diff --git a/azure/scope/machinepool.go b/azure/scope/machinepool.go
index c2509749390..dfebca01b84 100644
--- a/azure/scope/machinepool.go
+++ b/azure/scope/machinepool.go
@@ -334,14 +334,18 @@ func (m *MachinePoolScope) applyAzureMachinePoolMachines(ctx context.Context) er
 }
 
 func (m *MachinePoolScope) createMachine(ctx context.Context, machine azure.VMSSVM) error {
+	ctx, _, done := tele.StartSpanWithLogger(ctx, "scope.MachinePoolScope.createMachine")
+	defer done()
+
 	parsed, err := azure2.ParseResourceID(machine.ID)
 	if err != nil {
 		return errors.Wrap(err, fmt.Sprintf("failed to parse resource id %q", machine.ID))
 	}
+	instanceID := strings.ReplaceAll(parsed.ResourceName, "_", "-")
 
 	ampm := infrav1exp.AzureMachinePoolMachine{
 		ObjectMeta: metav1.ObjectMeta{
-			Name:      strings.ReplaceAll(parsed.ResourceName, "_", "-"),
+			Name:      m.AzureMachinePool.Name + "-" + instanceID,
 			Namespace: m.AzureMachinePool.Namespace,
 			OwnerReferences: []metav1.OwnerReference{
 				{