diff --git a/staging/src/k8s.io/legacy-cloud-providers/azure/azure.go b/staging/src/k8s.io/legacy-cloud-providers/azure/azure.go
index be61907bb61..9c5a108cca8 100644
--- a/staging/src/k8s.io/legacy-cloud-providers/azure/azure.go
+++ b/staging/src/k8s.io/legacy-cloud-providers/azure/azure.go
@@ -749,10 +749,6 @@ func (az *Cloud) SetInformers(informerFactory informers.SharedInformerFactory) {
 		UpdateFunc: func(prev, obj interface{}) {
 			prevNode := prev.(*v1.Node)
 			newNode := obj.(*v1.Node)
-			if newNode.Labels[v1.LabelTopologyZone] ==
-				prevNode.Labels[v1.LabelTopologyZone] {
-				return
-			}
 			az.updateNodeCaches(prevNode, newNode)
 		},
 		DeleteFunc: func(obj interface{}) {
diff --git a/staging/src/k8s.io/legacy-cloud-providers/azure/azure_test.go b/staging/src/k8s.io/legacy-cloud-providers/azure/azure_test.go
index e4faf738c98..189f4ae0463 100644
--- a/staging/src/k8s.io/legacy-cloud-providers/azure/azure_test.go
+++ b/staging/src/k8s.io/legacy-cloud-providers/azure/azure_test.go
@@ -3276,6 +3276,42 @@ func TestUpdateNodeCaches(t *testing.T) {
 	assert.Equal(t, 1, len(az.nodeNames))
 }
 
+func TestUpdateNodeCacheExcludeLoadBalancer(t *testing.T) {
+	ctrl := gomock.NewController(t)
+	defer ctrl.Finish()
+	az := GetTestCloud(ctrl)
+
+	zone := fmt.Sprintf("%s-0", az.Location)
+	nodesInZone := sets.NewString("prevNode")
+	az.nodeZones = map[string]sets.String{zone: nodesInZone}
+	az.nodeResourceGroups = map[string]string{"prevNode": "rg"}
+	az.unmanagedNodes = sets.NewString("prevNode")
+	az.excludeLoadBalancerNodes = sets.NewString()
+	az.nodeNames = sets.NewString("prevNode")
+
+	// excluded node cache shall be updated even if the topology label does not change
+	prevNode := v1.Node{
+		ObjectMeta: metav1.ObjectMeta{
+			Labels: map[string]string{
+				v1.LabelTopologyZone: zone,
+			},
+			Name: "prevNode",
+		},
+	}
+	newNode := v1.Node{
+		ObjectMeta: metav1.ObjectMeta{
+			Labels: map[string]string{
+				v1.LabelTopologyZone:         zone,
+				v1.LabelNodeExcludeBalancers: "true",
+			},
+			Name: "newNode",
+		},
+	}
+	az.updateNodeCaches(&prevNode, &newNode)
+	assert.Equal(t, 1, len(az.excludeLoadBalancerNodes))
+
+}
+
 func TestGetActiveZones(t *testing.T) {
 	ctrl := gomock.NewController(t)
 	defer ctrl.Finish()