diff --git a/tests/smoke_tests/test_cluster_job.py b/tests/smoke_tests/test_cluster_job.py
index 0255884ae30..18b82c649e7 100644
--- a/tests/smoke_tests/test_cluster_job.py
+++ b/tests/smoke_tests/test_cluster_job.py
@@ -1299,6 +1299,34 @@ def test_use_spot(generic_cloud: str):
     smoke_tests_utils.run_one_test(test)
 
 
+@pytest.mark.azure
+def test_azure_spot_instance_verification():
+    """Test Azure spot instance provisioning with explicit verification.
+    This test verifies that when --use-spot is specified for Azure:
+    1. The cluster launches successfully
+    2. The instances are actually provisioned as spot instances
+    """
+    name = smoke_tests_utils.get_cluster_name()
+    test = smoke_tests_utils.Test(
+        'azure-spot-verification',
+        [
+            f'sky launch -c {name} --cloud azure tests/test_yamls/minimal.yaml --use-spot -y',
+            f'sky logs {name} 1 --status', f'TARGET_VM_NAME="{name}"; '
+            'VM_INFO=$(az vm list --query "[?contains(name, \'$TARGET_VM_NAME\')].{Name:name, ResourceGroup:resourceGroup}" -o tsv); '
+            '[[ -z "$VM_INFO" ]] && exit 1; '
+            'FULL_VM_NAME=$(echo "$VM_INFO" | awk \'{print $1}\'); '
+            'RESOURCE_GROUP=$(echo "$VM_INFO" | awk \'{print $2}\'); '
+            'VM_DETAILS=$(az vm list --resource-group "$RESOURCE_GROUP" '
+            '--query "[?name==\'$FULL_VM_NAME\'].{Name:name, Location:location, Priority:priority}" -o table); '
+            '[[ -z "$VM_DETAILS" ]] && exit 1; '
+            'echo "VM Details:"; echo "$VM_DETAILS"; '
+            'echo "$VM_DETAILS" | grep -qw "Spot" && exit 0 || exit 1'
+        ],
+        f'sky down -y {name}',
+    )
+    smoke_tests_utils.run_one_test(test)
+
+
 @pytest.mark.gcp
 def test_stop_gcp_spot():
     """Test GCP spot can be stopped, autostopped, restarted."""