diff --git a/api/v1alpha1/terraform/terraform_config.go b/api/v1alpha1/terraform/terraform_config.go
index 41a5d4c29..0945cb8b0 100644
--- a/api/v1alpha1/terraform/terraform_config.go
+++ b/api/v1alpha1/terraform/terraform_config.go
@@ -11,6 +11,7 @@ type BackendConfig struct {
 	S3         *S3Backend         `yaml:"s3,omitempty"`
 	Kubernetes *KubernetesBackend `yaml:"kubernetes,omitempty"`
 	Local      *LocalBackend      `yaml:"local,omitempty"`
+	AzureRM    *AzureRMBackend    `yaml:"azurerm,omitempty"`
 	Prefix     *string            `yaml:"prefix,omitempty"`
 }
 
@@ -90,6 +91,40 @@ type ExecConfig struct {
 	Env        *map[string]string `yaml:"env,omitempty"`
 }
 
+// AzureRMBackend represents the configuration for the AzureRM backend
+type AzureRMBackend struct {
+	StorageAccountName             *string `yaml:"storage_account_name,omitempty"`
+	ContainerName                  *string `yaml:"container_name,omitempty"`
+	Key                            *string `yaml:"key,omitempty"`
+	Environment                    *string `yaml:"environment,omitempty"`
+	MetadataHost                   *string `yaml:"metadata_host,omitempty"`
+	UseAzureAD                     *bool   `yaml:"use_azuread,omitempty"`
+	UseOIDC                        *bool   `yaml:"use_oidc,omitempty"`
+	UseCLI                         *bool   `yaml:"use_cli,omitempty"`
+	UseMSI                         *bool   `yaml:"use_msi,omitempty"`
+	UseAksWorkloadIdentity         *bool   `yaml:"use_aks_workload_identity,omitempty"`
+	TenantID                       *string `yaml:"tenant_id,omitempty"`
+	SubscriptionID                 *string `yaml:"subscription_id,omitempty"`
+	ClientID                       *string `yaml:"client_id,omitempty"`
+	ClientSecret                   *string `yaml:"client_secret,omitempty"`
+	ClientCertificate              *string `yaml:"client_certificate,omitempty"`
+	ClientCertPassword             *string `yaml:"client_certificate_password,omitempty"`
+	ClientCertPath                 *string `yaml:"client_certificate_path,omitempty"`
+	ClientIdFilePath               *string `yaml:"client_id_file_path,omitempty"`
+	ClientSecretFilePath           *string `yaml:"client_secret_file_path,omitempty"`
+	MSIEndpoint                    *string `yaml:"msi_endpoint,omitempty"`
+	ResourceGroupName              *string `yaml:"resource_group_name,omitempty"`
+	UseDNSZoneEndpoint             *bool   `yaml:"use_dns_zone_endpoint,omitempty"`
+	Snapshot                       *bool   `yaml:"snapshot,omitempty"`
+	AccessKey                      *string `yaml:"access_key,omitempty"`
+	SasToken                       *string `yaml:"sas_token,omitempty"`
+	AdoPipelineServiceConnectionId *string `yaml:"ado_pipeline_service_connection_id,omitempty"`
+	OidcRequestUrl                 *string `yaml:"oidc_request_url,omitempty"`
+	OidcRequestToken               *string `yaml:"oidc_request_token,omitempty"`
+	OidcToken                      *string `yaml:"oidc_token,omitempty"`
+	OidcTokenFilePath              *string `yaml:"oidc_token_file_path,omitempty"`
+}
+
 // Merge performs a simple merge of the current TerraformConfig with another TerraformConfig.
 func (base *TerraformConfig) Merge(overlay *TerraformConfig) {
 	if overlay.Enabled != nil {
diff --git a/pkg/env/terraform_env.go b/pkg/env/terraform_env.go
index 1e89740af..9974e9869 100644
--- a/pkg/env/terraform_env.go
+++ b/pkg/env/terraform_env.go
@@ -190,6 +190,10 @@ func (e *TerraformEnvPrinter) generateBackendOverrideTf() error {
 	case "kubernetes":
 		backendConfig = fmt.Sprintf(`terraform {
   backend "kubernetes" {}
+}`)
+	case "azurerm":
+		backendConfig = fmt.Sprintf(`terraform {
+  backend "azurerm" {}
 }`)
 	default:
 		return fmt.Errorf("unsupported backend: %s", backend)
@@ -255,6 +259,14 @@ func (e *TerraformEnvPrinter) generateBackendConfigArgs(projectPath, configRoot
 				return nil, fmt.Errorf("error processing Kubernetes backend config: %w", err)
 			}
 		}
+	case "azurerm":
+		keyPath := fmt.Sprintf("%s%s", prefix, filepath.ToSlash(filepath.Join(projectPath, "terraform.tfstate")))
+		addBackendConfigArg("key", keyPath)
+		if backend := e.configHandler.GetConfig().Terraform.Backend.AzureRM; backend != nil {
+			if err := e.processBackendConfig(backend, addBackendConfigArg); err != nil {
+				return nil, fmt.Errorf("error processing AzureRM backend config: %w", err)
+			}
+		}
 	default:
 		return nil, fmt.Errorf("unsupported backend: %s", backend)
 	}
diff --git a/pkg/env/terraform_env_test.go b/pkg/env/terraform_env_test.go
index f71e53870..3239bf51b 100644
--- a/pkg/env/terraform_env_test.go
+++ b/pkg/env/terraform_env_test.go
@@ -773,6 +773,33 @@ func TestTerraformEnv_generateBackendOverrideTf(t *testing.T) {
 		}
 	})
 
+	t.Run("AzureRMBackend", func(t *testing.T) {
+		// Given a TerraformEnvPrinter with AzureRM backend configuration
+		printer, mocks := setup(t)
+		mocks.ConfigHandler.SetContextValue("terraform.backend.type", "azurerm")
+
+		var writtenData []byte
+		mocks.Shims.WriteFile = func(filename string, data []byte, perm os.FileMode) error {
+			writtenData = data
+			return nil
+		}
+
+		// When generateBackendOverrideTf is called
+		err := printer.generateBackendOverrideTf()
+
+		// Then no error should occur and the expected backend config should be written
+		if err != nil {
+			t.Errorf("Expected no error, got %v", err)
+		}
+
+		expectedContent := `terraform {
+  backend "azurerm" {}
+}`
+		if string(writtenData) != expectedContent {
+			t.Errorf("Expected backend config %q, got %q", expectedContent, string(writtenData))
+		}
+	})
+
 	t.Run("UnsupportedBackend", func(t *testing.T) {
 		// Given a TerraformEnvPrinter with unsupported backend configuration
 		printer, mocks := setup(t)
@@ -1122,6 +1149,37 @@ func TestTerraformEnv_generateBackendConfigArgs(t *testing.T) {
 		}
 	})
 
+	t.Run("AzureRMBackendWithPrefix", func(t *testing.T) {
+		// Given a TerraformEnvPrinter with AzureRM backend and prefix configuration
+		printer, mocks := setup(t)
+		mocks.ConfigHandler.SetContextValue("terraform.backend.type", "azurerm")
+		mocks.ConfigHandler.SetContextValue("terraform.backend.prefix", "mock-prefix/")
+		mocks.ConfigHandler.SetContextValue("terraform.backend.azurerm.storage_account_name", "mock-storage")
+		mocks.ConfigHandler.SetContextValue("terraform.backend.azurerm.container_name", "mock-container")
+		mocks.ConfigHandler.SetContextValue("terraform.backend.azurerm.use_azuread", true)
+		projectPath := "project/path"
+		configRoot := "/mock/config/root"
+
+		// When generateBackendConfigArgs is called
+		backendConfigArgs, err := printer.generateBackendConfigArgs(projectPath, configRoot)
+
+		// Then no error should occur and the expected arguments should be returned
+		if err != nil {
+			t.Errorf("unexpected error: %v", err)
+		}
+
+		expectedArgs := []string{
+			`-backend-config="key=mock-prefix/project/path/terraform.tfstate"`,
+			`-backend-config="container_name=mock-container"`,
+			`-backend-config="storage_account_name=mock-storage"`,
+			`-backend-config="use_azuread=true"`,
+		}
+
+		if !reflect.DeepEqual(backendConfigArgs, expectedArgs) {
+			t.Errorf("expected %v, got %v", expectedArgs, backendConfigArgs)
+		}
+	})
+
 	t.Run("UnsupportedBackendType", func(t *testing.T) {
 		// Given a TerraformEnvPrinter with unsupported backend configuration
 		printer, mocks := setup(t)