diff --git a/controllers/azuremanagedmachinepool_controller.go b/controllers/azuremanagedmachinepool_controller.go
index e7167fe21b6..be879dbdc12 100644
--- a/controllers/azuremanagedmachinepool_controller.go
+++ b/controllers/azuremanagedmachinepool_controller.go
@@ -18,6 +18,7 @@ package controllers
 
 import (
 	"context"
+	"fmt"
 	"time"
 
 	"github.com/pkg/errors"
@@ -311,6 +312,16 @@ func (ammpr *AzureManagedMachinePoolReconciler) reconcileDelete(ctx context.Cont
 		}
 
 		if err := svc.Delete(ctx); err != nil {
+			// Handle transient errors
+			var reconcileError azure.ReconcileError
+			if errors.As(err, &reconcileError) && reconcileError.IsTransient() {
+				if azure.IsOperationNotDoneError(reconcileError) {
+					log.V(2).Info(fmt.Sprintf("AzureManagedMachinePool delete not done: %s", reconcileError.Error()))
+				} else {
+					log.V(2).Info("transient failure to delete AzureManagedMachinePool, retrying")
+				}
+				return reconcile.Result{RequeueAfter: reconcileError.RequeueAfter()}, nil
+			}
 			return reconcile.Result{}, errors.Wrapf(err, "error deleting AzureManagedMachinePool %s/%s", scope.InfraMachinePool.Namespace, scope.InfraMachinePool.Name)
 		}
 		// Machine pool successfully deleted, remove the finalizer.
diff --git a/controllers/azuremanagedmachinepool_controller_test.go b/controllers/azuremanagedmachinepool_controller_test.go
index 6c0fae2b4a5..c1767f346fe 100644
--- a/controllers/azuremanagedmachinepool_controller_test.go
+++ b/controllers/azuremanagedmachinepool_controller_test.go
@@ -26,6 +26,7 @@ import (
 	"github.com/Azure/go-autorest/autorest/azure/auth"
 	"github.com/golang/mock/gomock"
 	. "github.com/onsi/gomega"
+	"github.com/pkg/errors"
 	corev1 "k8s.io/api/core/v1"
 	metav1 "k8s.io/apimachinery/pkg/apis/meta/v1"
 	"k8s.io/apimachinery/pkg/runtime"
@@ -33,6 +34,7 @@ import (
 	"k8s.io/client-go/kubernetes/scheme"
 	"k8s.io/utils/pointer"
 	infrav1 "sigs.k8s.io/cluster-api-provider-azure/api/v1beta1"
+	"sigs.k8s.io/cluster-api-provider-azure/azure"
 	"sigs.k8s.io/cluster-api-provider-azure/azure/mock_azure"
 	"sigs.k8s.io/cluster-api-provider-azure/azure/scope"
 	"sigs.k8s.io/cluster-api-provider-azure/azure/services/agentpools"
@@ -95,6 +97,22 @@ func TestAzureManagedMachinePoolReconcile(t *testing.T) {
 				g.Expect(err).NotTo(HaveOccurred())
 			},
 		},
+		{
+			name: "Reconcile delete transient error",
+			Setup: func(cb *fake.ClientBuilder, reconciler *mock_azure.MockReconcilerMockRecorder, agentpools *mock_agentpools.MockAgentPoolScopeMockRecorder, _ *MockNodeListerMockRecorder) {
+				cluster, azManagedCluster, azManagedControlPlane, ammp, mp := newReadyAzureManagedMachinePoolCluster()
+				reconciler.Delete(gomock2.AContext()).Return(azure.WithTransientError(errors.New("transient"), 76*time.Second))
+				agentpools.Name()
+				ammp.DeletionTimestamp = &metav1.Time{
+					Time: time.Now(),
+				}
+				cb.WithObjects(cluster, azManagedCluster, azManagedControlPlane, ammp, mp)
+			},
+			Verify: func(g *WithT, result ctrl.Result, err error) {
+				g.Expect(err).NotTo(HaveOccurred())
+				g.Expect(result.RequeueAfter).To(Equal(76 * time.Second))
+			},
+		},
 	}
 
 	for _, c := range cases {