diff --git a/templates/azure-hosted-cp/.helmignore b/templates/azure-hosted-cp/.helmignore
new file mode 100644
index 000000000..0e8a0eb36
--- /dev/null
+++ b/templates/azure-hosted-cp/.helmignore
@@ -0,0 +1,23 @@
+# Patterns to ignore when building packages.
+# This supports shell glob matching, relative path matching, and
+# negation (prefixed with !). Only one pattern per line.
+.DS_Store
+# Common VCS dirs
+.git/
+.gitignore
+.bzr/
+.bzrignore
+.hg/
+.hgignore
+.svn/
+# Common backup files
+*.swp
+*.bak
+*.tmp
+*.orig
+*~
+# Various IDEs
+.project
+.idea/
+*.tmproj
+.vscode/
diff --git a/templates/azure-hosted-cp/Chart.yaml b/templates/azure-hosted-cp/Chart.yaml
new file mode 100644
index 000000000..eb951555b
--- /dev/null
+++ b/templates/azure-hosted-cp/Chart.yaml
@@ -0,0 +1,20 @@
+apiVersion: v2
+name: azure-hosted-cp
+description: |
+  An HMC template to deploy a k8s cluster on Azure with control plane components
+  within the management cluster.
+type: application
+# This is the chart version. This version number should be incremented each time you make changes
+# to the chart and its templates, including the app version.
+# Versions are expected to follow Semantic Versioning (https://semver.org/)
+version: 0.0.1
+# This is the version number of the application being deployed. This version number should be
+# incremented each time you make changes to the application. Versions are not expected to
+# follow Semantic Versioning. They should reflect the version the application is using.
+# It is recommended to use it with quotes.
+appVersion: "1.30.2+k0s.0"
+annotations:
+  hmc.mirantis.com/type: deployment
+  hmc.mirantis.com/infrastructure-providers: azure
+  hmc.mirantis.com/controlplane-providers: k0s
+  hmc.mirantis.com/bootstrap-providers: k0s
diff --git a/templates/azure-hosted-cp/templates/_helpers.tpl b/templates/azure-hosted-cp/templates/_helpers.tpl
new file mode 100644
index 000000000..06dc0b9f7
--- /dev/null
+++ b/templates/azure-hosted-cp/templates/_helpers.tpl
@@ -0,0 +1,19 @@
+{{- define "cluster.name" -}}
+    {{- .Release.Name | trunc 63 | trimSuffix "-" }}
+{{- end }}
+
+{{- define "azuremachinetemplate.name" -}}
+    {{- include "cluster.name" . }}-mt
+{{- end }}
+
+{{- define "k0smotroncontrolplane.name" -}}
+    {{- include "cluster.name" . }}-cp
+{{- end }}
+
+{{- define "k0sworkerconfigtemplate.name" -}}
+    {{- include "cluster.name" . }}-machine-config
+{{- end }}
+
+{{- define "machinedeployment.name" -}}
+    {{- include "cluster.name" . }}-md
+{{- end }}
diff --git a/templates/azure-hosted-cp/templates/azurecluster.yaml b/templates/azure-hosted-cp/templates/azurecluster.yaml
new file mode 100644
index 000000000..fa329e34b
--- /dev/null
+++ b/templates/azure-hosted-cp/templates/azurecluster.yaml
@@ -0,0 +1,19 @@
+apiVersion: infrastructure.cluster.x-k8s.io/v1beta1
+kind: AzureCluster
+metadata:
+  name: {{ include "cluster.name" . }}
+  # annotations:
+  #   cluster.x-k8s.io/managed-by: k0smotron
+spec:
+  identityRef:
+    kind: AzureClusterIdentity
+    name: {{ .Values.clusterIdentity.name }}
+    namespace: {{ .Values.clusterIdentity.namespace }}
+  location: {{ .Values.location }}
+  {{- if .Values.bastion.enabled }}
+  {{- with .Values.bastion.bastionSpec }}
+  bastionSpec:
+    {{- toYaml . | nindent 4 }}
+  {{- end }}
+  {{- end }}
+  subscriptionID: {{ .Values.subscriptionID }}
diff --git a/templates/azure-hosted-cp/templates/azuremachinetemplate.yaml b/templates/azure-hosted-cp/templates/azuremachinetemplate.yaml
new file mode 100644
index 000000000..973c603fe
--- /dev/null
+++ b/templates/azure-hosted-cp/templates/azuremachinetemplate.yaml
@@ -0,0 +1,14 @@
+apiVersion: infrastructure.cluster.x-k8s.io/v1beta1
+kind: AzureMachineTemplate
+metadata:
+  name: {{ include "azuremachinetemplate.name" . }}
+spec:
+  template:
+    spec:
+      osDisk:
+        diskSizeGB: {{ .Values.rootVolumeSize }}
+        osType: Linux
+      {{- if not (quote .Values.sshPublicKey | empty) }}
+      sshPublicKey: {{ .Values.sshPublicKey }}
+      {{- end }}
+      vmSize: {{ .Values.vmSize }}
diff --git a/templates/azure-hosted-cp/templates/cluster.yaml b/templates/azure-hosted-cp/templates/cluster.yaml
new file mode 100644
index 000000000..74bd07a54
--- /dev/null
+++ b/templates/azure-hosted-cp/templates/cluster.yaml
@@ -0,0 +1,17 @@
+apiVersion: cluster.x-k8s.io/v1beta1
+kind: Cluster
+metadata:
+  name: {{ include "cluster.name" . }}
+spec:
+  {{- with .Values.clusterNetwork }}
+  clusterNetwork:
+    {{- toYaml . | nindent 4 }}
+  {{- end }}
+  controlPlaneRef:
+    apiVersion: controlplane.cluster.x-k8s.io/v1beta1
+    kind: K0smotronControlPlane
+    name: {{ include "k0smotroncontrolplane.name" .  }}
+  infrastructureRef:
+    apiVersion: infrastructure.cluster.x-k8s.io/v1beta1
+    kind: AzureCluster
+    name: {{ include "cluster.name" . }}
diff --git a/templates/azure-hosted-cp/templates/k0smotroncontrolplane.yaml b/templates/azure-hosted-cp/templates/k0smotroncontrolplane.yaml
new file mode 100644
index 000000000..664d451b8
--- /dev/null
+++ b/templates/azure-hosted-cp/templates/k0smotroncontrolplane.yaml
@@ -0,0 +1,47 @@
+apiVersion: controlplane.cluster.x-k8s.io/v1beta1
+kind: K0smotronControlPlane
+metadata:
+  name: {{ include "k0smotroncontrolplane.name" . }}
+spec:
+  replicas: {{ .Values.controlPlaneNumber }}
+  version: {{ .Values.k0s.version | replace "+" "-" }}
+  {{- with .Values.k0smotron.service }}
+  service:
+    {{- toYaml . | nindent 4 }}
+  {{- end }}
+  controllerPlaneFlags:
+  - "--enable-cloud-provider=true"
+  - "--debug=true"
+  k0sConfig:
+    apiVersion: k0s.k0sproject.io/v1beta1
+    kind: ClusterConfig
+    metadata:
+      name: k0s
+    spec:
+      network:
+        provider: calico
+        calico:
+          mode: vxlan
+      extensions:
+        helm:
+          repositories:
+            - name: cloud-provider-azure
+              url: https://raw.githubusercontent.com/kubernetes-sigs/cloud-provider-azure/master/helm/repo
+            - name: azuredisk-csi-driver
+              url: https://raw.githubusercontent.com/kubernetes-sigs/azuredisk-csi-driver/master/charts
+          charts:
+            - name: cloud-provider-azure
+              namespace: kube-system
+              chartname: cloud-provider-azure/cloud-provider-azure
+              version: 1.30.4
+              values: |
+                cloudControllerManager:
+                  nodeSelector:
+                    node-role.kubernetes.io/control-plane: null
+            - name: azuredisk-csi-driver
+              namespace: kube-system
+              chartname: azuredisk-csi-driver/azuredisk-csi-driver
+              version: 1.30.3
+              values: |
+                linux:
+                  kubelet: "/var/lib/k0s/kubelet"
diff --git a/templates/azure-hosted-cp/templates/k0sworkerconfigtemplate.yaml b/templates/azure-hosted-cp/templates/k0sworkerconfigtemplate.yaml
new file mode 100644
index 000000000..562e4fdeb
--- /dev/null
+++ b/templates/azure-hosted-cp/templates/k0sworkerconfigtemplate.yaml
@@ -0,0 +1,11 @@
+apiVersion: bootstrap.cluster.x-k8s.io/v1beta1
+kind: K0sWorkerConfigTemplate
+metadata:
+  name: {{ include "k0sworkerconfigtemplate.name" . }}
+spec:
+  template:
+    spec:
+      version: {{ .Values.k0s.version }}
+      args:
+      - --enable-cloud-provider
+      - --kubelet-extra-args="--cloud-provider=external"
diff --git a/templates/azure-hosted-cp/templates/machinedeployment.yaml b/templates/azure-hosted-cp/templates/machinedeployment.yaml
new file mode 100644
index 000000000..e5995a1fb
--- /dev/null
+++ b/templates/azure-hosted-cp/templates/machinedeployment.yaml
@@ -0,0 +1,26 @@
+apiVersion: cluster.x-k8s.io/v1beta1
+kind: MachineDeployment
+metadata:
+  name: {{ include "machinedeployment.name" . }}
+spec:
+  clusterName: {{ include "cluster.name" . }}
+  replicas: {{ .Values.workersNumber }}
+  selector:
+    matchLabels:
+      cluster.x-k8s.io/cluster-name: {{ include "cluster.name" . }}
+  template:
+    metadata:
+      labels:
+        cluster.x-k8s.io/cluster-name: {{ include "cluster.name" . }}
+    spec:
+      version: {{ regexReplaceAll "\\+k0s.+$" .Values.k0s.version "" }}
+      clusterName: {{ include "cluster.name" . }}
+      bootstrap:
+        configRef:
+          apiVersion: bootstrap.cluster.x-k8s.io/v1beta1
+          kind: K0sWorkerConfigTemplate
+          name: {{ include "k0sworkerconfigtemplate.name" . }}
+      infrastructureRef:
+        apiVersion: infrastructure.cluster.x-k8s.io/v1beta1
+        kind: AzureMachineTemplate
+        name: {{ include "azuremachinetemplate.name" . }}
diff --git a/templates/azure-hosted-cp/values.schema.json b/templates/azure-hosted-cp/values.schema.json
new file mode 100644
index 000000000..a959b35ab
--- /dev/null
+++ b/templates/azure-hosted-cp/values.schema.json
@@ -0,0 +1,125 @@
+{
+  "$schema": "https://json-schema.org/draft/2020-12/schema",
+  "description": "An HMC template to deploy a K8s cluster on Azure with control plane components within the management cluster.",
+  "type": "object",
+  "required": [
+    "controlPlaneNumber",
+    "workersNumber",
+    "location",
+    "vmSize"
+  ],
+  "properties": {
+    "controlPlaneNumber": {
+      "description": "The number of the control plane machines",
+      "type": "number",
+      "minimum": 1
+    },
+    "workersNumber": {
+      "description": "The number of the worker machines",
+      "type": "number",
+      "minimum": 1
+    },
+    "clusterNetwork": {
+      "type": "object",
+      "properties": {
+        "pods": {
+          "type": "object",
+          "properties": {
+            "cidrBlocks": {
+              "type": "array",
+              "items": {
+                "type": "string"
+              },
+              "minItems": 1,
+              "uniqueItems": true
+            }
+          }
+        },
+        "services": {
+          "type": "object",
+          "properties": {
+            "cidrBlocks": {
+              "type": "array",
+              "items": {
+                "type": "string"
+              },
+              "minItems": 1,
+              "uniqueItems": true
+            }
+          }
+        }
+      }
+    },
+    "location": {
+      "description": "Azure location to deploy the cluster in",
+      "type": "string"
+    },
+    "bastion": {
+      "type": "object",
+      "description": "The configuration of the bastion host",
+      "required": [],
+      "properties": {
+          "enabled": {
+              "type": "boolean"
+          }
+      }
+    },
+    "sshPublicKey": {
+      "description": "SSH public key in base64 format, which will be used on the machine.",
+      "type": "string"
+    },
+    "vmSize": {
+      "description": "The size of instance to create",
+      "type": "string"
+    },
+    "rootVolumeSize": {
+      "description": "The size of the root volume of the instance (GB)",
+      "type": "integer"
+    },
+    "k0smotron": {
+      "description": "K0smotron parameters",
+      "type": "object",
+      "properties": {
+        "service": {
+          "description": "The configuration of a K0smotron service",
+          "properties": {
+            "type": {
+              "description": "Ingress methods for a k0smotron service",
+              "enum": [
+                "ClusterIP",
+                "NodePort",
+                "LoadBalancer"
+              ],
+              "type": "string"
+            },
+            "apiPort": {
+              "description": "The kubernetes API port for a k0smotron service",
+              "type": "number",
+              "minimum": 1,
+              "maximum": 65535
+            },
+            "konnectivityPort": {
+              "description": "The konnectivity port",
+              "type": "number",
+              "minimum": 1,
+              "maximum": 65535
+            }
+          }
+        }
+      }
+    },
+    "k0s": {
+      "description": "K0s parameters",
+      "type": "object",
+      "required": [
+        "version"
+      ],
+      "properties": {
+        "version":{
+          "description": "K0s version to use",
+          "type": "string"
+        }
+      }
+    }
+  }
+}
diff --git a/templates/azure-hosted-cp/values.yaml b/templates/azure-hosted-cp/values.yaml
new file mode 100644
index 000000000..f92a95a5d
--- /dev/null
+++ b/templates/azure-hosted-cp/values.yaml
@@ -0,0 +1,38 @@
+# Cluster parameters
+controlPlaneNumber: 3
+workersNumber: 2
+
+clusterNetwork:
+  pods:
+    cidrBlocks:
+    - "10.244.0.0/16"
+  services:
+    cidrBlocks:
+    - "10.96.0.0/12"
+
+# AWS cluster parameters
+location: ""
+subscriptionID: ""
+bastion:
+  enabled: false
+  bastionSpec:
+    azureBastion: {}
+clusterIdentity:
+  name: ""
+  namespace: hmc-system
+# AWS machines parameters
+
+sshPublicKey: ""
+vmSize: ""
+rootVolumeSize: 30
+
+# K0smotron parameters
+k0smotron:
+  service:
+    type: LoadBalancer
+    apiPort: 6443
+    konnectivityPort: 8132
+
+# K0s parameters
+k0s:
+  version: v1.30.2+k0s.0
diff --git a/templates/hmc-templates/files/templates/azure-hosted-cp.yaml b/templates/hmc-templates/files/templates/azure-hosted-cp.yaml
new file mode 100644
index 000000000..67daba869
--- /dev/null
+++ b/templates/hmc-templates/files/templates/azure-hosted-cp.yaml
@@ -0,0 +1,8 @@
+apiVersion: hmc.mirantis.com/v1alpha1
+kind: Template
+metadata:
+  name: azure-hosted-cp
+spec:
+  helm:
+    chartName: azure-hosted-cp
+    chartVersion: 0.0.1