diff --git a/docs/resources/node_template.md b/docs/resources/node_template.md
index aba30102..4b7b40d9 100644
--- a/docs/resources/node_template.md
+++ b/docs/resources/node_template.md
@@ -234,7 +234,7 @@ The following attributes are exported:
 * `docker_port` - (Optional) Port number for Docker engine. Default `2376` (string)
 * `environment` - (Optional) Azure environment (e.g. AzurePublicCloud, AzureChinaCloud). Default `AzurePublicCloud` (string)
 * `fault_domain_count` - (Optional) Fault domain count to use for availability set. Default `3` (string)
-* `image` - (Optional) Azure virtual machine OS image. Default `canonical:UbuntuServer:18.04-LTS:latest` (string)
+* `image` - (Optional) Azure virtual machine OS image. Default `canonical:ubuntu-24_04-lts:server-gen1:latest` (string)
 * `location` - (Optional) Azure region to create the virtual machine. Default `westus` (string)
 * `managed_disks` - (Optional) Configures VM and availability set for managed disks. For Rancher v2.3.x and above. Default `false` (bool)
 * `no_public_ip` - (Optional) Do not create a public IP address for the machine. Default `false` (bool)
@@ -243,7 +243,7 @@ The following attributes are exported:
 * `open_port` - (Optional) Make the specified port number accessible from the Internet. (list)
 * `private_ip_address` - (Optional) Specify a static private IP address for the machine. (string)
 * `resource_group` - (Optional) Azure Resource Group name (will be created if missing). Default `docker-machine` (string)
-* `size` - (Optional) Size for Azure Virtual Machine. Default `Standard_A2` (string)
+* `size` - (Optional) Size for Azure Virtual Machine. Default `Standard_D2_v2` (string)
 * `ssh_user` - (Optional) Username for SSH login (string)
 * `static_public_ip` - (Optional) Assign a static public IP address to the machine. Default `false` (bool)
 * `storage_type` - (Optional) Type of Storage Account to host the OS Disk for the machine. Default `Standard_LRS` (string)
diff --git a/rancher2/schema_node_template_azure.go b/rancher2/schema_node_template_azure.go
index c4898625..a5eb1cdb 100644
--- a/rancher2/schema_node_template_azure.go
+++ b/rancher2/schema_node_template_azure.go
@@ -104,7 +104,7 @@ func azureConfigFields() map[string]*schema.Schema {
 		"image": {
 			Type:        schema.TypeString,
 			Optional:    true,
-			Default:     "canonical:UbuntuServer:18.04-LTS:latest",
+			Default:     "canonical:ubuntu-24_04-lts:server-gen1:latest",
 			Description: "Azure virtual machine OS image",
 		},
 		"location": {
@@ -158,7 +158,7 @@ func azureConfigFields() map[string]*schema.Schema {
 		"size": {
 			Type:        schema.TypeString,
 			Optional:    true,
-			Default:     "Standard_A2",
+			Default:     "Standard_D2_v2",
 			Description: "Size for Azure Virtual Machine",
 		},
 		"ssh_user": {