diff --git a/plugin-azure-server/src/main/kotlin/jetbrains/buildServer/clouds/azure/arm/AzureCloudClientFactory.kt b/plugin-azure-server/src/main/kotlin/jetbrains/buildServer/clouds/azure/arm/AzureCloudClientFactory.kt
index 0320164a..d7b1cdac 100644
--- a/plugin-azure-server/src/main/kotlin/jetbrains/buildServer/clouds/azure/arm/AzureCloudClientFactory.kt
+++ b/plugin-azure-server/src/main/kotlin/jetbrains/buildServer/clouds/azure/arm/AzureCloudClientFactory.kt
@@ -103,7 +103,10 @@ class AzureCloudClientFactory(cloudRegistrar: CloudRegistrar,
                     param.getParameter(AzureConstants.ENABLE_SPOT_PRICE)?.toBoolean(),
                     param.getParameter(AzureConstants.SPOT_PRICE)?.toInt(),
                     param.getParameter(AzureConstants.ENABLE_ACCELERATED_NETWORKING)?.toBoolean(),
-                    param.getParameter(AzureConstants.DISABLE_TEMPLATE_MODIFICATION)?.toBoolean())
+                    param.getParameter(AzureConstants.DISABLE_TEMPLATE_MODIFICATION)?.toBoolean(),
+                    param.getParameter(AzureConstants.USER_ASSIGNED_IDENTITY) ?: "",
+                    param.getParameter(AzureConstants.ENABLE_SYSTEM_ASSIGNED_IDENTITY)?.toBoolean()
+            )
         }.apply {
             AzureUtils.setPasswords(AzureCloudImageDetails::class.java, params, this)
         }
diff --git a/plugin-azure-server/src/main/kotlin/jetbrains/buildServer/clouds/azure/arm/AzureCloudImageDetails.kt b/plugin-azure-server/src/main/kotlin/jetbrains/buildServer/clouds/azure/arm/AzureCloudImageDetails.kt
index b56810fa..0f2ebfec 100644
--- a/plugin-azure-server/src/main/kotlin/jetbrains/buildServer/clouds/azure/arm/AzureCloudImageDetails.kt
+++ b/plugin-azure-server/src/main/kotlin/jetbrains/buildServer/clouds/azure/arm/AzureCloudImageDetails.kt
@@ -88,7 +88,11 @@ class AzureCloudImageDetails(
         @SerializedName(AzureConstants.ENABLE_ACCELERATED_NETWORKING)
         val enableAcceleratedNetworking: Boolean?,
         @SerializedName(AzureConstants.DISABLE_TEMPLATE_MODIFICATION)
-        val disableTemplateModification: Boolean?
+        val disableTemplateModification: Boolean?,
+        @SerializedName(AzureConstants.USER_ASSIGNED_IDENTITY)
+        val userAssignedIdentity: String? = null,
+        @SerializedName(AzureConstants.ENABLE_SYSTEM_ASSIGNED_IDENTITY)
+        val enableSystemAssignedIdentity: Boolean?
 
 ) : CloudImagePasswordDetails {
 
diff --git a/plugin-azure-server/src/main/kotlin/jetbrains/buildServer/clouds/azure/arm/AzureConstants.kt b/plugin-azure-server/src/main/kotlin/jetbrains/buildServer/clouds/azure/arm/AzureConstants.kt
index 462cd5ab..a721106e 100644
--- a/plugin-azure-server/src/main/kotlin/jetbrains/buildServer/clouds/azure/arm/AzureConstants.kt
+++ b/plugin-azure-server/src/main/kotlin/jetbrains/buildServer/clouds/azure/arm/AzureConstants.kt
@@ -146,6 +146,12 @@ class AzureConstants {
     val disableTemplateModification: String
         get() = DISABLE_TEMPLATE_MODIFICATION
 
+    val userAssignedIdentity: String
+        get() = USER_ASSIGNED_IDENTITY
+    
+    val enableSystemAssignedIdentity: String
+        get() = ENABLE_SYSTEM_ASSIGNED_IDENTITY
+    
     companion object {
         const val CLOUD_CODE = "arm"
 
@@ -189,6 +195,8 @@ class AzureConstants {
         const val SPOT_PRICE = "spotPrice"
         const val ENABLE_ACCELERATED_NETWORKING = "enableAcceleratedNetworking"
         const val DISABLE_TEMPLATE_MODIFICATION = "disableTemplateModification"
+        const val USER_ASSIGNED_IDENTITY = "userAssignedIdentity"
+        const val ENABLE_SYSTEM_ASSIGNED_IDENTITY = "enableSystemAssignedIdentity"
 
         const val TAG_SERVER = "teamcity-server"
         const val TAG_PROFILE = "teamcity-profile"
diff --git a/plugin-azure-server/src/main/kotlin/jetbrains/buildServer/clouds/azure/arm/types/AzureImageHandler.kt b/plugin-azure-server/src/main/kotlin/jetbrains/buildServer/clouds/azure/arm/types/AzureImageHandler.kt
index 7c304015..dabf94b6 100644
--- a/plugin-azure-server/src/main/kotlin/jetbrains/buildServer/clouds/azure/arm/types/AzureImageHandler.kt
+++ b/plugin-azure-server/src/main/kotlin/jetbrains/buildServer/clouds/azure/arm/types/AzureImageHandler.kt
@@ -83,6 +83,8 @@ class AzureImageHandler(private val connector: AzureApiConnector) : AzureHandler
         if (details.enableAcceleratedNetworking == true) {
             builder.enableAcceleratedNerworking()
         }
+
+        builder.setupIdentity(details.userAssignedIdentity, details.enableSystemAssignedIdentity)
         builder
     }
 
diff --git a/plugin-azure-server/src/main/kotlin/jetbrains/buildServer/clouds/azure/arm/utils/ArmTemplateBuilder.kt b/plugin-azure-server/src/main/kotlin/jetbrains/buildServer/clouds/azure/arm/utils/ArmTemplateBuilder.kt
index 0ac75ea6..c0ebd348 100644
--- a/plugin-azure-server/src/main/kotlin/jetbrains/buildServer/clouds/azure/arm/utils/ArmTemplateBuilder.kt
+++ b/plugin-azure-server/src/main/kotlin/jetbrains/buildServer/clouds/azure/arm/utils/ArmTemplateBuilder.kt
@@ -384,6 +384,12 @@ class ArmTemplateBuilder(template: String, private val disableTemplateModificati
         }
     }
 
+    private fun getFirstResourceOfType(type: String): ObjectNode {
+        val resources = root["resources"] as ArrayNode
+        val groups = resources.filterIsInstance<ObjectNode>().first { it["type"].asText() == type }
+        return groups
+    }
+
     private fun getPropertiesOfResource(resourceName: String): ObjectNode {
         return getPropertiesOfResource("name", resourceName)
     }
@@ -428,6 +434,26 @@ class ArmTemplateBuilder(template: String, private val disableTemplateModificati
         return this
     }
 
+    fun setupIdentity(userAssignedIdentity: String?, enableSystemAssignedIdentity: Boolean?): ArmTemplateBuilder {
+        val resource = getFirstResourceOfType("Microsoft.Compute/virtualMachines")
+        
+        val hasUserAssigned = !userAssignedIdentity.isNullOrEmpty();
+        val hasSystemAssigned = enableSystemAssignedIdentity == true;
+
+        if (hasUserAssigned || hasSystemAssigned) {
+            val identity = resource.putObject("identity")
+
+            val fullType = if (hasUserAssigned && hasSystemAssigned) "SystemAssigned, UserAssigned" else if (hasSystemAssigned) "SystemAssigned" else "UserAssigned"
+            identity.put("type", fullType)
+
+            if (hasUserAssigned) {
+                identity.putObject("userAssignedIdentities").putObject(userAssignedIdentity)
+            }
+        }
+
+        return this
+    }
+
     companion object {
         private val LOG = Logger.getInstance(ArmTemplateBuilder::class.java.name)
         private val PRICE_DIVIDER = 100000F
diff --git a/plugin-azure-server/src/main/resources/buildServerResources/images.vm.js b/plugin-azure-server/src/main/resources/buildServerResources/images.vm.js
index 0dbf962f..8c2e40c3 100644
--- a/plugin-azure-server/src/main/resources/buildServerResources/images.vm.js
+++ b/plugin-azure-server/src/main/resources/buildServerResources/images.vm.js
@@ -95,6 +95,9 @@ function ArmImagesViewModel($, ko, dialog, config) {
   self.template = ko.observable('');
   self.disableTemplateModification = ko.observable(false);
 
+  self.userAssignedIdentity = ko.observable();
+  self.enableSystemAssignedIdentity = ko.observable(false);
+
   var requiredForDeployment = {
     required: {
       onlyIf: function () {
@@ -416,6 +419,8 @@ function ArmImagesViewModel($, ko, dialog, config) {
     .extend({min: 0.00001, max: 20000}),
     enableAcceleratedNetworking: ko.observable(false),
     disableTemplateModification: self.disableTemplateModification,
+    userAssignedIdentity: ko.observable(),
+    enableSystemAssignedIdentity: self.enableSystemAssignedIdentity
   });
 
   // Data from Azure APIs
@@ -671,6 +676,8 @@ function ArmImagesViewModel($, ko, dialog, config) {
       image.enableSpotPrice = JSON.parse(image.enableSpotPrice || "false");
       image.enableAcceleratedNetworking = JSON.parse(image.enableAcceleratedNetworking || "false");
       image.disableTemplateModification = JSON.parse(image.disableTemplateModification || "false");
+      image.userAssignedIdentity = image.userAssignedIdentity;
+      image.enableSystemAssignedIdentity = JSON.parse(image.enableSystemAssignedIdentity || "false");
     });
 
     self.images(images);
@@ -714,7 +721,9 @@ function ArmImagesViewModel($, ko, dialog, config) {
       customTags: "",
       spotVm: false,
       enableSpotPrice: false,
-      spotPrice: spotPriceDefault * priceDivider
+      spotPrice: spotPriceDefault * priceDivider,
+      userAssignedIdentity: "",
+      systemAssignedIdentity: false,
     };
 
     // Pre-fill collections while loading resources
@@ -788,6 +797,8 @@ function ArmImagesViewModel($, ko, dialog, config) {
     model.spotPrice(image.spotPrice != null ? image.spotPrice/priceDivider : undefined);
     model.enableAcceleratedNetworking(image.enableAcceleratedNetworking);
     model.disableTemplateModification(image.disableTemplateModification);
+    model.userAssignedIdentity(image.userAssignedIdentity);
+    model.enableSystemAssignedIdentity(image.enableSystemAssignedIdentity);
 
     model.registryPassword("");
     model.vmPassword("");
@@ -847,7 +858,9 @@ function ArmImagesViewModel($, ko, dialog, config) {
       enableSpotPrice: model.enableSpotPrice(),
       spotPrice: model.spotPrice() != null ? Math.trunc(parseFloat(model.spotPrice())*priceDivider) : undefined,
       enableAcceleratedNetworking: model.enableAcceleratedNetworking(),
-      disableTemplateModification: model.disableTemplateModification()
+      disableTemplateModification: model.disableTemplateModification(),
+      userAssignedIdentity: model.userAssignedIdentity(),
+      enableSystemAssignedIdentity: model.enableSystemAssignedIdentity(),
     };
 
     var originalImage = self.originalImage;
diff --git a/plugin-azure-server/src/main/resources/buildServerResources/settings.jsp b/plugin-azure-server/src/main/resources/buildServerResources/settings.jsp
index ef2d92bd..cab4f6d7 100644
--- a/plugin-azure-server/src/main/resources/buildServerResources/settings.jsp
+++ b/plugin-azure-server/src/main/resources/buildServerResources/settings.jsp
@@ -493,6 +493,27 @@
                     <span class="error option-error" data-bind="validationMessage: image().vmPassword"></span>
                 </td>
             </tr>
+            <tr data-bind="if: image().imageType() != 'Template' && image().imageType() != 'Container'">
+                <th><label for="${cons.userAssignedIdentity}">User managed identity:</label></th>
+                <td>
+                    <input type="text" id="${cons.userAssignedIdentity}" class="longField ignoreModified"
+                           data-bind="textInput: image().userAssignedIdentity"/>
+                    <span class="smallNote">Supply the ARM resource id for the identity according to the <a
+                        href="https://learn.microsoft.com/en-us/azure/templates/microsoft.compute/virtualmachines?pivots=deployment-language-bicep#virtualmachineidentity"
+                        target="_blank"
+                        rel="noopener noreferrer">virtual machine identity schema.</a></span></span>
+                    <span class="error option-error" data-bind="validationMessage: image().userAssignedIdentity"></span>
+                </td>
+            </tr>
+            <tr data-bind="if: image().imageType() != 'Template' && image().imageType() != 'Container'">
+                <th class="noBorder"><label for="${cons.enableSystemAssignedIdentity}">Use System Assigned Identity:</label></th>
+                <td>
+                    <input type="checkbox" name="${cons.enableSystemAssignedIdentity}" data-bind="checked: image().enableSystemAssignedIdentity"/>
+                    <span class="smallNote">
+                        Create a system-assigned identity.
+                    </span>
+                </td>
+            </tr>
             <tr data-bind="if: image().imageType() == 'Template'">
                 <th class="noBorder"><label for="${cons.template}">ARM Template: <l:star/></label></th>
                 <td>
diff --git a/plugin-azure-server/src/test/kotlin/jetbrains.buildServer.clouds/utils/ArmTemplateBuilderTest.kt b/plugin-azure-server/src/test/kotlin/jetbrains.buildServer.clouds/utils/ArmTemplateBuilderTest.kt
index 5ab9e94a..08deddf8 100644
--- a/plugin-azure-server/src/test/kotlin/jetbrains.buildServer.clouds/utils/ArmTemplateBuilderTest.kt
+++ b/plugin-azure-server/src/test/kotlin/jetbrains.buildServer.clouds/utils/ArmTemplateBuilderTest.kt
@@ -210,4 +210,73 @@ class ArmTemplateBuilderTest {
         Assert.assertEquals(builder.toString(),
                 "{\"resources\":[{\"type\":\"Microsoft.Network/networkInterfaces\",\"name\":\"myName\",\"properties\":{\"enableAcceleratedNetworking\":true}}]}")
     }
+
+    fun testSetupSystemIdentity() {
+        val builder = ArmTemplateBuilder("""{"resources": [
+        {
+          "type": "Microsoft.Compute/virtualMachines",
+          "name": "myName",
+          "properties": {
+          }
+        }
+      ]}""").setupIdentity(null, true)
+
+      Assert.assertEquals(builder.toString(),
+        "{\"resources\":[{\"type\":\"Microsoft.Compute/virtualMachines\",\"name\":\"myName\",\"properties\":{},\"identity\":{\"type\":\"SystemAssigned\"}}]}")
+    }
+
+    fun testSetupSystemAssignedIdentity() {
+      val builder = ArmTemplateBuilder("""{"resources": [
+      {
+        "type": "Microsoft.Compute/virtualMachines",
+        "name": "myName",
+        "properties": {
+        }
+      }
+    ]}""").setupIdentity(null, true)
+
+    Assert.assertEquals(builder.toString(),
+      "{\"resources\":[{\"type\":\"Microsoft.Compute/virtualMachines\",\"name\":\"myName\",\"properties\":{},\"identity\":{\"type\":\"SystemAssigned\"}}]}")
+  }
+
+    fun testSetupUserAssignedIdentity() {
+      val builder = ArmTemplateBuilder("""{"resources": [
+      {
+        "type": "Microsoft.Compute/virtualMachines",
+        "name": "myName",
+        "properties": {
+        }
+      }
+    ]}""").setupIdentity("someIdentity", false)
+
+    Assert.assertEquals(builder.toString(),
+    "{\"resources\":[{\"type\":\"Microsoft.Compute/virtualMachines\",\"name\":\"myName\",\"properties\":{},\"identity\":{\"type\":\"UserAssigned\",\"userAssignedIdentities\":{\"someIdentity\":{}}}}]}")  }
+
+    fun testSetupSystemAndUserAssignedIdentity() {
+      val builder = ArmTemplateBuilder("""{"resources": [
+      {
+        "type": "Microsoft.Compute/virtualMachines",
+        "name": "myName",
+        "properties": {
+        }
+      }
+    ]}""").setupIdentity("someIdentity", true)
+
+    Assert.assertEquals(builder.toString(),
+      "{\"resources\":[{\"type\":\"Microsoft.Compute/virtualMachines\",\"name\":\"myName\",\"properties\":{},\"identity\":{\"type\":\"SystemAssigned, UserAssigned\",\"userAssignedIdentities\":{\"someIdentity\":{}}}}]}")
+  }
+
+  fun testSetupIdentityWithNoIdentities() {
+    val builder = ArmTemplateBuilder("""{"resources": [
+    {
+      "type": "Microsoft.Compute/virtualMachines",
+      "name": "myName",
+      "properties": {
+      }
+    }
+  ]}""").setupIdentity("", false)
+
+  Assert.assertEquals(builder.toString(),
+    "{\"resources\":[{\"type\":\"Microsoft.Compute/virtualMachines\",\"name\":\"myName\",\"properties\":{}}]}")
+  }
 }
diff --git a/plugin-azure-server/src/test/kotlin/jetbrains/buildServer/clouds/azure/arm/AzureCloudImageTest.kt b/plugin-azure-server/src/test/kotlin/jetbrains/buildServer/clouds/azure/arm/AzureCloudImageTest.kt
index 3ca0f0c1..3cd2b6ab 100644
--- a/plugin-azure-server/src/test/kotlin/jetbrains/buildServer/clouds/azure/arm/AzureCloudImageTest.kt
+++ b/plugin-azure-server/src/test/kotlin/jetbrains/buildServer/clouds/azure/arm/AzureCloudImageTest.kt
@@ -74,7 +74,9 @@ class AzureCloudImageTest : MockObjectTestCase() {
             enableSpotPrice = null,
             spotPrice = null,
             enableAcceleratedNetworking = null,
-            disableTemplateModification = null
+            disableTemplateModification = null,
+            userAssignedIdentity = null,
+            enableSystemAssignedIdentity = null
         )
 
         myJob = SupervisorJob()