diff --git a/.gitignore b/.gitignore
index 41d804ecf..98b1337af 100644
--- a/.gitignore
+++ b/.gitignore
@@ -5,6 +5,7 @@
 *.so
 *.dylib
 bin
+cluster-api-provider-gcp
 
 # Test binary, build with `go test -c`
 *.test
diff --git a/cloud/scope/machine.go b/cloud/scope/machine.go
index 0705421ba..2cdfa1fa1 100644
--- a/cloud/scope/machine.go
+++ b/cloud/scope/machine.go
@@ -254,7 +254,7 @@ func (m *MachineScope) InstanceAdditionalDiskSpec() []*compute.AttachedDisk {
 				DiskType:   path.Join("zones", m.Zone(), "diskTypes", string(*disk.DeviceType)),
 			},
 		}
-		if additionalDisk.InitializeParams.DiskType == string(infrav1.LocalSsdDiskType) {
+		if strings.HasSuffix(additionalDisk.InitializeParams.DiskType, string(infrav1.LocalSsdDiskType)) {
 			additionalDisk.Type = "SCRATCH" // Default is PERSISTENT.
 			// Override the Disk size
 			additionalDisk.InitializeParams.DiskSizeGb = 375
diff --git a/cloud/scope/machine_test.go b/cloud/scope/machine_test.go
new file mode 100644
index 000000000..333a6605d
--- /dev/null
+++ b/cloud/scope/machine_test.go
@@ -0,0 +1,74 @@
+package scope
+
+import (
+	"testing"
+
+	"github.com/stretchr/testify/assert"
+	infrav1 "sigs.k8s.io/cluster-api-provider-gcp/api/v1beta1"
+	clusterv1 "sigs.k8s.io/cluster-api/api/v1beta1"
+	"sigs.k8s.io/controller-runtime/pkg/client/fake"
+)
+
+// This test verifies that if a user selects "local-ssd"
+// as a disk type then the MachineScope correctly detects it as such.
+func TestMachineLocalSSDDiskType(t *testing.T) {
+	// Register the GCPMachine and GCPMachineList in a schema.
+	schema, err := infrav1.SchemeBuilder.Register(&infrav1.GCPMachine{}, &infrav1.GCPMachineList{}).Build()
+
+	// Make sure no errors were triggered.
+	assert.Nil(t, err)
+
+	// Create a controller fake client.
+	// It's best to use envtest but in this case we are not really using the client
+	// just passing it as parameter to the NewMachineScope to test the dik functionality.
+	testClient := fake.NewClientBuilder().WithScheme(schema).Build()
+
+	// New test machine, needed as parameter.
+	failureDomain := "example.com"
+	testMachine := clusterv1.Machine{
+		Spec: clusterv1.MachineSpec{
+			FailureDomain: &failureDomain,
+		},
+	}
+
+	// GCPMachine for mocking the disks.
+	// Set the disk to local-ssd.
+	diskType := infrav1.LocalSsdDiskType
+	diskSize := int64(100)
+
+	testGCPMachine := infrav1.GCPMachine{
+		Spec: infrav1.GCPMachineSpec{
+			AdditionalDisks: []infrav1.AttachedDiskSpec{
+				{
+					DeviceType: &diskType,
+					Size:       &diskSize,
+				},
+			},
+		},
+	}
+
+	// Finally put together the parameters.
+	testScopeParams := MachineScopeParams{
+		Client:     testClient,
+		Machine:    &testMachine,
+		GCPMachine: &testGCPMachine,
+	}
+
+	// Create the scope
+	testMachineScope, err := NewMachineScope(testScopeParams)
+
+	// Make sure the machine scope is create correctly.
+	assert.Nil(t, err)
+	assert.NotNil(t, testMachineScope)
+
+	// Now make sure the local-ssd disk type is detected as SCRATCH.
+	diskSpec := testMachineScope.InstanceAdditionalDiskSpec()
+	assert.NotEmpty(t, diskSpec)
+
+	// Get the local-ssd disk now.
+	localSSDTest := diskSpec[0]
+	assert.True(t, localSSDTest.AutoDelete)
+	assert.Equal(t, "SCRATCH", localSSDTest.Type)
+	assert.Equal(t, "NVME", localSSDTest.Interface)
+	assert.Equal(t, int64(375), localSSDTest.InitializeParams.DiskSizeGb)
+}
diff --git a/go.mod b/go.mod
index 039cf17be..4b94ae180 100644
--- a/go.mod
+++ b/go.mod
@@ -9,7 +9,8 @@ require (
 	github.com/onsi/gomega v1.24.1
 	github.com/pkg/errors v0.9.1
 	github.com/spf13/pflag v1.0.5
-	golang.org/x/mod v0.6.0-dev.0.20220419223038-86c51ed26bb4
+	github.com/stretchr/testify v1.8.1
+	golang.org/x/mod v0.7.0
 	golang.org/x/net v0.4.0
 	google.golang.org/api v0.104.0
 	k8s.io/api v0.25.0
@@ -88,6 +89,7 @@ require (
 	github.com/opencontainers/image-spec v1.0.2 // indirect
 	github.com/pelletier/go-toml v1.9.5 // indirect
 	github.com/pelletier/go-toml/v2 v2.0.5 // indirect
+	github.com/pmezard/go-difflib v1.0.0 // indirect
 	github.com/prometheus/client_golang v1.13.0 // indirect
 	github.com/prometheus/client_model v0.2.0 // indirect
 	github.com/prometheus/common v0.37.0 // indirect
diff --git a/go.sum b/go.sum
index 39d520665..e52e4997f 100644
--- a/go.sum
+++ b/go.sum
@@ -623,8 +623,8 @@ golang.org/x/mod v0.3.0/go.mod h1:s0Qsj1ACt9ePp/hMypM3fl4fZqREWJwdYDEqhRiZZUA=
 golang.org/x/mod v0.4.0/go.mod h1:s0Qsj1ACt9ePp/hMypM3fl4fZqREWJwdYDEqhRiZZUA=
 golang.org/x/mod v0.4.1/go.mod h1:s0Qsj1ACt9ePp/hMypM3fl4fZqREWJwdYDEqhRiZZUA=
 golang.org/x/mod v0.4.2/go.mod h1:s0Qsj1ACt9ePp/hMypM3fl4fZqREWJwdYDEqhRiZZUA=
-golang.org/x/mod v0.6.0-dev.0.20220419223038-86c51ed26bb4 h1:6zppjxzCulZykYSLyVDYbneBfbaBIQPYMevg0bEwv2s=
-golang.org/x/mod v0.6.0-dev.0.20220419223038-86c51ed26bb4/go.mod h1:jJ57K6gSWd91VN4djpZkiMVwK6gcyfeH4XE8wZrZaV4=
+golang.org/x/mod v0.7.0 h1:LapD9S96VoQRhi/GrNTqeBJFrUjs5UHCAtTlgwA5oZA=
+golang.org/x/mod v0.7.0/go.mod h1:iBbtSCu2XBx23ZKBPSOrRkjjQPZFPuis4dIYUhu/chs=
 golang.org/x/net v0.0.0-20180724234803-3673e40ba225/go.mod h1:mL1N/T3taQHkDXs73rZJwtUhF3w3ftmwwsq0BUmARs4=
 golang.org/x/net v0.0.0-20180826012351-8a410e7b638d/go.mod h1:mL1N/T3taQHkDXs73rZJwtUhF3w3ftmwwsq0BUmARs4=
 golang.org/x/net v0.0.0-20181023162649-9b4f9f5ad519/go.mod h1:mL1N/T3taQHkDXs73rZJwtUhF3w3ftmwwsq0BUmARs4=