diff --git a/pkg/cloud/services/securitygroup/securitygroups.go b/pkg/cloud/services/securitygroup/securitygroups.go
index a0ffb9c7df..1744f67f1a 100644
--- a/pkg/cloud/services/securitygroup/securitygroups.go
+++ b/pkg/cloud/services/securitygroup/securitygroups.go
@@ -162,6 +162,12 @@ func (s *Service) ReconcileSecurityGroups() error {
 
 func (s *Service) DeleteSecurityGroups() error {
 	conditions.MarkFalse(s.scope.InfraCluster(), infrav1.ClusterSecurityGroupsReadyCondition, clusterv1.DeletingReason, clusterv1.ConditionSeverityInfo, "")
+	if s.scope.VPC().ID == "" {
+		s.scope.V(2).Info("Skipping security group deletion, vpc-id is nil", "vpc-id", s.scope.VPC().ID)
+		conditions.MarkFalse(s.scope.InfraCluster(), infrav1.ClusterSecurityGroupsReadyCondition, clusterv1.DeletedReason, clusterv1.ConditionSeverityInfo, "")
+		return nil
+	}
+
 	if err := s.scope.PatchObject(); err != nil {
 		return err
 	}