diff --git a/pkg/cloudprovider/providers/azure/azure.go b/pkg/cloudprovider/providers/azure/azure.go
index 04786b2d3a0..12a5cee0ade 100644
--- a/pkg/cloudprovider/providers/azure/azure.go
+++ b/pkg/cloudprovider/providers/azure/azure.go
@@ -525,3 +525,8 @@ func (az *Cloud) GetActiveZones() (sets.String, error) {
 	}
 	return zones, nil
 }
+
+// GetLocation returns the location in which k8s cluster is currently running.
+func (az *Cloud) GetLocation() string {
+	return az.Location
+}
diff --git a/pkg/volume/azure_dd/azure_dd.go b/pkg/volume/azure_dd/azure_dd.go
index 278276fd9b8..62137b6a2a9 100644
--- a/pkg/volume/azure_dd/azure_dd.go
+++ b/pkg/volume/azure_dd/azure_dd.go
@@ -66,6 +66,9 @@ type DiskController interface {
 
 	// GetActiveZones returns all the zones in which k8s nodes are currently running.
 	GetActiveZones() (sets.String, error)
+
+	// GetLocation returns the location in which k8s cluster is currently running.
+	GetLocation() string
 }
 
 type azureDataDiskPlugin struct {
diff --git a/pkg/volume/azure_dd/azure_provision.go b/pkg/volume/azure_dd/azure_provision.go
index 7854ca578da..bb05d1bdd34 100644
--- a/pkg/volume/azure_dd/azure_provision.go
+++ b/pkg/volume/azure_dd/azure_provision.go
@@ -29,6 +29,7 @@ import (
 	utilfeature "k8s.io/apiserver/pkg/util/feature"
 	"k8s.io/kubernetes/pkg/cloudprovider/providers/azure"
 	"k8s.io/kubernetes/pkg/features"
+	kubeletapis "k8s.io/kubernetes/pkg/kubelet/apis"
 	"k8s.io/kubernetes/pkg/volume"
 	"k8s.io/kubernetes/pkg/volume/util"
 )
@@ -195,8 +196,8 @@ func (p *azureDiskProvisioner) Provision(selectedNode *v1.Node, allowedTopologie
 		}
 	}
 
-	if !zoned && (zonePresent || zonesPresent) {
-		return nil, fmt.Errorf("zone or zones StorageClass parameters must be used together with zoned parameter")
+	if !zoned && (zonePresent || zonesPresent || len(allowedTopologies) > 0) {
+		return nil, fmt.Errorf("zone, zones and allowedTopologies StorageClass parameters must be used together with zoned parameter")
 	}
 
 	if cachingMode, err = normalizeCachingMode(cachingMode); err != nil {
@@ -298,18 +299,46 @@ func (p *azureDiskProvisioner) Provision(selectedNode *v1.Node, allowedTopologie
 		},
 	}
 
-	if zoned && utilfeature.DefaultFeatureGate.Enabled(features.VolumeScheduling) {
-		requirements := make([]v1.NodeSelectorRequirement, 0)
-		for k, v := range labels {
-			requirements = append(requirements, v1.NodeSelectorRequirement{Key: k, Operator: v1.NodeSelectorOpIn, Values: []string{v}})
+	if kind == v1.AzureManagedDisk && utilfeature.DefaultFeatureGate.Enabled(features.VolumeScheduling) {
+		nodeSelectorTerms := make([]v1.NodeSelectorTerm, 0)
+
+		if zoned {
+			// Set node affinity labels based on availability zone labels.
+			requirements := make([]v1.NodeSelectorRequirement, 0)
+			for k, v := range labels {
+				requirements = append(requirements, v1.NodeSelectorRequirement{Key: k, Operator: v1.NodeSelectorOpIn, Values: []string{v}})
+			}
+
+			nodeSelectorTerms = append(nodeSelectorTerms, v1.NodeSelectorTerm{
+				MatchExpressions: requirements,
+			})
+		} else {
+			// Set node affinity labels based on fault domains.
+			// This is required because unzoned AzureDisk can't be attached to zoned nodes.
+			// There are at most 3 fault domains available in each region.
+			// Refer https://docs.microsoft.com/en-us/azure/virtual-machines/windows/manage-availability.
+			for i := 0; i < 3; i++ {
+				requirements := []v1.NodeSelectorRequirement{
+					{
+						Key:      kubeletapis.LabelZoneRegion,
+						Operator: v1.NodeSelectorOpIn,
+						Values:   []string{diskController.GetLocation()},
+					},
+					{
+						Key:      kubeletapis.LabelZoneFailureDomain,
+						Operator: v1.NodeSelectorOpIn,
+						Values:   []string{strconv.Itoa(i)},
+					},
+				}
+				nodeSelectorTerms = append(nodeSelectorTerms, v1.NodeSelectorTerm{
+					MatchExpressions: requirements,
+				})
+			}
 		}
 
-		nodeSelectorTerm := v1.NodeSelectorTerm{
-			MatchExpressions: requirements,
-		}
 		pv.Spec.NodeAffinity = &v1.VolumeNodeAffinity{
 			Required: &v1.NodeSelector{
-				NodeSelectorTerms: []v1.NodeSelectorTerm{nodeSelectorTerm},
+				NodeSelectorTerms: nodeSelectorTerms,
 			},
 		}
 	}