diff --git a/pkg/cloudprovider/providers/azure/BUILD b/pkg/cloudprovider/providers/azure/BUILD
index 1b9b3d44825..4999c921f65 100644
--- a/pkg/cloudprovider/providers/azure/BUILD
+++ b/pkg/cloudprovider/providers/azure/BUILD
@@ -74,6 +74,7 @@ go_test(
     srcs = [
         "azure_backoff_test.go",
         "azure_cache_test.go",
+        "azure_instances_test.go",
         "azure_loadbalancer_test.go",
         "azure_metrics_test.go",
         "azure_routes_test.go",
diff --git a/pkg/cloudprovider/providers/azure/azure_fakes.go b/pkg/cloudprovider/providers/azure/azure_fakes.go
index 2434c5bb314..54d9d639659 100644
--- a/pkg/cloudprovider/providers/azure/azure_fakes.go
+++ b/pkg/cloudprovider/providers/azure/azure_fakes.go
@@ -302,6 +302,13 @@ func (fVMC *fakeAzureVirtualMachinesClient) List(ctx context.Context, resourceGr
 	return result, nil
 }
 
+func (fVMC *fakeAzureVirtualMachinesClient) setFakeStore(store map[string]map[string]compute.VirtualMachine) {
+	fVMC.mutex.Lock()
+	defer fVMC.mutex.Unlock()
+
+	fVMC.FakeStore = store
+}
+
 type fakeAzureSubnetsClient struct {
 	mutex     *sync.Mutex
 	FakeStore map[string]map[string]network.Subnet
diff --git a/pkg/cloudprovider/providers/azure/azure_instances_test.go b/pkg/cloudprovider/providers/azure/azure_instances_test.go
new file mode 100644
index 00000000000..106cb0f2767
--- /dev/null
+++ b/pkg/cloudprovider/providers/azure/azure_instances_test.go
@@ -0,0 +1,115 @@
+/*
+Copyright 2018 The Kubernetes Authors.
+
+Licensed under the Apache License, Version 2.0 (the "License");
+you may not use this file except in compliance with the License.
+You may obtain a copy of the License at
+
+    http://www.apache.org/licenses/LICENSE-2.0
+
+Unless required by applicable law or agreed to in writing, software
+distributed under the License is distributed on an "AS IS" BASIS,
+WITHOUT WARRANTIES OR CONDITIONS OF ANY KIND, either express or implied.
+See the License for the specific language governing permissions and
+limitations under the License.
+*/
+
+package azure
+
+import (
+	"context"
+	"fmt"
+	"net"
+	"net/http"
+	"testing"
+
+	"github.com/Azure/azure-sdk-for-go/services/compute/mgmt/2018-04-01/compute"
+	"k8s.io/apimachinery/pkg/types"
+)
+
+func setTestVirtualMachines(c *Cloud, vmList []string) {
+	virtualMachineClient := c.VirtualMachinesClient.(*fakeAzureVirtualMachinesClient)
+	store := map[string]map[string]compute.VirtualMachine{
+		"rg": make(map[string]compute.VirtualMachine),
+	}
+
+	for i := range vmList {
+		nodeName := vmList[i]
+		instanceID := fmt.Sprintf("/subscriptions/script/resourceGroups/rg/providers/Microsoft.Compute/virtualMachines/%s", nodeName)
+		store["rg"][nodeName] = compute.VirtualMachine{
+			Name:     &nodeName,
+			ID:       &instanceID,
+			Location: &c.Location,
+		}
+	}
+
+	virtualMachineClient.setFakeStore(store)
+}
+
+func TestInstanceID(t *testing.T) {
+	cloud := getTestCloud()
+	cloud.metadata = &InstanceMetadata{}
+
+	testcases := []struct {
+		name         string
+		vmList       []string
+		nodeName     string
+		metadataName string
+		expected     string
+		expectError  bool
+	}{
+		{
+			name:         "InstanceID should get instanceID if node's name are equal to metadataName",
+			vmList:       []string{"vm1"},
+			nodeName:     "vm1",
+			metadataName: "vm1",
+			expected:     "/subscriptions/script/resourceGroups/rg/providers/Microsoft.Compute/virtualMachines/vm1",
+		},
+		{
+			name:         "InstanceID should get instanceID from Azure API if node is not local instance",
+			vmList:       []string{"vm2"},
+			nodeName:     "vm2",
+			metadataName: "vm1",
+			expected:     "/subscriptions/script/resourceGroups/rg/providers/Microsoft.Compute/virtualMachines/vm2",
+		},
+		{
+			name:        "InstanceID should report error if VM doesn't exist",
+			vmList:      []string{"vm1"},
+			nodeName:    "vm3",
+			expectError: true,
+		},
+	}
+
+	for _, test := range testcases {
+		listener, err := net.Listen("tcp", "127.0.0.1:0")
+		if err != nil {
+			t.Errorf("Test [%s] unexpected error: %v", test.name, err)
+		}
+
+		mux := http.NewServeMux()
+		mux.Handle("/instance/compute", http.HandlerFunc(func(w http.ResponseWriter, r *http.Request) {
+			fmt.Fprintf(w, fmt.Sprintf("{\"name\":\"%s\"}", test.metadataName))
+		}))
+		go func() {
+			http.Serve(listener, mux)
+		}()
+		defer listener.Close()
+
+		cloud.metadata.baseURL = "http://" + listener.Addr().String() + "/"
+		setTestVirtualMachines(cloud, test.vmList)
+		instanceID, err := cloud.InstanceID(context.Background(), types.NodeName(test.nodeName))
+		if test.expectError {
+			if err == nil {
+				t.Errorf("Test [%s] unexpected nil err", test.name)
+			}
+		} else {
+			if err != nil {
+				t.Errorf("Test [%s] unexpected error: %v", test.name, err)
+			}
+		}
+
+		if instanceID != test.expected {
+			t.Errorf("Test [%s] unexpected instanceID: %s, expected %q", test.name, instanceID, test.expected)
+		}
+	}
+}
diff --git a/pkg/cloudprovider/providers/azure/azure_test.go b/pkg/cloudprovider/providers/azure/azure_test.go
index 8457ec92b7b..d2f4184eba8 100644
--- a/pkg/cloudprovider/providers/azure/azure_test.go
+++ b/pkg/cloudprovider/providers/azure/azure_test.go
@@ -1715,8 +1715,8 @@ func TestGetZone(t *testing.T) {
 		mux.Handle("/v1/InstanceInfo/FD", http.HandlerFunc(func(w http.ResponseWriter, r *http.Request) {
 			fmt.Fprintf(w, test.faultDomain)
 		}))
-		mux.Handle("/instance/compute/zone", http.HandlerFunc(func(w http.ResponseWriter, r *http.Request) {
-			fmt.Fprintf(w, test.zone)
+		mux.Handle("/instance/compute", http.HandlerFunc(func(w http.ResponseWriter, r *http.Request) {
+			fmt.Fprintf(w, fmt.Sprintf("{\"zone\":\"%s\"}", test.zone))
 		}))
 		go func() {
 			http.Serve(listener, mux)