diff --git a/api/v1alpha3/tags.go b/api/v1alpha3/tags.go
index f5ac6cc73..c97bc37c3 100644
--- a/api/v1alpha3/tags.go
+++ b/api/v1alpha3/tags.go
@@ -45,6 +45,12 @@ func ClusterNameRoleTag(clusterName, role string) string {
 	return fmt.Sprintf("%s:%s:%s", NameDigitalOceanProviderPrefix, clusterName, role)
 }
 
+// ClusterNameUIDRoleTag generates the tag with prefix `NameDigitalOceanProviderPrefix` and `RoleValue` as suffix
+// It will generated tag like `sigs-k8s-io:capdo:{clusterName}:{UID}:{role}`.
+func ClusterNameUIDRoleTag(clusterName, clusterUID, role string) string {
+	return fmt.Sprintf("%s:%s:%s:%s", NameDigitalOceanProviderPrefix, clusterName, clusterUID, role)
+}
+
 // NameTagFromName returns DigitalOcean safe name tag from name.
 func NameTagFromName(name string) string {
 	return fmt.Sprintf("name:%s", DOSafeName(name))
@@ -54,6 +60,8 @@ func NameTagFromName(name string) string {
 type BuildTagParams struct {
 	// ClusterName is the cluster associated with the resource.
 	ClusterName string
+	// ClusterUID is the cluster uid from clusters.cluster.x-k8s.io uid
+	ClusterUID string
 	// Name is the name of the resource, it's applied as the tag "name" on DigitalOcean.
 	Name string
 	// Role is the role associated to the resource.
@@ -68,6 +76,7 @@ func BuildTags(params BuildTagParams) Tags {
 	var tags Tags
 	tags = append(tags, ClusterNameTag(params.ClusterName))
 	tags = append(tags, ClusterNameRoleTag(params.ClusterName, params.Role))
+	tags = append(tags, ClusterNameUIDRoleTag(params.ClusterName, params.ClusterUID, params.Role))
 	tags = append(tags, NameTagFromName(params.Name))
 
 	tags = append(tags, params.Additional...)
diff --git a/api/v1alpha3/tags_test.go b/api/v1alpha3/tags_test.go
index 4fcbfadb1..123819116 100644
--- a/api/v1alpha3/tags_test.go
+++ b/api/v1alpha3/tags_test.go
@@ -35,11 +35,17 @@ func TestBuildTags(t *testing.T) {
 			args: args{
 				params: BuildTagParams{
 					ClusterName: "foo",
+					ClusterUID:  "155bd6ca-c6a9-45a8-8c9c-05e09b36bc42",
 					Name:        "bar",
 					Role:        APIServerRoleTagValue,
 				},
 			},
-			want: Tags{ClusterNameTag("foo"), ClusterNameRoleTag("foo", APIServerRoleTagValue), "name:" + "bar"},
+			want: Tags{
+				ClusterNameTag("foo"),
+				ClusterNameRoleTag("foo", APIServerRoleTagValue),
+				ClusterNameUIDRoleTag("foo", "155bd6ca-c6a9-45a8-8c9c-05e09b36bc42", APIServerRoleTagValue),
+				NameTagFromName("bar"),
+			},
 		},
 	}
 	for _, tt := range tests {
diff --git a/cloud/scope/cluster.go b/cloud/scope/cluster.go
index 530fa8520..c1f8d64b7 100644
--- a/cloud/scope/cluster.go
+++ b/cloud/scope/cluster.go
@@ -123,6 +123,10 @@ func (s *ClusterScope) Namespace() string {
 	return s.Cluster.GetNamespace()
 }
 
+func (s *ClusterScope) UID() string {
+	return string(s.Cluster.UID)
+}
+
 // Region returns the cluster region.
 func (s *ClusterScope) Region() string {
 	return s.DOCluster.Spec.Region
diff --git a/cloud/services/computes/droplets.go b/cloud/services/computes/droplets.go
index 6695489bf..43cb3413e 100644
--- a/cloud/services/computes/droplets.go
+++ b/cloud/services/computes/droplets.go
@@ -112,6 +112,7 @@ func (s *Service) CreateDroplet(scope *scope.MachineScope) (*godo.Droplet, error
 
 	request.Tags = infrav1.BuildTags(infrav1.BuildTagParams{
 		ClusterName: clusterName,
+		ClusterUID:  s.scope.UID(),
 		Name:        instanceName,
 		Role:        scope.Role(),
 		Additional:  scope.AdditionalTags(),
diff --git a/cloud/services/networking/loadbalancers.go b/cloud/services/networking/loadbalancers.go
index cc0f15229..569819a44 100644
--- a/cloud/services/networking/loadbalancers.go
+++ b/cloud/services/networking/loadbalancers.go
@@ -42,7 +42,7 @@ func (s *Service) GetLoadBalancer(id string) (*godo.LoadBalancer, error) {
 
 func (s *Service) CreateLoadBalancer(spec *infrav1.DOLoadBalancer) (*godo.LoadBalancer, error) {
 	clusterName := infrav1.DOSafeName(s.scope.Name())
-	name := clusterName + "-" + infrav1.APIServerRoleTagValue
+	name := clusterName + "-" + infrav1.APIServerRoleTagValue + "-" + s.scope.UID()
 	request := &godo.LoadBalancerRequest{
 		Name:      name,
 		Algorithm: spec.Algorithm,
@@ -63,7 +63,7 @@ func (s *Service) CreateLoadBalancer(spec *infrav1.DOLoadBalancer) (*godo.LoadBa
 			UnhealthyThreshold:     spec.HealthCheck.UnhealthyThreshold,
 			HealthyThreshold:       spec.HealthCheck.HealthyThreshold,
 		},
-		Tag:     infrav1.ClusterNameRoleTag(clusterName, infrav1.APIServerRoleTagValue),
+		Tag:     infrav1.ClusterNameUIDRoleTag(clusterName, s.scope.UID(), infrav1.APIServerRoleTagValue),
 		VPCUUID: s.scope.VPC().VPCUUID,
 	}