diff --git a/pkg/cloud/azure/actuators/machine/reconciler.go b/pkg/cloud/azure/actuators/machine/reconciler.go
index 658ac0dcb..cf260b275 100644
--- a/pkg/cloud/azure/actuators/machine/reconciler.go
+++ b/pkg/cloud/azure/actuators/machine/reconciler.go
@@ -562,7 +562,11 @@ func (s *Reconciler) createNetworkInterface(ctx context.Context, nicName string)
 
 		skuI, err := s.resourcesSkus.Get(ctx, skuSpec)
 		if err != nil {
-			return fmt.Errorf("failed to find sku %s", s.scope.MachineConfig.VMSize)
+			if errors.Is(err, resourceskus.ErrResourceNotFound) {
+				return machinecontroller.InvalidMachineConfiguration("failed to obtain instance type information for VMSize '%s' from Azure: %s", skuSpec.Name, err)
+			} else {
+				return fmt.Errorf("failed to obtain instance type information for VMSize '%s' from Azure: %w", skuSpec.Name, err)
+			}
 		}
 
 		sku := skuI.(resourceskus.SKU)
diff --git a/pkg/cloud/azure/actuators/machineset/controller.go b/pkg/cloud/azure/actuators/machineset/controller.go
index daff7e36e..fa4cde3e9 100644
--- a/pkg/cloud/azure/actuators/machineset/controller.go
+++ b/pkg/cloud/azure/actuators/machineset/controller.go
@@ -169,9 +169,10 @@ func getStockKeepUnit(r *Reconciler, machineSet *machinev1.MachineSet) (resource
 	skuI, err := resourceSkusService.Get(context.Background(), skuSpec)
 	if err != nil {
 		if errors.Is(err, resourceskus.ErrResourceNotFound) {
-			return resourceskus.SKU{}, mapierrors.InvalidMachineConfiguration("machine SKU information for machine type %s does not exist: %v", providerConfig.VMSize, err)
+			return resourceskus.SKU{}, mapierrors.InvalidMachineConfiguration("failed to obtain instance type information for VMSize '%s' from Azure: %s", skuSpec.Name, err)
+		} else {
+			return resourceskus.SKU{}, fmt.Errorf("failed to obtain instance type information for VMSize '%s' from Azure: %w", skuSpec.Name, err)
 		}
-		return resourceskus.SKU{}, fmt.Errorf("failed to get SKU information for %s: %w", providerConfig.VMSize, err)
 	}
 
 	sku := skuI.(resourceskus.SKU)
diff --git a/pkg/cloud/azure/services/networkinterfaces/networkinterfaces.go b/pkg/cloud/azure/services/networkinterfaces/networkinterfaces.go
index c91243c61..a42913e68 100644
--- a/pkg/cloud/azure/services/networkinterfaces/networkinterfaces.go
+++ b/pkg/cloud/azure/services/networkinterfaces/networkinterfaces.go
@@ -23,6 +23,7 @@ import (
 
 	"github.com/Azure/azure-sdk-for-go/services/network/mgmt/2021-02-01/network"
 	"github.com/Azure/go-autorest/autorest/to"
+	machinecontroller "github.com/openshift/machine-api-operator/pkg/controller/machine"
 	"github.com/openshift/machine-api-provider-azure/pkg/cloud/azure"
 	"github.com/openshift/machine-api-provider-azure/pkg/cloud/azure/services/applicationsecuritygroups"
 	"github.com/openshift/machine-api-provider-azure/pkg/cloud/azure/services/internalloadbalancers"
@@ -92,7 +93,11 @@ func (s *Service) CreateOrUpdate(ctx context.Context, spec azure.Spec) error {
 	}
 	skuI, err := skuService.Get(ctx, skuSpec)
 	if err != nil {
-		return fmt.Errorf("failed to find sku %s", s.Scope.MachineConfig.VMSize)
+		if errors.Is(err, resourceskus.ErrResourceNotFound) {
+			return machinecontroller.InvalidMachineConfiguration("failed to obtain instance type information for VMSize '%s' from Azure: %s", skuSpec.Name, err)
+		} else {
+			return fmt.Errorf("failed to obtain instance type information for VMSize '%s' from Azure: %w", skuSpec.Name, err)
+		}
 	}
 
 	sku := skuI.(resourceskus.SKU)
diff --git a/pkg/cloud/azure/services/resourceskus/cache.go b/pkg/cloud/azure/services/resourceskus/cache.go
index 402bf0a44..38b7aa0a2 100644
--- a/pkg/cloud/azure/services/resourceskus/cache.go
+++ b/pkg/cloud/azure/services/resourceskus/cache.go
@@ -26,6 +26,7 @@ import (
 
 	"github.com/Azure/azure-sdk-for-go/services/compute/mgmt/2021-03-01/compute"
 	"github.com/pkg/errors"
+	"k8s.io/utils/pointer"
 
 	"github.com/openshift/machine-api-provider-azure/pkg/cloud/azure/actuators"
 	"github.com/openshift/machine-api-provider-azure/pkg/util/cache/ttllru"
@@ -133,7 +134,15 @@ func (c *Cache) Get(ctx context.Context, name string, kind ResourceType) (SKU, e
 			return SKU(sku), nil
 		}
 	}
-	return SKU{}, fmt.Errorf("resource SKU with name '%s' and category '%s' not found in location '%s': %w", name, string(kind), c.location, ErrResourceNotFound)
+
+	availableInRegion := []string{}
+	for _, sku := range c.data {
+		if pointer.StringDeref(sku.ResourceType, "") == string(kind) {
+			availableInRegion = append(availableInRegion, pointer.StringDeref(sku.Name, ""))
+		}
+	}
+
+	return SKU{}, fmt.Errorf("resource SKU with name '%s' and category '%s' not found in location '%s': %w: The valid %s in the current region are: %q. Find out more on the valid resources in each region at https://aka.ms/azure-regionservices", name, string(kind), c.location, ErrResourceNotFound, string(kind), availableInRegion)
 }
 
 // Map invokes a function over all cached values.
diff --git a/pkg/cloud/azure/services/resourceskus/cache_test.go b/pkg/cloud/azure/services/resourceskus/cache_test.go
index afe19a2cb..cbb17e9c1 100644
--- a/pkg/cloud/azure/services/resourceskus/cache_test.go
+++ b/pkg/cloud/azure/services/resourceskus/cache_test.go
@@ -55,10 +55,15 @@ func TestCacheGet(t *testing.T) {
 			resourceType: "bar",
 			have: []compute.ResourceSku{
 				{
-					Name: to.StringPtr("other"),
+					Name:         to.StringPtr("other"),
+					ResourceType: to.StringPtr("bar"),
+				},
+				{
+					Name:         to.StringPtr("other2"),
+					ResourceType: to.StringPtr("bar"),
 				},
 			},
-			err: "resource SKU with name 'foo' and category 'bar' not found in location 'test': resource not found",
+			err: "resource SKU with name 'foo' and category 'bar' not found in location 'test': resource not found: The valid bar in the current region are: [\"other\" \"other2\"]. Find out more on the valid resources in each region at https://aka.ms/azure-regionservices",
 		},
 	}