diff --git a/templates/test/ci/cluster-template-prow-aks.yaml b/templates/test/ci/cluster-template-prow-aks.yaml
index 2d31ecbc4ae..ae4b5f828e8 100644
--- a/templates/test/ci/cluster-template-prow-aks.yaml
+++ b/templates/test/ci/cluster-template-prow-aks.yaml
@@ -35,6 +35,7 @@ spec:
     kind: AzureClusterIdentity
     name: ${CLUSTER_IDENTITY_NAME}
   location: ${AZURE_LOCATION}
+  networkPlugin: none
   resourceGroupName: ${AZURE_RESOURCE_GROUP:=${CLUSTER_NAME}}
   sshPublicKey: ${AZURE_SSH_PUBLIC_KEY_B64:=""}
   subscriptionID: ${AZURE_SUBSCRIPTION_ID}
diff --git a/templates/test/ci/prow-aks/kustomization.yaml b/templates/test/ci/prow-aks/kustomization.yaml
index 7fe8621e9cd..e63ae7d93e4 100644
--- a/templates/test/ci/prow-aks/kustomization.yaml
+++ b/templates/test/ci/prow-aks/kustomization.yaml
@@ -9,3 +9,4 @@ patchesStrategicMerge:
   - patches/aks-pool0.yaml
   - patches/aks-pool1.yaml
   - patches/addons.yaml
+  - patches/byo-cni.yaml
\ No newline at end of file
diff --git a/templates/test/ci/prow-aks/patches/byo-cni.yaml b/templates/test/ci/prow-aks/patches/byo-cni.yaml
new file mode 100644
index 00000000000..1e4e8b1db1c
--- /dev/null
+++ b/templates/test/ci/prow-aks/patches/byo-cni.yaml
@@ -0,0 +1,7 @@
+apiVersion: infrastructure.cluster.x-k8s.io/v1beta1
+kind: AzureManagedControlPlane
+metadata:
+  name: ${CLUSTER_NAME}
+  namespace: default
+spec:
+  networkPlugin: none
diff --git a/test/e2e/aks.go b/test/e2e/aks.go
index 1c61eda53e7..d9aabb5816e 100644
--- a/test/e2e/aks.go
+++ b/test/e2e/aks.go
@@ -44,11 +44,18 @@ type DiscoverAndWaitForAKSControlPlaneInput struct {
 // This will be invoked by cluster api e2e framework.
 func WaitForAKSControlPlaneInitialized(ctx context.Context, input clusterctl.ApplyCustomClusterTemplateAndWaitInput, result *clusterctl.ApplyCustomClusterTemplateAndWaitResult) {
 	client := input.ClusterProxy.GetClient()
+	cluster := framework.GetClusterByName(ctx, framework.GetClusterByNameInput{
+		Getter:    client,
+		Name:      input.ClusterName,
+		Namespace: input.Namespace,
+	})
+
 	DiscoverAndWaitForAKSControlPlaneInitialized(ctx, DiscoverAndWaitForAKSControlPlaneInput{
 		Lister:  client,
 		Getter:  client,
 		Cluster: result.Cluster,
 	}, input.WaitForControlPlaneIntervals...)
+	InstallCalicoHelmChart(ctx, input, cluster.Spec.ClusterNetwork.Services.CIDRBlocks, false)
 }
 
 // WaitForAKSControlPlaneReady waits for the azure managed control plane to be ready.
diff --git a/test/e2e/aks_byo_node.go b/test/e2e/aks_byo_node.go
index f15f4dee5cb..ed643d0300d 100644
--- a/test/e2e/aks_byo_node.go
+++ b/test/e2e/aks_byo_node.go
@@ -172,7 +172,6 @@ func AKSBYONodeSpec(ctx context.Context, inputGetter func() AKSBYONodeSpecInput)
 		pool := &expv1.MachinePool{}
 		err := mgmtClient.Get(ctx, client.ObjectKeyFromObject(machinePool), pool)
 		g.Expect(err).NotTo(HaveOccurred())
-		// TODO: check for full readiness after installing CNI + Cloud Provider
-		g.Expect(conditions.IsTrue(pool, clusterv1.BootstrapReadyCondition)).To(BeTrue())
+		g.Expect(conditions.IsTrue(pool, clusterv1.ReadyCondition)).To(BeTrue())
 	}, input.WaitIntervals...).Should(Succeed())
 }