diff --git a/src/RecoveryServices/RecoveryServices.Backup.Models/Properties/Resources.resx b/src/RecoveryServices/RecoveryServices.Backup.Models/Properties/Resources.resx
index 36a9da729e50..2aac6aa51868 100644
--- a/src/RecoveryServices/RecoveryServices.Backup.Models/Properties/Resources.resx
+++ b/src/RecoveryServices/RecoveryServices.Backup.Models/Properties/Resources.resx
@@ -572,7 +572,7 @@ Please contact Microsoft for further assistance.</value>
     <value>RetentionDuration in Days should be from 7 - 9999</value>
   </data>
   <data name="ProtectedItemsCountExceededException" xml:space="preserve">
-    <value>Cannot configure backup for more than 100 VMs per policy</value>
+    <value>Cannot configure backup for more than 1000 VMs per policy</value>
   </data>
   <data name="SoftdeleteNotImplementedException" xml:space="preserve">
     <value>Undo-deletion is only supported for AzureVMs. This method is not supported for other workloads.</value>
diff --git a/src/RecoveryServices/RecoveryServices.Backup.Providers/Providers/IaasVmPsBackupProvider.cs b/src/RecoveryServices/RecoveryServices.Backup.Providers/Providers/IaasVmPsBackupProvider.cs
index 6961fc8c079d..98198e269c1e 100644
--- a/src/RecoveryServices/RecoveryServices.Backup.Providers/Providers/IaasVmPsBackupProvider.cs
+++ b/src/RecoveryServices/RecoveryServices.Backup.Providers/Providers/IaasVmPsBackupProvider.cs
@@ -986,7 +986,7 @@ public void RegisterContainer()
 
         private void ValidateProtectedItemCount(AzureVmPolicy azureVmPolicy)
         {
-            if (azureVmPolicy.ProtectedItemsCount > 100)
+            if (azureVmPolicy.ProtectedItemsCount > 1000)
             {
                 throw new ArgumentException(Resources.ProtectedItemsCountExceededException);
             }