diff --git a/pkg/provider/azure_instances.go b/pkg/provider/azure_instances.go
index 6a95eee054..7d47fbe5d5 100644
--- a/pkg/provider/azure_instances.go
+++ b/pkg/provider/azure_instances.go
@@ -227,6 +227,15 @@ func (az *Cloud) InstanceExists(ctx context.Context, node *v1.Node) (bool, error
 	if node == nil {
 		return false, nil
 	}
+	unmanaged, err := az.IsNodeUnmanaged(node.Name)
+	if err != nil {
+		return false, err
+	}
+	if unmanaged {
+		klog.V(4).Infof("InstanceExists: omitting unmanaged node %q", node.Name)
+		return false, nil
+	}
+
 	providerID := node.Spec.ProviderID
 	if providerID == "" {
 		var err error
@@ -297,6 +306,14 @@ func (az *Cloud) InstanceShutdown(ctx context.Context, node *v1.Node) (bool, err
 	if node == nil {
 		return false, nil
 	}
+	unmanaged, err := az.IsNodeUnmanaged(node.Name)
+	if err != nil {
+		return false, err
+	}
+	if unmanaged {
+		klog.V(4).Infof("InstanceShutdown: omitting unmanaged node %q", node.Name)
+		return false, nil
+	}
 	providerID := node.Spec.ProviderID
 	if providerID == "" {
 		var err error
@@ -492,11 +509,18 @@ func (az *Cloud) CurrentNodeName(ctx context.Context, hostname string) (types.No
 // translated into specific fields in the Node object on registration.
 // Use the node.name or node.spec.providerID field to find the node in the cloud provider.
 func (az *Cloud) InstanceMetadata(ctx context.Context, node *v1.Node) (*cloudprovider.InstanceMetadata, error) {
+	meta := cloudprovider.InstanceMetadata{}
 	if node == nil {
-		return &cloudprovider.InstanceMetadata{}, nil
+		return &meta, nil
+	}
+	unmanaged, err := az.IsNodeUnmanaged(node.Name)
+	if err != nil {
+		return &meta, err
+	}
+	if unmanaged {
+		klog.V(4).Infof("InstanceMetadata: omitting unmanaged node %q", node.Name)
+		return &meta, nil
 	}
-
-	meta := cloudprovider.InstanceMetadata{}
 
 	if node.Spec.ProviderID != "" {
 		meta.ProviderID = node.Spec.ProviderID
diff --git a/pkg/provider/azure_instances_test.go b/pkg/provider/azure_instances_test.go
index 89955bbf91..7719f7698a 100644
--- a/pkg/provider/azure_instances_test.go
+++ b/pkg/provider/azure_instances_test.go
@@ -24,6 +24,7 @@ import (
 	"strings"
 	"testing"
 
+	"k8s.io/apimachinery/pkg/util/sets"
 	"k8s.io/apimachinery/pkg/util/wait"
 
 	"github.com/Azure/azure-sdk-for-go/services/compute/mgmt/2022-03-01/compute"
@@ -880,7 +881,20 @@ func TestInstanceMetadata(t *testing.T) {
 	ctrl := gomock.NewController(t)
 	defer ctrl.Finish()
 
-	t.Run("", func(t *testing.T) {
+	t.Run("instance not exists", func(t *testing.T) {
+		cloud := GetTestCloud(ctrl)
+		cloud.unmanagedNodes = sets.New("node0")
+
+		meta, err := cloud.InstanceMetadata(context.Background(), &v1.Node{
+			ObjectMeta: metav1.ObjectMeta{
+				Name: "node0",
+			},
+		})
+		assert.NoError(t, err)
+		assert.Equal(t, cloudprovider.InstanceMetadata{}, *meta)
+	})
+
+	t.Run("instance exists", func(t *testing.T) {
 		cloud := GetTestCloud(ctrl)
 		expectedVM := buildDefaultTestVirtualMachine("as", []string{"/subscriptions/subscription/resourceGroups/rg/providers/Microsoft.Network/networkInterfaces/k8s-agentpool1-00000000-nic-1"})
 		expectedVM.HardwareProfile = &compute.HardwareProfile{