diff --git a/azure/scope/managedmachinepool.go b/azure/scope/managedmachinepool.go
index a6a32e9b976..e43cfeb2d5c 100644
--- a/azure/scope/managedmachinepool.go
+++ b/azure/scope/managedmachinepool.go
@@ -310,6 +310,9 @@ func (s *ManagedMachinePoolScope) SetCAPIMachinePoolReplicas(replicas *int32) {
 
 // SetCAPIMachinePoolAnnotation sets the specified annotation on the associated MachinePool.
 func (s *ManagedMachinePoolScope) SetCAPIMachinePoolAnnotation(key, value string) {
+	if s.MachinePool.Annotations == nil {
+		s.MachinePool.Annotations = make(map[string]string)
+	}
 	s.MachinePool.Annotations[key] = value
 }