diff --git a/pkg/providers/vsphere/network/nsxt.go b/pkg/providers/vsphere/network/nsxt.go
index 2fb03f832..a63d67c86 100644
--- a/pkg/providers/vsphere/network/nsxt.go
+++ b/pkg/providers/vsphere/network/nsxt.go
@@ -181,13 +181,15 @@ func VPCPostRestoreBackingFixup(
 			if ethCard.ExternalId != result.ExternalID {
 				vmCtx.Logger.Info(
 					"Updating network device ExternalID for restored/failed-over VM",
+					"name", result.Name,
 					"macAddress", result.MacAddress,
 					"oldExternalID", ethCard.ExternalId,
-					"newExternalID", result.ExternalID)
+					"newExternalID", result.ExternalID,
+					"oldSubnetID", ethCard.SubnetId)
 
-				// Update the device's ExternalID.
 				ethCard.ExternalId = result.ExternalID
 				ethCard.Backing = result.Device.GetVirtualDevice().Backing
+				ethCard.SubnetId = ""
 
 				deviceChanges = append(deviceChanges, &vimtypes.VirtualDeviceConfigSpec{
 					Device:    dev,
diff --git a/pkg/providers/vsphere/network/nsxt_test.go b/pkg/providers/vsphere/network/nsxt_test.go
index df8593966..f6d890b4f 100644
--- a/pkg/providers/vsphere/network/nsxt_test.go
+++ b/pkg/providers/vsphere/network/nsxt_test.go
@@ -23,8 +23,9 @@ import (
 var _ = Describe("VPCPostRestoreBackingFixup", Label(testlabels.VCSim), func() {
 
 	const (
-		macAddress1 = "01:02:03:04:05:06"
-		macAddress2 = "01:02:03:04:05:07"
+		macAddress1   = "01:02:03:04:05:06"
+		macAddress2   = "01:02:03:04:05:07"
+		dummySubnetID = "/projects/project-quality/vpcs/foo"
 	)
 
 	var (
@@ -71,6 +72,7 @@ var _ = Describe("VPCPostRestoreBackingFixup", Label(testlabels.VCSim), func() {
 			dev.Backing = backing
 			dev.MacAddress = macAddress1
 			dev.ExternalId = builder.GetVPCTLogicalSwitchUUID(idx)
+			dev.SubnetId = dummySubnetID
 			return dev
 		}
 
@@ -132,5 +134,6 @@ var _ = Describe("VPCPostRestoreBackingFixup", Label(testlabels.VCSim), func() {
 		Expect(ok).To(BeTrue())
 		Expect(ethCard.ExternalId).To(Equal(dev1Restored.ExternalId))
 		Expect(ethCard.MacAddress).To(Equal(dev1Restored.MacAddress))
+		Expect(ethCard.SubnetId).To(BeEmpty())
 	})
 })