diff --git a/pkg/provisioner/ironic/ironic.go b/pkg/provisioner/ironic/ironic.go
index e5609f8ada..80d685ce57 100644
--- a/pkg/provisioner/ironic/ironic.go
+++ b/pkg/provisioner/ironic/ironic.go
@@ -216,6 +216,8 @@ func (p *ironicProvisioner) findExistingHost() (ironicNode *nodes.Node, err erro
 			p.log.Info("found existing node by ID")
 			return ironicNode, nil
 		case gophercloud.ErrDefault404:
+			// Look by ID failed, trying to lookup by hostname in case it was
+			// previously created
 		default:
 			return nil, errors.Wrap(err,
 				fmt.Sprintf("failed to find node by ID %s", p.status.ID))
diff --git a/pkg/provisioner/ironic/testserver/ironic.go b/pkg/provisioner/ironic/testserver/ironic.go
index 37d77bf6b5..c0f86bad0b 100644
--- a/pkg/provisioner/ironic/testserver/ironic.go
+++ b/pkg/provisioner/ironic/testserver/ironic.go
@@ -99,6 +99,12 @@ func (m *IronicMock) NoNode(name string) *IronicMock {
 	return m
 }
 
+// NodeError configures the server to return the specified error code for /v1/nodes/name
+func (m *IronicMock) NodeError(name string, errorCode int) *IronicMock {
+	m.ErrorResponse(fmt.Sprintf("/v1/nodes/%s", name), errorCode)
+	return m
+}
+
 // CreateNodes configures the server so POSTing to /v1/nodes saves the data
 func (m *IronicMock) CreateNodes() *IronicMock {
 	m.Handler("/v1/nodes", func(w http.ResponseWriter, r *http.Request) {
diff --git a/pkg/provisioner/ironic/updatehardwarestate_test.go b/pkg/provisioner/ironic/updatehardwarestate_test.go
new file mode 100644
index 0000000000..09aad57e34
--- /dev/null
+++ b/pkg/provisioner/ironic/updatehardwarestate_test.go
@@ -0,0 +1,155 @@
+package ironic
+
+import (
+	"net/http"
+	"testing"
+	"time"
+
+	"github.com/gophercloud/gophercloud/openstack/baremetal/v1/nodes"
+	"github.com/stretchr/testify/assert"
+
+	"github.com/metal3-io/baremetal-operator/pkg/bmc"
+	"github.com/metal3-io/baremetal-operator/pkg/provisioner/ironic/clients"
+	"github.com/metal3-io/baremetal-operator/pkg/provisioner/ironic/testserver"
+)
+
+func TestUpdateHardwareState(t *testing.T) {
+
+	nodeUUID := "33ce8659-7400-4c68-9535-d10766f07a58"
+
+	cases := []struct {
+		name                 string
+		ironic               *testserver.IronicMock
+		inspector            *testserver.InspectorMock
+		hostCurrentlyPowered bool
+		hostName             string
+
+		expectedDirty        bool
+		expectedRequestAfter int
+		expectedResultError  string
+
+		expectedPublish string
+		expectedError   string
+	}{
+		{
+			name: "unkown-power-state",
+			ironic: testserver.NewIronic(t).Ready().WithNode(nodes.Node{
+				UUID: nodeUUID,
+			}),
+		},
+		{
+			name: "updated-power-on-state",
+			ironic: testserver.NewIronic(t).Ready().WithNode(nodes.Node{
+				UUID:       nodeUUID,
+				PowerState: "power on",
+			}),
+			hostCurrentlyPowered: true,
+		},
+		{
+			name: "not-updated-power-on-state",
+			ironic: testserver.NewIronic(t).Ready().WithNode(nodes.Node{
+				UUID:       nodeUUID,
+				PowerState: "power on",
+			}),
+			hostCurrentlyPowered: false,
+
+			expectedDirty: true,
+		},
+		{
+			name: "updated-power-off-state",
+			ironic: testserver.NewIronic(t).Ready().WithNode(nodes.Node{
+				UUID:       nodeUUID,
+				PowerState: "power off",
+			}),
+			hostCurrentlyPowered: false,
+		},
+		{
+			name: "not-updated-power-off-state",
+			ironic: testserver.NewIronic(t).Ready().WithNode(nodes.Node{
+				UUID:       nodeUUID,
+				PowerState: "power off",
+			}),
+			hostCurrentlyPowered: true,
+
+			expectedDirty: true,
+		},
+		{
+			name: "no-power",
+			ironic: testserver.NewIronic(t).Ready().WithNode(nodes.Node{
+				UUID:       nodeUUID,
+				PowerState: "None",
+			}),
+			hostCurrentlyPowered: true,
+		},
+		{
+			name: "node-not-found",
+
+			hostName: "worker-0",
+			ironic:   testserver.NewIronic(t).Ready().NodeError(nodeUUID, http.StatusGatewayTimeout),
+
+			expectedError: "failed to find existing host: failed to find node by ID 33ce8659-7400-4c68-9535-d10766f07a58: Expected HTTP response code \\[200\\].*",
+		},
+		{
+			name: "node-not-found-by-name",
+
+			hostName: "worker-0",
+			ironic:   testserver.NewIronic(t).Ready().NoNode(nodeUUID).NodeError("myhost", http.StatusGatewayTimeout),
+
+			expectedError: "failed to find existing host: failed to find node by name worker-0: EOF",
+		},
+		{
+			name:   "not-ironic-node",
+			ironic: testserver.NewIronic(t).Ready().NoNode(nodeUUID).NoNode("myhost"),
+
+			expectedError: "no ironic node for host",
+		},
+	}
+
+	for _, tc := range cases {
+		t.Run(tc.name, func(t *testing.T) {
+			if tc.ironic != nil {
+				tc.ironic.Start()
+				defer tc.ironic.Stop()
+			}
+
+			if tc.inspector != nil {
+				tc.inspector.Start()
+				defer tc.inspector.Stop()
+			}
+
+			host := makeHost()
+			host.Status.Provisioning.ID = nodeUUID
+			host.Status.PoweredOn = tc.hostCurrentlyPowered
+			if tc.hostName != "" {
+				host.Name = tc.hostName
+			}
+
+			publishedMsg := ""
+			publisher := func(reason, message string) {
+				publishedMsg = reason + " " + message
+			}
+			auth := clients.AuthConfig{Type: clients.NoAuth}
+			prov, err := newProvisionerWithSettings(host, bmc.Credentials{}, publisher,
+				tc.ironic.Endpoint(), auth, tc.inspector.Endpoint(), auth,
+			)
+			if err != nil {
+				t.Fatalf("could not create provisioner: %s", err)
+			}
+
+			result, err := prov.UpdateHardwareState()
+
+			assert.Equal(t, tc.expectedDirty, result.Dirty)
+			assert.Equal(t, time.Second*time.Duration(tc.expectedRequestAfter), result.RequeueAfter)
+			assert.Equal(t, tc.expectedResultError, result.ErrorMessage)
+
+			assert.Equal(t, tc.expectedPublish, publishedMsg)
+			if tc.expectedError == "" {
+				assert.NoError(t, err)
+			} else {
+				assert.Error(t, err)
+				assert.Regexp(t, tc.expectedError, err.Error())
+			}
+
+		})
+	}
+}