diff --git a/cloud/scope/managed_control_plane.go b/cloud/scope/managed_control_plane.go
index 666b3261..cfd2aca8 100644
--- a/cloud/scope/managed_control_plane.go
+++ b/cloud/scope/managed_control_plane.go
@@ -18,6 +18,7 @@ package scope
 
 import (
 	"context"
+	"encoding/json"
 	"fmt"
 	"io/ioutil"
 	"reflect"
@@ -517,7 +518,16 @@ func (s *ManagedControlPlaneScope) UpdateControlPlane(ctx context.Context, okeCl
 
 	actual := s.getSpecFromActual(okeCluster)
 	if !reflect.DeepEqual(spec, actual) {
-		s.Logger.Info("Control plane", "spec", common.PointerString(*spec), "actual", common.PointerString(*actual))
+		// printing json specs will help debug problems when there are spurious/unwanted updates
+		jsonSpec, err := json.Marshal(*spec)
+		if err != nil {
+			return false, err
+		}
+		jsonActual, err := json.Marshal(*actual)
+		if err != nil {
+			return false, err
+		}
+		s.Logger.Info("Control plane", "spec", jsonSpec, "actual", jsonActual)
 		controlPlaneSpec := s.OCIManagedControlPlane.Spec
 		updateOptions := oke.UpdateClusterOptionsDetails{}
 		if controlPlaneSpec.ClusterOption.AdmissionControllerOptions != nil {
@@ -540,7 +550,7 @@ func (s *ManagedControlPlaneScope) UpdateControlPlane(ctx context.Context, okeCl
 			ClusterId:            okeCluster.Id,
 			UpdateClusterDetails: details,
 		}
-		_, err := s.ContainerEngineClient.UpdateCluster(ctx, updateClusterRequest)
+		_, err = s.ContainerEngineClient.UpdateCluster(ctx, updateClusterRequest)
 		if err != nil {
 			return false, errors.Wrapf(err, "failed to update cluster")
 		}
diff --git a/cloud/scope/managed_machine_pool.go b/cloud/scope/managed_machine_pool.go
index fe1efb49..caf593a5 100644
--- a/cloud/scope/managed_machine_pool.go
+++ b/cloud/scope/managed_machine_pool.go
@@ -18,6 +18,7 @@ package scope
 
 import (
 	"context"
+	"encoding/json"
 	"fmt"
 	"reflect"
 	"sort"
@@ -285,7 +286,7 @@ func (m *ManagedMachinePoolScope) CreateNodePool(ctx context.Context) (*oke.Node
 		CompartmentId:     common.String(m.OCIManagedCluster.Spec.CompartmentId),
 		ClusterId:         m.OCIManagedControlPlane.Spec.ID,
 		Name:              common.String(m.OCIManagedMachinePool.Name),
-		KubernetesVersion: m.MachinePool.Spec.Template.Spec.Version,
+		KubernetesVersion: m.OCIManagedMachinePool.Spec.Version,
 		NodeShape:         common.String(m.OCIManagedMachinePool.Spec.NodeShape),
 		NodeShapeConfig:   &nodeShapeConfig,
 		NodeSourceDetails: &sourceDetails,
@@ -500,10 +501,18 @@ func (m *ManagedMachinePoolScope) UpdateNodePool(ctx context.Context, pool *oke.
 
 	actual := m.getSpecFromAPIObject(pool)
 	if !reflect.DeepEqual(spec, actual) ||
-		!reflect.DeepEqual(pool.KubernetesVersion, m.MachinePool.Spec.Template.Spec.Version) ||
 		m.OCIManagedMachinePool.Name != *pool.Name {
 		m.Logger.Info("Updating node pool")
-		m.Logger.Info("Node pool", "spec", common.PointerString(*spec), "actual", common.PointerString(*actual))
+		// printing json specs will help debug problems when there are spurious/unwanted updates
+		jsonSpec, err := json.Marshal(*spec)
+		if err != nil {
+			return false, err
+		}
+		jsonActual, err := json.Marshal(*actual)
+		if err != nil {
+			return false, err
+		}
+		m.Logger.Info("Node pool", "spec", jsonSpec, "actual", jsonActual)
 		placementConfig, err := m.buildPlacementConfig(spec.NodePoolNodeConfig.PlacementConfigs)
 		if err != nil {
 			return false, err
@@ -559,7 +568,7 @@ func (m *ManagedMachinePoolScope) UpdateNodePool(ctx context.Context, pool *oke.
 		}
 		nodePoolDetails := oke.UpdateNodePoolDetails{
 			Name:              common.String(m.OCIManagedMachinePool.Name),
-			KubernetesVersion: m.MachinePool.Spec.Template.Spec.Version,
+			KubernetesVersion: m.OCIManagedMachinePool.Spec.Version,
 			NodeShape:         common.String(m.OCIManagedMachinePool.Spec.NodeShape),
 			NodeShapeConfig:   &nodeShapeConfig,
 			NodeSourceDetails: &sourceDetails,
@@ -602,6 +611,13 @@ func setMachinePoolSpecDefaults(spec *infrav1exp.OCIManagedMachinePoolSpec) {
 			return *configs[i].AvailabilityDomain < *configs[j].AvailabilityDomain
 		})
 	}
+	podNetworkOptions := spec.NodePoolNodeConfig.NodePoolPodNetworkOptionDetails
+	if podNetworkOptions != nil {
+		if podNetworkOptions.CniType == expinfra1.VCNNativeCNI {
+			// 31 is the default max pods per node returned by OKE API
+			spec.NodePoolNodeConfig.NodePoolPodNetworkOptionDetails.VcnIpNativePodNetworkOptions.MaxPodsPerNode = common.Int(31)
+		}
+	}
 }
 
 func (m *ManagedMachinePoolScope) getSpecFromAPIObject(pool *oke.NodePool) *expinfra1.OCIManagedMachinePoolSpec {
@@ -638,6 +654,7 @@ func (m *ManagedMachinePoolScope) getSpecFromAPIObject(pool *oke.NodePool) *expi
 		InitialNodeLabels:  getInitialNodeLabels(pool.InitialNodeLabels),
 		NodeShape:          *pool.NodeShape,
 		NodeMetadata:       pool.NodeMetadata,
+		Version:            pool.KubernetesVersion,
 	}
 	if pool.NodeEvictionNodePoolSettings != nil {
 		spec.NodeEvictionNodePoolSettings = &expinfra1.NodeEvictionNodePoolSettings{
diff --git a/cloud/scope/managed_machine_pool_test.go b/cloud/scope/managed_machine_pool_test.go
index 3f71c3f6..85faf7cf 100644
--- a/cloud/scope/managed_machine_pool_test.go
+++ b/cloud/scope/managed_machine_pool_test.go
@@ -19,7 +19,6 @@ package scope
 import (
 	"context"
 	"fmt"
-	"reflect"
 	"testing"
 
 	"github.com/golang/mock/gomock"
@@ -138,6 +137,9 @@ func TestManagedMachinePoolCreate(t *testing.T) {
 				ObjectMeta: metav1.ObjectMeta{
 					Name: "test",
 				},
+				Spec: infrav1exp.OCIManagedMachinePoolSpec{
+					Version: common.String("v1.24.5"),
+				},
 			},
 			OCIManagedCluster: ociManagedCluster,
 			Cluster: &clusterv1.Cluster{
@@ -145,11 +147,6 @@ func TestManagedMachinePoolCreate(t *testing.T) {
 			},
 			MachinePool: &expclusterv1.MachinePool{
 				Spec: expclusterv1.MachinePoolSpec{
-					Template: clusterv1.MachineTemplateSpec{
-						Spec: clusterv1.MachineSpec{
-							Version: common.String("v1.24.5"),
-						},
-					},
 					Replicas: &size,
 				},
 			},
@@ -177,6 +174,7 @@ func TestManagedMachinePoolCreate(t *testing.T) {
 			testSpecificSetup: func(cs *ManagedMachinePoolScope, okeClient *mock_containerengine.MockClient) {
 				ms.OCIManagedCluster.Spec.OCIResourceIdentifier = "resource_uid"
 				ms.OCIManagedMachinePool.Spec = infrav1exp.OCIManagedMachinePoolSpec{
+					Version:      common.String("v1.24.5"),
 					NodeMetadata: map[string]string{"key1": "value1"},
 					InitialNodeLabels: []infrav1exp.KeyValue{{
 						Key:   common.String("key"),
@@ -208,7 +206,7 @@ func TestManagedMachinePoolCreate(t *testing.T) {
 							CniType: infrav1exp.VCNNativeCNI,
 							VcnIpNativePodNetworkOptions: infrav1exp.VcnIpNativePodNetworkOptions{
 								SubnetNames:    []string{"pod-subnet"},
-								MaxPodsPerNode: common.Int(15),
+								MaxPodsPerNode: common.Int(25),
 								NSGNames:       []string{"pod-nsg"},
 							},
 						},
@@ -258,7 +256,7 @@ func TestManagedMachinePoolCreate(t *testing.T) {
 							DefinedTags:                    definedTagsInterface,
 							NodePoolPodNetworkOptionDetails: oke.OciVcnIpNativeNodePoolPodNetworkOptionDetails{
 								PodSubnetIds:   []string{"pod-subnet-id"},
-								MaxPodsPerNode: common.Int(15),
+								MaxPodsPerNode: common.Int(25),
 								PodNsgIds:      []string{"pod-nsg-id"},
 							},
 						},
@@ -302,6 +300,7 @@ func TestManagedMachinePoolCreate(t *testing.T) {
 			testSpecificSetup: func(cs *ManagedMachinePoolScope, okeClient *mock_containerengine.MockClient) {
 				ms.OCIManagedCluster.Spec.OCIResourceIdentifier = "resource_uid"
 				ms.OCIManagedMachinePool.Spec = infrav1exp.OCIManagedMachinePoolSpec{
+					Version:      common.String("v1.24.5"),
 					NodeMetadata: map[string]string{"key1": "value1"},
 					InitialNodeLabels: []infrav1exp.KeyValue{{
 						Key:   common.String("key"),
@@ -565,6 +564,9 @@ func TestManagedMachinePoolUpdate(t *testing.T) {
 				ObjectMeta: metav1.ObjectMeta{
 					Name: "test",
 				},
+				Spec: infrav1exp.OCIManagedMachinePoolSpec{
+					Version: common.String("v1.24.5"),
+				},
 			},
 			OCIManagedCluster: ociManagedCluster,
 			Cluster: &clusterv1.Cluster{
@@ -572,11 +574,7 @@ func TestManagedMachinePoolUpdate(t *testing.T) {
 			},
 			MachinePool: &expclusterv1.MachinePool{
 				Spec: expclusterv1.MachinePoolSpec{
-					Template: clusterv1.MachineTemplateSpec{
-						Spec: clusterv1.MachineSpec{
-							Version: common.String("v1.24.5"),
-						},
-					},
+					Template: clusterv1.MachineTemplateSpec{},
 					Replicas: &size,
 				},
 			},
@@ -605,6 +603,7 @@ func TestManagedMachinePoolUpdate(t *testing.T) {
 			testSpecificSetup: func(cs *ManagedMachinePoolScope, okeClient *mock_containerengine.MockClient) {
 				ms.OCIManagedCluster.Spec.OCIResourceIdentifier = "resource_uid"
 				ms.OCIManagedMachinePool.Spec = infrav1exp.OCIManagedMachinePoolSpec{
+					Version:      common.String("v1.24.5"),
 					NodeMetadata: map[string]string{"key1": "value1"},
 					InitialNodeLabels: []infrav1exp.KeyValue{{
 						Key:   common.String("key"),
@@ -634,9 +633,8 @@ func TestManagedMachinePoolUpdate(t *testing.T) {
 						NodePoolPodNetworkOptionDetails: &infrav1exp.NodePoolPodNetworkOptionDetails{
 							CniType: infrav1exp.VCNNativeCNI,
 							VcnIpNativePodNetworkOptions: infrav1exp.VcnIpNativePodNetworkOptions{
-								SubnetNames:    []string{"pod-subnet"},
-								MaxPodsPerNode: common.Int(15),
-								NSGNames:       []string{"pod-nsg"},
+								SubnetNames: []string{"pod-subnet"},
+								NSGNames:    []string{"pod-nsg"},
 							},
 						},
 					},
@@ -684,7 +682,7 @@ func TestManagedMachinePoolUpdate(t *testing.T) {
 					DefinedTags:                    definedTagsInterface,
 					NodePoolPodNetworkOptionDetails: oke.OciVcnIpNativeNodePoolPodNetworkOptionDetails{
 						PodSubnetIds:   []string{"pod-subnet-id"},
-						MaxPodsPerNode: common.Int(15),
+						MaxPodsPerNode: common.Int(31),
 						PodNsgIds:      []string{"pod-nsg-id"},
 					},
 				},
@@ -700,6 +698,7 @@ func TestManagedMachinePoolUpdate(t *testing.T) {
 			testSpecificSetup: func(cs *ManagedMachinePoolScope, okeClient *mock_containerengine.MockClient) {
 				ms.OCIManagedCluster.Spec.OCIResourceIdentifier = "resource_uid"
 				ms.OCIManagedMachinePool.Spec = infrav1exp.OCIManagedMachinePoolSpec{
+					Version:      common.String("v1.24.5"),
 					ID:           common.String("node-pool-id"),
 					NodeMetadata: map[string]string{"key1": "value1"},
 					InitialNodeLabels: []infrav1exp.KeyValue{{
@@ -731,7 +730,7 @@ func TestManagedMachinePoolUpdate(t *testing.T) {
 							CniType: infrav1exp.VCNNativeCNI,
 							VcnIpNativePodNetworkOptions: infrav1exp.VcnIpNativePodNetworkOptions{
 								SubnetNames:    []string{"pod-subnet"},
-								MaxPodsPerNode: common.Int(15),
+								MaxPodsPerNode: common.Int(31),
 								NSGNames:       []string{"pod-nsg"},
 							},
 						},
@@ -775,7 +774,7 @@ func TestManagedMachinePoolUpdate(t *testing.T) {
 							IsPvEncryptionInTransitEnabled: common.Bool(true),
 							NodePoolPodNetworkOptionDetails: oke.OciVcnIpNativeNodePoolPodNetworkOptionDetails{
 								PodSubnetIds:   []string{"pod-subnet-id"},
-								MaxPodsPerNode: common.Int(15),
+								MaxPodsPerNode: common.Int(31),
 								PodNsgIds:      []string{"pod-nsg-id"},
 							},
 						},
@@ -828,7 +827,7 @@ func TestManagedMachinePoolUpdate(t *testing.T) {
 					DefinedTags:                    definedTagsInterface,
 					NodePoolPodNetworkOptionDetails: oke.OciVcnIpNativeNodePoolPodNetworkOptionDetails{
 						PodSubnetIds:   []string{"pod-subnet-id"},
-						MaxPodsPerNode: common.Int(15),
+						MaxPodsPerNode: common.Int(31),
 						PodNsgIds:      []string{"pod-nsg-id"},
 					},
 				},
@@ -844,6 +843,7 @@ func TestManagedMachinePoolUpdate(t *testing.T) {
 			testSpecificSetup: func(cs *ManagedMachinePoolScope, okeClient *mock_containerengine.MockClient) {
 				ms.OCIManagedCluster.Spec.OCIResourceIdentifier = "resource_uid"
 				ms.OCIManagedMachinePool.Spec = infrav1exp.OCIManagedMachinePoolSpec{
+					Version:      common.String("v1.24.5"),
 					ID:           common.String("node-pool-id"),
 					NodeMetadata: map[string]string{"key1": "value1"},
 					InitialNodeLabels: []infrav1exp.KeyValue{{
@@ -875,7 +875,7 @@ func TestManagedMachinePoolUpdate(t *testing.T) {
 							CniType: infrav1exp.VCNNativeCNI,
 							VcnIpNativePodNetworkOptions: infrav1exp.VcnIpNativePodNetworkOptions{
 								SubnetNames:    []string{"pod-subnet"},
-								MaxPodsPerNode: common.Int(15),
+								MaxPodsPerNode: common.Int(31),
 								NSGNames:       []string{"pod-nsg"},
 							},
 						},
@@ -919,7 +919,7 @@ func TestManagedMachinePoolUpdate(t *testing.T) {
 							IsPvEncryptionInTransitEnabled: common.Bool(true),
 							NodePoolPodNetworkOptionDetails: oke.OciVcnIpNativeNodePoolPodNetworkOptionDetails{
 								PodSubnetIds:   []string{"pod-subnet-id"},
-								MaxPodsPerNode: common.Int(15),
+								MaxPodsPerNode: common.Int(31),
 								PodNsgIds:      []string{"pod-nsg-id"},
 							},
 						},
@@ -989,6 +989,7 @@ func TestManagedMachinePoolUpdate(t *testing.T) {
 				ms.OCIManagedCluster.Spec.OCIResourceIdentifier = "resource_uid"
 				ms.OCIManagedMachinePool.Name = "changed"
 				ms.OCIManagedMachinePool.Spec = infrav1exp.OCIManagedMachinePoolSpec{
+					Version:      common.String("v1.24.5"),
 					ID:           common.String("node-pool-id"),
 					NodeMetadata: map[string]string{"key1": "value1"},
 					InitialNodeLabels: []infrav1exp.KeyValue{{
@@ -1020,7 +1021,7 @@ func TestManagedMachinePoolUpdate(t *testing.T) {
 							CniType: infrav1exp.VCNNativeCNI,
 							VcnIpNativePodNetworkOptions: infrav1exp.VcnIpNativePodNetworkOptions{
 								SubnetNames:    []string{"pod-subnet"},
-								MaxPodsPerNode: common.Int(15),
+								MaxPodsPerNode: common.Int(31),
 								NSGNames:       []string{"pod-nsg"},
 							},
 						},
@@ -1064,7 +1065,7 @@ func TestManagedMachinePoolUpdate(t *testing.T) {
 							IsPvEncryptionInTransitEnabled: common.Bool(true),
 							NodePoolPodNetworkOptionDetails: oke.OciVcnIpNativeNodePoolPodNetworkOptionDetails{
 								PodSubnetIds:   []string{"pod-subnet-id"},
-								MaxPodsPerNode: common.Int(15),
+								MaxPodsPerNode: common.Int(31),
 								PodNsgIds:      []string{"pod-nsg-id"},
 							},
 						},
@@ -1149,35 +1150,3 @@ func TestManagedMachinePoolUpdate(t *testing.T) {
 		})
 	}
 }
-
-func allMatcher(request interface{}, request2 oke.CreateNodePoolRequest) error {
-	r, ok := request.(oke.CreateNodePoolRequest)
-	if !ok {
-		return errors.New("expecting LaunchInstanceRequest type")
-	}
-	if !reflect.DeepEqual(r.NodeEvictionNodePoolSettings, request2.NodeEvictionNodePoolSettings) {
-		return errors.New(fmt.Sprintf("node eviction mismatch"))
-	}
-	if !reflect.DeepEqual(r.NodeShapeConfig, request2.NodeShapeConfig) {
-		return errors.New(fmt.Sprintf("node shape mismatch"))
-	}
-	if !reflect.DeepEqual(r.NodeConfigDetails.DefinedTags, request2.NodeConfigDetails.DefinedTags) {
-		return errors.New(fmt.Sprintf("node shape mismatch"))
-	}
-	if !reflect.DeepEqual(r.NodeConfigDetails.Size, request2.NodeConfigDetails.Size) {
-		return errors.New(fmt.Sprintf("node shape mismatch"))
-	}
-	if !reflect.DeepEqual(r.NodeConfigDetails.PlacementConfigs, request2.NodeConfigDetails.PlacementConfigs) {
-		return errors.New(fmt.Sprintf("node shape mismatch"))
-	}
-	if !reflect.DeepEqual(r.NodeConfigDetails.FreeformTags, request2.NodeConfigDetails.FreeformTags) {
-		return errors.New(fmt.Sprintf("node shape mismatch"))
-	}
-	if !reflect.DeepEqual(r.NodeConfigDetails.NodePoolPodNetworkOptionDetails, request2.NodeConfigDetails.NodePoolPodNetworkOptionDetails) {
-		return errors.New(fmt.Sprintf("node shape mismatch"))
-	}
-	if !reflect.DeepEqual(r.NodeConfigDetails.NsgIds, request2.NodeConfigDetails.NsgIds) {
-		return errors.New(fmt.Sprintf("node shape mismatch"))
-	}
-	return nil
-}
diff --git a/config/crd/bases/infrastructure.cluster.x-k8s.io_ocimanagedmachinepools.yaml b/config/crd/bases/infrastructure.cluster.x-k8s.io_ocimanagedmachinepools.yaml
index fe632989..639431d2 100644
--- a/config/crd/bases/infrastructure.cluster.x-k8s.io_ocimanagedmachinepools.yaml
+++ b/config/crd/bases/infrastructure.cluster.x-k8s.io_ocimanagedmachinepools.yaml
@@ -205,6 +205,9 @@ spec:
                 description: SshPublicKey defines the SSH public key on each node
                   in the node pool on launch.
                 type: string
+              version:
+                description: Version represents the version of the OKE node pool.
+                type: string
             type: object
           status:
             description: OCIManagedMachinePoolStatus defines the observed state of
diff --git a/config/crd/bases/infrastructure.cluster.x-k8s.io_ocimanagedmachinepooltemplates.yaml b/config/crd/bases/infrastructure.cluster.x-k8s.io_ocimanagedmachinepooltemplates.yaml
index a4063dcc..1dc32b01 100644
--- a/config/crd/bases/infrastructure.cluster.x-k8s.io_ocimanagedmachinepooltemplates.yaml
+++ b/config/crd/bases/infrastructure.cluster.x-k8s.io_ocimanagedmachinepooltemplates.yaml
@@ -222,6 +222,10 @@ spec:
                         description: SshPublicKey defines the SSH public key on each
                           node in the node pool on launch.
                         type: string
+                      version:
+                        description: Version represents the version of the OKE node
+                          pool.
+                        type: string
                     type: object
                 required:
                 - spec
diff --git a/exp/api/v1beta1/ocimanagedmachinepool_types.go b/exp/api/v1beta1/ocimanagedmachinepool_types.go
index de4bb0a3..3fe214b0 100644
--- a/exp/api/v1beta1/ocimanagedmachinepool_types.go
+++ b/exp/api/v1beta1/ocimanagedmachinepool_types.go
@@ -21,6 +21,9 @@ type OCIManagedMachinePoolSpec struct {
 	// +optional
 	ProviderID *string `json:"providerID,omitempty"`
 
+	// Version represents the version of the OKE node pool.
+	Version *string `json:"version,omitempty"`
+
 	// ID is the OCID of the associated NodePool
 	// +optional
 	ID *string `json:"id,omitempty"`
diff --git a/exp/api/v1beta1/zz_generated.deepcopy.go b/exp/api/v1beta1/zz_generated.deepcopy.go
index c63ed3a0..822a4dc1 100644
--- a/exp/api/v1beta1/zz_generated.deepcopy.go
+++ b/exp/api/v1beta1/zz_generated.deepcopy.go
@@ -1037,6 +1037,11 @@ func (in *OCIManagedMachinePoolSpec) DeepCopyInto(out *OCIManagedMachinePoolSpec
 		*out = new(string)
 		**out = **in
 	}
+	if in.Version != nil {
+		in, out := &in.Version, &out.Version
+		*out = new(string)
+		**out = **in
+	}
 	if in.ID != nil {
 		in, out := &in.ID, &out.ID
 		*out = new(string)
diff --git a/exp/controllers/ocimanaged_machinepool_controller_test.go b/exp/controllers/ocimanaged_machinepool_controller_test.go
index cb2d6479..4c87d2fe 100644
--- a/exp/controllers/ocimanaged_machinepool_controller_test.go
+++ b/exp/controllers/ocimanaged_machinepool_controller_test.go
@@ -245,7 +245,7 @@ func TestNormalReconciliationFunction(t *testing.T) {
 			},
 		},
 		{
-			name:               "node pool in created, no update",
+			name:               "node pool is created, no update",
 			errorExpected:      false,
 			conditionAssertion: []conditionAssertion{{infrav1exp.NodePoolReadyCondition, corev1.ConditionTrue, "", ""}},
 			testSpecificSetup: func(machinePoolScope *scope.ManagedMachinePoolScope, okeClient *mock_containerengine.MockClient) {
@@ -291,7 +291,7 @@ func TestNormalReconciliationFunction(t *testing.T) {
 								FreeformTags:                   tags,
 								NodePoolPodNetworkOptionDetails: oke.OciVcnIpNativeNodePoolPodNetworkOptionDetails{
 									PodSubnetIds:   []string{"pod-subnet-id"},
-									MaxPodsPerNode: common.Int(15),
+									MaxPodsPerNode: common.Int(31),
 									PodNsgIds:      []string{"pod-nsg-id"},
 								},
 							},
@@ -350,7 +350,7 @@ func TestNormalReconciliationFunction(t *testing.T) {
 								FreeformTags:                   tags,
 								NodePoolPodNetworkOptionDetails: oke.OciVcnIpNativeNodePoolPodNetworkOptionDetails{
 									PodSubnetIds:   []string{"pod-subnet-id"},
-									MaxPodsPerNode: common.Int(15),
+									MaxPodsPerNode: common.Int(31),
 									PodNsgIds:      []string{"pod-nsg-id"},
 								},
 							},
@@ -633,6 +633,7 @@ func getOCIManagedMachinePool() *infrav1exp.OCIManagedMachinePool {
 				Key:   common.String("key"),
 				Value: common.String("value"),
 			}},
+			Version:   common.String("v1.24.5"),
 			NodeShape: "test-shape",
 			NodeShapeConfig: &infrav1exp.NodeShapeConfig{
 				Ocpus:       common.String("2"),
@@ -658,7 +659,7 @@ func getOCIManagedMachinePool() *infrav1exp.OCIManagedMachinePool {
 					CniType: infrav1exp.VCNNativeCNI,
 					VcnIpNativePodNetworkOptions: infrav1exp.VcnIpNativePodNetworkOptions{
 						SubnetNames:    []string{"pod-subnet"},
-						MaxPodsPerNode: common.Int(15),
+						MaxPodsPerNode: common.Int(31),
 						NSGNames:       []string{"pod-nsg"},
 					},
 				},
@@ -680,11 +681,7 @@ func getMachinePool() *expclusterv1.MachinePool {
 		},
 		Spec: expclusterv1.MachinePoolSpec{
 			Replicas: &replicas,
-			Template: clusterv1.MachineTemplateSpec{
-				Spec: clusterv1.MachineSpec{
-					Version: common.String("v1.24.5"),
-				},
-			},
+			Template: clusterv1.MachineTemplateSpec{},
 		},
 	}
 	return machinePool
diff --git a/templates/cluster-template-managed-private.yaml b/templates/cluster-template-managed-private.yaml
index c605a20d..359b8f24 100644
--- a/templates/cluster-template-managed-private.yaml
+++ b/templates/cluster-template-managed-private.yaml
@@ -78,8 +78,13 @@ metadata:
   name: ${CLUSTER_NAME}-mp-0
   namespace: default
 spec:
+  version: "${KUBERNETES_VERSION}"
   nodeShape: "${OCI_MANAGED_NODE_SHAPE}"
   sshPublicKey: "${OCI_SSH_KEY}"
   nodeSourceViaImage:
-    imageId: "${OCI_MANAGED_NODE_IMAGED_ID}"
+    imageId: "${OCI_MANAGED_NODE_IMAGE_ID}"
+    bootVolumeSizeInGBs: ${OCI_MANAGED_NODE_BOOT_VOLUME_SIZE=50}
+  nodeShapeConfig:
+    memoryInGBs: "${OCI_MANAGED_NODE_MACHINE_MEMORY=16}"
+    ocpus: "${OCI_MANAGED_NODE_MACHINE_TYPE_OCPUS=1}"
 ---
\ No newline at end of file
diff --git a/templates/cluster-template-managed.yaml b/templates/cluster-template-managed.yaml
index b47ae405..ad6c4567 100644
--- a/templates/cluster-template-managed.yaml
+++ b/templates/cluster-template-managed.yaml
@@ -59,6 +59,7 @@ metadata:
   name: ${CLUSTER_NAME}-mp-0
   namespace: default
 spec:
+  version: "${KUBERNETES_VERSION}"
   nodeShape: "${OCI_MANAGED_NODE_SHAPE}"
   sshPublicKey: "${OCI_SSH_KEY}"
   nodeSourceViaImage: