diff --git a/api/v1beta1/cluster_types.go b/api/v1beta1/cluster_types.go
index 9168868b63c8..7ba51527b697 100644
--- a/api/v1beta1/cluster_types.go
+++ b/api/v1beta1/cluster_types.go
@@ -686,7 +686,7 @@ type MachineDeploymentTopology struct {
 	// the values are hashed together.
 	// +required
 	// +kubebuilder:validation:MinLength=1
-	// +kubebuilder:validation:MaxLength=256
+	// +kubebuilder:validation:MaxLength=63
 	Name string `json:"name"`
 
 	// failureDomain is the failure domain the machines will be created in.
@@ -797,7 +797,7 @@ type MachinePoolTopology struct {
 	// the values are hashed together.
 	// +required
 	// +kubebuilder:validation:MinLength=1
-	// +kubebuilder:validation:MaxLength=256
+	// +kubebuilder:validation:MaxLength=63
 	Name string `json:"name"`
 
 	// failureDomains is the list of failure domains the machine pool will be created in.
diff --git a/api/v1beta2/cluster_types.go b/api/v1beta2/cluster_types.go
index d90919f6dc87..90e1d3413e9f 100644
--- a/api/v1beta2/cluster_types.go
+++ b/api/v1beta2/cluster_types.go
@@ -686,7 +686,7 @@ type MachineDeploymentTopology struct {
 	// the values are hashed together.
 	// +required
 	// +kubebuilder:validation:MinLength=1
-	// +kubebuilder:validation:MaxLength=256
+	// +kubebuilder:validation:MaxLength=63
 	Name string `json:"name"`
 
 	// failureDomain is the failure domain the machines will be created in.
@@ -797,7 +797,7 @@ type MachinePoolTopology struct {
 	// the values are hashed together.
 	// +required
 	// +kubebuilder:validation:MinLength=1
-	// +kubebuilder:validation:MaxLength=256
+	// +kubebuilder:validation:MaxLength=63
 	Name string `json:"name"`
 
 	// failureDomains is the list of failure domains the machine pool will be created in.
diff --git a/config/crd/bases/cluster.x-k8s.io_clusters.yaml b/config/crd/bases/cluster.x-k8s.io_clusters.yaml
index 8ab3276abdfe..14e1a286ec56 100644
--- a/config/crd/bases/cluster.x-k8s.io_clusters.yaml
+++ b/config/crd/bases/cluster.x-k8s.io_clusters.yaml
@@ -1512,7 +1512,7 @@ spec:
                                 The value is used with other unique identifiers to create a MachineDeployment's Name
                                 (e.g. cluster's name, etc). In case the name is greater than the allowed maximum length,
                                 the values are hashed together.
-                              maxLength: 256
+                              maxLength: 63
                               minLength: 1
                               type: string
                             nodeDeletionTimeout:
@@ -1793,7 +1793,7 @@ spec:
                                 The value is used with other unique identifiers to create a MachinePool's Name
                                 (e.g. cluster's name, etc). In case the name is greater than the allowed maximum length,
                                 the values are hashed together.
-                              maxLength: 256
+                              maxLength: 63
                               minLength: 1
                               type: string
                             nodeDeletionTimeout:
@@ -2941,7 +2941,7 @@ spec:
                                 The value is used with other unique identifiers to create a MachineDeployment's Name
                                 (e.g. cluster's name, etc). In case the name is greater than the allowed maximum length,
                                 the values are hashed together.
-                              maxLength: 256
+                              maxLength: 63
                               minLength: 1
                               type: string
                             nodeDeletionTimeout:
@@ -3222,7 +3222,7 @@ spec:
                                 The value is used with other unique identifiers to create a MachinePool's Name
                                 (e.g. cluster's name, etc). In case the name is greater than the allowed maximum length,
                                 the values are hashed together.
-                              maxLength: 256
+                              maxLength: 63
                               minLength: 1
                               type: string
                             nodeDeletionTimeout: