diff --git a/pkg/controller/cluster/client.go b/pkg/controller/cluster/client.go
index b0952958..785ad285 100644
--- a/pkg/controller/cluster/client.go
+++ b/pkg/controller/cluster/client.go
@@ -13,7 +13,7 @@ import (
 	"github.com/rancher/k3k/pkg/controller"
 )
 
-// newVirtualClient
+// newVirtualClient creates a new Client that can be used to interact with the virtual cluster
 func newVirtualClient(ctx context.Context, hostClient ctrlruntimeclient.Client, clusterName, clusterNamespace string) (ctrlruntimeclient.Client, error) {
 	var clusterKubeConfig v1.Secret
 
diff --git a/pkg/controller/cluster/service.go b/pkg/controller/cluster/service.go
index a1867f5f..1bf1b771 100644
--- a/pkg/controller/cluster/service.go
+++ b/pkg/controller/cluster/service.go
@@ -41,12 +41,22 @@ func (r *ServiceReconciler) Reconcile(ctx context.Context, req reconcile.Request
 	log := ctrl.LoggerFrom(ctx)
 	log.Info("ensuring service status to virtual cluster")
 
-	var hostService, virtService v1.Service
-
+	var hostService v1.Service
 	if err := r.HostClient.Get(ctx, req.NamespacedName, &hostService); err != nil {
 		return reconcile.Result{}, ctrlruntimeclient.IgnoreNotFound(err)
 	}
 
+	// Some services are owned by the cluster but don't have the annotations set (i.e. the kubelet svc)
+	// They don't exists in the virtual cluster, so we can skip them
+
+	virtualServiceName, virtualServiceNameFound := hostService.Annotations[translate.ResourceNameAnnotation]
+	virtualServiceNamespace, virtualServiceNamespaceFound := hostService.Annotations[translate.ResourceNamespaceAnnotation]
+
+	if !virtualServiceNameFound || !virtualServiceNamespaceFound {
+		log.V(1).Info(fmt.Sprintf("service %s/%s does not have virtual service annotations, skipping", hostService.Namespace, hostService.Name))
+		return reconcile.Result{}, nil
+	}
+
 	// get cluster from the object
 	cluster := clusterNamespacedName(&hostService)
 
@@ -60,17 +70,18 @@ func (r *ServiceReconciler) Reconcile(ctx context.Context, req reconcile.Request
 	}
 
 	virtualServiceKey := types.NamespacedName{
-		Name:      hostService.Annotations[translate.ResourceNameAnnotation],
-		Namespace: hostService.Annotations[translate.ResourceNamespaceAnnotation],
+		Name:      virtualServiceName,
+		Namespace: virtualServiceNamespace,
 	}
 
-	if err := virtualClient.Get(ctx, virtualServiceKey, &virtService); err != nil {
-		return reconcile.Result{}, fmt.Errorf("failed to get virt service: %v", err)
+	var virtualService v1.Service
+	if err := virtualClient.Get(ctx, virtualServiceKey, &virtualService); err != nil {
+		return reconcile.Result{}, fmt.Errorf("failed to get virtual service: %v", err)
 	}
 
-	if !equality.Semantic.DeepEqual(virtService.Status.LoadBalancer, hostService.Status.LoadBalancer) {
-		virtService.Status.LoadBalancer = hostService.Status.LoadBalancer
-		if err := virtualClient.Status().Update(ctx, &virtService); err != nil {
+	if !equality.Semantic.DeepEqual(virtualService.Status.LoadBalancer, hostService.Status.LoadBalancer) {
+		virtualService.Status.LoadBalancer = hostService.Status.LoadBalancer
+		if err := virtualClient.Status().Update(ctx, &virtualService); err != nil {
 			return reconcile.Result{}, err
 		}
 	}