diff --git a/pkg/services/govmomi/vcenter/clone.go b/pkg/services/govmomi/vcenter/clone.go
index 767899d3e2..c6d1e1d188 100644
--- a/pkg/services/govmomi/vcenter/clone.go
+++ b/pkg/services/govmomi/vcenter/clone.go
@@ -25,7 +25,6 @@ import (
 	"github.com/vmware/govmomi/object"
 	"github.com/vmware/govmomi/pbm"
 	pbmTypes "github.com/vmware/govmomi/pbm/types"
-	"github.com/vmware/govmomi/view"
 	"github.com/vmware/govmomi/vim25/mo"
 	"github.com/vmware/govmomi/vim25/types"
 	"k8s.io/utils/pointer"
@@ -229,27 +228,31 @@ func Clone(ctx *context.VMContext, bootstrapData []byte, format bootstrapv1.Form
 			return errors.Wrapf(err, "unable to get storageProfileID from name %s for %q", ctx.VSphereVM.Spec.StoragePolicyName, ctx)
 		}
 
-		kind := []string{"Datastore"}
-		m := view.NewManager(ctx.Session.Client.Client)
-
-		v, err := m.CreateContainerView(ctx, ctx.Session.Client.Client.ServiceContent.RootFolder, kind, true)
-		if err != nil {
-			return errors.Wrapf(err, "unable to create container view for Datastore for %q", ctx)
-		}
-
-		var content []types.ObjectContent
-		err = v.Retrieve(ctx, kind, []string{"name"}, &content)
-		_ = v.Destroy(ctx)
-		if err != nil {
-			return errors.Wrapf(err, "unable to retrieve container view for Datastore for %q", ctx)
-		}
-
 		var hubs []pbmTypes.PbmPlacementHub
-		for _, ds := range content {
+
+		// If there's a Datastore configured, it should be the only one for which we check if it matches the requirements of the Storage Policy
+		if datastoreRef != nil {
 			hubs = append(hubs, pbmTypes.PbmPlacementHub{
-				HubType: ds.Obj.Type,
-				HubId:   ds.Obj.Value,
+				HubType: datastoreRef.Type,
+				HubId:   datastoreRef.Value,
 			})
+		} else {
+			// Otherwise we should get just the Datastores connected to our pool
+			cluster, err := pool.Owner(ctx)
+			if err != nil {
+				return errors.Wrapf(err, "failed to get owning cluster of resourcepool %q to calculate datastore based on storage policy", pool)
+			}
+			dsGetter := object.NewComputeResource(ctx.Session.Client.Client, cluster.Reference())
+			datastores, err := dsGetter.Datastores(ctx)
+			if err != nil {
+				return errors.Wrapf(err, "unable to list datastores from owning cluster of requested resourcepool")
+			}
+			for _, ds := range datastores {
+				hubs = append(hubs, pbmTypes.PbmPlacementHub{
+					HubType: ds.Reference().Type,
+					HubId:   ds.Reference().Value,
+				})
+			}
 		}
 
 		var constraints []pbmTypes.BasePbmPlacementRequirement
@@ -263,25 +266,18 @@ func Clone(ctx *context.VMContext, bootstrapData []byte, format bootstrapv1.Form
 			return fmt.Errorf("no compatible datastores found for storage policy: %s", ctx.VSphereVM.Spec.StoragePolicyName)
 		}
 
-		if datastoreRef != nil {
-			ctx.Logger.Info("datastore and storagepolicy defined; searching for datastore in storage policy compatible datastores")
-			found := false
-			for _, ds := range result.CompatibleDatastores() {
-				compatibleRef := types.ManagedObjectReference{Type: ds.HubType, Value: ds.HubId}
-				if compatibleRef.String() == datastoreRef.String() {
-					found = true
-				}
-			}
-			if !found {
-				return fmt.Errorf("couldn't find specified datastore: %s in compatible list of datastores for storage policy", ctx.VSphereVM.Spec.Datastore)
-			}
-		} else {
+		// If datastoreRef is nil here it means that the user didn't specify a Datastore. So we should
+		// select one of the datastores of the owning cluster of the resource pool that matched the
+		// requirements of the storage policy.
+		if datastoreRef == nil {
 			r := rand.New(rand.NewSource(time.Now().UnixNano())) //nolint:gosec
 			ds := result.CompatibleDatastores()[r.Intn(len(result.CompatibleDatastores()))]
 			datastoreRef = &types.ManagedObjectReference{Type: ds.HubType, Value: ds.HubId}
 		}
 	}
 
+	// if datastoreRef is nil here, means that user didn't specified a datastore NOR a
+	// storagepolicy, so we should select the default
 	if datastoreRef == nil {
 		// if no datastore defined through VM spec or storage policy, use default
 		datastore, err := ctx.Session.Finder.DefaultDatastore(ctx)
@@ -294,6 +290,7 @@ func Clone(ctx *context.VMContext, bootstrapData []byte, format bootstrapv1.Form
 	disks := devices.SelectByType((*types.VirtualDisk)(nil))
 	isLinkedClone := snapshotRef != nil
 	spec.Location.Disk = getDiskLocators(disks, *datastoreRef, isLinkedClone)
+	spec.Location.Datastore = datastoreRef
 
 	ctx.Logger.Info("cloning machine", "namespace", ctx.VSphereVM.Namespace, "name", ctx.VSphereVM.Name, "cloneType", ctx.VSphereVM.Status.CloneMode)
 	task, err := tpl.Clone(ctx, folder, ctx.VSphereVM.Name, spec)