diff --git a/api/v1alpha1/conditions_consts.go b/api/v1alpha1/conditions_consts.go
index 32d80d51d7..bc1627604a 100644
--- a/api/v1alpha1/conditions_consts.go
+++ b/api/v1alpha1/conditions_consts.go
@@ -19,4 +19,7 @@ package v1alpha1
 const (
 	// OpenstackFloatingIPPoolReadyCondition reports on the current status of the floating ip pool. Ready indicates that the pool is ready to be used.
 	OpenstackFloatingIPPoolReadyCondition = "OpenstackFloatingIPPoolReadyCondition"
+
+	// MaxIPsReachedReason is set when the maximum number of floating IPs has been reached.
+	MaxIPsReachedReason = "MaxIPsReached"
 )
diff --git a/api/v1alpha1/openstackfloatingippool_types.go b/api/v1alpha1/openstackfloatingippool_types.go
index 0f6c4e129f..fe3316e4af 100644
--- a/api/v1alpha1/openstackfloatingippool_types.go
+++ b/api/v1alpha1/openstackfloatingippool_types.go
@@ -56,6 +56,11 @@ type OpenStackFloatingIPPoolSpec struct {
 	// These are used before allocating new ones and are not deleted from OpenStack when the pool is deleted.
 	PreAllocatedFloatingIPs []string `json:"preAllocatedFloatingIPs,omitempty"`
 
+	// MaxIPs is the maximum number of floating ips that can be allocated from this pool, if nil there is no limit.
+	// If set, the pool will stop allocating floating ips when it reaches this number of ClaimedIPs.
+	// +optional
+	MaxIPs *int `json:"maxIPs,omitempty"`
+
 	// IdentityRef is a reference to a identity to be used when reconciling this pool.
 	// +optional
 	IdentityRef *infrav1alpha7.OpenStackIdentityReference `json:"identityRef,omitempty"`
diff --git a/api/v1alpha1/zz_generated.deepcopy.go b/api/v1alpha1/zz_generated.deepcopy.go
index 0eef1f41d3..353d53b3b7 100644
--- a/api/v1alpha1/zz_generated.deepcopy.go
+++ b/api/v1alpha1/zz_generated.deepcopy.go
@@ -93,6 +93,11 @@ func (in *OpenStackFloatingIPPoolSpec) DeepCopyInto(out *OpenStackFloatingIPPool
 		*out = make([]string, len(*in))
 		copy(*out, *in)
 	}
+	if in.MaxIPs != nil {
+		in, out := &in.MaxIPs, &out.MaxIPs
+		*out = new(int)
+		**out = **in
+	}
 	if in.IdentityRef != nil {
 		in, out := &in.IdentityRef, &out.IdentityRef
 		*out = new(v1alpha7.OpenStackIdentityReference)
diff --git a/config/crd/bases/infrastructure.cluster.x-k8s.io_openstackfloatingippools.yaml b/config/crd/bases/infrastructure.cluster.x-k8s.io_openstackfloatingippools.yaml
index a38c86c0cc..e7677735be 100644
--- a/config/crd/bases/infrastructure.cluster.x-k8s.io_openstackfloatingippools.yaml
+++ b/config/crd/bases/infrastructure.cluster.x-k8s.io_openstackfloatingippools.yaml
@@ -86,6 +86,11 @@ spec:
                 - kind
                 - name
                 type: object
+              maxIPs:
+                description: |-
+                  MaxIPs is the maximum number of floating ips that can be allocated from this pool, if nil there is no limit.
+                  If set, the pool will stop allocating floating ips when it reaches this number of ClaimedIPs.
+                type: integer
               preAllocatedFloatingIPs:
                 description: |-
                   PreAllocatedFloatingIPs is a list of floating IPs precreated in OpenStack that should be used by this pool.
diff --git a/controllers/openstackfloatingippool_controller.go b/controllers/openstackfloatingippool_controller.go
index a5887e88df..c01a5603dd 100644
--- a/controllers/openstackfloatingippool_controller.go
+++ b/controllers/openstackfloatingippool_controller.go
@@ -51,6 +51,8 @@ const (
 	openStackFloatingIPPool = "OpenStackFloatingIPPool"
 )
 
+var errMaxIPsReached = errors.New("maximum number of IPs reached")
+
 var backoff = wait.Backoff{
 	Steps:    4,
 	Duration: 10 * time.Millisecond,
@@ -139,6 +141,10 @@ func (r *OpenStackFloatingIPPoolReconciler) Reconcile(ctx context.Context, req c
 			if apierrors.IsNotFound(err) {
 				ip, err := r.getIP(ctx, scope, pool)
 				if err != nil {
+					if errors.Is(err, errMaxIPsReached) {
+						log.Info("Maximum number of IPs reached, will not allocate more IPs.")
+						return ctrl.Result{}, nil
+					}
 					return ctrl.Result{}, err
 				}
 
@@ -193,6 +199,7 @@ func (r *OpenStackFloatingIPPoolReconciler) Reconcile(ctx context.Context, req c
 			scope.Logger().Info("Claimed IP", "ip", ipAddress.Spec.Address)
 		}
 	}
+	conditions.MarkTrue(pool, infrav1alpha1.OpenstackFloatingIPPoolReadyCondition)
 	return ctrl.Result{}, r.Client.Status().Update(ctx, pool)
 }
 
@@ -341,10 +348,18 @@ func (r *OpenStackFloatingIPPoolReconciler) getIP(ctx context.Context, scope sco
 			return "", fmt.Errorf("get floating IP: %w", err)
 		}
 		if fp != nil {
+			pool.Status.ClaimedIPs = append(pool.Status.ClaimedIPs, fp.FloatingIP)
 			return fp.FloatingIP, nil
 		}
 		pool.Status.FailedIPs = append(pool.Status.FailedIPs, ip)
 	}
+	maxIPs := pointer.IntDeref(pool.Spec.MaxIPs, -1)
+	// If we have reached the maximum number of IPs, we should not create more IPs
+	if maxIPs != -1 && len(pool.Status.ClaimedIPs) >= maxIPs {
+		scope.Logger().Info("MaxIPs reached", "pool", pool.Name)
+		conditions.MarkFalse(pool, infrav1alpha1.OpenstackFloatingIPPoolReadyCondition, infrav1alpha1.MaxIPsReachedReason, clusterv1.ConditionSeverityError, "Maximum number of IPs reached, we will not allocate more IPs for this pool")
+		return "", errMaxIPsReached
+	}
 
 	fp, err := networkingService.CreateFloatingIPForPool(pool)
 	if err != nil {
@@ -368,7 +383,6 @@ func (r *OpenStackFloatingIPPoolReconciler) getIP(ctx context.Context, scope sco
 	}()
 
 	conditions.MarkTrue(pool, infrav1alpha1.OpenstackFloatingIPPoolReadyCondition)
-
 	ip = fp.FloatingIP
 	pool.Status.ClaimedIPs = append(pool.Status.ClaimedIPs, ip)
 	return ip, nil