diff --git a/Makefile b/Makefile
index f8bfd389..bdd01637 100644
--- a/Makefile
+++ b/Makefile
@@ -293,7 +293,7 @@ E2E_TIMEOUT ?= 3h
 run-e2e: e2e-essentials ## Run e2e testing. JOB is an optional REGEXP to select certainn test cases to run. e.g. JOB=PR-Blocking, JOB=Conformance
 	$(KUBECTL) apply -f cloud-config.yaml && \
 	cd test/e2e && \
-	$(GINKGO) -v --trace --tags=e2e --focus=$(JOB) --timeout=$(E2E_TIMEOUT) --skip=Conformance --skip-package=kubeconfig_helper --nodes=1 --no-color=false ./... -- \
+	$(GINKGO) -vv --trace --tags=e2e --focus=$(JOB) --timeout=$(E2E_TIMEOUT) --skip=Conformance --skip-package=kubeconfig_helper --nodes=1 --no-color=false ./... -- \
 	    -e2e.artifacts-folder=${REPO_ROOT}/_artifacts \
 	    -e2e.config=${E2E_CONFIG} \
 	    -e2e.skip-resource-cleanup=false -e2e.use-existing-cluster=true
diff --git a/api/v1beta1/conversion.go b/api/v1beta1/conversion.go
index 236685f6..3436aa59 100644
--- a/api/v1beta1/conversion.go
+++ b/api/v1beta1/conversion.go
@@ -51,7 +51,7 @@ func Convert_v1beta1_CloudStackCluster_To_v1beta3_CloudStackCluster(in *CloudSta
 //nolint:golint,revive,stylecheck
 func Convert_v1beta3_CloudStackCluster_To_v1beta1_CloudStackCluster(in *v1beta3.CloudStackCluster, out *CloudStackCluster, scope conv.Scope) error {
 	if len(in.Spec.FailureDomains) < 1 {
-		return fmt.Errorf("v1beta3 to v1beta1 conversion not supported when < 1 failure domain is provided. Input CloudStackCluster spec %s", in.Spec)
+		return fmt.Errorf("v1beta3 to v1beta1 conversion not supported when < 1 failure domain is provided. Input CloudStackCluster spec %s", fmt.Sprintf("%v", in.Spec))
 	}
 	out.ObjectMeta = in.ObjectMeta
 	out.Spec = CloudStackClusterSpec{
diff --git a/api/v1beta2/cloudstackcluster_conversion.go b/api/v1beta2/cloudstackcluster_conversion.go
index 31fd3c20..dbd8a21a 100644
--- a/api/v1beta2/cloudstackcluster_conversion.go
+++ b/api/v1beta2/cloudstackcluster_conversion.go
@@ -17,6 +17,7 @@ limitations under the License.
 package v1beta2
 
 import (
+	machineryconversion "k8s.io/apimachinery/pkg/conversion"
 	"sigs.k8s.io/cluster-api-provider-cloudstack/api/v1beta3"
 	"sigs.k8s.io/controller-runtime/pkg/conversion"
 )
@@ -30,3 +31,11 @@ func (dst *CloudStackCluster) ConvertFrom(srcRaw conversion.Hub) error { // noli
 	src := srcRaw.(*v1beta3.CloudStackCluster)
 	return Convert_v1beta3_CloudStackCluster_To_v1beta2_CloudStackCluster(src, dst, nil)
 }
+
+func Convert_v1beta3_CloudStackClusterSpec_To_v1beta2_CloudStackClusterSpec(in *v1beta3.CloudStackClusterSpec, out *CloudStackClusterSpec, s machineryconversion.Scope) error { // nolint
+	return autoConvert_v1beta3_CloudStackClusterSpec_To_v1beta2_CloudStackClusterSpec(in, out, s)
+}
+
+func Convert_v1beta3_CloudStackClusterStatus_To_v1beta2_CloudStackClusterStatus(in *v1beta3.CloudStackClusterStatus, out *CloudStackClusterStatus, s machineryconversion.Scope) error { // nolint
+	return autoConvert_v1beta3_CloudStackClusterStatus_To_v1beta2_CloudStackClusterStatus(in, out, s)
+}
diff --git a/api/v1beta2/zz_generated.conversion.go b/api/v1beta2/zz_generated.conversion.go
index 026a8bd5..9573ab25 100644
--- a/api/v1beta2/zz_generated.conversion.go
+++ b/api/v1beta2/zz_generated.conversion.go
@@ -103,21 +103,11 @@ func RegisterConversions(s *runtime.Scheme) error {
 	}); err != nil {
 		return err
 	}
-	if err := s.AddGeneratedConversionFunc((*v1beta3.CloudStackClusterSpec)(nil), (*CloudStackClusterSpec)(nil), func(a, b interface{}, scope conversion.Scope) error {
-		return Convert_v1beta3_CloudStackClusterSpec_To_v1beta2_CloudStackClusterSpec(a.(*v1beta3.CloudStackClusterSpec), b.(*CloudStackClusterSpec), scope)
-	}); err != nil {
-		return err
-	}
 	if err := s.AddGeneratedConversionFunc((*CloudStackClusterStatus)(nil), (*v1beta3.CloudStackClusterStatus)(nil), func(a, b interface{}, scope conversion.Scope) error {
 		return Convert_v1beta2_CloudStackClusterStatus_To_v1beta3_CloudStackClusterStatus(a.(*CloudStackClusterStatus), b.(*v1beta3.CloudStackClusterStatus), scope)
 	}); err != nil {
 		return err
 	}
-	if err := s.AddGeneratedConversionFunc((*v1beta3.CloudStackClusterStatus)(nil), (*CloudStackClusterStatus)(nil), func(a, b interface{}, scope conversion.Scope) error {
-		return Convert_v1beta3_CloudStackClusterStatus_To_v1beta2_CloudStackClusterStatus(a.(*v1beta3.CloudStackClusterStatus), b.(*CloudStackClusterStatus), scope)
-	}); err != nil {
-		return err
-	}
 	if err := s.AddGeneratedConversionFunc((*CloudStackFailureDomain)(nil), (*v1beta3.CloudStackFailureDomain)(nil), func(a, b interface{}, scope conversion.Scope) error {
 		return Convert_v1beta2_CloudStackFailureDomain_To_v1beta3_CloudStackFailureDomain(a.(*CloudStackFailureDomain), b.(*v1beta3.CloudStackFailureDomain), scope)
 	}); err != nil {
@@ -358,6 +348,16 @@ func RegisterConversions(s *runtime.Scheme) error {
 	}); err != nil {
 		return err
 	}
+	if err := s.AddConversionFunc((*v1beta3.CloudStackClusterSpec)(nil), (*CloudStackClusterSpec)(nil), func(a, b interface{}, scope conversion.Scope) error {
+		return Convert_v1beta3_CloudStackClusterSpec_To_v1beta2_CloudStackClusterSpec(a.(*v1beta3.CloudStackClusterSpec), b.(*CloudStackClusterSpec), scope)
+	}); err != nil {
+		return err
+	}
+	if err := s.AddConversionFunc((*v1beta3.CloudStackClusterStatus)(nil), (*CloudStackClusterStatus)(nil), func(a, b interface{}, scope conversion.Scope) error {
+		return Convert_v1beta3_CloudStackClusterStatus_To_v1beta2_CloudStackClusterStatus(a.(*v1beta3.CloudStackClusterStatus), b.(*CloudStackClusterStatus), scope)
+	}); err != nil {
+		return err
+	}
 	if err := s.AddConversionFunc((*v1beta3.CloudStackFailureDomainSpec)(nil), (*CloudStackFailureDomainSpec)(nil), func(a, b interface{}, scope conversion.Scope) error {
 		return Convert_v1beta3_CloudStackFailureDomainSpec_To_v1beta2_CloudStackFailureDomainSpec(a.(*v1beta3.CloudStackFailureDomainSpec), b.(*CloudStackFailureDomainSpec), scope)
 	}); err != nil {
@@ -579,14 +579,10 @@ func autoConvert_v1beta3_CloudStackClusterSpec_To_v1beta2_CloudStackClusterSpec(
 		out.FailureDomains = nil
 	}
 	out.ControlPlaneEndpoint = in.ControlPlaneEndpoint
+	// WARNING: in.SyncWithACS requires manual conversion: does not exist in peer-type
 	return nil
 }
 
-// Convert_v1beta3_CloudStackClusterSpec_To_v1beta2_CloudStackClusterSpec is an autogenerated conversion function.
-func Convert_v1beta3_CloudStackClusterSpec_To_v1beta2_CloudStackClusterSpec(in *v1beta3.CloudStackClusterSpec, out *CloudStackClusterSpec, s conversion.Scope) error {
-	return autoConvert_v1beta3_CloudStackClusterSpec_To_v1beta2_CloudStackClusterSpec(in, out, s)
-}
-
 func autoConvert_v1beta2_CloudStackClusterStatus_To_v1beta3_CloudStackClusterStatus(in *CloudStackClusterStatus, out *v1beta3.CloudStackClusterStatus, s conversion.Scope) error {
 	out.FailureDomains = *(*v1beta1.FailureDomains)(unsafe.Pointer(&in.FailureDomains))
 	out.Ready = in.Ready
@@ -600,15 +596,11 @@ func Convert_v1beta2_CloudStackClusterStatus_To_v1beta3_CloudStackClusterStatus(
 
 func autoConvert_v1beta3_CloudStackClusterStatus_To_v1beta2_CloudStackClusterStatus(in *v1beta3.CloudStackClusterStatus, out *CloudStackClusterStatus, s conversion.Scope) error {
 	out.FailureDomains = *(*v1beta1.FailureDomains)(unsafe.Pointer(&in.FailureDomains))
+	// WARNING: in.CloudStackClusterID requires manual conversion: does not exist in peer-type
 	out.Ready = in.Ready
 	return nil
 }
 
-// Convert_v1beta3_CloudStackClusterStatus_To_v1beta2_CloudStackClusterStatus is an autogenerated conversion function.
-func Convert_v1beta3_CloudStackClusterStatus_To_v1beta2_CloudStackClusterStatus(in *v1beta3.CloudStackClusterStatus, out *CloudStackClusterStatus, s conversion.Scope) error {
-	return autoConvert_v1beta3_CloudStackClusterStatus_To_v1beta2_CloudStackClusterStatus(in, out, s)
-}
-
 func autoConvert_v1beta2_CloudStackFailureDomain_To_v1beta3_CloudStackFailureDomain(in *CloudStackFailureDomain, out *v1beta3.CloudStackFailureDomain, s conversion.Scope) error {
 	out.ObjectMeta = in.ObjectMeta
 	if err := Convert_v1beta2_CloudStackFailureDomainSpec_To_v1beta3_CloudStackFailureDomainSpec(&in.Spec, &out.Spec, s); err != nil {
diff --git a/api/v1beta3/cloudstackcluster_types.go b/api/v1beta3/cloudstackcluster_types.go
index 1b47ff89..08b68d58 100644
--- a/api/v1beta3/cloudstackcluster_types.go
+++ b/api/v1beta3/cloudstackcluster_types.go
@@ -34,6 +34,10 @@ type CloudStackClusterSpec struct {
 
 	// The kubernetes control plane endpoint.
 	ControlPlaneEndpoint clusterv1.APIEndpoint `json:"controlPlaneEndpoint"`
+
+	// SyncWithACS determines if an externalManaged CKS cluster should be created on ACS.
+	// +optional
+	SyncWithACS bool `json:"syncWithACS,omitempty"`
 }
 
 // The status of the CloudStackCluster object.
@@ -43,6 +47,10 @@ type CloudStackClusterStatus struct {
 	// +optional
 	FailureDomains clusterv1.FailureDomains `json:"failureDomains,omitempty"`
 
+	// Id of CAPC managed kubernetes cluster created in CloudStack
+	// +optional
+	CloudStackClusterID string `json:"cloudStackClusterId"`
+
 	// Reflects the readiness of the CS cluster.
 	Ready bool `json:"ready"`
 }
diff --git a/config/crd/bases/infrastructure.cluster.x-k8s.io_cloudstackclusters.yaml b/config/crd/bases/infrastructure.cluster.x-k8s.io_cloudstackclusters.yaml
index 882a42eb..81bbca78 100644
--- a/config/crd/bases/infrastructure.cluster.x-k8s.io_cloudstackclusters.yaml
+++ b/config/crd/bases/infrastructure.cluster.x-k8s.io_cloudstackclusters.yaml
@@ -415,6 +415,10 @@ spec:
                   - zone
                   type: object
                 type: array
+              syncWithACS:
+                description: SyncWithACS determines if an externalManaged CKS cluster
+                  should be created on ACS.
+                type: boolean
             required:
             - controlPlaneEndpoint
             - failureDomains
@@ -422,6 +426,9 @@ spec:
           status:
             description: The actual cluster state reported by CloudStack.
             properties:
+              cloudStackClusterId:
+                description: Id of CAPC managed kubernetes cluster created in CloudStack
+                type: string
               failureDomains:
                 additionalProperties:
                   description: FailureDomainSpec is the Schema for Cluster API failure
diff --git a/controllers/cks_cluster_controller.go b/controllers/cks_cluster_controller.go
new file mode 100644
index 00000000..030555b7
--- /dev/null
+++ b/controllers/cks_cluster_controller.go
@@ -0,0 +1,124 @@
+/*
+Copyright 2022 The Kubernetes Authors.
+
+Licensed under the Apache License, Version 2.0 (the "License");
+you may not use this file except in compliance with the License.
+You may obtain a copy of the License at
+
+    http://www.apache.org/licenses/LICENSE-2.0
+
+Unless required by applicable law or agreed to in writing, software
+distributed under the License is distributed on an "AS IS" BASIS,
+WITHOUT WARRANTIES OR CONDITIONS OF ANY KIND, either express or implied.
+See the License for the specific language governing permissions and
+limitations under the License.
+*/
+
+package controllers
+
+import (
+	"context"
+	"fmt"
+	"strings"
+
+	ctrl "sigs.k8s.io/controller-runtime"
+	"sigs.k8s.io/controller-runtime/pkg/controller/controllerutil"
+
+	infrav1 "sigs.k8s.io/cluster-api-provider-cloudstack/api/v1beta3"
+	csCtrlrUtils "sigs.k8s.io/cluster-api-provider-cloudstack/controllers/utils"
+)
+
+const CksClusterFinalizer = "ckscluster.infrastructure.cluster.x-k8s.io"
+
+// RBAC permissions for CloudStackCluster.
+// +kubebuilder:rbac:groups=infrastructure.cluster.x-k8s.io,resources=cloudstackclusters,verbs=get;list;watch;create;update;patch;delete
+// +kubebuilder:rbac:groups=infrastructure.cluster.x-k8s.io,resources=cloudstackclusters/status,verbs=create;get;update;patch
+// +kubebuilder:rbac:groups=infrastructure.cluster.x-k8s.io,resources=cloudstackclusters/finalizers,verbs=update
+
+// CksClusterReconciliationRunner is a ReconciliationRunner with extensions specific to CloudStackClusters.
+// The runner does the actual reconciliation.
+type CksClusterReconciliationRunner struct {
+	*csCtrlrUtils.ReconciliationRunner
+	FailureDomains        *infrav1.CloudStackFailureDomainList
+	ReconciliationSubject *infrav1.CloudStackCluster
+}
+
+// CksClusterReconciler is the k8s controller manager's interface to reconcile a CloudStackCluster.
+// This is primarily to adapt to k8s.
+type CksClusterReconciler struct {
+	csCtrlrUtils.ReconcilerBase
+}
+
+// Initialize a new CloudStackCluster reconciliation runner with concrete types and initialized member fields.
+func NewCksClusterReconciliationRunner() *CksClusterReconciliationRunner {
+	// Set concrete type and init pointers.
+	runner := &CksClusterReconciliationRunner{ReconciliationSubject: &infrav1.CloudStackCluster{}}
+	runner.FailureDomains = &infrav1.CloudStackFailureDomainList{}
+	// Setup the base runner. Initializes pointers and links reconciliation methods.
+	runner.ReconciliationRunner = csCtrlrUtils.NewRunner(runner, runner.ReconciliationSubject, "CKSClusterController")
+	runner.CSCluster = runner.ReconciliationSubject
+	return runner
+}
+
+// Reconcile is the method k8s will call upon a reconciliation request.
+func (reconciler *CksClusterReconciler) Reconcile(ctx context.Context, req ctrl.Request) (retRes ctrl.Result, retErr error) {
+	r := NewCksClusterReconciliationRunner()
+	r.UsingBaseReconciler(reconciler.ReconcilerBase).ForRequest(req).WithRequestCtx(ctx)
+	r.WithAdditionalCommonStages(r.GetFailureDomains(r.FailureDomains))
+	return r.RunBaseReconciliationStages()
+}
+
+// Reconcile actually reconciles the CloudStackCluster.
+func (r *CksClusterReconciliationRunner) Reconcile() (res ctrl.Result, reterr error) {
+	if r.CSCluster.Spec.SyncWithACS {
+		// Prevent premature deletion.
+		controllerutil.AddFinalizer(r.ReconciliationSubject, CksClusterFinalizer)
+
+		if len(r.FailureDomains.Items) == 0 {
+			return r.RequeueWithMessage("No failure domains found")
+		}
+
+		res, err := r.AsFailureDomainUser(&r.FailureDomains.Items[0].Spec)()
+		if r.ShouldReturn(res, err) {
+			return res, err
+		}
+
+		r.Log.Info("Creating entry with CKS")
+		err = r.CSUser.GetOrCreateUnmanagedCluster(r.CAPICluster, r.ReconciliationSubject, &r.FailureDomains.Items[0].Spec)
+		if err != nil {
+			if strings.Contains(err.Error(), "Kubernetes Service plugin is disabled") {
+				r.Log.Info("Kubernetes Service plugin is disabled on CloudStack. Skipping ExternalManaged kubernetes cluster creation")
+				return ctrl.Result{}, nil
+			}
+			r.Log.Info(fmt.Sprintf("Failed creating ExternalManaged kubernetes cluster on CloudStack. Error: %s", err.Error()))
+			return r.RequeueWithMessage(fmt.Sprintf("Syncing VMs with CloudStack failed. error: %s", err.Error()))
+		}
+	}
+	return ctrl.Result{}, nil
+}
+
+// ReconcileDelete cleans up resources used by the cluster and finally removes the CloudStackCluster's finalizers.
+func (r *CksClusterReconciliationRunner) ReconcileDelete() (ctrl.Result, error) {
+	if r.ReconciliationSubject.Status.CloudStackClusterID != "" {
+		if len(r.FailureDomains.Items) == 0 {
+			return ctrl.Result{}, fmt.Errorf("no failure domains found")
+		}
+		res, err := r.AsFailureDomainUser(&r.FailureDomains.Items[0].Spec)()
+		if r.ShouldReturn(res, err) {
+			return res, err
+		}
+		err = r.CSUser.DeleteUnmanagedCluster(r.ReconciliationSubject)
+		if err != nil && !strings.Contains(err.Error(), " not found") {
+			return r.RequeueWithMessage(fmt.Sprintf("Deleting unmanaged kubernetes cluster on CloudStack failed. error: %s", err.Error()))
+		}
+	}
+	controllerutil.RemoveFinalizer(r.ReconciliationSubject, CksClusterFinalizer)
+	return ctrl.Result{}, nil
+}
+
+// SetupWithManager sets up the controller with the Manager.
+func (reconciler *CksClusterReconciler) SetupWithManager(mgr ctrl.Manager) error {
+	return ctrl.NewControllerManagedBy(mgr).
+		For(&infrav1.CloudStackCluster{}).
+		Complete(reconciler)
+}
diff --git a/controllers/cks_cluster_controller_test.go b/controllers/cks_cluster_controller_test.go
new file mode 100644
index 00000000..5f3c81da
--- /dev/null
+++ b/controllers/cks_cluster_controller_test.go
@@ -0,0 +1,69 @@
+/*
+Copyright 2022 The Kubernetes Authors.
+
+Licensed under the Apache License, Version 2.0 (the "License");
+you may not use this file except in compliance with the License.
+You may obtain a copy of the License at
+
+    http://www.apache.org/licenses/LICENSE-2.0
+
+Unless required by applicable law or agreed to in writing, software
+distributed under the License is distributed on an "AS IS" BASIS,
+WITHOUT WARRANTIES OR CONDITIONS OF ANY KIND, either express or implied.
+See the License for the specific language governing permissions and
+limitations under the License.
+*/
+
+package controllers_test
+
+import (
+	"github.com/golang/mock/gomock"
+	. "github.com/onsi/ginkgo/v2"
+	. "github.com/onsi/gomega"
+	infrav1 "sigs.k8s.io/cluster-api-provider-cloudstack/api/v1beta3"
+	"sigs.k8s.io/cluster-api-provider-cloudstack/controllers"
+	"sigs.k8s.io/cluster-api-provider-cloudstack/pkg/cloud"
+	dummies "sigs.k8s.io/cluster-api-provider-cloudstack/test/dummies/v1beta3"
+	"sigs.k8s.io/controller-runtime/pkg/client"
+	"sigs.k8s.io/controller-runtime/pkg/controller"
+)
+
+var _ = Describe("CksCloudStackClusterReconciler", func() {
+	Context("With k8s like test environment.", func() {
+		BeforeEach(func() {
+			dummies.SetDummyVars()
+			SetupTestEnvironment()
+			Ω(ClusterReconciler.SetupWithManager(ctx, k8sManager, controller.Options{})).Should(Succeed())  // Register CloudStack ClusterReconciler.
+			Ω(FailureDomainReconciler.SetupWithManager(k8sManager, controller.Options{})).Should(Succeed()) // Register CloudStack FailureDomainReconciler.
+			Ω(CksClusterReconciler.SetupWithManager(k8sManager)).Should(Succeed())                          // Register CloudStack Cks ClusterReconciler.
+			mockCloudClient.EXPECT().GetOrCreateUnmanagedCluster(gomock.Any(), gomock.Any(), gomock.Any()).Do(func(_, arg1, _ interface{}) {
+				arg1.(*infrav1.CloudStackCluster).Status.CloudStackClusterID = "cluster-id-123"
+			}).MinTimes(1).Return(nil)
+			mockCloudClient.EXPECT().ResolveZone(gomock.Any()).AnyTimes()
+			mockCloudClient.EXPECT().ResolveNetworkForZone(gomock.Any()).AnyTimes().Do(
+				func(arg1 interface{}) {
+					arg1.(*infrav1.CloudStackZoneSpec).Network.ID = "SomeID"
+					arg1.(*infrav1.CloudStackZoneSpec).Network.Type = cloud.NetworkTypeShared
+				}).MinTimes(1)
+		})
+
+		It("Should create a cluster in CKS.", func() {
+			Eventually(func() string {
+				key := client.ObjectKeyFromObject(dummies.CSCluster)
+				if err := k8sClient.Get(ctx, key, dummies.CSCluster); err != nil {
+					return ""
+				}
+				return dummies.CSCluster.Status.CloudStackClusterID
+			}, timeout).WithPolling(pollInterval).Should(Equal("cluster-id-123"))
+
+		})
+
+	})
+
+	Context("Without a k8s test environment.", func() {
+		It("Should create a reconciliation runner with a Cloudstack Cluster as the reconciliation subject.", func() {
+			reconRunner := controllers.NewCksClusterReconciliationRunner()
+			Ω(reconRunner.ReconciliationSubject).ShouldNot(BeNil())
+		})
+	})
+})
diff --git a/controllers/cks_machine_controller.go b/controllers/cks_machine_controller.go
new file mode 100644
index 00000000..80937e82
--- /dev/null
+++ b/controllers/cks_machine_controller.go
@@ -0,0 +1,108 @@
+/*
+Copyright 2022 The Kubernetes Authors.
+
+Licensed under the Apache License, Version 2.0 (the "License");
+you may not use this file except in compliance with the License.
+You may obtain a copy of the License at
+
+    http://www.apache.org/licenses/LICENSE-2.0
+
+Unless required by applicable law or agreed to in writing, software
+distributed under the License is distributed on an "AS IS" BASIS,
+WITHOUT WARRANTIES OR CONDITIONS OF ANY KIND, either express or implied.
+See the License for the specific language governing permissions and
+limitations under the License.
+*/
+
+package controllers
+
+import (
+	"context"
+	"fmt"
+
+	ctrl "sigs.k8s.io/controller-runtime"
+
+	infrav1 "sigs.k8s.io/cluster-api-provider-cloudstack/api/v1beta3"
+	csCtrlrUtils "sigs.k8s.io/cluster-api-provider-cloudstack/controllers/utils"
+)
+
+// RBAC permissions for CloudStackCluster.
+// +kubebuilder:rbac:groups=infrastructure.cluster.x-k8s.io,resources=cloudstackmachines,verbs=get;list;watch
+// +kubebuilder:rbac:groups=infrastructure.cluster.x-k8s.io,resources=cloudstackmachines/status,verbs=get;update;patch
+// +kubebuilder:rbac:groups=infrastructure.cluster.x-k8s.io,resources=cloudstackmachines/finalizers,verbs=update
+
+// CksMachineReconciliationRunner is a ReconciliationRunner with extensions specific to CloudStackClusters.
+// The runner does the actual reconciliation.
+type CksMachineReconciliationRunner struct {
+	*csCtrlrUtils.ReconciliationRunner
+	FailureDomain         *infrav1.CloudStackFailureDomain
+	ReconciliationSubject *infrav1.CloudStackMachine
+}
+
+// CksMachineReconciler is the k8s controller manager's interface to reconcile a CloudStackCluster.
+// This is primarily to adapt to k8s.
+type CksMachineReconciler struct {
+	csCtrlrUtils.ReconcilerBase
+}
+
+// Initialize a new CloudStackCluster reconciliation runner with concrete types and initialized member fields.
+func NewCksMachineReconciliationRunner() *CksMachineReconciliationRunner {
+	// Set concrete type and init pointers.
+	runner := &CksMachineReconciliationRunner{ReconciliationSubject: &infrav1.CloudStackMachine{}}
+	runner.FailureDomain = &infrav1.CloudStackFailureDomain{}
+	// Setup the base runner. Initializes pointers and links reconciliation methods.
+	runner.ReconciliationRunner = csCtrlrUtils.NewRunner(runner, runner.ReconciliationSubject, "CKSMachineController")
+	return runner
+}
+
+// Reconcile is the method k8s will call upon a reconciliation request.
+func (reconciler *CksMachineReconciler) Reconcile(ctx context.Context, req ctrl.Request) (retRes ctrl.Result, retErr error) {
+	r := NewCksMachineReconciliationRunner()
+	r.UsingBaseReconciler(reconciler.ReconcilerBase).ForRequest(req).WithRequestCtx(ctx)
+	r.WithAdditionalCommonStages(
+		r.GetFailureDomainByName(func() string { return r.ReconciliationSubject.Spec.FailureDomainName }, r.FailureDomain),
+		r.AsFailureDomainUser(&r.FailureDomain.Spec))
+	return r.RunBaseReconciliationStages()
+}
+
+// Reconcile actually reconciles the CloudStackCluster.
+func (r *CksMachineReconciliationRunner) Reconcile() (res ctrl.Result, reterr error) {
+	if r.CSCluster.Spec.SyncWithACS {
+		if r.CSCluster.Status.CloudStackClusterID == "" {
+			return r.RequeueWithMessage("CloudStackClusterID is not set")
+		}
+
+		if r.ReconciliationSubject.Spec.InstanceID == nil || *r.ReconciliationSubject.Spec.InstanceID == "" {
+			return r.RequeueWithMessage("InstanceID is not set")
+		}
+
+		res, err := r.AsFailureDomainUser(&r.FailureDomain.Spec)()
+		if r.ShouldReturn(res, err) {
+			return res, err
+		}
+		r.Log.Info("Assigning VM to CKS")
+		err = r.CSUser.AddVMToUnmanagedCluster(r.CSCluster, r.ReconciliationSubject)
+		if err != nil {
+			return r.RequeueWithMessage(fmt.Sprintf("Adding VM to CloudStack Unmanaged kubernetes failed. error: %s", err.Error()))
+		}
+	}
+	return ctrl.Result{}, nil
+}
+
+// ReconcileDelete cleans up resources used by the cluster and finally removes the CloudStackCluster's finalizers.
+func (r *CksMachineReconciliationRunner) ReconcileDelete() (ctrl.Result, error) {
+	if r.ReconciliationSubject.Spec.InstanceID != nil && *r.ReconciliationSubject.Spec.InstanceID != "" {
+		err := r.CSUser.RemoveVMFromUnmanagedCluster(r.CSCluster, r.ReconciliationSubject)
+		if err != nil {
+			return r.RequeueWithMessage(fmt.Sprintf("Removing VM from CloudStack Unmanaged kubernetes failed. error: %s", err.Error()))
+		}
+	}
+	return ctrl.Result{}, nil
+}
+
+// SetupWithManager sets up the controller with the Manager.
+func (reconciler *CksMachineReconciler) SetupWithManager(mgr ctrl.Manager) error {
+	return ctrl.NewControllerManagedBy(mgr).
+		For(&infrav1.CloudStackMachine{}).
+		Complete(reconciler)
+}
diff --git a/controllers/cks_machine_controller_test.go b/controllers/cks_machine_controller_test.go
new file mode 100644
index 00000000..6bb0b63b
--- /dev/null
+++ b/controllers/cks_machine_controller_test.go
@@ -0,0 +1,135 @@
+/*
+Copyright 2022 The Kubernetes Authors.
+
+Licensed under the Apache License, Version 2.0 (the "License");
+you may not use this file except in compliance with the License.
+You may obtain a copy of the License at
+
+    http://www.apache.org/licenses/LICENSE-2.0
+
+Unless required by applicable law or agreed to in writing, software
+distributed under the License is distributed on an "AS IS" BASIS,
+WITHOUT WARRANTIES OR CONDITIONS OF ANY KIND, either express or implied.
+See the License for the specific language governing permissions and
+limitations under the License.
+*/
+
+package controllers_test
+
+import (
+	"github.com/golang/mock/gomock"
+	. "github.com/onsi/ginkgo/v2"
+	. "github.com/onsi/gomega"
+	"k8s.io/apimachinery/pkg/api/errors"
+	infrav1 "sigs.k8s.io/cluster-api-provider-cloudstack/api/v1beta3"
+	"sigs.k8s.io/cluster-api-provider-cloudstack/controllers"
+	dummies "sigs.k8s.io/cluster-api-provider-cloudstack/test/dummies/v1beta3"
+	"sigs.k8s.io/controller-runtime/pkg/client"
+	"sigs.k8s.io/controller-runtime/pkg/controller"
+	"sigs.k8s.io/controller-runtime/pkg/controller/controllerutil"
+)
+
+var _ = Describe("CloudStackMachineReconciler", func() {
+	Context("With machine controller running.", func() {
+		BeforeEach(func() {
+			dummies.SetDummyVars()
+			dummies.CSCluster.Spec.SyncWithACS = true
+			dummies.CSCluster.Spec.FailureDomains = dummies.CSCluster.Spec.FailureDomains[:1]
+			dummies.CSCluster.Spec.FailureDomains[0].Name = dummies.CSFailureDomain1.Spec.Name
+
+			SetupTestEnvironment()                                                                         // Must happen before setting up managers/reconcilers.
+			Ω(MachineReconciler.SetupWithManager(ctx, k8sManager, controller.Options{})).Should(Succeed()) // Register the CloudStack MachineReconciler.
+			Ω(CksClusterReconciler.SetupWithManager(k8sManager)).Should(Succeed())                         // Register the CloudStack MachineReconciler.
+			Ω(CksMachineReconciler.SetupWithManager(k8sManager)).Should(Succeed())                         // Register the CloudStack MachineReconciler.
+
+			mockCloudClient.EXPECT().GetOrCreateUnmanagedCluster(gomock.Any(), gomock.Any(), gomock.Any()).Do(func(_, arg1, _ interface{}) {
+				arg1.(*infrav1.CloudStackCluster).Status.CloudStackClusterID = "cluster-id-123"
+			}).MinTimes(1).Return(nil)
+			// Point CAPI machine Bootstrap secret ref to dummy bootstrap secret.
+			dummies.CAPIMachine.Spec.Bootstrap.DataSecretName = &dummies.BootstrapSecret.Name
+			Ω(k8sClient.Create(ctx, dummies.BootstrapSecret)).Should(Succeed())
+
+			// Setup a failure domain for the machine reconciler to find.
+			Ω(k8sClient.Create(ctx, dummies.CSFailureDomain1)).Should(Succeed())
+			setClusterReady(k8sClient)
+		})
+
+		It("Should call AddVMToUnmanagedCluster", func() {
+			// Mock a call to GetOrCreateVMInstance and set the machine to running.
+			mockCloudClient.EXPECT().GetOrCreateVMInstance(
+				gomock.Any(), gomock.Any(), gomock.Any(),
+				gomock.Any(), gomock.Any(), gomock.Any()).Do(
+				func(arg1, _, _, _, _, _ interface{}) {
+					arg1.(*infrav1.CloudStackMachine).Status.InstanceState = "Running"
+				}).AnyTimes()
+
+			mockCloudClient.EXPECT().AddVMToUnmanagedCluster(
+				gomock.Any(), gomock.Any()).MinTimes(1).Return(nil)
+			// Have to do this here or the reconcile call to GetOrCreateVMInstance may happen too early.
+			setupMachineCRDs()
+
+			// Eventually the machine should set ready to true.
+			Eventually(func() bool {
+				tempMachine := &infrav1.CloudStackMachine{}
+				key := client.ObjectKey{Namespace: dummies.ClusterNameSpace, Name: dummies.CSMachine1.Name}
+				if err := k8sClient.Get(ctx, key, tempMachine); err == nil {
+					if tempMachine.Status.Ready == true {
+						return len(tempMachine.ObjectMeta.Finalizers) > 0
+					}
+				}
+				return false
+			}, timeout).WithPolling(pollInterval).Should(BeTrue())
+		})
+
+		It("Should call RemoveVMFromUnmanagedCluster when CS machine deleted", func() {
+			// Mock a call to GetOrCreateVMInstance and set the machine to running.
+			mockCloudClient.EXPECT().GetOrCreateVMInstance(
+				gomock.Any(), gomock.Any(), gomock.Any(),
+				gomock.Any(), gomock.Any(), gomock.Any()).Do(
+				func(arg1, _, _, _, _, _ interface{}) {
+					arg1.(*infrav1.CloudStackMachine).Status.InstanceState = "Running"
+					controllerutil.AddFinalizer(arg1.(*infrav1.CloudStackMachine), infrav1.MachineFinalizer)
+				}).AnyTimes()
+
+			mockCloudClient.EXPECT().AddVMToUnmanagedCluster(
+				gomock.Any(), gomock.Any()).MinTimes(1).Return(nil)
+
+			mockCloudClient.EXPECT().DestroyVMInstance(gomock.Any()).Times(1).Return(nil)
+			mockCloudClient.EXPECT().RemoveVMFromUnmanagedCluster(
+				gomock.Any(), gomock.Any()).MinTimes(1).Return(nil)
+			// Have to do this here or the reconcile call to GetOrCreateVMInstance may happen too early.
+			setupMachineCRDs()
+
+			// Eventually the machine should set ready to true.
+			Eventually(func() bool {
+				tempMachine := &infrav1.CloudStackMachine{}
+				key := client.ObjectKey{Namespace: dummies.ClusterNameSpace, Name: dummies.CSMachine1.Name}
+				if err := k8sClient.Get(ctx, key, tempMachine); err == nil {
+					if tempMachine.Status.Ready == true {
+						return true
+					}
+				}
+				return false
+			}, timeout).WithPolling(pollInterval).Should(BeTrue())
+
+			Ω(k8sClient.Delete(ctx, dummies.CSMachine1)).Should(Succeed())
+
+			Eventually(func() bool {
+				tempMachine := &infrav1.CloudStackMachine{}
+				key := client.ObjectKey{Namespace: dummies.ClusterNameSpace, Name: dummies.CSMachine1.Name}
+				if err := k8sClient.Get(ctx, key, tempMachine); err != nil {
+					return errors.IsNotFound(err)
+				}
+				return false
+			}, timeout).WithPolling(pollInterval).Should(BeTrue())
+
+		})
+	})
+
+	Context("Without a k8s test environment.", func() {
+		It("Should create a reconciliation runner with a Cloudstack Machine as the reconciliation subject.", func() {
+			reconRunner := controllers.NewCksMachineReconciliationRunner()
+			Ω(reconRunner.ReconciliationSubject).ShouldNot(BeNil())
+		})
+	})
+})
diff --git a/controllers/cloudstackfailuredomain_controller.go b/controllers/cloudstackfailuredomain_controller.go
index 822d4ef7..3084cf6e 100644
--- a/controllers/cloudstackfailuredomain_controller.go
+++ b/controllers/cloudstackfailuredomain_controller.go
@@ -18,6 +18,8 @@ package controllers
 
 import (
 	"context"
+	"sort"
+
 	"github.com/pkg/errors"
 	"k8s.io/apimachinery/pkg/apis/meta/v1/unstructured"
 	"k8s.io/apimachinery/pkg/runtime/schema"
@@ -26,7 +28,6 @@ import (
 	"sigs.k8s.io/controller-runtime/pkg/client"
 	"sigs.k8s.io/controller-runtime/pkg/controller"
 	"sigs.k8s.io/controller-runtime/pkg/controller/controllerutil"
-	"sort"
 
 	infrav1 "sigs.k8s.io/cluster-api-provider-cloudstack/api/v1beta3"
 	csCtrlrUtils "sigs.k8s.io/cluster-api-provider-cloudstack/controllers/utils"
diff --git a/controllers/cloudstackmachine_controller_test.go b/controllers/cloudstackmachine_controller_test.go
index e4195726..dda1acea 100644
--- a/controllers/cloudstackmachine_controller_test.go
+++ b/controllers/cloudstackmachine_controller_test.go
@@ -54,6 +54,11 @@ var _ = Describe("CloudStackMachineReconciler", func() {
 			// Setup a failure domain for the machine reconciler to find.
 			Ω(k8sClient.Create(ctx, dummies.CSFailureDomain1)).Should(Succeed())
 			setClusterReady(k8sClient)
+
+			mockCloudClient.EXPECT().GetOrCreateUnmanagedCluster(gomock.Any(), gomock.Any(), gomock.Any()).Do(
+				func(arg1, _, _ interface{}) {
+					arg1.(*infrav1.CloudStackCluster).Status.CloudStackClusterID = "cluster-id-123"
+				}).AnyTimes().Return(nil)
 		})
 
 		It("Should call GetOrCreateVMInstance and set Status.Ready to true", func() {
diff --git a/controllers/controllers_suite_test.go b/controllers/controllers_suite_test.go
index a9776f64..c1b2d1df 100644
--- a/controllers/controllers_suite_test.go
+++ b/controllers/controllers_suite_test.go
@@ -21,16 +21,17 @@ import (
 	"flag"
 	"fmt"
 	"go/build"
-	"k8s.io/client-go/tools/record"
 	"os"
 	"os/exec"
 	"path/filepath"
 	"regexp"
-	"sigs.k8s.io/cluster-api-provider-cloudstack/test/fakes"
 	"strings"
 	"testing"
 	"time"
 
+	"k8s.io/client-go/tools/record"
+	"sigs.k8s.io/cluster-api-provider-cloudstack/test/fakes"
+
 	metav1 "k8s.io/apimachinery/pkg/apis/meta/v1"
 	"k8s.io/klog/v2"
 	"k8s.io/klog/v2/klogr"
@@ -129,6 +130,10 @@ var (
 	FailureDomainReconciler *csReconcilers.CloudStackFailureDomainReconciler
 	IsoNetReconciler        *csReconcilers.CloudStackIsoNetReconciler
 	AffinityGReconciler     *csReconcilers.CloudStackAffinityGroupReconciler
+
+	// CKS Reconcilers
+	CksClusterReconciler *csReconcilers.CksClusterReconciler
+	CksMachineReconciler *csReconcilers.CksMachineReconciler
 )
 
 var _ = BeforeSuite(func() {
@@ -224,6 +229,9 @@ func SetupTestEnvironment() {
 	IsoNetReconciler = &csReconcilers.CloudStackIsoNetReconciler{ReconcilerBase: base}
 	AffinityGReconciler = &csReconcilers.CloudStackAffinityGroupReconciler{ReconcilerBase: base}
 
+	CksClusterReconciler = &csReconcilers.CksClusterReconciler{ReconcilerBase: base}
+	CksMachineReconciler = &csReconcilers.CksMachineReconciler{ReconcilerBase: base}
+
 	ctx, cancel = context.WithCancel(context.TODO())
 
 	// Setup mock clients.
@@ -237,6 +245,9 @@ func SetupTestEnvironment() {
 	AffinityGReconciler.CSClient = mockCloudClient
 	FailureDomainReconciler.CSClient = mockCloudClient
 
+	CksClusterReconciler.CSClient = mockCloudClient
+	CksMachineReconciler.CSClient = mockCloudClient
+
 	setupClusterCRDs()
 
 	// See reconciliation results. Left commented as it's noisy otherwise.
diff --git a/go.mod b/go.mod
index e099ebf9..0c7e4099 100644
--- a/go.mod
+++ b/go.mod
@@ -3,7 +3,7 @@ module sigs.k8s.io/cluster-api-provider-cloudstack
 go 1.19
 
 require (
-	github.com/apache/cloudstack-go/v2 v2.15.0
+	github.com/apache/cloudstack-go/v2 v2.16.1
 	github.com/go-logr/logr v1.2.4
 	github.com/golang/mock v1.6.0
 	github.com/hashicorp/go-multierror v1.1.1
@@ -70,11 +70,11 @@ require (
 	github.com/rogpeppe/go-internal v1.9.0 // indirect
 	github.com/spf13/cobra v1.6.1 // indirect
 	go.uber.org/atomic v1.10.0 // indirect
-	golang.org/x/net v0.17.0 // indirect
+	golang.org/x/net v0.23.0 // indirect
 	golang.org/x/oauth2 v0.6.0 // indirect
 	golang.org/x/sync v0.2.0 // indirect
-	golang.org/x/sys v0.13.0 // indirect
-	golang.org/x/term v0.13.0 // indirect
+	golang.org/x/sys v0.18.0 // indirect
+	golang.org/x/term v0.18.0 // indirect
 	golang.org/x/time v0.3.0 // indirect
 	golang.org/x/tools v0.9.3 // indirect
 	gomodules.xyz/jsonpatch/v2 v2.2.0 // indirect
diff --git a/go.sum b/go.sum
index 2dea8353..b04ed6ac 100644
--- a/go.sum
+++ b/go.sum
@@ -22,8 +22,8 @@ github.com/alecthomas/template v0.0.0-20160405071501-a0175ee3bccc/go.mod h1:LOuy
 github.com/alecthomas/units v0.0.0-20151022065526-2efee857e7cf/go.mod h1:ybxpYRFXyAe+OPACYpWeL0wqObRcbAqCMya13uyzqw0=
 github.com/antihax/optional v1.0.0/go.mod h1:uupD/76wgC+ih3iEmQUL+0Ugr19nfwCT1kdvxnR2qWY=
 github.com/antlr/antlr4/runtime/Go/antlr v1.4.10 h1:yL7+Jz0jTC6yykIK/Wh74gnTJnrGr5AyrNMXuA0gves=
-github.com/apache/cloudstack-go/v2 v2.15.0 h1:oojn1qx0+wBwrFSSmA2rL8XjWd4BXqwYo0RVCrAXoHk=
-github.com/apache/cloudstack-go/v2 v2.15.0/go.mod h1:Mc+tXpujtslBuZFk5atoGT2LanVxOrXS2GGgidAoz1A=
+github.com/apache/cloudstack-go/v2 v2.16.1 h1:2wOE4RKEjWPRZNO7ZNnZYmR3JJ+JJPQwhoc7W1fkiK4=
+github.com/apache/cloudstack-go/v2 v2.16.1/go.mod h1:cZsgFe+VmrgLBm7QjeHTJBXYe8E5+yGYkdfwGb+Pu9c=
 github.com/armon/circbuf v0.0.0-20150827004946-bbbad097214e/go.mod h1:3U/XgcO3hCbHZ8TKRvWD2dDTCfh9M9ya+I9JpbB7O8o=
 github.com/armon/go-metrics v0.0.0-20180917152333-f0300d1749da/go.mod h1:Q73ZrmVTwzkszR9V5SSuryQ31EELlFMUz1kKyl939pY=
 github.com/armon/go-radix v0.0.0-20180808171621-7fddfc383310/go.mod h1:ufUuZ+zHj4x4TnLV4JWEpy2hxWSpsRywHrMgIH9cCH8=
@@ -367,7 +367,7 @@ golang.org/x/crypto v0.0.0-20190510104115-cbcb75029529/go.mod h1:yigFU9vqHzYiE8U
 golang.org/x/crypto v0.0.0-20190605123033-f99c8df09eb5/go.mod h1:yigFU9vqHzYiE8UmvKecakEJjdnWj3jj499lnFckfCI=
 golang.org/x/crypto v0.0.0-20191011191535-87dc89f01550/go.mod h1:yigFU9vqHzYiE8UmvKecakEJjdnWj3jj499lnFckfCI=
 golang.org/x/crypto v0.0.0-20200622213623-75b288015ac9/go.mod h1:LzIPMQfyMNhhGPhUkYOs5KpL4U8rLKemX1yGLhDgUto=
-golang.org/x/crypto v0.14.0 h1:wBqGXzWJW6m1XrIKlAH0Hs1JJ7+9KBwnIO8v66Q9cHc=
+golang.org/x/crypto v0.21.0 h1:X31++rzVUdKhX5sWmSOFZxx8UW/ldWx55cbf08iNAMA=
 golang.org/x/exp v0.0.0-20190121172915-509febef88a4/go.mod h1:CJ0aWSM057203Lf6IL+f9T1iT9GByDxfZKAQTCR3kQA=
 golang.org/x/exp v0.0.0-20190306152737-a1d7652674e8/go.mod h1:CJ0aWSM057203Lf6IL+f9T1iT9GByDxfZKAQTCR3kQA=
 golang.org/x/exp v0.0.0-20190510132918-efd6b22b2522/go.mod h1:ZjyILWgesfNpC6sMxTJOJm9Kp84zZh5NQWvqDGG3Qr8=
@@ -409,8 +409,8 @@ golang.org/x/net v0.0.0-20200822124328-c89045814202/go.mod h1:/O7V0waA8r7cgGh81R
 golang.org/x/net v0.0.0-20201021035429-f5854403a974/go.mod h1:sp8m0HH+o8qH0wwXwYZr8TS3Oi6o0r6Gce1SSxlDquU=
 golang.org/x/net v0.0.0-20210405180319-a5a99cb37ef4/go.mod h1:p54w0d4576C0XHj96bSt6lcn1PtDYWL6XObtHCRCNQM=
 golang.org/x/net v0.0.0-20210805182204-aaa1db679c0d/go.mod h1:9nx3DQGgdP8bBQD5qxJ1jj9UTztislL4KSBs9R2vV5Y=
-golang.org/x/net v0.17.0 h1:pVaXccu2ozPjCXewfr1S7xza/zcXTity9cCdXQYSjIM=
-golang.org/x/net v0.17.0/go.mod h1:NxSsAGuq816PNPmqtQdLE42eU2Fs7NoRIZrHJAlaCOE=
+golang.org/x/net v0.23.0 h1:7EYJ93RZ9vYSZAIb2x3lnuvqO5zneoD6IvWjuhfxjTs=
+golang.org/x/net v0.23.0/go.mod h1:JKghWKKOSdJwpW2GEx0Ja7fmaKnMsbu+MWVZTokSYmg=
 golang.org/x/oauth2 v0.0.0-20180821212333-d2e6202438be/go.mod h1:N/0e6XlmueqKjAGxoOufVs8QHGRruUQn6yWY3a++T0U=
 golang.org/x/oauth2 v0.0.0-20190226205417-e64efc72b421/go.mod h1:gOpvHmFTYa4IltrdGE7lF6nIHvwfUNPOp7c8zoXwtLw=
 golang.org/x/oauth2 v0.0.0-20190604053449-0f29369cfe45/go.mod h1:gOpvHmFTYa4IltrdGE7lF6nIHvwfUNPOp7c8zoXwtLw=
@@ -448,11 +448,11 @@ golang.org/x/sys v0.0.0-20210330210617-4fbd30eecc44/go.mod h1:h1NjWce9XRLGQEsW7w
 golang.org/x/sys v0.0.0-20210423082822-04245dca01da/go.mod h1:h1NjWce9XRLGQEsW7wpKNCjG9DtNlClVuFLEZdDNbEs=
 golang.org/x/sys v0.0.0-20210510120138-977fb7262007/go.mod h1:oPkhp1MJrh7nUepCBck5+mAzfO9JrbApNNgaTdGDITg=
 golang.org/x/sys v0.0.0-20220908164124-27713097b956/go.mod h1:oPkhp1MJrh7nUepCBck5+mAzfO9JrbApNNgaTdGDITg=
-golang.org/x/sys v0.13.0 h1:Af8nKPmuFypiUBjVoU9V20FiaFXOcuZI21p0ycVYYGE=
-golang.org/x/sys v0.13.0/go.mod h1:oPkhp1MJrh7nUepCBck5+mAzfO9JrbApNNgaTdGDITg=
+golang.org/x/sys v0.18.0 h1:DBdB3niSjOA/O0blCZBqDefyWNYveAYMNF1Wum0DYQ4=
+golang.org/x/sys v0.18.0/go.mod h1:/VUhepiaJMQUp4+oa/7Zr1D23ma6VTLIYjOOTFZPUcA=
 golang.org/x/term v0.0.0-20201126162022-7de9c90e9dd1/go.mod h1:bj7SfCRtBDWHUb9snDiAeCFNEtKQo2Wmx5Cou7ajbmo=
-golang.org/x/term v0.13.0 h1:bb+I9cTfFazGW51MZqBVmZy7+JEJMouUHTUSKVQLBek=
-golang.org/x/term v0.13.0/go.mod h1:LTmsnFJwVN6bCy1rVCoS+qHT1HhALEFxKncY3WNNh4U=
+golang.org/x/term v0.18.0 h1:FcHjZXDMxI8mM3nwhX9HlKop4C0YQvCVCdwYl2wOtE8=
+golang.org/x/term v0.18.0/go.mod h1:ILwASektA3OnRv7amZ1xhE/KTR+u50pbXfZ03+6Nx58=
 golang.org/x/text v0.3.0/go.mod h1:NqM8EUOU14njkJ3fqMW+pc6Ldnwhi/IjpwHt7yyuwOQ=
 golang.org/x/text v0.3.1-0.20180807135948-17ff2d5776d2/go.mod h1:NqM8EUOU14njkJ3fqMW+pc6Ldnwhi/IjpwHt7yyuwOQ=
 golang.org/x/text v0.3.2/go.mod h1:bEr9sfX3Q8Zfm5fL9x+3itogRgK3+ptLWKqgva+5dAk=
diff --git a/main.go b/main.go
index d7046dd2..3e0248d2 100644
--- a/main.go
+++ b/main.go
@@ -267,4 +267,12 @@ func setupReconcilers(ctx context.Context, base utils.ReconcilerBase, opts manag
 		setupLog.Error(err, "unable to create controller", "controller", "CloudStackFailureDomain")
 		os.Exit(1)
 	}
+	if err := (&controllers.CksClusterReconciler{ReconcilerBase: base}).SetupWithManager(mgr); err != nil {
+		setupLog.Error(err, "unable to create controller", "controller", "CKSClusterController")
+		os.Exit(1)
+	}
+	if err := (&controllers.CksMachineReconciler{ReconcilerBase: base}).SetupWithManager(mgr); err != nil {
+		setupLog.Error(err, "unable to create controller", "controller", "CKSMachineController")
+		os.Exit(1)
+	}
 }
diff --git a/pkg/cloud/client.go b/pkg/cloud/client.go
index 12e61176..76c50256 100644
--- a/pkg/cloud/client.go
+++ b/pkg/cloud/client.go
@@ -37,6 +37,7 @@ import (
 //go:generate ../../hack/tools/bin/mockgen -destination=../mocks/mock_client.go -package=mocks sigs.k8s.io/cluster-api-provider-cloudstack/pkg/cloud Client
 
 type Client interface {
+	ClusterIface
 	VMIface
 	NetworkIface
 	AffinityGroupIface
diff --git a/pkg/cloud/cluster.go b/pkg/cloud/cluster.go
new file mode 100644
index 00000000..f1831063
--- /dev/null
+++ b/pkg/cloud/cluster.go
@@ -0,0 +1,137 @@
+/*
+Copyright 2023 The Kubernetes Authors.
+
+Licensed under the Apache License, Version 2.0 (the "License");
+you may not use this file except in compliance with the License.
+You may obtain a copy of the License at
+
+    http://www.apache.org/licenses/LICENSE-2.0
+
+Unless required by applicable law or agreed to in writing, software
+distributed under the License is distributed on an "AS IS" BASIS,
+WITHOUT WARRANTIES OR CONDITIONS OF ANY KIND, either express or implied.
+See the License for the specific language governing permissions and
+limitations under the License.
+*/
+
+package cloud
+
+import (
+	"fmt"
+	"strings"
+
+	"github.com/apache/cloudstack-go/v2/cloudstack"
+	"github.com/pkg/errors"
+	infrav1 "sigs.k8s.io/cluster-api-provider-cloudstack/api/v1beta3"
+	clusterv1 "sigs.k8s.io/cluster-api/api/v1beta1"
+)
+
+type ClusterIface interface {
+	GetOrCreateUnmanagedCluster(*clusterv1.Cluster, *infrav1.CloudStackCluster, *infrav1.CloudStackFailureDomainSpec) error
+	DeleteUnmanagedCluster(*infrav1.CloudStackCluster) error
+	AddVMToUnmanagedCluster(*infrav1.CloudStackCluster, *infrav1.CloudStackMachine) error
+	RemoveVMFromUnmanagedCluster(*infrav1.CloudStackCluster, *infrav1.CloudStackMachine) error
+}
+
+type ClustertypeSetter interface {
+	SetClustertype(string)
+}
+
+func withExternalManaged() cloudstack.OptionFunc {
+	return func(cs *cloudstack.CloudStackClient, p interface{}) error {
+		ps, ok := p.(ClustertypeSetter)
+		if !ok {
+			return errors.New("invalid params type")
+		}
+		ps.SetClustertype("ExternalManaged")
+		return nil
+	}
+}
+
+func (c *client) GetOrCreateUnmanagedCluster(cluster *clusterv1.Cluster, csCluster *infrav1.CloudStackCluster, fd *infrav1.CloudStackFailureDomainSpec) error {
+	// Get cluster
+	if csCluster.Status.CloudStackClusterID != "" {
+		externalManagedCluster, count, err := c.cs.Kubernetes.GetKubernetesClusterByID(csCluster.Status.CloudStackClusterID, withExternalManaged(), cloudstack.WithProject(c.user.Project.ID))
+		if err != nil {
+			return err
+		} else if count > 0 {
+			csCluster.Status.CloudStackClusterID = externalManagedCluster.Id
+			return nil
+		}
+	}
+
+	// Check if a cluster exists with the same name
+	clusterName := fmt.Sprintf("%s - %s - %s", cluster.GetName(), csCluster.GetName(), csCluster.GetUID())
+	externalManagedCluster, count, err := c.cs.Kubernetes.GetKubernetesClusterByName(clusterName, withExternalManaged(), cloudstack.WithProject(c.user.Project.ID))
+	if err != nil && !strings.Contains(err.Error(), "No match found for ") {
+		return err
+	}
+	if count > 0 {
+		csCluster.Status.CloudStackClusterID = externalManagedCluster.Id
+	} else if err == nil || (err != nil && strings.Contains(err.Error(), "No match found for ")) {
+		// Create cluster
+		accountName := csCluster.Spec.FailureDomains[0].Account
+		if accountName == "" {
+			userParams := c.cs.User.NewGetUserParams(c.config.APIKey)
+			user, err := c.cs.User.GetUser(userParams)
+			if err != nil {
+				return err
+			}
+			accountName = user.Account
+		}
+		// NewCreateKubernetesClusterParams(description string, kubernetesversionid string, name string, serviceofferingid string, size int64, zoneid string) *CreateKubernetesClusterParams
+		params := c.cs.Kubernetes.NewCreateKubernetesClusterParams(fmt.Sprintf("%s managed by CAPC", clusterName), "", clusterName, "", 0, fd.Zone.ID)
+
+		setIfNotEmpty(c.user.Project.ID, params.SetProjectid)
+		setIfNotEmpty(accountName, params.SetAccount)
+		setIfNotEmpty(c.user.Domain.ID, params.SetDomainid)
+		setIfNotEmpty(fd.Zone.Network.ID, params.SetNetworkid)
+		setIfNotEmpty(csCluster.Spec.ControlPlaneEndpoint.Host, params.SetExternalloadbalanceripaddress)
+		params.ResetKubernetesversionid()
+		params.ResetServiceofferingid()
+		params.SetClustertype("ExternalManaged")
+
+		cloudStackCKSCluster, err := c.cs.Kubernetes.CreateKubernetesCluster(params)
+		if err != nil {
+			return err
+		}
+		csCluster.Status.CloudStackClusterID = cloudStackCKSCluster.Id
+	}
+	return nil
+}
+
+func (c *client) DeleteUnmanagedCluster(csCluster *infrav1.CloudStackCluster) error {
+	if csCluster.Status.CloudStackClusterID != "" {
+		csUnmanagedCluster, count, err := c.cs.Kubernetes.GetKubernetesClusterByID(csCluster.Status.CloudStackClusterID, withExternalManaged())
+		if err != nil && strings.Contains(err.Error(), " not found") {
+			return nil
+		}
+		if count != 0 {
+			params := c.cs.Kubernetes.NewDeleteKubernetesClusterParams(csUnmanagedCluster.Id)
+			_, err = c.cs.Kubernetes.DeleteKubernetesCluster(params)
+			if err != nil {
+				return err
+			}
+		}
+		csCluster.Status.CloudStackClusterID = ""
+	}
+	return nil
+}
+
+func (c *client) AddVMToUnmanagedCluster(csCluster *infrav1.CloudStackCluster, csMachine *infrav1.CloudStackMachine) error {
+	if csCluster.Status.CloudStackClusterID != "" {
+		params := c.cs.Kubernetes.NewAddVirtualMachinesToKubernetesClusterParams(csCluster.Status.CloudStackClusterID, []string{*csMachine.Spec.InstanceID})
+		_, err := c.cs.Kubernetes.AddVirtualMachinesToKubernetesCluster(params)
+		return err
+	}
+	return nil
+}
+
+func (c *client) RemoveVMFromUnmanagedCluster(csCluster *infrav1.CloudStackCluster, csMachine *infrav1.CloudStackMachine) error {
+	if csCluster.Status.CloudStackClusterID != "" {
+		params := c.cs.Kubernetes.NewRemoveVirtualMachinesFromKubernetesClusterParams(csCluster.Status.CloudStackClusterID, []string{*csMachine.Spec.InstanceID})
+		_, err := c.cs.Kubernetes.RemoveVirtualMachinesFromKubernetesCluster(params)
+		return err
+	}
+	return nil
+}
diff --git a/test/dummies/v1beta3/vars.go b/test/dummies/v1beta3/vars.go
index e633abf5..86df1f07 100644
--- a/test/dummies/v1beta3/vars.go
+++ b/test/dummies/v1beta3/vars.go
@@ -80,6 +80,7 @@ var ( // Declare exported dummy vars.
 	LBRuleID                string
 	PublicIPID              string
 	EndPointHost            string
+	SyncWithACS             bool
 	EndPointPort            int32
 	CSConf                  *simpleyaml.Yaml
 	DiskOffering            infrav1.CloudStackResourceDiskOffering
@@ -273,6 +274,7 @@ func SetDummyCAPCClusterVars() {
 	CSClusterKind = "CloudStackCluster"
 	ClusterName = "test-cluster"
 	EndPointHost = "EndpointHost"
+	SyncWithACS = true
 	EndPointPort = int32(5309)
 	PublicIPID = "FakePublicIPID"
 	ClusterNameSpace = "default"
@@ -333,6 +335,7 @@ func SetDummyCAPCClusterVars() {
 		Spec: infrav1.CloudStackClusterSpec{
 			ControlPlaneEndpoint: clusterv1.APIEndpoint{Host: EndPointHost, Port: EndPointPort},
 			FailureDomains:       []infrav1.CloudStackFailureDomainSpec{CSFailureDomain1.Spec, CSFailureDomain2.Spec},
+			SyncWithACS:          SyncWithACS,
 		},
 		Status: infrav1.CloudStackClusterStatus{},
 	}
diff --git a/test/e2e/common.go b/test/e2e/common.go
index 53518904..ea537200 100644
--- a/test/e2e/common.go
+++ b/test/e2e/common.go
@@ -251,6 +251,17 @@ func DownloadMetricsFromCAPCManager(ctx context.Context, bootstrapKubeconfigPath
 	return result, nil
 }
 
+func GetACSVersion(client *cloudstack.CloudStackClient) (string, error) {
+	msServersResp, err := client.InfrastructureUsage.ListManagementServersMetrics(client.InfrastructureUsage.NewListManagementServersMetricsParams())
+	if err != nil {
+		return "", err
+	}
+	if msServersResp.Count == 0 {
+		return "", errors.New("no management servers found")
+	}
+	return msServersResp.ManagementServersMetrics[0].Version, nil
+}
+
 func DestroyOneMachine(client *cloudstack.CloudStackClient, clusterName string, machineType string) {
 	matcher := clusterName + "-" + machineType
 
diff --git a/test/e2e/config/cloudstack.yaml b/test/e2e/config/cloudstack.yaml
index ee06f42c..bd3409db 100644
--- a/test/e2e/config/cloudstack.yaml
+++ b/test/e2e/config/cloudstack.yaml
@@ -98,6 +98,7 @@ providers:
       - sourcePath: "../data/infrastructure-cloudstack/v1beta3/cluster-template-invalid-ip.yaml"
       - sourcePath: "../data/infrastructure-cloudstack/v1beta3/cluster-template-kubernetes-version-upgrade-before.yaml"
       - sourcePath: "../data/infrastructure-cloudstack/v1beta3/cluster-template-kubernetes-version-upgrade-after.yaml"
+      - sourcePath: "../data/infrastructure-cloudstack/v1beta3/cluster-template-k8s-unmanaged.yaml"
       - sourcePath: "../data/shared/v1beta1_provider/metadata.yaml"
     versions:
       - name: v1.0.0
diff --git a/test/e2e/data/infrastructure-cloudstack/v1beta3/bases/cluster-with-kcp.yaml b/test/e2e/data/infrastructure-cloudstack/v1beta3/bases/cluster-with-kcp.yaml
index bdd9d70b..2b719aa9 100644
--- a/test/e2e/data/infrastructure-cloudstack/v1beta3/bases/cluster-with-kcp.yaml
+++ b/test/e2e/data/infrastructure-cloudstack/v1beta3/bases/cluster-with-kcp.yaml
@@ -35,6 +35,7 @@ spec:
       name :  ${CLOUDSTACK_ZONE_NAME}
       network: 
         name: ${CLOUDSTACK_NETWORK_NAME}
+  syncWithACS: false
 ---
 kind: KubeadmControlPlane
 apiVersion: controlplane.cluster.x-k8s.io/v1beta1
diff --git a/test/e2e/data/infrastructure-cloudstack/v1beta3/cluster-template-k8s-unmanaged/cloudstack-cluster.yaml b/test/e2e/data/infrastructure-cloudstack/v1beta3/cluster-template-k8s-unmanaged/cloudstack-cluster.yaml
new file mode 100644
index 00000000..7bb1a966
--- /dev/null
+++ b/test/e2e/data/infrastructure-cloudstack/v1beta3/cluster-template-k8s-unmanaged/cloudstack-cluster.yaml
@@ -0,0 +1,19 @@
+---
+apiVersion: infrastructure.cluster.x-k8s.io/v1beta3
+kind: CloudStackCluster
+metadata:
+  name: ${CLUSTER_NAME}
+spec:
+  controlPlaneEndpoint:
+    host: ""
+    port: 6443
+  failureDomains:
+  - name: ${CLOUDSTACK_FD1_NAME}
+    acsEndpoint:
+      name: ${CLOUDSTACK_FD1_SECRET_NAME}
+      namespace: default
+    zone:
+      name :  ${CLOUDSTACK_ZONE_NAME}
+      network:
+        name: ${CLOUDSTACK_NETWORK_NAME}
+  syncWithACS: true
diff --git a/test/e2e/data/infrastructure-cloudstack/v1beta3/cluster-template-k8s-unmanaged/kustomization.yaml b/test/e2e/data/infrastructure-cloudstack/v1beta3/cluster-template-k8s-unmanaged/kustomization.yaml
new file mode 100644
index 00000000..7a6d2984
--- /dev/null
+++ b/test/e2e/data/infrastructure-cloudstack/v1beta3/cluster-template-k8s-unmanaged/kustomization.yaml
@@ -0,0 +1,6 @@
+bases:
+  - ../bases/cluster-with-kcp.yaml
+  - ../bases/md.yaml
+
+patchesStrategicMerge:
+- ./cloudstack-cluster.yaml
diff --git a/test/e2e/go.mod b/test/e2e/go.mod
index a94abae4..4ed90ee5 100644
--- a/test/e2e/go.mod
+++ b/test/e2e/go.mod
@@ -4,7 +4,7 @@ go 1.19
 
 require (
 	github.com/Shopify/toxiproxy/v2 v2.5.0
-	github.com/apache/cloudstack-go/v2 v2.15.0
+	github.com/apache/cloudstack-go/v2 v2.16.1
 	github.com/blang/semver v3.5.1+incompatible
 	github.com/onsi/ginkgo/v2 v2.11.0
 	github.com/onsi/gomega v1.27.8
@@ -97,12 +97,12 @@ require (
 	github.com/stoewer/go-strcase v1.2.0 // indirect
 	github.com/subosito/gotenv v1.4.2 // indirect
 	github.com/valyala/fastjson v1.6.4 // indirect
-	golang.org/x/crypto v0.14.0 // indirect
-	golang.org/x/net v0.17.0 // indirect
+	golang.org/x/crypto v0.21.0 // indirect
+	golang.org/x/net v0.23.0 // indirect
 	golang.org/x/oauth2 v0.6.0 // indirect
-	golang.org/x/sys v0.13.0 // indirect
-	golang.org/x/term v0.13.0 // indirect
-	golang.org/x/text v0.13.0 // indirect
+	golang.org/x/sys v0.18.0 // indirect
+	golang.org/x/term v0.18.0 // indirect
+	golang.org/x/text v0.14.0 // indirect
 	golang.org/x/time v0.3.0 // indirect
 	golang.org/x/tools v0.9.3 // indirect
 	gomodules.xyz/jsonpatch/v2 v2.2.0 // indirect
diff --git a/test/e2e/go.sum b/test/e2e/go.sum
index 1a821219..91201722 100644
--- a/test/e2e/go.sum
+++ b/test/e2e/go.sum
@@ -65,8 +65,8 @@ github.com/alessio/shellescape v1.4.1/go.mod h1:PZAiSCk0LJaZkiCSkPv8qIobYglO3FPp
 github.com/antihax/optional v1.0.0/go.mod h1:uupD/76wgC+ih3iEmQUL+0Ugr19nfwCT1kdvxnR2qWY=
 github.com/antlr/antlr4/runtime/Go/antlr v1.4.10 h1:yL7+Jz0jTC6yykIK/Wh74gnTJnrGr5AyrNMXuA0gves=
 github.com/antlr/antlr4/runtime/Go/antlr v1.4.10/go.mod h1:F7bn7fEU90QkQ3tnmaTx3LTKLEDqnwWODIYppRQ5hnY=
-github.com/apache/cloudstack-go/v2 v2.15.0 h1:oojn1qx0+wBwrFSSmA2rL8XjWd4BXqwYo0RVCrAXoHk=
-github.com/apache/cloudstack-go/v2 v2.15.0/go.mod h1:Mc+tXpujtslBuZFk5atoGT2LanVxOrXS2GGgidAoz1A=
+github.com/apache/cloudstack-go/v2 v2.16.1 h1:2wOE4RKEjWPRZNO7ZNnZYmR3JJ+JJPQwhoc7W1fkiK4=
+github.com/apache/cloudstack-go/v2 v2.16.1/go.mod h1:cZsgFe+VmrgLBm7QjeHTJBXYe8E5+yGYkdfwGb+Pu9c=
 github.com/armon/circbuf v0.0.0-20150827004946-bbbad097214e/go.mod h1:3U/XgcO3hCbHZ8TKRvWD2dDTCfh9M9ya+I9JpbB7O8o=
 github.com/armon/go-metrics v0.0.0-20180917152333-f0300d1749da/go.mod h1:Q73ZrmVTwzkszR9V5SSuryQ31EELlFMUz1kKyl939pY=
 github.com/armon/go-radix v0.0.0-20180808171621-7fddfc383310/go.mod h1:ufUuZ+zHj4x4TnLV4JWEpy2hxWSpsRywHrMgIH9cCH8=
@@ -528,8 +528,8 @@ golang.org/x/crypto v0.0.0-20210421170649-83a5a9bb288b/go.mod h1:T9bdIzuCu7OtxOm
 golang.org/x/crypto v0.0.0-20210921155107-089bfa567519/go.mod h1:GvvjBRRGRdwPK5ydBHafDWAxML/pGHZbMvKqRZ5+Abc=
 golang.org/x/crypto v0.0.0-20211108221036-ceb1ce70b4fa/go.mod h1:GvvjBRRGRdwPK5ydBHafDWAxML/pGHZbMvKqRZ5+Abc=
 golang.org/x/crypto v0.3.0/go.mod h1:hebNnKkNXi2UzZN1eVRvBB7co0a+JxK6XbPiWVs/3J4=
-golang.org/x/crypto v0.14.0 h1:wBqGXzWJW6m1XrIKlAH0Hs1JJ7+9KBwnIO8v66Q9cHc=
-golang.org/x/crypto v0.14.0/go.mod h1:MVFd36DqK4CsrnJYDkBA3VC4m2GkXAM0PvzMCn4JQf4=
+golang.org/x/crypto v0.21.0 h1:X31++rzVUdKhX5sWmSOFZxx8UW/ldWx55cbf08iNAMA=
+golang.org/x/crypto v0.21.0/go.mod h1:0BP7YvVV9gBbVKyeTG0Gyn+gZm94bibOW5BjDEYAOMs=
 golang.org/x/exp v0.0.0-20190121172915-509febef88a4/go.mod h1:CJ0aWSM057203Lf6IL+f9T1iT9GByDxfZKAQTCR3kQA=
 golang.org/x/exp v0.0.0-20190306152737-a1d7652674e8/go.mod h1:CJ0aWSM057203Lf6IL+f9T1iT9GByDxfZKAQTCR3kQA=
 golang.org/x/exp v0.0.0-20190510132918-efd6b22b2522/go.mod h1:ZjyILWgesfNpC6sMxTJOJm9Kp84zZh5NQWvqDGG3Qr8=
@@ -609,8 +609,8 @@ golang.org/x/net v0.0.0-20220127200216-cd36cc0744dd/go.mod h1:CfG3xpIq0wQ8r1q4Su
 golang.org/x/net v0.0.0-20220225172249-27dd8689420f/go.mod h1:CfG3xpIq0wQ8r1q4Su4UZFWDARRcnwPjda9FqA0JpMk=
 golang.org/x/net v0.0.0-20220722155237-a158d28d115b/go.mod h1:XRhObCWvk6IyKnWLug+ECip1KBveYUHfp+8e9klMJ9c=
 golang.org/x/net v0.2.0/go.mod h1:KqCZLdyyvdV855qA2rE3GC2aiw5xGR5TEjj8smXukLY=
-golang.org/x/net v0.17.0 h1:pVaXccu2ozPjCXewfr1S7xza/zcXTity9cCdXQYSjIM=
-golang.org/x/net v0.17.0/go.mod h1:NxSsAGuq816PNPmqtQdLE42eU2Fs7NoRIZrHJAlaCOE=
+golang.org/x/net v0.23.0 h1:7EYJ93RZ9vYSZAIb2x3lnuvqO5zneoD6IvWjuhfxjTs=
+golang.org/x/net v0.23.0/go.mod h1:JKghWKKOSdJwpW2GEx0Ja7fmaKnMsbu+MWVZTokSYmg=
 golang.org/x/oauth2 v0.0.0-20180821212333-d2e6202438be/go.mod h1:N/0e6XlmueqKjAGxoOufVs8QHGRruUQn6yWY3a++T0U=
 golang.org/x/oauth2 v0.0.0-20190226205417-e64efc72b421/go.mod h1:gOpvHmFTYa4IltrdGE7lF6nIHvwfUNPOp7c8zoXwtLw=
 golang.org/x/oauth2 v0.0.0-20190604053449-0f29369cfe45/go.mod h1:gOpvHmFTYa4IltrdGE7lF6nIHvwfUNPOp7c8zoXwtLw=
@@ -693,13 +693,13 @@ golang.org/x/sys v0.0.0-20220722155257-8c9f86f7a55f/go.mod h1:oPkhp1MJrh7nUepCBc
 golang.org/x/sys v0.0.0-20220811171246-fbc7d0a398ab/go.mod h1:oPkhp1MJrh7nUepCBck5+mAzfO9JrbApNNgaTdGDITg=
 golang.org/x/sys v0.0.0-20220908164124-27713097b956/go.mod h1:oPkhp1MJrh7nUepCBck5+mAzfO9JrbApNNgaTdGDITg=
 golang.org/x/sys v0.2.0/go.mod h1:oPkhp1MJrh7nUepCBck5+mAzfO9JrbApNNgaTdGDITg=
-golang.org/x/sys v0.13.0 h1:Af8nKPmuFypiUBjVoU9V20FiaFXOcuZI21p0ycVYYGE=
-golang.org/x/sys v0.13.0/go.mod h1:oPkhp1MJrh7nUepCBck5+mAzfO9JrbApNNgaTdGDITg=
+golang.org/x/sys v0.18.0 h1:DBdB3niSjOA/O0blCZBqDefyWNYveAYMNF1Wum0DYQ4=
+golang.org/x/sys v0.18.0/go.mod h1:/VUhepiaJMQUp4+oa/7Zr1D23ma6VTLIYjOOTFZPUcA=
 golang.org/x/term v0.0.0-20201126162022-7de9c90e9dd1/go.mod h1:bj7SfCRtBDWHUb9snDiAeCFNEtKQo2Wmx5Cou7ajbmo=
 golang.org/x/term v0.0.0-20210927222741-03fcf44c2211/go.mod h1:jbD1KX2456YbFQfuXm/mYQcufACuNUgVhRMnK/tPxf8=
 golang.org/x/term v0.2.0/go.mod h1:TVmDHMZPmdnySmBfhjOoOdhjzdE1h4u1VwSiw2l1Nuc=
-golang.org/x/term v0.13.0 h1:bb+I9cTfFazGW51MZqBVmZy7+JEJMouUHTUSKVQLBek=
-golang.org/x/term v0.13.0/go.mod h1:LTmsnFJwVN6bCy1rVCoS+qHT1HhALEFxKncY3WNNh4U=
+golang.org/x/term v0.18.0 h1:FcHjZXDMxI8mM3nwhX9HlKop4C0YQvCVCdwYl2wOtE8=
+golang.org/x/term v0.18.0/go.mod h1:ILwASektA3OnRv7amZ1xhE/KTR+u50pbXfZ03+6Nx58=
 golang.org/x/text v0.0.0-20170915032832-14c0d48ead0c/go.mod h1:NqM8EUOU14njkJ3fqMW+pc6Ldnwhi/IjpwHt7yyuwOQ=
 golang.org/x/text v0.3.0/go.mod h1:NqM8EUOU14njkJ3fqMW+pc6Ldnwhi/IjpwHt7yyuwOQ=
 golang.org/x/text v0.3.1-0.20180807135948-17ff2d5776d2/go.mod h1:NqM8EUOU14njkJ3fqMW+pc6Ldnwhi/IjpwHt7yyuwOQ=
@@ -710,8 +710,8 @@ golang.org/x/text v0.3.5/go.mod h1:5Zoc/QRtKVWzQhOtBMvqHzDpF6irO9z98xDceosuGiQ=
 golang.org/x/text v0.3.6/go.mod h1:5Zoc/QRtKVWzQhOtBMvqHzDpF6irO9z98xDceosuGiQ=
 golang.org/x/text v0.3.7/go.mod h1:u+2+/6zg+i71rQMx5EYifcz6MCKuco9NR6JIITiCfzQ=
 golang.org/x/text v0.4.0/go.mod h1:mrYo+phRRbMaCq/xk9113O4dZlRixOauAjOtrjsXDZ8=
-golang.org/x/text v0.13.0 h1:ablQoSUd0tRdKxZewP80B+BaqeKJuVhuRxj/dkrun3k=
-golang.org/x/text v0.13.0/go.mod h1:TvPlkZtksWOMsz7fbANvkp4WM8x/WCo/om8BMLbz+aE=
+golang.org/x/text v0.14.0 h1:ScX5w1eTa3QqT8oi6+ziP7dTV1S2+ALU0bI+0zXKWiQ=
+golang.org/x/text v0.14.0/go.mod h1:18ZOQIKpY8NJVqYksKHtTdi31H5itFRjB5/qKTNYzSU=
 golang.org/x/time v0.0.0-20181108054448-85acf8d2951c/go.mod h1:tRJNPiyCQ0inRvYxbN9jk5I+vvW/OXSQhTDSoE431IQ=
 golang.org/x/time v0.0.0-20190308202827-9d24e82272b4/go.mod h1:tRJNPiyCQ0inRvYxbN9jk5I+vvW/OXSQhTDSoE431IQ=
 golang.org/x/time v0.0.0-20191024005414-555d28b269f0/go.mod h1:tRJNPiyCQ0inRvYxbN9jk5I+vvW/OXSQhTDSoE431IQ=
diff --git a/test/e2e/unmanaged_k8s.go b/test/e2e/unmanaged_k8s.go
new file mode 100644
index 00000000..10987d69
--- /dev/null
+++ b/test/e2e/unmanaged_k8s.go
@@ -0,0 +1,136 @@
+/*
+Copyright 2020 The Kubernetes Authors.
+
+Licensed under the Apache License, Version 2.0 (the "License");
+you may not use this file except in compliance with the License.
+You may obtain a copy of the License at
+
+    http://www.apache.org/licenses/LICENSE-2.0
+
+Unless required by applicable law or agreed to in writing, software
+distributed under the License is distributed on an "AS IS" BASIS,
+WITHOUT WARRANTIES OR CONDITIONS OF ANY KIND, either express or implied.
+See the License for the specific language governing permissions and
+limitations under the License.
+*/
+
+package e2e
+
+import (
+	"context"
+	"fmt"
+	"os"
+	"path/filepath"
+	"strings"
+
+	"github.com/apache/cloudstack-go/v2/cloudstack"
+	"github.com/blang/semver"
+	. "github.com/onsi/ginkgo/v2"
+	. "github.com/onsi/gomega"
+	corev1 "k8s.io/api/core/v1"
+	"k8s.io/utils/pointer"
+
+	"sigs.k8s.io/cluster-api/test/framework/clusterctl"
+	"sigs.k8s.io/cluster-api/util"
+)
+
+// UnmanagedK8SSpec implements a spec that creates a cluster and checks whether an entry is created in ACS.
+func UnmanagedK8SSpec(ctx context.Context, inputGetter func() CommonSpecInput) {
+	var (
+		specName         = "k8s-unmanaged"
+		input            CommonSpecInput
+		namespace        *corev1.Namespace
+		cancelWatches    context.CancelFunc
+		clusterResources *clusterctl.ApplyClusterTemplateAndWaitResult
+	)
+
+	BeforeEach(func() {
+		Expect(ctx).NotTo(BeNil(), "ctx is required for %s spec", specName)
+		input = inputGetter()
+
+		csClient := CreateCloudStackClient(ctx, input.BootstrapClusterProxy.GetKubeconfigPath())
+		version, err := GetACSVersion(csClient)
+
+		if err != nil || version == "" {
+			Skip("Failed to get CloudStack's version")
+		}
+
+		v, err := semver.ParseTolerant(strings.Join(strings.Split(version, ".")[0:3], "."))
+
+		if err != nil {
+			Skip("Failed to parse CloudStack version " + version)
+		}
+
+		expectedRange, _ := semver.ParseRange(">=4.19.0")
+
+		if !expectedRange(v) {
+			Skip("Cloudstack version " + version + " is less than 4.19.")
+		}
+
+		Expect(input.E2EConfig).ToNot(BeNil(), "Invalid argument. input.E2EConfig can't be nil when calling %s spec", specName)
+		Expect(input.ClusterctlConfigPath).To(BeAnExistingFile(), "Invalid argument. input.ClusterctlConfigPath must be an existing file when calling %s spec", specName)
+		Expect(input.BootstrapClusterProxy).ToNot(BeNil(), "Invalid argument. input.BootstrapClusterProxy can't be nil when calling %s spec", specName)
+		Expect(os.MkdirAll(input.ArtifactFolder, 0750)).To(Succeed(), "Invalid argument. input.ArtifactFolder can't be created for %s spec", specName)
+
+		Expect(input.E2EConfig.Variables).To(HaveKey(KubernetesVersion))
+
+		// Setup a Namespace where to host objects for this spec and create a watcher for the namespace events.
+		namespace, cancelWatches = setupSpecNamespace(ctx, specName, input.BootstrapClusterProxy, input.ArtifactFolder)
+		clusterResources = new(clusterctl.ApplyClusterTemplateAndWaitResult)
+	})
+
+	It("Should create a workload cluster", func() {
+		By("Creating a workload cluster")
+
+		clusterName := fmt.Sprintf("%s-%s", specName, util.RandomString(6))
+
+		clusterctl.ApplyClusterTemplateAndWait(ctx, clusterctl.ApplyClusterTemplateAndWaitInput{
+			ClusterProxy:    input.BootstrapClusterProxy,
+			CNIManifestPath: input.E2EConfig.GetVariable(CNIPath),
+			ConfigCluster: clusterctl.ConfigClusterInput{
+				LogFolder:                filepath.Join(input.ArtifactFolder, "clusters", input.BootstrapClusterProxy.GetName()),
+				ClusterctlConfigPath:     input.ClusterctlConfigPath,
+				KubeconfigPath:           input.BootstrapClusterProxy.GetKubeconfigPath(),
+				InfrastructureProvider:   clusterctl.DefaultInfrastructureProvider,
+				Flavor:                   specName,
+				Namespace:                namespace.Name,
+				ClusterName:              clusterName,
+				KubernetesVersion:        input.E2EConfig.GetVariable(KubernetesVersion),
+				ControlPlaneMachineCount: pointer.Int64Ptr(1),
+				WorkerMachineCount:       pointer.Int64Ptr(1),
+			},
+			WaitForClusterIntervals:      input.E2EConfig.GetIntervals(specName, "wait-cluster"),
+			WaitForControlPlaneIntervals: input.E2EConfig.GetIntervals(specName, "wait-control-plane"),
+			WaitForMachineDeployments:    input.E2EConfig.GetIntervals(specName, "wait-worker-nodes"),
+		}, clusterResources)
+
+		By("checking unmanaged k8s resource is created on ACS")
+		// Get details from ACS
+		csClient := CreateCloudStackClient(ctx, input.BootstrapClusterProxy.GetKubeconfigPath())
+		lkcp := csClient.Kubernetes.NewListKubernetesClustersParams()
+		lkcp.SetListall(true)
+
+		clusters, err := csClient.Kubernetes.ListKubernetesClusters(lkcp)
+
+		if err != nil {
+			Fail("Failed to get Kubernetes clusters from ACS")
+		}
+
+		var cluster *cloudstack.KubernetesCluster
+
+		for _, d := range clusters.KubernetesClusters {
+			if strings.HasPrefix(d.Name, fmt.Sprintf("%s - %s", clusterName, clusterName)) {
+				cluster = d
+			}
+		}
+
+		Expect(cluster).ShouldNot(BeNil(), "Couldn't find the external managed kubernetes in ACS")
+		Expect(len(cluster.Virtualmachines)).Should(Equal(2), "Expected 2 VMs in the cluster, found %d", len(cluster.Virtualmachines))
+		By("PASSED!")
+	})
+
+	AfterEach(func() {
+		// Dumps all the resources in the spec namespace, then cleanups the cluster object and the spec namespace itself.
+		dumpSpecResourcesAndCleanup(ctx, specName, input.BootstrapClusterProxy, input.ArtifactFolder, namespace, cancelWatches, clusterResources.Cluster, input.E2EConfig.GetIntervals, input.SkipCleanup)
+	})
+}
diff --git a/test/e2e/unmanaged_k8s_test.go b/test/e2e/unmanaged_k8s_test.go
new file mode 100644
index 00000000..5951d163
--- /dev/null
+++ b/test/e2e/unmanaged_k8s_test.go
@@ -0,0 +1,36 @@
+//go:build e2e
+// +build e2e
+
+/*
+Copyright 2020 The Kubernetes Authors.
+
+Licensed under the Apache License, Version 2.0 (the "License");
+you may not use this file except in compliance with the License.
+You may obtain a copy of the License at
+
+    http://www.apache.org/licenses/LICENSE-2.0
+
+Unless required by applicable law or agreed to in writing, software
+distributed under the License is distributed on an "AS IS" BASIS,
+WITHOUT WARRANTIES OR CONDITIONS OF ANY KIND, either express or implied.
+See the License for the specific language governing permissions and
+limitations under the License.
+*/
+
+package e2e
+
+import (
+	. "github.com/onsi/ginkgo/v2"
+)
+
+var _ = Describe("When testing creation of unmanaged CKS cluster in ACS", func() {
+	UnmanagedK8SSpec(ctx, func() CommonSpecInput {
+		return CommonSpecInput{
+			E2EConfig:             e2eConfig,
+			ClusterctlConfigPath:  clusterctlConfigPath,
+			BootstrapClusterProxy: bootstrapClusterProxy,
+			ArtifactFolder:        artifactFolder,
+			SkipCleanup:           skipCleanup,
+		}
+	})
+})