diff --git a/pkg/framework/framework.go b/pkg/framework/framework.go
index dad3a6f57..f11c5f838 100644
--- a/pkg/framework/framework.go
+++ b/pkg/framework/framework.go
@@ -36,6 +36,7 @@ const (
 	// if MachineSet.Spec.Replicas field is set to nil
 	DefaultMachineSetReplicas = 0
 	MachinePhaseRunning       = "Running"
+	MachinePhaseFailed        = "Failed"
 	MachineRoleLabel          = "machine.openshift.io/cluster-api-machine-role"
 	MachineTypeLabel          = "machine.openshift.io/cluster-api-machine-type"
 	MachineAnnotationKey      = "machine.openshift.io/machine"
diff --git a/pkg/framework/machines.go b/pkg/framework/machines.go
index 6091133ce..bcbd2face 100644
--- a/pkg/framework/machines.go
+++ b/pkg/framework/machines.go
@@ -20,17 +20,23 @@ import (
 )
 
 // FilterRunningMachines returns a slice of only those Machines in the input
-// that are in the "Running" phase.
-func FilterRunningMachines(machines []*mapiv1beta1.Machine) []*mapiv1beta1.Machine {
+// that are in the "Running" phase. If some of the machine enters Failed phase,
+// it will indicate this wil an error.
+func FilterRunningMachines(machines []*mapiv1beta1.Machine) ([]*mapiv1beta1.Machine, error) {
 	var result []*mapiv1beta1.Machine
 
 	for i, m := range machines {
-		if m.Status.Phase != nil && *m.Status.Phase == MachinePhaseRunning {
-			result = append(result, machines[i])
+		if m.Status.Phase != nil {
+			switch *m.Status.Phase {
+			case MachinePhaseRunning:
+				result = append(result, machines[i])
+			case MachinePhaseFailed:
+				return nil, fmt.Errorf("Machine entered the Failed phase: %q, reason: %v", m.GetName(), m.Status.ErrorMessage)
+			}
 		}
 	}
 
-	return result
+	return result, nil
 }
 
 // GetMachine get a machine by its name from the default machine API namespace.
diff --git a/pkg/framework/machinesets.go b/pkg/framework/machinesets.go
index a2b649b10..30b298844 100644
--- a/pkg/framework/machinesets.go
+++ b/pkg/framework/machinesets.go
@@ -312,7 +312,8 @@ func WaitForMachineSet(c client.Client, name string) {
 				name, len(machines), int(replicas))
 		}
 
-		running := FilterRunningMachines(machines)
+		running, err := FilterRunningMachines(machines)
+		Expect(err).ToNot(HaveOccurred())
 
 		// This could probably be smarter, but seems fine for now.
 		if len(running) != len(machines) {
diff --git a/pkg/infra/webhooks.go b/pkg/infra/webhooks.go
index eddf2a3ab..ad28136c2 100644
--- a/pkg/infra/webhooks.go
+++ b/pkg/infra/webhooks.go
@@ -85,7 +85,8 @@ var _ = Describe("[Feature:Machines] Webhooks", func() {
 			if err != nil {
 				return err
 			}
-			running := framework.FilterRunningMachines([]*mapiv1.Machine{m})
+			running, err := framework.FilterRunningMachines([]*mapiv1.Machine{m})
+			Expect(err).ToNot(HaveOccurred())
 			if len(running) == 0 {
 				return fmt.Errorf("machine not yet running")
 			}