diff --git a/charts/cluster-api-runtime-extensions-nutanix/addons/ccm/nutanix/values-template.yaml b/charts/cluster-api-runtime-extensions-nutanix/addons/ccm/nutanix/values-template.yaml
index 707a1b4af..fe34d44b1 100644
--- a/charts/cluster-api-runtime-extensions-nutanix/addons/ccm/nutanix/values-template.yaml
+++ b/charts/cluster-api-runtime-extensions-nutanix/addons/ccm/nutanix/values-template.yaml
@@ -4,9 +4,9 @@ prismCentralInsecure: {{ .PrismCentralInsecure }}
 {{- with .PrismCentralAdditionalTrustBundle }}
 prismCentralAdditionalTrustBundle: "{{ . }}"
 {{- end }}
-{{- with .ControlPlaneEndpointHost }}
-ignoredNodeIPs: [ {{ printf "%q" . }} ]
- {{- end }}
+{{- with .IPsToIgnore }}
+ignoredNodeIPs: [ {{ joinQuoted . }} ]
+{{- end }}
 
 # The Secret containing the credentials will be created by the handler.
 createSecret: false
diff --git a/pkg/handlers/generic/lifecycle/ccm/nutanix/handler.go b/pkg/handlers/generic/lifecycle/ccm/nutanix/handler.go
index a6e1ebbf3..4c9b12fc9 100644
--- a/pkg/handlers/generic/lifecycle/ccm/nutanix/handler.go
+++ b/pkg/handlers/generic/lifecycle/ccm/nutanix/handler.go
@@ -8,6 +8,7 @@ import (
 	"context"
 	"errors"
 	"fmt"
+	"strings"
 	"text/template"
 
 	"github.com/go-logr/logr"
@@ -140,7 +141,15 @@ func templateValuesFunc(
 	nutanixConfig *v1alpha1.NutanixSpec,
 ) func(*clusterv1.Cluster, string) (string, error) {
 	return func(_ *clusterv1.Cluster, valuesTemplate string) (string, error) {
-		helmValuesTemplate, err := template.New("").Parse(valuesTemplate)
+		joinQuoted := template.FuncMap{
+			"joinQuoted": func(items []string) string {
+				for i, item := range items {
+					items[i] = fmt.Sprintf("%q", item)
+				}
+				return strings.Join(items, ", ")
+			},
+		}
+		helmValuesTemplate, err := template.New("").Funcs(joinQuoted).Parse(valuesTemplate)
 		if err != nil {
 			return "", fmt.Errorf("failed to parse Helm values template: %w", err)
 		}
@@ -150,7 +159,7 @@ func templateValuesFunc(
 			PrismCentralPort                  uint16
 			PrismCentralInsecure              bool
 			PrismCentralAdditionalTrustBundle string
-			ControlPlaneEndpointHost          string
+			IPsToIgnore                       []string
 		}
 
 		address, port, err := nutanixConfig.PrismCentralEndpoint.ParseURL()
@@ -162,7 +171,7 @@ func templateValuesFunc(
 			PrismCentralPort:                  port,
 			PrismCentralInsecure:              nutanixConfig.PrismCentralEndpoint.Insecure,
 			PrismCentralAdditionalTrustBundle: nutanixConfig.PrismCentralEndpoint.AdditionalTrustBundle,
-			ControlPlaneEndpointHost:          nutanixConfig.ControlPlaneEndpoint.Host,
+			IPsToIgnore:                       ipsToIgnore(nutanixConfig),
 		}
 
 		var b bytes.Buffer
@@ -174,3 +183,17 @@ func templateValuesFunc(
 		return b.String(), nil
 	}
 }
+
+func ipsToIgnore(nutanixConfig *v1alpha1.NutanixSpec) []string {
+	toIgnore := []string{nutanixConfig.ControlPlaneEndpoint.Host}
+	// Also ignore the virtual IP if it is set.
+	if nutanixConfig.ControlPlaneEndpoint.VirtualIPSpec != nil &&
+		nutanixConfig.ControlPlaneEndpoint.VirtualIPSpec.Configuration != nil &&
+		nutanixConfig.ControlPlaneEndpoint.VirtualIPSpec.Configuration.Address != "" {
+		toIgnore = append(
+			toIgnore,
+			nutanixConfig.ControlPlaneEndpoint.VirtualIPSpec.Configuration.Address,
+		)
+	}
+	return toIgnore
+}
diff --git a/pkg/handlers/generic/lifecycle/ccm/nutanix/handler_test.go b/pkg/handlers/generic/lifecycle/ccm/nutanix/handler_test.go
index 3059f7c43..2daccbb1c 100644
--- a/pkg/handlers/generic/lifecycle/ccm/nutanix/handler_test.go
+++ b/pkg/handlers/generic/lifecycle/ccm/nutanix/handler_test.go
@@ -39,6 +39,16 @@ prismCentralPort: 9440
 prismCentralInsecure: true
 ignoredNodeIPs: [ "1.2.3.4" ]
 
+# The Secret containing the credentials will be created by the handler.
+createSecret: false
+secretName: nutanix-ccm-credentials
+`
+
+	expectedWithVirtualIPSet = `prismCentralEndPoint: prism-central.nutanix.com
+prismCentralPort: 9440
+prismCentralInsecure: true
+ignoredNodeIPs: [ "1.2.3.4", "5.6.7.8" ]
+
 # The Secret containing the credentials will be created by the handler.
 createSecret: false
 secretName: nutanix-ccm-credentials
@@ -127,6 +137,41 @@ func Test_templateValues(t *testing.T) {
 			in:       valuesTemplate,
 			expected: expectedWithoutAdditionalTrustBundle,
 		},
+		{
+			name: "With VirtualIP Set",
+			clusterConfig: &apivariables.ClusterConfigSpec{
+				Addons: &apivariables.Addons{
+					GenericAddons: v1alpha1.GenericAddons{
+						CCM: &v1alpha1.CCM{
+							Credentials: &v1alpha1.CCMCredentials{
+								SecretRef: v1alpha1.LocalObjectReference{
+									Name: "creds",
+								},
+							},
+						},
+					},
+				},
+				Nutanix: &v1alpha1.NutanixSpec{
+					PrismCentralEndpoint: v1alpha1.NutanixPrismCentralEndpointSpec{
+						URL: fmt.Sprintf(
+							"https://prism-central.nutanix.com:%d",
+							v1alpha1.DefaultPrismCentralPort,
+						),
+						Insecure: true,
+					},
+					ControlPlaneEndpoint: v1alpha1.ControlPlaneEndpointSpec{
+						Host: "1.2.3.4",
+						VirtualIPSpec: &v1alpha1.ControlPlaneVirtualIPSpec{
+							Configuration: &v1alpha1.ControlPlaneVirtualIPConfiguration{
+								Address: "5.6.7.8",
+							},
+						},
+					},
+				},
+			},
+			in:       valuesTemplate,
+			expected: expectedWithVirtualIPSet,
+		},
 	}
 	for idx := range tests {
 		tt := tests[idx]