diff --git a/docs/cloud-config-reference.md b/docs/cloud-config-reference.md
index 91f324d4d..bbd794d9a 100644
--- a/docs/cloud-config-reference.md
+++ b/docs/cloud-config-reference.md
@@ -93,6 +93,9 @@ the preferred option is to build a [derivative image](custom-images.md) and not
   These stages are executed at end before exiting the command and running a cleanup process. At this stage the image is already deployed
   and locked in a read-only subvolume or filesystem. Partitions are still mounted at this stage.
 
+:::note
+Note installation hooks are not applied as part of the [MachineRegistartion.config.cloud-config](machineregistration-reference.md#config-cloud-config). In order to provide installation hooks they can be included as part of the [SeedImage.cloud-config](seedimage-reference.md#seedimagespec-reference), as they need to be present in the installation media.
+:::
 
 ## Configuration syntax
 
diff --git a/docs/machineregistration-reference.md b/docs/machineregistration-reference.md
index cf9a5300f..ca16c7d18 100644
--- a/docs/machineregistration-reference.md
+++ b/docs/machineregistration-reference.md
@@ -49,6 +49,9 @@ spec:
 Contains the cloud-configuration to be injected in the node.  
 Both yip and cloud-init syntax are supported. See the [Cloud Config Reference](cloud-config-reference.md) for full information.
 
+The cloud-configuration provided in this field is not evaluated during the installation, it is
+just added to the node so it gets evaluated on reboot.
+
 #### config.network
 
 Contains the Declarative Networking configuration, supporting integration with [CAPI IPAM Providers](https://github.com/kubernetes-sigs/cluster-api/blob/main/docs/proposals/20220125-ipam-integration.md#ipam-provider).