diff --git a/go-controller/pkg/clustermanager/egressip_controller.go b/go-controller/pkg/clustermanager/egressip_controller.go
index 70ec7a58e2..8b3fec43ba 100644
--- a/go-controller/pkg/clustermanager/egressip_controller.go
+++ b/go-controller/pkg/clustermanager/egressip_controller.go
@@ -36,6 +36,7 @@ import (
 	"github.com/ovn-org/ovn-kubernetes/go-controller/pkg/types"
 	"github.com/ovn-org/ovn-kubernetes/go-controller/pkg/util"
 	utilerrors "github.com/ovn-org/ovn-kubernetes/go-controller/pkg/util/errors"
+	"k8s.io/apimachinery/pkg/api/meta"
 )
 
 const (
@@ -211,6 +212,26 @@ func (eIPC *egressIPClusterController) executeCloudPrivateIPConfigOps(egressIPNa
 				if cloudPrivateIPConfig.GetDeletionTimestamp() != nil && !cloudPrivateIPConfig.GetDeletionTimestamp().IsZero() {
 					return fmt.Errorf("cloud update request failed, CloudPrivateIPConfig: %s is being deleted", cloudPrivateIPConfigName)
 				}
+
+				// Handle a scenario in which the object exists in a failed state by removing it
+				assignedCondition := meta.FindStatusCondition(cloudPrivateIPConfig.Status.Conditions, string(ocpcloudnetworkapi.Assigned))
+				if assignedCondition != nil && assignedCondition.Status == metav1.ConditionFalse {
+					klog.Warningf("CloudPrivateIPConfig: %s is in Failed state (reason: %s), deleting to allow retry", cloudPrivateIPConfigName, assignedCondition.Message)
+					eIPRef := corev1.ObjectReference{
+						Kind: "EgressIP",
+						Name: egressIPName,
+					}
+					eIPC.recorder.Eventf(&eIPRef, corev1.EventTypeWarning, "CloudAssignmentRetry",
+						"egress IP: %s previously failed on node %s (reason: %s), will retry assignment",
+						egressIP, cloudPrivateIPConfig.Spec.Node, assignedCondition.Message)
+					if err := eIPC.kube.DeleteCloudPrivateIPConfig(cloudPrivateIPConfigName); err != nil {
+						return fmt.Errorf("failed to delete failed CloudPrivateIPConfig: %s, err: %v", cloudPrivateIPConfigName, err)
+					}
+
+					// Return an error to trigger retry
+					return fmt.Errorf("deleted failed CloudPrivateIPConfig: %s, will retry creation in next reconciliation", cloudPrivateIPConfigName)
+				}
+
 				if op.toAdd == cloudPrivateIPConfig.Spec.Node {
 					klog.Infof("CloudPrivateIPConfig: %s already assigned to node: %s", cloudPrivateIPConfigName, cloudPrivateIPConfig.Spec.Node)
 					continue
@@ -1498,18 +1519,20 @@ func (eIPC *egressIPClusterController) reconcileCloudPrivateIPConfig(old, new *o
 	}
 	if new != nil {
 		newCloudPrivateIPConfig = new
+		assignedCondition := meta.FindStatusCondition(newCloudPrivateIPConfig.Status.Conditions, string(ocpcloudnetworkapi.Assigned))
 		// We should only proceed to setting things up for objects where the new
 		// object has the same .spec.node and .status.node, and assignment
 		// condition being true. This is how the cloud-network-config-controller
 		// indicates a successful cloud assignment.
-		shouldAdd = newCloudPrivateIPConfig.Status.Node == newCloudPrivateIPConfig.Spec.Node &&
-			ocpcloudnetworkapi.CloudPrivateIPConfigConditionType(newCloudPrivateIPConfig.Status.Conditions[0].Type) == ocpcloudnetworkapi.Assigned &&
-			corev1.ConditionStatus(newCloudPrivateIPConfig.Status.Conditions[0].Status) == corev1.ConditionTrue
+		shouldAdd = newCloudPrivateIPConfig.Status.Node == newCloudPrivateIPConfig.Spec.Node && assignedCondition != nil && assignedCondition.Status == metav1.ConditionTrue
 		// See above explanation for the delete
 		shouldDelete = shouldDelete &&
 			(newCloudPrivateIPConfig.Status.Node == "" || newCloudPrivateIPConfig.Status.Node != oldCloudPrivateIPConfig.Status.Node) &&
-			ocpcloudnetworkapi.CloudPrivateIPConfigConditionType(newCloudPrivateIPConfig.Status.Conditions[0].Type) == ocpcloudnetworkapi.Assigned &&
-			corev1.ConditionStatus(newCloudPrivateIPConfig.Status.Conditions[0].Status) == corev1.ConditionTrue
+			assignedCondition != nil && assignedCondition.Status == metav1.ConditionTrue
+
+		// Handle CloudPrivateIPConfigs that transitioned into a failed state
+		shouldDelete = shouldDelete || assignedCondition != nil && assignedCondition.Status == metav1.ConditionFalse
+
 		// On UPDATE we need to delete the old .status.node
 		if shouldDelete {
 			nodeToDelete = oldCloudPrivateIPConfig.Status.Node
@@ -1570,7 +1593,7 @@ func (eIPC *egressIPClusterController) reconcileCloudPrivateIPConfig(old, new *o
 		}
 		for _, resyncEgressIP := range resyncEgressIPs {
 			if err := eIPC.reconcileEgressIP(nil, resyncEgressIP); err != nil {
-				return fmt.Errorf("synthetic update for EgressIP: %s failed, err: %v", egressIP.Name, err)
+				return fmt.Errorf("synthetic update for EgressIP: %s failed, err: %v", resyncEgressIP.Name, err)
 			}
 		}
 	}