diff --git a/Makefile b/Makefile
index 749b3f2524..10836ae3bc 100644
--- a/Makefile
+++ b/Makefile
@@ -408,6 +408,7 @@ generate-e2e-templates-main: $(KUSTOMIZE) ## Generate test templates for the mai
 	"$(KUSTOMIZE)" --load-restrictor LoadRestrictionsNone build "$(E2E_SUPERVISOR_TEMPLATE_DIR)/main/clusterclass-runtimesdk" > "$(E2E_SUPERVISOR_TEMPLATE_DIR)/main/clusterclass-quick-start-supervisor-runtimesdk.yaml"
 	cp "$(RELEASE_DIR)/main/cluster-template-topology-supervisor.yaml" "$(E2E_SUPERVISOR_TEMPLATE_DIR)/main/topology/cluster-template-topology-supervisor.yaml"
 	"$(KUSTOMIZE)" --load-restrictor LoadRestrictionsNone build "$(E2E_SUPERVISOR_TEMPLATE_DIR)/main/topology" > "$(E2E_SUPERVISOR_TEMPLATE_DIR)/main/cluster-template-topology-supervisor.yaml"
+	"$(KUSTOMIZE)" --load-restrictor LoadRestrictionsNone build "$(E2E_SUPERVISOR_TEMPLATE_DIR)/main/topology-autoscaler" > "$(E2E_SUPERVISOR_TEMPLATE_DIR)/main/cluster-template-topology-autoscaler-supervisor.yaml"
 	"$(KUSTOMIZE)" --load-restrictor LoadRestrictionsNone build "$(E2E_SUPERVISOR_TEMPLATE_DIR)/main/topology-runtimesdk" > "$(E2E_SUPERVISOR_TEMPLATE_DIR)/main/cluster-template-topology-runtimesdk-supervisor.yaml"
 	"$(KUSTOMIZE)" --load-restrictor LoadRestrictionsNone build "$(E2E_SUPERVISOR_TEMPLATE_DIR)/main/conformance" > "$(E2E_SUPERVISOR_TEMPLATE_DIR)/main/cluster-template-conformance-supervisor.yaml"
 	"$(KUSTOMIZE)" --load-restrictor LoadRestrictionsNone build "$(E2E_SUPERVISOR_TEMPLATE_DIR)/main/fast-rollout" > "$(E2E_SUPERVISOR_TEMPLATE_DIR)/main/cluster-template-fast-rollout-supervisor.yaml"
diff --git a/test/e2e/config/vsphere.yaml b/test/e2e/config/vsphere.yaml
index b8b88ee97f..5b6b8fc6d1 100644
--- a/test/e2e/config/vsphere.yaml
+++ b/test/e2e/config/vsphere.yaml
@@ -156,6 +156,7 @@ providers:
           - sourcePath: "../../../test/e2e/data/infrastructure-vsphere-govmomi/main/clusterclass-quick-start.yaml"
           - sourcePath: "../../../test/e2e/data/infrastructure-vsphere-govmomi/main/clusterclass-quick-start-runtimesdk.yaml"
           - sourcePath: "../../../test/e2e/data/infrastructure-vsphere-supervisor/main/cluster-template-topology-supervisor.yaml"
+          - sourcePath: "../../../test/e2e/data/infrastructure-vsphere-supervisor/main/cluster-template-topology-autoscaler-supervisor.yaml"
           - sourcePath: "../../../test/e2e/data/infrastructure-vsphere-supervisor/main/cluster-template-topology-runtimesdk-supervisor.yaml"
           - sourcePath: "../../../test/e2e/data/infrastructure-vsphere-supervisor/main/cluster-template-supervisor.yaml"
           - sourcePath: "../../../test/e2e/data/infrastructure-vsphere-supervisor/main/clusterclass-quick-start-supervisor.yaml"
diff --git a/test/e2e/data/autoscaler/autoscaler-to-management-workload.yaml b/test/e2e/data/autoscaler/autoscaler-to-management-workload.yaml
new file mode 100644
index 0000000000..16f1e09c57
--- /dev/null
+++ b/test/e2e/data/autoscaler/autoscaler-to-management-workload.yaml
@@ -0,0 +1,89 @@
+# This yaml deploys the autoscaler on a workload cluster and configures it to match
+# against the corresponding Cluster API cluster which is defined into the management cluster.
+---
+# Specify kubeconfig for management cluster
+apiVersion: v1
+kind: Secret
+metadata:
+  name: kubeconfig-management-cluster
+  namespace: ${CLUSTER_NAMESPACE}
+stringData:
+  kubeconfig: |
+    apiVersion: v1
+    kind: Config
+    clusters:
+    - name: management-cluster
+      cluster:
+        certificate-authority-data: ${MANAGEMENT_CLUSTER_CA}
+        server: ${MANAGEMENT_CLUSTER_ADDRESS}
+    contexts:
+    - name: management-context
+      context:
+        cluster: management-cluster
+        namespace: ${CLUSTER_NAMESPACE}
+        user: cluster-autoscaler-sa
+    current-context: management-context
+    users:
+    - name: cluster-autoscaler-sa
+      user:
+        token: "${MANAGEMENT_CLUSTER_TOKEN}"
+---
+apiVersion: apps/v1
+kind: Deployment
+metadata:
+  name: cluster-autoscaler
+  namespace: ${CLUSTER_NAMESPACE}
+  labels:
+    app: cluster-autoscaler
+spec:
+  selector:
+    matchLabels:
+      app: cluster-autoscaler
+  replicas: 1
+  template:
+    metadata:
+      labels:
+        app: cluster-autoscaler
+    spec:
+      containers:
+        - image: registry.k8s.io/autoscaling/cluster-autoscaler:${AUTOSCALER_VERSION}
+          name: cluster-autoscaler
+          command:
+            - /cluster-autoscaler
+          args:
+            - --cloud-provider=clusterapi
+            # Specify kubeconfig for management cluster
+            - --cloud-config=/management-cluster/kubeconfig
+            # Specify kubeconfig for workload cluster
+            - --kubeconfig=/workload-cluster/value
+            # Limit cluster autoscaler to only match against resources belonging to a single Cluster API cluster
+            - --node-group-auto-discovery=clusterapi:namespace=${CLUSTER_NAMESPACE},clusterName=${CLUSTER_NAME}
+            # Set a short scale down unneeded time, so we don't have to wait too long during e2e testing
+            - --scale-down-unneeded-time=1m
+            #  Set a short scale down delay after add time, so we don't have to wait too long during e2e testing
+            - --scale-down-delay-after-add=1m
+            # Set a short scale down delay after delete time, so we don't have to wait too long during e2e testing
+            - --scale-down-delay-after-delete=1m
+            # Set a short scale down delay after failure time, so we don't have to wait too long during e2e testing
+            - --scale-down-delay-after-failure=1m
+            # Set a max nodes limit as safeguard so that the test does not scale up unbounded.
+            # Note: The E2E test should only go up to 4 (assuming it starts with a min node group size of 2).
+            # Using 6 for additional some buffer and to allow different starting min node group sizes.
+            - --max-nodes-total=6
+          volumeMounts:
+            - name: kubeconfig-management-cluster
+              mountPath: /management-cluster
+              readOnly: true
+            - name: kubeconfig-workload-cluster
+              mountPath: /workload-cluster
+              readOnly: true
+      terminationGracePeriodSeconds: 10
+      volumes:
+        - name: kubeconfig-management-cluster
+          secret:
+            secretName: kubeconfig-management-cluster
+            optional: false
+        - name: kubeconfig-workload-cluster
+          secret:
+            secretName: ${CLUSTER_NAME}-kubeconfig
+            optional: false
diff --git a/test/e2e/data/infrastructure-vsphere-supervisor/main/topology-autoscaler/cluster-autoscaler.yaml b/test/e2e/data/infrastructure-vsphere-supervisor/main/topology-autoscaler/cluster-autoscaler.yaml
new file mode 100644
index 0000000000..30ceeab096
--- /dev/null
+++ b/test/e2e/data/infrastructure-vsphere-supervisor/main/topology-autoscaler/cluster-autoscaler.yaml
@@ -0,0 +1,12 @@
+- op: replace
+  path: /spec/topology/workers/machineDeployments/0/metadata
+  value:
+    annotations:
+      cluster.x-k8s.io/cluster-api-autoscaler-node-group-max-size: "5"
+      cluster.x-k8s.io/cluster-api-autoscaler-node-group-min-size: "2"
+- op: remove
+  path: /spec/topology/workers/machineDeployments/0/replicas
+  value:
+    annotations:
+      cluster.x-k8s.io/cluster-api-autoscaler-node-group-max-size: "5"
+      cluster.x-k8s.io/cluster-api-autoscaler-node-group-min-size: "2"
diff --git a/test/e2e/data/infrastructure-vsphere-supervisor/main/topology-autoscaler/kustomization.yaml b/test/e2e/data/infrastructure-vsphere-supervisor/main/topology-autoscaler/kustomization.yaml
new file mode 100644
index 0000000000..8efca71355
--- /dev/null
+++ b/test/e2e/data/infrastructure-vsphere-supervisor/main/topology-autoscaler/kustomization.yaml
@@ -0,0 +1,8 @@
+apiVersion: kustomize.config.k8s.io/v1beta1
+kind: Kustomization
+resources:
+  - ../topology
+patches:
+  - target:
+      kind: Cluster
+    path: ./cluster-autoscaler.yaml