diff --git a/templates/cluster-template-machinepool-system-assigned-identity.yaml b/templates/cluster-template-machinepool-system-assigned-identity.yaml
new file mode 100644
index 000000000000..690203b9fc52
--- /dev/null
+++ b/templates/cluster-template-machinepool-system-assigned-identity.yaml
@@ -0,0 +1,195 @@
+apiVersion: cluster.x-k8s.io/v1alpha3
+kind: Cluster
+metadata:
+  labels:
+    cni: calico
+  name: ${CLUSTER_NAME}
+  namespace: default
+spec:
+  clusterNetwork:
+    pods:
+      cidrBlocks:
+      - 192.168.0.0/16
+  controlPlaneRef:
+    apiVersion: controlplane.cluster.x-k8s.io/v1alpha3
+    kind: KubeadmControlPlane
+    name: ${CLUSTER_NAME}-control-plane
+  infrastructureRef:
+    apiVersion: infrastructure.cluster.x-k8s.io/v1alpha3
+    kind: AzureCluster
+    name: ${CLUSTER_NAME}
+---
+apiVersion: infrastructure.cluster.x-k8s.io/v1alpha3
+kind: AzureCluster
+metadata:
+  name: ${CLUSTER_NAME}
+  namespace: default
+spec:
+  location: ${AZURE_LOCATION}
+  networkSpec:
+    vnet:
+      name: ${AZURE_VNET_NAME:=${CLUSTER_NAME}-vnet}
+  resourceGroup: ${AZURE_RESOURCE_GROUP:=${CLUSTER_NAME}}
+  subscriptionID: ${AZURE_SUBSCRIPTION_ID}
+---
+apiVersion: controlplane.cluster.x-k8s.io/v1alpha3
+kind: KubeadmControlPlane
+metadata:
+  name: ${CLUSTER_NAME}-control-plane
+  namespace: default
+spec:
+  infrastructureTemplate:
+    apiVersion: infrastructure.cluster.x-k8s.io/v1alpha3
+    kind: AzureMachineTemplate
+    name: ${CLUSTER_NAME}-control-plane
+  kubeadmConfigSpec:
+    clusterConfiguration:
+      apiServer:
+        extraArgs:
+          cloud-config: /etc/kubernetes/azure.json
+          cloud-provider: azure
+        extraVolumes:
+        - hostPath: /etc/kubernetes/azure.json
+          mountPath: /etc/kubernetes/azure.json
+          name: cloud-config
+          readOnly: true
+        timeoutForControlPlane: 20m
+      controllerManager:
+        extraArgs:
+          allocate-node-cidrs: "false"
+          cloud-config: /etc/kubernetes/azure.json
+          cloud-provider: azure
+          cluster-name: ${CLUSTER_NAME}
+        extraVolumes:
+        - hostPath: /etc/kubernetes/azure.json
+          mountPath: /etc/kubernetes/azure.json
+          name: cloud-config
+          readOnly: true
+      etcd:
+        local:
+          dataDir: /var/lib/etcddisk/etcd
+    diskSetup:
+      filesystems:
+      - device: /dev/disk/azure/scsi1/lun0
+        extraOpts:
+        - -E
+        - lazy_itable_init=1,lazy_journal_init=1
+        filesystem: ext4
+        label: etcd_disk
+      - device: ephemeral0.1
+        filesystem: ext4
+        label: ephemeral0
+        replaceFS: ntfs
+      partitions:
+      - device: /dev/disk/azure/scsi1/lun0
+        layout: true
+        overwrite: false
+        tableType: gpt
+    files:
+    - contentFrom:
+        secret:
+          key: control-plane-azure.json
+          name: ${CLUSTER_NAME}-control-plane-azure-json
+      owner: root:root
+      path: /etc/kubernetes/azure.json
+      permissions: "0644"
+    initConfiguration:
+      nodeRegistration:
+        kubeletExtraArgs:
+          cloud-config: /etc/kubernetes/azure.json
+          cloud-provider: azure
+        name: '{{ ds.meta_data["local_hostname"] }}'
+    joinConfiguration:
+      nodeRegistration:
+        kubeletExtraArgs:
+          cloud-config: /etc/kubernetes/azure.json
+          cloud-provider: azure
+        name: '{{ ds.meta_data["local_hostname"] }}'
+    mounts:
+    - - LABEL=etcd_disk
+      - /var/lib/etcddisk
+    useExperimentalRetryJoin: true
+  replicas: ${CONTROL_PLANE_MACHINE_COUNT}
+  version: ${KUBERNETES_VERSION}
+---
+apiVersion: infrastructure.cluster.x-k8s.io/v1alpha3
+kind: AzureMachineTemplate
+metadata:
+  name: ${CLUSTER_NAME}-control-plane
+  namespace: default
+spec:
+  template:
+    spec:
+      dataDisks:
+      - diskSizeGB: 256
+        lun: 0
+        nameSuffix: etcddisk
+      location: ${AZURE_LOCATION}
+      osDisk:
+        diskSizeGB: 128
+        managedDisk:
+          storageAccountType: Premium_LRS
+        osType: Linux
+      sshPublicKey: ${AZURE_SSH_PUBLIC_KEY_B64:=""}
+      vmSize: ${AZURE_CONTROL_PLANE_MACHINE_TYPE}
+---
+apiVersion: exp.cluster.x-k8s.io/v1alpha3
+kind: MachinePool
+metadata:
+  name: ${CLUSTER_NAME}-mp-0
+  namespace: default
+spec:
+  clusterName: ${CLUSTER_NAME}
+  replicas: ${WORKER_MACHINE_COUNT}
+  template:
+    spec:
+      bootstrap:
+        configRef:
+          apiVersion: bootstrap.cluster.x-k8s.io/v1alpha3
+          kind: KubeadmConfig
+          name: ${CLUSTER_NAME}-mp-0
+      clusterName: ${CLUSTER_NAME}
+      infrastructureRef:
+        apiVersion: exp.infrastructure.cluster.x-k8s.io/v1alpha3
+        kind: AzureMachinePool
+        name: ${CLUSTER_NAME}-mp-0
+      version: ${KUBERNETES_VERSION}
+---
+apiVersion: exp.infrastructure.cluster.x-k8s.io/v1alpha3
+kind: AzureMachinePool
+metadata:
+  name: ${CLUSTER_NAME}-mp-0
+  namespace: default
+spec:
+  identity: SystemAssigned
+  location: ${AZURE_LOCATION}
+  template:
+    osDisk:
+      diskSizeGB: 30
+      managedDisk:
+        storageAccountType: Premium_LRS
+      osType: Linux
+    sshPublicKey: ${AZURE_SSH_PUBLIC_KEY_B64:=""}
+    vmSize: ${AZURE_NODE_MACHINE_TYPE}
+---
+apiVersion: bootstrap.cluster.x-k8s.io/v1alpha3
+kind: KubeadmConfig
+metadata:
+  name: ${CLUSTER_NAME}-mp-0
+  namespace: default
+spec:
+  files:
+  - contentFrom:
+      secret:
+        key: worker-node-azure.json
+        name: ${CLUSTER_NAME}-mp-0-azure-json
+    owner: root:root
+    path: /etc/kubernetes/azure.json
+    permissions: "0644"
+  joinConfiguration:
+    nodeRegistration:
+      kubeletExtraArgs:
+        cloud-config: /etc/kubernetes/azure.json
+        cloud-provider: azure
+      name: '{{ ds.meta_data["local_hostname"] }}'
+  useExperimentalRetryJoin: true
diff --git a/templates/cluster-template-machinepool-user-assigned-identity.yaml b/templates/cluster-template-machinepool-user-assigned-identity.yaml
new file mode 100644
index 000000000000..d65c394bdf94
--- /dev/null
+++ b/templates/cluster-template-machinepool-user-assigned-identity.yaml
@@ -0,0 +1,197 @@
+apiVersion: cluster.x-k8s.io/v1alpha3
+kind: Cluster
+metadata:
+  labels:
+    cni: calico
+  name: ${CLUSTER_NAME}
+  namespace: default
+spec:
+  clusterNetwork:
+    pods:
+      cidrBlocks:
+      - 192.168.0.0/16
+  controlPlaneRef:
+    apiVersion: controlplane.cluster.x-k8s.io/v1alpha3
+    kind: KubeadmControlPlane
+    name: ${CLUSTER_NAME}-control-plane
+  infrastructureRef:
+    apiVersion: infrastructure.cluster.x-k8s.io/v1alpha3
+    kind: AzureCluster
+    name: ${CLUSTER_NAME}
+---
+apiVersion: infrastructure.cluster.x-k8s.io/v1alpha3
+kind: AzureCluster
+metadata:
+  name: ${CLUSTER_NAME}
+  namespace: default
+spec:
+  location: ${AZURE_LOCATION}
+  networkSpec:
+    vnet:
+      name: ${AZURE_VNET_NAME:=${CLUSTER_NAME}-vnet}
+  resourceGroup: ${AZURE_RESOURCE_GROUP:=${CLUSTER_NAME}}
+  subscriptionID: ${AZURE_SUBSCRIPTION_ID}
+---
+apiVersion: controlplane.cluster.x-k8s.io/v1alpha3
+kind: KubeadmControlPlane
+metadata:
+  name: ${CLUSTER_NAME}-control-plane
+  namespace: default
+spec:
+  infrastructureTemplate:
+    apiVersion: infrastructure.cluster.x-k8s.io/v1alpha3
+    kind: AzureMachineTemplate
+    name: ${CLUSTER_NAME}-control-plane
+  kubeadmConfigSpec:
+    clusterConfiguration:
+      apiServer:
+        extraArgs:
+          cloud-config: /etc/kubernetes/azure.json
+          cloud-provider: azure
+        extraVolumes:
+        - hostPath: /etc/kubernetes/azure.json
+          mountPath: /etc/kubernetes/azure.json
+          name: cloud-config
+          readOnly: true
+        timeoutForControlPlane: 20m
+      controllerManager:
+        extraArgs:
+          allocate-node-cidrs: "false"
+          cloud-config: /etc/kubernetes/azure.json
+          cloud-provider: azure
+          cluster-name: ${CLUSTER_NAME}
+        extraVolumes:
+        - hostPath: /etc/kubernetes/azure.json
+          mountPath: /etc/kubernetes/azure.json
+          name: cloud-config
+          readOnly: true
+      etcd:
+        local:
+          dataDir: /var/lib/etcddisk/etcd
+    diskSetup:
+      filesystems:
+      - device: /dev/disk/azure/scsi1/lun0
+        extraOpts:
+        - -E
+        - lazy_itable_init=1,lazy_journal_init=1
+        filesystem: ext4
+        label: etcd_disk
+      - device: ephemeral0.1
+        filesystem: ext4
+        label: ephemeral0
+        replaceFS: ntfs
+      partitions:
+      - device: /dev/disk/azure/scsi1/lun0
+        layout: true
+        overwrite: false
+        tableType: gpt
+    files:
+    - contentFrom:
+        secret:
+          key: control-plane-azure.json
+          name: ${CLUSTER_NAME}-control-plane-azure-json
+      owner: root:root
+      path: /etc/kubernetes/azure.json
+      permissions: "0644"
+    initConfiguration:
+      nodeRegistration:
+        kubeletExtraArgs:
+          cloud-config: /etc/kubernetes/azure.json
+          cloud-provider: azure
+        name: '{{ ds.meta_data["local_hostname"] }}'
+    joinConfiguration:
+      nodeRegistration:
+        kubeletExtraArgs:
+          cloud-config: /etc/kubernetes/azure.json
+          cloud-provider: azure
+        name: '{{ ds.meta_data["local_hostname"] }}'
+    mounts:
+    - - LABEL=etcd_disk
+      - /var/lib/etcddisk
+    useExperimentalRetryJoin: true
+  replicas: ${CONTROL_PLANE_MACHINE_COUNT}
+  version: ${KUBERNETES_VERSION}
+---
+apiVersion: infrastructure.cluster.x-k8s.io/v1alpha3
+kind: AzureMachineTemplate
+metadata:
+  name: ${CLUSTER_NAME}-control-plane
+  namespace: default
+spec:
+  template:
+    spec:
+      dataDisks:
+      - diskSizeGB: 256
+        lun: 0
+        nameSuffix: etcddisk
+      location: ${AZURE_LOCATION}
+      osDisk:
+        diskSizeGB: 128
+        managedDisk:
+          storageAccountType: Premium_LRS
+        osType: Linux
+      sshPublicKey: ${AZURE_SSH_PUBLIC_KEY_B64:=""}
+      vmSize: ${AZURE_CONTROL_PLANE_MACHINE_TYPE}
+---
+apiVersion: exp.cluster.x-k8s.io/v1alpha3
+kind: MachinePool
+metadata:
+  name: ${CLUSTER_NAME}-mp-0
+  namespace: default
+spec:
+  clusterName: ${CLUSTER_NAME}
+  replicas: ${WORKER_MACHINE_COUNT}
+  template:
+    spec:
+      bootstrap:
+        configRef:
+          apiVersion: bootstrap.cluster.x-k8s.io/v1alpha3
+          kind: KubeadmConfig
+          name: ${CLUSTER_NAME}-mp-0
+      clusterName: ${CLUSTER_NAME}
+      infrastructureRef:
+        apiVersion: exp.infrastructure.cluster.x-k8s.io/v1alpha3
+        kind: AzureMachinePool
+        name: ${CLUSTER_NAME}-mp-0
+      version: ${KUBERNETES_VERSION}
+---
+apiVersion: exp.infrastructure.cluster.x-k8s.io/v1alpha3
+kind: AzureMachinePool
+metadata:
+  name: ${CLUSTER_NAME}-mp-0
+  namespace: default
+spec:
+  identity: UserAssigned
+  location: ${AZURE_LOCATION}
+  template:
+    osDisk:
+      diskSizeGB: 30
+      managedDisk:
+        storageAccountType: Premium_LRS
+      osType: Linux
+    sshPublicKey: ${AZURE_SSH_PUBLIC_KEY_B64:=""}
+    vmSize: ${AZURE_NODE_MACHINE_TYPE}
+  userAssignedIdentities:
+    - providerID: ${USER_ASSIGNED_IDENTITY_PROVIDER_ID}
+---
+apiVersion: bootstrap.cluster.x-k8s.io/v1alpha3
+kind: KubeadmConfig
+metadata:
+  name: ${CLUSTER_NAME}-mp-0
+  namespace: default
+spec:
+  files:
+  - contentFrom:
+      secret:
+        key: worker-node-azure.json
+        name: ${CLUSTER_NAME}-mp-0-azure-json
+    owner: root:root
+    path: /etc/kubernetes/azure.json
+    permissions: "0644"
+  joinConfiguration:
+    nodeRegistration:
+      kubeletExtraArgs:
+        cloud-config: /etc/kubernetes/azure.json
+        cloud-provider: azure
+      name: '{{ ds.meta_data["local_hostname"] }}'
+  useExperimentalRetryJoin: true
diff --git a/templates/flavors/README.md b/templates/flavors/README.md
index 7ac605d11672..0bf52a347fc1 100644
--- a/templates/flavors/README.md
+++ b/templates/flavors/README.md
@@ -25,7 +25,7 @@ run ```tilt up ${flavors}``` to spin up worker clusters in Azure represented by
 Add your desired flavors to tilt_config.json:
 ```json
 {
-    "worker-flavors": ["default", "aks", "ephemeral", "external-cloud-provider", "ipv6", "machinepool", "system-assigned-identity", "user-assigned-identity"]
+    "worker-flavors": ["default", "aks", "ephemeral", "external-cloud-provider", "ipv6", "machinepool", "system-assigned-identity", "user-assigned-identity", "machinepool-system-assigned-identity", "machinepool-user-assigned-identity"]
 }
 ```
 
diff --git a/templates/flavors/machinepool-system-assigned-identity/kustomization.yaml b/templates/flavors/machinepool-system-assigned-identity/kustomization.yaml
new file mode 100644
index 000000000000..1c6be76e022c
--- /dev/null
+++ b/templates/flavors/machinepool-system-assigned-identity/kustomization.yaml
@@ -0,0 +1,5 @@
+namespace: default
+resources:
+  - ../machinepool
+patchesStrategicMerge:
+  - patches/system-assigned-identity.yaml
\ No newline at end of file
diff --git a/templates/flavors/machinepool-system-assigned-identity/patches/system-assigned-identity.yaml b/templates/flavors/machinepool-system-assigned-identity/patches/system-assigned-identity.yaml
new file mode 100644
index 000000000000..f6058d6aeb08
--- /dev/null
+++ b/templates/flavors/machinepool-system-assigned-identity/patches/system-assigned-identity.yaml
@@ -0,0 +1,7 @@
+---
+kind: AzureMachinePool
+apiVersion: exp.infrastructure.cluster.x-k8s.io/v1alpha3
+metadata:
+  name: "${CLUSTER_NAME}-mp-0"
+spec:
+  identity: SystemAssigned
\ No newline at end of file
diff --git a/templates/flavors/machinepool-user-assigned-identity/kustomization.yaml b/templates/flavors/machinepool-user-assigned-identity/kustomization.yaml
new file mode 100644
index 000000000000..6a2b4cc37cd4
--- /dev/null
+++ b/templates/flavors/machinepool-user-assigned-identity/kustomization.yaml
@@ -0,0 +1,5 @@
+namespace: default
+resources:
+  - ../machinepool
+patchesStrategicMerge:
+  - patches/user-assigned-identity.yaml
\ No newline at end of file
diff --git a/templates/flavors/machinepool-user-assigned-identity/patches/user-assigned-identity.yaml b/templates/flavors/machinepool-user-assigned-identity/patches/user-assigned-identity.yaml
new file mode 100644
index 000000000000..52ad7ae2bbd2
--- /dev/null
+++ b/templates/flavors/machinepool-user-assigned-identity/patches/user-assigned-identity.yaml
@@ -0,0 +1,9 @@
+---
+kind: AzureMachinePool
+apiVersion: exp.infrastructure.cluster.x-k8s.io/v1alpha3
+metadata:
+  name: "${CLUSTER_NAME}-mp-0"
+spec:
+  identity: UserAssigned
+  userAssignedIdentities:
+    - providerID: ${USER_ASSIGNED_IDENTITY_PROVIDER_ID}
\ No newline at end of file