diff --git a/docs/resources/cluster.md b/docs/resources/cluster.md
index 73b78420..c9afa50d 100644
--- a/docs/resources/cluster.md
+++ b/docs/resources/cluster.md
@@ -553,6 +553,7 @@ resource "rancher2_cluster" "foo" {
     virtual_network_resource_group = "<virtual-network-resource-group>"
     subnet = "<subnet>"
     node_resource_group = "<node-resource-group>"
+    outbound_type = "loadBalancer"
     node_pools {
       availability_zones = ["1", "2", "3"]
       name = "<nodepool-name-1>"
@@ -1550,6 +1551,7 @@ The following arguments are supported just for creating new AKS clusters (`impor
 * `network_policy` - (Optional/Computed) The AKS network policy (string)
 * `network_service_cidr` - (Optional/Computed) The AKS network service cidr (string)
 * `node_resource_group` (Optional/Computed) The AKS node resource group name (string)
+* `outbound_type` (Optional/Computed) The AKS outbound type for the egress traffic (string)
 * `private_cluster` - (Optional/Computed) Is AKS cluster private? (bool)
 * `subnet` - (Optional/Computed) The AKS subnet (string)
 * `tags` - (Optional/Computed) The AKS cluster tags (map)
diff --git a/rancher2/schema_cluster_aks_config_v2.go b/rancher2/schema_cluster_aks_config_v2.go
index 60d4fce3..6beec1ef 100644
--- a/rancher2/schema_cluster_aks_config_v2.go
+++ b/rancher2/schema_cluster_aks_config_v2.go
@@ -2,6 +2,7 @@ package rancher2
 
 import (
 	"github.com/hashicorp/terraform-plugin-sdk/helper/schema"
+	"github.com/hashicorp/terraform-plugin-sdk/helper/validation"
 )
 
 const (
@@ -9,6 +10,10 @@ const (
 	clusterDriverAKSV2 = "AKS"
 )
 
+var (
+	clusterAKSOutboundType = []string{"loadbalancer", "managednatgateway", "userassignednatgateway", "userdefinedrouting"}
+)
+
 //Schemas
 
 func clusterAKSConfigV2NodePoolsFields() map[string]*schema.Schema {
@@ -263,6 +268,13 @@ func clusterAKSConfigV2Fields() map[string]*schema.Schema {
 			Computed:    true,
 			Description: "The AKS node resource group name",
 		},
+		"outboung_type": {
+			Type:         schema.TypeString,
+			Optional:     true,
+			Default:      "loadBalancer",
+			Description:  "The AKS outbound type for the egress traffic",
+			ValidateFunc: validation.StringInSlice(clusterAKSOutboundType, true),
+		},
 		"private_cluster": {
 			Type:        schema.TypeBool,
 			Optional:    true,
diff --git a/rancher2/structure_cluster_aks_config_v2.go b/rancher2/structure_cluster_aks_config_v2.go
index 94ffe9bf..738e3a16 100644
--- a/rancher2/structure_cluster_aks_config_v2.go
+++ b/rancher2/structure_cluster_aks_config_v2.go
@@ -166,6 +166,9 @@ func flattenClusterAKSConfigV2(in *managementClient.AKSClusterConfigSpec, p []in
 	if in.NodeResourceGroup != nil && len(*in.NodeResourceGroup) > 0 {
 		obj["node_resource_group"] = *in.NodeResourceGroup
 	}
+	if in.OutboundType != nil && len(*in.OutboundType) > 0 {
+		obj["outbound_type"] = *in.OutboundType
+	}
 	if in.PrivateCluster != nil {
 		obj["private_cluster"] = *in.PrivateCluster
 	}
@@ -352,6 +355,9 @@ func expandClusterAKSConfigV2(p []interface{}) *managementClient.AKSClusterConfi
 	if v, ok := in["node_resource_group"].(string); ok && len(v) > 0 {
 		obj.NodeResourceGroup = &v
 	}
+	if v, ok := in["outbound_type"].(string); ok && len(v) > 0 {
+		obj.OutboundType = &v
+	}
 	if v, ok := in["subnet"].(string); ok && len(v) > 0 {
 		obj.Subnet = &v
 	}
diff --git a/rancher2/structure_cluster_aks_config_v2_test.go b/rancher2/structure_cluster_aks_config_v2_test.go
index 840e4067..60fe04dc 100644
--- a/rancher2/structure_cluster_aks_config_v2_test.go
+++ b/rancher2/structure_cluster_aks_config_v2_test.go
@@ -86,6 +86,7 @@ func init() {
 		NetworkServiceCIDR:         newString("network_service_cidr"),
 		NodePools:                  testClusterAKSConfigV2NodePoolConf,
 		NodeResourceGroup:          newString("node_resource_group"),
+		OutboundType:               newString("loadBalancer"),
 		PrivateCluster:             newTrue(),
 		ResourceGroup:              "resource_group",
 		ResourceLocation:           "resource_location",
@@ -122,6 +123,7 @@ func init() {
 			"network_service_cidr":          "network_service_cidr",
 			"node_pools":                    testClusterAKSConfigV2NodePoolInterface,
 			"node_resource_group":           "node_resource_group",
+			"outbound_type":                 "loadBalancer",
 			"private_cluster":               true,
 			"resource_group":                "resource_group",
 			"resource_location":             "resource_location",