diff --git a/pkg/provider/core.go b/pkg/provider/core.go
index 1cfacc0..90d438a 100644
--- a/pkg/provider/core.go
+++ b/pkg/provider/core.go
@@ -10,9 +10,7 @@ import (
 )
 
 const (
-	StackitProviderName      = "stackit"
-	StackitMachineLabel      = "kubernetes.io/machine"
-	StackitMachineClassLabel = "kubernetes.io/machineclass"
+	StackitProviderName = "stackit"
 )
 
 // GetVolumeIDs extracts volume IDs from PersistentVolume specs
diff --git a/pkg/provider/create.go b/pkg/provider/create.go
index 0c13e5a..e2c947a 100644
--- a/pkg/provider/create.go
+++ b/pkg/provider/create.go
@@ -114,8 +114,8 @@ func (p *Provider) createServerRequest(req *driver.CreateMachineRequest, provide
 	}
 
 	// Add MCM-specific labels for server identification and orphan VM detection
-	labels[StackitMachineLabel] = req.Machine.Name
-	labels[StackitMachineClassLabel] = req.MachineClass.Name
+	labels[p.GetMachineLabelKey()] = req.Machine.Name
+	labels[p.GetMachineClassLabelKey()] = req.MachineClass.Name
 
 	// Create server request
 	createReq := &client.CreateServerRequest{
@@ -212,7 +212,7 @@ func (p *Provider) createServerRequest(req *driver.CreateMachineRequest, provide
 func (p *Provider) getServerByName(ctx context.Context, projectID, region, serverName string) (*client.Server, error) {
 	// Check if the server got already created
 	labelSelector := map[string]string{
-		StackitMachineLabel: serverName,
+		p.GetMachineLabelKey(): serverName,
 	}
 	servers, err := p.client.ListServers(ctx, projectID, region, labelSelector)
 	if err != nil {
diff --git a/pkg/provider/list.go b/pkg/provider/list.go
index e96b84a..4b9f73e 100644
--- a/pkg/provider/list.go
+++ b/pkg/provider/list.go
@@ -42,7 +42,7 @@ func (p *Provider) ListMachines(ctx context.Context, req *driver.ListMachinesReq
 
 	// Call STACKIT API to list all servers
 	labelSelector := map[string]string{
-		StackitMachineClassLabel: req.MachineClass.Name,
+		p.GetMachineClassLabelKey(): req.MachineClass.Name,
 	}
 	servers, err := p.client.ListServers(ctx, projectID, providerSpec.Region, labelSelector)
 	if err != nil {
@@ -51,7 +51,7 @@ func (p *Provider) ListMachines(ctx context.Context, req *driver.ListMachinesReq
 	}
 
 	// Filter servers by MachineClass label
-	// We use the "kubernetes.io/machineclass" label to identify which servers belong to this MachineClass
+	// We use the label to identify which servers belong to this MachineClass
 	machineList := make(map[string]string)
 	for _, server := range servers {
 		// Generate ProviderID in format: stackit://<projectId>/<serverId>
@@ -59,7 +59,7 @@ func (p *Provider) ListMachines(ctx context.Context, req *driver.ListMachinesReq
 
 		// Get machine name from labels (fallback to server name if not found)
 		machineName := server.Name
-		if machineLabel, ok := server.Labels[StackitMachineLabel]; ok {
+		if machineLabel, ok := server.Labels[p.GetMachineLabelKey()]; ok {
 			machineName = machineLabel
 		}
 
diff --git a/pkg/provider/list_test.go b/pkg/provider/list_test.go
index 162d4c8..b77dba3 100644
--- a/pkg/provider/list_test.go
+++ b/pkg/provider/list_test.go
@@ -32,7 +32,8 @@ var _ = Describe("ListMachines", func() {
 		ctx = context.Background()
 		mockClient = &mock.StackitClient{}
 		provider = &Provider{
-			client: mockClient,
+			client:            mockClient,
+			customLabelDomain: "kubernetes.io",
 		}
 
 		// Create secret with projectId
@@ -142,4 +143,44 @@ var _ = Describe("ListMachines", func() {
 			Expect(statusErr.Code()).To(Equal(codes.Internal))
 		})
 	})
+
+	Context("with custom label domain", func() {
+		It("should use custom domain in labels", func() {
+			customProvider := &Provider{
+				client:            mockClient,
+				customLabelDomain: "custom.domain",
+			}
+
+			Expect(customProvider.GetMachineLabelKey()).To(Equal("custom.domain/machine"))
+			Expect(customProvider.GetMachineClassLabelKey()).To(Equal("custom.domain/machineclass"))
+		})
+
+		It("should list machines filtered by custom MachineClass label", func() {
+			customProvider := &Provider{
+				client:            mockClient,
+				customLabelDomain: "custom.domain",
+			}
+
+			mockClient.ListServersFunc = func(_ context.Context, _, _ string, selector map[string]string) ([]*client.Server, error) {
+				Expect(selector["custom.domain/machineclass"]).To(Equal("test-machine-class"))
+
+				return []*client.Server{
+					{
+						ID:   "server-1",
+						Name: "machine-1",
+						Labels: map[string]string{
+							"custom.domain/machineclass": "test-machine-class",
+							"custom.domain/machine":      "machine-1",
+						},
+					},
+				}, nil
+			}
+
+			resp, err := customProvider.ListMachines(ctx, req)
+
+			Expect(err).NotTo(HaveOccurred())
+			Expect(resp).NotTo(BeNil())
+			Expect(resp.MachineList).To(HaveLen(1))
+		})
+	})
 })
diff --git a/pkg/provider/provider.go b/pkg/provider/provider.go
index 684523c..c60ada5 100644
--- a/pkg/provider/provider.go
+++ b/pkg/provider/provider.go
@@ -2,6 +2,7 @@ package provider
 
 import (
 	"fmt"
+	"os"
 	"sync"
 	"time"
 
@@ -28,14 +29,23 @@ type Provider struct {
 	// intervals need to be configurable to speed up tests
 	pollingInterval time.Duration // Interval between polling attempts
 	pollingTimeout  time.Duration // Maximum time to wait during polling
+	// NOTE: only change this if you know what you are doing!
+	// changing this value without a migration plan could lead to orphaned cloud resources
+	customLabelDomain string
 }
 
 // NewProvider returns an empty provider object
 func NewProvider(i spi.SessionProviderInterface) driver.Driver {
+	customLabelDomain := os.Getenv("CUSTOM_LABEL_DOMAIN")
+	if customLabelDomain == "" {
+		customLabelDomain = "kubernetes.io"
+	}
+
 	return &Provider{
-		SPI:             i,
-		pollingInterval: 5 * time.Second,
-		pollingTimeout:  10 * time.Minute,
+		SPI:               i,
+		pollingInterval:   5 * time.Second,
+		pollingTimeout:    10 * time.Minute,
+		customLabelDomain: customLabelDomain,
 	}
 }
 
@@ -72,3 +82,13 @@ func (p *Provider) ensureClient(serviceAccountKey string) error {
 
 	return p.clientErr
 }
+
+// GetMachineLabelKey returns the fully-qualified machine label key using the configured label domain
+func (p *Provider) GetMachineLabelKey() string {
+	return fmt.Sprintf("%s/machine", p.customLabelDomain)
+}
+
+// GetMachineClassLabelKey returns the fully-qualified machine class label key using the configured label domain
+func (p *Provider) GetMachineClassLabelKey() string {
+	return fmt.Sprintf("%s/machineclass", p.customLabelDomain)
+}