diff --git a/pkg/controllers/hub/trafficmanagerbackend/controller_integration_test.go b/pkg/controllers/hub/trafficmanagerbackend/controller_integration_test.go
index 35df084c..657cf8bd 100644
--- a/pkg/controllers/hub/trafficmanagerbackend/controller_integration_test.go
+++ b/pkg/controllers/hub/trafficmanagerbackend/controller_integration_test.go
@@ -62,32 +62,35 @@ func trafficManagerProfileForTest(name string) *fleetnetv1alpha1.TrafficManagerP
 	}
 }
 
-func buildFalseCondition() []metav1.Condition {
+func buildFalseCondition(generation int64) []metav1.Condition {
 	return []metav1.Condition{
 		{
-			Status: metav1.ConditionFalse,
-			Type:   string(fleetnetv1alpha1.TrafficManagerBackendConditionAccepted),
-			Reason: string(fleetnetv1alpha1.TrafficManagerBackendReasonInvalid),
+			Status:             metav1.ConditionFalse,
+			Type:               string(fleetnetv1alpha1.TrafficManagerBackendConditionAccepted),
+			Reason:             string(fleetnetv1alpha1.TrafficManagerBackendReasonInvalid),
+			ObservedGeneration: generation,
 		},
 	}
 }
 
-func buildUnknownCondition() []metav1.Condition {
+func buildUnknownCondition(generation int64) []metav1.Condition {
 	return []metav1.Condition{
 		{
-			Status: metav1.ConditionUnknown,
-			Type:   string(fleetnetv1alpha1.TrafficManagerBackendConditionAccepted),
-			Reason: string(fleetnetv1alpha1.TrafficManagerBackendReasonPending),
+			Status:             metav1.ConditionUnknown,
+			Type:               string(fleetnetv1alpha1.TrafficManagerBackendConditionAccepted),
+			Reason:             string(fleetnetv1alpha1.TrafficManagerBackendReasonPending),
+			ObservedGeneration: generation,
 		},
 	}
 }
 
-func buildTrueCondition() []metav1.Condition {
+func buildTrueCondition(generation int64) []metav1.Condition {
 	return []metav1.Condition{
 		{
-			Status: metav1.ConditionTrue,
-			Type:   string(fleetnetv1alpha1.TrafficManagerBackendConditionAccepted),
-			Reason: string(fleetnetv1alpha1.TrafficManagerBackendReasonAccepted),
+			Status:             metav1.ConditionTrue,
+			Type:               string(fleetnetv1alpha1.TrafficManagerBackendConditionAccepted),
+			Reason:             string(fleetnetv1alpha1.TrafficManagerBackendReasonAccepted),
+			ObservedGeneration: generation,
 		},
 	}
 }
@@ -123,7 +126,7 @@ var _ = Describe("Test TrafficManagerBackend Controller", func() {
 				},
 				Spec: backend.Spec,
 				Status: fleetnetv1alpha1.TrafficManagerBackendStatus{
-					Conditions: buildFalseCondition(),
+					Conditions: buildFalseCondition(backend.Generation),
 				},
 			}
 			validator.ValidateTrafficManagerBackend(ctx, k8sClient, &want)
@@ -167,7 +170,7 @@ var _ = Describe("Test TrafficManagerBackend Controller", func() {
 				},
 				Spec: backend.Spec,
 				Status: fleetnetv1alpha1.TrafficManagerBackendStatus{
-					Conditions: buildUnknownCondition(),
+					Conditions: buildUnknownCondition(backend.Generation),
 				},
 			}
 			validator.ValidateTrafficManagerBackend(ctx, k8sClient, &want)
@@ -187,7 +190,7 @@ var _ = Describe("Test TrafficManagerBackend Controller", func() {
 				},
 				Spec: backend.Spec,
 				Status: fleetnetv1alpha1.TrafficManagerBackendStatus{
-					Conditions: buildFalseCondition(),
+					Conditions: buildFalseCondition(backend.Generation),
 				},
 			}
 			validator.ValidateTrafficManagerBackend(ctx, k8sClient, &want)
@@ -245,7 +248,7 @@ var _ = Describe("Test TrafficManagerBackend Controller", func() {
 				},
 				Spec: backend.Spec,
 				Status: fleetnetv1alpha1.TrafficManagerBackendStatus{
-					Conditions: buildUnknownCondition(),
+					Conditions: buildUnknownCondition(backend.Generation),
 				},
 			}
 			validator.ValidateTrafficManagerBackend(ctx, k8sClient, &want)
@@ -371,7 +374,7 @@ var _ = Describe("Test TrafficManagerBackend Controller", func() {
 				},
 				Spec: backend.Spec,
 				Status: fleetnetv1alpha1.TrafficManagerBackendStatus{
-					Conditions: buildFalseCondition(),
+					Conditions: buildFalseCondition(backend.Generation),
 				},
 			}
 			validator.ValidateTrafficManagerBackend(ctx, k8sClient, &want)
@@ -398,7 +401,7 @@ var _ = Describe("Test TrafficManagerBackend Controller", func() {
 				},
 				Spec: backend.Spec,
 				Status: fleetnetv1alpha1.TrafficManagerBackendStatus{
-					Conditions: buildUnknownCondition(),
+					Conditions: buildUnknownCondition(backend.Generation),
 				},
 			}
 			validator.ValidateTrafficManagerBackend(ctx, k8sClient, &want)
@@ -456,7 +459,7 @@ var _ = Describe("Test TrafficManagerBackend Controller", func() {
 				},
 				Spec: backend.Spec,
 				Status: fleetnetv1alpha1.TrafficManagerBackendStatus{
-					Conditions: buildFalseCondition(),
+					Conditions: buildFalseCondition(backend.Generation),
 				},
 			}
 			validator.ValidateTrafficManagerBackend(ctx, k8sClient, &want)
@@ -586,7 +589,7 @@ var _ = Describe("Test TrafficManagerBackend Controller", func() {
 				},
 				Spec: backend.Spec,
 				Status: fleetnetv1alpha1.TrafficManagerBackendStatus{
-					Conditions: buildFalseCondition(),
+					Conditions: buildFalseCondition(backend.Generation),
 				},
 			}
 			validator.ValidateTrafficManagerBackend(ctx, k8sClient, &want)
@@ -611,7 +614,7 @@ var _ = Describe("Test TrafficManagerBackend Controller", func() {
 				},
 				Spec: backend.Spec,
 				Status: fleetnetv1alpha1.TrafficManagerBackendStatus{
-					Conditions: buildUnknownCondition(),
+					Conditions: buildUnknownCondition(backend.Generation),
 				},
 			}
 			validator.ValidateTrafficManagerBackend(ctx, k8sClient, &want)
@@ -637,7 +640,7 @@ var _ = Describe("Test TrafficManagerBackend Controller", func() {
 				},
 				Spec: backend.Spec,
 				Status: fleetnetv1alpha1.TrafficManagerBackendStatus{
-					Conditions: buildUnknownCondition(),
+					Conditions: buildUnknownCondition(backend.Generation),
 				},
 			}
 			validator.ValidateTrafficManagerBackendConsistently(ctx, k8sClient, &want)
@@ -701,7 +704,7 @@ var _ = Describe("Test TrafficManagerBackend Controller", func() {
 				},
 				Spec: backend.Spec,
 				Status: fleetnetv1alpha1.TrafficManagerBackendStatus{
-					Conditions: buildFalseCondition(),
+					Conditions: buildFalseCondition(backend.Generation),
 				},
 			}
 			validator.ValidateTrafficManagerBackend(ctx, k8sClient, &want)
@@ -727,7 +730,7 @@ var _ = Describe("Test TrafficManagerBackend Controller", func() {
 				},
 				Spec: backend.Spec,
 				Status: fleetnetv1alpha1.TrafficManagerBackendStatus{
-					Conditions: buildUnknownCondition(),
+					Conditions: buildUnknownCondition(backend.Generation),
 				},
 			}
 			validator.ValidateTrafficManagerBackend(ctx, k8sClient, &want)
@@ -757,7 +760,7 @@ var _ = Describe("Test TrafficManagerBackend Controller", func() {
 				},
 				Spec: backend.Spec,
 				Status: fleetnetv1alpha1.TrafficManagerBackendStatus{
-					Conditions: buildFalseCondition(),
+					Conditions: buildFalseCondition(backend.Generation),
 					Endpoints: []fleetnetv1alpha1.TrafficManagerEndpointStatus{
 						{
 							Name: fmt.Sprintf(AzureResourceEndpointNameFormat, backendName+"#", serviceName, memberClusterNames[0]),
@@ -797,7 +800,7 @@ var _ = Describe("Test TrafficManagerBackend Controller", func() {
 				},
 				Spec: backend.Spec,
 				Status: fleetnetv1alpha1.TrafficManagerBackendStatus{
-					Conditions: buildTrueCondition(),
+					Conditions: buildTrueCondition(backend.Generation),
 					Endpoints: []fleetnetv1alpha1.TrafficManagerEndpointStatus{
 						{
 							Name: fmt.Sprintf(AzureResourceEndpointNameFormat, backendName+"#", serviceName, memberClusterNames[0]),
@@ -845,7 +848,7 @@ var _ = Describe("Test TrafficManagerBackend Controller", func() {
 				},
 				Spec: backend.Spec,
 				Status: fleetnetv1alpha1.TrafficManagerBackendStatus{
-					Conditions: buildFalseCondition(),
+					Conditions: buildFalseCondition(backend.Generation),
 					Endpoints: []fleetnetv1alpha1.TrafficManagerEndpointStatus{
 						{
 							Name: fmt.Sprintf(AzureResourceEndpointNameFormat, backendName+"#", serviceName, memberClusterNames[0]),
@@ -885,7 +888,7 @@ var _ = Describe("Test TrafficManagerBackend Controller", func() {
 				},
 				Spec: backend.Spec,
 				Status: fleetnetv1alpha1.TrafficManagerBackendStatus{
-					Conditions: buildUnknownCondition(),
+					Conditions: buildUnknownCondition(backend.Generation),
 				},
 			}
 			validator.ValidateTrafficManagerBackend(ctx, k8sClient, &want)
@@ -919,7 +922,7 @@ var _ = Describe("Test TrafficManagerBackend Controller", func() {
 				},
 				Spec: backend.Spec,
 				Status: fleetnetv1alpha1.TrafficManagerBackendStatus{
-					Conditions: buildFalseCondition(),
+					Conditions: buildFalseCondition(backend.Generation),
 				},
 			}
 			validator.ValidateTrafficManagerBackend(ctx, k8sClient, &want)
@@ -942,7 +945,7 @@ var _ = Describe("Test TrafficManagerBackend Controller", func() {
 				},
 				Spec: backend.Spec,
 				Status: fleetnetv1alpha1.TrafficManagerBackendStatus{
-					Conditions: buildTrueCondition(),
+					Conditions: buildTrueCondition(backend.Generation),
 					Endpoints: []fleetnetv1alpha1.TrafficManagerEndpointStatus{
 						{
 							Name: fmt.Sprintf(AzureResourceEndpointNameFormat, backendName+"#", serviceName, memberClusterNames[0]),
diff --git a/pkg/controllers/hub/trafficmanagerprofile/controller_integration_test.go b/pkg/controllers/hub/trafficmanagerprofile/controller_integration_test.go
index ca4f5ddd..e31e90a4 100644
--- a/pkg/controllers/hub/trafficmanagerprofile/controller_integration_test.go
+++ b/pkg/controllers/hub/trafficmanagerprofile/controller_integration_test.go
@@ -63,9 +63,10 @@ var _ = Describe("Test TrafficManagerProfile Controller", func() {
 					DNSName: ptr.To(fqdn),
 					Conditions: []metav1.Condition{
 						{
-							Status: metav1.ConditionTrue,
-							Type:   string(fleetnetv1alpha1.TrafficManagerProfileConditionProgrammed),
-							Reason: string(fleetnetv1alpha1.TrafficManagerProfileReasonProgrammed),
+							Status:             metav1.ConditionTrue,
+							Type:               string(fleetnetv1alpha1.TrafficManagerProfileConditionProgrammed),
+							Reason:             string(fleetnetv1alpha1.TrafficManagerProfileReasonProgrammed),
+							ObservedGeneration: profile.Generation,
 						},
 					},
 				},
@@ -91,9 +92,10 @@ var _ = Describe("Test TrafficManagerProfile Controller", func() {
 				Status: fleetnetv1alpha1.TrafficManagerProfileStatus{
 					Conditions: []metav1.Condition{
 						{
-							Status: metav1.ConditionFalse,
-							Type:   string(fleetnetv1alpha1.TrafficManagerProfileConditionProgrammed),
-							Reason: string(fleetnetv1alpha1.TrafficManagerProfileReasonInvalid),
+							Status:             metav1.ConditionFalse,
+							Type:               string(fleetnetv1alpha1.TrafficManagerProfileConditionProgrammed),
+							Reason:             string(fleetnetv1alpha1.TrafficManagerProfileReasonInvalid),
+							ObservedGeneration: profile.Generation,
 						},
 					},
 				},
@@ -148,9 +150,10 @@ var _ = Describe("Test TrafficManagerProfile Controller", func() {
 					DNSName: ptr.To(fmt.Sprintf(fakeprovider.ProfileDNSNameFormat, name)),
 					Conditions: []metav1.Condition{
 						{
-							Status: metav1.ConditionTrue,
-							Type:   string(fleetnetv1alpha1.TrafficManagerProfileConditionProgrammed),
-							Reason: string(fleetnetv1alpha1.TrafficManagerProfileReasonProgrammed),
+							Status:             metav1.ConditionTrue,
+							Type:               string(fleetnetv1alpha1.TrafficManagerProfileConditionProgrammed),
+							Reason:             string(fleetnetv1alpha1.TrafficManagerProfileReasonProgrammed),
+							ObservedGeneration: profile.Generation,
 						},
 					},
 				},
@@ -188,9 +191,10 @@ var _ = Describe("Test TrafficManagerProfile Controller", func() {
 				Status: fleetnetv1alpha1.TrafficManagerProfileStatus{
 					Conditions: []metav1.Condition{
 						{
-							Status: metav1.ConditionFalse,
-							Type:   string(fleetnetv1alpha1.TrafficManagerProfileConditionProgrammed),
-							Reason: string(fleetnetv1alpha1.TrafficManagerProfileReasonDNSNameNotAvailable),
+							Status:             metav1.ConditionFalse,
+							Type:               string(fleetnetv1alpha1.TrafficManagerProfileConditionProgrammed),
+							Reason:             string(fleetnetv1alpha1.TrafficManagerProfileReasonDNSNameNotAvailable),
+							ObservedGeneration: profile.Generation,
 						},
 					},
 				},
@@ -228,9 +232,10 @@ var _ = Describe("Test TrafficManagerProfile Controller", func() {
 				Status: fleetnetv1alpha1.TrafficManagerProfileStatus{
 					Conditions: []metav1.Condition{
 						{
-							Status: metav1.ConditionUnknown,
-							Type:   string(fleetnetv1alpha1.TrafficManagerProfileConditionProgrammed),
-							Reason: string(fleetnetv1alpha1.TrafficManagerProfileReasonPending),
+							Status:             metav1.ConditionUnknown,
+							Type:               string(fleetnetv1alpha1.TrafficManagerProfileConditionProgrammed),
+							Reason:             string(fleetnetv1alpha1.TrafficManagerProfileReasonPending),
+							ObservedGeneration: profile.Generation,
 						},
 					},
 				},
@@ -268,9 +273,10 @@ var _ = Describe("Test TrafficManagerProfile Controller", func() {
 				Status: fleetnetv1alpha1.TrafficManagerProfileStatus{
 					Conditions: []metav1.Condition{
 						{
-							Status: metav1.ConditionFalse,
-							Type:   string(fleetnetv1alpha1.TrafficManagerProfileConditionProgrammed),
-							Reason: string(fleetnetv1alpha1.TrafficManagerProfileReasonInvalid),
+							Status:             metav1.ConditionFalse,
+							Type:               string(fleetnetv1alpha1.TrafficManagerProfileConditionProgrammed),
+							Reason:             string(fleetnetv1alpha1.TrafficManagerProfileReasonInvalid),
+							ObservedGeneration: profile.Generation,
 						},
 					},
 				},
@@ -308,9 +314,10 @@ var _ = Describe("Test TrafficManagerProfile Controller", func() {
 				Status: fleetnetv1alpha1.TrafficManagerProfileStatus{
 					Conditions: []metav1.Condition{
 						{
-							Status: metav1.ConditionUnknown,
-							Type:   string(fleetnetv1alpha1.TrafficManagerProfileConditionProgrammed),
-							Reason: string(fleetnetv1alpha1.TrafficManagerProfileReasonPending),
+							Status:             metav1.ConditionUnknown,
+							Type:               string(fleetnetv1alpha1.TrafficManagerProfileConditionProgrammed),
+							Reason:             string(fleetnetv1alpha1.TrafficManagerProfileReasonPending),
+							ObservedGeneration: profile.Generation,
 						},
 					},
 				},
diff --git a/test/common/trafficmanager/azureprovider/profile.go b/test/common/trafficmanager/azureprovider/profile.go
index 1c425d25..cff69bbe 100644
--- a/test/common/trafficmanager/azureprovider/profile.go
+++ b/test/common/trafficmanager/azureprovider/profile.go
@@ -13,12 +13,19 @@ import (
 	"github.com/google/go-cmp/cmp"
 	"github.com/google/go-cmp/cmp/cmpopts"
 	"github.com/onsi/gomega"
+
+	"go.goms.io/fleet-networking/pkg/common/azureerrors"
 )
 
 var (
 	cmpProfileOptions = cmp.Options{
 		cmpopts.IgnoreFields(armtrafficmanager.Profile{}, "ID", "Name", "Type"),
-		cmpopts.IgnoreFields(armtrafficmanager.MonitorConfig{}, "ProfileMonitorStatus"), // cannot predict the monitor status
+		cmpopts.IgnoreFields(armtrafficmanager.MonitorConfig{}, "ProfileMonitorStatus"),                                                           // cannot predict the monitor status
+		cmpopts.IgnoreFields(armtrafficmanager.Endpoint{}, "ID"),                                                                                  // ignore the resource ID for now
+		cmpopts.IgnoreFields(armtrafficmanager.EndpointProperties{}, "TargetResourceID", "EndpointLocation", "EndpointMonitorStatus", "Priority"), // cannot predict the status
+		cmpopts.SortSlices(func(e1, e2 armtrafficmanager.Endpoint) bool {
+			return *e1.Name < *e2.Name
+		}),
 	}
 )
 
@@ -35,3 +42,9 @@ func (v *Validator) ValidateProfile(ctx context.Context, name string, want armtr
 	diff := cmp.Diff(want, res.Profile, cmpProfileOptions)
 	gomega.Expect(diff).Should(gomega.BeEmpty(), "trafficManagerProfile mismatch (-want, +got) :\n%s", diff)
 }
+
+// IsProfileDeleted validates the traffic manager profile is deleted.
+func (v *Validator) IsProfileDeleted(ctx context.Context, name string) {
+	_, err := v.ProfileClient.Get(ctx, v.ResourceGroup, name, nil)
+	gomega.Expect(azureerrors.IsNotFound(err)).Should(gomega.BeTrue(), "trafficManagerProfile %s still exists or hit error %v", name, err)
+}
diff --git a/test/common/trafficmanager/validator/backend.go b/test/common/trafficmanager/validator/backend.go
index 03f98896..cdddfa70 100644
--- a/test/common/trafficmanager/validator/backend.go
+++ b/test/common/trafficmanager/validator/backend.go
@@ -32,9 +32,12 @@ var (
 		cmpConditionOptions,
 	}
 
-	cmpTrafficManagerStatusByIgnoringEndpointName = cmp.Options{
+	cmpTrafficManagerBackendStatusByIgnoringEndpointName = cmp.Options{
 		cmpConditionOptions,
 		cmpopts.IgnoreFields(fleetnetv1alpha1.TrafficManagerEndpointStatus{}, "Name"), // ignore the generated endpoint name
+		cmpopts.SortSlices(func(s1, s2 fleetnetv1alpha1.TrafficManagerEndpointStatus) bool {
+			return s1.Cluster.Cluster < s2.Cluster.Cluster
+		}),
 	}
 )
 
@@ -54,47 +57,50 @@ func IsTrafficManagerBackendFinalizerAdded(ctx context.Context, k8sClient client
 
 // ValidateTrafficManagerBackendIfAcceptedAndIgnoringEndpointName validates the trafficManagerBackend object if it is accepted
 // while ignoring the generated endpoint name.
-func ValidateTrafficManagerBackendIfAcceptedAndIgnoringEndpointName(ctx context.Context, k8sClient client.Client, backendName types.NamespacedName, wantEndpoints []fleetnetv1alpha1.TrafficManagerEndpointStatus) fleetnetv1alpha1.TrafficManagerBackendStatus {
-	var wantStatus fleetnetv1alpha1.TrafficManagerBackendStatus
-	if len(wantEndpoints) == 0 {
-		wantStatus = fleetnetv1alpha1.TrafficManagerBackendStatus{
-			Conditions: []metav1.Condition{
-				{
-					Status: metav1.ConditionFalse,
-					Type:   string(fleetnetv1alpha1.TrafficManagerBackendConditionAccepted),
-					Reason: string(fleetnetv1alpha1.TrafficManagerBackendReasonInvalid),
-				},
-			},
-		}
-	} else {
-		wantStatus = fleetnetv1alpha1.TrafficManagerBackendStatus{
-			Conditions: []metav1.Condition{
-				{
-					Status: metav1.ConditionTrue,
-					Type:   string(fleetnetv1alpha1.TrafficManagerBackendConditionAccepted),
-					Reason: string(fleetnetv1alpha1.TrafficManagerBackendReasonAccepted),
-				},
-			},
-			Endpoints: wantEndpoints,
-		}
-	}
-
+func ValidateTrafficManagerBackendIfAcceptedAndIgnoringEndpointName(ctx context.Context, k8sClient client.Client, backendName types.NamespacedName, isAccepted bool, wantEndpoints []fleetnetv1alpha1.TrafficManagerEndpointStatus) fleetnetv1alpha1.TrafficManagerBackendStatus {
+	var gotStatus fleetnetv1alpha1.TrafficManagerBackendStatus
 	gomega.Eventually(func() error {
 		backend := &fleetnetv1alpha1.TrafficManagerBackend{}
 		if err := k8sClient.Get(ctx, backendName, backend); err != nil {
 			return err
 		}
-
+		var wantStatus fleetnetv1alpha1.TrafficManagerBackendStatus
+		if !isAccepted {
+			wantStatus = fleetnetv1alpha1.TrafficManagerBackendStatus{
+				Conditions: []metav1.Condition{
+					{
+						Status:             metav1.ConditionFalse,
+						Type:               string(fleetnetv1alpha1.TrafficManagerBackendConditionAccepted),
+						Reason:             string(fleetnetv1alpha1.TrafficManagerBackendReasonInvalid),
+						ObservedGeneration: backend.Generation,
+					},
+				},
+				Endpoints: wantEndpoints,
+			}
+		} else {
+			wantStatus = fleetnetv1alpha1.TrafficManagerBackendStatus{
+				Conditions: []metav1.Condition{
+					{
+						Status:             metav1.ConditionTrue,
+						Type:               string(fleetnetv1alpha1.TrafficManagerBackendConditionAccepted),
+						Reason:             string(fleetnetv1alpha1.TrafficManagerBackendReasonAccepted),
+						ObservedGeneration: backend.Generation,
+					},
+				},
+				Endpoints: wantEndpoints,
+			}
+		}
+		gotStatus = backend.Status
 		if diff := cmp.Diff(
-			backend.Status,
+			gotStatus,
 			wantStatus,
-			cmpTrafficManagerStatusByIgnoringEndpointName,
+			cmpTrafficManagerBackendStatusByIgnoringEndpointName,
 		); diff != "" {
 			return fmt.Errorf("trafficManagerBackend status diff (-got, +want): %s", diff)
 		}
 		return nil
 	}, timeout, interval).Should(gomega.Succeed(), "Get() trafficManagerBackend status mismatch")
-	return wantStatus
+	return gotStatus
 }
 
 // ValidateTrafficManagerBackendStatusAndIgnoringEndpointNameConsistently validates the trafficManagerBackend status consistently
@@ -109,7 +115,7 @@ func ValidateTrafficManagerBackendStatusAndIgnoringEndpointNameConsistently(ctx
 		if diff := cmp.Diff(
 			backend.Status,
 			want,
-			cmpTrafficManagerStatusByIgnoringEndpointName,
+			cmpTrafficManagerBackendStatusByIgnoringEndpointName,
 		); diff != "" {
 			return fmt.Errorf("trafficManagerBackend status diff (-got, +want): %s", diff)
 		}
diff --git a/test/common/trafficmanager/validator/profile.go b/test/common/trafficmanager/validator/profile.go
index b3f26bc0..80757b51 100644
--- a/test/common/trafficmanager/validator/profile.go
+++ b/test/common/trafficmanager/validator/profile.go
@@ -24,7 +24,7 @@ import (
 )
 
 const (
-	timeout  = time.Second * 10
+	timeout  = time.Second * 60 // need more time to create azure resources
 	interval = time.Millisecond * 250
 	// duration used by consistently
 	duration = time.Second * 30
@@ -39,7 +39,7 @@ var (
 		}),
 	}
 	cmpConditionOptions = cmp.Options{
-		cmpopts.IgnoreFields(metav1.Condition{}, "Message", "LastTransitionTime", "ObservedGeneration"),
+		cmpopts.IgnoreFields(metav1.Condition{}, "Message", "LastTransitionTime"),
 	}
 	cmpTrafficManagerProfileOptions = cmp.Options{
 		commonCmpOptions,
@@ -64,25 +64,24 @@ func ValidateTrafficManagerProfile(ctx context.Context, k8sClient client.Client,
 }
 
 // ValidateIfTrafficManagerProfileIsProgrammed validates the trafficManagerProfile is programmed and returns the DNSName.
-func ValidateIfTrafficManagerProfileIsProgrammed(ctx context.Context, k8sClient client.Client, profileName types.NamespacedName) string {
+func ValidateIfTrafficManagerProfileIsProgrammed(ctx context.Context, k8sClient client.Client, profileName types.NamespacedName) *fleetnetv1alpha1.TrafficManagerProfile {
 	wantDNSName := fmt.Sprintf("%s-%s.trafficmanager.net", profileName.Namespace, profileName.Name)
-	wantStatus := fleetnetv1alpha1.TrafficManagerProfileStatus{
-		DNSName: ptr.To(wantDNSName),
-		Conditions: []metav1.Condition{
-			{
-				Status: metav1.ConditionTrue,
-				Type:   string(fleetnetv1alpha1.TrafficManagerProfileConditionProgrammed),
-				Reason: string(fleetnetv1alpha1.TrafficManagerProfileReasonProgrammed),
-			},
-		},
-	}
-
+	var profile fleetnetv1alpha1.TrafficManagerProfile
 	gomega.Eventually(func() error {
-		profile := &fleetnetv1alpha1.TrafficManagerProfile{}
-		if err := k8sClient.Get(ctx, profileName, profile); err != nil {
+		if err := k8sClient.Get(ctx, profileName, &profile); err != nil {
 			return err
 		}
-
+		wantStatus := fleetnetv1alpha1.TrafficManagerProfileStatus{
+			DNSName: ptr.To(wantDNSName),
+			Conditions: []metav1.Condition{
+				{
+					Status:             metav1.ConditionTrue,
+					Type:               string(fleetnetv1alpha1.TrafficManagerProfileConditionProgrammed),
+					Reason:             string(fleetnetv1alpha1.TrafficManagerProfileReasonProgrammed),
+					ObservedGeneration: profile.Generation,
+				},
+			},
+		}
 		if diff := cmp.Diff(
 			profile.Status,
 			wantStatus,
@@ -92,7 +91,7 @@ func ValidateIfTrafficManagerProfileIsProgrammed(ctx context.Context, k8sClient
 		}
 		return nil
 	}, timeout, interval).Should(gomega.Succeed(), "Get() trafficManagerProfile status mismatch")
-	return wantDNSName
+	return &profile
 }
 
 // IsTrafficManagerProfileDeleted validates whether the profile is deleted or not.
diff --git a/test/e2e/e2e_test.go b/test/e2e/e2e_test.go
index ca03b84f..e1f3e3bb 100644
--- a/test/e2e/e2e_test.go
+++ b/test/e2e/e2e_test.go
@@ -31,11 +31,14 @@ import (
 const (
 	azureSubscriptionEnv                = "AZURE_SUBSCRIPTION_ID"
 	azureTrafficManagerResourceGroupEnv = "AZURE_RESOURCE_GROUP"
+
+	azureDNSFormat = "%s.%s.cloudapp.azure.com"
 )
 
 var (
 	hubClusterName     = "hub"
 	memberClusterNames = []string{"member-1", "member-2"}
+	clusterLocation    = "eastus2"
 
 	testNamespace string
 
diff --git a/test/e2e/framework/workload_manager.go b/test/e2e/framework/workload_manager.go
index 6e12be87..2323dd4a 100644
--- a/test/e2e/framework/workload_manager.go
+++ b/test/e2e/framework/workload_manager.go
@@ -24,6 +24,7 @@ import (
 	"k8s.io/utils/ptr"
 
 	fleetnetv1alpha1 "go.goms.io/fleet-networking/api/v1alpha1"
+	"go.goms.io/fleet-networking/pkg/common/objectmeta"
 	"go.goms.io/fleet-networking/pkg/common/uniquename"
 )
 
@@ -201,6 +202,27 @@ func (wm *WorkloadManager) DeployWorkload(ctx context.Context) error {
 	return nil
 }
 
+// AddServiceDNSLabel adds a DNS label to the service in member cluster.
+func (wm *WorkloadManager) AddServiceDNSLabel(ctx context.Context, cluster *Cluster) error {
+	var service corev1.Service
+	if err := cluster.kubeClient.Get(ctx, types.NamespacedName{Namespace: wm.namespace, Name: wm.service.Name}, &service); err != nil {
+		return fmt.Errorf("failed to get service %s in cluster %s: %w", wm.service.Name, cluster.Name(), err)
+	}
+	if service.Annotations == nil {
+		service.Annotations = make(map[string]string)
+	}
+	service.Annotations[objectmeta.ServiceAnnotationAzureDNSLabelName] = wm.BuildServiceDNSLabelName(cluster)
+	if err := cluster.kubeClient.Update(ctx, &service); err != nil {
+		return fmt.Errorf("failed to update service %s in cluster %s: %w", service.Name, cluster.Name(), err)
+	}
+	return nil
+}
+
+// BuildServiceDNSLabelName builds the DNS label name for the service.
+func (wm *WorkloadManager) BuildServiceDNSLabelName(cluster *Cluster) string {
+	return fmt.Sprintf("%s-%s-%s", wm.namespace, wm.service.Name, cluster.name)
+}
+
 // RemoveWorkload deletes workload(deployment and its service) from member clusters.
 func (wm *WorkloadManager) RemoveWorkload(ctx context.Context) error {
 	for _, m := range wm.Fleet.MemberClusters() {
diff --git a/test/e2e/traffic_manager_test.go b/test/e2e/traffic_manager_test.go
index 16fd6167..9b3fe40c 100644
--- a/test/e2e/traffic_manager_test.go
+++ b/test/e2e/traffic_manager_test.go
@@ -29,7 +29,10 @@ var (
 var _ = Describe("Test exporting service via Azure traffic manager", func() {
 	var wm *framework.WorkloadManager
 	var profile fleetnetv1alpha1.TrafficManagerProfile
+	var profileName types.NamespacedName
 	var hubClient client.Client
+	var atmProfileName string
+	var atmProfile armtrafficmanager.Profile
 
 	BeforeEach(func() {
 		if !enabled {
@@ -47,38 +50,13 @@ var _ = Describe("Test exporting service via Azure traffic manager", func() {
 		Expect(hubClient.Create(ctx, &profile)).Should(Succeed(), "Failed to creat the trafficManagerProfile")
 
 		By("Validating the trafficManagerProfile status")
-		wantDNSName := validator.ValidateIfTrafficManagerProfileIsProgrammed(ctx, hubClient, types.NamespacedName{Namespace: profile.Namespace, Name: profile.Name})
+		profileName = types.NamespacedName{Namespace: profile.Namespace, Name: profile.Name}
+		profile = *validator.ValidateIfTrafficManagerProfileIsProgrammed(ctx, hubClient, profileName)
 
 		By("Validating the Azure traffic manager profile")
-		atmName := fmt.Sprintf(trafficmanagerprofile.AzureResourceProfileNameFormat, profile.UID)
-		monitorConfig := profile.Spec.MonitorConfig
-		namespacedName := types.NamespacedName{Name: profile.Name, Namespace: profile.Namespace}
-		want := armtrafficmanager.Profile{
-			Location: ptr.To("global"),
-			Tags: map[string]*string{
-				objectmeta.AzureTrafficManagerProfileTagKey: ptr.To(namespacedName.String()),
-			},
-			Properties: &armtrafficmanager.ProfileProperties{
-				ProfileStatus:        ptr.To(armtrafficmanager.ProfileStatusEnabled),
-				TrafficRoutingMethod: ptr.To(armtrafficmanager.TrafficRoutingMethodWeighted),
-				DNSConfig: &armtrafficmanager.DNSConfig{
-					RelativeName: ptr.To(fmt.Sprintf(trafficmanagerprofile.DNSRelativeNameFormat, profile.Namespace, profile.Name)),
-					Fqdn:         &wantDNSName,
-					TTL:          ptr.To(trafficmanagerprofile.DefaultDNSTTL),
-				},
-				MonitorConfig: &armtrafficmanager.MonitorConfig{
-					IntervalInSeconds:         monitorConfig.IntervalInSeconds,
-					Path:                      monitorConfig.Path,
-					Port:                      monitorConfig.Port,
-					Protocol:                  ptr.To(armtrafficmanager.MonitorProtocol(*monitorConfig.Protocol)),
-					TimeoutInSeconds:          monitorConfig.TimeoutInSeconds,
-					ToleratedNumberOfFailures: monitorConfig.ToleratedNumberOfFailures,
-				},
-				Endpoints:                   []*armtrafficmanager.Endpoint{},
-				TrafficViewEnrollmentStatus: ptr.To(armtrafficmanager.TrafficViewEnrollmentStatusDisabled),
-			},
-		}
-		atmValidator.ValidateProfile(ctx, atmName, want)
+		atmProfileName = fmt.Sprintf(trafficmanagerprofile.AzureResourceProfileNameFormat, profile.UID)
+		atmProfile = buildDesiredATMProfile(profile, nil)
+		atmValidator.ValidateProfile(ctx, atmProfileName, atmProfile)
 	})
 
 	AfterEach(func() {
@@ -93,7 +71,34 @@ var _ = Describe("Test exporting service via Azure traffic manager", func() {
 		Expect(hubClient.Delete(ctx, &profile)).Should(Succeed(), "Failed to delete the trafficManagerProfile")
 
 		By("Validating trafficManagerProfile is deleted")
-		validator.IsTrafficManagerProfileDeleted(ctx, hubClient, types.NamespacedName{Namespace: profile.Namespace, Name: profile.Name})
+		validator.IsTrafficManagerProfileDeleted(ctx, hubClient, profileName)
+
+		By("Validating Azure traffic manager profile")
+		atmValidator.IsProfileDeleted(ctx, atmProfileName)
+	})
+
+	Context("Test updating trafficManagerProfile", Ordered, func() {
+		BeforeAll(func() {
+			By("Updating Azure traffic manager profile")
+			atmProfile.Properties.DNSConfig.TTL = ptr.To(int64(30))
+			atmProfile.Properties.TrafficViewEnrollmentStatus = ptr.To(armtrafficmanager.TrafficViewEnrollmentStatusEnabled)
+			_, err := atmValidator.ProfileClient.CreateOrUpdate(ctx, atmValidator.ResourceGroup, atmProfileName, atmProfile, nil)
+			Expect(err).Should(Succeed(), "Failed to update the Azure traffic manager profile")
+
+			By("Updating the trafficManagerProfile spec")
+			profile.Spec.MonitorConfig.ToleratedNumberOfFailures = ptr.To(int64(5))
+			Expect(hubClient.Update(ctx, &profile)).Should(Succeed(), "Failed to update the trafficManagerProfile")
+		})
+
+		It("Validating the trafficManagerProfile status", func() {
+			validator.ValidateIfTrafficManagerProfileIsProgrammed(ctx, hubClient, profileName)
+
+			By("Validating the Azure traffic manager profile")
+			atmProfile = buildDesiredATMProfile(profile, nil)
+			// Controller does not set the trafficViewEnrollmentStatus.
+			atmProfile.Properties.TrafficViewEnrollmentStatus = ptr.To(armtrafficmanager.TrafficViewEnrollmentStatusEnabled)
+			atmValidator.ValidateProfile(ctx, atmProfileName, atmProfile)
+		})
 	})
 
 	Context("Test invalid trafficManagerBackend (invalid serviceImport)", Ordered, func() {
@@ -113,8 +118,103 @@ var _ = Describe("Test exporting service via Azure traffic manager", func() {
 		})
 
 		It("Validating the trafficManagerBackend status", func() {
-			status := validator.ValidateTrafficManagerBackendIfAcceptedAndIgnoringEndpointName(ctx, hubClient, name, nil)
+			status := validator.ValidateTrafficManagerBackendIfAcceptedAndIgnoringEndpointName(ctx, hubClient, name, false, nil)
 			validator.ValidateTrafficManagerBackendStatusAndIgnoringEndpointNameConsistently(ctx, hubClient, name, status)
+
+			By("Exporting service with no DNS label assigned")
+			Expect(wm.ExportService(ctx, wm.ServiceExport())).Should(Succeed())
+
+			By("Validating the trafficManagerBackend status")
+			status = validator.ValidateTrafficManagerBackendIfAcceptedAndIgnoringEndpointName(ctx, hubClient, name, false, nil)
+			validator.ValidateTrafficManagerBackendStatusAndIgnoringEndpointNameConsistently(ctx, hubClient, name, status)
+
+			By("Adding DNS label to the service on member-1")
+			Eventually(func() error {
+				return wm.AddServiceDNSLabel(ctx, memberClusters[0])
+			}, framework.PollTimeout, framework.PollInterval).Should(Succeed(), "Failed to add DNS label to the service")
+
+			By("Validating the trafficManagerBackend status")
+			wantEndpoints := []fleetnetv1alpha1.TrafficManagerEndpointStatus{
+				{
+					Weight:  ptr.To(int64(100)),
+					Target:  ptr.To(fmt.Sprintf(azureDNSFormat, wm.BuildServiceDNSLabelName(memberClusters[0]), clusterLocation)),
+					Cluster: &fleetnetv1alpha1.ClusterStatus{Cluster: memberClusters[0].Name()},
+				},
+			}
+			status = validator.ValidateTrafficManagerBackendIfAcceptedAndIgnoringEndpointName(ctx, hubClient, name, false, wantEndpoints)
+			validator.ValidateTrafficManagerBackendStatusAndIgnoringEndpointNameConsistently(ctx, hubClient, name, status)
+
+			By("Validating the Azure traffic manager profile")
+			atmProfile = buildDesiredATMProfile(profile, status.Endpoints)
+			atmValidator.ValidateProfile(ctx, atmProfileName, atmProfile)
+
+			By("Adding DNS label to the service on member-2")
+			Eventually(func() error {
+				return wm.AddServiceDNSLabel(ctx, memberClusters[1])
+			}, framework.PollTimeout, framework.PollInterval).Should(Succeed(), "Failed to add DNS label to the service")
+
+			By("Validating the trafficManagerBackend status")
+			wantEndpoints = []fleetnetv1alpha1.TrafficManagerEndpointStatus{
+				{
+					Weight:  ptr.To(int64(50)),
+					Target:  ptr.To(fmt.Sprintf(azureDNSFormat, wm.BuildServiceDNSLabelName(memberClusters[0]), clusterLocation)),
+					Cluster: &fleetnetv1alpha1.ClusterStatus{Cluster: memberClusters[0].Name()},
+				},
+				{
+					Weight:  ptr.To(int64(50)),
+					Target:  ptr.To(fmt.Sprintf(azureDNSFormat, wm.BuildServiceDNSLabelName(memberClusters[1]), clusterLocation)),
+					Cluster: &fleetnetv1alpha1.ClusterStatus{Cluster: memberClusters[1].Name()},
+				},
+			}
+			status = validator.ValidateTrafficManagerBackendIfAcceptedAndIgnoringEndpointName(ctx, hubClient, name, true, wantEndpoints)
+			validator.ValidateTrafficManagerBackendStatusAndIgnoringEndpointNameConsistently(ctx, hubClient, name, status)
+
+			By("Validating the Azure traffic manager profile")
+			atmProfile = buildDesiredATMProfile(profile, status.Endpoints)
+			atmValidator.ValidateProfile(ctx, atmProfileName, atmProfile)
 		})
 	})
 })
+
+func buildDesiredATMProfile(profile fleetnetv1alpha1.TrafficManagerProfile, endpoints []fleetnetv1alpha1.TrafficManagerEndpointStatus) armtrafficmanager.Profile {
+	monitorConfig := profile.Spec.MonitorConfig
+	namespacedName := types.NamespacedName{Name: profile.Name, Namespace: profile.Namespace}
+	res := armtrafficmanager.Profile{
+		Location: ptr.To("global"),
+		Tags: map[string]*string{
+			objectmeta.AzureTrafficManagerProfileTagKey: ptr.To(namespacedName.String()),
+		},
+		Properties: &armtrafficmanager.ProfileProperties{
+			ProfileStatus:        ptr.To(armtrafficmanager.ProfileStatusEnabled),
+			TrafficRoutingMethod: ptr.To(armtrafficmanager.TrafficRoutingMethodWeighted),
+			DNSConfig: &armtrafficmanager.DNSConfig{
+				RelativeName: ptr.To(fmt.Sprintf(trafficmanagerprofile.DNSRelativeNameFormat, profile.Namespace, profile.Name)),
+				Fqdn:         profile.Status.DNSName,
+				TTL:          ptr.To(trafficmanagerprofile.DefaultDNSTTL),
+			},
+			MonitorConfig: &armtrafficmanager.MonitorConfig{
+				IntervalInSeconds:         monitorConfig.IntervalInSeconds,
+				Path:                      monitorConfig.Path,
+				Port:                      monitorConfig.Port,
+				Protocol:                  ptr.To(armtrafficmanager.MonitorProtocol(*monitorConfig.Protocol)),
+				TimeoutInSeconds:          monitorConfig.TimeoutInSeconds,
+				ToleratedNumberOfFailures: monitorConfig.ToleratedNumberOfFailures,
+			},
+			Endpoints:                   []*armtrafficmanager.Endpoint{},
+			TrafficViewEnrollmentStatus: ptr.To(armtrafficmanager.TrafficViewEnrollmentStatusDisabled),
+		},
+	}
+	for _, e := range endpoints {
+		res.Properties.Endpoints = append(res.Properties.Endpoints, &armtrafficmanager.Endpoint{
+			Name: ptr.To(e.Name),
+			Type: ptr.To("Microsoft.Network/trafficManagerProfiles/azureEndpoints"),
+			Properties: &armtrafficmanager.EndpointProperties{
+				Target:         e.Target,
+				Weight:         e.Weight,
+				EndpointStatus: ptr.To(armtrafficmanager.EndpointStatusEnabled),
+				AlwaysServe:    ptr.To(armtrafficmanager.AlwaysServeDisabled),
+			},
+		})
+	}
+	return res
+}