diff --git a/api/storage/v1alpha1/volume_types.go b/api/storage/v1alpha1/volume_types.go
index 27775cc97..b6e983224 100644
--- a/api/storage/v1alpha1/volume_types.go
+++ b/api/storage/v1alpha1/volume_types.go
@@ -123,8 +123,24 @@ type VolumeList struct {
 	Items           []Volume `json:"items"`
 }
 
+// ReclaimPolicy for a Volume tells what to do with the volume after its managing resource has been deleted
+type ReclaimPolicy string
+
+const (
+	// The Volume resource is not deleted after the managing resource has been deleted
+	Retain ReclaimPolicy = "Retain"
+	// The Volume resource is garbage-collected when the managing resource has been deleted
+	Delete ReclaimPolicy = "Delete"
+)
+
+type EphemeralVolumeSpec struct {
+	VolumeSpec `json:",inline"`
+	// ReclaimPolicy defines the strategy for the corresponding volume resource after its managing resource has been deleted
+	ReclaimPolicy ReclaimPolicy `json:"reclaimpolicy,omitempty"`
+}
+
 // VolumeTemplateSpec is the specification of a Volume template.
 type VolumeTemplateSpec struct {
 	metav1.ObjectMeta `json:"metadata,omitempty"`
-	Spec              VolumeSpec `json:"spec,omitempty"`
+	Spec              EphemeralVolumeSpec `json:"spec,omitempty"`
 }
diff --git a/api/storage/v1alpha1/zz_generated.deepcopy.go b/api/storage/v1alpha1/zz_generated.deepcopy.go
index 27d1cd639..f51db8410 100644
--- a/api/storage/v1alpha1/zz_generated.deepcopy.go
+++ b/api/storage/v1alpha1/zz_generated.deepcopy.go
@@ -371,6 +371,23 @@ func (in *BucketTemplateSpec) DeepCopy() *BucketTemplateSpec {
 	return out
 }
 
+// DeepCopyInto is an autogenerated deepcopy function, copying the receiver, writing into out. in must be non-nil.
+func (in *EphemeralVolumeSpec) DeepCopyInto(out *EphemeralVolumeSpec) {
+	*out = *in
+	in.VolumeSpec.DeepCopyInto(&out.VolumeSpec)
+	return
+}
+
+// DeepCopy is an autogenerated deepcopy function, copying the receiver, creating a new EphemeralVolumeSpec.
+func (in *EphemeralVolumeSpec) DeepCopy() *EphemeralVolumeSpec {
+	if in == nil {
+		return nil
+	}
+	out := new(EphemeralVolumeSpec)
+	in.DeepCopyInto(out)
+	return out
+}
+
 // DeepCopyInto is an autogenerated deepcopy function, copying the receiver, writing into out. in must be non-nil.
 func (in *Volume) DeepCopyInto(out *Volume) {
 	*out = *in
diff --git a/client-go/applyconfigurations/internal/internal.go b/client-go/applyconfigurations/internal/internal.go
index ddbc611d6..28e46982c 100644
--- a/client-go/applyconfigurations/internal/internal.go
+++ b/client-go/applyconfigurations/internal/internal.go
@@ -1438,6 +1438,49 @@ var schemaYAML = typed.YAMLObject(`types:
     - name: state
       type:
         scalar: string
+- name: com.github.ironcore-dev.ironcore.api.storage.v1alpha1.EphemeralVolumeSpec
+  map:
+    fields:
+    - name: claimRef
+      type:
+        namedType: com.github.ironcore-dev.ironcore.api.common.v1alpha1.LocalUIDReference
+    - name: encryption
+      type:
+        namedType: com.github.ironcore-dev.ironcore.api.storage.v1alpha1.VolumeEncryption
+    - name: image
+      type:
+        scalar: string
+    - name: imagePullSecretRef
+      type:
+        namedType: io.k8s.api.core.v1.LocalObjectReference
+    - name: reclaimpolicy
+      type:
+        scalar: string
+    - name: resources
+      type:
+        map:
+          elementType:
+            namedType: io.k8s.apimachinery.pkg.api.resource.Quantity
+    - name: tolerations
+      type:
+        list:
+          elementType:
+            namedType: com.github.ironcore-dev.ironcore.api.common.v1alpha1.Toleration
+          elementRelationship: atomic
+    - name: unclaimable
+      type:
+        scalar: boolean
+    - name: volumeClassRef
+      type:
+        namedType: io.k8s.api.core.v1.LocalObjectReference
+    - name: volumePoolRef
+      type:
+        namedType: io.k8s.api.core.v1.LocalObjectReference
+    - name: volumePoolSelector
+      type:
+        map:
+          elementType:
+            scalar: string
 - name: com.github.ironcore-dev.ironcore.api.storage.v1alpha1.Volume
   map:
     fields:
@@ -1683,7 +1726,7 @@ var schemaYAML = typed.YAMLObject(`types:
       default: {}
     - name: spec
       type:
-        namedType: com.github.ironcore-dev.ironcore.api.storage.v1alpha1.VolumeSpec
+        namedType: com.github.ironcore-dev.ironcore.api.storage.v1alpha1.EphemeralVolumeSpec
       default: {}
 - name: io.k8s.api.core.v1.LocalObjectReference
   map:
diff --git a/client-go/applyconfigurations/storage/v1alpha1/ephemeralvolumespec.go b/client-go/applyconfigurations/storage/v1alpha1/ephemeralvolumespec.go
new file mode 100644
index 000000000..bb7a2229c
--- /dev/null
+++ b/client-go/applyconfigurations/storage/v1alpha1/ephemeralvolumespec.go
@@ -0,0 +1,122 @@
+// SPDX-FileCopyrightText: 2023 SAP SE or an SAP affiliate company and IronCore contributors
+// SPDX-License-Identifier: Apache-2.0
+
+// Code generated by applyconfiguration-gen. DO NOT EDIT.
+
+package v1alpha1
+
+import (
+	commonv1alpha1 "github.com/ironcore-dev/ironcore/api/common/v1alpha1"
+	corev1alpha1 "github.com/ironcore-dev/ironcore/api/core/v1alpha1"
+	storagev1alpha1 "github.com/ironcore-dev/ironcore/api/storage/v1alpha1"
+	v1 "k8s.io/api/core/v1"
+)
+
+// EphemeralVolumeSpecApplyConfiguration represents an declarative configuration of the EphemeralVolumeSpec type for use
+// with apply.
+type EphemeralVolumeSpecApplyConfiguration struct {
+	VolumeSpecApplyConfiguration `json:",inline"`
+	ReclaimPolicy                *storagev1alpha1.ReclaimPolicy `json:"reclaimpolicy,omitempty"`
+}
+
+// EphemeralVolumeSpecApplyConfiguration constructs an declarative configuration of the EphemeralVolumeSpec type for use with
+// apply.
+func EphemeralVolumeSpec() *EphemeralVolumeSpecApplyConfiguration {
+	return &EphemeralVolumeSpecApplyConfiguration{}
+}
+
+// WithVolumeClassRef sets the VolumeClassRef field in the declarative configuration to the given value
+// and returns the receiver, so that objects can be built by chaining "With" function invocations.
+// If called multiple times, the VolumeClassRef field is set to the value of the last call.
+func (b *EphemeralVolumeSpecApplyConfiguration) WithVolumeClassRef(value v1.LocalObjectReference) *EphemeralVolumeSpecApplyConfiguration {
+	b.VolumeClassRef = &value
+	return b
+}
+
+// WithVolumePoolSelector puts the entries into the VolumePoolSelector field in the declarative configuration
+// and returns the receiver, so that objects can be build by chaining "With" function invocations.
+// If called multiple times, the entries provided by each call will be put on the VolumePoolSelector field,
+// overwriting an existing map entries in VolumePoolSelector field with the same key.
+func (b *EphemeralVolumeSpecApplyConfiguration) WithVolumePoolSelector(entries map[string]string) *EphemeralVolumeSpecApplyConfiguration {
+	if b.VolumePoolSelector == nil && len(entries) > 0 {
+		b.VolumePoolSelector = make(map[string]string, len(entries))
+	}
+	for k, v := range entries {
+		b.VolumePoolSelector[k] = v
+	}
+	return b
+}
+
+// WithVolumePoolRef sets the VolumePoolRef field in the declarative configuration to the given value
+// and returns the receiver, so that objects can be built by chaining "With" function invocations.
+// If called multiple times, the VolumePoolRef field is set to the value of the last call.
+func (b *EphemeralVolumeSpecApplyConfiguration) WithVolumePoolRef(value v1.LocalObjectReference) *EphemeralVolumeSpecApplyConfiguration {
+	b.VolumePoolRef = &value
+	return b
+}
+
+// WithClaimRef sets the ClaimRef field in the declarative configuration to the given value
+// and returns the receiver, so that objects can be built by chaining "With" function invocations.
+// If called multiple times, the ClaimRef field is set to the value of the last call.
+func (b *EphemeralVolumeSpecApplyConfiguration) WithClaimRef(value commonv1alpha1.LocalUIDReference) *EphemeralVolumeSpecApplyConfiguration {
+	b.ClaimRef = &value
+	return b
+}
+
+// WithResources sets the Resources field in the declarative configuration to the given value
+// and returns the receiver, so that objects can be built by chaining "With" function invocations.
+// If called multiple times, the Resources field is set to the value of the last call.
+func (b *EphemeralVolumeSpecApplyConfiguration) WithResources(value corev1alpha1.ResourceList) *EphemeralVolumeSpecApplyConfiguration {
+	b.Resources = &value
+	return b
+}
+
+// WithImage sets the Image field in the declarative configuration to the given value
+// and returns the receiver, so that objects can be built by chaining "With" function invocations.
+// If called multiple times, the Image field is set to the value of the last call.
+func (b *EphemeralVolumeSpecApplyConfiguration) WithImage(value string) *EphemeralVolumeSpecApplyConfiguration {
+	b.Image = &value
+	return b
+}
+
+// WithImagePullSecretRef sets the ImagePullSecretRef field in the declarative configuration to the given value
+// and returns the receiver, so that objects can be built by chaining "With" function invocations.
+// If called multiple times, the ImagePullSecretRef field is set to the value of the last call.
+func (b *EphemeralVolumeSpecApplyConfiguration) WithImagePullSecretRef(value v1.LocalObjectReference) *EphemeralVolumeSpecApplyConfiguration {
+	b.ImagePullSecretRef = &value
+	return b
+}
+
+// WithUnclaimable sets the Unclaimable field in the declarative configuration to the given value
+// and returns the receiver, so that objects can be built by chaining "With" function invocations.
+// If called multiple times, the Unclaimable field is set to the value of the last call.
+func (b *EphemeralVolumeSpecApplyConfiguration) WithUnclaimable(value bool) *EphemeralVolumeSpecApplyConfiguration {
+	b.Unclaimable = &value
+	return b
+}
+
+// WithTolerations adds the given value to the Tolerations field in the declarative configuration
+// and returns the receiver, so that objects can be build by chaining "With" function invocations.
+// If called multiple times, values provided by each call will be appended to the Tolerations field.
+func (b *EphemeralVolumeSpecApplyConfiguration) WithTolerations(values ...commonv1alpha1.Toleration) *EphemeralVolumeSpecApplyConfiguration {
+	for i := range values {
+		b.Tolerations = append(b.Tolerations, values[i])
+	}
+	return b
+}
+
+// WithEncryption sets the Encryption field in the declarative configuration to the given value
+// and returns the receiver, so that objects can be built by chaining "With" function invocations.
+// If called multiple times, the Encryption field is set to the value of the last call.
+func (b *EphemeralVolumeSpecApplyConfiguration) WithEncryption(value *VolumeEncryptionApplyConfiguration) *EphemeralVolumeSpecApplyConfiguration {
+	b.Encryption = value
+	return b
+}
+
+// WithReclaimPolicy sets the ReclaimPolicy field in the declarative configuration to the given value
+// and returns the receiver, so that objects can be built by chaining "With" function invocations.
+// If called multiple times, the ReclaimPolicy field is set to the value of the last call.
+func (b *EphemeralVolumeSpecApplyConfiguration) WithReclaimPolicy(value storagev1alpha1.ReclaimPolicy) *EphemeralVolumeSpecApplyConfiguration {
+	b.ReclaimPolicy = &value
+	return b
+}
diff --git a/client-go/applyconfigurations/storage/v1alpha1/volumetemplatespec.go b/client-go/applyconfigurations/storage/v1alpha1/volumetemplatespec.go
index 324150023..ba8207a7f 100644
--- a/client-go/applyconfigurations/storage/v1alpha1/volumetemplatespec.go
+++ b/client-go/applyconfigurations/storage/v1alpha1/volumetemplatespec.go
@@ -15,7 +15,7 @@ import (
 // with apply.
 type VolumeTemplateSpecApplyConfiguration struct {
 	*v1.ObjectMetaApplyConfiguration `json:"metadata,omitempty"`
-	Spec                             *VolumeSpecApplyConfiguration `json:"spec,omitempty"`
+	Spec                             *EphemeralVolumeSpecApplyConfiguration `json:"spec,omitempty"`
 }
 
 // VolumeTemplateSpecApplyConfiguration constructs an declarative configuration of the VolumeTemplateSpec type for use with
@@ -169,7 +169,7 @@ func (b *VolumeTemplateSpecApplyConfiguration) ensureObjectMetaApplyConfiguratio
 // WithSpec sets the Spec field in the declarative configuration to the given value
 // and returns the receiver, so that objects can be built by chaining "With" function invocations.
 // If called multiple times, the Spec field is set to the value of the last call.
-func (b *VolumeTemplateSpecApplyConfiguration) WithSpec(value *VolumeSpecApplyConfiguration) *VolumeTemplateSpecApplyConfiguration {
+func (b *VolumeTemplateSpecApplyConfiguration) WithSpec(value *EphemeralVolumeSpecApplyConfiguration) *VolumeTemplateSpecApplyConfiguration {
 	b.Spec = value
 	return b
 }
diff --git a/client-go/applyconfigurations/utils.go b/client-go/applyconfigurations/utils.go
index 3384fc3b6..5c985ba8b 100644
--- a/client-go/applyconfigurations/utils.go
+++ b/client-go/applyconfigurations/utils.go
@@ -200,6 +200,8 @@ func ForKind(kind schema.GroupVersionKind) interface{} {
 		return &applyconfigurationsstoragev1alpha1.BucketSpecApplyConfiguration{}
 	case storagev1alpha1.SchemeGroupVersion.WithKind("BucketStatus"):
 		return &applyconfigurationsstoragev1alpha1.BucketStatusApplyConfiguration{}
+	case storagev1alpha1.SchemeGroupVersion.WithKind("EphemeralVolumeSpec"):
+		return &applyconfigurationsstoragev1alpha1.EphemeralVolumeSpecApplyConfiguration{}
 	case storagev1alpha1.SchemeGroupVersion.WithKind("Volume"):
 		return &applyconfigurationsstoragev1alpha1.VolumeApplyConfiguration{}
 	case storagev1alpha1.SchemeGroupVersion.WithKind("VolumeAccess"):
diff --git a/client-go/openapi/api_violations.report b/client-go/openapi/api_violations.report
index 9bfd08cd3..04bc9c12e 100644
--- a/client-go/openapi/api_violations.report
+++ b/client-go/openapi/api_violations.report
@@ -54,6 +54,7 @@ API rule violation: names_match,github.com/ironcore-dev/ironcore/api/networking/
 API rule violation: names_match,github.com/ironcore-dev/ironcore/api/networking/v1alpha1,NetworkInterfaceSpec,IPs
 API rule violation: names_match,github.com/ironcore-dev/ironcore/api/networking/v1alpha1,NetworkInterfaceStatus,IPs
 API rule violation: names_match,github.com/ironcore-dev/ironcore/api/networking/v1alpha1,NetworkSpec,PeeringClaimRefs
+API rule violation: names_match,github.com/ironcore-dev/ironcore/api/storage/v1alpha1,EphemeralVolumeSpec,ReclaimPolicy
 API rule violation: names_match,k8s.io/api/core/v1,AzureDiskVolumeSource,DataDiskURI
 API rule violation: names_match,k8s.io/api/core/v1,ContainerStatus,LastTerminationState
 API rule violation: names_match,k8s.io/api/core/v1,DaemonEndpoint,Port
diff --git a/client-go/openapi/zz_generated.openapi.go b/client-go/openapi/zz_generated.openapi.go
index 8262acdee..06cd3cf72 100644
--- a/client-go/openapi/zz_generated.openapi.go
+++ b/client-go/openapi/zz_generated.openapi.go
@@ -129,6 +129,7 @@ func GetOpenAPIDefinitions(ref common.ReferenceCallback) map[string]common.OpenA
 		"github.com/ironcore-dev/ironcore/api/storage/v1alpha1.BucketSpec":                      schema_ironcore_api_storage_v1alpha1_BucketSpec(ref),
 		"github.com/ironcore-dev/ironcore/api/storage/v1alpha1.BucketStatus":                    schema_ironcore_api_storage_v1alpha1_BucketStatus(ref),
 		"github.com/ironcore-dev/ironcore/api/storage/v1alpha1.BucketTemplateSpec":              schema_ironcore_api_storage_v1alpha1_BucketTemplateSpec(ref),
+		"github.com/ironcore-dev/ironcore/api/storage/v1alpha1.EphemeralVolumeSpec":             schema_ironcore_api_storage_v1alpha1_EphemeralVolumeSpec(ref),
 		"github.com/ironcore-dev/ironcore/api/storage/v1alpha1.Volume":                          schema_ironcore_api_storage_v1alpha1_Volume(ref),
 		"github.com/ironcore-dev/ironcore/api/storage/v1alpha1.VolumeAccess":                    schema_ironcore_api_storage_v1alpha1_VolumeAccess(ref),
 		"github.com/ironcore-dev/ironcore/api/storage/v1alpha1.VolumeClass":                     schema_ironcore_api_storage_v1alpha1_VolumeClass(ref),
@@ -5176,6 +5177,115 @@ func schema_ironcore_api_storage_v1alpha1_BucketTemplateSpec(ref common.Referenc
 	}
 }
 
+func schema_ironcore_api_storage_v1alpha1_EphemeralVolumeSpec(ref common.ReferenceCallback) common.OpenAPIDefinition {
+	return common.OpenAPIDefinition{
+		Schema: spec.Schema{
+			SchemaProps: spec.SchemaProps{
+				Type: []string{"object"},
+				Properties: map[string]spec.Schema{
+					"volumeClassRef": {
+						SchemaProps: spec.SchemaProps{
+							Description: "VolumeClassRef is the VolumeClass of a volume If empty, an external controller has to provision the volume.",
+							Ref:         ref("k8s.io/api/core/v1.LocalObjectReference"),
+						},
+					},
+					"volumePoolSelector": {
+						SchemaProps: spec.SchemaProps{
+							Description: "VolumePoolSelector selects a suitable VolumePoolRef by the given labels.",
+							Type:        []string{"object"},
+							AdditionalProperties: &spec.SchemaOrBool{
+								Allows: true,
+								Schema: &spec.Schema{
+									SchemaProps: spec.SchemaProps{
+										Default: "",
+										Type:    []string{"string"},
+										Format:  "",
+									},
+								},
+							},
+						},
+					},
+					"volumePoolRef": {
+						SchemaProps: spec.SchemaProps{
+							Description: "VolumePoolRef indicates which VolumePool to use for a volume. If unset, the scheduler will figure out a suitable VolumePoolRef.",
+							Ref:         ref("k8s.io/api/core/v1.LocalObjectReference"),
+						},
+					},
+					"claimRef": {
+						SchemaProps: spec.SchemaProps{
+							Description: "ClaimRef is the reference to the claiming entity of the Volume.",
+							Ref:         ref("github.com/ironcore-dev/ironcore/api/common/v1alpha1.LocalUIDReference"),
+						},
+					},
+					"resources": {
+						SchemaProps: spec.SchemaProps{
+							Description: "Resources is a description of the volume's resources and capacity.",
+							Type:        []string{"object"},
+							AdditionalProperties: &spec.SchemaOrBool{
+								Allows: true,
+								Schema: &spec.Schema{
+									SchemaProps: spec.SchemaProps{
+										Ref: ref("k8s.io/apimachinery/pkg/api/resource.Quantity"),
+									},
+								},
+							},
+						},
+					},
+					"image": {
+						SchemaProps: spec.SchemaProps{
+							Description: "Image is an optional image to bootstrap the volume with.",
+							Type:        []string{"string"},
+							Format:      "",
+						},
+					},
+					"imagePullSecretRef": {
+						SchemaProps: spec.SchemaProps{
+							Description: "ImagePullSecretRef is an optional secret for pulling the image of a volume.",
+							Ref:         ref("k8s.io/api/core/v1.LocalObjectReference"),
+						},
+					},
+					"unclaimable": {
+						SchemaProps: spec.SchemaProps{
+							Description: "Unclaimable marks the volume as unclaimable.",
+							Type:        []string{"boolean"},
+							Format:      "",
+						},
+					},
+					"tolerations": {
+						SchemaProps: spec.SchemaProps{
+							Description: "Tolerations define tolerations the Volume has. Only any VolumePool whose taints covered by Tolerations will be considered to host the Volume.",
+							Type:        []string{"array"},
+							Items: &spec.SchemaOrArray{
+								Schema: &spec.Schema{
+									SchemaProps: spec.SchemaProps{
+										Default: map[string]interface{}{},
+										Ref:     ref("github.com/ironcore-dev/ironcore/api/common/v1alpha1.Toleration"),
+									},
+								},
+							},
+						},
+					},
+					"encryption": {
+						SchemaProps: spec.SchemaProps{
+							Description: "Encryption is an optional field which provides attributes to encrypt Volume.",
+							Ref:         ref("github.com/ironcore-dev/ironcore/api/storage/v1alpha1.VolumeEncryption"),
+						},
+					},
+					"reclaimpolicy": {
+						SchemaProps: spec.SchemaProps{
+							Description: "ReclaimPolicy defines the strategy for the corresponding volume resource after its managing resource has been deleted",
+							Type:        []string{"string"},
+							Format:      "",
+						},
+					},
+				},
+			},
+		},
+		Dependencies: []string{
+			"github.com/ironcore-dev/ironcore/api/common/v1alpha1.LocalUIDReference", "github.com/ironcore-dev/ironcore/api/common/v1alpha1.Toleration", "github.com/ironcore-dev/ironcore/api/storage/v1alpha1.VolumeEncryption", "k8s.io/api/core/v1.LocalObjectReference", "k8s.io/apimachinery/pkg/api/resource.Quantity"},
+	}
+}
+
 func schema_ironcore_api_storage_v1alpha1_Volume(ref common.ReferenceCallback) common.OpenAPIDefinition {
 	return common.OpenAPIDefinition{
 		Schema: spec.Schema{
@@ -5951,14 +6061,14 @@ func schema_ironcore_api_storage_v1alpha1_VolumeTemplateSpec(ref common.Referenc
 					"spec": {
 						SchemaProps: spec.SchemaProps{
 							Default: map[string]interface{}{},
-							Ref:     ref("github.com/ironcore-dev/ironcore/api/storage/v1alpha1.VolumeSpec"),
+							Ref:     ref("github.com/ironcore-dev/ironcore/api/storage/v1alpha1.EphemeralVolumeSpec"),
 						},
 					},
 				},
 			},
 		},
 		Dependencies: []string{
-			"github.com/ironcore-dev/ironcore/api/storage/v1alpha1.VolumeSpec", "k8s.io/apimachinery/pkg/apis/meta/v1.ObjectMeta"},
+			"github.com/ironcore-dev/ironcore/api/storage/v1alpha1.EphemeralVolumeSpec", "k8s.io/apimachinery/pkg/apis/meta/v1.ObjectMeta"},
 	}
 }
 
diff --git a/internal/apis/storage/v1alpha1/zz_generated.conversion.go b/internal/apis/storage/v1alpha1/zz_generated.conversion.go
index 953beaeaf..8d303ac25 100644
--- a/internal/apis/storage/v1alpha1/zz_generated.conversion.go
+++ b/internal/apis/storage/v1alpha1/zz_generated.conversion.go
@@ -159,6 +159,16 @@ func RegisterConversions(s *runtime.Scheme) error {
 	}); err != nil {
 		return err
 	}
+	if err := s.AddGeneratedConversionFunc((*v1alpha1.EphemeralVolumeSpec)(nil), (*storage.EphemeralVolumeSpec)(nil), func(a, b interface{}, scope conversion.Scope) error {
+		return Convert_v1alpha1_EphemeralVolumeSpec_To_storage_EphemeralVolumeSpec(a.(*v1alpha1.EphemeralVolumeSpec), b.(*storage.EphemeralVolumeSpec), scope)
+	}); err != nil {
+		return err
+	}
+	if err := s.AddGeneratedConversionFunc((*storage.EphemeralVolumeSpec)(nil), (*v1alpha1.EphemeralVolumeSpec)(nil), func(a, b interface{}, scope conversion.Scope) error {
+		return Convert_storage_EphemeralVolumeSpec_To_v1alpha1_EphemeralVolumeSpec(a.(*storage.EphemeralVolumeSpec), b.(*v1alpha1.EphemeralVolumeSpec), scope)
+	}); err != nil {
+		return err
+	}
 	if err := s.AddGeneratedConversionFunc((*v1alpha1.Volume)(nil), (*storage.Volume)(nil), func(a, b interface{}, scope conversion.Scope) error {
 		return Convert_v1alpha1_Volume_To_storage_Volume(a.(*v1alpha1.Volume), b.(*storage.Volume), scope)
 	}); err != nil {
@@ -638,6 +648,32 @@ func Convert_storage_BucketTemplateSpec_To_v1alpha1_BucketTemplateSpec(in *stora
 	return autoConvert_storage_BucketTemplateSpec_To_v1alpha1_BucketTemplateSpec(in, out, s)
 }
 
+func autoConvert_v1alpha1_EphemeralVolumeSpec_To_storage_EphemeralVolumeSpec(in *v1alpha1.EphemeralVolumeSpec, out *storage.EphemeralVolumeSpec, s conversion.Scope) error {
+	if err := Convert_v1alpha1_VolumeSpec_To_storage_VolumeSpec(&in.VolumeSpec, &out.VolumeSpec, s); err != nil {
+		return err
+	}
+	out.ReclaimPolicy = storage.ReclaimPolicy(in.ReclaimPolicy)
+	return nil
+}
+
+// Convert_v1alpha1_EphemeralVolumeSpec_To_storage_EphemeralVolumeSpec is an autogenerated conversion function.
+func Convert_v1alpha1_EphemeralVolumeSpec_To_storage_EphemeralVolumeSpec(in *v1alpha1.EphemeralVolumeSpec, out *storage.EphemeralVolumeSpec, s conversion.Scope) error {
+	return autoConvert_v1alpha1_EphemeralVolumeSpec_To_storage_EphemeralVolumeSpec(in, out, s)
+}
+
+func autoConvert_storage_EphemeralVolumeSpec_To_v1alpha1_EphemeralVolumeSpec(in *storage.EphemeralVolumeSpec, out *v1alpha1.EphemeralVolumeSpec, s conversion.Scope) error {
+	if err := Convert_storage_VolumeSpec_To_v1alpha1_VolumeSpec(&in.VolumeSpec, &out.VolumeSpec, s); err != nil {
+		return err
+	}
+	out.ReclaimPolicy = v1alpha1.ReclaimPolicy(in.ReclaimPolicy)
+	return nil
+}
+
+// Convert_storage_EphemeralVolumeSpec_To_v1alpha1_EphemeralVolumeSpec is an autogenerated conversion function.
+func Convert_storage_EphemeralVolumeSpec_To_v1alpha1_EphemeralVolumeSpec(in *storage.EphemeralVolumeSpec, out *v1alpha1.EphemeralVolumeSpec, s conversion.Scope) error {
+	return autoConvert_storage_EphemeralVolumeSpec_To_v1alpha1_EphemeralVolumeSpec(in, out, s)
+}
+
 func autoConvert_v1alpha1_Volume_To_storage_Volume(in *v1alpha1.Volume, out *storage.Volume, s conversion.Scope) error {
 	out.ObjectMeta = in.ObjectMeta
 	if err := Convert_v1alpha1_VolumeSpec_To_storage_VolumeSpec(&in.Spec, &out.Spec, s); err != nil {
@@ -1014,7 +1050,7 @@ func Convert_storage_VolumeStatus_To_v1alpha1_VolumeStatus(in *storage.VolumeSta
 
 func autoConvert_v1alpha1_VolumeTemplateSpec_To_storage_VolumeTemplateSpec(in *v1alpha1.VolumeTemplateSpec, out *storage.VolumeTemplateSpec, s conversion.Scope) error {
 	out.ObjectMeta = in.ObjectMeta
-	if err := Convert_v1alpha1_VolumeSpec_To_storage_VolumeSpec(&in.Spec, &out.Spec, s); err != nil {
+	if err := Convert_v1alpha1_EphemeralVolumeSpec_To_storage_EphemeralVolumeSpec(&in.Spec, &out.Spec, s); err != nil {
 		return err
 	}
 	return nil
@@ -1027,7 +1063,7 @@ func Convert_v1alpha1_VolumeTemplateSpec_To_storage_VolumeTemplateSpec(in *v1alp
 
 func autoConvert_storage_VolumeTemplateSpec_To_v1alpha1_VolumeTemplateSpec(in *storage.VolumeTemplateSpec, out *v1alpha1.VolumeTemplateSpec, s conversion.Scope) error {
 	out.ObjectMeta = in.ObjectMeta
-	if err := Convert_storage_VolumeSpec_To_v1alpha1_VolumeSpec(&in.Spec, &out.Spec, s); err != nil {
+	if err := Convert_storage_EphemeralVolumeSpec_To_v1alpha1_EphemeralVolumeSpec(&in.Spec, &out.Spec, s); err != nil {
 		return err
 	}
 	return nil
diff --git a/internal/apis/storage/validation/volumetemplate.go b/internal/apis/storage/validation/volumetemplate.go
index 814753769..3c60ba1bf 100644
--- a/internal/apis/storage/validation/volumetemplate.go
+++ b/internal/apis/storage/validation/volumetemplate.go
@@ -33,7 +33,7 @@ func ValidateVolumeTemplateSpec(spec *storage.VolumeTemplateSpec, fldPath *field
 	var allErrs field.ErrorList
 
 	allErrs = append(allErrs, validateVolumeTemplateSpecMetadata(&spec.ObjectMeta, fldPath.Child("metadata"))...)
-	allErrs = append(allErrs, validateVolumeSpec(&spec.Spec, fldPath.Child("spec"))...)
+	allErrs = append(allErrs, validateVolumeSpec(&spec.Spec.VolumeSpec, fldPath.Child("spec"))...)
 
 	return allErrs
 }
diff --git a/internal/apis/storage/volume_types.go b/internal/apis/storage/volume_types.go
index 9b12f60b4..d12e99f03 100644
--- a/internal/apis/storage/volume_types.go
+++ b/internal/apis/storage/volume_types.go
@@ -122,8 +122,24 @@ type VolumeList struct {
 	Items []Volume
 }
 
+// ReclaimPolicy for a Volume tells what to do with the volume after its managing resource has been deleted
+type ReclaimPolicy string
+
+const (
+	// The Volume resource is not deleted after the managing resource has been deleted
+	Retain ReclaimPolicy = "Retain"
+	// The Volume resource is garbage-collected when the managing resource has been deleted
+	Delete ReclaimPolicy = "Delete"
+)
+
+type EphemeralVolumeSpec struct {
+	VolumeSpec
+	// ReclaimPolicy defines the strategy for the corresponding volume resource after its managing resource has been deleted
+	ReclaimPolicy ReclaimPolicy
+}
+
 // VolumeTemplateSpec is the specification of a Volume template.
 type VolumeTemplateSpec struct {
 	metav1.ObjectMeta
-	Spec VolumeSpec
+	Spec EphemeralVolumeSpec
 }
diff --git a/internal/apis/storage/zz_generated.deepcopy.go b/internal/apis/storage/zz_generated.deepcopy.go
index f27d9ffd5..ccedf552f 100644
--- a/internal/apis/storage/zz_generated.deepcopy.go
+++ b/internal/apis/storage/zz_generated.deepcopy.go
@@ -371,6 +371,23 @@ func (in *BucketTemplateSpec) DeepCopy() *BucketTemplateSpec {
 	return out
 }
 
+// DeepCopyInto is an autogenerated deepcopy function, copying the receiver, writing into out. in must be non-nil.
+func (in *EphemeralVolumeSpec) DeepCopyInto(out *EphemeralVolumeSpec) {
+	*out = *in
+	in.VolumeSpec.DeepCopyInto(&out.VolumeSpec)
+	return
+}
+
+// DeepCopy is an autogenerated deepcopy function, copying the receiver, creating a new EphemeralVolumeSpec.
+func (in *EphemeralVolumeSpec) DeepCopy() *EphemeralVolumeSpec {
+	if in == nil {
+		return nil
+	}
+	out := new(EphemeralVolumeSpec)
+	in.DeepCopyInto(out)
+	return out
+}
+
 // DeepCopyInto is an autogenerated deepcopy function, copying the receiver, writing into out. in must be non-nil.
 func (in *Volume) DeepCopyInto(out *Volume) {
 	*out = *in
diff --git a/internal/controllers/compute/machine_ephemeralvolume_controller.go b/internal/controllers/compute/machine_ephemeralvolume_controller.go
index 3f90aaa69..5bcf2ee4f 100644
--- a/internal/controllers/compute/machine_ephemeralvolume_controller.go
+++ b/internal/controllers/compute/machine_ephemeralvolume_controller.go
@@ -21,6 +21,7 @@ import (
 	ctrl "sigs.k8s.io/controller-runtime"
 	"sigs.k8s.io/controller-runtime/pkg/builder"
 	"sigs.k8s.io/controller-runtime/pkg/client"
+	"sigs.k8s.io/controller-runtime/pkg/controller/controllerutil"
 	"sigs.k8s.io/controller-runtime/pkg/handler"
 	"sigs.k8s.io/controller-runtime/pkg/predicate"
 )
@@ -71,19 +72,29 @@ func (r *MachineEphemeralVolumeReconciler) ephemeralMachineVolumeByName(machine
 				Labels:      ephemeral.VolumeTemplate.Labels,
 				Annotations: maps.Clone(ephemeral.VolumeTemplate.Annotations),
 			},
-			Spec: ephemeral.VolumeTemplate.Spec,
+			Spec: ephemeral.VolumeTemplate.Spec.VolumeSpec,
 		}
 		annotations.SetDefaultEphemeralManagedBy(volume)
-		_ = ctrl.SetControllerReference(machine, volume, r.Scheme())
+		if machineVolume.Ephemeral.VolumeTemplate.Spec.ReclaimPolicy != storagev1alpha1.Retain {
+			_ = ctrl.SetControllerReference(machine, volume, r.Scheme())
+		}
 		res[volumeName] = volume
 	}
 	return res
 }
 
-func (r *MachineEphemeralVolumeReconciler) handleExistingVolume(ctx context.Context, log logr.Logger, machine *computev1alpha1.Machine, shouldManage bool, volume *storagev1alpha1.Volume) error {
-	if annotations.IsDefaultEphemeralControlledBy(volume, machine) {
+func (r *MachineEphemeralVolumeReconciler) handleExistingVolume(ctx context.Context, log logr.Logger, machine *computev1alpha1.Machine, shouldManage bool, volume *storagev1alpha1.Volume, ephemVolume *storagev1alpha1.Volume) error {
+	log.WithValues("Volume", klog.KObj(volume), "ShouldManage", shouldManage)
+	if annotations.IsDefaultEphemeralOrControlledBy(volume, machine) {
 		if shouldManage {
-			log.V(1).Info("Ephemeral volume is present and controlled by machine")
+			log.V(1).Info("Ephemeral volume is present")
+			if controllerutil.HasControllerReference(ephemVolume) && !controllerutil.HasControllerReference(volume) {
+				baseVol := volume.DeepCopy()
+				_ = ctrl.SetControllerReference(machine, volume, r.Scheme())
+				if err := r.Patch(ctx, volume, client.StrategicMergeFrom(baseVol, client.MergeFromWithOptimisticLock{})); err != nil {
+					return fmt.Errorf("error patching volume: %w", err)
+				}
+			}
 			return nil
 		}
 
@@ -123,7 +134,9 @@ func (r *MachineEphemeralVolumeReconciler) handleCreateVolume(ctx context.Contex
 	}
 
 	// Treat a retrieved volume as an existing we should manage.
-	return r.handleExistingVolume(ctx, log, machine, true, volume)
+	ephemVolumeByName := r.ephemeralMachineVolumeByName(machine)
+	ephemVolume, shouldManage := ephemVolumeByName[volume.Name]
+	return r.handleExistingVolume(ctx, log, machine, shouldManage, volume, ephemVolume)
 }
 
 func (r *MachineEphemeralVolumeReconciler) reconcile(ctx context.Context, log logr.Logger, machine *computev1alpha1.Machine) (ctrl.Result, error) {
@@ -143,10 +156,10 @@ func (r *MachineEphemeralVolumeReconciler) reconcile(ctx context.Context, log lo
 	)
 	for _, volume := range volumeList.Items {
 		volumeName := volume.Name
-		_, shouldManage := ephemVolumeByName[volumeName]
+		ephemVolume, shouldManage := ephemVolumeByName[volumeName]
 		delete(ephemVolumeByName, volumeName)
 		log := log.WithValues("Volume", klog.KObj(&volume), "ShouldManage", shouldManage)
-		if err := r.handleExistingVolume(ctx, log, machine, shouldManage, &volume); err != nil {
+		if err := r.handleExistingVolume(ctx, log, machine, shouldManage, &volume, ephemVolume); err != nil {
 			errs = append(errs, err)
 		}
 	}
diff --git a/internal/controllers/compute/machine_ephemeralvolume_controller_test.go b/internal/controllers/compute/machine_ephemeralvolume_controller_test.go
index bace486be..f977313f8 100644
--- a/internal/controllers/compute/machine_ephemeralvolume_controller_test.go
+++ b/internal/controllers/compute/machine_ephemeralvolume_controller_test.go
@@ -10,10 +10,12 @@ import (
 	. "github.com/ironcore-dev/ironcore/utils/testing"
 	. "github.com/onsi/ginkgo/v2"
 	. "github.com/onsi/gomega"
+	. "github.com/onsi/gomega/gstruct"
 	corev1 "k8s.io/api/core/v1"
 	apierrors "k8s.io/apimachinery/pkg/api/errors"
 	metav1 "k8s.io/apimachinery/pkg/apis/meta/v1"
 	ctrl "sigs.k8s.io/controller-runtime"
+	"sigs.k8s.io/controller-runtime/pkg/client"
 	. "sigs.k8s.io/controller-runtime/pkg/envtest/komega"
 )
 
@@ -52,7 +54,7 @@ var _ = Describe("MachineEphemeralVolumeController", func() {
 						VolumeSource: computev1alpha1.VolumeSource{
 							Ephemeral: &computev1alpha1.EphemeralVolumeSource{
 								VolumeTemplate: &storagev1alpha1.VolumeTemplateSpec{
-									Spec: storagev1alpha1.VolumeSpec{},
+									Spec: storagev1alpha1.EphemeralVolumeSpec{},
 								},
 							},
 						},
@@ -82,6 +84,13 @@ var _ = Describe("MachineEphemeralVolumeController", func() {
 			},
 		}
 		Eventually(Get(ephemVolume)).Should(Succeed())
+		By("Verifying OwnerRef is updated for ephemeral volume")
+		Expect(ephemVolume).Should(HaveField("ObjectMeta.OwnerReferences", ConsistOf(MatchFields(IgnoreExtras, Fields{
+			"APIVersion": Equal(computev1alpha1.SchemeGroupVersion.String()),
+			"Kind":       Equal("Machine"),
+			"Name":       Equal(machine.Name),
+		})),
+		))
 
 		By("asserting the referenced volume still exists")
 		Consistently(Get(refVolume)).Should(Succeed())
@@ -91,6 +100,16 @@ var _ = Describe("MachineEphemeralVolumeController", func() {
 	})
 
 	It("should not delete externally managed volumes for a machine", func(ctx SpecContext) {
+		By("creating an undesired controlled volume")
+		externalVolume := &storagev1alpha1.Volume{
+			ObjectMeta: metav1.ObjectMeta{
+				Namespace:    ns.Name,
+				GenerateName: "external-volume-",
+			},
+			Spec: storagev1alpha1.VolumeSpec{},
+		}
+		Expect(k8sClient.Create(ctx, externalVolume)).To(Succeed())
+
 		By("creating a machine")
 		machine := &computev1alpha1.Machine{
 			ObjectMeta: metav1.ObjectMeta{
@@ -99,22 +118,78 @@ var _ = Describe("MachineEphemeralVolumeController", func() {
 			},
 			Spec: computev1alpha1.MachineSpec{
 				MachineClassRef: corev1.LocalObjectReference{Name: machineClass.Name},
+				Volumes: []computev1alpha1.Volume{
+					{
+						Name: "primary",
+						VolumeSource: computev1alpha1.VolumeSource{
+							VolumeRef: &corev1.LocalObjectReference{Name: externalVolume.Name},
+						},
+					},
+				},
 			},
 		}
 		Expect(k8sClient.Create(ctx, machine)).To(Succeed())
 
-		By("creating an undesired controlled volume")
-		externalVolume := &storagev1alpha1.Volume{
+		By("asserting that the external volume is not being deleted")
+		Consistently(Object(externalVolume)).Should(HaveField("DeletionTimestamp", BeNil()))
+	})
+
+	It("verify ownerRef is set for ephemeral volumes based on reclaim policy", func(ctx SpecContext) {
+		By("creating a machine")
+		machine := &computev1alpha1.Machine{
 			ObjectMeta: metav1.ObjectMeta{
 				Namespace:    ns.Name,
-				GenerateName: "external-volume-",
+				GenerateName: "machine-",
+			},
+			Spec: computev1alpha1.MachineSpec{
+				MachineClassRef: corev1.LocalObjectReference{Name: machineClass.Name},
+				Volumes: []computev1alpha1.Volume{
+					{
+						Name: "ephem-volume",
+						VolumeSource: computev1alpha1.VolumeSource{
+							Ephemeral: &computev1alpha1.EphemeralVolumeSource{
+								VolumeTemplate: &storagev1alpha1.VolumeTemplateSpec{
+									Spec: storagev1alpha1.EphemeralVolumeSpec{
+										ReclaimPolicy: storagev1alpha1.Retain,
+									},
+								},
+							},
+						},
+					},
+				},
 			},
-			Spec: storagev1alpha1.VolumeSpec{},
 		}
-		_ = ctrl.SetControllerReference(machine, externalVolume, k8sClient.Scheme())
-		Expect(k8sClient.Create(ctx, externalVolume)).To(Succeed())
+		Expect(k8sClient.Create(ctx, machine)).To(Succeed())
+
+		By("waiting for the ephemeral volume to exist")
+		ephemVolume := &storagev1alpha1.Volume{
+			ObjectMeta: metav1.ObjectMeta{
+				Namespace: ns.Name,
+				Name:      computev1alpha1.MachineEphemeralVolumeName(machine.Name, "ephem-volume"),
+			},
+		}
+		Eventually(Get(ephemVolume)).Should(Succeed())
+		By("Verifying OwnerRef is not set for ephemeral volume when reclaim policy is retain")
+		Eventually(Object(ephemVolume)).Should(HaveField("ObjectMeta.OwnerReferences", BeEmpty()))
+
+		By("Updating reclaim policy to delete")
+		baseMachine := machine.DeepCopy()
+		machineVolumes := machine.Spec.Volumes
+		for _, machineVolume := range machineVolumes {
+			if machineVolume.Ephemeral == nil {
+				continue
+			}
+			machineVolume.Ephemeral.VolumeTemplate.Spec.ReclaimPolicy = storagev1alpha1.Delete
+		}
+		machine.Spec.Volumes = machineVolumes
+		Expect(k8sClient.Patch(ctx, machine, client.MergeFrom(baseMachine))).To(Succeed())
+		By("Verifying OwnerRef is updated for ephemeral volume")
+		Eventually(Object(ephemVolume)).Should(HaveField("ObjectMeta.OwnerReferences", ConsistOf(MatchFields(IgnoreExtras, Fields{
+			"APIVersion": Equal(computev1alpha1.SchemeGroupVersion.String()),
+			"Kind":       Equal("Machine"),
+			"Name":       Equal(machine.Name),
+		})),
+		))
 
-		By("asserting that the external volume is not being deleted")
-		Consistently(Object(externalVolume)).Should(HaveField("DeletionTimestamp", BeNil()))
 	})
 })
diff --git a/poollet/machinepoollet/controllers/machine_controller_test.go b/poollet/machinepoollet/controllers/machine_controller_test.go
index ce3439161..e2e56e643 100644
--- a/poollet/machinepoollet/controllers/machine_controller_test.go
+++ b/poollet/machinepoollet/controllers/machine_controller_test.go
@@ -421,7 +421,7 @@ var _ = Describe("MachineController", func() {
 						VolumeSource: computev1alpha1.VolumeSource{
 							Ephemeral: &computev1alpha1.EphemeralVolumeSource{
 								VolumeTemplate: &storagev1alpha1.VolumeTemplateSpec{
-									Spec: storagev1alpha1.VolumeSpec{},
+									Spec: storagev1alpha1.EphemeralVolumeSpec{},
 								},
 							},
 						},
diff --git a/utils/annotations/annotations.go b/utils/annotations/annotations.go
index b92eda05b..37a4bd3eb 100644
--- a/utils/annotations/annotations.go
+++ b/utils/annotations/annotations.go
@@ -36,6 +36,10 @@ func IsDefaultEphemeralControlledBy(o metav1.Object, owner metav1.Object) bool {
 	return metav1.IsControlledBy(o, owner) && IsEphemeralManagedBy(o, commonv1alpha1.DefaultEphemeralManager)
 }
 
+func IsDefaultEphemeralOrControlledBy(o metav1.Object, owner metav1.Object) bool {
+	return metav1.IsControlledBy(o, owner) || IsEphemeralManagedBy(o, commonv1alpha1.DefaultEphemeralManager)
+}
+
 func SetDefaultEphemeralManagedBy(o metav1.Object) {
 	metautils.SetAnnotation(o, commonv1alpha1.EphemeralManagedByAnnotation, commonv1alpha1.DefaultEphemeralManager)
 }