diff --git a/integrations/terraform-modules/Makefile b/integrations/terraform-modules/Makefile
index 86a44cf628690..8650bd5a0d85b 100644
--- a/integrations/terraform-modules/Makefile
+++ b/integrations/terraform-modules/Makefile
@@ -21,7 +21,7 @@ docs: $(README_FILES) ;
 	terraform-docs markdown table --config .terraform-docs.yml $*
 
 .PHONY: check
-check:
+check: clean
 	git ls-files -- . \
 	| xargs pre-commit run --hook-stage=manual --verbose --files
 
diff --git a/integrations/terraform-modules/teleport/discovery/azure/LICENSE b/integrations/terraform-modules/teleport/discovery/azure/LICENSE
new file mode 100644
index 0000000000000..261eeb9e9f8b2
--- /dev/null
+++ b/integrations/terraform-modules/teleport/discovery/azure/LICENSE
@@ -0,0 +1,201 @@
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diff --git a/integrations/terraform-modules/teleport/discovery/azure/README.md b/integrations/terraform-modules/teleport/discovery/azure/README.md
new file mode 100644
index 0000000000000..b855e9296d3dd
--- /dev/null
+++ b/integrations/terraform-modules/teleport/discovery/azure/README.md
@@ -0,0 +1,100 @@
+# Azure Discovery Terraform module
+
+This Terraform module creates the Azure and Teleport cluster resources necessary for a Teleport cluster to discover Azure virtual machines:
+
+- **Azure user-assigned managed identity**: Used by the Teleport Discovery Service to authenticate to Azure APIs for scanning and managing VMs in matching Azure resource groups.
+- **Azure federated identity credential**: Establishes trust between Azure and your Teleport cluster by allowing the managed identity to authenticate using OIDC tokens issued by your Teleport proxy.
+- **Azure custom role definition and assignment**: Grants the managed identity the minimum required permissions to discover VMs and run installation commands on them.
+- **Teleport `discovery_config` cluster resource**: Configures the discovery parameters (subscriptions, resource groups, tags) that determine which Azure VMs will be discovered and enrolled.
+- **Teleport `integration` cluster resource**: Stores the Azure OIDC integration configuration in your Teleport cluster, linking the Azure tenant and client ID to enable authentication.
+- **Teleport `token` cluster resource**: Provides the join token that discovered Azure VMs will use to authenticate and join your Teleport cluster.
+
+## Prerequisites
+
+- [Install Teleport Terraform Provider](https://goteleport.com/docs/zero-trust-access/infrastructure-as-code/terraform-provider/)
+- Every Azure VM to be discovered must have a managed identity assigned to it with at least the Microsoft.Compute/virtualMachines/read permission. [Read more](https://goteleport.com/docs/enroll-resources/auto-discovery/servers/azure-discovery/#step-35-set-up-managed-identities-for-discovered-nodes)
+
+## Examples
+
+- [Discover VMs in a single Azure subscription](./examples/single-subscription)
+
+## How to get help
+
+If you're having trouble, check out our [GitHub Discussions](https://github.com/gravitational/teleport/discussions).
+
+For bugs related to this code, please [open an issue](https://github.com/gravitational/teleport/issues/new/choose).
+
+<!-- BEGIN_TF_DOCS -->
+## Requirements
+
+| Name | Version |
+|------|---------|
+| <a name="requirement_terraform"></a> [terraform](#requirement\_terraform) | >= 1.5.7 |
+| <a name="requirement_azurerm"></a> [azurerm](#requirement\_azurerm) | >= 4.0 |
+| <a name="requirement_http"></a> [http](#requirement\_http) | >= 3.0 |
+| <a name="requirement_teleport"></a> [teleport](#requirement\_teleport) | >= 18.5.1 |
+
+## Providers
+
+| Name | Version |
+|------|---------|
+| <a name="provider_azurerm"></a> [azurerm](#provider\_azurerm) | >= 4.0 |
+| <a name="provider_http"></a> [http](#provider\_http) | >= 3.0 |
+| <a name="provider_teleport"></a> [teleport](#provider\_teleport) | >= 18.5.1 |
+
+## Modules
+
+No modules.
+
+## Resources
+
+| Name | Type |
+|------|------|
+| [azurerm_federated_identity_credential.teleport_discovery_service](https://registry.terraform.io/providers/hashicorp/azurerm/latest/docs/resources/federated_identity_credential) | resource |
+| [azurerm_role_assignment.teleport_discovery](https://registry.terraform.io/providers/hashicorp/azurerm/latest/docs/resources/role_assignment) | resource |
+| [azurerm_role_definition.teleport_discovery](https://registry.terraform.io/providers/hashicorp/azurerm/latest/docs/resources/role_definition) | resource |
+| [azurerm_user_assigned_identity.teleport_discovery_service](https://registry.terraform.io/providers/hashicorp/azurerm/latest/docs/resources/user_assigned_identity) | resource |
+| teleport_discovery_config.azure | resource |
+| teleport_integration.azure_oidc | resource |
+| teleport_provision_token.azure | resource |
+| [azurerm_client_config.this](https://registry.terraform.io/providers/hashicorp/azurerm/latest/docs/data-sources/client_config) | data source |
+| [http_http.teleport_ping](https://registry.terraform.io/providers/hashicorp/http/latest/docs/data-sources/http) | data source |
+
+## Inputs
+
+| Name | Description | Type | Default | Required |
+|------|-------------|------|---------|:--------:|
+| <a name="input_apply_azure_tags"></a> [apply\_azure\_tags](#input\_apply\_azure\_tags) | Additional Azure tags to apply to all created Azure resources. | `map(string)` | `{}` | no |
+| <a name="input_apply_teleport_resource_labels"></a> [apply\_teleport\_resource\_labels](#input\_apply\_teleport\_resource\_labels) | Additional Teleport resource labels to apply to all created Teleport resources. | `map(string)` | `{}` | no |
+| <a name="input_azure_federated_identity_credential_name"></a> [azure\_federated\_identity\_credential\_name](#input\_azure\_federated\_identity\_credential\_name) | Name of the Azure federated identity credential created for workload identity federation. | `string` | `"teleport-federation"` | no |
+| <a name="input_azure_managed_identity_location"></a> [azure\_managed\_identity\_location](#input\_azure\_managed\_identity\_location) | Azure region (location) where the managed identity will be created (e.g., "westus"). | `string` | n/a | yes |
+| <a name="input_azure_managed_identity_name"></a> [azure\_managed\_identity\_name](#input\_azure\_managed\_identity\_name) | Name of the Azure user-assigned managed identity created for Teleport Discovery. | `string` | `"discovery-identity"` | no |
+| <a name="input_azure_resource_group_name"></a> [azure\_resource\_group\_name](#input\_azure\_resource\_group\_name) | Name of an existing Azure Resource Group where Azure resources will be created. | `string` | n/a | yes |
+| <a name="input_azure_role_assignable_scopes"></a> [azure\_role\_assignable\_scopes](#input\_azure\_role\_assignable\_scopes) | The scopes at which the Azure discovery role will be assignable. Defaults to the current subscription. | `list(string)` | `[]` | no |
+| <a name="input_azure_role_assignment_scopes"></a> [azure\_role\_assignment\_scopes](#input\_azure\_role\_assignment\_scopes) | The scopes at which the Azure discovery role will be assigned. Must be a management group ID like /providers/Microsoft.Management/managementGroups/<name> to support wildcard ('*') Azure subscription discovery. Defaults to the subscription of the azurerm provider. | `list(string)` | `[]` | no |
+| <a name="input_azure_role_definition_name"></a> [azure\_role\_definition\_name](#input\_azure\_role\_definition\_name) | Name for the Azure custom role definition created for Teleport Discovery. | `string` | `"teleport-discovery"` | no |
+| <a name="input_create"></a> [create](#input\_create) | Toggle creation of all resources. | `bool` | `true` | no |
+| <a name="input_match_azure_regions"></a> [match\_azure\_regions](#input\_match\_azure\_regions) | Azure regions to discover. Defaults to ["*"] which matches all regions. Region names should be the programmatic region name, e.g., "westus". | `list(string)` | <pre>[<br/>  "*"<br/>]</pre> | no |
+| <a name="input_match_azure_resource_groups"></a> [match\_azure\_resource\_groups](#input\_match\_azure\_resource\_groups) | Azure resource groups to scan for VMs. Defaults to ["*"] which matches all resource groups. | `list(string)` | <pre>[<br/>  "*"<br/>]</pre> | no |
+| <a name="input_match_azure_subscriptions"></a> [match\_azure\_subscriptions](#input\_match\_azure\_subscriptions) | Azure subscriptions to scan for VMs. Defaults to ["*"] which matches all subscriptions. | `list(string)` | <pre>[<br/>  "*"<br/>]</pre> | no |
+| <a name="input_match_azure_tags"></a> [match\_azure\_tags](#input\_match\_azure\_tags) | Tag filters for VM discovery; matches VMs with these tags. Defaults to {"*" = ["*"]} which matches all tags. | `map(list(string))` | <pre>{<br/>  "*": [<br/>    "*"<br/>  ]<br/>}</pre> | no |
+| <a name="input_teleport_discovery_config_name"></a> [teleport\_discovery\_config\_name](#input\_teleport\_discovery\_config\_name) | Name for the `teleport_discovery_config` resource. | `string` | `"discovery"` | no |
+| <a name="input_teleport_discovery_config_use_name_prefix"></a> [teleport\_discovery\_config\_use\_name\_prefix](#input\_teleport\_discovery\_config\_use\_name\_prefix) | Whether `teleport_discovery_config_name` is used as a name prefix (true) or as the exact name (false). | `bool` | `true` | no |
+| <a name="input_teleport_discovery_group_name"></a> [teleport\_discovery\_group\_name](#input\_teleport\_discovery\_group\_name) | Teleport discovery group to use. For discovery configuration to apply, this name must match at least one Teleport Discovery Service instance's configured `discovery_group`. For Teleport Cloud clusters, use "cloud-discovery-group". | `string` | n/a | yes |
+| <a name="input_teleport_installer_script_name"></a> [teleport\_installer\_script\_name](#input\_teleport\_installer\_script\_name) | Name of an existing Teleport installer script to use. | `string` | `"default-installer"` | no |
+| <a name="input_teleport_integration_name"></a> [teleport\_integration\_name](#input\_teleport\_integration\_name) | Name for the `teleport_integration` resource. | `string` | `"discovery"` | no |
+| <a name="input_teleport_integration_use_name_prefix"></a> [teleport\_integration\_use\_name\_prefix](#input\_teleport\_integration\_use\_name\_prefix) | Whether `teleport_integration_name` is used as a name prefix (true) or as the exact name (false). | `bool` | `true` | no |
+| <a name="input_teleport_provision_token_name"></a> [teleport\_provision\_token\_name](#input\_teleport\_provision\_token\_name) | Name for the `teleport_provision_token` resource. | `string` | `"discovery"` | no |
+| <a name="input_teleport_provision_token_use_name_prefix"></a> [teleport\_provision\_token\_use\_name\_prefix](#input\_teleport\_provision\_token\_use\_name\_prefix) | Whether `teleport_provision_token_name` is used as a name prefix (true) or as the exact name (false). | `bool` | `true` | no |
+| <a name="input_teleport_proxy_public_addr"></a> [teleport\_proxy\_public\_addr](#input\_teleport\_proxy\_public\_addr) | Teleport cluster proxy public address in the form <host:port> (no URL scheme). | `string` | n/a | yes |
+
+## Outputs
+
+| Name | Description |
+|------|-------------|
+| <a name="output_azure_discovery_role_definition"></a> [azure\_discovery\_role\_definition](#output\_azure\_discovery\_role\_definition) | The Azure role definition for Teleport discovery service. |
+| <a name="output_azure_oidc_integration_managed_identity"></a> [azure\_oidc\_integration\_managed\_identity](#output\_azure\_oidc\_integration\_managed\_identity) | Managed identity used by the Teleport Azure OIDC integration. |
+| <a name="output_teleport_discovery_config_name"></a> [teleport\_discovery\_config\_name](#output\_teleport\_discovery\_config\_name) | Name of the Teleport dynamic `discovery_config`. Configuration details can be viewed with `tctl get discovery_config/<name>`. Teleport Discovery Service instances will use this `discovery_config` if they are in the same discovery group as the `discovery_config`. |
+| <a name="output_teleport_integration_name"></a> [teleport\_integration\_name](#output\_teleport\_integration\_name) | Name of the Teleport `integration` resource. The integration resource configures Teleport Discovery Service instances to assume an Azure managed identity for discovery using Azure OIDC federation. Integration details can be viewed with `tctl get integrations/<name>` or by visiting the Teleport web UI under 'Zero Trust Access' > 'Integrations'. |
+| <a name="output_teleport_provision_token_name"></a> [teleport\_provision\_token\_name](#output\_teleport\_provision\_token\_name) | Name of the Teleport provision `token` that allows Teleport nodes to join the Teleport cluster using Azure credentials. Token details can be viewed with `tctl get token/<name>`. |
+<!-- END_TF_DOCS -->
diff --git a/integrations/terraform-modules/teleport/discovery/azure/azure_managed_identity.tf b/integrations/terraform-modules/teleport/discovery/azure/azure_managed_identity.tf
new file mode 100644
index 0000000000000..f20dc164a20a9
--- /dev/null
+++ b/integrations/terraform-modules/teleport/discovery/azure/azure_managed_identity.tf
@@ -0,0 +1,25 @@
+################################################################################
+# Managed identity + federation
+################################################################################
+
+# User-assigned managed identity for discovery
+resource "azurerm_user_assigned_identity" "teleport_discovery_service" {
+  count = local.create ? 1 : 0
+
+  location            = var.azure_managed_identity_location
+  name                = var.azure_managed_identity_name
+  resource_group_name = var.azure_resource_group_name
+  tags                = local.apply_azure_tags
+}
+
+# Federated identity credential for the managed identity (trust Teleport proxy issuer)
+resource "azurerm_federated_identity_credential" "teleport_discovery_service" {
+  count = local.create ? 1 : 0
+
+  audience = ["api://AzureADTokenExchange"]
+  # Extract the host from proxy_addr (format: host:port) to construct the OIDC issuer URL
+  issuer    = replace(local.teleport_proxy_public_url, "/:[0-9]+.*/", "")
+  name      = var.azure_federated_identity_credential_name
+  parent_id = one(azurerm_user_assigned_identity.teleport_discovery_service[*].id)
+  subject   = "teleport-azure"
+}
diff --git a/integrations/terraform-modules/teleport/discovery/azure/azure_role_definition.tf b/integrations/terraform-modules/teleport/discovery/azure/azure_role_definition.tf
new file mode 100644
index 0000000000000..9482905cc5eb0
--- /dev/null
+++ b/integrations/terraform-modules/teleport/discovery/azure/azure_role_definition.tf
@@ -0,0 +1,45 @@
+################################################################################
+# Azure role for Teleport Discovery Service
+################################################################################
+
+locals {
+  azure_role_assignable_scopes = coalescelist(
+    var.azure_role_assignable_scopes,
+    [local.scope.subscription],
+  )
+  azure_role_assignment_scopes = coalescelist(
+    var.azure_role_assignment_scopes,
+    [local.scope.subscription],
+  )
+}
+
+# Custom role for discovery permissions
+resource "azurerm_role_definition" "teleport_discovery" {
+  count = local.create ? 1 : 0
+
+  assignable_scopes = local.azure_role_assignable_scopes
+  description       = "Azure role that allows a Teleport Discovery Service to discover VMs."
+  name              = var.azure_role_definition_name
+  scope             = local.scope.subscription
+
+  permissions {
+    actions = [
+      "Microsoft.Compute/virtualMachines/read",
+      "Microsoft.Compute/virtualMachines/runCommand/action",
+      "Microsoft.Compute/virtualMachines/runCommands/delete",
+      "Microsoft.Compute/virtualMachines/runCommands/read",
+      "Microsoft.Compute/virtualMachines/runCommands/write",
+      "Microsoft.Resources/subscriptions/read",
+    ]
+    not_actions = []
+  }
+}
+
+# Assign the custom role to the managed identity principal
+resource "azurerm_role_assignment" "teleport_discovery" {
+  for_each = local.create ? toset(local.azure_role_assignment_scopes) : []
+
+  principal_id       = one(azurerm_user_assigned_identity.teleport_discovery_service[*].principal_id)
+  role_definition_id = one(azurerm_role_definition.teleport_discovery[*].role_definition_resource_id)
+  scope              = each.value
+}
diff --git a/integrations/terraform-modules/teleport/discovery/azure/examples/single-subscription/README.md b/integrations/terraform-modules/teleport/discovery/azure/examples/single-subscription/README.md
new file mode 100644
index 0000000000000..d85c33d89077e
--- /dev/null
+++ b/integrations/terraform-modules/teleport/discovery/azure/examples/single-subscription/README.md
@@ -0,0 +1,40 @@
+<!-- BEGIN_TF_DOCS -->
+## Requirements
+
+| Name | Version |
+|------|---------|
+| <a name="requirement_terraform"></a> [terraform](#requirement\_terraform) | >= 1.5.7 |
+| <a name="requirement_azurerm"></a> [azurerm](#requirement\_azurerm) | >= 4.0 |
+| <a name="requirement_http"></a> [http](#requirement\_http) | >= 3.0 |
+| <a name="requirement_teleport"></a> [teleport](#requirement\_teleport) | >= 18.5.1 |
+
+## Providers
+
+| Name | Version |
+|------|---------|
+| <a name="provider_azurerm"></a> [azurerm](#provider\_azurerm) | >= 4.0 |
+| <a name="provider_teleport"></a> [teleport](#provider\_teleport) | >= 18.5.1 |
+
+## Modules
+
+| Name | Source | Version |
+|------|--------|---------|
+| <a name="module_azure_discovery"></a> [azure\_discovery](#module\_azure\_discovery) | ../.. | n/a |
+
+## Resources
+
+| Name | Type |
+|------|------|
+| [azurerm_resource_group.example](https://registry.terraform.io/providers/hashicorp/azurerm/latest/docs/resources/resource_group) | resource |
+| teleport_installer.example | resource |
+
+## Inputs
+
+No inputs.
+
+## Outputs
+
+| Name | Description |
+|------|-------------|
+| <a name="output_azure_discovery"></a> [azure\_discovery](#output\_azure\_discovery) | n/a |
+<!-- END_TF_DOCS -->
\ No newline at end of file
diff --git a/integrations/terraform-modules/teleport/discovery/azure/examples/single-subscription/main.tf b/integrations/terraform-modules/teleport/discovery/azure/examples/single-subscription/main.tf
new file mode 100644
index 0000000000000..0a4066c633de2
--- /dev/null
+++ b/integrations/terraform-modules/teleport/discovery/azure/examples/single-subscription/main.tf
@@ -0,0 +1,74 @@
+locals {
+  apply_azure_tags               = { origin = "example" }
+  apply_teleport_resource_labels = { origin = "example" }
+}
+
+module "azure_discovery" {
+  source = "../.."
+
+  azure_managed_identity_location = azurerm_resource_group.example.location
+  azure_resource_group_name       = azurerm_resource_group.example.name
+  teleport_discovery_group_name   = "cloud-discovery-group"
+  teleport_proxy_public_addr      = "example.teleport.sh:443"
+
+  # optional
+  match_azure_regions         = ["westus", "eastus"] // discover VMs in these US west and east regions.
+  match_azure_resource_groups = ["*"]                // discover VMs in all resource groups
+  match_azure_tags            = { "env" = ["example"] }
+  # Apply the additional Azure tag "origin=example" to all Azure resources created by this module
+  apply_azure_tags = local.apply_azure_tags
+  # Apply the additional Teleport label "origin=example" to all Teleport resources created by this module
+  apply_teleport_resource_labels = local.apply_teleport_resource_labels
+  # Using a custom installer script on discovered VMs instead of the default installer script.
+  teleport_installer_script_name = teleport_installer.example.metadata.name
+}
+
+resource "azurerm_resource_group" "example" {
+  name     = "example-resources"
+  location = "West US"
+  tags     = local.apply_azure_tags
+}
+
+
+resource "teleport_installer" "example" {
+  version = "v1"
+  metadata = {
+    name        = "custom-azure-installer-example"
+    description = "Example Teleport Installer"
+    labels      = local.apply_teleport_resource_labels
+  }
+
+  spec = {
+    # This "custom" script is actually the default installer script (you can view the default installer to verify: `$ tctl get installer/default-installer`).
+    # Edit it to customize the commands that the Teleport Discovery Service
+    # configures virtual machines to run to install Teleport on startup.
+    script = <<EOF
+#!/usr/bin/env sh
+set -eu
+
+
+INSTALL_SCRIPT_URL="https://{{.PublicProxyAddr}}/scripts/install.sh"
+
+echo "Offloading the installation part to the generic Teleport install script hosted at: $INSTALL_SCRIPT_URL"
+
+TEMP_INSTALLER_SCRIPT="$(mktemp)"
+curl -sSf "$INSTALL_SCRIPT_URL" -o "$TEMP_INSTALLER_SCRIPT"
+
+chmod +x "$TEMP_INSTALLER_SCRIPT"
+
+sudo -E "$TEMP_INSTALLER_SCRIPT" || (echo "The install script ($TEMP_INSTALLER_SCRIPT) returned a non-zero exit code" && exit 1)
+rm "$TEMP_INSTALLER_SCRIPT"
+
+
+echo "Configuring the Teleport agent"
+
+set +x
+TELEPORT_BINARY=/usr/local/bin/teleport
+[ -z "$${TELEPORT_INSTALL_SUFFIX:-}" ] || TELEPORT_BINARY=/opt/teleport/$${TELEPORT_INSTALL_SUFFIX}/bin/teleport
+
+sudo -E "$TELEPORT_BINARY" install autodiscover-node --public-proxy-addr={{.PublicProxyAddr}} --teleport-package={{.TeleportPackage}} --repo-channel={{.RepoChannel}} --auto-upgrade={{.AutomaticUpgrades}} --azure-client-id={{.AzureClientID}} $@
+  }
+}
+EOF
+  }
+}
diff --git a/integrations/terraform-modules/teleport/discovery/azure/examples/single-subscription/outputs.tf b/integrations/terraform-modules/teleport/discovery/azure/examples/single-subscription/outputs.tf
new file mode 100644
index 0000000000000..016aa83e62156
--- /dev/null
+++ b/integrations/terraform-modules/teleport/discovery/azure/examples/single-subscription/outputs.tf
@@ -0,0 +1,3 @@
+output "azure_discovery" {
+  value = module.azure_discovery
+}
diff --git a/integrations/terraform-modules/teleport/discovery/azure/examples/single-subscription/variables.tf b/integrations/terraform-modules/teleport/discovery/azure/examples/single-subscription/variables.tf
new file mode 100644
index 0000000000000..e69de29bb2d1d
diff --git a/integrations/terraform-modules/teleport/discovery/azure/examples/single-subscription/versions.tf b/integrations/terraform-modules/teleport/discovery/azure/examples/single-subscription/versions.tf
new file mode 100644
index 0000000000000..1930a0e48fbac
--- /dev/null
+++ b/integrations/terraform-modules/teleport/discovery/azure/examples/single-subscription/versions.tf
@@ -0,0 +1,20 @@
+terraform {
+  required_version = ">= 1.5.7"
+
+  required_providers {
+    azurerm = {
+      source  = "hashicorp/azurerm"
+      version = ">= 4.0"
+    }
+
+    http = {
+      source  = "hashicorp/http"
+      version = ">= 3.0"
+    }
+
+    teleport = {
+      source  = "terraform.releases.teleport.dev/gravitational/teleport"
+      version = ">= 18.5.1"
+    }
+  }
+}
diff --git a/integrations/terraform-modules/teleport/discovery/azure/main.tf b/integrations/terraform-modules/teleport/discovery/azure/main.tf
new file mode 100644
index 0000000000000..742ae0ec1360d
--- /dev/null
+++ b/integrations/terraform-modules/teleport/discovery/azure/main.tf
@@ -0,0 +1,28 @@
+locals {
+  create                = var.create
+  azure_subscription_id = data.azurerm_client_config.this.subscription_id
+  scope = {
+    subscription = "/subscriptions/${local.azure_subscription_id}"
+  }
+  azure_tenant_id = data.azurerm_client_config.this.tenant_id
+  apply_azure_tags = merge(var.apply_azure_tags, {
+    "TeleportCluster"     = local.teleport_cluster_name
+    "TeleportIntegration" = local.teleport_integration_name
+    "TeleportIACTool"     = "terraform"
+  })
+  apply_teleport_resource_labels = merge(var.apply_teleport_resource_labels, {
+    "teleport.dev/iac-tool" = "terraform",
+  })
+
+  teleport_cluster_name         = local.teleport_ping.cluster_name
+  teleport_ping                 = jsondecode(data.http.teleport_ping.response_body)
+  teleport_proxy_public_url     = "https://${var.teleport_proxy_public_addr}"
+  teleport_resource_name_suffix = try("azure-${local.azure_subscription_id}", "")
+}
+
+data "azurerm_client_config" "this" {}
+
+data "http" "teleport_ping" {
+  request_headers = { Accept = "application/json" }
+  url             = "${local.teleport_proxy_public_url}/webapi/find"
+}
diff --git a/integrations/terraform-modules/teleport/discovery/azure/outputs.tf b/integrations/terraform-modules/teleport/discovery/azure/outputs.tf
new file mode 100644
index 0000000000000..1862407de376a
--- /dev/null
+++ b/integrations/terraform-modules/teleport/discovery/azure/outputs.tf
@@ -0,0 +1,24 @@
+output "azure_discovery_role_definition" {
+  description = "The Azure role definition for Teleport discovery service."
+  value       = one(azurerm_role_definition.teleport_discovery[*])
+}
+
+output "azure_oidc_integration_managed_identity" {
+  description = "Managed identity used by the Teleport Azure OIDC integration."
+  value       = one(azurerm_user_assigned_identity.teleport_discovery_service[*])
+}
+
+output "teleport_discovery_config_name" {
+  description = "Name of the Teleport dynamic `discovery_config`. Configuration details can be viewed with `tctl get discovery_config/<name>`. Teleport Discovery Service instances will use this `discovery_config` if they are in the same discovery group as the `discovery_config`."
+  value       = try(teleport_discovery_config.azure[0].header.metadata.name, null)
+}
+
+output "teleport_integration_name" {
+  description = "Name of the Teleport `integration` resource. The integration resource configures Teleport Discovery Service instances to assume an Azure managed identity for discovery using Azure OIDC federation. Integration details can be viewed with `tctl get integrations/<name>` or by visiting the Teleport web UI under 'Zero Trust Access' > 'Integrations'."
+  value       = try(teleport_integration.azure_oidc[0].metadata.name, null)
+}
+
+output "teleport_provision_token_name" {
+  description = "Name of the Teleport provision `token` that allows Teleport nodes to join the Teleport cluster using Azure credentials. Token details can be viewed with `tctl get token/<name>`."
+  value       = nonsensitive(try(teleport_provision_token.azure[0].metadata.name, null))
+}
diff --git a/integrations/terraform-modules/teleport/discovery/azure/teleport_discovery_config.tf b/integrations/terraform-modules/teleport/discovery/azure/teleport_discovery_config.tf
new file mode 100644
index 0000000000000..f51fcd33ef96f
--- /dev/null
+++ b/integrations/terraform-modules/teleport/discovery/azure/teleport_discovery_config.tf
@@ -0,0 +1,44 @@
+################################################################################
+# Teleport cluster discovery config
+################################################################################
+
+# Teleport discovery config targeting Azure VMs
+resource "teleport_discovery_config" "azure" {
+  count = local.create ? 1 : 0
+
+  header = {
+    metadata = {
+      description = "Configure Teleport to discover Azure resources."
+      labels      = local.apply_teleport_resource_labels
+      name = (
+        var.teleport_discovery_config_use_name_prefix
+        ? "${var.teleport_discovery_config_name}-${local.teleport_resource_name_suffix}"
+        : var.teleport_discovery_config_name
+      )
+    }
+    version = "v1"
+  }
+
+  spec = {
+    azure = [{
+      install_params = {
+        join_method = "azure"
+        join_token  = try(teleport_provision_token.azure[0].metadata.name, "")
+        script_name = var.teleport_installer_script_name
+      }
+      integration     = try(teleport_integration.azure_oidc[0].metadata.name, "")
+      regions         = var.match_azure_regions
+      resource_groups = compact(var.match_azure_resource_groups)
+      subscriptions   = var.match_azure_subscriptions
+      tags            = var.match_azure_tags
+      types           = ["vm"]
+    }]
+    discovery_group = var.teleport_discovery_group_name
+  }
+
+  depends_on = [
+    # Don't create the discovery config until the integration is in place.
+    # This should avoid a ~5 minute delay that can happen if the discovery service tries to run before it has permissions.
+    teleport_integration.azure_oidc,
+  ]
+}
diff --git a/integrations/terraform-modules/teleport/discovery/azure/teleport_integration.tf b/integrations/terraform-modules/teleport/discovery/azure/teleport_integration.tf
new file mode 100644
index 0000000000000..5181c5b82ac2b
--- /dev/null
+++ b/integrations/terraform-modules/teleport/discovery/azure/teleport_integration.tf
@@ -0,0 +1,37 @@
+################################################################################
+# Azure OIDC federation 
+################################################################################
+
+locals {
+  teleport_integration_name = (
+    var.teleport_integration_use_name_prefix
+    ? "${var.teleport_integration_name}-${local.teleport_resource_name_suffix}"
+    : var.teleport_integration_name
+  )
+}
+
+# Teleport Azure OIDC integration using the selected identity
+resource "teleport_integration" "azure_oidc" {
+  count = local.create ? 1 : 0
+
+  metadata = {
+    description = "Azure OIDC integration for Azure discovery."
+    labels      = local.apply_teleport_resource_labels
+    name        = local.teleport_integration_name
+  }
+  spec = {
+    azure_oidc = {
+      client_id = one(azurerm_user_assigned_identity.teleport_discovery_service[*].client_id)
+      tenant_id = local.azure_tenant_id
+    }
+  }
+  sub_kind = "azure-oidc"
+  version  = "v1"
+
+  depends_on = [
+    # Don't create the integration until the federated credential and permissions are in place.
+    # This should avoid a ~5 minute delay that can happen if the discovery service tries to run before it has permissions.
+    azurerm_federated_identity_credential.teleport_discovery_service,
+    azurerm_role_assignment.teleport_discovery
+  ]
+}
diff --git a/integrations/terraform-modules/teleport/discovery/azure/teleport_provision_token.tf b/integrations/terraform-modules/teleport/discovery/azure/teleport_provision_token.tf
new file mode 100644
index 0000000000000..eb6a9e2a37151
--- /dev/null
+++ b/integrations/terraform-modules/teleport/discovery/azure/teleport_provision_token.tf
@@ -0,0 +1,28 @@
+################################################################################
+# Teleport cluster provision token for Azure
+################################################################################
+
+# Teleport provision token for Azure join
+resource "teleport_provision_token" "azure" {
+  count = local.create ? 1 : 0
+
+  metadata = {
+    description = "Allow Teleport nodes to join the cluster using Azure credentials."
+    labels      = local.apply_teleport_resource_labels
+    name = (
+      var.teleport_provision_token_use_name_prefix
+      ? "${var.teleport_provision_token_name}-${local.teleport_resource_name_suffix}"
+      : var.teleport_provision_token_name
+    )
+  }
+  spec = {
+    azure = {
+      allow = [{
+        subscription = local.azure_subscription_id
+      }]
+    }
+    join_method = "azure"
+    roles       = ["Node"]
+  }
+  version = "v2"
+}
diff --git a/integrations/terraform-modules/teleport/discovery/azure/variables.tf b/integrations/terraform-modules/teleport/discovery/azure/variables.tf
new file mode 100644
index 0000000000000..cba99129d2645
--- /dev/null
+++ b/integrations/terraform-modules/teleport/discovery/azure/variables.tf
@@ -0,0 +1,176 @@
+################################################################################
+# Required variables
+################################################################################
+
+variable "azure_managed_identity_location" {
+  type        = string
+  description = "Azure region (location) where the managed identity will be created (e.g., \"westus\")."
+  nullable    = false
+}
+
+variable "azure_resource_group_name" {
+  type        = string
+  description = "Name of an existing Azure Resource Group where Azure resources will be created."
+  nullable    = false
+}
+
+variable "teleport_discovery_group_name" {
+  description = "Teleport discovery group to use. For discovery configuration to apply, this name must match at least one Teleport Discovery Service instance's configured `discovery_group`. For Teleport Cloud clusters, use \"cloud-discovery-group\"."
+  type        = string
+  nullable    = false
+}
+
+variable "teleport_proxy_public_addr" {
+  description = "Teleport cluster proxy public address in the form <host:port> (no URL scheme)."
+  type        = string
+  nullable    = false
+
+  validation {
+    condition     = !strcontains(var.teleport_proxy_public_addr, "://")
+    error_message = "Must not contain a URL scheme."
+  }
+
+  validation {
+    condition     = var.teleport_proxy_public_addr == "" || strcontains(var.teleport_proxy_public_addr, ":")
+    error_message = "The address must be in the form <host:port>."
+  }
+}
+
+################################################################################
+# Optional variables
+################################################################################
+
+variable "apply_azure_tags" {
+  type        = map(string)
+  description = "Additional Azure tags to apply to all created Azure resources."
+  default     = {}
+  nullable    = false
+}
+
+variable "apply_teleport_resource_labels" {
+  description = "Additional Teleport resource labels to apply to all created Teleport resources."
+  type        = map(string)
+  default     = {}
+  nullable    = false
+}
+
+variable "azure_federated_identity_credential_name" {
+  description = "Name of the Azure federated identity credential created for workload identity federation."
+  type        = string
+  default     = "teleport-federation"
+  nullable    = false
+}
+
+variable "azure_managed_identity_name" {
+  description = "Name of the Azure user-assigned managed identity created for Teleport Discovery."
+  type        = string
+  default     = "discovery-identity"
+  nullable    = false
+}
+
+variable "azure_role_assignable_scopes" {
+  default     = []
+  description = "The scopes at which the Azure discovery role will be assignable. Defaults to the current subscription."
+  nullable    = false
+  type        = list(string)
+}
+
+variable "azure_role_assignment_scopes" {
+  default     = []
+  description = "The scopes at which the Azure discovery role will be assigned. Must be a management group ID like /providers/Microsoft.Management/managementGroups/<name> to support wildcard ('*') Azure subscription discovery. Defaults to the subscription of the azurerm provider."
+  nullable    = false
+  type        = list(string)
+}
+
+variable "azure_role_definition_name" {
+  description = "Name for the Azure custom role definition created for Teleport Discovery."
+  type        = string
+  default     = "teleport-discovery"
+  nullable    = false
+}
+
+variable "create" {
+  description = "Toggle creation of all resources."
+  type        = bool
+  default     = true
+  nullable    = false
+}
+
+variable "match_azure_regions" {
+  type        = list(string)
+  description = "Azure regions to discover. Defaults to [\"*\"] which matches all regions. Region names should be the programmatic region name, e.g., \"westus\"."
+  default     = ["*"]
+  nullable    = false
+}
+
+variable "match_azure_resource_groups" {
+  type        = list(string)
+  description = "Azure resource groups to scan for VMs. Defaults to [\"*\"] which matches all resource groups."
+  default     = ["*"]
+  nullable    = false
+}
+
+variable "match_azure_subscriptions" {
+  type        = list(string)
+  description = "Azure subscriptions to scan for VMs. Defaults to [\"*\"] which matches all subscriptions."
+  default     = ["*"]
+  nullable    = false
+}
+
+variable "match_azure_tags" {
+  type        = map(list(string))
+  description = "Tag filters for VM discovery; matches VMs with these tags. Defaults to {\"*\" = [\"*\"]} which matches all tags."
+  default = {
+    "*" = ["*"]
+  }
+  nullable = false
+}
+
+variable "teleport_discovery_config_name" {
+  description = "Name for the `teleport_discovery_config` resource."
+  type        = string
+  default     = "discovery"
+  nullable    = false
+}
+
+variable "teleport_discovery_config_use_name_prefix" {
+  description = "Whether `teleport_discovery_config_name` is used as a name prefix (true) or as the exact name (false)."
+  type        = bool
+  default     = true
+  nullable    = false
+}
+
+variable "teleport_installer_script_name" {
+  type        = string
+  description = "Name of an existing Teleport installer script to use."
+  default     = "default-installer"
+  nullable    = false
+}
+
+variable "teleport_integration_name" {
+  description = "Name for the `teleport_integration` resource."
+  type        = string
+  default     = "discovery"
+  nullable    = false
+}
+
+variable "teleport_integration_use_name_prefix" {
+  description = "Whether `teleport_integration_name` is used as a name prefix (true) or as the exact name (false)."
+  type        = bool
+  default     = true
+  nullable    = false
+}
+
+variable "teleport_provision_token_name" {
+  description = "Name for the `teleport_provision_token` resource."
+  type        = string
+  default     = "discovery"
+  nullable    = false
+}
+
+variable "teleport_provision_token_use_name_prefix" {
+  description = "Whether `teleport_provision_token_name` is used as a name prefix (true) or as the exact name (false)."
+  type        = bool
+  default     = true
+  nullable    = false
+}
diff --git a/integrations/terraform-modules/teleport/discovery/azure/versions.tf b/integrations/terraform-modules/teleport/discovery/azure/versions.tf
new file mode 100644
index 0000000000000..1930a0e48fbac
--- /dev/null
+++ b/integrations/terraform-modules/teleport/discovery/azure/versions.tf
@@ -0,0 +1,20 @@
+terraform {
+  required_version = ">= 1.5.7"
+
+  required_providers {
+    azurerm = {
+      source  = "hashicorp/azurerm"
+      version = ">= 4.0"
+    }
+
+    http = {
+      source  = "hashicorp/http"
+      version = ">= 3.0"
+    }
+
+    teleport = {
+      source  = "terraform.releases.teleport.dev/gravitational/teleport"
+      version = ">= 18.5.1"
+    }
+  }
+}