diff --git a/test/e2e/engine/template.go b/test/e2e/engine/template.go
index e8a403fde6..1f8d3aaf82 100644
--- a/test/e2e/engine/template.go
+++ b/test/e2e/engine/template.go
@@ -151,7 +151,9 @@ func Build(cfg *config.Config, masterSubnetID string, agentSubnetIDs []string, i
 		prop.OrchestratorProfile.KubernetesConfig.UserAssignedID = config.MSIUserAssignedID
 	}
 
-	prop.OrchestratorProfile.KubernetesConfig.UseManagedIdentity = to.BoolPtr(config.UseManagedIdentity)
+	if prop.OrchestratorProfile.KubernetesConfig.UseManagedIdentity == nil {
+		prop.OrchestratorProfile.KubernetesConfig.UseManagedIdentity = to.BoolPtr(config.UseManagedIdentity)
+	}
 
 	if config.ClientID != "" && config.ClientSecret != "" && !(prop.OrchestratorProfile.KubernetesConfig != nil && to.Bool(prop.OrchestratorProfile.KubernetesConfig.UseManagedIdentity)) {
 		if !prop.IsAzureStackCloud() {
diff --git a/test/e2e/test_cluster_configs/vmss_master.json b/test/e2e/test_cluster_configs/vmss_master.json
index 14071faa8b..bb281e796c 100644
--- a/test/e2e/test_cluster_configs/vmss_master.json
+++ b/test/e2e/test_cluster_configs/vmss_master.json
@@ -4,7 +4,10 @@
 		"apiVersion": "vlabs",
 		"properties": {
 			"orchestratorProfile": {
-				"orchestratorType": "Kubernetes"
+				"orchestratorType": "Kubernetes",
+				"kubernetesConfig": {
+					"useManagedIdentity": false
+				}
 			},
 			"masterProfile": {
 				"count": 3,