diff --git a/python/ray/autoscaler/azure/azure-vm-template.json b/python/ray/autoscaler/azure/azure-vm-template.json
index 9410d87db..aadd115c6 100644
--- a/python/ray/autoscaler/azure/azure-vm-template.json
+++ b/python/ray/autoscaler/azure/azure-vm-template.json
@@ -68,6 +68,20 @@
             "metadata": {
                 "description": "If true creates a public ip"
             }
+        },
+        "priority": {
+            "type": "string",
+            "defaultValue": "Regular",
+            "metadata": {
+                "description": "Specifies the priority for the virtual machine."
+            }
+        },
+        "billingProfile": {
+            "type": "object",
+            "defaultValue": {},
+            "metadata": {
+                "description": "Specifies the maximum price to pay for Azure Spot VM."
+            }
         }
     },
     "variables": {
@@ -212,7 +226,9 @@
                             ]
                         }
                     }
-                }
+                },
+                "priority": "[parameters('priority')]",
+                "billingProfile": "[parameters('billingProfile')]"
             },
             "identity": {
                 "type": "UserAssigned",
diff --git a/python/ray/autoscaler/azure/example-full.yaml b/python/ray/autoscaler/azure/example-full.yaml
index 6c9b1fc85..3537c9401 100644
--- a/python/ray/autoscaler/azure/example-full.yaml
+++ b/python/ray/autoscaler/azure/example-full.yaml
@@ -65,6 +65,11 @@ auth:
     ssh_private_key: ~/.ssh/id_rsa
     ssh_public_key: ~/.ssh/id_rsa.pub
 
+# More specific customization to node configurations can be made using the ARM template azure-vm-template.json file
+# See documentation here: https://docs.microsoft.com/en-us/azure/templates/microsoft.compute/2019-03-01/virtualmachines
+# Changes to the local file will be used during deployment of the head node, however worker nodes deployment occurs 
+# on the head node, so changes to the template must be included in the wheel file used in setup_commands section below
+
 # Provider-specific config for the head node, e.g. instance type.
 head_node:
     azure_arm_parameters:
@@ -84,6 +89,11 @@ worker_nodes:
         imageOffer: ubuntu-1804
         imageSku: 1804-gen2
         imageVersion: 20.02.01
+        # optionally set priority to use Spot instances 
+        priority: Spot
+        # set a maximum price for spot instances if desired
+        # billingProfile:
+        #     maxPrice: -1
 
 # Files or directories to copy to the head and worker nodes. The format is a
 # dictionary from REMOTE_PATH: LOCAL_PATH, e.g.