diff --git a/capi-lab/mini-lab b/capi-lab/mini-lab
index 4b32d5e..72acbfb 160000
--- a/capi-lab/mini-lab
+++ b/capi-lab/mini-lab
@@ -1 +1 @@
-Subproject commit 4b32d5e16de1b5205ffc1deaa1e1731a9c7c913b
+Subproject commit 72acbfbffce1866ea6ac8352f38506c5e2f95291
diff --git a/capi-lab/mini-lab-overrides/extra-vars.yaml b/capi-lab/mini-lab-overrides/extra-vars.yaml
index afe306e..659ff4d 100644
--- a/capi-lab/mini-lab-overrides/extra-vars.yaml
+++ b/capi-lab/mini-lab-overrides/extra-vars.yaml
@@ -11,22 +11,22 @@ metal_partition_metal_api_basepath: "/"
 metal_partition_mgmt_gateway: 203.0.113.1
 
 metal_api_images:
-- id: firewall-ubuntu-3.0
-  name: Firewall 3 Ubuntu
-  description: Firewall 3 Ubuntu Latest Release
-  url: https://images.metal-stack.io/metal-os/stable/firewall/3.0-ubuntu/img.tar.lz4
-  features:
-    - firewall
-- id: ubuntu-24.04
-  name: Ubuntu 24.04 with Kubernetes 1.30.6
-  description: Ubuntu 24.04 with Kubernetes 1.30.6
-  url: https://images.metal-stack.io/metal-os/pull_requests/273-cluster-api-k8s-v1.30.6/cluster-api/cluster-api-k8s-1.30.6/img.tar.lz4
-  features:
-    - machine
+  - id: firewall-ubuntu-3.0
+    name: Firewall 3 Ubuntu
+    description: Firewall 3 Ubuntu Latest Release
+    url: https://images.metal-stack.io/metal-os/stable/firewall/3.0-ubuntu/img.tar.lz4
+    features:
+      - firewall
+  - id: ubuntu-24.04
+    name: Ubuntu 24.04 with Kubernetes 1.30.6
+    description: Ubuntu 24.04 with Kubernetes 1.30.6
+    url: https://images.metal-stack.io/metal-os/pull_requests/273-cluster-api-k8s-v1.30.6/cluster-api/cluster-api-k8s-1.30.6/img.tar.lz4
+    features:
+      - machine
 
 sonic_mgmtif_gateway: "203.0.113.1"
 
 sonic_nameservers:
   - "203.0.113.1"
   - "1.1.1.1"
-  - "1.0.0.1"
\ No newline at end of file
+  - "1.0.0.1"
diff --git a/internal/controller/metalstackmachine_controller.go b/internal/controller/metalstackmachine_controller.go
index e38dfac..be2f305 100644
--- a/internal/controller/metalstackmachine_controller.go
+++ b/internal/controller/metalstackmachine_controller.go
@@ -203,6 +203,8 @@ func (r *machineReconciler) reconcile() (ctrl.Result, error) {
 	}
 	r.infraMachine.Spec.ProviderID = encodeProviderID(m)
 
+	r.patchMachineLabels(m)
+
 	result := ctrl.Result{}
 
 	isReady, err := r.getMachineStatus(m)
@@ -296,7 +298,7 @@ func (r *machineReconciler) create() (*models.V1MachineResponse, error) {
 		Partitionid:   &r.infraCluster.Spec.Partition,
 		Projectid:     &r.infraCluster.Spec.ProjectID,
 		PlacementTags: []string{tag.New(tag.ClusterID, string(r.infraCluster.GetUID()))},
-		Tags:          r.machineTags(),
+		Tags:          append(r.machineTags(), r.additionalMachineTags()...),
 		Name:          r.infraMachine.Name,
 		Hostname:      r.infraMachine.Name,
 		Sizeid:        &r.infraMachine.Spec.Size,
@@ -392,6 +394,31 @@ func (r *machineReconciler) findProviderMachine() (*models.V1MachineResponse, er
 	}
 }
 
+func (r *machineReconciler) patchMachineLabels(m *models.V1MachineResponse) {
+	if r.infraMachine.Labels == nil {
+		r.infraMachine.Labels = make(map[string]string)
+	}
+
+	if m.Allocation != nil && m.Allocation.Hostname != nil {
+		r.infraMachine.Labels[corev1.LabelHostname] = *m.Allocation.Hostname
+	}
+	if m.Partition != nil && m.Partition.ID != nil {
+		r.infraMachine.Labels[corev1.LabelTopologyZone] = *m.Partition.ID
+	}
+	if m.Rackid != "" {
+		r.infraMachine.Labels[tag.MachineRack] = m.Rackid
+	}
+
+	tagMap := tag.NewTagMap(m.Tags)
+
+	if asn, ok := tagMap.Value(tag.MachineNetworkPrimaryASN); ok {
+		r.infraMachine.Labels[tag.MachineNetworkPrimaryASN] = asn
+	}
+	if chassis, ok := tagMap.Value(tag.MachineChassis); ok {
+		r.infraMachine.Labels[tag.MachineChassis] = chassis
+	}
+}
+
 func (r *machineReconciler) machineTags() []string {
 	tags := []string{
 		tag.New(tag.ClusterID, string(r.infraCluster.GetUID())),
@@ -405,6 +432,15 @@ func (r *machineReconciler) machineTags() []string {
 	return tags
 }
 
+func (r *machineReconciler) additionalMachineTags() []string {
+	tags := []string{
+		tag.New(corev1.LabelTopologyZone, r.infraCluster.Spec.Partition),
+		tag.New(corev1.LabelHostname, r.infraMachine.Name),
+	}
+
+	return tags
+}
+
 func encodeProviderID(m *models.V1MachineResponse) string {
 	return fmt.Sprintf("metal://%s/%s", pointer.SafeDeref(pointer.SafeDeref(m.Partition).ID), pointer.SafeDeref(m.ID))
 }