diff --git a/go-controller/pkg/clustermanager/egressip_controller.go b/go-controller/pkg/clustermanager/egressip_controller.go
index 70ec7a58e2..b035fd88e1 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 +212,31 @@ 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 if the node it was assigned to no longer exists
+				assignedCondition := meta.FindStatusCondition(cloudPrivateIPConfig.Status.Conditions, string(ocpcloudnetworkapi.Assigned))
+				if cloudPrivateIPConfig.Status.Node != "" && assignedCondition != nil && assignedCondition.Status == metav1.ConditionFalse {
+					_, err := eIPC.watchFactory.GetNode(cloudPrivateIPConfig.Status.Node)
+					if err != nil && apierrors.IsNotFound(err) {
+						klog.Warningf("CloudPrivateIPConfig: %s is in Failed state (reason: %s) and node %s no longer exists, deleting to allow retry",
+							cloudPrivateIPConfigName, assignedCondition.Message, cloudPrivateIPConfig.Status.Node)
+						eIPRef := corev1.ObjectReference{
+							Kind: "EgressIP",
+							Name: egressIPName,
+						}
+						eIPC.recorder.Eventf(&eIPRef, corev1.EventTypeWarning, "CloudAssignmentRetry",
+							"egress IP: %s previously failed on deleted node %s (reason: %s), will retry assignment",
+							egressIP, cloudPrivateIPConfig.Status.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 fmt.Errorf("deleted failed CloudPrivateIPConfig: %s, will retry creation in next reconciliation", cloudPrivateIPConfigName)
+					} else if err != nil {
+						klog.Errorf("Failed to check if node %s exists for CloudPrivateIPConfig %s: %v", cloudPrivateIPConfig.Status.Node, cloudPrivateIPConfigName, err)
+					}
+				}
+
 				if op.toAdd == cloudPrivateIPConfig.Spec.Node {
 					klog.Infof("CloudPrivateIPConfig: %s already assigned to node: %s", cloudPrivateIPConfigName, cloudPrivateIPConfig.Spec.Node)
 					continue
@@ -1671,21 +1697,21 @@ func cloudPrivateIPConfigNameToIPString(name string) string {
 // removePendingOps removes the existing pending CloudPrivateIPConfig operations
 // from the cache and returns the EgressIP object which can be re-synced given
 // the new assignment possibilities.
-func (eIPC *egressIPClusterController) removePendingOpsAndGetResyncs(egressIPName, egressIP string) ([]*egressipv1.EgressIP, error) {
+func (eIPC *egressIPClusterController) removePendingOpsAndGetResyncs(egressIPName, egressIPAddr string) ([]*egressipv1.EgressIP, error) {
 	eIPC.pendingCloudPrivateIPConfigsMutex.Lock()
 	defer eIPC.pendingCloudPrivateIPConfigsMutex.Unlock()
 	ops, pending := eIPC.pendingCloudPrivateIPConfigsOps[egressIPName]
 	if !pending {
 		return nil, fmt.Errorf("no pending operation found for EgressIP: %s", egressIPName)
 	}
-	op, exists := ops[egressIP]
+	op, exists := ops[egressIPAddr]
 	if !exists {
-		return nil, fmt.Errorf("pending operations found for EgressIP: %s, but not for the finalized IP: %s", egressIPName, egressIP)
+		return nil, fmt.Errorf("pending operations found for EgressIP: %s, but not for the finalized IP: %s", egressIPName, egressIPAddr)
 	}
 	// Make sure we are dealing with a delete operation, since for update
 	// operations will still need to process the add afterwards.
 	if op.toAdd == "" && op.toDelete != "" {
-		delete(ops, egressIP)
+		delete(ops, egressIPAddr)
 	}
 	if len(ops) == 0 {
 		delete(eIPC.pendingCloudPrivateIPConfigsOps, egressIPName)
@@ -1703,10 +1729,15 @@ func (eIPC *egressIPClusterController) removePendingOpsAndGetResyncs(egressIPNam
 	resyncs := make([]*egressipv1.EgressIP, 0, len(egressIPs))
 	for _, egressIP := range egressIPs {
 		egressIP := *egressIP
-		// Do not process the egress IP object which owns the
-		// CloudPrivateIPConfig for which we are currently processing the
-		// deletion for.
 		if egressIP.Name == egressIPName {
+			for _, specIP := range egressIP.Spec.EgressIPs {
+				// Do not process the egress IP object which owns the
+				// CloudPrivateIPConfig for which we are currently processing the
+				// deletion for unless it still has the IP in it's spec
+				if specIP == egressIPAddr {
+					resyncs = append(resyncs, &egressIP)
+				}
+			}
 			continue
 		}
 		unassigned := len(egressIP.Spec.EgressIPs) - len(egressIP.Status.Items)