diff --git a/pkg/cache/cache.go b/pkg/cache/cache.go
index 796fa1ff9b20..2b7a926db59b 100644
--- a/pkg/cache/cache.go
+++ b/pkg/cache/cache.go
@@ -32,9 +32,9 @@ const (
 	// InstanceProfileTTL is the time before we refresh checking instance profile existence at IAM
 	InstanceProfileTTL = 15 * time.Minute
 	// AvailableIPAddressTTL is time to drop AvailableIPAddress data if it is not updated within the TTL
-	AvailableIPAddressTTL = 2 * time.Minute
+	AvailableIPAddressTTL = 5 * time.Minute
 	// AvailableIPAddressTTL is time to drop AssociatePublicIPAddressTTL data if it is not updated within the TTL
-	AssociatePublicIPAddressTTL = 2 * time.Minute
+	AssociatePublicIPAddressTTL = 5 * time.Minute
 )
 
 const (
diff --git a/pkg/providers/launchtemplate/launchtemplate.go b/pkg/providers/launchtemplate/launchtemplate.go
index b90949530f6f..95f2d068667c 100644
--- a/pkg/providers/launchtemplate/launchtemplate.go
+++ b/pkg/providers/launchtemplate/launchtemplate.go
@@ -188,15 +188,13 @@ func (p *DefaultProvider) createAMIOptions(ctx context.Context, nodeClass *v1bet
 	}
 	if nodeClass.Spec.AssociatePublicIPAddress != nil {
 		options.AssociatePublicIPAddress = nodeClass.Spec.AssociatePublicIPAddress
-	} else if ok, err := p.subnetProvider.CheckAnyPublicIPAssociations(ctx, nodeClass); err != nil {
-		return nil, err
-	} else if !ok {
+	} else {
 		// when `AssociatePublicIPAddress` is not specified in the `EC2NodeClass` spec,
 		// If all referenced subnets do not assign public IPv4 addresses to EC2 instances therein, we explicitly set
 		// AssociatePublicIPAddress to 'false' in the Launch Template, generated based on this configuration struct.
 		// This is done to help comply with AWS account policies that require explicitly setting of that field to 'false'.
 		// https://github.com/aws/karpenter-provider-aws/issues/3815
-		options.AssociatePublicIPAddress = aws.Bool(false)
+		options.AssociatePublicIPAddress = p.subnetProvider.AssociatePublicIPAddressValue(nodeClass)
 	}
 	return options, nil
 }
diff --git a/pkg/providers/subnet/subnet.go b/pkg/providers/subnet/subnet.go
index d67babebb1d9..2b07944037ef 100644
--- a/pkg/providers/subnet/subnet.go
+++ b/pkg/providers/subnet/subnet.go
@@ -37,7 +37,7 @@ import (
 type Provider interface {
 	LivenessProbe(*http.Request) error
 	List(context.Context, *v1beta1.EC2NodeClass) ([]*ec2.Subnet, error)
-	CheckAnyPublicIPAssociations(context.Context, *v1beta1.EC2NodeClass) (bool, error)
+	AssociatePublicIPAddressValue( *v1beta1.EC2NodeClass) (*bool)
 	ZonalSubnetsForLaunch(context.Context, *v1beta1.EC2NodeClass, []*cloudprovider.InstanceType, string) (map[string]*Subnet, error)
 	UpdateInflightIPs(*ec2.CreateFleetInput, *ec2.CreateFleetOutput, []*cloudprovider.InstanceType, []*Subnet, string)
 }
@@ -116,14 +116,17 @@ func (p *DefaultProvider) List(ctx context.Context, nodeClass *v1beta1.EC2NodeCl
 	return lo.Values(subnets), nil
 }
 
-// CheckAnyPublicIPAssociations returns a bool indicating whether all referenced subnets assign public IPv4 addresses to EC2 instances created therein
-func (p *DefaultProvider) CheckAnyPublicIPAssociations(ctx context.Context, nodeClass *v1beta1.EC2NodeClass) (bool, error) {
+// associatePublicIPAddressValue validates whether we know the association value for all subnets AND
+// that all subnets don't have associatePublicIP set. If both of these are true, we set the value explicitly to false
+// For more detail see: https://github.com/aws/karpenter-provider-aws/pull/3814
+func (p *DefaultProvider) AssociatePublicIPAddressValue(nodeClass *v1beta1.EC2NodeClass) *bool {
 	for _, subnet := range nodeClass.Status.Subnets {
-		if subnetAssociatePublicIP, ok := p.associatePublicIPAddressCache.Get(subnet.ID); ok && subnetAssociatePublicIP.(bool) {
-			return true, nil
+		subnetAssociatePublicIP, ok := p.associatePublicIPAddressCache.Get(subnet.ID)
+		if !ok || subnetAssociatePublicIP.(bool) {
+			return nil
 		}
 	}
-	return false, nil
+	return lo.ToPtr(false)
 }
 
 // ZonalSubnetsForLaunch returns a mapping of zone to the subnet with the most available IP addresses and deducts the passed ips from the available count
diff --git a/pkg/providers/subnet/suite_test.go b/pkg/providers/subnet/suite_test.go
index 4d343bce09b1..f7007fd4e260 100644
--- a/pkg/providers/subnet/suite_test.go
+++ b/pkg/providers/subnet/suite_test.go
@@ -219,19 +219,20 @@ var _ = Describe("SubnetProvider", func() {
 			}, subnets)
 		})
 	})
-	Context("CheckAnyPublicIPAssociations", func() {
-		It("should note that no subnets assign a public IPv4 address to EC2 instances on launch", func() {
+	Context("AssociatePublicIPAddress", func() {
+		It("should be false when no subnets assign a public IPv4 address to EC2 instances on launch", func() {
 			nodeClass.Spec.SubnetSelectorTerms = []v1beta1.SubnetSelectorTerm{
 				{
 					ID:   "subnet-test1",
 					Tags: map[string]string{"foo": "bar"},
 				},
 			}
-			onlyPrivate, err := awsEnv.SubnetProvider.CheckAnyPublicIPAssociations(ctx, nodeClass)
+			_, err := awsEnv.SubnetProvider.List(ctx, nodeClass)
 			Expect(err).To(BeNil())
-			Expect(onlyPrivate).To(BeFalse())
+			associatePublicIP := awsEnv.SubnetProvider.AssociatePublicIPAddressValue(nodeClass)
+			Expect(lo.FromPtr(associatePublicIP)).To(BeFalse())
 		})
-		It("should note that at least one subnet assigns a public IPv4 address to EC2instances on launch", func() {
+		It("should be nil when at least one subnet assigns a public IPv4 address to EC2instances on launch", func() {
 			nodeClass.Spec.SubnetSelectorTerms = []v1beta1.SubnetSelectorTerm{
 				{
 					ID: "subnet-test2",
@@ -245,9 +246,24 @@ var _ = Describe("SubnetProvider", func() {
 			}
 			_, err := awsEnv.SubnetProvider.List(ctx, nodeClass)
 			Expect(err).To(BeNil())
-			onlyPrivate, err := awsEnv.SubnetProvider.CheckAnyPublicIPAssociations(ctx, nodeClass)
-			Expect(err).To(BeNil())
-			Expect(onlyPrivate).To(BeTrue())
+			associatePublicIP := awsEnv.SubnetProvider.AssociatePublicIPAddressValue(nodeClass)
+			Expect(associatePublicIP).To(BeNil())
+		})
+		It("should be nil when no subnet data is present in the provider cache", func() {
+			nodeClass.Spec.SubnetSelectorTerms = []v1beta1.SubnetSelectorTerm{
+				{
+					ID: "subnet-test2",
+				},
+			}
+			nodeClass.Status.Subnets = []v1beta1.Subnet{
+				{
+					ID:   "subnet-test2",
+					Zone: "test-zone-1b",
+				},
+			}
+			awsEnv.SubnetCache.Flush() // remove any subnet data that might be in the subnetCache
+			associatePublicIP := awsEnv.SubnetProvider.AssociatePublicIPAddressValue(nodeClass)
+			Expect(associatePublicIP).To(BeNil())
 		})
 	})
 	Context("Provider Cache", func() {