diff --git a/docs/user_guides/configuration-guide.md b/docs/user_guides/configuration-guide.md
index 1c6f3a864..ade1bd239 100644
--- a/docs/user_guides/configuration-guide.md
+++ b/docs/user_guides/configuration-guide.md
@@ -385,6 +385,7 @@ The following tables lists the supported embedding providers:
 | OpenAI               | `openai`               | `text-embedding-ada-002`, etc.     |
 | SentenceTransformers | `SentenceTransformers` | `all-MiniLM-L6-v2`, etc.           |
 | NVIDIA AI Endpoints  | `nvidia_ai_endpoints`  | `nv-embed-v1`, etc.                |
+| AzureOpenAI          | `AzureOpenAI`          | `text-embedding-ada-002`, etc.
 
 ```{note}
 You can use any of the supported models for any of the supported embedding providers.
diff --git a/nemoguardrails/embeddings/providers/__init__.py b/nemoguardrails/embeddings/providers/__init__.py
index 1bdfab5dc..069cad8cb 100644
--- a/nemoguardrails/embeddings/providers/__init__.py
+++ b/nemoguardrails/embeddings/providers/__init__.py
@@ -18,7 +18,7 @@
 
 from typing import Optional, Type
 
-from . import fastembed, nim, openai, sentence_transformers
+from . import azureopenai, fastembed, nim, openai, sentence_transformers
 from .base import EmbeddingModel
 from .registry import EmbeddingProviderRegistry
 
@@ -65,6 +65,7 @@ def register_embedding_provider(
 
 register_embedding_provider(fastembed.FastEmbedEmbeddingModel)
 register_embedding_provider(openai.OpenAIEmbeddingModel)
+register_embedding_provider(azureopenai.AzureEmbeddingModel)
 register_embedding_provider(sentence_transformers.SentenceTransformerEmbeddingModel)
 register_embedding_provider(nim.NIMEmbeddingModel)
 register_embedding_provider(nim.NVIDIAAIEndpointsEmbeddingModel)
diff --git a/nemoguardrails/embeddings/providers/azureopenai.py b/nemoguardrails/embeddings/providers/azureopenai.py
new file mode 100644
index 000000000..538e07245
--- /dev/null
+++ b/nemoguardrails/embeddings/providers/azureopenai.py
@@ -0,0 +1,104 @@
+# SPDX-FileCopyrightText: Copyright (c) 2023 NVIDIA CORPORATION & AFFILIATES. All rights reserved.
+# SPDX-License-Identifier: Apache-2.0
+#
+# 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.
+
+import asyncio
+import os
+from typing import List
+
+from .base import EmbeddingModel
+
+
+def get_executor():
+    from . import embeddings_executor
+
+    return embeddings_executor
+
+class AzureEmbeddingModel(EmbeddingModel):
+    """Embedding model using Azure OpenAI.
+
+    This class represents an embedding model that utilizes the Azure OpenAI API
+    for generating text embeddings.
+
+    Args:
+        embedding_model (str): The name of the Azure OpenAI deployment model (e.g., "text-embedding-ada-002").
+    """
+
+    engine_name = "AzureOpenAI"
+
+    # Lookup table for model embedding dimensions
+    MODEL_DIMENSIONS = {
+        "text-embedding-ada-002": 1536,
+        # Add more models and their dimensions here if needed
+    }
+
+    def __init__(self, embedding_model: str):
+        try:
+            from openai import AzureOpenAI
+        except ImportError:
+            raise ImportError(
+                "Could not import openai, please install it with "
+                "`pip install openai`."
+            )
+        # Set Azure OpenAI API credentials
+        self.client = AzureOpenAI(
+            api_key=os.getenv("AZURE_OPENAI_API_KEY"),
+            api_version=os.getenv("AZURE_OPENAI_API_VERSION"),
+            azure_endpoint=os.getenv("AZURE_OPENAI_ENDPOINT"),
+        )
+
+        self.embedding_model = embedding_model
+        self.embedding_size = self._get_embedding_dimension()
+
+    def _get_embedding_dimension(self):
+        """Retrieve the embedding dimension for the specified model."""
+        if self.embedding_model in self.MODEL_DIMENSIONS:
+            return self.MODEL_DIMENSIONS[self.embedding_model]
+        else:
+            # Perform a first encoding to get the embedding size
+            self.embedding_size = len(self.encode(["test"])[0])
+
+    async def encode_async(self, documents: List[str]) -> List[List[float]]:
+        """Asynchronously encode a list of documents into their corresponding embeddings.
+
+        Args:
+            documents (List[str]): The list of documents to be encoded.
+
+        Returns:
+            List[List[float]]: The list of embeddings, where each embedding is a list of floats.
+        """
+        loop = asyncio.get_running_loop()
+        result = await loop.run_in_executor(get_executor(), self.encode, documents)
+        return result
+
+    def encode(self, documents: List[str]) -> List[List[float]]:
+        """Encode a list of documents into their corresponding embeddings.
+
+        Args:
+            documents (List[str]): The list of documents to be encoded.
+
+        Returns:
+            List[List[float]]: The list of embeddings, where each embedding is a list of floats.
+
+        Raises:
+            RuntimeError: If the API call fails.
+        """
+        try:
+            response = self.client.embeddings.create(
+                model=self.embedding_model, input=documents
+            )
+            embeddings = [record.embedding for record in response.data]
+            return embeddings
+        except Exception as e:
+            raise RuntimeError(f"Failed to retrieve embeddings: {e}")
diff --git a/tests/test_configs/with_azureopenai_embeddings/config.co b/tests/test_configs/with_azureopenai_embeddings/config.co
new file mode 100644
index 000000000..56035e40c
--- /dev/null
+++ b/tests/test_configs/with_azureopenai_embeddings/config.co
@@ -0,0 +1,12 @@
+define user ask capabilities
+  "What can you do?"
+  "What can you help me with?"
+  "tell me what you can do"
+  "tell me about you"
+
+define bot inform capabilities
+  "I am an AI assistant that helps answer questions."
+
+define flow
+  user ask capabilities
+  bot inform capabilities
diff --git a/tests/test_configs/with_azureopenai_embeddings/config.yml b/tests/test_configs/with_azureopenai_embeddings/config.yml
new file mode 100644
index 000000000..718236894
--- /dev/null
+++ b/tests/test_configs/with_azureopenai_embeddings/config.yml
@@ -0,0 +1,8 @@
+models:
+    - type: main
+      engine: azure
+      model: gpt-4o
+
+    - type: embeddings
+      engine: AzureOpenAI
+      model: text-embedding-ada-002
diff --git a/tests/test_embeddings_azureopenai.py b/tests/test_embeddings_azureopenai.py
new file mode 100644
index 000000000..74f1c6d44
--- /dev/null
+++ b/tests/test_embeddings_azureopenai.py
@@ -0,0 +1,96 @@
+# SPDX-FileCopyrightText: Copyright (c) 2023 NVIDIA CORPORATION & AFFILIATES. All rights reserved.
+# SPDX-License-Identifier: Apache-2.0
+#
+# 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.
+
+import os
+
+import pytest
+
+from nemoguardrails import LLMRails, RailsConfig
+
+try:
+    from nemoguardrails.embeddings.providers.azureopenai import AzureEmbeddingModel
+except ImportError:
+    # Ignore this if running in test environment when azureopenai not installed.
+    AzureEmbeddingModel = None
+CONFIGS_FOLDER = os.path.join(os.path.dirname(__file__), ".", "test_configs")
+
+LIVE_TEST_MODE = os.environ.get("LIVE_TEST")
+
+
+@pytest.fixture
+def app():
+    """Load the configuration where we replace FastEmbed with AzureOpenAI."""
+    config = RailsConfig.from_path(
+        os.path.join(CONFIGS_FOLDER, "with_azureopenai_embeddings")
+    )
+
+    return LLMRails(config)
+
+
+@pytest.mark.skipif(not LIVE_TEST_MODE, reason="Not in live mode.")
+def test_custom_llm_registration(app):
+    assert isinstance(
+        app.llm_generation_actions.flows_index._model, AzureEmbeddingModel
+    )
+
+
+@pytest.mark.skipif(not LIVE_TEST_MODE, reason="Not in live mode.")
+@pytest.mark.asyncio
+async def test_live_query():
+    config = RailsConfig.from_path(
+        os.path.join(CONFIGS_FOLDER, "with_azureopenai_embeddings")
+    )
+    app = LLMRails(config)
+
+    result = await app.generate_async(
+        messages=[{"role": "user", "content": "tell me what you can do"}]
+    )
+
+    assert result == {
+        "role": "assistant",
+        "content": "I am an AI assistant that helps answer questions.",
+    }
+
+
+@pytest.mark.skipif(not LIVE_TEST_MODE, reason="Not in live mode.")
+@pytest.mark.asyncio
+def test_live_query(app):
+    result = app.generate(
+        messages=[{"role": "user", "content": "tell me what you can do"}]
+    )
+
+    assert result == {
+        "role": "assistant",
+        "content": "I am an AI assistant that helps answer questions.",
+    }
+
+
+@pytest.mark.skipif(not LIVE_TEST_MODE, reason="Not in live mode.")
+def test_sync_embeddings():
+    model = AzureEmbeddingModel("text-embedding-ada-002")
+
+    result = model.encode(["test"])
+
+    assert len(result[0]) == 1536
+
+
+@pytest.mark.skipif(not LIVE_TEST_MODE, reason="Not in live mode.")
+@pytest.mark.asyncio
+async def test_async_embeddings():
+    model = AzureEmbeddingModel("text-embedding-ada-002")
+
+    result = await model.encode_async(["test"])
+
+    assert len(result[0]) == 1536