diff --git a/pkg/agent/bakerapi_test.go b/pkg/agent/bakerapi_test.go
index 41420a212f9..63e58c90bf4 100644
--- a/pkg/agent/bakerapi_test.go
+++ b/pkg/agent/bakerapi_test.go
@@ -333,6 +333,7 @@ var _ = Describe("AgentBaker API implementation tests", func() {
 				datamodel.AKSAzureLinuxV3Arm64Gen2,
 				datamodel.AKSAzureLinuxV2Gen2TL,
 				datamodel.AKSAzureLinuxV3Arm64Gen2FIPS,
+				datamodel.AKSAzureLinuxV3CVMGen2,
 			}
 
 			allLinuxDistros = append(allLinuxDistros, ubuntuDistros...)
diff --git a/pkg/agent/datamodel/sig_config.go b/pkg/agent/datamodel/sig_config.go
index 381909e1f91..667808da007 100644
--- a/pkg/agent/datamodel/sig_config.go
+++ b/pkg/agent/datamodel/sig_config.go
@@ -170,6 +170,7 @@ var AvailableContainerdDistros = []Distro{
 	AKSUbuntuMinimalContainerd2204Gen2,
 	AKSUbuntuContainerd2404,
 	AKSUbuntuContainerd2404Gen2,
+	AKSAzureLinuxV3CVMGen2,
 }
 
 //nolint:gochecknoglobals
@@ -215,6 +216,7 @@ var AvailableGen2Distros = []Distro{
 	AKSAzureLinuxV2Arm64Gen2,
 	AKSAzureLinuxV3Arm64Gen2,
 	AKSAzureLinuxV3Arm64Gen2FIPS,
+	AKSAzureLinuxV3CVMGen2,
 }
 
 //nolint:gochecknoglobals
@@ -242,6 +244,7 @@ var AvailableAzureLinuxDistros = []Distro{
 	AKSAzureLinuxV2Gen2TL,
 	AKSAzureLinuxV3Gen2TL,
 	AKSCBLMarinerV2KataGen2TL,
+	AKSAzureLinuxV3CVMGen2,
 }
 
 //nolint:gochecknoglobals
@@ -260,6 +263,7 @@ var AvailableAzureLinuxCgroupV2Distros = []Distro{
 	AKSAzureLinuxV3Arm64Gen2FIPS,
 	AKSAzureLinuxV2Gen2TL,
 	AKSAzureLinuxV3Gen2TL,
+	AKSAzureLinuxV3CVMGen2,
 }
 
 // IsContainerdSKU returns true if distro type is containerd-enabled.
@@ -825,6 +829,13 @@ var (
 		Version:       Windows23H2SIGImageVersion,
 	}
 
+	SIGAzureLinuxV3CVMGen2ImageConfigTemplate = SigImageConfigTemplate{
+		ResourceGroup: AKSAzureLinuxResourceGroup,
+		Gallery:       AKSAzureLinuxGalleryName,
+		Definition:    "V3gen2CVM",
+		Version:       LinuxSIGImageVersion,
+	}
+
 	SIGWindows2025ImageConfigTemplate = SigImageConfigTemplate{
 		ResourceGroup: AKSWindowsResourceGroup,
 		Gallery:       AKSWindowsGalleryName,
@@ -926,6 +937,7 @@ func getSigAzureLinuxImageConfigMapWithOpts(opts ...SigImageConfigOpt) map[Distr
 		AKSAzureLinuxV3Arm64Gen2FIPS: SIGAzureLinuxV3Arm64Gen2FIPSImageConfigTemplate.WithOptions(opts...),
 		AKSAzureLinuxV2Gen2TL:        SIGAzureLinuxV2TLImageConfigTemplate.WithOptions(opts...),
 		AKSAzureLinuxV3Gen2TL:        SIGAzureLinuxV3TLImageConfigTemplate.WithOptions(opts...),
+		AKSAzureLinuxV3CVMGen2:       SIGAzureLinuxV3CVMGen2ImageConfigTemplate.WithOptions(opts...),
 	}
 }
 
diff --git a/pkg/agent/datamodel/sig_config_test.go b/pkg/agent/datamodel/sig_config_test.go
index e84cb748fe2..fa9baf5ee8b 100644
--- a/pkg/agent/datamodel/sig_config_test.go
+++ b/pkg/agent/datamodel/sig_config_test.go
@@ -20,6 +20,7 @@ var _ = Describe("GetMaintainedLinuxSIGImageConfigMap", func() {
 			AKSUbuntuContainerd2204Gen2:      SIGUbuntuContainerd2204Gen2ImageConfigTemplate.WithOptions(),
 			AKSUbuntuContainerd2204TLGen2:    SIGUbuntuContainerd2204TLGen2ImageConfigTemplate.WithOptions(),
 			AKSUbuntuContainerd2004CVMGen2:   SIGUbuntuContainerd2004CVMGen2ImageConfigTemplate.WithOptions(),
+			AKSAzureLinuxV3CVMGen2:           SIGAzureLinuxV3CVMGen2ImageConfigTemplate.WithOptions(),
 			AKSUbuntuContainerd2404:          SIGUbuntuContainerd2404ImageConfigTemplate.WithOptions(),
 			AKSUbuntuContainerd2404Gen2:      SIGUbuntuContainerd2404Gen2ImageConfigTemplate.WithOptions(),
 			AKSCBLMarinerV2:                  SIGCBLMarinerV2Gen1ImageConfigTemplate.WithOptions(),
@@ -107,7 +108,7 @@ var _ = Describe("GetSIGAzureCloudSpecConfig", func() {
 		Expect(mariner.Definition).To(Equal("V1"))
 		Expect(mariner.Version).To(Equal(FrozenCBLMarinerV1SIGImageVersionForDeprecation))
 
-		Expect(len(sigConfig.SigAzureLinuxImageConfig)).To(Equal(14))
+		Expect(len(sigConfig.SigAzureLinuxImageConfig)).To(Equal(15))
 
 		azurelinuxV2 := sigConfig.SigAzureLinuxImageConfig[AKSAzureLinuxV2]
 		Expect(azurelinuxV2.ResourceGroup).To(Equal("resourcegroup"))
@@ -365,6 +366,12 @@ var _ = Describe("GetSIGAzureCloudSpecConfig", func() {
 		Expect(aksUbuntu2404Gen2Containerd.Definition).To(Equal("2404gen2containerd"))
 		Expect(aksUbuntu2404Gen2Containerd.Version).To(Equal(LinuxSIGImageVersion))
 
+		azurelinuxV3CVMGen2 := sigConfig.SigAzureLinuxImageConfig[AKSAzureLinuxV3CVMGen2]
+		Expect(azurelinuxV3CVMGen2.ResourceGroup).To(Equal("resourcegroup"))
+		Expect(azurelinuxV3CVMGen2.Gallery).To(Equal("aksazurelinux"))
+		Expect(azurelinuxV3CVMGen2.Definition).To(Equal("V3gen2CVM"))
+		Expect(azurelinuxV3CVMGen2.Version).To(Equal(LinuxSIGImageVersion))
+
 		aksUbuntu2404CVMGen2Containerd := sigConfig.SigUbuntuImageConfig[AKSUbuntuContainerd2404CVMGen2]
 		Expect(aksUbuntu2404CVMGen2Containerd.ResourceGroup).To(Equal("resourcegroup"))
 		Expect(aksUbuntu2404CVMGen2Containerd.Gallery).To(Equal("aksubuntu"))
diff --git a/pkg/agent/datamodel/types.go b/pkg/agent/datamodel/types.go
index 98c1d237620..5fb554736af 100644
--- a/pkg/agent/datamodel/types.go
+++ b/pkg/agent/datamodel/types.go
@@ -199,6 +199,7 @@ const (
 	AKSUbuntuEgressContainerd2204Gen2   Distro = "aks-ubuntu-egress-containerd-22.04-gen2"
 	AKSUbuntuContainerd2404             Distro = "aks-ubuntu-containerd-24.04"
 	AKSUbuntuContainerd2404Gen2         Distro = "aks-ubuntu-containerd-24.04-gen2"
+	AKSAzureLinuxV3CVMGen2              Distro = "aks-azurelinux-v3-cvm-gen2"
 
 	RHEL              Distro = "rhel"
 	CoreOS            Distro = "coreos"
@@ -277,6 +278,7 @@ var AKSDistrosAvailableOnVHD = []Distro{
 	AKSUbuntuContainerd2204,
 	AKSUbuntuContainerd2204Gen2,
 	AKSUbuntuContainerd2004CVMGen2,
+	AKSAzureLinuxV3CVMGen2,
 	AKSUbuntuArm64Containerd2204Gen2,
 	AKSUbuntuArm64Containerd2404Gen2,
 	AKSUbuntuContainerd2404CVMGen2,
diff --git a/pkg/agent/datamodel/types_test.go b/pkg/agent/datamodel/types_test.go
index a30ed8b9b5b..0e115cbd8f5 100644
--- a/pkg/agent/datamodel/types_test.go
+++ b/pkg/agent/datamodel/types_test.go
@@ -1154,6 +1154,13 @@ func TestAgentPoolProfileIsAzureLinuxCgroupV2VHDDistro(t *testing.T) {
 			},
 			expected: true,
 		},
+		{
+			name: "Azure Linux V3 Gen2 CVM VHD distro",
+			ap: AgentPoolProfile{
+				Distro: AKSAzureLinuxV3CVMGen2,
+			},
+			expected: true,
+		},
 	}
 
 	for _, c := range cases {