diff --git a/nsxt/resource_nsxt_edge_cluster.go b/nsxt/resource_nsxt_edge_cluster.go
index 369a9ce6a..dea2cb328 100644
--- a/nsxt/resource_nsxt_edge_cluster.go
+++ b/nsxt/resource_nsxt_edge_cluster.go
@@ -8,10 +8,18 @@ import (
 	"log"
 
 	"github.com/hashicorp/terraform-plugin-sdk/v2/helper/schema"
+	"github.com/hashicorp/terraform-plugin-sdk/v2/helper/validation"
+	"github.com/vmware/vsphere-automation-sdk-go/runtime/bindings"
+	"github.com/vmware/vsphere-automation-sdk-go/runtime/data"
 	"github.com/vmware/vsphere-automation-sdk-go/services/nsxt-mp/nsx"
 	"github.com/vmware/vsphere-automation-sdk-go/services/nsxt-mp/nsx/model"
 )
 
+var failureDomainAllocationOptions = []string{
+	"enable",
+	"disable",
+}
+
 func resourceNsxtEdgeCluster() *schema.Resource {
 	return &schema.Resource{
 		Create: resourceNsxtEdgeClusterCreate,
@@ -95,6 +103,12 @@ func resourceNsxtEdgeCluster() *schema.Resource {
 					},
 				},
 			},
+			"failure_domain_allocation": {
+				Type:         schema.TypeString,
+				Description:  "Flag to enable/disable failure domain based allocation",
+				Optional:     true,
+				ValidateFunc: validation.StringInSlice(failureDomainAllocationOptions, false),
+			},
 		},
 	}
 }
@@ -107,14 +121,16 @@ func resourceNsxtEdgeClusterCreate(d *schema.ResourceData, m interface{}) error
 	displayName := d.Get("display_name").(string)
 	tags := getMPTagsFromSchema(d)
 	clusterProfileBindings := getClusterProfileBindingsFromSchema(d)
-
 	members := getEdgeClusterMembersFromSchema(d)
+	allocationRules := getAllocationRulesFromSchema(d)
+
 	obj := model.EdgeCluster{
 		Description:            &description,
 		DisplayName:            &displayName,
 		Tags:                   tags,
 		ClusterProfileBindings: clusterProfileBindings,
 		Members:                members,
+		AllocationRules:        allocationRules,
 	}
 
 	log.Printf("[INFO] Creating Edge Cluster with name %s", displayName)
@@ -160,6 +176,27 @@ func getEdgeClusterMembersFromSchema(d *schema.ResourceData) []model.EdgeCluster
 	return members
 }
 
+func getAllocationRulesFromSchema(d *schema.ResourceData) []model.AllocationRule {
+	failureDomainAllocation := d.Get("failure_domain_allocation").(string)
+	if failureDomainAllocation != "" {
+		enableFailureDomain := true
+		if failureDomainAllocation == "disable" {
+			enableFailureDomain = false
+		}
+		failureDomain := model.AllocationBasedOnFailureDomain{
+			ActionType: model.AllocationRuleAction_ACTION_TYPE_ALLOCATIONBASEDONFAILUREDOMAIN,
+			Enabled:    &enableFailureDomain,
+		}
+		converter := bindings.NewTypeConverter()
+		failureDomainValue, errs := converter.ConvertToVapi(failureDomain, model.AllocationBasedOnFailureDomainBindingType())
+		if errs != nil {
+			return nil
+		}
+		return []model.AllocationRule{{Action: failureDomainValue.(*data.StructValue)}}
+	}
+	return nil
+}
+
 func resourceNsxtEdgeClusterRead(d *schema.ResourceData, m interface{}) error {
 	connector := getPolicyConnector(m)
 	id := d.Id()
@@ -183,6 +220,7 @@ func resourceNsxtEdgeClusterRead(d *schema.ResourceData, m interface{}) error {
 	d.Set("member_node_type", obj.MemberNodeType)
 	setMemberListInSchema(d, obj.Members)
 	setNodeRtepIPsInSchema(d, obj.NodeRtepIps)
+	setFailureDomainAllocationInSchema(d, obj.AllocationRules)
 	return nil
 }
 
@@ -209,6 +247,27 @@ func setNodeRtepIPsInSchema(d *schema.ResourceData, nodeRtepIPs []model.NodeRtep
 	return d.Set("node_rtep_ips", expressionList)
 }
 
+func setFailureDomainAllocationInSchema(d *schema.ResourceData, allocationRules []model.AllocationRule) error {
+	converter := bindings.NewTypeConverter()
+	for _, allocationRule := range allocationRules {
+		structValue := allocationRule.Action
+		actionInterface, errs := converter.ConvertToGolang(structValue, model.AllocationBasedOnFailureDomainBindingType())
+		if errs != nil {
+			continue
+		}
+		action := actionInterface.(model.AllocationBasedOnFailureDomain)
+		if action.Enabled != nil {
+			if *action.Enabled {
+				d.Set("failure_domain_allocation", "enable")
+			} else {
+				d.Set("failure_domain_allocation", "disable")
+			}
+			break
+		}
+	}
+	return nil
+}
+
 func setMemberListInSchema(d *schema.ResourceData, members []model.EdgeClusterMember) error {
 	var expresionList []map[string]interface{}
 	for _, member := range members {
@@ -237,6 +296,8 @@ func resourceNsxtEdgeClusterUpdate(d *schema.ResourceData, m interface{}) error
 	tags := getMPTagsFromSchema(d)
 	members := getEdgeClusterMembersFromSchema(d)
 	clusterProfileBindings := getClusterProfileBindingsFromSchema(d)
+	allocationRules := getAllocationRulesFromSchema(d)
+
 	obj := model.EdgeCluster{
 		Revision:               &revision,
 		Description:            &description,
@@ -244,6 +305,7 @@ func resourceNsxtEdgeClusterUpdate(d *schema.ResourceData, m interface{}) error
 		Tags:                   tags,
 		ClusterProfileBindings: clusterProfileBindings,
 		Members:                members,
+		AllocationRules:        allocationRules,
 	}
 
 	_, err := client.Update(id, obj)
diff --git a/website/docs/r/edge_cluster.html.markdown b/website/docs/r/edge_cluster.html.markdown
index 524c256e4..e8001e0ed 100644
--- a/website/docs/r/edge_cluster.html.markdown
+++ b/website/docs/r/edge_cluster.html.markdown
@@ -31,6 +31,7 @@ The following arguments are supported:
 * `description` - (Optional) Description of the resource.
 * `tag` - (Optional) A list of scope + tag pairs to associate with this resource.
 * `edge_ha_profile_id` - (Optional) Edge high availability cluster profile ID.
+* `failure_domain_allocation` - (Optional) Flag to enable failure domain based allocation. Enable placement algorithm to consider failure domain of edge transport nodes and place active and standby contexts in different failure domains. Supported values are `enable` and `disable`. 
 * `member` - (Optional) Edge cluster members
   * `description` - (Optional) Description of this resource.
   * `display_name` - (Optional) The display name of this resource. Defaults to ID if not set.