diff --git a/.github/workflows/e2e-matrix.yaml b/.github/workflows/e2e-matrix.yaml
index a5c633fae5f0..a82e5cfa2b2f 100644
--- a/.github/workflows/e2e-matrix.yaml
+++ b/.github/workflows/e2e-matrix.yaml
@@ -49,7 +49,7 @@ jobs:
     strategy:
       fail-fast: false
       matrix:
-        suite: [Beta/Integration, Beta/Drift, Beta/Consolidation, Alpha/Integration, Alpha/Machine, Alpha/Consolidation, Alpha/Utilization, Alpha/Interruption, Alpha/Drift, Alpha/Expiration, Alpha/Chaos, Alpha/IPv6]
+        suite: [Beta/Integration, Beta/Drift, Beta/Consolidation, Beta/NodeClaim, Alpha/Integration, Alpha/Machine, Alpha/Consolidation, Alpha/Utilization, Alpha/Interruption, Alpha/Drift, Alpha/Expiration, Alpha/Chaos, Alpha/IPv6]
     uses: ./.github/workflows/e2e.yaml
     with:
       suite: ${{ matrix.suite }}
diff --git a/test/suites/beta/nodeclaim/garbage_collection_test.go b/test/suites/beta/nodeclaim/garbage_collection_test.go
new file mode 100644
index 000000000000..703b4edd505b
--- /dev/null
+++ b/test/suites/beta/nodeclaim/garbage_collection_test.go
@@ -0,0 +1,149 @@
+/*
+Licensed under the Apache License, Version 2.0 (the "License");
+you may not use this file except in compliance with the License.
+You may obtain a copy of the License at
+
+    http://www.apache.org/licenses/LICENSE-2.0
+
+Unless required by applicable law or agreed to in writing, software
+distributed under the License is distributed on an "AS IS" BASIS,
+WITHOUT WARRANTIES OR CONDITIONS OF ANY KIND, either express or implied.
+See the License for the specific language governing permissions and
+limitations under the License.
+*/
+
+package nodeclaim_test
+
+import (
+	"encoding/base64"
+	"fmt"
+	"os"
+	"time"
+
+	"github.com/aws/aws-sdk-go/aws"
+	"github.com/aws/aws-sdk-go/service/ec2"
+	. "github.com/onsi/ginkgo/v2"
+	. "github.com/onsi/gomega"
+	"github.com/samber/lo"
+	v1 "k8s.io/api/core/v1"
+
+	corev1beta1 "github.com/aws/karpenter-core/pkg/apis/v1beta1"
+	coretest "github.com/aws/karpenter-core/pkg/test"
+	"github.com/aws/karpenter/pkg/apis/settings"
+	awserrors "github.com/aws/karpenter/pkg/errors"
+	"github.com/aws/karpenter/pkg/utils"
+	environmentaws "github.com/aws/karpenter/test/pkg/environment/aws"
+)
+
+var _ = Describe("NodeClaimGarbageCollection", func() {
+	var customAMI string
+	var instanceInput *ec2.RunInstancesInput
+
+	BeforeEach(func() {
+		securityGroups := env.GetSecurityGroups(map[string]string{"karpenter.sh/discovery": env.ClusterName})
+		subnets := env.GetSubnetNameAndIds(map[string]string{"karpenter.sh/discovery": env.ClusterName})
+		Expect(securityGroups).ToNot(HaveLen(0))
+		Expect(subnets).ToNot(HaveLen(0))
+
+		customAMI = env.GetCustomAMI("/aws/service/eks/optimized-ami/%s/amazon-linux-2/recommended/image_id", 1)
+		instanceInput = &ec2.RunInstancesInput{
+			InstanceType: aws.String("c5.large"),
+			IamInstanceProfile: &ec2.IamInstanceProfileSpecification{
+				Name: aws.String(settings.FromContext(env.Context).DefaultInstanceProfile),
+			},
+			SecurityGroupIds: lo.Map(securityGroups, func(s environmentaws.SecurityGroup, _ int) *string {
+				return s.GroupIdentifier.GroupId
+			}),
+			SubnetId: aws.String(subnets[0].ID),
+			BlockDeviceMappings: []*ec2.BlockDeviceMapping{
+				{
+					DeviceName: aws.String("/dev/xvda"),
+					Ebs: &ec2.EbsBlockDevice{
+						Encrypted:           aws.Bool(true),
+						DeleteOnTermination: aws.Bool(true),
+						VolumeType:          aws.String(ec2.VolumeTypeGp3),
+						VolumeSize:          aws.Int64(20),
+					},
+				},
+			},
+			ImageId: aws.String(customAMI), // EKS AL2-based AMI
+			TagSpecifications: []*ec2.TagSpecification{
+				{
+					ResourceType: aws.String(ec2.ResourceTypeInstance),
+					Tags: []*ec2.Tag{
+						{
+							Key:   aws.String(fmt.Sprintf("kubernetes.io/cluster/%s", env.ClusterName)),
+							Value: aws.String("owned"),
+						},
+						{
+							Key:   aws.String(corev1beta1.NodePoolLabelKey),
+							Value: aws.String(nodePool.Name),
+						},
+					},
+				},
+			},
+			MinCount: aws.Int64(1),
+			MaxCount: aws.Int64(1),
+		}
+	})
+	It("should succeed to garbage collect an Instance that was launched by a NodeClaim but has no Instance mapping", func() {
+		// Update the userData for the instance input with the correct NodePool
+		rawContent, err := os.ReadFile("testdata/al2_userdata_input.sh")
+		Expect(err).ToNot(HaveOccurred())
+		instanceInput.UserData = lo.ToPtr(base64.StdEncoding.EncodeToString([]byte(fmt.Sprintf(string(rawContent), env.ClusterName,
+			env.ClusterEndpoint, env.ExpectCABundle(), nodePool.Name))))
+
+		// Create an instance manually to mock Karpenter launching an instance
+		out := env.ExpectRunInstances(instanceInput)
+		Expect(out.Instances).To(HaveLen(1))
+
+		// Always ensure that we cleanup the instance
+		DeferCleanup(func() {
+			_, err := env.EC2API.TerminateInstances(&ec2.TerminateInstancesInput{
+				InstanceIds: []*string{out.Instances[0].InstanceId},
+			})
+			if awserrors.IsNotFound(err) {
+				return
+			}
+			Expect(err).ToNot(HaveOccurred())
+		})
+
+		// Wait for the node to register with the cluster
+		node := env.EventuallyExpectCreatedNodeCount("==", 1)[0]
+
+		// Update the tags to add the karpenter.sh/managed-by tag
+		_, err = env.EC2API.CreateTagsWithContext(env.Context, &ec2.CreateTagsInput{
+			Resources: []*string{out.Instances[0].InstanceId},
+			Tags: []*ec2.Tag{
+				{
+					Key:   aws.String(corev1beta1.ManagedByAnnotationKey),
+					Value: aws.String(env.ClusterName),
+				},
+			},
+		})
+		Expect(err).ToNot(HaveOccurred())
+
+		// Eventually expect the node and the instance to be removed (shutting-down)
+		env.EventuallyExpectNotFound(node)
+		Eventually(func(g Gomega) {
+			g.Expect(lo.FromPtr(env.GetInstanceByID(aws.StringValue(out.Instances[0].InstanceId)).State.Name)).To(Equal("shutting-down"))
+		}, time.Second*10).Should(Succeed())
+	})
+	It("should succeed to garbage collect an Instance that was deleted without the cluster's knowledge", func() {
+		// Disable the interruption queue for the garbage collection coretest
+		env.ExpectSettingsOverridden(v1.EnvVar{Name: "INTERRUPTION_QUEUE", Value: ""})
+
+		pod := coretest.Pod()
+		env.ExpectCreated(nodeClass, nodePool, pod)
+		env.EventuallyExpectHealthy(pod)
+		node := env.ExpectCreatedNodeCount("==", 1)[0]
+
+		_, err := env.EC2API.TerminateInstances(&ec2.TerminateInstancesInput{
+			InstanceIds: aws.StringSlice([]string{lo.Must(utils.ParseInstanceID(node.Spec.ProviderID))}),
+		})
+		Expect(err).ToNot(HaveOccurred())
+
+		// The garbage collection mechanism should eventually delete this NodeClaim and Node
+		env.EventuallyExpectNotFound(node)
+	})
+})
diff --git a/test/suites/beta/nodeclaim/nodeclaim_test.go b/test/suites/beta/nodeclaim/nodeclaim_test.go
new file mode 100644
index 000000000000..d9511f4c30a6
--- /dev/null
+++ b/test/suites/beta/nodeclaim/nodeclaim_test.go
@@ -0,0 +1,354 @@
+/*
+Licensed under the Apache License, Version 2.0 (the "License");
+you may not use this file except in compliance with the License.
+You may obtain a copy of the License at
+
+    http://www.apache.org/licenses/LICENSE-2.0
+
+Unless required by applicable law or agreed to in writing, software
+distributed under the License is distributed on an "AS IS" BASIS,
+WITHOUT WARRANTIES OR CONDITIONS OF ANY KIND, either express or implied.
+See the License for the specific language governing permissions and
+limitations under the License.
+*/
+
+package nodeclaim_test
+
+import (
+	"encoding/base64"
+	"fmt"
+	"os"
+	"time"
+
+	. "github.com/onsi/ginkgo/v2"
+	. "github.com/onsi/gomega"
+	"github.com/samber/lo"
+	v1 "k8s.io/api/core/v1"
+	"k8s.io/apimachinery/pkg/api/resource"
+	metav1 "k8s.io/apimachinery/pkg/apis/meta/v1"
+	"sigs.k8s.io/controller-runtime/pkg/client"
+
+	corev1beta1 "github.com/aws/karpenter-core/pkg/apis/v1beta1"
+	"github.com/aws/karpenter-core/pkg/test"
+	"github.com/aws/karpenter-core/pkg/utils/resources"
+	"github.com/aws/karpenter/pkg/apis/v1beta1"
+)
+
+var _ = Describe("StandaloneNodeClaim", func() {
+	It("should create a standard NodeClaim within the 'c' instance family", func() {
+		nodeClaim := test.NodeClaim(corev1beta1.NodeClaim{
+			Spec: corev1beta1.NodeClaimSpec{
+				Requirements: []v1.NodeSelectorRequirement{
+					{
+						Key:      v1beta1.LabelInstanceCategory,
+						Operator: v1.NodeSelectorOpIn,
+						Values:   []string{"c"},
+					},
+					{
+						Key:      corev1beta1.CapacityTypeLabelKey,
+						Operator: v1.NodeSelectorOpIn,
+						Values:   []string{corev1beta1.CapacityTypeOnDemand},
+					},
+				},
+				NodeClassRef: &corev1beta1.NodeClassReference{
+					Name: nodeClass.Name,
+				},
+			},
+		})
+		env.ExpectCreated(nodeClass, nodeClaim)
+		node := env.EventuallyExpectInitializedNodeCount("==", 1)[0]
+		nodeClaim = env.EventuallyExpectCreatedNodeClaimCount("==", 1)[0]
+		Expect(node.Labels).To(HaveKeyWithValue(v1beta1.LabelInstanceCategory, "c"))
+		env.EventuallyExpectNodeClaimsReady(nodeClaim)
+	})
+	It("should create a standard NodeClaim based on resource requests", func() {
+		nodeClaim := test.NodeClaim(corev1beta1.NodeClaim{
+			Spec: corev1beta1.NodeClaimSpec{
+				Resources: corev1beta1.ResourceRequirements{
+					Requests: v1.ResourceList{
+						v1.ResourceCPU:    resource.MustParse("3"),
+						v1.ResourceMemory: resource.MustParse("64Gi"),
+					},
+				},
+				NodeClassRef: &corev1beta1.NodeClassReference{
+					Name: nodeClass.Name,
+				},
+			},
+		})
+		env.ExpectCreated(nodeClass, nodeClaim)
+		node := env.EventuallyExpectInitializedNodeCount("==", 1)[0]
+		nodeClaim = env.EventuallyExpectCreatedNodeClaimCount("==", 1)[0]
+		Expect(resources.Fits(nodeClaim.Spec.Resources.Requests, node.Status.Allocatable))
+		env.EventuallyExpectNodeClaimsReady(nodeClaim)
+	})
+	It("should create a NodeClaim propagating all the NodeClaim spec details", func() {
+		nodeClaim := test.NodeClaim(corev1beta1.NodeClaim{
+			ObjectMeta: metav1.ObjectMeta{
+				Annotations: map[string]string{
+					"custom-annotation": "custom-value",
+				},
+				Labels: map[string]string{
+					"custom-label": "custom-value",
+				},
+			},
+			Spec: corev1beta1.NodeClaimSpec{
+				Taints: []v1.Taint{
+					{
+						Key:    "custom-taint",
+						Effect: v1.TaintEffectNoSchedule,
+						Value:  "custom-value",
+					},
+					{
+						Key:    "other-custom-taint",
+						Effect: v1.TaintEffectNoExecute,
+						Value:  "other-custom-value",
+					},
+				},
+				Resources: corev1beta1.ResourceRequirements{
+					Requests: v1.ResourceList{
+						v1.ResourceCPU:    resource.MustParse("3"),
+						v1.ResourceMemory: resource.MustParse("16Gi"),
+					},
+				},
+				Kubelet: &corev1beta1.KubeletConfiguration{
+					MaxPods:     lo.ToPtr[int32](110),
+					PodsPerCore: lo.ToPtr[int32](10),
+					SystemReserved: v1.ResourceList{
+						v1.ResourceCPU:              resource.MustParse("200m"),
+						v1.ResourceMemory:           resource.MustParse("200Mi"),
+						v1.ResourceEphemeralStorage: resource.MustParse("1Gi"),
+					},
+					KubeReserved: v1.ResourceList{
+						v1.ResourceCPU:              resource.MustParse("200m"),
+						v1.ResourceMemory:           resource.MustParse("200Mi"),
+						v1.ResourceEphemeralStorage: resource.MustParse("1Gi"),
+					},
+					EvictionHard: map[string]string{
+						"memory.available":   "5%",
+						"nodefs.available":   "5%",
+						"nodefs.inodesFree":  "5%",
+						"imagefs.available":  "5%",
+						"imagefs.inodesFree": "5%",
+						"pid.available":      "3%",
+					},
+					EvictionSoft: map[string]string{
+						"memory.available":   "10%",
+						"nodefs.available":   "10%",
+						"nodefs.inodesFree":  "10%",
+						"imagefs.available":  "10%",
+						"imagefs.inodesFree": "10%",
+						"pid.available":      "6%",
+					},
+					EvictionSoftGracePeriod: map[string]metav1.Duration{
+						"memory.available":   {Duration: time.Minute * 2},
+						"nodefs.available":   {Duration: time.Minute * 2},
+						"nodefs.inodesFree":  {Duration: time.Minute * 2},
+						"imagefs.available":  {Duration: time.Minute * 2},
+						"imagefs.inodesFree": {Duration: time.Minute * 2},
+						"pid.available":      {Duration: time.Minute * 2},
+					},
+					EvictionMaxPodGracePeriod:   lo.ToPtr[int32](120),
+					ImageGCHighThresholdPercent: lo.ToPtr[int32](50),
+					ImageGCLowThresholdPercent:  lo.ToPtr[int32](10),
+				},
+				NodeClassRef: &corev1beta1.NodeClassReference{
+					Name: nodeClass.Name,
+				},
+			},
+		})
+		env.ExpectCreated(nodeClass, nodeClaim)
+		node := env.EventuallyExpectInitializedNodeCount("==", 1)[0]
+		Expect(node.Annotations).To(HaveKeyWithValue("custom-annotation", "custom-value"))
+		Expect(node.Labels).To(HaveKeyWithValue("custom-label", "custom-value"))
+		Expect(node.Spec.Taints).To(ContainElements(
+			v1.Taint{
+				Key:    "custom-taint",
+				Effect: v1.TaintEffectNoSchedule,
+				Value:  "custom-value",
+			},
+			v1.Taint{
+				Key:    "other-custom-taint",
+				Effect: v1.TaintEffectNoExecute,
+				Value:  "other-custom-value",
+			},
+		))
+		Expect(node.OwnerReferences).To(ContainElement(
+			metav1.OwnerReference{
+				APIVersion:         corev1beta1.SchemeGroupVersion.String(),
+				Kind:               "NodeClaim",
+				Name:               nodeClaim.Name,
+				UID:                nodeClaim.UID,
+				BlockOwnerDeletion: lo.ToPtr(true),
+			},
+		))
+		env.EventuallyExpectCreatedNodeClaimCount("==", 1)
+		env.EventuallyExpectNodeClaimsReady(nodeClaim)
+	})
+	It("should remove the cloudProvider NodeClaim when the cluster NodeClaim is deleted", func() {
+		nodeClaim := test.NodeClaim(corev1beta1.NodeClaim{
+			Spec: corev1beta1.NodeClaimSpec{
+				Requirements: []v1.NodeSelectorRequirement{
+					{
+						Key:      v1beta1.LabelInstanceCategory,
+						Operator: v1.NodeSelectorOpIn,
+						Values:   []string{"c"},
+					},
+					{
+						Key:      corev1beta1.CapacityTypeLabelKey,
+						Operator: v1.NodeSelectorOpIn,
+						Values:   []string{corev1beta1.CapacityTypeOnDemand},
+					},
+				},
+				NodeClassRef: &corev1beta1.NodeClassReference{
+					Name: nodeClass.Name,
+				},
+			},
+		})
+		env.ExpectCreated(nodeClass, nodeClaim)
+		node := env.EventuallyExpectInitializedNodeCount("==", 1)[0]
+		nodeClaim = env.EventuallyExpectCreatedNodeClaimCount("==", 1)[0]
+
+		instanceID := env.ExpectParsedProviderID(node.Spec.ProviderID)
+		env.GetInstance(node.Name)
+
+		// Node is deleted and now should be not found
+		env.ExpectDeleted(nodeClaim)
+		env.EventuallyExpectNotFound(nodeClaim, node)
+
+		Eventually(func(g Gomega) {
+			g.Expect(lo.FromPtr(env.GetInstanceByID(instanceID).State.Name)).To(Equal("shutting-down"))
+		}, time.Second*10).Should(Succeed())
+	})
+	It("should delete a NodeClaim from the node termination finalizer", func() {
+		nodeClaim := test.NodeClaim(corev1beta1.NodeClaim{
+			Spec: corev1beta1.NodeClaimSpec{
+				Requirements: []v1.NodeSelectorRequirement{
+					{
+						Key:      v1beta1.LabelInstanceCategory,
+						Operator: v1.NodeSelectorOpIn,
+						Values:   []string{"c"},
+					},
+					{
+						Key:      corev1beta1.CapacityTypeLabelKey,
+						Operator: v1.NodeSelectorOpIn,
+						Values:   []string{corev1beta1.CapacityTypeOnDemand},
+					},
+				},
+				NodeClassRef: &corev1beta1.NodeClassReference{
+					Name: nodeClass.Name,
+				},
+			},
+		})
+		env.ExpectCreated(nodeClass, nodeClaim)
+		node := env.EventuallyExpectInitializedNodeCount("==", 1)[0]
+		nodeClaim = env.EventuallyExpectCreatedNodeClaimCount("==", 1)[0]
+
+		instanceID := env.ExpectParsedProviderID(node.Spec.ProviderID)
+		env.GetInstance(node.Name)
+
+		// Delete the node and expect both the node and nodeClaim to be gone as well as the instance to be shutting-down
+		env.ExpectDeleted(node)
+		env.EventuallyExpectNotFound(nodeClaim, node)
+
+		Eventually(func(g Gomega) {
+			g.Expect(lo.FromPtr(env.GetInstanceByID(instanceID).State.Name)).To(Equal("shutting-down"))
+		}, time.Second*10).Should(Succeed())
+	})
+	It("should create a NodeClaim with custom labels passed through the userData", func() {
+		customAMI := env.GetCustomAMI("/aws/service/eks/optimized-ami/%s/amazon-linux-2/recommended/image_id", 1)
+		// Update the userData for the instance input with the correct NodePool
+		rawContent, err := os.ReadFile("testdata/al2_userdata_custom_labels_input.sh")
+		Expect(err).ToNot(HaveOccurred())
+
+		// Create userData that adds custom labels through the --kubelet-extra-args
+		nodeClass.Spec.AMIFamily = &v1beta1.AMIFamilyCustom
+		nodeClass.Spec.AMISelectorTerms = []v1beta1.AMISelectorTerm{{ID: customAMI}}
+		nodeClass.Spec.UserData = lo.ToPtr(base64.StdEncoding.EncodeToString([]byte(fmt.Sprintf(string(rawContent), env.ClusterName,
+			env.ClusterEndpoint, env.ExpectCABundle()))))
+
+		nodeClaim := test.NodeClaim(corev1beta1.NodeClaim{
+			Spec: corev1beta1.NodeClaimSpec{
+				Requirements: []v1.NodeSelectorRequirement{
+					{
+						Key:      v1beta1.LabelInstanceCategory,
+						Operator: v1.NodeSelectorOpIn,
+						Values:   []string{"c"},
+					},
+					{
+						Key:      v1.LabelArchStable,
+						Operator: v1.NodeSelectorOpIn,
+						Values:   []string{"amd64"},
+					},
+					{
+						Key:      corev1beta1.CapacityTypeLabelKey,
+						Operator: v1.NodeSelectorOpIn,
+						Values:   []string{corev1beta1.CapacityTypeOnDemand},
+					},
+				},
+				NodeClassRef: &corev1beta1.NodeClassReference{
+					Name: nodeClass.Name,
+				},
+			},
+		})
+		env.ExpectCreated(nodeClass, nodeClaim)
+		node := env.EventuallyExpectInitializedNodeCount("==", 1)[0]
+		Expect(node.Labels).To(HaveKeyWithValue("custom-label", "custom-value"))
+		Expect(node.Labels).To(HaveKeyWithValue("custom-label2", "custom-value2"))
+
+		env.EventuallyExpectCreatedNodeClaimCount("==", 1)
+		env.EventuallyExpectNodeClaimsReady(nodeClaim)
+	})
+	It("should delete a NodeClaim after the registration timeout when the node doesn't register", func() {
+		customAMI := env.GetCustomAMI("/aws/service/eks/optimized-ami/%s/amazon-linux-2/recommended/image_id", 1)
+		// Update the userData for the instance input with the correct NodePool
+		rawContent, err := os.ReadFile("testdata/al2_userdata_input.sh")
+		Expect(err).ToNot(HaveOccurred())
+
+		// Create userData that adds custom labels through the --kubelet-extra-args
+		nodeClass.Spec.AMIFamily = &v1beta1.AMIFamilyCustom
+		nodeClass.Spec.AMISelectorTerms = []v1beta1.AMISelectorTerm{{ID: customAMI}}
+
+		// Giving bad clusterName and clusterEndpoint to the userData
+		nodeClass.Spec.UserData = lo.ToPtr(base64.StdEncoding.EncodeToString([]byte(fmt.Sprintf(string(rawContent), "badName", "badEndpoint", env.ExpectCABundle()))))
+
+		nodeClaim := test.NodeClaim(corev1beta1.NodeClaim{
+			Spec: corev1beta1.NodeClaimSpec{
+				Requirements: []v1.NodeSelectorRequirement{
+					{
+						Key:      v1beta1.LabelInstanceCategory,
+						Operator: v1.NodeSelectorOpIn,
+						Values:   []string{"c"},
+					},
+					{
+						Key:      v1.LabelArchStable,
+						Operator: v1.NodeSelectorOpIn,
+						Values:   []string{"amd64"},
+					},
+					{
+						Key:      corev1beta1.CapacityTypeLabelKey,
+						Operator: v1.NodeSelectorOpIn,
+						Values:   []string{corev1beta1.CapacityTypeOnDemand},
+					},
+				},
+				NodeClassRef: &corev1beta1.NodeClassReference{
+					Name: nodeClass.Name,
+				},
+			},
+		})
+
+		env.ExpectCreated(nodeClass, nodeClaim)
+		nodeClaim = env.EventuallyExpectCreatedNodeClaimCount("==", 1)[0]
+
+		// Expect that the nodeClaim eventually launches and has false Registration/Initialization
+		Eventually(func(g Gomega) {
+			temp := &corev1beta1.NodeClaim{}
+			g.Expect(env.Client.Get(env.Context, client.ObjectKeyFromObject(nodeClaim), temp)).To(Succeed())
+			g.Expect(temp.StatusConditions().GetCondition(corev1beta1.Launched).IsTrue()).To(BeTrue())
+			g.Expect(temp.StatusConditions().GetCondition(corev1beta1.Registered).IsFalse()).To(BeTrue())
+			g.Expect(temp.StatusConditions().GetCondition(corev1beta1.Initialized).IsFalse()).To(BeTrue())
+		}).Should(Succeed())
+
+		// Expect that the nodeClaim is eventually de-provisioned due to the registration timeout
+		env.EventuallyExpectNotFoundAssertion(nodeClaim).WithTimeout(time.Minute * 20).Should(Succeed())
+	})
+})
diff --git a/test/suites/beta/nodeclaim/suite_test.go b/test/suites/beta/nodeclaim/suite_test.go
new file mode 100644
index 000000000000..2d8b16c45dc5
--- /dev/null
+++ b/test/suites/beta/nodeclaim/suite_test.go
@@ -0,0 +1,77 @@
+/*
+Licensed under the Apache License, Version 2.0 (the "License");
+you may not use this file except in compliance with the License.
+You may obtain a copy of the License at
+
+    http://www.apache.org/licenses/LICENSE-2.0
+
+Unless required by applicable law or agreed to in writing, software
+distributed under the License is distributed on an "AS IS" BASIS,
+WITHOUT WARRANTIES OR CONDITIONS OF ANY KIND, either express or implied.
+See the License for the specific language governing permissions and
+limitations under the License.
+*/
+
+package nodeclaim_test
+
+import (
+	"fmt"
+	"testing"
+
+	. "github.com/onsi/ginkgo/v2"
+	. "github.com/onsi/gomega"
+
+	corev1beta1 "github.com/aws/karpenter-core/pkg/apis/v1beta1"
+	coretest "github.com/aws/karpenter-core/pkg/test"
+	"github.com/aws/karpenter/pkg/apis/v1beta1"
+	"github.com/aws/karpenter/pkg/test"
+	"github.com/aws/karpenter/test/pkg/environment/aws"
+)
+
+var env *aws.Environment
+var nodeClass *v1beta1.EC2NodeClass
+var nodePool *corev1beta1.NodePool
+
+func TestNodeClaim(t *testing.T) {
+	RegisterFailHandler(Fail)
+	BeforeSuite(func() {
+		env = aws.NewEnvironment(t)
+	})
+	AfterSuite(func() {
+		env.Stop()
+	})
+	RunSpecs(t, "Beta/NodeClaim")
+}
+
+var _ = BeforeEach(func() {
+	env.BeforeEach()
+	nodeClass = test.EC2NodeClass(v1beta1.EC2NodeClass{
+		Spec: v1beta1.EC2NodeClassSpec{
+			AMIFamily: &v1beta1.AMIFamilyAL2,
+			SecurityGroupSelectorTerms: []v1beta1.SecurityGroupSelectorTerm{
+				{
+					Tags: map[string]string{"karpenter.sh/discovery": env.ClusterName},
+				},
+			},
+			SubnetSelectorTerms: []v1beta1.SubnetSelectorTerm{
+				{
+					Tags: map[string]string{"karpenter.sh/discovery": env.ClusterName},
+				},
+			},
+			Role: fmt.Sprintf("KarpenterNodeRole-%s", env.ClusterName),
+		},
+	})
+	nodePool = coretest.NodePool(corev1beta1.NodePool{
+		Spec: corev1beta1.NodePoolSpec{
+			Template: corev1beta1.NodeClaimTemplate{
+				Spec: corev1beta1.NodeClaimSpec{
+					NodeClassRef: &corev1beta1.NodeClassReference{
+						Name: nodeClass.Name,
+					},
+				},
+			},
+		},
+	})
+})
+var _ = AfterEach(func() { env.Cleanup() })
+var _ = AfterEach(func() { env.AfterEach() })
diff --git a/test/suites/beta/nodeclaim/testdata/al2_userdata_custom_labels_input.sh b/test/suites/beta/nodeclaim/testdata/al2_userdata_custom_labels_input.sh
new file mode 100644
index 000000000000..fc1d8a3853f8
--- /dev/null
+++ b/test/suites/beta/nodeclaim/testdata/al2_userdata_custom_labels_input.sh
@@ -0,0 +1,14 @@
+MIME-Version: 1.0
+Content-Type: multipart/mixed; boundary="BOUNDARY"
+
+--BOUNDARY
+Content-Type: text/x-shellscript; charset="us-ascii"
+
+#!/bin/bash
+exec > >(tee /var/log/user-data.log|logger -t user-data -s 2>/dev/console) 2>&1
+/etc/eks/bootstrap.sh '%s' --apiserver-endpoint '%s' --b64-cluster-ca '%s' \
+--use-max-pods false \
+--container-runtime containerd \
+--kubelet-extra-args '--node-labels=testing/cluster=unspecified,custom-label=custom-value,custom-label2=custom-value2'
+
+--BOUNDARY--
diff --git a/test/suites/beta/nodeclaim/testdata/al2_userdata_input.sh b/test/suites/beta/nodeclaim/testdata/al2_userdata_input.sh
new file mode 100644
index 000000000000..9a40bf4562a4
--- /dev/null
+++ b/test/suites/beta/nodeclaim/testdata/al2_userdata_input.sh
@@ -0,0 +1,14 @@
+MIME-Version: 1.0
+Content-Type: multipart/mixed; boundary="BOUNDARY"
+
+--BOUNDARY
+Content-Type: text/x-shellscript; charset="us-ascii"
+
+#!/bin/bash
+exec > >(tee /var/log/user-data.log|logger -t user-data -s 2>/dev/console) 2>&1
+/etc/eks/bootstrap.sh '%s' --apiserver-endpoint '%s' --b64-cluster-ca '%s' \
+--use-max-pods false \
+--container-runtime containerd \
+--kubelet-extra-args '--node-labels=karpenter.sh/nodepool=%s,testing/cluster=unspecified'
+
+--BOUNDARY--