diff --git a/lisa/sut_orchestrator/azure/arm_template.json b/lisa/sut_orchestrator/azure/arm_template.json
index 20bea4efdd..d8184188a3 100644
--- a/lisa/sut_orchestrator/azure/arm_template.json
+++ b/lisa/sut_orchestrator/azure/arm_template.json
@@ -92,6 +92,13 @@
             "metadata": {
                 "description": "data disk array."
             }
+        },
+        "is_ultradisk": {
+            "type": "bool",
+            "defaultValue": false,
+            "metadata": {
+                "description": "whether to use ultra disk"
+            }
         }
     },
     "variables": {
@@ -129,10 +136,10 @@
                 "count": "[variables('node_count')]"
             },
             "properties": {
-                "publicIPAllocationMethod": "Static"
+                "publicIPAllocationMethod": "[if(parameters('is_ultradisk'), 'Static', 'Dynamic')]"
             },
             "sku": {
-                "name": "Standard"
+                "name": "[if(parameters('is_ultradisk'), 'Standard', 'Basic')]"
             },
             "zones": "[if(variables('use_availability_zones'), variables('availability_zones'), json('null'))]"
         },
diff --git a/lisa/sut_orchestrator/azure/common.py b/lisa/sut_orchestrator/azure/common.py
index dcc4a14ec0..c2b162e2be 100644
--- a/lisa/sut_orchestrator/azure/common.py
+++ b/lisa/sut_orchestrator/azure/common.py
@@ -651,6 +651,7 @@ class AzureArmParameter:
     virtual_network_resource_group: str = ""
     virtual_network_name: str = AZURE_VIRTUAL_NETWORK_NAME
     subnet_prefix: str = AZURE_SUBNET_PREFIX
+    is_ultradisk: bool = False
 
     def __post_init__(self, *args: Any, **kwargs: Any) -> None:
         add_secret(self.admin_username, PATTERN_HEADTAIL)
diff --git a/lisa/sut_orchestrator/azure/platform_.py b/lisa/sut_orchestrator/azure/platform_.py
index 0a5feee636..3acc1571ee 100644
--- a/lisa/sut_orchestrator/azure/platform_.py
+++ b/lisa/sut_orchestrator/azure/platform_.py
@@ -1208,6 +1208,14 @@ def _create_deployment_parameters(
             node_arm_parameters = self._create_node_arm_parameters(node.capability, log)
             nodes_parameters.append(node_arm_parameters)
 
+            arm_parameters.is_ultradisk = any(
+                [
+                    x
+                    for x in nodes_parameters
+                    if x.data_disk_type
+                    == features.get_azure_disk_type(schema.DiskType.UltraSSDLRS)
+                ]
+            )
             # Set data disk array
             arm_parameters.data_disks = self._generate_data_disks(
                 node, node_arm_parameters