diff --git a/.gitignore b/.gitignore
index 5defddd0e9..5295f1e8a2 100644
--- a/.gitignore
+++ b/.gitignore
@@ -15,4 +15,8 @@
 vendor
 
 # Ansible
-*.retry
\ No newline at end of file
+*.retry
+
+# vim
+*~
+*.swp
diff --git a/cloud/aws/actuators/machine/actuator.go b/cloud/aws/actuators/machine/actuator.go
index 4786d0953f..0d335aa0ed 100644
--- a/cloud/aws/actuators/machine/actuator.go
+++ b/cloud/aws/actuators/machine/actuator.go
@@ -20,6 +20,7 @@ import (
 	ec2svc "sigs.k8s.io/cluster-api-provider-aws/cloud/aws/services/ec2"
 
 	"github.com/golang/glog"
+	"github.com/pkg/errors"
 	"k8s.io/apimachinery/pkg/runtime"
 	clusterv1 "sigs.k8s.io/cluster-api/pkg/apis/cluster/v1alpha1"
 )
@@ -34,6 +35,7 @@ type machinesSvc interface {
 type ec2Svc interface {
 	CreateInstance(*clusterv1.Machine) (*ec2svc.Instance, error)
 	InstanceIfExists(*string) (*ec2svc.Instance, error)
+	TerminateInstance(*string) error
 }
 
 // codec are the functions off the generated codec that this actuator uses.
@@ -109,7 +111,32 @@ func (a *Actuator) Create(cluster *clusterv1.Cluster, machine *clusterv1.Machine
 // Delete deletes a machine and is invoked by the Machine Controller
 func (a *Actuator) Delete(cluster *clusterv1.Cluster, machine *clusterv1.Machine) error {
 	glog.Infof("Deleting machine %v for cluster %v.", machine.Name, cluster.Name)
-	return fmt.Errorf("TODO: Not yet implemented")
+
+	status, err := a.machineProviderStatus(machine)
+	if err != nil {
+		return errors.Wrap(err, "failed to get machine provider status")
+	}
+
+	instance, err := a.ec2.InstanceIfExists(status.InstanceID)
+	if err != nil {
+		return errors.Wrap(err, "failed to get instance")
+	}
+
+	// Check the instance state. If it's already shutting down or terminated,
+	// do nothing. Otherwise attempt to delete it.
+	// This decision is based on the ec2-instance-lifecycle graph at
+	// https://docs.aws.amazon.com/AWSEC2/latest/UserGuide/ec2-instance-lifecycle.html
+	switch instance.State {
+	case ec2svc.InstanceStateShuttingDown, ec2svc.InstanceStateTerminated:
+		return nil
+	default:
+		err = a.ec2.TerminateInstance(status.InstanceID)
+		if err != nil {
+			return errors.Wrap(err, "failed to terminate instance")
+		}
+	}
+
+	return nil
 }
 
 // Update updates a machine and is invoked by the Machine Controller
diff --git a/cloud/aws/actuators/machine/actuator_test.go b/cloud/aws/actuators/machine/actuator_test.go
index be321aca07..9d749acf54 100644
--- a/cloud/aws/actuators/machine/actuator_test.go
+++ b/cloud/aws/actuators/machine/actuator_test.go
@@ -14,6 +14,7 @@
 package machine_test
 
 import (
+	"errors"
 	"testing"
 
 	"sigs.k8s.io/cluster-api-provider-aws/cloud/aws/actuators/machine"
@@ -41,6 +42,14 @@ func (e *ec2) InstanceIfExists(id *string) (*ec2svc.Instance, error) {
 	return nil, nil
 }
 
+func (e *ec2) TerminateInstance(instanceID *string) error {
+	if instanceID == nil {
+		return errors.New("didn't receive an instanceID")
+	}
+
+	return nil
+}
+
 type machines struct{}
 
 func (m *machines) UpdateMachineStatus(machine *clusterv1.Machine) (*clusterv1.Machine, error) {
@@ -66,3 +75,35 @@ func TestCreate(t *testing.T) {
 		t.Fatalf("failed to create machine: %v", err)
 	}
 }
+
+func TestDelete(t *testing.T) {
+	codec, err := v1alpha1.NewCodec()
+	if err != nil {
+		t.Fatalf("failed to create a codec: %v", err)
+	}
+
+	ap := machine.ActuatorParams{
+		Codec:           codec,
+		MachinesService: &machines{},
+		EC2Service:      &ec2{},
+	}
+
+	actuator, err := machine.NewActuator(ap)
+	if err != nil {
+		t.Fatalf("failed to create an actuator: %v", err)
+	}
+
+	// Get some empty cluster and machine structs.
+	testCluster := &clusterv1.Cluster{}
+	testMachine := &clusterv1.Machine{}
+
+	// Create a machine that we can delete.
+	if err := actuator.Create(testCluster, testMachine); err != nil {
+		t.Fatalf("failed to create machine: %v", err)
+	}
+
+	// Delete the machine.
+	if err := actuator.Delete(testCluster, testMachine); err != nil {
+		t.Fatalf("failed to delete machine: %v", err)
+	}
+}
diff --git a/cloud/aws/services/ec2/instances.go b/cloud/aws/services/ec2/instances.go
index a80de42c6e..8d52f1416f 100644
--- a/cloud/aws/services/ec2/instances.go
+++ b/cloud/aws/services/ec2/instances.go
@@ -19,6 +19,14 @@ import (
 	clusterv1 "sigs.k8s.io/cluster-api/pkg/apis/cluster/v1alpha1"
 )
 
+const (
+	// InstanceStateShuttingDown indicates the instance is shutting-down
+	InstanceStateShuttingDown = ec2.InstanceStateNameShuttingDown
+
+	// InstanceStateTerminated indicates the instance has been terminated
+	InstanceStateTerminated = ec2.InstanceStateNameTerminated
+)
+
 // Instance is an internal representation of an AWS instance.
 // This contains more data than the provider config struct tracked in the status.
 type Instance struct {
@@ -67,3 +75,20 @@ func (s *Service) CreateInstance(machine *clusterv1.Machine) (*Instance, error)
 		ID:    *reservation.Instances[0].InstanceId,
 	}, nil
 }
+
+// TerminateInstance terminates an EC2 instance.
+// Returns nil on success, error in all other cases.
+func (s *Service) TerminateInstance(instanceID *string) error {
+	input := &ec2.TerminateInstancesInput{
+		InstanceIds: []*string{
+			instanceID,
+		},
+	}
+
+	_, err := s.ec2.TerminateInstances(input)
+	if err != nil {
+		return err
+	}
+
+	return nil
+}
diff --git a/cloud/aws/services/ec2/instances_test.go b/cloud/aws/services/ec2/instances_test.go
index fdc490aadf..9e12654c07 100644
--- a/cloud/aws/services/ec2/instances_test.go
+++ b/cloud/aws/services/ec2/instances_test.go
@@ -19,6 +19,7 @@ import (
 	"github.com/aws/aws-sdk-go/aws"
 	"github.com/aws/aws-sdk-go/service/ec2"
 	"github.com/golang/mock/gomock"
+	"github.com/pkg/errors"
 	ec2svc "sigs.k8s.io/cluster-api-provider-aws/cloud/aws/services/ec2"
 	"sigs.k8s.io/cluster-api-provider-aws/cloud/aws/services/ec2/mock_ec2iface"
 )
@@ -103,3 +104,60 @@ func TestInstanceIfExists(t *testing.T) {
 		})
 	}
 }
+
+func TestTerminateInstance(t *testing.T) {
+	mockCtrl := gomock.NewController(t)
+	defer mockCtrl.Finish()
+
+	instanceNotFoundError := errors.New("instance not found")
+
+	testCases := []struct {
+		name       string
+		instanceID string
+		expect     func(m *mock_ec2iface.MockEC2API)
+		check      func(err error)
+	}{
+		{
+			name:       "instance exists",
+			instanceID: "i-exist",
+			expect: func(m *mock_ec2iface.MockEC2API) {
+				m.EXPECT().
+					TerminateInstances(gomock.Eq(&ec2.TerminateInstancesInput{
+						InstanceIds: []*string{aws.String("i-exist")},
+					})).
+					Return(&ec2.TerminateInstancesOutput{}, nil)
+			},
+			check: func(err error) {
+				if err != nil {
+					t.Fatalf("did not expect error: %v", err)
+				}
+			},
+		},
+		{
+			name:       "instance does not exist",
+			instanceID: "i-donotexist",
+			expect: func(m *mock_ec2iface.MockEC2API) {
+				m.EXPECT().
+					TerminateInstances(gomock.Eq(&ec2.TerminateInstancesInput{
+						InstanceIds: []*string{aws.String("i-donotexist")},
+					})).
+					Return(&ec2.TerminateInstancesOutput{}, instanceNotFoundError)
+			},
+			check: func(err error) {
+				if err == nil {
+					t.Fatalf("did not expect error: %v", err)
+				}
+			},
+		},
+	}
+
+	for _, tc := range testCases {
+		t.Run(tc.name, func(t *testing.T) {
+			ec2Mock := mock_ec2iface.NewMockEC2API(mockCtrl)
+			tc.expect(ec2Mock)
+			s := ec2svc.NewService(ec2Mock)
+			err := s.TerminateInstance(&tc.instanceID)
+			tc.check(err)
+		})
+	}
+}