diff --git a/docs/api-observability/install-guide/install-sensor/azure-api-management.md b/docs/api-observability/install-guide/install-sensor/azure-api-management.md
new file mode 100644
index 000000000..a28ecd21f
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+++ b/docs/api-observability/install-guide/install-sensor/azure-api-management.md
@@ -0,0 +1,36 @@
+---
+sidebar_position: 6
+---
+
+# Azure API Management
+
+## Policy-based Instrumentation
+
+### Pre-requisites
+- You have sufficient permissions on Azure to configure API Management policies.
+- The Satellite has been successfully set up and is reachable (via HTTPS) from the resource group.
+
+### Installation
+To instrument your Azure API Management endpoints, the following steps are required:
+1. Configuring named values
+2. Adding the instrumentation policy
+
+#### Configuring Named Values
+
+Follow the steps in the official Azure docs to [add named values to your API Management instance](https://learn.microsoft.com/en-us/azure/api-management/api-management-howto-properties?tabs=azure-portal#add-a-plain-or-secret-value-to-api-management).
+
+The following named values must be configured:
+
+| Name | Description |
+| ---- | ----------- |
+| `LevoOrgId` | Your organization's ID. <br/> Obtain your organization's ID from https://app.levo.ai/settings/organizations or by clicking on your profile picture in Levo's dashboard, and navigating to `User Settings -> Organizations`. |
+| `LevoTracesEndpoint` | The URL to which traces should be sent, e.g. `https://collector.levo.ai`. |
+| `LevoEnv` | The environment in which the apps will show up in Levo's dashboard, e.g. `production` or `staging`. |
+
+#### Adding the Policy
+
+Follow the steps in the official Azure docs to [add a policy to your API Management instance](https://learn.microsoft.com/en-us/azure/api-management/api-management-howto-properties?tabs=azure-portal#add-a-plain-or-secret-value-to-api-management).
+
+Copy the contents of the `policy.xml` file in the [levoai/azure-apim-policy](https://github.com/levoai/azure-apim-policy) repository on GitHub and paste it into the policy editor.
+
+Ensure that the policy is added at the [API Scope](https://learn.microsoft.com/en-us/azure/api-management/set-edit-policies?tabs=editor#api-scope).
diff --git a/docs/api-observability/install-guide/install-sensor/install-sensor.md b/docs/api-observability/install-guide/install-sensor/install-sensor.md
index 7114a0320..af943db74 100644
--- a/docs/api-observability/install-guide/install-sensor/install-sensor.md
+++ b/docs/api-observability/install-guide/install-sensor/install-sensor.md
@@ -42,9 +42,15 @@ Note that CloudFront does not provide access to the API endpoint response bodies
 
 [**Click here for the installation instructions**](/api-observability/install-guide/install-sensor/aws-cloudfront.md).
 
+## Azure API Management Policy
+You should install Levo's Azure API Management policy if:
+
+- Your API endpoints are managed by Azure API Management.
+
+[**Click here for the installation instructions**](/api-observability/install-guide/install-sensor/azure-api-management.md).
+
 ---
 
 ## Quickstart
 
 If you want a quick glimpse of Levo's API Observability without a full installation, check out the [Quickstart page](/api-observability/quickstart/quickstart.md).
-