diff --git a/lib/ansible/modules/cloud/azure/azure_rm_managed_disk.py b/lib/ansible/modules/cloud/azure/azure_rm_managed_disk.py
new file mode 100644
index 00000000000..a22a7f2c470
--- /dev/null
+++ b/lib/ansible/modules/cloud/azure/azure_rm_managed_disk.py
@@ -0,0 +1,339 @@
+#!/usr/bin/python
+#
+# Copyright (c) 2017 Bruno Medina Bolanos Cacho <bruno.medina@microsoft.com>
+#
+# GNU General Public License v3.0+ (see COPYING or https://www.gnu.org/licenses/gpl-3.0.txt)
+
+from __future__ import absolute_import, division, print_function
+__metaclass__ = type
+
+
+ANSIBLE_METADATA = {'metadata_version': '1.1',
+                    'status': ['preview'],
+                    'supported_by': 'community'}
+
+
+DOCUMENTATION = '''
+---
+module: azure_rm_managed_disk
+
+version_added: "2.4"
+
+short_description: Manage Azure Manage Disks
+
+description:
+    - Create, update and delete an Azure Managed Disk
+
+options:
+    resource_group:
+        description:
+            - "Name of a resource group where the managed disk exists or will be created."
+        required: true
+    name:
+        description:
+            - Name of the managed disk
+        required: true
+    state:
+        description:
+            - Assert the state of the managed disk. Use 'present' to create or update a managed disk and
+              'absent' to delete a managed disk.
+        default: present
+        choices:
+            - absent
+            - present
+        required: false
+    location:
+        description:
+            - Valid Azure location. Defaults to location of the resource group.
+        default: resource_group location
+        required: false
+    storage_account_type:
+        description:
+            - "Type of storage for the managed disk: 'Standard_LRS'  or 'Premium_LRS'. If not specified the disk is created 'Standard_LRS'"
+        choices:
+            - Standard_LRS
+            - Premium_LRS
+        required: false
+    create_option:
+        description:
+            - "Allowed values: empty, import, copy. 'import' from a VHD file in 'source_uri' and 'copy' from previous managed disk 'source_resource_uri'."
+        choices:
+            - empty
+            - import
+            - copy
+        required: false
+    source_uri:
+        description:
+            - URI to a valid VHD file to be used when 'create_option' is 'import'.
+        required: false
+    source_resource_uri:
+        description:
+            - The resource ID of the managed disk to copy when 'create_option' is 'copy'.
+        required: false
+    os_type:
+        description:
+            - "Type of Operating System: 'linux' or 'windows'. Used when 'create_option' is either 'copy' or 'import' and the source is an OS disk."
+        choices:
+            - linux
+            - windows
+        required: false
+    disk_size_gb:
+        description:
+            -Size in GB of the managed disk to be created. If 'create_option' is 'copy' then the value must be greater than or equal to the source's size.
+        required: true
+    tags:
+        description:
+            - Tags to assign to the managed disk.
+        required: false
+
+extends_documentation_fragment:
+    - azure
+    - azure_tags
+author:
+    - "Bruno Medina (@brusMX)"
+'''
+
+EXAMPLES = '''
+    - name: Create managed disk
+      azure_rm_managed_disk:
+        name: mymanageddisk
+        location: eastus
+        resource_group: Testing
+        disk_size_gb: 4
+
+    - name: Delete managed disk
+      azure_rm_manage_disk:
+        name: mymanageddisk
+        location: eastus
+        resource_group: Testing
+        state: absent
+'''
+
+RETURN = '''
+id:
+    description: The managed disk resource ID.
+    returned: always
+    type: dict
+state:
+    description: Current state of the managed disk
+    returned: always
+    type: dict
+changed:
+    description: Whether or not the resource has changed
+    returned: always
+    type: bool
+'''
+
+import re
+
+
+from ansible.module_utils.azure_rm_common import AzureRMModuleBase
+try:
+    from msrestazure.azure_exceptions import CloudError
+    from azure.mgmt.compute.models import DiskCreateOption
+    from azure.mgmt.compute.models import DiskSku
+except ImportError:
+    # This is handled in azure_rm_common
+    pass
+
+
+def managed_disk_to_dict(managed_disk):
+    os_type = None
+    if managed_disk.os_type:
+        os_type = managed_disk.os_type.name
+    return dict(
+        id=managed_disk.id,
+        name=managed_disk.name,
+        location=managed_disk.location,
+        tags=managed_disk.tags,
+        disk_size_gb=managed_disk.disk_size_gb,
+        os_type=os_type,
+        storage_account_type='Premium_LRS' if managed_disk.sku.tier == 'Premium' else 'Standard_LRS'
+    )
+
+
+class AzureRMManagedDisk(AzureRMModuleBase):
+    """Configuration class for an Azure RM Managed Disk resource"""
+    def __init__(self):
+        self.module_arg_spec = dict(
+            resource_group=dict(
+                type='str',
+                required=True
+            ),
+            name=dict(
+                type='str',
+                required=True
+            ),
+            state=dict(
+                type='str',
+                required=False,
+                default='present',
+                choices=['present', 'absent']
+            ),
+            location=dict(
+                type='str',
+                required=False
+            ),
+            storage_account_type=dict(
+                type='str',
+                required=False,
+                choices=['Standard_LRS', 'Premium_LRS']
+            ),
+            create_option=dict(
+                type='str',
+                required=False,
+                choices=['empty', 'import', 'copy']
+            ),
+            source_uri=dict(
+                type='str',
+                required=False
+            ),
+            source_resource_uri=dict(
+                type='str',
+                required=False
+            ),
+            os_type=dict(
+                type='str',
+                required=False,
+                choices=['linux', 'windows']
+            ),
+            disk_size_gb=dict(
+                type='int',
+                required=False
+            )
+        )
+        required_if = [
+            ('create_option', 'import', ['source_uri']),
+            ('create_option', 'copy', ['source_resource_uri']),
+            ('state', 'present', ['disk_size_gb'])
+        ]
+        self.results = dict(
+            changed=False,
+            state=dict())
+
+        self.resource_group = None
+        self.name = None
+        self.location = None
+        self.storage_account_type = None
+        self.create_option = None
+        self.source_uri = None
+        self.source_resource_uri = None
+        self.os_type = None
+        self.disk_size_gb = None
+        self.tags = None
+        super(AzureRMManagedDisk, self).__init__(
+            derived_arg_spec=self.module_arg_spec,
+            required_if=required_if,
+            supports_check_mode=True,
+            supports_tags=True)
+
+    def exec_module(self, **kwargs):
+        """Main module execution method"""
+        for key in list(self.module_arg_spec.keys()) + ['tags']:
+            setattr(self, key, kwargs[key])
+        results = dict()
+        resource_group = None
+        response = None
+        try:
+            resource_group = self.get_resource_group(self.resource_group)
+        except CloudError:
+            self.fail(
+                'resource group {} not found'
+                .format(self.resource_group))
+        if not self.location:
+            self.location = resource_group.location
+        if self.state == 'present':
+            self.results['state'] = self.create_or_update_managed_disk()
+        elif self.state == 'absent':
+            self.delete_managed_disk()
+        return self.results
+
+    def create_or_update_managed_disk(self):
+        # Scaffolding empty managed disk
+        disk_params = {}
+        creation_data = {}
+        disk_params['location'] = self.location
+        disk_params['tags'] = self.tags
+        if self.storage_account_type:
+            storage_account_type = DiskSku(self.storage_account_type)
+            disk_params['sku'] = storage_account_type
+        disk_params['disk_size_gb'] = self.disk_size_gb
+        # TODO: Add support for EncryptionSettings
+        creation_data['create_option'] = DiskCreateOption.empty
+        if self.create_option == 'import':
+            creation_data['create_option'] = DiskCreateOption.import_enum
+            creation_data['source_uri'] = self.source_uri
+        elif self.create_option == 'copy':
+            creation_data['create_option'] = DiskCreateOption.copy
+            creation_data['source_resource_id'] = self.source_resource_uri
+        try:
+            # CreationData cannot be changed after creation
+            disk_params['creation_data'] = creation_data
+            found_prev_disk = self.get_managed_disk()
+            if found_prev_disk:
+                if not self.is_different(found_prev_disk, disk_params):
+                    return found_prev_disk
+            if not self.check_mode:
+                poller = self.compute_client.disks.create_or_update(
+                    self.resource_group,
+                    self.name,
+                    disk_params)
+                aux = self.get_poller_result(poller)
+                result = managed_disk_to_dict(aux)
+            else:
+                result = True
+            self.results['changed'] = True
+        except CloudError as e:
+            self.fail("Error creating the managed disk: {0}".format(str(e)))
+        return result
+
+    # This method accounts for the difference in structure between the
+    # Azure retrieved disk and the parameters for the new disk to be created.
+    def is_different(self, found_disk, new_disk):
+        resp = False
+        if new_disk.get('disk_size_gb'):
+            if not found_disk['disk_size_gb'] == new_disk['disk_size_gb']:
+                resp = True
+        if new_disk.get('sku'):
+            if not found_disk['storage_account_type'] == new_disk['sku'].name:
+                resp = True
+        # Check how to implement tags
+        if new_disk.get('tags') is not None:
+            if not found_disk['tags'] == new_disk['tags']:
+                resp = True
+        return resp
+
+    def delete_managed_disk(self):
+        try:
+            if not self.check_mode:
+                poller = self.compute_client.disks.delete(
+                    self.resource_group,
+                    self.name)
+                result = self.get_poller_result(poller)
+            else:
+                result = True
+            self.results['changed'] = True
+        except CloudError as e:
+            self.fail("Error deleting the managed disk: {0}".format(str(e)))
+        return result
+
+    def get_managed_disk(self):
+        resp = False
+        try:
+            resp = self.compute_client.disks.get(
+                self.resource_group,
+                self.name)
+        except CloudError as e:
+            self.log('Did not find managed disk')
+        if resp:
+            resp = managed_disk_to_dict(
+                resp)
+        return resp
+
+
+def main():
+    """Main execution"""
+    AzureRMManagedDisk()
+
+if __name__ == '__main__':
+    main()
diff --git a/lib/ansible/modules/cloud/azure/azure_rm_managed_disk_facts.py b/lib/ansible/modules/cloud/azure/azure_rm_managed_disk_facts.py
new file mode 100644
index 00000000000..dc89e5af05a
--- /dev/null
+++ b/lib/ansible/modules/cloud/azure/azure_rm_managed_disk_facts.py
@@ -0,0 +1,217 @@
+#!/usr/bin/python
+#
+# Copyright (c) 2016 Bruno Medina Bolanos Cacho, <bruno.medina@microsoft.com>
+#
+# This file is part of Ansible
+#
+# Ansible is free software: you can redistribute it and/or modify
+# it under the terms of the GNU General Public License as published by
+# the Free Software Foundation, either version 3 of the License, or
+# (at your option) any later version.
+#
+# Ansible is distributed in the hope that it will be useful,
+# but WITHOUT ANY WARRANTY; without even the implied warranty of
+# MERCHANTABILITY or FITNESS FOR A PARTICULAR PURPOSE.  See the
+# GNU General Public License for more details.
+#
+# GNU General Public License v3.0+ (see COPYING or https://www.gnu.org/licenses/gpl-3.0.txt)
+
+from __future__ import absolute_import, division, print_function
+__metaclass__ = type
+
+ANSIBLE_METADATA = {'metadata_version': '1.1',
+                    'status': ['preview'],
+                    'supported_by': 'community'}
+
+DOCUMENTATION = '''
+---
+module: azure_rm_managed_disk_facts
+
+version_added: "2.4"
+
+short_description: Get managed disk facts.
+
+description:
+    - Get facts for a specific managed disk or all managed disks.
+
+options:
+    name:
+        description:
+            - Limit results to a specific managed disk
+        required: false
+        default: null
+    resource_group:
+        description:
+            - Limit results to a specific resource group
+        required: false
+        default: null
+    tags:
+        description:
+            - Limit results by providing a list of tags. Format tags as 'key' or 'key:value'.
+        required: false
+        default: null
+
+extends_documentation_fragment:
+    - azure
+
+author:
+    - "Bruno Medina (@brusMX)"
+'''
+
+EXAMPLES = '''
+    - name: Get facts for one managed disk
+      azure_rm_managed_disk_facts:
+        name: Testing
+        resource_group: TestRG
+
+    - name: Get facts for all managed disks
+      azure_rm_managed_disk_facts:
+
+    - name: Get facts by tags
+      azure_rm_managed_disk_facts:
+        tags:
+          - testing
+'''
+
+RETURN = '''
+azure_managed_disk:
+    description: List of managed disk dicts.
+    returned: always
+    type: list
+'''
+
+from ansible.module_utils.azure_rm_common import AzureRMModuleBase
+
+try:
+    from msrestazure.azure_exceptions import CloudError
+except:
+    # handled in azure_rm_common
+    pass
+
+
+def managed_disk_to_dict(managed_disk):
+    os_type = None
+    if managed_disk.os_type:
+        os_type = managed_disk.os_type.name
+    return dict(
+        id=managed_disk.id,
+        name=managed_disk.name,
+        location=managed_disk.location,
+        tags=managed_disk.tags,
+        disk_size_gb=managed_disk.disk_size_gb,
+        os_type=os_type,
+        storage_account_type='Premium_LRS' if managed_disk.sku.tier == 'Premium' else 'Standard_LRS'
+    )
+
+
+class AzureRMManagedDiskFacts(AzureRMModuleBase):
+    """Utility class to get managed disk facts"""
+
+    def __init__(self):
+        self.module_arg_spec = dict(
+            resource_group=dict(
+                type='str',
+                required=False
+            ),
+            name=dict(
+                type='str',
+                required=False
+            ),
+            state=dict(
+                type='str',
+                required=False,
+                default='present',
+                choices=['present', 'absent']
+            ),
+            location=dict(
+                type='str',
+                required=False
+            ),
+            storage_account_type=dict(
+                type='str',
+                required=False,
+                choices=['Standard_LRS', 'Premium_LRS']
+            ),
+            os_type=dict(
+                type='str',
+                required=False,
+                choices=['linux', 'windows']
+            ),
+            disk_size_gb=dict(
+                type='int',
+                required=False
+            ),
+            tags=dict(
+                type='str',
+                required=False
+            ),
+        )
+        self.results = dict(
+            ansible_facts=dict(
+                azure_managed_disk=[]
+            )
+        )
+        self.resource_group = None
+        self.name = None
+        self.location = None
+        self.storage_account_type = None
+        self.create_option = None
+        self.source_uri = None
+        self.source_resource_uri = None
+        self.os_type = None
+        self.disk_size_gb = None
+        self.tags = None
+        super(AzureRMManagedDiskFacts, self).__init__(
+            derived_arg_spec=self.module_arg_spec,
+            supports_check_mode=True,
+            supports_tags=True)
+
+    def exec_module(self, **kwargs):
+        for key in self.module_arg_spec:
+            setattr(self, key, kwargs[key])
+
+        self.results['ansible_facts']['azure_managed_disk'] = (
+            self.get_item() if self.name
+            else self.list_items()
+        )
+
+        return self.results
+
+    def get_item(self):
+        """Get a single managed disk"""
+        item = None
+        result = []
+
+        try:
+            item = self.compute_client.disks.get(
+                self.resource_group,
+                self.name)
+        except CloudError:
+            pass
+
+        if item and self.has_tags(item.tags, self.tags):
+            result = [managed_disk_to_dict(item)]
+
+        return result
+
+    def list_items(self):
+        """Get all managed disks"""
+        try:
+            response = self.compute_client.disks.list()
+        except CloudError as exc:
+            self.fail('Failed to list all items - {}'.format(str(exc)))
+
+        results = []
+        for item in response:
+            if self.has_tags(item.tags, self.tags):
+                results.append(managed_disk_to_dict(item))
+        return results
+
+
+def main():
+    """Main module execution code path"""
+
+    AzureRMManagedDiskFacts()
+
+if __name__ == '__main__':
+    main()
diff --git a/test/integration/targets/azure_rm_managed_disk/aliases b/test/integration/targets/azure_rm_managed_disk/aliases
new file mode 100644
index 00000000000..d6ff84111cd
--- /dev/null
+++ b/test/integration/targets/azure_rm_managed_disk/aliases
@@ -0,0 +1,3 @@
+cloud/azure
+posix/ci/cloud/azure
+destructive
diff --git a/test/integration/targets/azure_rm_managed_disk/meta/main.yml b/test/integration/targets/azure_rm_managed_disk/meta/main.yml
new file mode 100644
index 00000000000..95e1952f989
--- /dev/null
+++ b/test/integration/targets/azure_rm_managed_disk/meta/main.yml
@@ -0,0 +1,2 @@
+dependencies:
+  - setup_azure
diff --git a/test/integration/targets/azure_rm_managed_disk/tasks/main.yml b/test/integration/targets/azure_rm_managed_disk/tasks/main.yml
new file mode 100644
index 00000000000..f13ae65f527
--- /dev/null
+++ b/test/integration/targets/azure_rm_managed_disk/tasks/main.yml
@@ -0,0 +1,221 @@
+ - name: Setup variables...
+   set_fact:
+       managed_disk1: "{{ resource_group | hash('md5') | truncate(24, True, '') }}"
+       managed_disk2: "{{ resource_group | hash('md5') | truncate(18, True, '') }}"
+
+ - name: Clearing (if) previous disks were created (1/2)
+   azure_rm_managed_disk:
+       resource_group: "{{ resource_group }}" 
+       name: "{{ managed_disk2 }}"
+       state: absent
+
+ - name: Clearing (if) previous disks were created (2/2)
+   azure_rm_managed_disk:
+       resource_group: "{{ resource_group }}" 
+       name: "{{ managed_disk1 }}"
+       state: absent  
+       
+ - name: Create managed disk (Check Mode)
+   azure_rm_managed_disk:
+       resource_group: "{{ resource_group }}" 
+       name: "{{ managed_disk1 }}"
+       disk_size_gb: 1
+       tags:
+           testing: testing
+           delete: never
+   register: output
+   check_mode: yes
+
+ - name: Assert status succeeded (Check Mode)
+   assert:
+     that:
+       - output.changed
+       - output.state
+
+ - name: Test invalid account name (should give error)
+   azure_rm_managed_disk:
+       resource_group: "{{ resource_group }}" 
+       name: "invalid_char$"
+       disk_size_gb: 1
+       state: present
+   register: output     
+   ignore_errors: yes  
+   check_mode: no
+
+ - name: Assert task failed
+   assert: { that: "output['failed'] == True" }
+
+ - name: Create new managed disk succesfully 
+   azure_rm_managed_disk:
+       resource_group: "{{ resource_group }}" 
+       name: "{{ managed_disk1 }}"
+       storage_account_type: "Standard_LRS"
+       disk_size_gb: 1
+       tags:
+           testing: testing
+           delete: never
+   register: output
+
+ - name: Assert status succeeded and results include an Id value 
+   assert:
+     that:
+       - output.changed
+       - output.state.id is defined
+
+ - name: Copy disk to a new managed disk
+   azure_rm_managed_disk:
+       resource_group: "{{ resource_group }}" 
+       name: "{{ managed_disk2 }}"
+       create_option: "copy"
+       source_resource_uri: "{{ output.state.id }}"
+       disk_size_gb: 1
+   register: copy
+
+ - name: Assert status succeeded and results include an Id value 
+   assert:
+     that:
+       - copy.changed
+       - copy.state.id is defined
+
+ - name: Update a new disk without changes
+   azure_rm_managed_disk:
+       resource_group: "{{ resource_group }}" 
+       name: "{{ managed_disk1 }}"
+       storage_account_type: "Standard_LRS"
+       disk_size_gb: 1
+   register: output
+
+ - name: Assert status succeeded and results include an Id value 
+   assert:
+     that:
+       - not output.changed
+       - output.state.id is defined
+
+ - name: Change storage account type to an invalid type
+   azure_rm_managed_disk:
+       resource_group: "{{ resource_group }}" 
+       name: "{{ managed_disk1 }}"
+       storage_account_type: "PremiumL"
+       disk_size_gb: 1
+   register: output
+   ignore_errors: yes 
+
+ - name: Assert storage account type change failed 
+   assert: { that: "output['failed'] == True" }
+
+ - name: Change disk size to incompatible size 
+   azure_rm_managed_disk:
+       resource_group: "{{ resource_group }}"
+       name: "{{ managed_disk1 }}"
+       disk_size_gb: 30000
+   register: output
+   ignore_errors: yes
+
+ - name: Assert disk size change to incompatible size (>4095)  failure
+   assert: { that: "output['failed'] == True" }
+
+ - name: Change disk to bigger size
+   azure_rm_managed_disk:
+       resource_group: "{{ resource_group }}" 
+       name: "{{ managed_disk1 }}"
+       disk_size_gb: 2
+   register: output
+
+ - name: Assert status succeeded
+   assert:
+     that:
+       - output.changed
+
+ - name: Change disk to Premium
+   azure_rm_managed_disk:
+       resource_group: "{{ resource_group }}" 
+       name: "{{ managed_disk1 }}"
+       storage_account_type: "Premium_LRS"
+       disk_size_gb: 2
+   register: output
+
+ - name: Assert status succeeded
+   assert:
+     that:
+       - output.changed
+
+ - name: Update disk tags
+   azure_rm_managed_disk:
+       resource_group: "{{ resource_group }}"
+       name: "{{ managed_disk1 }}"
+       disk_size_gb: 2
+       tags:
+           testing: testing
+           delete: never
+           galaxy: 'no'
+   register: output
+
+ - name: Assert disk incremented tags
+   assert:
+       that:
+           - "output.state.tags | length == 3"
+           - "output.state.tags.galaxy == 'no'"
+
+ - name: Update disk tags
+   azure_rm_managed_disk:
+       resource_group: "{{ resource_group }}"
+       name: "{{ managed_disk1 }}"
+       disk_size_gb: 2
+       tags:
+           testing: testing
+           delete: never
+   register: output
+
+ - name: Assert disk tags are 2
+   assert:
+       that:
+           - "output.state.tags | length == 2"
+           - "output.state.tags.testing == 'testing'"
+           - "output.state.tags.delete == 'never'"
+
+ - name: Gather facts to one specific disk
+   azure_rm_managed_disk_facts:
+       resource_group: "{{ resource_group }}"
+       name: "{{ managed_disk1 }}"
+
+ - assert:
+       that:
+           - "azure_managed_disk | length == 1"
+
+ - name: Gather facts
+   azure_rm_managed_disk_facts:
+       resource_group: "{{ resource_group }}"
+
+ - assert:
+       that:
+           - "azure_managed_disk | length > 0"
+
+ - name: Delete managed disk (Check Mode)
+   azure_rm_managed_disk:
+       resource_group: "{{ resource_group }}" 
+       name: "{{ managed_disk1 }}"
+       state: absent
+       disk_size_gb: 2
+   check_mode: yes
+
+ - name: Assert status succeeded 
+   assert:
+     that:
+       - output.changed
+       - output.state
+
+ - name: Delete managed disk 
+   azure_rm_managed_disk:
+       resource_group: "{{ resource_group }}" 
+       name: "{{ managed_disk2 }}"
+       disk_size_gb: 1
+       state: absent
+   check_mode: no
+
+ - name: Delete copied managed disk 
+   azure_rm_managed_disk:
+       resource_group: "{{ resource_group }}" 
+       name: "{{ managed_disk1 }}"
+       disk_size_gb: 2
+       state: absent
+   check_mode: no
\ No newline at end of file