diff --git a/tests/integration/create_cluster/cilium-eni/expected-v1alpha2.yaml b/tests/integration/create_cluster/cilium-eni/expected-v1alpha2.yaml
index a9ba64ffb2..7764e68885 100644
--- a/tests/integration/create_cluster/cilium-eni/expected-v1alpha2.yaml
+++ b/tests/integration/create_cluster/cilium-eni/expected-v1alpha2.yaml
@@ -42,6 +42,7 @@ spec:
   networking:
     cilium:
       enableNodePort: true
+      ipam: eni
   nonMasqueradeCIDR: 100.64.0.0/10
   sshAccess:
   - 0.0.0.0/0
diff --git a/upup/pkg/fi/cloudup/new_cluster.go b/upup/pkg/fi/cloudup/new_cluster.go
index 6d36ec4be9..8143a323d9 100644
--- a/upup/pkg/fi/cloudup/new_cluster.go
+++ b/upup/pkg/fi/cloudup/new_cluster.go
@@ -1143,6 +1143,7 @@ func setupNetworking(opt *NewClusterOptions, cluster *api.Cluster) error {
 		cluster.Spec.Networking.Cilium.EtcdManaged = true
 	case "cilium-eni":
 		addCiliumNetwork(cluster)
+		cluster.Spec.Networking.Cilium.IPAM = "eni"
 	case "gce":
 		cluster.Spec.Networking.GCE = &api.GCENetworkingSpec{}
 	default: