diff --git a/cluster-autoscaler/cloudprovider/gce/gce_manager.go b/cluster-autoscaler/cloudprovider/gce/gce_manager.go
index 35caf937d24c..afb285324980 100644
--- a/cluster-autoscaler/cloudprovider/gce/gce_manager.go
+++ b/cluster-autoscaler/cloudprovider/gce/gce_manager.go
@@ -455,13 +455,19 @@ func (m *gceManagerImpl) fetchAutoMigs() error {
 					return err
 				} else {
 					// Skip migs whose instance templates don't have the corresponding config labels
+					var labelMismatch bool
 					for k, v := range cfg.Labels {
 						if instanceTemplate.Properties.Labels[k] != v {
 							klog.V(4).Infof("Instance template %s missing label %s=%s.\nIgnoring mig %s", instanceTemplate.Name, k, v, mig.GceRef().Name)
-							continue
+							labelMismatch = true
+							break
 						}
 					}
 
+					if labelMismatch {
+						continue
+					}
+
 					// Update the min size of mig config based on labels in the instance template
 					if val, ok := instanceTemplate.Properties.Labels[migAutoDiscovererKeyMinNodes]; ok {
 						if m, err := strconv.Atoi(val); err != nil {
@@ -479,6 +485,12 @@ func (m *gceManagerImpl) fetchAutoMigs() error {
 							cfg.MaxSize = m
 						}
 					}
+
+					// Rebuild the mig with updated min and max sizes
+					mig, err = m.buildMigFromAutoCfg(link, cfg)
+					if err != nil {
+						return err
+					}
 				}
 			}