diff --git a/pkg/controller/vsphere/reconciler.go b/pkg/controller/vsphere/reconciler.go
index 5fd0b5fbc2..f036db046f 100644
--- a/pkg/controller/vsphere/reconciler.go
+++ b/pkg/controller/vsphere/reconciler.go
@@ -1031,7 +1031,7 @@ func (vm *virtualMachine) checkAttachedTag(ctx context.Context, tagName string,
 }
 
 func (vm *virtualMachine) foundTag(ctx context.Context, tagName string, m *tags.Manager) (bool, error) {
-	tags, err := m.ListTags(ctx)
+	tags, err := m.ListTagsForCategory(ctx,"openshift-"+tagName)
 	if err != nil {
 		return false, err
 	}
diff --git a/pkg/controller/vsphere/session/session.go b/pkg/controller/vsphere/session/session.go
index 8a590b6292..e6820336d6 100644
--- a/pkg/controller/vsphere/session/session.go
+++ b/pkg/controller/vsphere/session/session.go
@@ -22,6 +22,7 @@ import (
 	"fmt"
 	"net/url"
 	"sync"
+	"time"
 
 	"github.com/vmware/govmomi/vapi/rest"
 	"github.com/vmware/govmomi/vim25/mo"
@@ -40,6 +41,7 @@ var sessionMU sync.Mutex
 
 const (
 	managedObjectTypeTask = "Task"
+	clientTimeout         = 15 * time.Second
 )
 
 // Session is a vSphere session with a configured Finder.
@@ -52,6 +54,18 @@ type Session struct {
 	password string
 }
 
+func newClientWithTimeout(ctx context.Context, u *url.URL, insecure bool, timeout time.Duration) (*govmomi.Client, error) {
+	clientCreateCtx, clientCreateCtxCancel := context.WithTimeout(ctx, timeout)
+	defer clientCreateCtxCancel()
+	// It makes call to vcenter during new client creation, so pass context with timeout there.
+	client, err := govmomi.NewClient(clientCreateCtx, u, insecure)
+	if err != nil {
+		return nil, err
+	}
+	client.Timeout = timeout
+	return client, nil
+}
+
 // GetOrCreate gets a cached session or creates a new one if one does not
 // already exist.
 func GetOrCreate(
@@ -84,11 +98,10 @@ func GetOrCreate(
 	// Set user to nil there for prevent login during client creation.
 	// See https://github.com/vmware/govmomi/blob/master/client.go#L91
 	soapURL.User = nil
-	client, err := govmomi.NewClient(ctx, soapURL, insecure)
+	client, err := newClientWithTimeout(ctx, soapURL, insecure, clientTimeout)
 	if err != nil {
 		return nil, fmt.Errorf("error setting up new vSphere SOAP client: %w", err)
 	}
-
 	// Set up user agent before login for being able to track mapi component in vcenter sessions list
 	client.UserAgent = "machineAPIvSphereProvider"
 	if err := client.Login(ctx, url.UserPassword(username, password)); err != nil {
diff --git a/pkg/controller/vsphere/session/session_test.go b/pkg/controller/vsphere/session/session_test.go
index e48c3da833..56d61f3b97 100644
--- a/pkg/controller/vsphere/session/session_test.go
+++ b/pkg/controller/vsphere/session/session_test.go
@@ -17,9 +17,12 @@ limitations under the License.
 package session
 
 import (
+	. "github.com/onsi/gomega"
+
 	"context"
 	"crypto/tls"
 	"testing"
+	"time"
 
 	"github.com/vmware/govmomi/object"
 	"github.com/vmware/govmomi/simulator"
@@ -244,3 +247,64 @@ func TestGetTask(t *testing.T) {
 		})
 	}
 }
+
+func TestClientTimeout(t *testing.T) {
+
+	t.Run("Global delay which not exceeds the timeout", func(t *testing.T) {
+		g := NewGomegaWithT(t)
+		model, session, server := initSimulator(t)
+		defer model.Remove()
+		defer server.Close()
+
+		model.DelayConfig = simulator.DelayConfig{
+			Delay: int(time.Second.Milliseconds()),
+		}
+
+		simulatorVM := simulator.Map.Any("VirtualMachine").(*simulator.VirtualMachine)
+
+		_, err := session.FindVM(context.TODO(), simulatorVM.Config.Uuid, simulatorVM.Config.Name)
+		g.Expect(err).ShouldNot(HaveOccurred())
+	})
+
+	t.Run("laggy method", func(t *testing.T) {
+		g := NewGomegaWithT(t)
+		model, session, server := initSimulator(t)
+		defer model.Remove()
+		defer server.Close()
+
+		model.DelayConfig = simulator.DelayConfig{
+			MethodDelay: map[string]int{
+				"RetrieveProperties": int(18 * time.Second.Milliseconds()),
+			},
+		}
+		simulatorVM := simulator.Map.Any("VirtualMachine").(*simulator.VirtualMachine)
+
+		_, err := session.findVMByName(context.TODO(), simulatorVM.Config.Name)
+		g.Expect(err.Error()).Should(ContainSubstring("unable to find template by name"))
+		g.Expect(err.Error()).Should(ContainSubstring("context deadline exceeded (Client.Timeout exceeded while awaiting headers)"))
+	})
+
+	t.Run("Globally laggy vcenter", func(t *testing.T) {
+		g := NewGomegaWithT(t)
+
+		model := simulator.VPX()
+		model.Host = 0
+		err := model.Create()
+		g.Expect(err).NotTo(HaveOccurred())
+		model.Service.TLS = new(tls.Config)
+		model.DelayConfig = simulator.DelayConfig{
+			Delay: int(18 * time.Second.Milliseconds()),
+		}
+
+		server := model.Service.NewServer()
+		pass, _ := server.URL.User.Password()
+
+		_, err = GetOrCreate(
+			context.TODO(),
+			server.URL.Host, "",
+			server.URL.User.Username(), pass, true)
+		g.Expect(err).To(HaveOccurred())
+		g.Expect(err.Error()).Should(ContainSubstring("error setting up new vSphere SOAP client"))
+		g.Expect(err.Error()).Should(ContainSubstring("context deadline exceeded"))
+	})
+}