diff --git a/controllers/awscluster_controller.go b/controllers/awscluster_controller.go
index d0ffbbc462..dc28cdaa63 100644
--- a/controllers/awscluster_controller.go
+++ b/controllers/awscluster_controller.go
@@ -312,6 +312,11 @@ func (r *AWSClusterReconciler) reconcileLoadBalancer(ctx context.Context, cluste
 }
 
 func (r *AWSClusterReconciler) reconcileNormal(ctx context.Context, clusterScope *scope.ClusterScope) (reconcile.Result, error) {
+	if !clusterScope.Cluster.DeletionTimestamp.IsZero() {
+		clusterScope.Info("Cluster owning the AWSCluster is being deleted, skipping reconciliation")
+		return reconcile.Result{}, nil
+	}
+
 	clusterScope.Info("Reconciling AWSCluster")
 
 	awsCluster := clusterScope.AWSCluster
diff --git a/controllers/awscluster_controller_unit_test.go b/controllers/awscluster_controller_unit_test.go
index ee2d0bb9cf..973754736c 100644
--- a/controllers/awscluster_controller_unit_test.go
+++ b/controllers/awscluster_controller_unit_test.go
@@ -72,6 +72,12 @@ func TestAWSClusterReconcilerReconcile(t *testing.T) {
 			ownerCluster: &clusterv1.Cluster{ObjectMeta: metav1.ObjectMeta{GenerateName: "capi-test-"}},
 			expectError:  false,
 		},
+		{
+			name:         "Should not Reconcile if owner cluster is deleted",
+			awsCluster:   &infrav1.AWSCluster{ObjectMeta: metav1.ObjectMeta{GenerateName: "aws-test-"}},
+			ownerCluster: &clusterv1.Cluster{ObjectMeta: metav1.ObjectMeta{GenerateName: "capi-test-", DeletionTimestamp: &metav1.Time{Time: time.Now()}}},
+			expectError:  false,
+		},
 		{
 			name:        "Should Reconcile successfully if no AWSCluster found",
 			expectError: false,