controller-runtime/pkg/controller"
 	"sigs.k8s.io/controller-runtime/pkg/log"
@@ -28,6 +29,7 @@ import (
 	"sigs.k8s.io/controller-runtime/pkg/predicate"
 	"sigs.k8s.io/controller-runtime/pkg/reconcile"
 	"sigs.k8s.io/karpenter/pkg/operator/injection"
+	"sigs.k8s.io/karpenter/pkg/utils/nodeclaim"
 
 	"github.com/samber/lo"
 
@@ -44,12 +46,14 @@ import (
 
 type Controller struct {
 	kubeClient       client.Client
+	cloudProvider    cloudprovider.CloudProvider
 	instanceProvider instance.Provider
 }
 
-func NewController(kubeClient client.Client, instanceProvider instance.Provider) *Controller {
+func NewController(kubeClient client.Client, cloudProvider cloudprovider.CloudProvider, instanceProvider instance.Provider) *Controller {
 	return &Controller{
 		kubeClient:       kubeClient,
+		cloudProvider:    cloudProvider,
 		instanceProvider: instanceProvider,
 	}
 }
@@ -86,7 +90,7 @@ func (c *Controller) Reconcile(ctx context.Context, nodeClaim *karpv1.NodeClaim)
 func (c *Controller) Register(_ context.Context, m manager.Manager) error {
 	return controllerruntime.NewControllerManagedBy(m).
 		Named("nodeclaim.tagging").
-		For(&karpv1.NodeClaim{}).
+		For(&karpv1.NodeClaim{}, builder.WithPredicates(nodeclaim.IsManagedPredicateFuncs(c.cloudProvider))).
 		WithEventFilter(predicate.NewPredicateFuncs(func(o client.Object) bool {
 			return isTaggable(o.(*karpv1.NodeClaim))
 		})).
diff --git a/pkg/controllers/nodeclaim/tagging/suite_test.go b/pkg/controllers/nodeclaim/tagging/suite_test.go
index 5039f4d86ae2..5f284108543f 100644
--- a/pkg/controllers/nodeclaim/tagging/suite_test.go
+++ b/pkg/controllers/nodeclaim/tagging/suite_test.go
@@ -19,17 +19,20 @@ import (
 	"fmt"
 	"testing"
 
+	"sigs.k8s.io/karpenter/pkg/events"
 	"sigs.k8s.io/karpenter/pkg/test/v1alpha1"
 
 	"github.com/aws/aws-sdk-go-v2/aws"
 	ec2types "github.com/aws/aws-sdk-go-v2/service/ec2/types"
 	"github.com/samber/lo"
 	corev1 "k8s.io/apimachinery/pkg/apis/meta/v1"
+	"k8s.io/client-go/tools/record"
 	karpv1 "sigs.k8s.io/karpenter/pkg/apis/v1"
 	coretest "sigs.k8s.io/karpenter/pkg/test"
 
 	"github.com/aws/karpenter-provider-aws/pkg/apis"
 	v1 "github.com/aws/karpenter-provider-aws/pkg/apis/v1"
+	"github.com/aws/karpenter-provider-aws/pkg/cloudprovider"
 	"github.com/aws/karpenter-provider-aws/pkg/controllers/nodeclaim/tagging"
 	"github.com/aws/karpenter-provider-aws/pkg/fake"
 	"github.com/aws/karpenter-provider-aws/pkg/operator/options"
@@ -60,7 +63,9 @@ var _ = BeforeSuite(func() {
 	ctx = coreoptions.ToContext(ctx, coretest.Options())
 	ctx = options.ToContext(ctx, test.Options())
 	awsEnv = test.NewEnvironment(ctx, env)
-	taggingController = tagging.NewController(env.Client, awsEnv.InstanceProvider)
+	cloudProvider := cloudprovider.New(awsEnv.InstanceTypesProvider, awsEnv.InstanceProvider, events.NewRecorder(&record.FakeRecorder{}),
+		env.Client, awsEnv.AMIProvider, awsEnv.SecurityGroupProvider)
+	taggingController = tagging.NewController(env.Client, cloudProvider, awsEnv.InstanceProvider)
 })
 var _ = AfterSuite(func() {
 	Expect(env.Stop()).To(Succeed(), "Failed to stop environment")