diff --git a/pkg/cloud/identity/identity.go b/pkg/cloud/identity/identity.go
index 29a57a7337..18e77bf293 100644
--- a/pkg/cloud/identity/identity.go
+++ b/pkg/cloud/identity/identity.go
@@ -80,10 +80,11 @@ func GetAssumeRoleCredentials(roleIdentityProvider *AWSRolePrincipalTypeProvider
 }
 
 // NewAWSRolePrincipalTypeProvider will create a new AWSRolePrincipalTypeProvider from an AWSClusterRoleIdentity.
-func NewAWSRolePrincipalTypeProvider(identity *infrav1.AWSClusterRoleIdentity, sourceProvider AWSPrincipalTypeProvider, log logger.Wrapper) *AWSRolePrincipalTypeProvider {
+func NewAWSRolePrincipalTypeProvider(identity *infrav1.AWSClusterRoleIdentity, sourceProvider AWSPrincipalTypeProvider, region string, log logger.Wrapper) *AWSRolePrincipalTypeProvider {
 	return &AWSRolePrincipalTypeProvider{
 		credentials:    nil,
 		stsClient:      nil,
+		region:         region,
 		Principal:      identity,
 		sourceProvider: sourceProvider,
 		log:            log.WithName("AWSRolePrincipalTypeProvider"),
@@ -130,6 +131,7 @@ func (p *AWSStaticPrincipalTypeProvider) IsExpired() bool {
 type AWSRolePrincipalTypeProvider struct {
 	Principal      *infrav1.AWSClusterRoleIdentity
 	credentials    *credentials.Credentials
+	region         string
 	sourceProvider AWSPrincipalTypeProvider
 	log            logger.Wrapper
 	stsClient      stsiface.STSAPI
@@ -154,7 +156,7 @@ func (p *AWSRolePrincipalTypeProvider) Name() string {
 // Retrieve returns the credential values for the AWSRolePrincipalTypeProvider.
 func (p *AWSRolePrincipalTypeProvider) Retrieve() (credentials.Value, error) {
 	if p.credentials == nil || p.IsExpired() {
-		awsConfig := aws.NewConfig()
+		awsConfig := aws.NewConfig().WithRegion(p.region)
 		if p.sourceProvider != nil {
 			sourceCreds, err := p.sourceProvider.Retrieve()
 			if err != nil {
diff --git a/pkg/cloud/identity/identity_test.go b/pkg/cloud/identity/identity_test.go
index 8c204be9f4..9f4a995ab8 100644
--- a/pkg/cloud/identity/identity_test.go
+++ b/pkg/cloud/identity/identity_test.go
@@ -61,6 +61,7 @@ func TestAWSStaticPrincipalTypeProvider(t *testing.T) {
 	roleProvider := &AWSRolePrincipalTypeProvider{
 		credentials:    nil,
 		Principal:      roleIdentity,
+		region:         "us-west-2",
 		sourceProvider: staticProvider,
 		stsClient:      stsMock,
 	}
@@ -78,6 +79,7 @@ func TestAWSStaticPrincipalTypeProvider(t *testing.T) {
 	roleProvider2 := &AWSRolePrincipalTypeProvider{
 		credentials:    nil,
 		Principal:      roleIdentity2,
+		region:         "us-west-2",
 		sourceProvider: roleProvider,
 		stsClient:      stsMock,
 	}
diff --git a/pkg/cloud/scope/session.go b/pkg/cloud/scope/session.go
index 95f5e68662..546e11089b 100644
--- a/pkg/cloud/scope/session.go
+++ b/pkg/cloud/scope/session.go
@@ -120,7 +120,7 @@ func sessionForClusterWithRegion(k8sClient client.Client, clusterScoper cloud.Se
 		return endpoints.DefaultResolver().EndpointFor(service, region, optFns...)
 	}
 
-	providers, err := getProvidersForCluster(context.Background(), k8sClient, clusterScoper, log)
+	providers, err := getProvidersForCluster(context.Background(), k8sClient, clusterScoper, region, log)
 	if err != nil {
 		// could not get providers and retrieve the credentials
 		conditions.MarkFalse(clusterScoper.InfraCluster(), infrav1.PrincipalCredentialRetrievedCondition, infrav1.PrincipalCredentialRetrievalFailedReason, clusterv1.ConditionSeverityError, err.Error())
@@ -256,6 +256,7 @@ func buildProvidersForRef(
 	k8sClient client.Client,
 	clusterScoper cloud.SessionMetadata,
 	ref *infrav1.AWSIdentityReference,
+	region string,
 	log logger.Wrapper) ([]identity.AWSPrincipalTypeProvider, error) {
 	if ref == nil {
 		log.Trace("AWSCluster does not have a IdentityRef specified")
@@ -299,7 +300,7 @@ func buildProvidersForRef(
 		setPrincipalUsageAllowedCondition(clusterScoper)
 
 		if roleIdentity.Spec.SourceIdentityRef != nil {
-			providers, err = buildProvidersForRef(ctx, providers, k8sClient, clusterScoper, roleIdentity.Spec.SourceIdentityRef, log)
+			providers, err = buildProvidersForRef(ctx, providers, k8sClient, clusterScoper, roleIdentity.Spec.SourceIdentityRef, region, log)
 			if err != nil {
 				return providers, err
 			}
@@ -313,7 +314,7 @@ func buildProvidersForRef(
 			}
 		}
 
-		provider = identity.NewAWSRolePrincipalTypeProvider(roleIdentity, sourceProvider, log)
+		provider = identity.NewAWSRolePrincipalTypeProvider(roleIdentity, sourceProvider, region, log)
 		providers = append(providers, provider)
 	default:
 		return providers, errors.Errorf("No such provider known: '%s'", ref.Kind)
@@ -404,9 +405,9 @@ func buildAWSClusterControllerIdentity(ctx context.Context, identityObjectKey cl
 	return nil
 }
 
-func getProvidersForCluster(ctx context.Context, k8sClient client.Client, clusterScoper cloud.SessionMetadata, log logger.Wrapper) ([]identity.AWSPrincipalTypeProvider, error) {
+func getProvidersForCluster(ctx context.Context, k8sClient client.Client, clusterScoper cloud.SessionMetadata, region string, log logger.Wrapper) ([]identity.AWSPrincipalTypeProvider, error) {
 	providers := make([]identity.AWSPrincipalTypeProvider, 0)
-	providers, err := buildProvidersForRef(ctx, providers, k8sClient, clusterScoper, clusterScoper.IdentityRef(), log)
+	providers, err := buildProvidersForRef(ctx, providers, k8sClient, clusterScoper, clusterScoper.IdentityRef(), region, log)
 	if err != nil {
 		return nil, err
 	}
diff --git a/pkg/cloud/scope/session_test.go b/pkg/cloud/scope/session_test.go
index 13bffa1a9e..9620d23df1 100644
--- a/pkg/cloud/scope/session_test.go
+++ b/pkg/cloud/scope/session_test.go
@@ -228,7 +228,7 @@ func TestPrincipalParsing(t *testing.T) {
 				Namespace: "default",
 			},
 		},
-		AWSCluster: &infrav1.AWSCluster{},
+		AWSCluster: &infrav1.AWSCluster{Spec: infrav1.AWSClusterSpec{Region: "us-west-2"}},
 	},
 	)
 
@@ -489,7 +489,7 @@ func TestPrincipalParsing(t *testing.T) {
 			k8sClient := fake.NewClientBuilder().WithScheme(scheme).Build()
 			tc.setup(t, k8sClient)
 			clusterScope.AWSCluster = &tc.awsCluster
-			providers, err := getProvidersForCluster(context.Background(), k8sClient, clusterScope, logger.NewLogger(klog.Background()))
+			providers, err := getProvidersForCluster(context.Background(), k8sClient, clusterScope, clusterScope.Region(), logger.NewLogger(klog.Background()))
 			if tc.expectError {
 				if err == nil {
 					t.Fatal("Expected an error but didn't get one")