diff --git a/bosh-stemcell/lib/bosh/stemcell/infrastructure.rb b/bosh-stemcell/lib/bosh/stemcell/infrastructure.rb
index b7c0c97b5c..f94eb323ca 100644
--- a/bosh-stemcell/lib/bosh/stemcell/infrastructure.rb
+++ b/bosh-stemcell/lib/bosh/stemcell/infrastructure.rb
@@ -188,7 +188,14 @@ def initialize
       end
 
       def additional_cloud_properties
-        {'root_device_name' => '/dev/sda1'}
+        {
+          'root_device_name' => '/dev/sda1',
+          'generation' => 'gen2',
+          'accelerated_networking' => true,
+          'hibernation' => true,
+          'disk_controller_types' => ['scsi', 'nvme'],
+          'security_type' => 'TrustedLaunchSupported'
+        }
       end
     end
 
diff --git a/bosh-stemcell/spec/assets/dpkg-list-ubuntu-azure-additions.txt b/bosh-stemcell/spec/assets/dpkg-list-ubuntu-azure-additions.txt
index d146a75161..39fbb77d61 100644
--- a/bosh-stemcell/spec/assets/dpkg-list-ubuntu-azure-additions.txt
+++ b/bosh-stemcell/spec/assets/dpkg-list-ubuntu-azure-additions.txt
@@ -1,3 +1,4 @@
+azure-vm-utils
 cloud-init
 netplan.io
 python-is-python3
diff --git a/bosh-stemcell/spec/bosh/stemcell/infrastructure_spec.rb b/bosh-stemcell/spec/bosh/stemcell/infrastructure_spec.rb
index f661728449..dbb49d7632 100644
--- a/bosh-stemcell/spec/bosh/stemcell/infrastructure_spec.rb
+++ b/bosh-stemcell/spec/bosh/stemcell/infrastructure_spec.rb
@@ -162,7 +162,14 @@ module Bosh::Stemcell
     it { should eq Infrastructure.for('azure') }
 
     it 'has azure specific additional cloud properties' do
-      expect(subject.additional_cloud_properties).to eq({'root_device_name' => '/dev/sda1'})
+      expect(subject.additional_cloud_properties).to eq({
+        'root_device_name' => '/dev/sda1',
+        'generation' => 'gen2',
+        'accelerated_networking' => true,
+        'hibernation' => true,
+        'disk_controller_types' => ['scsi', 'nvme'],
+        'security_type' => 'TrustedLaunchSupported'
+      })
     end
   end
 
diff --git a/stemcell_builder/stages/image_install_grub/apply.sh b/stemcell_builder/stages/image_install_grub/apply.sh
index d085dbf2c0..f65b430295 100755
--- a/stemcell_builder/stages/image_install_grub/apply.sh
+++ b/stemcell_builder/stages/image_install_grub/apply.sh
@@ -73,6 +73,11 @@ case "${stemcell_infrastructure}" in
 aws)
   grub_suffix="nvme_core.io_timeout=4294967295"
   ;;
+azure)
+  # For NVMe storage, Microsoft recommends setting nvme_core.io_timeout to 240 seconds
+  # to avoid IO timeouts and let Azure handle disk failures or interruptions.
+  grub_suffix="nvme_core.io_timeout=240"
+  ;;
 cloudstack)
   grub_suffix="console=hvc0"
   ;;
diff --git a/stemcell_builder/stages/system_azure_init/apply.sh b/stemcell_builder/stages/system_azure_init/apply.sh
index 53c518bdfd..ac0f6f9a09 100755
--- a/stemcell_builder/stages/system_azure_init/apply.sh
+++ b/stemcell_builder/stages/system_azure_init/apply.sh
@@ -5,7 +5,7 @@ set -e
 base_dir=$(readlink -nf $(dirname $0)/../..)
 source $base_dir/lib/prelude_apply.bash
 
-packages="python3 python3-pyasn1 python3-setuptools python3-distro python-is-python3 cloud-init"
+packages="python3 python3-pyasn1 python3-setuptools python3-distro python-is-python3 cloud-init azure-vm-utils"
 pkg_mgr install $packages
 
 wala_release=2.9.1.1