diff --git a/ec2_asg_wait_for_lifecycle_hooks.yaml b/ec2_asg_wait_for_lifecycle_hooks.yaml
new file mode 100644
index 00000000000..23fed95dce4
--- /dev/null
+++ b/ec2_asg_wait_for_lifecycle_hooks.yaml
@@ -0,0 +1,2 @@
+bugfixes:
+- ec2_asg - wait for lifecycle hooks to complete (https://github.com/ansible/ansible/issues/37281)
diff --git a/lib/ansible/modules/cloud/amazon/ec2_asg.py b/lib/ansible/modules/cloud/amazon/ec2_asg.py
index 6184083fd79..38bfc3df3cf 100644
--- a/lib/ansible/modules/cloud/amazon/ec2_asg.py
+++ b/lib/ansible/modules/cloud/amazon/ec2_asg.py
@@ -1344,7 +1344,7 @@ def wait_for_term_inst(connection, term_instances):
             lifecycle = instance_facts[i]['lifecycle_state']
             health = instance_facts[i]['health_status']
             module.debug("Instance %s has state of %s,%s" % (i, lifecycle, health))
-            if lifecycle == 'Terminating' or health == 'Unhealthy':
+            if lifecycle.startswith('Terminating') or health == 'Unhealthy':
                 count += 1
         time.sleep(10)