diff --git a/packages/apps/kubernetes/images/kubevirt-cloud-provider/patches/354.diff b/packages/apps/kubernetes/images/kubevirt-cloud-provider/patches/379.diff
similarity index 63%
rename from packages/apps/kubernetes/images/kubevirt-cloud-provider/patches/354.diff
rename to packages/apps/kubernetes/images/kubevirt-cloud-provider/patches/379.diff
index 3410ea939..ad1ec9c5b 100644
--- a/packages/apps/kubernetes/images/kubevirt-cloud-provider/patches/354.diff
+++ b/packages/apps/kubernetes/images/kubevirt-cloud-provider/patches/379.diff
@@ -1,5 +1,5 @@
 diff --git a/pkg/controller/kubevirteps/kubevirteps_controller.go b/pkg/controller/kubevirteps/kubevirteps_controller.go
-index 53388eb8e..28644236f 100644
+index 53388eb8e..873060251 100644
 --- a/pkg/controller/kubevirteps/kubevirteps_controller.go
 +++ b/pkg/controller/kubevirteps/kubevirteps_controller.go
 @@ -12,7 +12,6 @@ import (
@@ -10,12 +10,17 @@ index 53388eb8e..28644236f 100644
  	"k8s.io/apimachinery/pkg/runtime"
  	"k8s.io/apimachinery/pkg/runtime/schema"
  	utilruntime "k8s.io/apimachinery/pkg/util/runtime"
-@@ -669,35 +668,50 @@ func (c *Controller) getDesiredEndpoints(service *v1.Service, tenantSlices []*di
+@@ -666,38 +665,62 @@ func (c *Controller) getDesiredEndpoints(service *v1.Service, tenantSlices []*di
+ 		// for extracting the nodes it does not matter what type of address we are dealing with
+ 		// all nodes with an endpoint for a corresponding slice will be selected.
+ 		nodeSet := sets.Set[string]{}
++		hasEndpointsWithoutNodeName := false
  		for _, slice := range tenantSlices {
  			for _, endpoint := range slice.Endpoints {
  				// find all unique nodes that correspond to an endpoint in a tenant slice
 +				if endpoint.NodeName == nil {
 +					klog.Warningf("Skipping endpoint without NodeName in slice %s/%s", slice.Namespace, slice.Name)
++					hasEndpointsWithoutNodeName = true
 +					continue
 +				}
  				nodeSet.Insert(*endpoint.NodeName)
@@ -23,6 +28,13 @@ index 53388eb8e..28644236f 100644
  		}
  
 -		klog.Infof("Desired nodes for service %s in namespace %s: %v", service.Name, service.Namespace, sets.List(nodeSet))
++		// Fallback: if no endpoints with NodeName were found, but there are endpoints without NodeName,
++		// distribute traffic to all VMIs (similar to ExternalTrafficPolicy=Cluster behavior)
++		if nodeSet.Len() == 0 && hasEndpointsWithoutNodeName {
++			klog.Infof("No endpoints with NodeName found for service %s/%s, falling back to all VMIs", service.Namespace, service.Name)
++			return c.getAllVMIEndpoints()
++		}
++
 +		klog.Infof("Desired nodes for service %s/%s: %v", service.Namespace, service.Name, sets.List(nodeSet))
  
  		for _, node := range sets.List(nodeSet) {
@@ -68,7 +80,7 @@ index 53388eb8e..28644236f 100644
  					desiredEndpoints = append(desiredEndpoints, &discovery.Endpoint{
  						Addresses: []string{i.IP},
  						Conditions: discovery.EndpointConditions{
-@@ -705,9 +719,9 @@ func (c *Controller) getDesiredEndpoints(service *v1.Service, tenantSlices []*di
+@@ -705,9 +728,9 @@ func (c *Controller) getDesiredEndpoints(service *v1.Service, tenantSlices []*di
  							Serving:     &serving,
  							Terminating: &terminating,
  						},
@@ -80,6 +92,71 @@ index 53388eb8e..28644236f 100644
  				}
  			}
  		}
+@@ -716,6 +739,64 @@ func (c *Controller) getDesiredEndpoints(service *v1.Service, tenantSlices []*di
+ 	return desiredEndpoints
+ }
+ 
++// getAllVMIEndpoints returns endpoints for all VMIs in the infra namespace.
++// This is used as a fallback when tenant endpoints don't have NodeName specified,
++// similar to ExternalTrafficPolicy=Cluster behavior where traffic is distributed to all nodes.
++func (c *Controller) getAllVMIEndpoints() []*discovery.Endpoint {
++	var endpoints []*discovery.Endpoint
++
++	// List all VMIs in the infra namespace
++	vmiList, err := c.infraDynamic.
++		Resource(kubevirtv1.VirtualMachineInstanceGroupVersionKind.GroupVersion().WithResource("virtualmachineinstances")).
++		Namespace(c.infraNamespace).
++		List(context.TODO(), metav1.ListOptions{})
++	if err != nil {
++		klog.Errorf("Failed to list VMIs in namespace %q: %v", c.infraNamespace, err)
++		return endpoints
++	}
++
++	for _, obj := range vmiList.Items {
++		vmi := &kubevirtv1.VirtualMachineInstance{}
++		err = runtime.DefaultUnstructuredConverter.FromUnstructured(obj.Object, vmi)
++		if err != nil {
++			klog.Errorf("Failed to convert Unstructured to VirtualMachineInstance: %v", err)
++			continue
++		}
++
++		if vmi.Status.NodeName == "" {
++			klog.Warningf("Skipping VMI %s/%s: NodeName is empty", vmi.Namespace, vmi.Name)
++			continue
++		}
++		nodeNamePtr := &vmi.Status.NodeName
++
++		ready := vmi.Status.Phase == kubevirtv1.Running
++		serving := vmi.Status.Phase == kubevirtv1.Running
++		terminating := vmi.Status.Phase == kubevirtv1.Failed || vmi.Status.Phase == kubevirtv1.Succeeded
++
++		for _, i := range vmi.Status.Interfaces {
++			if i.Name == "default" {
++				if i.IP == "" {
++					klog.Warningf("VMI %s/%s interface %q has no IP, skipping", vmi.Namespace, vmi.Name, i.Name)
++					continue
++				}
++				endpoints = append(endpoints, &discovery.Endpoint{
++					Addresses: []string{i.IP},
++					Conditions: discovery.EndpointConditions{
++						Ready:       &ready,
++						Serving:     &serving,
++						Terminating: &terminating,
++					},
++					NodeName: nodeNamePtr,
++				})
++				break
++			}
++		}
++	}
++
++	klog.Infof("Fallback: created %d endpoints from all VMIs in namespace %s", len(endpoints), c.infraNamespace)
++	return endpoints
++}
++
+ func (c *Controller) ensureEndpointSliceLabels(slice *discovery.EndpointSlice, svc *v1.Service) (map[string]string, bool) {
+ 	labels := make(map[string]string)
+ 	labelsChanged := false
 diff --git a/pkg/controller/kubevirteps/kubevirteps_controller_test.go b/pkg/controller/kubevirteps/kubevirteps_controller_test.go
 index 1c97035b4..d205d0bed 100644
 --- a/pkg/controller/kubevirteps/kubevirteps_controller_test.go