diff --git a/cloud/scope/load_balancer_reconciler.go b/cloud/scope/load_balancer_reconciler.go
index ffad11b2..5aeba192 100644
--- a/cloud/scope/load_balancer_reconciler.go
+++ b/cloud/scope/load_balancer_reconciler.go
@@ -37,6 +37,9 @@ func (s *ClusterScope) ReconcileApiServerLB(ctx context.Context) error {
 		return err
 	}
 	if lb != nil {
+		if lb.LifecycleState != loadbalancer.LoadBalancerLifecycleStateActive {
+			return errors.New(fmt.Sprintf("load balancer is in %s state. Waiting for ACTIVE state.", lb.LifecycleState))
+		}
 		lbIP, err := s.getLoadbalancerIp(*lb)
 		if err != nil {
 			return err
diff --git a/cloud/scope/load_balancer_reconciler_test.go b/cloud/scope/load_balancer_reconciler_test.go
index 929ecc6f..6804d946 100644
--- a/cloud/scope/load_balancer_reconciler_test.go
+++ b/cloud/scope/load_balancer_reconciler_test.go
@@ -97,11 +97,12 @@ func TestLBReconciliation(t *testing.T) {
 				})).
 					Return(loadbalancer.GetLoadBalancerResponse{
 						LoadBalancer: loadbalancer.LoadBalancer{
-							Id:           common.String("lb-id"),
-							FreeformTags: tags,
-							DefinedTags:  make(map[string]map[string]interface{}),
-							IsPrivate:    common.Bool(false),
-							DisplayName:  common.String(fmt.Sprintf("%s-%s", "cluster", "apiserver")),
+							Id:             common.String("lb-id"),
+							LifecycleState: loadbalancer.LoadBalancerLifecycleStateActive,
+							FreeformTags:   tags,
+							DefinedTags:    make(map[string]map[string]interface{}),
+							IsPrivate:      common.Bool(false),
+							DisplayName:    common.String(fmt.Sprintf("%s-%s", "cluster", "apiserver")),
 							IpAddresses: []loadbalancer.IpAddress{
 								{
 									IpAddress: common.String("2.2.2.2"),
@@ -123,11 +124,12 @@ func TestLBReconciliation(t *testing.T) {
 				})).
 					Return(loadbalancer.GetLoadBalancerResponse{
 						LoadBalancer: loadbalancer.LoadBalancer{
-							Id:           common.String("lb-id"),
-							FreeformTags: tags,
-							DefinedTags:  make(map[string]map[string]interface{}),
-							IsPrivate:    common.Bool(false),
-							DisplayName:  common.String(fmt.Sprintf("%s-%s", "cluster", "apiserver")),
+							Id:             common.String("lb-id"),
+							LifecycleState: loadbalancer.LoadBalancerLifecycleStateActive,
+							FreeformTags:   tags,
+							DefinedTags:    make(map[string]map[string]interface{}),
+							IsPrivate:      common.Bool(false),
+							DisplayName:    common.String(fmt.Sprintf("%s-%s", "cluster", "apiserver")),
 						},
 					}, nil)
 			},
@@ -143,11 +145,12 @@ func TestLBReconciliation(t *testing.T) {
 				})).
 					Return(loadbalancer.GetLoadBalancerResponse{
 						LoadBalancer: loadbalancer.LoadBalancer{
-							Id:           common.String("lb-id"),
-							FreeformTags: tags,
-							DefinedTags:  make(map[string]map[string]interface{}),
-							IsPrivate:    common.Bool(false),
-							DisplayName:  common.String(fmt.Sprintf("%s-%s", "cluster", "apiserver")),
+							Id:             common.String("lb-id"),
+							LifecycleState: loadbalancer.LoadBalancerLifecycleStateActive,
+							FreeformTags:   tags,
+							DefinedTags:    make(map[string]map[string]interface{}),
+							IsPrivate:      common.Bool(false),
+							DisplayName:    common.String(fmt.Sprintf("%s-%s", "cluster", "apiserver")),
 							IpAddresses: []loadbalancer.IpAddress{
 								{
 									IpAddress: common.String("2.2.2.2"),
@@ -189,11 +192,12 @@ func TestLBReconciliation(t *testing.T) {
 				})).
 					Return(loadbalancer.GetLoadBalancerResponse{
 						LoadBalancer: loadbalancer.LoadBalancer{
-							Id:           common.String("lb-id"),
-							FreeformTags: tags,
-							DefinedTags:  make(map[string]map[string]interface{}),
-							IsPrivate:    common.Bool(false),
-							DisplayName:  common.String(fmt.Sprintf("%s-%s", "cluster", "apiserver")),
+							Id:             common.String("lb-id"),
+							LifecycleState: loadbalancer.LoadBalancerLifecycleStateActive,
+							FreeformTags:   tags,
+							DefinedTags:    make(map[string]map[string]interface{}),
+							IsPrivate:      common.Bool(false),
+							DisplayName:    common.String(fmt.Sprintf("%s-%s", "cluster", "apiserver")),
 							IpAddresses: []loadbalancer.IpAddress{
 								{
 									IpAddress: common.String("2.2.2.2"),
@@ -537,11 +541,12 @@ func TestLBReconciliation(t *testing.T) {
 				})).
 					Return(loadbalancer.GetLoadBalancerResponse{
 						LoadBalancer: loadbalancer.LoadBalancer{
-							Id:           common.String("lb-id"),
-							FreeformTags: tags,
-							DefinedTags:  make(map[string]map[string]interface{}),
-							IsPrivate:    common.Bool(false),
-							DisplayName:  common.String(fmt.Sprintf("%s-%s", "cluster", "apiserver-test")),
+							Id:             common.String("lb-id"),
+							LifecycleState: loadbalancer.LoadBalancerLifecycleStateActive,
+							FreeformTags:   tags,
+							DefinedTags:    make(map[string]map[string]interface{}),
+							IsPrivate:      common.Bool(false),
+							DisplayName:    common.String(fmt.Sprintf("%s-%s", "cluster", "apiserver-test")),
 							IpAddresses: []loadbalancer.IpAddress{
 								{
 									IpAddress: common.String("2.2.2.2"),
@@ -570,6 +575,34 @@ func TestLBReconciliation(t *testing.T) {
 				}, nil)
 			},
 		},
+		{
+			name:                "lb not active",
+			errorExpected:       true,
+			errorSubStringMatch: true,
+			matchError:          errors.New(fmt.Sprintf("load balancer is in %s state. Waiting for ACTIVE state.", loadbalancer.LoadBalancerLifecycleStateCreating)),
+			testSpecificSetup: func(clusterScope *ClusterScope, lbClient *mock_lb.MockLoadBalancerClient) {
+				ociClusterAccessor.OCICluster.Spec.NetworkSpec.APIServerLB.LoadBalancerId = common.String("lb-id")
+				lbClient.EXPECT().GetLoadBalancer(gomock.Any(), gomock.Eq(loadbalancer.GetLoadBalancerRequest{
+					LoadBalancerId: common.String("lb-id"),
+				})).
+					Return(loadbalancer.GetLoadBalancerResponse{
+						LoadBalancer: loadbalancer.LoadBalancer{
+							Id:             common.String("lb-id"),
+							LifecycleState: loadbalancer.LoadBalancerLifecycleStateCreating,
+							FreeformTags:   tags,
+							DefinedTags:    make(map[string]map[string]interface{}),
+							IsPrivate:      common.Bool(false),
+							DisplayName:    common.String(fmt.Sprintf("%s-%s", "cluster", "apiserver-test")),
+							IpAddresses: []loadbalancer.IpAddress{
+								{
+									IpAddress: common.String("2.2.2.2"),
+									IsPublic:  common.Bool(true),
+								},
+							},
+						},
+					}, nil)
+			},
+		},
 		{
 			name:                "lb update request failed",
 			errorExpected:       true,
@@ -582,11 +615,12 @@ func TestLBReconciliation(t *testing.T) {
 				})).
 					Return(loadbalancer.GetLoadBalancerResponse{
 						LoadBalancer: loadbalancer.LoadBalancer{
-							Id:           common.String("lb-id"),
-							FreeformTags: tags,
-							DefinedTags:  make(map[string]map[string]interface{}),
-							IsPrivate:    common.Bool(false),
-							DisplayName:  common.String(fmt.Sprintf("%s-%s", "cluster", "apiserver-test")),
+							Id:             common.String("lb-id"),
+							LifecycleState: loadbalancer.LoadBalancerLifecycleStateActive,
+							FreeformTags:   tags,
+							DefinedTags:    make(map[string]map[string]interface{}),
+							IsPrivate:      common.Bool(false),
+							DisplayName:    common.String(fmt.Sprintf("%s-%s", "cluster", "apiserver-test")),
 							IpAddresses: []loadbalancer.IpAddress{
 								{
 									IpAddress: common.String("2.2.2.2"),
diff --git a/cloud/scope/machine.go b/cloud/scope/machine.go
index 651c68fa..fe684436 100644
--- a/cloud/scope/machine.go
+++ b/cloud/scope/machine.go
@@ -520,33 +520,29 @@ func (m *MachineScope) ReconcileCreateInstanceOnLB(ctx context.Context) error {
 		backendName := instanceIp + ":" + strconv.Itoa(int(m.OCICluster.Spec.ControlPlaneEndpoint.Port))
 		if !m.containsLBBackend(backendSet, backendName) {
 			logger := m.Logger.WithValues("backend-set", *backendSet.Name)
-			workRequest := m.OCIMachine.Status.CreateBackendWorkRequestId
 			logger.Info("Checking work request status for create backend")
-			if workRequest != "" {
-				_, err = ociutil.AwaitLBWorkRequest(ctx, m.LoadBalancerClient, &workRequest)
-				if err != nil {
-					return err
-				}
-			} else {
-				resp, err := m.LoadBalancerClient.CreateBackend(ctx, loadbalancer.CreateBackendRequest{
-					LoadBalancerId: loadbalancerId,
-					BackendSetName: backendSet.Name,
-					CreateBackendDetails: loadbalancer.CreateBackendDetails{
-						IpAddress: common.String(instanceIp),
-						Port:      common.Int(int(m.OCICluster.Spec.ControlPlaneEndpoint.Port)),
-					},
-					OpcRetryToken: ociutil.GetOPCRetryToken("%s-%s", "create-backend", string(m.OCIMachine.UID)),
-				})
-				if err != nil {
-					return err
-				}
-				m.OCIMachine.Status.CreateBackendWorkRequestId = *resp.OpcWorkRequestId
-				logger.Info("Add instance to LB backend-set", "WorkRequestId", resp.OpcWorkRequestId)
-				logger.Info("Waiting for LB work request to be complete")
-				_, err = ociutil.AwaitLBWorkRequest(ctx, m.LoadBalancerClient, resp.OpcWorkRequestId)
-				if err != nil {
-					return err
-				}
+			// we always try to create the backend if it exists during a reconcile loop and wait for the work request
+			// to complete. If there is a work request in progress, in the rare case, CAPOCI pod restarts during the
+			// work request, the create backend call may throw an error which is ok, as reconcile will go into
+			// an exponential backoff
+			resp, err := m.LoadBalancerClient.CreateBackend(ctx, loadbalancer.CreateBackendRequest{
+				LoadBalancerId: loadbalancerId,
+				BackendSetName: backendSet.Name,
+				CreateBackendDetails: loadbalancer.CreateBackendDetails{
+					IpAddress: common.String(instanceIp),
+					Port:      common.Int(int(m.OCICluster.Spec.ControlPlaneEndpoint.Port)),
+				},
+				OpcRetryToken: ociutil.GetOPCRetryToken("%s-%s", "create-backend", string(m.OCIMachine.UID)),
+			})
+			if err != nil {
+				return err
+			}
+			m.OCIMachine.Status.CreateBackendWorkRequestId = *resp.OpcWorkRequestId
+			logger.Info("Add instance to LB backend-set", "WorkRequestId", resp.OpcWorkRequestId)
+			logger.Info("Waiting for LB work request to be complete")
+			_, err = ociutil.AwaitLBWorkRequest(ctx, m.LoadBalancerClient, resp.OpcWorkRequestId)
+			if err != nil {
+				return err
 			}
 		}
 
@@ -561,37 +557,32 @@ func (m *MachineScope) ReconcileCreateInstanceOnLB(ctx context.Context) error {
 		if !m.containsNLBBackend(backendSet, m.Name()) {
 			logger := m.Logger.WithValues("backend-set", *backendSet.Name)
 			logger.Info("Checking work request status for create backend")
-			workRequest := m.OCIMachine.Status.CreateBackendWorkRequestId
-			if workRequest != "" {
-				_, err = ociutil.AwaitNLBWorkRequest(ctx, m.NetworkLoadBalancerClient, &workRequest)
-				if err != nil {
-					return err
-				}
-			} else {
-				resp, err := m.NetworkLoadBalancerClient.CreateBackend(ctx, networkloadbalancer.CreateBackendRequest{
-					NetworkLoadBalancerId: loadbalancerId,
-					BackendSetName:        backendSet.Name,
-					CreateBackendDetails: networkloadbalancer.CreateBackendDetails{
-						IpAddress: common.String(instanceIp),
-						Port:      common.Int(int(m.OCICluster.Spec.ControlPlaneEndpoint.Port)),
-						Name:      common.String(m.Name()),
-					},
-					OpcRetryToken: ociutil.GetOPCRetryToken("%s-%s", "create-backend", string(m.OCIMachine.UID)),
-				})
-				if err != nil {
-					return err
-				}
-				m.OCIMachine.Status.CreateBackendWorkRequestId = *resp.OpcWorkRequestId
-				logger.Info("Add instance to NLB backend-set", "WorkRequestId", resp.OpcWorkRequestId)
-				logger.Info("Waiting for NLB work request to be complete")
-				_, err = ociutil.AwaitNLBWorkRequest(ctx, m.NetworkLoadBalancerClient, resp.OpcWorkRequestId)
-				if err != nil {
-					return err
-				}
-				logger.Info("NLB Backend addition work request is complete")
+			// we always try to create the backend if it exists during a reconcile loop and wait for the work request
+			// to complete. If there is a work request in progress, in the rare case, CAPOCI pod restarts during the
+			// work request, the create backend call may throw an error which is ok, as reconcile will go into
+			// an exponential backoff
+			resp, err := m.NetworkLoadBalancerClient.CreateBackend(ctx, networkloadbalancer.CreateBackendRequest{
+				NetworkLoadBalancerId: loadbalancerId,
+				BackendSetName:        backendSet.Name,
+				CreateBackendDetails: networkloadbalancer.CreateBackendDetails{
+					IpAddress: common.String(instanceIp),
+					Port:      common.Int(int(m.OCICluster.Spec.ControlPlaneEndpoint.Port)),
+					Name:      common.String(m.Name()),
+				},
+				OpcRetryToken: ociutil.GetOPCRetryToken("%s-%s", "create-backend", string(m.OCIMachine.UID)),
+			})
+			if err != nil {
+				return err
+			}
+			m.OCIMachine.Status.CreateBackendWorkRequestId = *resp.OpcWorkRequestId
+			logger.Info("Add instance to NLB backend-set", "WorkRequestId", resp.OpcWorkRequestId)
+			logger.Info("Waiting for NLB work request to be complete")
+			_, err = ociutil.AwaitNLBWorkRequest(ctx, m.NetworkLoadBalancerClient, resp.OpcWorkRequestId)
+			if err != nil {
+				return err
 			}
+			logger.Info("NLB Backend addition work request is complete")
 		}
-
 	}
 	return nil
 }
@@ -628,36 +619,31 @@ func (m *MachineScope) ReconcileDeleteInstanceOnLB(ctx context.Context) error {
 		backendName := instanceIp + ":" + strconv.Itoa(int(m.OCICluster.Spec.ControlPlaneEndpoint.Port))
 		if m.containsLBBackend(backendSet, backendName) {
 			logger := m.Logger.WithValues("backend-set", *backendSet.Name)
-			workRequest := m.OCIMachine.Status.DeleteBackendWorkRequestId
-			if workRequest != "" {
-				_, err = ociutil.AwaitLBWorkRequest(ctx, m.LoadBalancerClient, &workRequest)
-				if err != nil {
-					return err
-				}
-			} else {
-				// in OCI CLI, the colon in the backend name is replaced by %3A
-				// replace the colon in the backend name by %3A to avoid the error in PCA
-				escapedBackendName := url.QueryEscape(backendName)
-
-				resp, err := m.LoadBalancerClient.DeleteBackend(ctx, loadbalancer.DeleteBackendRequest{
-					LoadBalancerId: loadbalancerId,
-					BackendSetName: backendSet.Name,
-					BackendName:    common.String(escapedBackendName),
-				})
-				if err != nil {
-					logger.Error(err, "Delete instance from LB backend-set failed",
-						"backendSetName", *backendSet.Name,
-						"backendName", escapedBackendName,
-					)
-					return err
-				}
-				m.OCIMachine.Status.DeleteBackendWorkRequestId = *resp.OpcWorkRequestId
-				logger.Info("Delete instance from LB backend-set", "WorkRequestId", resp.OpcWorkRequestId)
-				logger.Info("Waiting for LB work request to be complete")
-				_, err = ociutil.AwaitLBWorkRequest(ctx, m.LoadBalancerClient, resp.OpcWorkRequestId)
-				if err != nil {
-					return err
-				}
+			// in OCI CLI, the colon in the backend name is replaced by %3A
+			// replace the colon in the backend name by %3A to avoid the error in PCA
+			escapedBackendName := url.QueryEscape(backendName)
+			// we always try to delete the backend if it exists during a reconcile loop and wait for the work request
+			// to complete. If there is a work request in progress, in the rare case, CAPOCI pod restarts during the
+			// work request, the delete backend call may throw an error which is ok, as reconcile will go into
+			// an exponential backoff
+			resp, err := m.LoadBalancerClient.DeleteBackend(ctx, loadbalancer.DeleteBackendRequest{
+				LoadBalancerId: loadbalancerId,
+				BackendSetName: backendSet.Name,
+				BackendName:    common.String(escapedBackendName),
+			})
+			if err != nil {
+				logger.Error(err, "Delete instance from LB backend-set failed",
+					"backendSetName", *backendSet.Name,
+					"backendName", escapedBackendName,
+				)
+				return err
+			}
+			m.OCIMachine.Status.DeleteBackendWorkRequestId = *resp.OpcWorkRequestId
+			logger.Info("Delete instance from LB backend-set", "WorkRequestId", resp.OpcWorkRequestId)
+			logger.Info("Waiting for LB work request to be complete")
+			_, err = ociutil.AwaitLBWorkRequest(ctx, m.LoadBalancerClient, resp.OpcWorkRequestId)
+			if err != nil {
+				return err
 			}
 			logger.Info("LB Backend addition work request is complete")
 		}
@@ -671,28 +657,24 @@ func (m *MachineScope) ReconcileDeleteInstanceOnLB(ctx context.Context) error {
 		backendSet := lb.BackendSets[APIServerLBBackendSetName]
 		if m.containsNLBBackend(backendSet, m.Name()) {
 			logger := m.Logger.WithValues("backend-set", *backendSet.Name)
-			workRequest := m.OCIMachine.Status.DeleteBackendWorkRequestId
-			if workRequest != "" {
-				_, err = ociutil.AwaitNLBWorkRequest(ctx, m.NetworkLoadBalancerClient, &workRequest)
-				if err != nil {
-					return err
-				}
-			} else {
-				resp, err := m.NetworkLoadBalancerClient.DeleteBackend(ctx, networkloadbalancer.DeleteBackendRequest{
-					NetworkLoadBalancerId: loadbalancerId,
-					BackendSetName:        backendSet.Name,
-					BackendName:           common.String(m.Name()),
-				})
-				if err != nil {
-					return err
-				}
-				m.OCIMachine.Status.DeleteBackendWorkRequestId = *resp.OpcWorkRequestId
-				logger.Info("Delete instance from LB backend-set", "WorkRequestId", resp.OpcWorkRequestId)
-				logger.Info("Waiting for LB work request to be complete")
-				_, err = ociutil.AwaitNLBWorkRequest(ctx, m.NetworkLoadBalancerClient, resp.OpcWorkRequestId)
-				if err != nil {
-					return err
-				}
+			// we always try to delete the backend if it exists during a reconcile loop and wait for the work request
+			// to complete. If there is a work request in progress, in the rare case, CAPOCI pod restarts during the
+			// work request, the delete backend call may throw an error which is ok, as reconcile will go into
+			// an exponential backoff
+			resp, err := m.NetworkLoadBalancerClient.DeleteBackend(ctx, networkloadbalancer.DeleteBackendRequest{
+				NetworkLoadBalancerId: loadbalancerId,
+				BackendSetName:        backendSet.Name,
+				BackendName:           common.String(m.Name()),
+			})
+			if err != nil {
+				return err
+			}
+			m.OCIMachine.Status.DeleteBackendWorkRequestId = *resp.OpcWorkRequestId
+			logger.Info("Delete instance from LB backend-set", "WorkRequestId", resp.OpcWorkRequestId)
+			logger.Info("Waiting for LB work request to be complete")
+			_, err = ociutil.AwaitNLBWorkRequest(ctx, m.NetworkLoadBalancerClient, resp.OpcWorkRequestId)
+			if err != nil {
+				return err
 			}
 		}
 	}
diff --git a/cloud/scope/machine_test.go b/cloud/scope/machine_test.go
index 3d0c53fe..a62f43c6 100644
--- a/cloud/scope/machine_test.go
+++ b/cloud/scope/machine_test.go
@@ -1292,7 +1292,7 @@ func TestNLBReconciliationCreation(t *testing.T) {
 			},
 		},
 		{
-			name:          "work request exists",
+			name:          "work request exists, will retry",
 			errorExpected: false,
 			testSpecificSetup: func(machineScope *MachineScope, nlbClient *mock_nlb.MockNetworkLoadBalancerClient) {
 				machineScope.OCIMachine.Status.Addresses = []clusterv1.MachineAddress{
@@ -1314,45 +1314,26 @@ func TestNLBReconciliationCreation(t *testing.T) {
 					},
 				}, nil)
 				machineScope.OCIMachine.Status.CreateBackendWorkRequestId = "wrid"
-				nlbClient.EXPECT().GetWorkRequest(gomock.Any(), gomock.Eq(
-					networkloadbalancer.GetWorkRequestRequest{
-						WorkRequestId: common.String("wrid"),
-					})).Return(networkloadbalancer.GetWorkRequestResponse{
-					WorkRequest: networkloadbalancer.WorkRequest{
-						Status: networkloadbalancer.OperationStatusSucceeded,
-					}}, nil)
-			},
-		},
-		{
-			name:          "work request exists error",
-			errorExpected: true,
-			matchError:    errors.Errorf("WorkRequest %s failed", "wrid"),
-			testSpecificSetup: func(machineScope *MachineScope, nlbClient *mock_nlb.MockNetworkLoadBalancerClient) {
-				machineScope.OCIMachine.Status.Addresses = []clusterv1.MachineAddress{
-					{
-						Type:    clusterv1.MachineInternalIP,
-						Address: "1.1.1.1",
-					},
-				}
-				machineScope.OCIMachine.Status.CreateBackendWorkRequestId = "wrid"
-				nlbClient.EXPECT().GetNetworkLoadBalancer(gomock.Any(), gomock.Eq(networkloadbalancer.GetNetworkLoadBalancerRequest{
-					NetworkLoadBalancerId: common.String("nlbid"),
-				})).Return(networkloadbalancer.GetNetworkLoadBalancerResponse{
-					NetworkLoadBalancer: networkloadbalancer.NetworkLoadBalancer{
-						BackendSets: map[string]networkloadbalancer.BackendSet{
-							APIServerLBBackendSetName: {
-								Name:     common.String(APIServerLBBackendSetName),
-								Backends: []networkloadbalancer.Backend{},
-							},
+				nlbClient.EXPECT().CreateBackend(gomock.Any(), gomock.Eq(
+					networkloadbalancer.CreateBackendRequest{
+						NetworkLoadBalancerId: common.String("nlbid"),
+						BackendSetName:        common.String(APIServerLBBackendSetName),
+						CreateBackendDetails: networkloadbalancer.CreateBackendDetails{
+							IpAddress: common.String("1.1.1.1"),
+							Port:      common.Int(6443),
+							Name:      common.String("test"),
 						},
-					},
+						OpcRetryToken: ociutil.GetOPCRetryToken("%s-%s", "create-backend", "uid"),
+					})).Return(networkloadbalancer.CreateBackendResponse{
+					OpcWorkRequestId: common.String("wrid-1"),
 				}, nil)
+
 				nlbClient.EXPECT().GetWorkRequest(gomock.Any(), gomock.Eq(
 					networkloadbalancer.GetWorkRequestRequest{
-						WorkRequestId: common.String("wrid"),
+						WorkRequestId: common.String("wrid-1"),
 					})).Return(networkloadbalancer.GetWorkRequestResponse{
 					WorkRequest: networkloadbalancer.WorkRequest{
-						Status: networkloadbalancer.OperationStatusFailed,
+						Status: networkloadbalancer.OperationStatusSucceeded,
 					}}, nil)
 			},
 		},
@@ -1628,7 +1609,7 @@ func TestNLBReconciliationDeletion(t *testing.T) {
 			},
 		},
 		{
-			name:          "work request exists",
+			name:          "work request exists, still delete should be called",
 			errorExpected: false,
 			matchError:    errors.New("could not get nlb"),
 			testSpecificSetup: func(machineScope *MachineScope, nlbClient *mock_nlb.MockNetworkLoadBalancerClient) {
@@ -1649,6 +1630,14 @@ func TestNLBReconciliationDeletion(t *testing.T) {
 						},
 					},
 				}, nil)
+				nlbClient.EXPECT().DeleteBackend(gomock.Any(), gomock.Eq(networkloadbalancer.DeleteBackendRequest{
+					NetworkLoadBalancerId: common.String("nlbid"),
+					BackendSetName:        common.String(APIServerLBBackendSetName),
+					BackendName:           common.String("test"),
+				})).Return(networkloadbalancer.DeleteBackendResponse{
+					OpcWorkRequestId: common.String("wrid"),
+				}, nil)
+
 				nlbClient.EXPECT().GetWorkRequest(gomock.Any(), gomock.Eq(
 					networkloadbalancer.GetWorkRequestRequest{
 						WorkRequestId: common.String("wrid"),
@@ -1853,7 +1842,7 @@ func TestLBReconciliationCreation(t *testing.T) {
 			},
 		},
 		{
-			name:          "work request exists",
+			name:          "work request exists, will retry",
 			errorExpected: false,
 			testSpecificSetup: func(machineScope *MachineScope, lbClient *mock_lb.MockLoadBalancerClient) {
 				machineScope.OCIMachine.Status.Addresses = []clusterv1.MachineAddress{
@@ -1875,45 +1864,25 @@ func TestLBReconciliationCreation(t *testing.T) {
 					},
 				}, nil)
 				machineScope.OCIMachine.Status.CreateBackendWorkRequestId = "wrid"
-				lbClient.EXPECT().GetWorkRequest(gomock.Any(), gomock.Eq(
-					loadbalancer.GetWorkRequestRequest{
-						WorkRequestId: common.String("wrid"),
-					})).Return(loadbalancer.GetWorkRequestResponse{
-					WorkRequest: loadbalancer.WorkRequest{
-						LifecycleState: loadbalancer.WorkRequestLifecycleStateSucceeded,
-					}}, nil)
-			},
-		},
-		{
-			name:          "work request exists error",
-			errorExpected: true,
-			matchError:    errors.Errorf("WorkRequest %s failed", "wrid"),
-			testSpecificSetup: func(machineScope *MachineScope, lbClient *mock_lb.MockLoadBalancerClient) {
-				machineScope.OCIMachine.Status.Addresses = []clusterv1.MachineAddress{
-					{
-						Type:    clusterv1.MachineInternalIP,
-						Address: "1.1.1.1",
-					},
-				}
-				machineScope.OCIMachine.Status.CreateBackendWorkRequestId = "wrid"
-				lbClient.EXPECT().GetLoadBalancer(gomock.Any(), gomock.Eq(loadbalancer.GetLoadBalancerRequest{
-					LoadBalancerId: common.String("lbid"),
-				})).Return(loadbalancer.GetLoadBalancerResponse{
-					LoadBalancer: loadbalancer.LoadBalancer{
-						BackendSets: map[string]loadbalancer.BackendSet{
-							APIServerLBBackendSetName: {
-								Name:     common.String(APIServerLBBackendSetName),
-								Backends: []loadbalancer.Backend{},
-							},
+				lbClient.EXPECT().CreateBackend(gomock.Any(), gomock.Eq(
+					loadbalancer.CreateBackendRequest{
+						LoadBalancerId: common.String("lbid"),
+						BackendSetName: common.String(APIServerLBBackendSetName),
+						CreateBackendDetails: loadbalancer.CreateBackendDetails{
+							IpAddress: common.String("1.1.1.1"),
+							Port:      common.Int(6443),
 						},
-					},
+						OpcRetryToken: ociutil.GetOPCRetryToken("%s-%s", "create-backend", "uid"),
+					})).Return(loadbalancer.CreateBackendResponse{
+					OpcWorkRequestId: common.String("wrid-1"),
 				}, nil)
+
 				lbClient.EXPECT().GetWorkRequest(gomock.Any(), gomock.Eq(
 					loadbalancer.GetWorkRequestRequest{
-						WorkRequestId: common.String("wrid"),
+						WorkRequestId: common.String("wrid-1"),
 					})).Return(loadbalancer.GetWorkRequestResponse{
 					WorkRequest: loadbalancer.WorkRequest{
-						LifecycleState: loadbalancer.WorkRequestLifecycleStateFailed,
+						LifecycleState: loadbalancer.WorkRequestLifecycleStateSucceeded,
 					}}, nil)
 			},
 		},
@@ -2217,7 +2186,7 @@ func TestLBReconciliationDeletion(t *testing.T) {
 			},
 		},
 		{
-			name:          "work request exists",
+			name:          "work request exists, still delete should be called",
 			errorExpected: false,
 			matchError:    errors.New("could not get lb"),
 			testSpecificSetup: func(machineScope *MachineScope, lbClient *mock_lb.MockLoadBalancerClient) {
@@ -2244,6 +2213,14 @@ func TestLBReconciliationDeletion(t *testing.T) {
 						},
 					},
 				}, nil)
+				lbClient.EXPECT().DeleteBackend(gomock.Any(), gomock.Eq(loadbalancer.DeleteBackendRequest{
+					LoadBalancerId: common.String("lbid"),
+					BackendSetName: common.String(APIServerLBBackendSetName),
+					BackendName:    common.String("1.1.1.1%3A6443"),
+				})).Return(loadbalancer.DeleteBackendResponse{
+					OpcWorkRequestId: common.String("wrid"),
+				}, nil)
+
 				lbClient.EXPECT().GetWorkRequest(gomock.Any(), gomock.Eq(
 					loadbalancer.GetWorkRequestRequest{
 						WorkRequestId: common.String("wrid"),
diff --git a/cloud/scope/network_load_balancer_reconciler.go b/cloud/scope/network_load_balancer_reconciler.go
index 238cdde2..b10fc758 100644
--- a/cloud/scope/network_load_balancer_reconciler.go
+++ b/cloud/scope/network_load_balancer_reconciler.go
@@ -19,7 +19,6 @@ package scope
 import (
 	"context"
 	"fmt"
-
 	infrastructurev1beta2 "github.com/oracle/cluster-api-provider-oci/api/v1beta2"
 	"github.com/oracle/cluster-api-provider-oci/cloud/ociutil"
 	"github.com/oracle/oci-go-sdk/v65/common"
@@ -37,6 +36,9 @@ func (s *ClusterScope) ReconcileApiServerNLB(ctx context.Context) error {
 		return err
 	}
 	if nlb != nil {
+		if nlb.LifecycleState != networkloadbalancer.LifecycleStateActive {
+			return errors.New(fmt.Sprintf("network load balancer is in %s state. Waiting for ACTIVE state.", nlb.LifecycleState))
+		}
 		lbIP, err := s.getNetworkLoadbalancerIp(*nlb)
 		if err != nil {
 			return err
diff --git a/cloud/scope/network_load_balancer_reconciler_test.go b/cloud/scope/network_load_balancer_reconciler_test.go
index 2802505a..7d8baca7 100644
--- a/cloud/scope/network_load_balancer_reconciler_test.go
+++ b/cloud/scope/network_load_balancer_reconciler_test.go
@@ -97,11 +97,12 @@ func TestNLBReconciliation(t *testing.T) {
 				})).
 					Return(networkloadbalancer.GetNetworkLoadBalancerResponse{
 						NetworkLoadBalancer: networkloadbalancer.NetworkLoadBalancer{
-							Id:           common.String("nlb-id"),
-							FreeformTags: tags,
-							DefinedTags:  make(map[string]map[string]interface{}),
-							IsPrivate:    common.Bool(false),
-							DisplayName:  common.String(fmt.Sprintf("%s-%s", "cluster", "apiserver")),
+							LifecycleState: networkloadbalancer.LifecycleStateActive,
+							Id:             common.String("nlb-id"),
+							FreeformTags:   tags,
+							DefinedTags:    make(map[string]map[string]interface{}),
+							IsPrivate:      common.Bool(false),
+							DisplayName:    common.String(fmt.Sprintf("%s-%s", "cluster", "apiserver")),
 							IpAddresses: []networkloadbalancer.IpAddress{
 								{
 									IpAddress: common.String("2.2.2.2"),
@@ -123,11 +124,12 @@ func TestNLBReconciliation(t *testing.T) {
 				})).
 					Return(networkloadbalancer.GetNetworkLoadBalancerResponse{
 						NetworkLoadBalancer: networkloadbalancer.NetworkLoadBalancer{
-							Id:           common.String("nlb-id"),
-							FreeformTags: tags,
-							DefinedTags:  make(map[string]map[string]interface{}),
-							IsPrivate:    common.Bool(false),
-							DisplayName:  common.String(fmt.Sprintf("%s-%s", "cluster", "apiserver")),
+							LifecycleState: networkloadbalancer.LifecycleStateActive,
+							Id:             common.String("nlb-id"),
+							FreeformTags:   tags,
+							DefinedTags:    make(map[string]map[string]interface{}),
+							IsPrivate:      common.Bool(false),
+							DisplayName:    common.String(fmt.Sprintf("%s-%s", "cluster", "apiserver")),
 						},
 					}, nil)
 			},
@@ -143,11 +145,12 @@ func TestNLBReconciliation(t *testing.T) {
 				})).
 					Return(networkloadbalancer.GetNetworkLoadBalancerResponse{
 						NetworkLoadBalancer: networkloadbalancer.NetworkLoadBalancer{
-							Id:           common.String("nlb-id"),
-							FreeformTags: tags,
-							DefinedTags:  make(map[string]map[string]interface{}),
-							IsPrivate:    common.Bool(false),
-							DisplayName:  common.String(fmt.Sprintf("%s-%s", "cluster", "apiserver")),
+							LifecycleState: networkloadbalancer.LifecycleStateActive,
+							Id:             common.String("nlb-id"),
+							FreeformTags:   tags,
+							DefinedTags:    make(map[string]map[string]interface{}),
+							IsPrivate:      common.Bool(false),
+							DisplayName:    common.String(fmt.Sprintf("%s-%s", "cluster", "apiserver")),
 							IpAddresses: []networkloadbalancer.IpAddress{
 								{
 									IpAddress: common.String("2.2.2.2"),
@@ -191,11 +194,12 @@ func TestNLBReconciliation(t *testing.T) {
 				})).
 					Return(networkloadbalancer.GetNetworkLoadBalancerResponse{
 						NetworkLoadBalancer: networkloadbalancer.NetworkLoadBalancer{
-							Id:           common.String("nlb-id"),
-							FreeformTags: tags,
-							DefinedTags:  make(map[string]map[string]interface{}),
-							IsPrivate:    common.Bool(false),
-							DisplayName:  common.String(fmt.Sprintf("%s-%s", "cluster", "apiserver")),
+							LifecycleState: networkloadbalancer.LifecycleStateActive,
+							Id:             common.String("nlb-id"),
+							FreeformTags:   tags,
+							DefinedTags:    make(map[string]map[string]interface{}),
+							IsPrivate:      common.Bool(false),
+							DisplayName:    common.String(fmt.Sprintf("%s-%s", "cluster", "apiserver")),
 							IpAddresses: []networkloadbalancer.IpAddress{
 								{
 									IpAddress: common.String("2.2.2.2"),
@@ -466,11 +470,12 @@ func TestNLBReconciliation(t *testing.T) {
 				})).
 					Return(networkloadbalancer.GetNetworkLoadBalancerResponse{
 						NetworkLoadBalancer: networkloadbalancer.NetworkLoadBalancer{
-							Id:           common.String("nlb-id"),
-							FreeformTags: tags,
-							DefinedTags:  make(map[string]map[string]interface{}),
-							IsPrivate:    common.Bool(false),
-							DisplayName:  common.String(fmt.Sprintf("%s-%s", "cluster", "apiserver-test")),
+							LifecycleState: networkloadbalancer.LifecycleStateActive,
+							Id:             common.String("nlb-id"),
+							FreeformTags:   tags,
+							DefinedTags:    make(map[string]map[string]interface{}),
+							IsPrivate:      common.Bool(false),
+							DisplayName:    common.String(fmt.Sprintf("%s-%s", "cluster", "apiserver-test")),
 							IpAddresses: []networkloadbalancer.IpAddress{
 								{
 									IpAddress: common.String("2.2.2.2"),
@@ -497,6 +502,34 @@ func TestNLBReconciliation(t *testing.T) {
 				}, nil)
 			},
 		},
+		{
+			name:                "nlb not active",
+			errorExpected:       true,
+			errorSubStringMatch: true,
+			matchError:          errors.New(fmt.Sprintf("network load balancer is in %s state. Waiting for ACTIVE state.", networkloadbalancer.LifecycleStateCreating)),
+			testSpecificSetup: func(clusterScope *ClusterScope, nlbClient *mock_nlb.MockNetworkLoadBalancerClient) {
+				ociClusterAccessor.OCICluster.Spec.NetworkSpec.APIServerLB.LoadBalancerId = common.String("nlb-id")
+				nlbClient.EXPECT().GetNetworkLoadBalancer(gomock.Any(), gomock.Eq(networkloadbalancer.GetNetworkLoadBalancerRequest{
+					NetworkLoadBalancerId: common.String("nlb-id"),
+				})).
+					Return(networkloadbalancer.GetNetworkLoadBalancerResponse{
+						NetworkLoadBalancer: networkloadbalancer.NetworkLoadBalancer{
+							LifecycleState: networkloadbalancer.LifecycleStateCreating,
+							Id:             common.String("nlb-id"),
+							FreeformTags:   tags,
+							DefinedTags:    make(map[string]map[string]interface{}),
+							IsPrivate:      common.Bool(false),
+							DisplayName:    common.String(fmt.Sprintf("%s-%s", "cluster", "apiserver-test")),
+							IpAddresses: []networkloadbalancer.IpAddress{
+								{
+									IpAddress: common.String("2.2.2.2"),
+									IsPublic:  common.Bool(true),
+								},
+							},
+						},
+					}, nil)
+			},
+		},
 		{
 			name:                "nlb update request failed",
 			errorExpected:       true,
@@ -509,11 +542,12 @@ func TestNLBReconciliation(t *testing.T) {
 				})).
 					Return(networkloadbalancer.GetNetworkLoadBalancerResponse{
 						NetworkLoadBalancer: networkloadbalancer.NetworkLoadBalancer{
-							Id:           common.String("nlb-id"),
-							FreeformTags: tags,
-							DefinedTags:  make(map[string]map[string]interface{}),
-							IsPrivate:    common.Bool(false),
-							DisplayName:  common.String(fmt.Sprintf("%s-%s", "cluster", "apiserver-test")),
+							LifecycleState: networkloadbalancer.LifecycleStateActive,
+							Id:             common.String("nlb-id"),
+							FreeformTags:   tags,
+							DefinedTags:    make(map[string]map[string]interface{}),
+							IsPrivate:      common.Bool(false),
+							DisplayName:    common.String(fmt.Sprintf("%s-%s", "cluster", "apiserver-test")),
 							IpAddresses: []networkloadbalancer.IpAddress{
 								{
 									IpAddress: common.String("2.2.2.2"),