diff --git a/packages/apps/virtual-machine/templates/vm.yaml b/packages/apps/virtual-machine/templates/vm.yaml
index f9010748..1ef8a3ea 100644
--- a/packages/apps/virtual-machine/templates/vm.yaml
+++ b/packages/apps/virtual-machine/templates/vm.yaml
@@ -13,6 +13,7 @@ metadata:
     {{- include "virtual-machine.labels" . | nindent 4 }}
 spec:
   running: {{ .Values.running | default "true" }}
+
   {{- with .Values.instanceType }}
   instancetype:
     kind: VirtualMachineClusterInstancetype
@@ -23,6 +24,7 @@ spec:
     kind: VirtualMachineClusterPreference
     name: {{ . }}
   {{- end }}
+
   dataVolumeTemplates:
   - metadata:
       name: {{ include "virtual-machine.fullname" . }}
@@ -77,21 +79,25 @@ spec:
             deviceName: {{ $gpu.name }}
           {{- end }}
           {{- end }}
+
           disks:
           - disk:
               bus: scsi
             name: systemdisk
-          {{- if or .Values.sshKeys .Values.cloudInit }}
+          {{- if .Values.sshKeys }}
           - disk:
               bus: virtio
             name: cloudinitdisk
           {{- end }}
+
           interfaces:
           - name: default
             bridge: {}
+
         machine:
           type: ""
-      {{- with .Values.sshKeys }}
+
+      {{- if .Values.sshKeys }}
       accessCredentials:
       - sshPublicKey:
           source:
@@ -101,23 +107,37 @@ spec:
             # keys will be injected into metadata part of cloud-init disk
             noCloud: {}
       {{- end }}
+
       terminationGracePeriodSeconds: 30
+
       volumes:
-      - name: systemdisk
-        dataVolume:
-          name: {{ include "virtual-machine.fullname" . }}
-      {{- if or .Values.sshKeys .Values.cloudInit }}
-      - name: cloudinitdisk
-        cloudInitNoCloud:
-        {{- if .Values.cloudInit }}
-          secretRef:
-            name: {{ include "virtual-machine.fullname" . }}-cloud-init
+        - name: systemdisk
+          dataVolume:
+            name: {{ include "virtual-machine.fullname" . }}
+
+        {{- if and .Values.sshKeys .Values.cloudInit }}
+        - name: cloudinitdisk
+          cloudInitNoCloud:
+            secretRef:
+              name: {{ include "virtual-machine.fullname" . }}-cloud-init
+        {{- else if .Values.sshKeys }}
+        - name: cloudinitdisk
+          cloudInitNoCloud:
+            userData: |
+              {{ printf "%s" "#cloud-config" }}
+              ssh_authorized_keys:
+                {{- range .Values.sshKeys }}
+                - {{ . }}
+                {{- end }}
+              chpasswd:
+                expire: false
         {{- else }}
-          userData: |
-            #cloud-config
-            final_message: Cloud-init user-data was left blank intentionally.
+        - name: cloudinitdisk
+          cloudInitNoCloud:
+            userData: |
+              {{ printf "%s" "#cloud-config" }}
         {{- end }}
-      {{- end }}
+
       networks:
       - name: default
         pod: {}