diff --git a/hypershift-operator/controllers/hostedcluster/hostedcluster_controller.go b/hypershift-operator/controllers/hostedcluster/hostedcluster_controller.go
index a74b2bfcdb..992cd8b539 100644
--- a/hypershift-operator/controllers/hostedcluster/hostedcluster_controller.go
+++ b/hypershift-operator/controllers/hostedcluster/hostedcluster_controller.go
@@ -1787,7 +1787,7 @@ func (r *HostedClusterReconciler) reconcile(ctx context.Context, req ctrl.Reques
 	}
 
 	// Reconcile the network policies
-	if err = r.reconcileNetworkPolicies(ctx, createOrUpdate, hcluster, hcp, releaseImageVersion, controlPlaneOperatorAppliesManagementKASNetworkPolicyLabel); err != nil {
+	if err = r.reconcileNetworkPolicies(ctx, log, createOrUpdate, hcluster, hcp, releaseImageVersion, controlPlaneOperatorAppliesManagementKASNetworkPolicyLabel); err != nil {
 		return ctrl.Result{}, fmt.Errorf("failed to reconcile network policies: %w", err)
 	}
 
diff --git a/hypershift-operator/controllers/hostedcluster/network_policies.go b/hypershift-operator/controllers/hostedcluster/network_policies.go
index 3485542d52..4105082d4f 100644
--- a/hypershift-operator/controllers/hostedcluster/network_policies.go
+++ b/hypershift-operator/controllers/hostedcluster/network_policies.go
@@ -7,6 +7,7 @@ import (
 	"net/netip"
 
 	"github.com/blang/semver"
+	"github.com/go-logr/logr"
 	configv1 "github.com/openshift/api/config/v1"
 	hyperv1 "github.com/openshift/hypershift/api/hypershift/v1beta1"
 	"github.com/openshift/hypershift/hypershift-operator/controllers/manifests"
@@ -28,7 +29,7 @@ const (
 	NeedMetricsServerAccessLabel = "hypershift.openshift.io/need-metrics-server-access"
 )
 
-func (r *HostedClusterReconciler) reconcileNetworkPolicies(ctx context.Context, createOrUpdate upsert.CreateOrUpdateFN, hcluster *hyperv1.HostedCluster, hcp *hyperv1.HostedControlPlane, version semver.Version, controlPlaneOperatorAppliesManagementKASNetworkPolicyLabel bool) error {
+func (r *HostedClusterReconciler) reconcileNetworkPolicies(ctx context.Context, log logr.Logger, createOrUpdate upsert.CreateOrUpdateFN, hcluster *hyperv1.HostedCluster, hcp *hyperv1.HostedControlPlane, version semver.Version, controlPlaneOperatorAppliesManagementKASNetworkPolicyLabel bool) error {
 	controlPlaneNamespaceName := manifests.HostedControlPlaneNamespace(hcluster.Namespace, hcluster.Name)
 
 	// Reconcile openshift-ingress Network Policy
@@ -123,7 +124,7 @@ func (r *HostedClusterReconciler) reconcileNetworkPolicies(ctx context.Context,
 			// network policy is being set on centralized infra only, not on external infra
 			policy = networkpolicy.VirtLauncherNetworkPolicy(controlPlaneNamespaceName)
 			if _, err := createOrUpdate(ctx, r.Client, policy, func() error {
-				return reconcileVirtLauncherNetworkPolicy(policy, hcluster, managementClusterNetwork)
+				return reconcileVirtLauncherNetworkPolicy(log, policy, hcluster, managementClusterNetwork)
 			}); err != nil {
 				return fmt.Errorf("failed to reconcile virt launcher policy: %w", err)
 			}
@@ -512,7 +513,7 @@ func addToBlockedNetworks(network string, blockedIPv4Networks []string, blockedI
 	return blockedIPv4Networks, blockedIPv6Networks
 }
 
-func reconcileVirtLauncherNetworkPolicy(policy *networkingv1.NetworkPolicy, hcluster *hyperv1.HostedCluster, managementClusterNetwork *configv1.Network) error {
+func reconcileVirtLauncherNetworkPolicy(log logr.Logger, policy *networkingv1.NetworkPolicy, hcluster *hyperv1.HostedCluster, managementClusterNetwork *configv1.Network) error {
 	protocolTCP := corev1.ProtocolTCP
 	protocolUDP := corev1.ProtocolUDP
 	protocolSCTP := corev1.ProtocolSCTP
@@ -641,7 +642,8 @@ func reconcileVirtLauncherNetworkPolicy(policy *networkingv1.NetworkPolicy, hclu
 		} else if utilsnet.IsIPv6String(nodeAddress) {
 			prefixLength = 128
 		} else {
-			return fmt.Errorf("could not determine if %s is an IPv4 or IPv6 address", nodeAddress)
+			log.Info(fmt.Sprintf("could not determine if %s is an IPv4 or IPv6 address, skipping virt-launcher network policy for service %q", nodeAddress, hcService.Type))
+			continue
 		}
 		parsedNodeAddress, err := netip.ParseAddr(nodeAddress)
 		if err != nil {