diff --git a/.pipelines/.vsts-vhd-builder-release-windows.yaml b/.pipelines/.vsts-vhd-builder-release-windows.yaml
index d72f04596af..0e19b5205c2 100644
--- a/.pipelines/.vsts-vhd-builder-release-windows.yaml
+++ b/.pipelines/.vsts-vhd-builder-release-windows.yaml
@@ -39,6 +39,10 @@ parameters:
   displayName: VHD Debug
   type: boolean
   default: False
+- name: skipExtensionCheck
+  displayName: Skip Extension Check
+  type: boolean
+  default: False
 
 # Use variable group "ab-windows-ame-tenant" and link it to the pipeline "AKS Windows VHD Build"
 # Use variable group "ab-windows-ame-tenant" and link it to the pipeline "AKS Windows VHD Build - PR check-in gate"
@@ -54,3 +58,4 @@ stages:
       build2022containerdgen2:  ${{ parameters.build2022containerdgen2 }}
       build23H2:  ${{ parameters.build23H2 }}
       build23H2gen2:  ${{ parameters.build23H2gen2 }}
+      skipExtensionCheck: ${{ parameters.skipExtensionCheck }}
diff --git a/.pipelines/templates/.build-and-test-windows-vhd-template.yaml b/.pipelines/templates/.build-and-test-windows-vhd-template.yaml
index cfba4d44db9..069b1004bf2 100644
--- a/.pipelines/templates/.build-and-test-windows-vhd-template.yaml
+++ b/.pipelines/templates/.build-and-test-windows-vhd-template.yaml
@@ -30,6 +30,9 @@ parameters:
   - name: hyperVGeneration
     type: string
     displayName: V1 or V2.
+  - name: skipExtensionCheck
+    displayName: Skip Extension Check
+    type: boolean
     default: False
   - name: windowsBaseImageUrl
     displayName: Windows Base Image URL Override
@@ -58,6 +61,7 @@ stages:
               echo '##vso[task.setvariable variable=HYPERV_GENERATION]${{ parameters.hyperVGeneration }}'
               echo '##vso[task.setvariable variable=AZURE_VM_SIZE]${{ parameters.buildVmSize }}'
               echo '##vso[task.setvariable variable=WINDOWS_SKU]${{ parameters.windowsSku }}'
+              echo '##vso[task.setvariable variable=SKIP_EXTENSION_CHECK]${{ parameters.skipExtensionCheck }}'
               echo '##vso[task.setvariable variable=WINDOWS_BASE_IMAGE_URL]${{ parameters.windowsBaseImageUrl }}'
               echo '##vso[task.setvariable variable=WINDOWS_NANO_IMAGE_URL]${{ parameters.windowsNanoImageUrl }}'
               echo '##vso[task.setvariable variable=WINDOWS_CORE_IMAGE_URL]${{ parameters.windowsCoreImageUrl }}'
diff --git a/.pipelines/templates/.build-and-test-windows-vhds-template.yaml b/.pipelines/templates/.build-and-test-windows-vhds-template.yaml
index 93f07a1752d..305712bc23c 100644
--- a/.pipelines/templates/.build-and-test-windows-vhds-template.yaml
+++ b/.pipelines/templates/.build-and-test-windows-vhds-template.yaml
@@ -22,6 +22,10 @@ parameters:
     displayName: VHD Debug
     type: boolean
     default: False
+  - name: skipExtensionCheck
+    displayName: Skip Extension Check
+    type: boolean
+    default: False
 
 stages:
   - template:   ./.build-and-test-windows-vhd-template.yaml
@@ -34,6 +38,7 @@ stages:
       build: ${{ parameters.build2019containerd }}
       vhddebug: ${{ parameters.vhddebug }}
       dryrun: ${{ parameters.dryrun }}
+      skipExtensionCheck: ${{ parameters.skipExtensionCheck }}
       windowsBaseImageUrl: $(WINDOWS_2019_BASE_IMAGE_URL)
       windowsNanoImageUrl: $(WINDOWS_2019_NANO_IMAGE_URL)
       windowsCoreImageUrl: $(WINDOWS_2019_CORE_IMAGE_URL)
@@ -48,6 +53,7 @@ stages:
       build: ${{ parameters.build2022containerd }}
       vhddebug: ${{ parameters.vhddebug }}
       dryrun: ${{ parameters.dryrun }}
+      skipExtensionCheck: ${{ parameters.skipExtensionCheck }}
       windowsBaseImageUrl: $(WINDOWS_2022_BASE_IMAGE_URL)
       windowsNanoImageUrl: $(WINDOWS_2022_NANO_IMAGE_URL)
       windowsCoreImageUrl: $(WINDOWS_2022_CORE_IMAGE_URL)
@@ -62,6 +68,7 @@ stages:
       build: ${{ parameters.build2022containerdgen2 }}
       vhddebug: ${{ parameters.vhddebug }}
       dryrun: ${{ parameters.dryrun }}
+      skipExtensionCheck: ${{ parameters.skipExtensionCheck }}
       windowsBaseImageUrl: $(WINDOWS_23H2_GEN2_BASE_IMAGE_URL)
       windowsNanoImageUrl: $(WINDOWS_2022_NANO_IMAGE_URL)
       windowsCoreImageUrl: $(WINDOWS_2022_CORE_IMAGE_URL)
@@ -76,6 +83,7 @@ stages:
       build: ${{ parameters.build23H2 }}
       vhddebug: ${{ parameters.vhddebug }}
       dryrun: ${{ parameters.dryrun }}
+      skipExtensionCheck: ${{ parameters.skipExtensionCheck }}
       windowsBaseImageUrl: $(WINDOWS_23H2_BASE_IMAGE_URL)
       windowsNanoImageUrl: $(WINDOWS_2022_NANO_IMAGE_URL)
       windowsCoreImageUrl: $(WINDOWS_2022_CORE_IMAGE_URL)
@@ -90,6 +98,7 @@ stages:
       build: ${{ parameters.build23H2gen2 }}
       vhddebug: ${{ parameters.vhddebug }}
       dryrun: ${{ parameters.dryrun }}
+      skipExtensionCheck: ${{ parameters.skipExtensionCheck }}
       windowsBaseImageUrl: $(WINDOWS_23H2_GEN2_BASE_IMAGE_URL)
       windowsNanoImageUrl: $(WINDOWS_2022_NANO_IMAGE_URL)
       windowsCoreImageUrl: $(WINDOWS_2022_CORE_IMAGE_URL)
diff --git a/.pipelines/templates/.builder-release-template-windows.yaml b/.pipelines/templates/.builder-release-template-windows.yaml
index 2ff4150d408..31f43f53521 100644
--- a/.pipelines/templates/.builder-release-template-windows.yaml
+++ b/.pipelines/templates/.builder-release-template-windows.yaml
@@ -88,6 +88,7 @@ steps:
       -e BUILD_NUMBER=$(Build.BuildNumber) \
       -e WINDOWS_SKU=$(WINDOWS_SKU) \
       -e OS_TYPE="Windows" \
+      -e SKIP_EXTENSION_CHECK=$(SKIP_EXTENSION_CHECK) \
       -e MODE=$(MODE) \
       -e SIG_GALLERY_NAME=${SIG_GALLERY_NAME} \
       -e SIG_IMAGE_NAME=${SIG_IMAGE_NAME} \
@@ -121,6 +122,7 @@ steps:
       -e MANAGED_SIG_ID=${MANAGED_SIG_ID} \
       -e AZURE_LOCATION=${AZURE_BUILD_LOCATION} \
       -e WINDOWS_SKU=$(WINDOWS_SKU) \
+      -e SKIP_EXTENSION_CHECK=$(SKIP_EXTENSION_CHECK) \
       -e SKIPVALIDATEREOFFERUPDATE=${SKIPVALIDATEREOFFERUPDATE} \
       -e OS_TYPE="Windows" \
       -e MODE=$(MODE) \
@@ -177,6 +179,7 @@ steps:
         -e LOCATION="${AZURE_BUILD_LOCATION}" \
         -e OS_TYPE="Windows" \
         -e CLASSIC_BLOB="$(STORAGE_ACCT_BLOB_URL)" \
+        -e SKIP_EXTENSION_CHECK=$(SKIP_EXTENSION_CHECK) \
         -e SIG_IMAGE_NAME=${SIG_IMAGE_NAME} \
         -e SIG_GALLERY_NAME=${SIG_GALLERY_NAME} \
         -e SIG_IMAGE_VERSION=${SIG_IMAGE_VERSION} \
@@ -214,6 +217,7 @@ steps:
       -e IMAGE_NAME=${IMAGE_NAME} \
       -e VNET_RESOURCE_GROUP_NAME=${VNET_RESOURCE_GROUP_NAME} \
       -e TEST_VM_RESOURCE_GROUP_NAME=${TEST_VM_RESOURCE_GROUP_NAME} \
+      -e SKIP_EXTENSION_CHECK=$(SKIP_EXTENSION_CHECK) \
       -e WINDOWS_SKU=$(WINDOWS_SKU) \
       -e IMPORTED_IMAGE_NAME=${IMPORTED_IMAGE_NAME} \
       -e SIG_GALLERY_NAME=${SIG_GALLERY_NAME} \
@@ -244,6 +248,7 @@ steps:
       -e STORAGE_ACCT_BLOB_URL=${STORAGE_ACCT_BLOB_URL} \
       -e VHD_NAME=${VHD_NAME} \
       -e OS_NAME="Windows" \
+      -e SKIP_EXTENSION_CHECK=${SKIP_EXTENSION_CHECK} \
       -e SKU_NAME=${SKU_NAME} \
       -e OFFER_NAME="Windows" \
       -e MODE=$(MODE) \
diff --git a/vhdbuilder/packer/init-variables.sh b/vhdbuilder/packer/init-variables.sh
index ea1a4e7bd0e..2a19021163d 100755
--- a/vhdbuilder/packer/init-variables.sh
+++ b/vhdbuilder/packer/init-variables.sh
@@ -500,6 +500,7 @@ cat <<EOF > vhdbuilder/packer/settings.json
   "vm_size": "${AZURE_VM_SIZE}",
   "create_time": "${CREATE_TIME}",
   "img_version": "${IMG_VERSION}",
+  "SKIP_EXTENSION_CHECK": "${SKIP_EXTENSION_CHECK}",
   "vhd_build_timestamp": "${VHD_BUILD_TIMESTAMP}",
   "windows_image_publisher": "${WINDOWS_IMAGE_PUBLISHER}",
   "windows_image_offer": "${WINDOWS_IMAGE_OFFER}",
diff --git a/vhdbuilder/packer/windows/configure-windows-vhd.ps1 b/vhdbuilder/packer/windows/configure-windows-vhd.ps1
index b6172218eda..3ab87ad779d 100644
--- a/vhdbuilder/packer/windows/configure-windows-vhd.ps1
+++ b/vhdbuilder/packer/windows/configure-windows-vhd.ps1
@@ -798,13 +798,23 @@ function Log-ReofferUpdate
 
 function Test-AzureExtensions
 {
+    if ($env:SKIP_EXTENSION_CHECK -eq "true")
+    {
+        Write-Log "Skipping extension check because SKIP_EXTENSION_CHECK is set to true"
+        return
+    }
+
     # Expect the Windows VHD without any other extensions
     if (Test-Path "C:\Packages\Plugins")
     {
         $actualExtensions = (Get-ChildItem "C:\Packages\Plugins").Name
         if ($actualExtensions.Length -gt 0)
         {
-            Write-Log "Azure extensions are not expected. Details: $( $actualExtensions | Out-String )"
+            Write-Log "Azure extensions are not expected and skip extension checks was $env:SKIP_EXTENSION_CHECK. Details:"
+            foreach ($extension in $actualExtensions)
+            {
+                Write-Log "*  $extension"
+            }
             exit 1
         }
     }
diff --git a/vhdbuilder/packer/windows/windows-vhd-builder-sig.json b/vhdbuilder/packer/windows/windows-vhd-builder-sig.json
index 77ec2f4f618..5905872c959 100644
--- a/vhdbuilder/packer/windows/windows-vhd-builder-sig.json
+++ b/vhdbuilder/packer/windows/windows-vhd-builder-sig.json
@@ -125,7 +125,8 @@
             "elevated_password": "{{.WinRMPassword}}",
             "environment_vars": [
                 "ProvisioningPhase=3",
-                "WindowsSKU={{user `windows_sku`}}"
+                "WindowsSKU={{user `windows_sku`}}",
+                "SKIP_EXTENSION_CHECK={{ user `SKIP_EXTENSION_CHECK` }}"
             ],
             "type": "powershell",
             "scripts": [