diff --git a/internal/app/machined/pkg/runtime/v1alpha1/platform/nocloud/metadata.go b/internal/app/machined/pkg/runtime/v1alpha1/platform/nocloud/metadata.go
index 86edf786a9..66b8166ec9 100644
--- a/internal/app/machined/pkg/runtime/v1alpha1/platform/nocloud/metadata.go
+++ b/internal/app/machined/pkg/runtime/v1alpha1/platform/nocloud/metadata.go
@@ -108,12 +108,13 @@ type Bonds struct {
 
 // MetadataConfig holds meta info.
 type MetadataConfig struct {
-	Hostname     string `yaml:"hostname,omitempty"`
-	InstanceID   string `yaml:"instance-id,omitempty"`
-	InstanceType string `yaml:"instance-type,omitempty"`
-	ProviderID   string `yaml:"provider-id,omitempty"`
-	Region       string `yaml:"region,omitempty"`
-	Zone         string `yaml:"zone,omitempty"`
+	Hostname      string `yaml:"hostname,omitempty"`
+	LocalHostname string `yaml:"local-hostname,omitempty"`
+	InstanceID    string `yaml:"instance-id,omitempty"`
+	InstanceType  string `yaml:"instance-type,omitempty"`
+	ProviderID    string `yaml:"provider-id,omitempty"`
+	Region        string `yaml:"region,omitempty"`
+	Zone          string `yaml:"zone,omitempty"`
 }
 
 func (n *Nocloud) configFromNetwork(ctx context.Context, metaBaseURL string, r state.State) (metaConfig []byte, networkConfig []byte, machineConfig []byte, err error) {
@@ -257,6 +258,15 @@ func (n *Nocloud) acquireConfig(ctx context.Context, r state.State) (metadataCon
 		metadata.Hostname = hostname
 	}
 
+	// Some providers may provide the hostname via user-data instead of meta-data (e.g. Proxmox VE)
+	// As long as the user doesn't use it for machine config, it can still be used to obtain the hostname
+	if metadata.Hostname == "" && metadata.LocalHostname == "" && machineConfigDl != nil {
+		fallbackMetadata := &MetadataConfig{}
+		_ = yaml.Unmarshal(machineConfigDl, fallbackMetadata) //nolint:errcheck
+		metadata.Hostname = fallbackMetadata.Hostname
+		metadata.LocalHostname = fallbackMetadata.LocalHostname
+	}
+
 	return metadataConfigDl, metadataNetworkConfigDl, machineConfigDl, metadata, err
 }
 
diff --git a/internal/app/machined/pkg/runtime/v1alpha1/platform/nocloud/nocloud.go b/internal/app/machined/pkg/runtime/v1alpha1/platform/nocloud/nocloud.go
index a67012f413..03f6610c45 100644
--- a/internal/app/machined/pkg/runtime/v1alpha1/platform/nocloud/nocloud.go
+++ b/internal/app/machined/pkg/runtime/v1alpha1/platform/nocloud/nocloud.go
@@ -33,12 +33,17 @@ func (n *Nocloud) Name() string {
 func (n *Nocloud) ParseMetadata(unmarshalledNetworkConfig *NetworkConfig, st state.State, metadata *MetadataConfig) (*runtime.PlatformNetworkConfig, error) {
 	networkConfig := &runtime.PlatformNetworkConfig{}
 
-	if metadata.Hostname != "" {
+	hostname := metadata.Hostname
+	if hostname == "" {
+		hostname = metadata.LocalHostname
+	}
+
+	if hostname != "" {
 		hostnameSpec := network.HostnameSpecSpec{
 			ConfigLayer: network.ConfigPlatform,
 		}
 
-		if err := hostnameSpec.ParseFQDN(metadata.Hostname); err != nil {
+		if err := hostnameSpec.ParseFQDN(hostname); err != nil {
 			return nil, err
 		}
 
@@ -60,7 +65,7 @@ func (n *Nocloud) ParseMetadata(unmarshalledNetworkConfig *NetworkConfig, st sta
 
 	networkConfig.Metadata = &runtimeres.PlatformMetadataSpec{
 		Platform:     n.Name(),
-		Hostname:     metadata.Hostname,
+		Hostname:     hostname,
 		InstanceID:   metadata.InstanceID,
 		InstanceType: metadata.InstanceType,
 		ProviderID:   metadata.ProviderID,
diff --git a/internal/app/machined/pkg/runtime/v1alpha1/platform/nocloud/nocloud_test.go b/internal/app/machined/pkg/runtime/v1alpha1/platform/nocloud/nocloud_test.go
index 079d59381b..5f7097ace5 100644
--- a/internal/app/machined/pkg/runtime/v1alpha1/platform/nocloud/nocloud_test.go
+++ b/internal/app/machined/pkg/runtime/v1alpha1/platform/nocloud/nocloud_test.go
@@ -74,16 +74,25 @@ func TestParseMetadata(t *testing.T) {
 				Hostname:   "talos.fqdn",
 				InstanceID: "0",
 			}
+			mc2 := nocloud.MetadataConfig{
+				LocalHostname: "talos.fqdn",
+				InstanceID:    "0",
+			}
 
 			networkConfig, err := n.ParseMetadata(&m, st, &mc)
 			require.NoError(t, err)
+			networkConfig2, err := n.ParseMetadata(&m, st, &mc2)
+			require.NoError(t, err)
 
 			marshaled, err := yaml.Marshal(networkConfig)
 			require.NoError(t, err)
+			marshaled2, err := yaml.Marshal(networkConfig2)
+			require.NoError(t, err)
 
 			fmt.Print(string(marshaled))
 
 			assert.Equal(t, tt.expected, string(marshaled))
+			assert.Equal(t, tt.expected, string(marshaled2))
 		})
 	}
 }