diff --git a/apis/v1alpha3/zz_generated.conversion.go b/apis/v1alpha3/zz_generated.conversion.go
index 489f69d30f..a7ed448425 100644
--- a/apis/v1alpha3/zz_generated.conversion.go
+++ b/apis/v1alpha3/zz_generated.conversion.go
@@ -1802,6 +1802,8 @@ func autoConvert_v1beta1_VirtualMachineCloneSpec_To_v1alpha3_VirtualMachineClone
 	}
 	out.NumCPUs = in.NumCPUs
 	out.NumCoresPerSocket = in.NumCoresPerSocket
+	// WARNING: in.CPUReservationMhz requires manual conversion: does not exist in peer-type
+	// WARNING: in.CPUShares requires manual conversion: does not exist in peer-type
 	out.MemoryMiB = in.MemoryMiB
 	out.DiskGiB = in.DiskGiB
 	// WARNING: in.AdditionalDisksGiB requires manual conversion: does not exist in peer-type
diff --git a/apis/v1alpha4/zz_generated.conversion.go b/apis/v1alpha4/zz_generated.conversion.go
index fd9ddcf91e..224902ee1c 100644
--- a/apis/v1alpha4/zz_generated.conversion.go
+++ b/apis/v1alpha4/zz_generated.conversion.go
@@ -1956,6 +1956,8 @@ func autoConvert_v1beta1_VirtualMachineCloneSpec_To_v1alpha4_VirtualMachineClone
 	}
 	out.NumCPUs = in.NumCPUs
 	out.NumCoresPerSocket = in.NumCoresPerSocket
+	// WARNING: in.CPUReservationMhz requires manual conversion: does not exist in peer-type
+	// WARNING: in.CPUShares requires manual conversion: does not exist in peer-type
 	out.MemoryMiB = in.MemoryMiB
 	out.DiskGiB = in.DiskGiB
 	// WARNING: in.AdditionalDisksGiB requires manual conversion: does not exist in peer-type
diff --git a/apis/v1beta1/types.go b/apis/v1beta1/types.go
index 143b09f149..5856238530 100644
--- a/apis/v1beta1/types.go
+++ b/apis/v1beta1/types.go
@@ -167,6 +167,16 @@ type VirtualMachineCloneSpec struct {
 	// virtual machine is cloned.
 	// +optional
 	NumCoresPerSocket int32 `json:"numCoresPerSocket,omitempty"`
+	// CPUReservationMhz is the amount of CPU in MHz that is guaranteed available to the virtual machine.
+	// Defaults to the eponymous property value in the template from which the
+	// virtual machine is cloned.
+	// +optional
+	CPUReservationMhz int64 `json:"cpuReservationMhz,omitempty"`
+	// CPUShares are a relative priority to other virtual machines used in case of resource contention.
+	// Defaults to the eponymous property value in the template from which the
+	// virtual machine is cloned.
+	// +optional
+	CPUShares int32 `json:"cpuShares,omitempty"`
 	// MemoryMiB is the size of a virtual machine's memory, in MiB.
 	// Defaults to the eponymous property value in the template from which the
 	// virtual machine is cloned.
diff --git a/config/default/crd/bases/infrastructure.cluster.x-k8s.io_vspheremachines.yaml b/config/default/crd/bases/infrastructure.cluster.x-k8s.io_vspheremachines.yaml
index ee54bd28d0..5cad474a7e 100644
--- a/config/default/crd/bases/infrastructure.cluster.x-k8s.io_vspheremachines.yaml
+++ b/config/default/crd/bases/infrastructure.cluster.x-k8s.io_vspheremachines.yaml
@@ -967,6 +967,20 @@ spec:
                   Defaults to LinkedClone, but fails gracefully to FullClone if the source
                   of the clone operation has no snapshots.
                 type: string
+              cpuReservationMhz:
+                description: |-
+                  CPUReservationMhz is the amount of CPU in MHz that is guaranteed available to the virtual machine.
+                  Defaults to the eponymous property value in the template from which the
+                  virtual machine is cloned.
+                format: int64
+                type: integer
+              cpuShares:
+                description: |-
+                  CPUShares are a relative priority to other virtual machines used in case of resource contention.
+                  Defaults to the eponymous property value in the template from which the
+                  virtual machine is cloned.
+                format: int32
+                type: integer
               customVMXKeys:
                 additionalProperties:
                   type: string
diff --git a/config/default/crd/bases/infrastructure.cluster.x-k8s.io_vspheremachinetemplates.yaml b/config/default/crd/bases/infrastructure.cluster.x-k8s.io_vspheremachinetemplates.yaml
index dbd1af75a0..e6b0c1fa35 100644
--- a/config/default/crd/bases/infrastructure.cluster.x-k8s.io_vspheremachinetemplates.yaml
+++ b/config/default/crd/bases/infrastructure.cluster.x-k8s.io_vspheremachinetemplates.yaml
@@ -837,6 +837,20 @@ spec:
                           Defaults to LinkedClone, but fails gracefully to FullClone if the source
                           of the clone operation has no snapshots.
                         type: string
+                      cpuReservationMhz:
+                        description: |-
+                          CPUReservationMhz is the amount of CPU in MHz that is guaranteed available to the virtual machine.
+                          Defaults to the eponymous property value in the template from which the
+                          virtual machine is cloned.
+                        format: int64
+                        type: integer
+                      cpuShares:
+                        description: |-
+                          CPUShares are a relative priority to other virtual machines used in case of resource contention.
+                          Defaults to the eponymous property value in the template from which the
+                          virtual machine is cloned.
+                        format: int32
+                        type: integer
                       customVMXKeys:
                         additionalProperties:
                           type: string
diff --git a/config/default/crd/bases/infrastructure.cluster.x-k8s.io_vspherevms.yaml b/config/default/crd/bases/infrastructure.cluster.x-k8s.io_vspherevms.yaml
index 6e02b89df7..76c10fe06e 100644
--- a/config/default/crd/bases/infrastructure.cluster.x-k8s.io_vspherevms.yaml
+++ b/config/default/crd/bases/infrastructure.cluster.x-k8s.io_vspherevms.yaml
@@ -1057,6 +1057,20 @@ spec:
                   Defaults to LinkedClone, but fails gracefully to FullClone if the source
                   of the clone operation has no snapshots.
                 type: string
+              cpuReservationMhz:
+                description: |-
+                  CPUReservationMhz is the amount of CPU in MHz that is guaranteed available to the virtual machine.
+                  Defaults to the eponymous property value in the template from which the
+                  virtual machine is cloned.
+                format: int64
+                type: integer
+              cpuShares:
+                description: |-
+                  CPUShares are a relative priority to other virtual machines used in case of resource contention.
+                  Defaults to the eponymous property value in the template from which the
+                  virtual machine is cloned.
+                format: int32
+                type: integer
               customVMXKeys:
                 additionalProperties:
                   type: string
diff --git a/pkg/services/govmomi/vcenter/clone.go b/pkg/services/govmomi/vcenter/clone.go
index 47b11651db..cd3d6c5ae8 100644
--- a/pkg/services/govmomi/vcenter/clone.go
+++ b/pkg/services/govmomi/vcenter/clone.go
@@ -212,6 +212,20 @@ func Clone(ctx context.Context, vmCtx *capvcontext.VMContext, bootstrapData []by
 		Snapshot: snapshotRef,
 	}
 
+	// Set CPU reservation and shares if specified
+	cpuAllocation := types.ResourceAllocationInfo{}
+	if vmCtx.VSphereVM.Spec.CPUReservationMhz > 0 {
+		cpuAllocation.Reservation = ptr.To(vmCtx.VSphereVM.Spec.CPUReservationMhz)
+	}
+	if vmCtx.VSphereVM.Spec.CPUShares > 0 {
+		cpuShares := types.SharesInfo{
+			Shares: vmCtx.VSphereVM.Spec.CPUShares,
+			Level:  types.SharesLevelCustom,
+		}
+		cpuAllocation.Shares = ptr.To(cpuShares)
+	}
+	spec.Config.CpuAllocation = ptr.To(cpuAllocation)
+
 	// For PCI devices, the memory for the VM needs to be reserved
 	// We can replace this once we have another way of reserving memory option
 	// exposed via the API types.