diff --git a/pkg/cloudprovider/aws/errors.go b/pkg/cloudprovider/aws/errors.go
index 9839b1bab4ae..f275353bcf93 100644
--- a/pkg/cloudprovider/aws/errors.go
+++ b/pkg/cloudprovider/aws/errors.go
@@ -43,6 +43,10 @@ var (
 
 type SpotFallbackError error
 
+type InstanceTerminatedError struct {
+	error
+}
+
 func isSpotFallback(err error) bool {
 	if err == nil {
 		return false
@@ -51,6 +55,14 @@ func isSpotFallback(err error) bool {
 	return errors.As(err, &sfbErr)
 }
 
+func isInstanceTerminated(err error) bool {
+	if err == nil {
+		return false
+	}
+	var itErr InstanceTerminatedError
+	return errors.As(err, &itErr)
+}
+
 // isNotFound returns true if the err is an AWS error (even if it's
 // wrapped) and is a known to mean "not found" (as opposed to a more
 // serious or unexpected error)
diff --git a/pkg/cloudprovider/aws/fake/ec2api.go b/pkg/cloudprovider/aws/fake/ec2api.go
index a0e95e7f9b44..c82cf84e04e4 100644
--- a/pkg/cloudprovider/aws/fake/ec2api.go
+++ b/pkg/cloudprovider/aws/fake/ec2api.go
@@ -136,6 +136,7 @@ func (e *EC2API) CreateFleetWithContext(_ context.Context, input *ec2.CreateFlee
 			if skipInstance {
 				continue
 			}
+			instanceState := ec2.InstanceStateNameRunning
 			for i := 0; i < int(*input.TargetCapacitySpecification.TotalTargetCapacity); i++ {
 				instance := &ec2.Instance{
 					InstanceId:            aws.String(test.RandomName()),
@@ -143,6 +144,9 @@ func (e *EC2API) CreateFleetWithContext(_ context.Context, input *ec2.CreateFlee
 					PrivateDnsName:        aws.String(randomdata.IpV4Address()),
 					InstanceType:          input.LaunchTemplateConfigs[0].Overrides[0].InstanceType,
 					SpotInstanceRequestId: spotInstanceRequestID,
+					State: &ec2.InstanceState{
+						Name: &instanceState,
+					},
 				}
 				e.Instances.Store(*instance.InstanceId, instance)
 				instanceIds = append(instanceIds, instance.InstanceId)
diff --git a/pkg/cloudprovider/aws/instance.go b/pkg/cloudprovider/aws/instance.go
index 36a4349eacc8..804b07a186ec 100644
--- a/pkg/cloudprovider/aws/instance.go
+++ b/pkg/cloudprovider/aws/instance.go
@@ -125,6 +125,14 @@ func (p *InstanceProvider) Terminate(ctx context.Context, node *v1.Node) error {
 		if isNotFound(err) {
 			return nil
 		}
+		if _, errMsg := p.getInstance(ctx, aws.StringValue(id)); err != nil {
+			if isInstanceTerminated(errMsg) || isNotFound(errMsg) {
+				logging.FromContext(ctx).Debugf("Instance already terminated, %s", node.Name)
+				return nil
+			}
+			err = multierr.Append(err, errMsg)
+		}
+
 		return fmt.Errorf("terminating instance %s, %w", node.Name, err)
 	}
 	return nil
@@ -286,9 +294,12 @@ func (p *InstanceProvider) getInstance(ctx context.Context, id string) (*ec2.Ins
 		return nil, fmt.Errorf("failed to describe ec2 instances, %w", err)
 	}
 	if len(describeInstancesOutput.Reservations) != 1 || len(describeInstancesOutput.Reservations[0].Instances) != 1 {
-		return nil, fmt.Errorf("expected instance but got 0")
+		return nil, InstanceTerminatedError{fmt.Errorf("expected instance but got 0")}
 	}
 	instance := describeInstancesOutput.Reservations[0].Instances[0]
+	if *instance.State.Name == ec2.InstanceStateNameTerminated {
+		return nil, InstanceTerminatedError{fmt.Errorf("instance is in terminated state")}
+	}
 	if injection.GetOptions(ctx).GetAWSNodeNameConvention() == options.ResourceName {
 		return instance, nil
 	}