diff --git a/lib/ansible/modules/cloud/azure/azure_rm_virtualmachine_scaleset.py b/lib/ansible/modules/cloud/azure/azure_rm_virtualmachine_scaleset.py
index 83416869cf2..77a153b1e32 100644
--- a/lib/ansible/modules/cloud/azure/azure_rm_virtualmachine_scaleset.py
+++ b/lib/ansible/modules/cloud/azure/azure_rm_virtualmachine_scaleset.py
@@ -531,6 +531,13 @@ class AzureRMVirtualMachineScaleSet(AzureRMModuleBase):
                     differences.append('Data Disks')
                     changed = True
 
+                if self.upgrade_policy and \
+                   self.upgrade_policy != vmss_dict['properties']['upgradePolicy']['mode']:
+                    self.log('CHANGED: virtual machine scale set {0} - Upgrade Policy'.format(self.name))
+                    differences.append('Upgrade Policy')
+                    changed = True
+                    vmss_dict['properties']['upgradePolicy']['mode'] = self.upgrade_policy
+
                 update_tags, vmss_dict['tags'] = self.update_tags(vmss_dict.get('tags', dict()))
                 if update_tags:
                     differences.append('Tags')
diff --git a/test/integration/targets/azure_rm_virtualmachine_scaleset/tasks/main.yml b/test/integration/targets/azure_rm_virtualmachine_scaleset/tasks/main.yml
index 0dff0d0a97d..914533cb2c1 100644
--- a/test/integration/targets/azure_rm_virtualmachine_scaleset/tasks/main.yml
+++ b/test/integration/targets/azure_rm_virtualmachine_scaleset/tasks/main.yml
@@ -59,6 +59,38 @@
   assert:
     that: results.changed
 
+- name: Create VMSS -- test upgrade_policy idempotence
+  azure_rm_virtualmachine_scaleset:
+    resource_group: "{{ resource_group }}"
+    name: testVMSS{{ rpfx }}
+    vm_size: Standard_DS1_v2
+    admin_username: testuser
+    ssh_password_enabled: true
+    admin_password: "Password1234!"
+    capacity: 2
+    virtual_network_name: testVnet
+    subnet_name: testSubnet
+    upgrade_policy: Automatic
+    tier: Standard
+    managed_disk_type: Standard_LRS
+    os_disk_caching: ReadWrite
+    image:
+      offer: CoreOS
+      publisher: CoreOS
+      sku: Stable
+      version: latest
+    data_disks:
+      - lun: 0
+        disk_size_gb: 64
+        caching: ReadWrite
+        managed_disk_type: Standard_LRS
+  check_mode: yes
+  register: results
+
+- name: Assert that VMSS was created
+  assert:
+    that: results.changed
+
 - name: Retrieve scaleset facts
   azure_rm_virtualmachine_scaleset_facts:
     resource_group: "{{ resource_group }}"