diff --git a/python/az/aro/azext_aro/_params.py b/python/az/aro/azext_aro/_params.py
index a3e6a95a8c6..fcb56e536a0 100644
--- a/python/az/aro/azext_aro/_params.py
+++ b/python/az/aro/azext_aro/_params.py
@@ -16,6 +16,7 @@
 from azext_aro._validators import validate_worker_vm_disk_size_gb
 from azext_aro._validators import validate_refresh_cluster_credentials
 from azext_aro._validators import validate_version_format
+from azext_aro._validators import validate_outbound_type
 from azure.cli.core.commands.parameters import name_type
 from azure.cli.core.commands.parameters import get_enum_type, get_three_state_flag
 from azure.cli.core.commands.parameters import resource_group_name_type
@@ -64,7 +65,9 @@ def load_arguments(self, _):
         c.argument('service_cidr',
                    help='CIDR of service network. Must be a minimum of /18 or larger.',
                    validator=validate_cidr('service_cidr'))
-
+        c.argument('outbound_type',
+                   help='Outbound type of cluster. Must be "Loadbalancer" (default) or "UserDefinedRouting".',
+                   validator=validate_outbound_type)
         c.argument('disk_encryption_set',
                    help='ResourceID of the DiskEncryptionSet to be used for master and worker VMs.',
                    validator=validate_disk_encryption_set)
diff --git a/python/az/aro/azext_aro/_validators.py b/python/az/aro/azext_aro/_validators.py
index 5f18ed30e0c..b3a9dff6613 100644
--- a/python/az/aro/azext_aro/_validators.py
+++ b/python/az/aro/azext_aro/_validators.py
@@ -118,6 +118,13 @@ def validate_pull_secret(namespace):
         raise InvalidArgumentValueError("Invalid --pull-secret.") from e
 
 
+def validate_outbound_type(namespace):
+    outbound_type = getattr(namespace, 'outbound_type')
+    if outbound_type in {'UserDefinedRouting', 'Loadbalancer', None}:
+        return
+    raise InvalidArgumentValueError('Outbound type must be "UserDefinedRouting" or "Loadbalancer"')
+
+
 def validate_subnet(key):
     def _validate_subnet(cmd, namespace):
         subnet = getattr(namespace, key)
diff --git a/python/az/aro/azext_aro/custom.py b/python/az/aro/azext_aro/custom.py
index 6c2ec5520cc..6d4291d68c9 100644
--- a/python/az/aro/azext_aro/custom.py
+++ b/python/az/aro/azext_aro/custom.py
@@ -53,6 +53,7 @@ def aro_create(cmd,  # pylint: disable=too-many-locals
                client_secret=None,
                pod_cidr=None,
                service_cidr=None,
+               outbound_type=None,
                disk_encryption_set=None,
                master_encryption_at_host=False,
                master_vm_size=None,
@@ -139,6 +140,11 @@ def aro_create(cmd,  # pylint: disable=too-many-locals
         network_profile=openshiftcluster.NetworkProfile(
             pod_cidr=pod_cidr or '10.128.0.0/14',
             service_cidr=service_cidr or '172.30.0.0/16',
+<<<<<<< HEAD
+=======
+            outbound_type=outbound_type or 'Loadbalancer',
+            software_defined_network=software_defined_network or 'OpenShiftSDN'
+>>>>>>> 381c20683 (add outbound-type param to az cli extension)
         ),
         master_profile=openshiftcluster.MasterProfile(
             vm_size=master_vm_size or 'Standard_D8s_v3',
diff --git a/python/az/aro/azext_aro/tests/latest/unit/test_validators.py b/python/az/aro/azext_aro/tests/latest/unit/test_validators.py
index 4e3ce912416..3bcf4991f89 100644
--- a/python/az/aro/azext_aro/tests/latest/unit/test_validators.py
+++ b/python/az/aro/azext_aro/tests/latest/unit/test_validators.py
@@ -3,7 +3,7 @@
 
 from unittest.mock import Mock, patch
 from azext_aro._validators import (
-    validate_cidr, validate_client_id, validate_client_secret, validate_cluster_resource_group,
+    validate_cidr, validate_client_id, validate_client_secret, validate_cluster_resource_group, validate_outbound_type,
     validate_disk_encryption_set, validate_domain, validate_pull_secret, validate_subnet, validate_subnets,
     validate_visibility, validate_vnet_resource_group_name, validate_worker_count, validate_worker_vm_disk_size_gb, validate_refresh_cluster_credentials
 )
@@ -775,3 +775,40 @@ def test_validate_refresh_cluster_credentials(test_description, namespace, expec
     else:
         with pytest.raises(expected_exception):
             validate_refresh_cluster_credentials(namespace)
+
+
+test_validate_outbound_type_data = [
+    (
+        "Should not raise exception when key is Loadbalancer.",
+        Mock(outbound_type='Loadbalancer'),
+        None
+    ),
+    (
+        "Should not raise exception when key is UserDefinedRouting.",
+        Mock(outbound_type='UserDefinedRouting'),
+        None
+    ),
+    (
+        "Should not raise exception when key is empty.",
+        Mock(outbound_type=None),
+        None
+    ),
+    (
+        "Should raise exception when key is a different value.",
+        Mock(outbound_type='testFail'),
+        InvalidArgumentValueError
+    ),
+]
+
+
+@pytest.mark.parametrize(
+    "test_description, namespace, expected_exception",
+    test_validate_outbound_type_data,
+    ids=[i[0] for i in test_validate_outbound_type_data]
+)
+def test_validate_outbound_type(test_description, namespace, expected_exception):
+    if expected_exception is None:
+        validate_outbound_type(namespace)
+    else:
+        with pytest.raises(expected_exception):
+            validate_outbound_type(namespace)