diff --git a/resalloc_ibm_cloud/helpers.py b/resalloc_ibm_cloud/helpers.py
index ebfeee5..95bf303 100644
--- a/resalloc_ibm_cloud/helpers.py
+++ b/resalloc_ibm_cloud/helpers.py
@@ -78,3 +78,13 @@ def setup_logging(log_level="info"):
     logging.basicConfig(level=log_level.upper(), datefmt="[%H:%M:%S]")
 
     root_logger.debug(f"Log level set to {log_level}")
+
+
+def powervs_name(name: str) -> str:
+    """
+    PowerVS has restriction to name, that it must contain maximum of 47
+    characters.
+
+    Returns last 46 characters of the name.
+    """
+    return name[-46:]
diff --git a/resalloc_ibm_cloud/powervs/client.py b/resalloc_ibm_cloud/powervs/client.py
index 45939c2..7210aea 100644
--- a/resalloc_ibm_cloud/powervs/client.py
+++ b/resalloc_ibm_cloud/powervs/client.py
@@ -110,7 +110,7 @@ def request(
 
         try:
             response.raise_for_status()
-        except requests.HTTPError as e:
+        except requests.HTTPError:
             logger.error("API request failed: %s %s - %s", method, url, response.text)
             raise
 
diff --git a/resalloc_ibm_cloud/powervs/credentials.py b/resalloc_ibm_cloud/powervs/credentials.py
index 6aeec2b..4a1d535 100644
--- a/resalloc_ibm_cloud/powervs/credentials.py
+++ b/resalloc_ibm_cloud/powervs/credentials.py
@@ -5,8 +5,6 @@
 import subprocess
 from dataclasses import dataclass
 
-from functools import cached_property
-
 from ibm_cloud_sdk_core.authenticators import IAMAuthenticator
 
 
diff --git a/resalloc_ibm_cloud/powervs/powervs_vm.py b/resalloc_ibm_cloud/powervs/powervs_vm.py
index 1812d27..7ef1fa5 100644
--- a/resalloc_ibm_cloud/powervs/powervs_vm.py
+++ b/resalloc_ibm_cloud/powervs/powervs_vm.py
@@ -15,7 +15,7 @@
 
 from resalloc_ibm_cloud.argparsers import powervs_arg_parser
 from resalloc_ibm_cloud.exceptions import PowerVSNotFoundException
-from resalloc_ibm_cloud.helpers import run_playbook, setup_logging, wait_for_ssh
+from resalloc_ibm_cloud.helpers import powervs_name, run_playbook, setup_logging, wait_for_ssh
 from resalloc_ibm_cloud.powervs.credentials import get_powervs_credentials
 from resalloc_ibm_cloud.powervs.client import PowerVSClient
 
@@ -57,7 +57,7 @@ def _build_instance_base_body(name: str, options: Any) -> dict:
         return instance_body
 
     def _create_volumes_with_tags(
-        self, vm_id: str, volumes: list[dict], tags: Optional[list[str]]
+            self, volumes: list[dict], tags: Optional[list[str]]
     ) -> list[str]:
         if not volumes:
             return []
@@ -113,13 +113,22 @@ def create_vm(self, name: str, options: Any) -> str:
         instance_body = self._build_instance_base_body(name, options)
 
         volumes = self._parse_volumes(getattr(options, "volumes", []))
-        volume_ids = self._create_volumes_with_tags(
-            instance["pvmInstanceID"], volumes, getattr(options, "tags", None)
-        )
+        volume_ids = self._create_volumes_with_tags(volumes, getattr(options, "tags", None))
 
         instance_body["volumeIDs"] = volume_ids
 
-        instance = self._create_instance(instance_body, options.no_rmc)
+        try:
+            instance = self._create_instance(instance_body, options.no_rmc)
+        except Exception:
+            logger.error("Instance creation failed, cleaning up allocated volumes...")
+            sleep(20)  # give IBM Cloud a while to process the volumes
+            for volume_id in volume_ids:
+                try:
+                    self._delete_volume_with_backoff(volume_id)
+                    logger.info("Cleaned up orphaned volume with ID %s", volume_id)
+                except Exception as e:
+                    logger.error("Failed to clean up volume %s: %s", volume_id, str(e))
+            raise
 
         ip_address = self._extract_ip_address(instance)
         wait_for_ssh(ip_address)
@@ -161,7 +170,7 @@ def delete_vm(self, name: str) -> None:
         if not instance_id:
             logger.warning("No instance found with name %s", name)
             return
-        
+
         instance_information = self.client.get_instance(instance_id)
         volume_ids = instance_information.get("volumeIDs", [])
 
@@ -265,6 +274,7 @@ def main() -> int:
         Exit code
     """
     opts = powervs_arg_parser().parse_args()
+    opts.name = powervs_name(opts.name)
 
     setup_logging(opts.log_level)
 
@@ -278,10 +288,12 @@ def main() -> int:
                 ip_address = vm_manager.create_vm(opts.name, opts)
                 print(ip_address)
             except Exception as e:
+                # this mainly handles the post VM creation cleanup
                 logger.error(
                     "Failed to create VM: %s; trying to remove allocated resources...",
                     str(e)
                 )
+                sleep(20)  # give IBM Cloud a while
                 vm_manager.delete_vm(opts.name)
                 raise
         elif opts.subparser == "delete":