diff --git a/internal/controllers/machine/machine_controller_phases.go b/internal/controllers/machine/machine_controller_phases.go
index f7e53d0ce232..6d00dbebca27 100644
--- a/internal/controllers/machine/machine_controller_phases.go
+++ b/internal/controllers/machine/machine_controller_phases.go
@@ -132,29 +132,26 @@ func (r *Reconciler) reconcileBootstrap(ctx context.Context, s *scope) (ctrl.Res
 	cluster := s.cluster
 	m := s.machine
 
-	// If the Bootstrap ref is nil (and so the machine should use user generated data secret), return.
-	if m.Spec.Bootstrap.ConfigRef == nil {
-		return ctrl.Result{}, nil
-	}
-
-	// Call generic external reconciler if we have an external reference.
-	obj, err := r.reconcileExternal(ctx, cluster, m, m.Spec.Bootstrap.ConfigRef)
-	if err != nil {
-		if apierrors.IsNotFound(err) {
-			s.bootstrapConfigIsNotFound = true
-
-			if !s.machine.DeletionTimestamp.IsZero() {
-				// Tolerate bootstrap object not found when the machine is being deleted.
-				// TODO: we can also relax this and tolerate the absence of the bootstrap ref way before, e.g. after node ref is set
-				return ctrl.Result{}, nil
+	if m.Spec.Bootstrap.ConfigRef != nil {
+		// Call generic external reconciler if we have an external reference.
+		obj, err := r.reconcileExternal(ctx, cluster, m, m.Spec.Bootstrap.ConfigRef)
+		if err != nil {
+			if apierrors.IsNotFound(err) {
+				s.bootstrapConfigIsNotFound = true
+
+				if !s.machine.DeletionTimestamp.IsZero() {
+					// Tolerate bootstrap object not found when the machine is being deleted.
+					// TODO: we can also relax this and tolerate the absence of the bootstrap ref way before, e.g. after node ref is set
+					return ctrl.Result{}, nil
+				}
+				log.Info("Could not find bootstrap config object, requeuing", m.Spec.Bootstrap.ConfigRef.Kind, klog.KRef(m.Spec.Bootstrap.ConfigRef.Namespace, m.Spec.Bootstrap.ConfigRef.Name))
+				// TODO: we can make this smarter and requeue only if we are before node ref is set
+				return ctrl.Result{RequeueAfter: externalReadyWait}, nil
 			}
-			log.Info("Could not find bootstrap config object, requeuing", m.Spec.Bootstrap.ConfigRef.Kind, klog.KRef(m.Spec.Bootstrap.ConfigRef.Namespace, m.Spec.Bootstrap.ConfigRef.Name))
-			// TODO: we can make this smarter and requeue only if we are before node ref is set
-			return ctrl.Result{RequeueAfter: externalReadyWait}, nil
+			return ctrl.Result{}, err
 		}
-		return ctrl.Result{}, err
+		s.bootstrapConfig = obj
 	}
-	s.bootstrapConfig = obj
 
 	// If the bootstrap data is populated, set ready and return.
 	if m.Spec.Bootstrap.DataSecretName != nil {
@@ -163,6 +160,11 @@ func (r *Reconciler) reconcileBootstrap(ctx context.Context, s *scope) (ctrl.Res
 		return ctrl.Result{}, nil
 	}
 
+	// If the Bootstrap ref is nil (and so the machine should use user generated data secret), return.
+	if m.Spec.Bootstrap.ConfigRef == nil {
+		return ctrl.Result{}, nil
+	}
+
 	// Determine if the bootstrap provider is ready.
 	ready, err := external.IsReady(s.bootstrapConfig)
 	if err != nil {