diff --git a/hcloud/cloud.go b/hcloud/cloud.go
index 621ee7a1..0b0586ec 100644
--- a/hcloud/cloud.go
+++ b/hcloud/cloud.go
@@ -226,7 +226,14 @@ func (c *cloud) ProviderName() string {
 }
 
 func (c *cloud) HasClusterID() bool {
-	return false
+	// Hetzner does not consume the kubernetes/cloud-provider ClusterID for
+	// any tagging or reconciliation — see issue #1119, where this was
+	// confirmed by maintainers. Returning true lets operators omit the
+	// `--allow-untagged-cloud` flag entirely, which in turn silences the
+	// upstream deprecation warning ("Flag --allow-untagged-cloud has been
+	// deprecated, ... A cluster-id will be required on cloud instances.")
+	// emitted by k8s.io/cloud-provider when the flag is set.
+	return true
 }
 
 // serverIsAttachedToNetwork checks if the server where the master is running on is attached to the configured private network
diff --git a/hcloud/cloud_test.go b/hcloud/cloud_test.go
index 71634ee5..69c50e73 100644
--- a/hcloud/cloud_test.go
+++ b/hcloud/cloud_test.go
@@ -240,8 +240,8 @@ func TestCloud(t *testing.T) {
 	})
 
 	t.Run("HasClusterID", func(t *testing.T) {
-		if cloud.HasClusterID() {
-			t.Error("HasClusterID should be false")
+		if !cloud.HasClusterID() {
+			t.Error("HasClusterID should be true so operators can omit --allow-untagged-cloud (see issue #1119)")
 		}
 	})