diff --git a/controllers/rollingupgrade_controller.go b/controllers/rollingupgrade_controller.go
index f2e50700..c5fbcefd 100644
--- a/controllers/rollingupgrade_controller.go
+++ b/controllers/rollingupgrade_controller.go
@@ -74,6 +74,9 @@ const (
 	KubeCtlBinary = "/usr/local/bin/kubectl"
 	// ShellBinary is the path to the shell executable
 	ShellBinary = "/bin/sh"
+
+	// InService is a state of an instance
+	InService = "InService"
 )
 
 var (
@@ -321,6 +324,9 @@ func (r *RollingUpgradeReconciler) WaitForDesiredNodes(ruObj *upgrademgrv1alpha1
 }
 
 func (r *RollingUpgradeReconciler) WaitForTermination(ruObj *upgrademgrv1alpha1.RollingUpgrade, nodeName string, nodeInterface v1.NodeInterface) (bool, error) {
+	if nodeName == "" {
+		return true, nil
+	}
 
 	started := time.Now()
 	for {
@@ -497,16 +503,14 @@ func (r *RollingUpgradeReconciler) populateNodeList(ruObj *upgrademgrv1alpha1.Ro
 
 // Loads specific environment variables for scripts to use
 // on a given rollingUpgrade and autoscaling instance
-func loadEnvironmentVariables(ruObj *upgrademgrv1alpha1.RollingUpgrade, nodeInstance *corev1.Node) error {
+func loadEnvironmentVariables(ruObj *upgrademgrv1alpha1.RollingUpgrade, instanceID string, nodeName string) error {
 	if err := os.Setenv(asgNameKey, ruObj.Spec.AsgName); err != nil {
 		return errors.New(ruObj.Name + ": Could not load " + asgNameKey + ": " + err.Error())
 	}
-	tokens := strings.Split(nodeInstance.Spec.ProviderID, "/")
-	justID := tokens[len(tokens)-1]
-	if err := os.Setenv(instanceIDKey, justID); err != nil {
+	if err := os.Setenv(instanceIDKey, instanceID); err != nil {
 		return errors.New(ruObj.Name + ": Could not load " + instanceIDKey + ": " + err.Error())
 	}
-	if err := os.Setenv(instanceNameKey, nodeInstance.GetName()); err != nil {
+	if err := os.Setenv(instanceNameKey, nodeName); err != nil {
 		return errors.New(ruObj.Name + ": Could not load " + instanceNameKey + ": " + err.Error())
 	}
 	return nil
@@ -734,6 +738,9 @@ func (r *RollingUpgradeReconciler) validateNodesLaunchDefinition(ruObj *upgradem
 	ec2instances := asg.Instances
 	for _, ec2Instance := range ec2instances {
 		ec2InstanceID, ec2InstanceLaunchConfig, ec2InstanceLaunchTemplate := ec2Instance.InstanceId, ec2Instance.LaunchConfigurationName, ec2Instance.LaunchTemplate
+		if aws.StringValue(ec2Instance.LifecycleState) == InService {
+			continue
+		}
 		if aws.StringValue(launchConfigASG) != aws.StringValue(ec2InstanceLaunchConfig) {
 			return fmt.Errorf("launch config mismatch, %s instance config - %s, does not match the asg config", aws.StringValue(ec2InstanceID), aws.StringValue(ec2InstanceLaunchConfig))
 		} else if launchTemplateASG != nil && ec2InstanceLaunchTemplate != nil {
@@ -1028,14 +1035,16 @@ func (r *RollingUpgradeReconciler) DrainTerminate(
 	ch chan error) {
 
 	// Drain and wait for draining node.
-	err := r.DrainNode(ruObj, nodeName, KubeCtlCall, ruObj.Spec.Strategy.DrainTimeout)
-	if err != nil && !ruObj.Spec.IgnoreDrainFailures {
-		ch <- err
-		return
+	if nodeName != "" {
+		err := r.DrainNode(ruObj, nodeName, KubeCtlCall, ruObj.Spec.Strategy.DrainTimeout)
+		if err != nil && !ruObj.Spec.IgnoreDrainFailures {
+			ch <- err
+			return
+		}
 	}
 
 	// Terminate instance.
-	err = r.TerminateNode(ruObj, targetInstanceID)
+	err := r.TerminateNode(ruObj, targetInstanceID)
 	if err != nil {
 		ch <- err
 		return
@@ -1076,13 +1085,9 @@ func (r *RollingUpgradeReconciler) UpdateInstance(ctx *context.Context,
 	}
 
 	nodeName := r.getNodeName(i, r.NodeList, ruObj)
-	if nodeName == "" {
-		ch <- nil
-		return
-	}
 
 	// Load the environment variables for scripts to run
-	err := loadEnvironmentVariables(ruObj, r.getNodeFromAsg(i, r.NodeList, ruObj))
+	err := loadEnvironmentVariables(ruObj, targetInstanceID, nodeName)
 	if err != nil {
 		ch <- err
 		return
diff --git a/controllers/rollingupgrade_controller_test.go b/controllers/rollingupgrade_controller_test.go
index d1cd4043..db6f6822 100644
--- a/controllers/rollingupgrade_controller_test.go
+++ b/controllers/rollingupgrade_controller_test.go
@@ -608,13 +608,10 @@ func TestLoadEnvironmentVariables(t *testing.T) {
 		ObjectMeta: metav1.ObjectMeta{Name: "foo", Namespace: "default"},
 		Spec:       upgrademgrv1alpha1.RollingUpgradeSpec{AsgName: "asg-foo"}}
 
-	mockID := "aws:///us-west-2a/fake-id-foo"
+	mockID := "fake-id-foo"
 	mockName := "instance-name-foo"
-	node := corev1.Node{
-		ObjectMeta: metav1.ObjectMeta{Name: mockName},
-		Spec:       corev1.NodeSpec{ProviderID: mockID}}
 
-	err := loadEnvironmentVariables(ruInstance, &node)
+	err := loadEnvironmentVariables(ruInstance, mockID, mockName)
 	g.Expect(err).To(gomega.BeNil())
 
 	g.Expect(os.Getenv(asgNameKey)).To(gomega.Equal("asg-foo"))
@@ -2325,6 +2322,47 @@ func TestWaitForTermination(t *testing.T) {
 	g.Expect(unjoined).To(gomega.BeTrue())
 }
 
+func TestWaitForTerminationWhenNodeIsNotFound(t *testing.T) {
+	g := gomega.NewGomegaWithT(t)
+
+	TerminationTimeoutSeconds = 1
+	TerminationSleepIntervalSeconds = 1
+
+	// nodeName is empty when a node is not found.
+	mockNodeName := ""
+	mockNode := &corev1.Node{
+		ObjectMeta: metav1.ObjectMeta{
+			Name: mockNodeName,
+		},
+	}
+	kuberenetesClient := fake.NewSimpleClientset()
+	nodeInterface := kuberenetesClient.CoreV1().Nodes()
+
+	mgr, err := buildManager()
+	g.Expect(err).NotTo(gomega.HaveOccurred())
+
+	rcRollingUpgrade := &RollingUpgradeReconciler{
+		Client:          mgr.GetClient(),
+		Log:             log2.NullLogger{},
+		generatedClient: kubernetes.NewForConfigOrDie(mgr.GetConfig()),
+		admissionMap:    sync.Map{},
+		ruObjNameToASG:  sync.Map{},
+		ClusterState:    NewClusterState(),
+	}
+	_, err = nodeInterface.Create(mockNode)
+	g.Expect(err).NotTo(gomega.HaveOccurred())
+	ruObj := &upgrademgrv1alpha1.RollingUpgrade{
+		ObjectMeta: metav1.ObjectMeta{
+			Name:      "foo",
+			Namespace: "default",
+		},
+	}
+
+	unjoined, err := rcRollingUpgrade.WaitForTermination(ruObj, mockNodeName, nodeInterface)
+	g.Expect(unjoined).To(gomega.BeTrue())
+	g.Expect(err).To(gomega.BeNil())
+}
+
 func buildManager() (manager.Manager, error) {
 	err := upgrademgrv1alpha1.AddToScheme(scheme.Scheme)
 	if err != nil {
@@ -2638,6 +2676,19 @@ func TestDrainNodeTerminateTerminatesWhenIgnoreDrainFailuresSet(t *testing.T) {
 		// done.
 	}
 
+	// nodeName is empty when node isn't part of the cluster. It must skip drain and terminate.
+	ch = make(chan error, 1)
+	rcRollingUpgrade.DrainTerminate(ruObj, "", mockNode, KubeCtlBinary, ch)
+
+	select {
+	case err, ok := <-ch:
+		fmt.Println(err)
+		g.Expect(ok).To(gomega.BeFalse()) //don't expect errors.
+	default:
+
+		// done.
+	}
+
 }
 
 func TestUpdateInstancesNotExists(t *testing.T) {