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articles/virtual-network/how-to-configure-subnet-peering.md

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ms.author: amitmishra
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ms.service: azure-virtual-network
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ms.topic: how-to
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ms.date: 12/03/2024
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ms.date: 12/09/2025
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#customer intent: As a network administrator, I want to configure subnet peering between two virtual networks in azure
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# How to configure subnet peering
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Subnet peering refers to a method of connecting two virtual networks by linking the subnet address spaces rather than the entire virtual network address spaces. It lets users specify which subnets are supposed to participate in the peering across the local and remote virtual networks.
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Subnet peering connects two virtual networks by linking specific subnets instead of entire virtual network address spaces. This approach gives you granular control over which subnets participate in the peering relationship between local and remote virtual networks.
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Subnet peering is an added flexibility built on top of virtual network peering. Users get an option to choose specific subnets that need to be peered across virtual networks. Users can specify or enter the list of subnets across the virtual networks that they want to peer. In contrast, in regular virtual network peering, entire address space/subnets across the virtual networks get peered.
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Subnet peering adds flexibility to virtual network peering. You can choose specific subnets to peer across virtual networks. You specify or enter the list of subnets across the virtual networks that you want to peer. In contrast, regular virtual network peering connects entire address spaces and subnets across the virtual networks.
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The following limitations apply in regards to using subnet peering:
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The following limitations apply when using subnet peering:
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- Subscription allowlisting: To use this feature, you must have the subscription on which you want to configure subnet peering be registered. Fill this [form](https://forms.office.com/r/99J2fSfd9L) to get your subscription registered.
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- Subscription allowlisting: To use this feature, you must register the subscription on which you want to configure subnet peering. Fill this [form](https://forms.office.com/r/99J2fSfd9L) to get your subscription registered.
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- Availability: The feature is available in all regions, however, it can be configured via Terraform, PowerShell, API, CLI, and ARM template only.
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- Availability: The feature is available in all regions. However, you can configure it only through Terraform, PowerShell, API, CLI, and ARM template.
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## Prerequisites
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- An Azure account with an active subscription. [Create an account for free](https://azure.microsoft.com/pricing/purchase-options/azure-account?cid=msft_learn).
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- Register your subscription as per the process mentioned to allowlist the subscription to access the feature.
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- To enable access to this feature, register your subscription through the allowlisting process
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## Configure subnet peering
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- The how-to article requires version 2.31.0 or later of the Azure CLI. If using Azure Cloud Shell, the latest version is already installed.
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- This article requires version 2.31.0 or later of the Azure CLI. If you use Azure Cloud Shell, the latest version is already installed.
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In the existing virtual network peering create process, few new optional parameters are introduced. This is the description/reference of each:
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In the existing virtual network peering creation process, a few new optional parameters are introduced. This section describes each parameter:
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### New optional parameters introduced:
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### New optional parameters
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- **--peer-complete-vnet**
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This parameter would let users exercise an option to select subnet peering. By default the value for this parameter is set to true, which means entire virtual networks are peered (all address spaces/subnets). To use subnet peering, this parameter needs to be set to false.
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Select subnet peering. By default, the value for this parameter is set to true, which means the entire virtual networks are peered (all address spaces and subnets). To use subnet peering, set this parameter to false.
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Accepted values: 0, 1, f, false, n, no, t, true, y, yes
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Default value: True
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- **--local-subnet-names**
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This parameter lets users enter local subnet names they want to peer with the remote subnets when subnet peering is enabled by setting peer-complete-vnet parameter as 0
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Enter local subnet names you want to peer with the remote subnets when subnet peering is enabled by setting the `peer-complete-vnet` parameter to 0.
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- **--remote-subnet-names**
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This parameter would let users enter remote subnet names they want to peer with the local subnets when subnet peering is enabled by setting peer-complete-vnet parameter as 0
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Enter remote subnet names you want to peer with the local subnets when subnet peering is enabled by setting the `peer-complete-vnet` parameter to 0.
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- **--enable-only-ipv6**
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This parameter would let users exercise an option to configure subnet peering over IPv6 address space only (for dual stack subnets). By default, the value for this parameter is set to false. Peering is done over IPv4 addresses by default. If set to true, peering is done over IPv6 in dual stack subnets.
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Configure subnet peering over IPv6 address space only (for dual stack subnets). By default, the value for this parameter is set to false. Peering is done over IPv4 addresses by default. If set to true, peering is done over IPv6 in dual stack subnets.
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Accepted values: 0, 1, f, false, n, no, t, true, y, yes
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```azurecli
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--location eastus2
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```
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1. Use [az network vnet create](/cli/azure/network/vnet#az_network_vnet_create) to create two virtual networks vnet-1 and vnet-2.
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1. Use [az network vnet create](/cli/azure/network/vnet#az_network_vnet_create) to create two virtual networks named vnet-1 and vnet-2.
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```azurecli
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az network vnet create \
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--address-prefix 10.1.2.0/24
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```
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1. After creating the required subnets, let's say we want to connect only subnet-1 from vnet-1 and subnet-3 from vnet-2, instead of peering the entire virtual network. For this, we use the optional parameters described above to achieve this.
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For this, we run the virtual network peering create command with the optional parameters.
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1. After creating the required subnets, you might want to connect only subnet-1 from vnet-1 and subnet-3 from vnet-2, instead of peering the entire virtual network. To achieve this configuration, use the optional parameters described earlier.
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Run the virtual network peering create command with the optional parameters.
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```azurecli
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az network vnet peering create --name vnet-1_to_vnet-2
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--resource-group test-rg
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:::image type="content" source=".\media\how-to-configure-subnet-peering\subnet-peering.png" alt-text="Diagram that shows subnet peering.":::
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1. The participating subnets **must be unique** and **must belong to unique address spaces**.
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- For example, in the virtual network A and virtual network C peering (illustrated in the figure by black arrow headed line) virtual network A can't subnet peer over Subnet 1, Subnet 2 and Subnet 3 with any of the subnets in virtual network C, as these subnets of virtual network A belong to the 10.1.0.0/16 address space which is also present in virtual network C.
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- For example, in the virtual network A and virtual network C peering (illustrated in the figure by black arrow headed line) virtual network A can't subnet peer over Subnet 1, Subnet 2, and Subnet 3 with any of the subnets in virtual network C, as these subnets of virtual network A belong to the 10.1.0.0/16 address space, which is also present in virtual network C.
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- However, virtual network A’s Subnet 4 (10.0.1.0/24) can subnet peer with Subnet 5 in virtual network C (10.6.1.0/24) as these subnets are unique across the virtual networks and they belong to unique address spaces across virtual networks. Subnet 4 belongs to 10.0.0.0/16 address space in virtual network A and Subnet 5 belongs to 10.6.0.0/16 address space in virtual network C.
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1. There can be **only one peering link between any two virtual networks**. If you want to add or remove subnets from the peering link, then the same peering link is required to be updated. **Multiple exclusive peering between set of subnets are not possible**.<br>
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**A given peering link type cannot be changed**. If there's a virtual network peering between virtual network A and virtual network B, and the user wants to change that to subnet peering, the existing virtual network peering link must be deleted, and a new peering must be created with the required parameters for subnet peering and vice versa.
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1. There can be **only one peering link between any two virtual networks**. If you want to add or remove subnets from the peering link, then you need to update the same peering link. **Multiple exclusive peering between set of subnets aren't possible**.<br>
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**You can't change a given peering link type**. If there's a virtual network peering between virtual network A and virtual network B, and you want to change that peering to subnet peering, you must delete the existing virtual network peering link and create a new peering with the required parameters for subnet peering and vice versa.
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1. **Number of subnets that can be part of a peering link should be less than or equal to 400 (200 limit from each local and remote side).**
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- For example, in the virtual network A and virtual network B peering link (illustrated by blue arrow headed line), total number of subnets participating in the peering here's 4 (two from virtual network A and two from virtual network B side). This number should be <=400.
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1. **The number of subnets participating in a single peering link is limited to 200 per side** (200 from the local virtual network and 200 from the remote virtual network). Additionally, **the total number of subnets that can be peered across all peering links for a given virtual network shouldn't exceed 1,000**.
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- For example, in the virtual network A and virtual network B peering link (illustrated by blue arrow headed line), the total number of subnets participating in the peering from VNET A should be <=200 and likewise from the VNET B side should be <= 200.
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- The total number of subnets across all the spokes (VNET B and VNET C) that can be peered with VNET A should be <= 1000. In the figure above it's 3 in total (2 from VNET B side, 1 from VNET C side)
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1. In the present release (feature remains behind subscription flag), **forward route from non-peered subnet to peered subnet exists** - In the current scenario virtual network A and virtual network B peering, even though Subnet 2 from virtual network A side isn't peered, but it will still have route for Subnet 1 and Subnet 2 in virtual network B.
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- In the subnet peering for virtual network A and virtual network B, customer would expect only Subnet 1 and Subnet 3 from virtual network A to have route for Subnet 1 and Subnet 2 in remote virtual network B, however, Subnet 2 and Subnet 4 (from local side virtual network A which isn't peered) also have route for Subnet 1 and Subnet 2 in remote side (virtual network B), meaning the nonpeered subnets can send packet to destination node in the peered subnet, although the packet is dropped and doesn't reach the virtual machine.
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1. In the present release (feature remains behind subscription flag), **forward route from non-peered subnet to peered subnet exists** - In the current scenario virtual network A and virtual network B peering, even though Subnet 2 from virtual network A side isn't peered, it still has route for Subnet 1 and Subnet 2 in virtual network B.
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- In the subnet peering for virtual network A and virtual network B, you would expect only Subnet 1 and Subnet 3 from virtual network A to have route for Subnet 1 and Subnet 2 in remote virtual network B. However, Subnet 2 and Subnet 4 (from local side virtual network A isn't peered) also have route for Subnet 1 and Subnet 2 in remote side (virtual network B), meaning the nonpeered subnets can send packet to destination node in the peered subnet, although the packet is dropped and doesn't reach the virtual machine.
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- It's recommended that users apply NSGs on the participating subnets to allow traffic from only peered subnets/address spaces. This limitation will be removed in the post GA release.
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- We recommend that you apply NSGs on the participating subnets to allow traffic from only the peered subnets and address spaces. This limitation is removed in the post GA release.
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1. Subnet Peering and AVNM
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- Connected Group<br>
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If two virtual networks are connected in 'Connected Group', and if Subnet peering is configured over these two virtual networks, subnet peering takes preference and the connectivity between nonpeered subnets gets dropped.
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If two virtual networks are connected in 'Connected Group', and if you configure Subnet peering over these two virtual networks, subnet peering takes preference and the connectivity between nonpeered subnets gets dropped.
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- AVNM Connectivity Configuration<br>
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AVNM today can't differentiate between virtual network peering and subnet peering. If Subnet peering exists between virtual network A and virtual network B, and later an AVNM user tries to establish a virtual network peering between virtual network A and virtual network B through some AVNM connectivity configuration (Hub and Spoke deployment), AVNM would assume that peering between virtual network A and virtual network B already exists and would ignore the new peering request. We recommend that users exercise caution in such conflicting scenarios while using AVNM and Subnet peering
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AVNM today can't differentiate between virtual network peering and subnet peering. If Subnet peering exists between virtual network A and virtual network B, and later an AVNM user tries to establish a virtual network peering between virtual network A and virtual network B through some AVNM connectivity configuration (Hub and Spoke deployment), AVNM assumes that peering between virtual network A and virtual network B already exists and ignores the new peering request. Exercise caution in such conflicting scenarios while using AVNM and Subnet peering.
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1. For production deployments, ensure you use V5 SKUs (5th generation VM SKUs) or migrate to them to prevent potential outages that might occur with older generation SKUs.
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## Next steps
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Subnet peering helps you have better conservation of IPv4 space, by letting you reuse address spaces across subnets that need not be peered. It also prevents unnecessary exposure of entire virtual network address space through gateways to on-premises environments. With IPv6 only peering, you can further configure peering over IPv6 only for dual-stack subnets or IPv6 only subnets. Explore these capabilities and let us know if you have feedback and suggestions here.
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Subnet peering helps you conserve IPv4 space by letting you reuse address spaces across subnets that don't need to be connected. It also prevents unnecessary exposure of the entire virtual network address space through gateways to on-premises environments. With IPv6-only peering, you can configure peering over IPv6-only for dual-stack subnets or IPv6-only subnets. Explore these capabilities and share your feedback and suggestions.
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To learn more about peering, see [Virtual network peering](./virtual-network-peering-overview.md).

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