diff --git a/lib/ansible/modules/cloud/azure/azure_rm_managed_disk.py b/lib/ansible/modules/cloud/azure/azure_rm_managed_disk.py
index e4cb9d4220..9ce75c01b7 100644
--- a/lib/ansible/modules/cloud/azure/azure_rm_managed_disk.py
+++ b/lib/ansible/modules/cloud/azure/azure_rm_managed_disk.py
@@ -64,13 +64,18 @@ options:
             - source_resource_uri
     os_type:
         description:
-            - "Type of Operating System: C(linux) or C(windows). Used when I(create_option) is either C(copy) or C(import) and the source is an OS disk."
+            - "Type of Operating System: C(linux) or C(windows)."
+            - "Used when I(create_option) is either C(copy) or C(import) and the source is an OS disk."
+            - "If omitted during creation, no value is set."
+            - "If omitted during an update, no change is made."
+            - "Once set, this value cannot be cleared."
         choices:
             - linux
             - windows
     disk_size_gb:
         description:
-            - Size in GB of the managed disk to be created. If I(create_option) is C(copy) then the value must be greater than or equal to the source's size.
+            - "Size in GB of the managed disk to be created."
+            - "If I(create_option) is C(copy) then the value must be greater than or equal to the source's size."
     managed_by:
         description:
             - Name of an existing virtual machine with which the disk is or will be associated, this VM should be in the same resource group.
@@ -96,6 +101,16 @@ EXAMPLES = '''
         resource_group: Testing
         disk_size_gb: 4
 
+    - name: Create managed operating system disk from page blob
+      azure_rm_managed_disk:
+        name: mymanageddisk
+        location: eastus2
+        resource_group: Testing
+        create_option: import
+        source_uri: https://storageaccountname.blob.core.windows.net/containername/blob-name.vhd
+        os_type: windows
+        storage_account_type: Premium_LRS
+
     - name: Mount the managed disk to VM
       azure_rm_managed_disk:
         name: mymanageddisk
@@ -157,7 +172,7 @@ def managed_disk_to_dict(managed_disk):
         create_option=create_data.create_option.value.lower(),
         source_uri=create_data.source_uri or create_data.source_resource_id,
         disk_size_gb=managed_disk.disk_size_gb,
-        os_type=managed_disk.os_type.value if managed_disk.os_type else None,
+        os_type=managed_disk.os_type.value.lower() if managed_disk.os_type else None,
         storage_account_type=managed_disk.sku.name.value if managed_disk.sku else None,
         managed_by=managed_disk.managed_by
     )
@@ -315,6 +330,7 @@ class AzureRMManagedDisk(AzureRMModuleBase):
             self.fail("Error getting virtual machine {0} - {1}".format(name, str(exc)))
 
     def generate_managed_disk_property(self):
+        # TODO: Add support for EncryptionSettings, DiskIOPSReadWrite, DiskMBpsReadWrite, Zones
         disk_params = {}
         creation_data = {}
         disk_params['location'] = self.location
@@ -323,7 +339,6 @@ class AzureRMManagedDisk(AzureRMModuleBase):
             storage_account_type = self.compute_models.DiskSku(name=self.storage_account_type)
             disk_params['sku'] = storage_account_type
         disk_params['disk_size_gb'] = self.disk_size_gb
-        # TODO: Add support for EncryptionSettings
         creation_data['create_option'] = self.compute_models.DiskCreateOption.empty
         if self.create_option == 'import':
             creation_data['create_option'] = self.compute_models.DiskCreateOption.import_enum
@@ -331,6 +346,14 @@ class AzureRMManagedDisk(AzureRMModuleBase):
         elif self.create_option == 'copy':
             creation_data['create_option'] = self.compute_models.DiskCreateOption.copy
             creation_data['source_resource_id'] = self.source_uri
+        if self.os_type:
+            typecon = {
+                'linux': self.compute_models.OperatingSystemTypes.linux,
+                'windows': self.compute_models.OperatingSystemTypes.windows
+            }
+            disk_params['os_type'] = typecon[self.os_type]
+        else:
+            disk_params['os_type'] = None
         disk_params['creation_data'] = creation_data
         return disk_params
 
@@ -352,6 +375,9 @@ class AzureRMManagedDisk(AzureRMModuleBase):
         if new_disk.get('disk_size_gb'):
             if not found_disk['disk_size_gb'] == new_disk['disk_size_gb']:
                 resp = True
+        if new_disk.get('os_type'):
+            if not found_disk['os_type'] == new_disk['os_type']:
+                resp = True
         if new_disk.get('sku'):
             if not found_disk['storage_account_type'] == new_disk['sku'].name:
                 resp = True
diff --git a/lib/ansible/modules/cloud/azure/azure_rm_managed_disk_facts.py b/lib/ansible/modules/cloud/azure/azure_rm_managed_disk_facts.py
index 7439bea908..d3f11dcc76 100644
--- a/lib/ansible/modules/cloud/azure/azure_rm_managed_disk_facts.py
+++ b/lib/ansible/modules/cloud/azure/azure_rm_managed_disk_facts.py
@@ -132,7 +132,7 @@ def managed_disk_to_dict(managed_disk):
         create_option=create_data.create_option.value.lower(),
         source_uri=create_data.source_uri or create_data.source_resource_id,
         disk_size_gb=managed_disk.disk_size_gb,
-        os_type=managed_disk.os_type.value if managed_disk.os_type else None,
+        os_type=managed_disk.os_type.value.lower() if managed_disk.os_type else None,
         storage_account_type=managed_disk.sku.name.value if managed_disk.sku else None,
         managed_by=managed_disk.managed_by
     )
diff --git a/test/integration/targets/azure_rm_managed_disk/tasks/main.yml b/test/integration/targets/azure_rm_managed_disk/tasks/main.yml
index 2acc0cab8e..7f65032783 100644
--- a/test/integration/targets/azure_rm_managed_disk/tasks/main.yml
+++ b/test/integration/targets/azure_rm_managed_disk/tasks/main.yml
@@ -7,9 +7,10 @@
  - name: Clearing (if) previous disks were created
    azure_rm_managed_disk:
        resource_group: "{{ resource_group }}"
-       name: "{{item }}"
+       name: "{{ item }}"
        state: absent
    with_items:
+     - "md{{ rpfx }}os"
      - "md{{ rpfx }}2"
      - "md{{ rpfx }}1"
 
@@ -17,6 +18,7 @@
    azure_rm_managed_disk:
        resource_group: "{{ resource_group }}"
        name: "md{{ rpfx }}1"
+       storage_account_type: "Standard_LRS"
        disk_size_gb: 1
        tags:
            testing: testing
@@ -59,6 +61,45 @@
      that:
        - output.changed
        - output.state.id is defined
+       - output.state.os_type == None
+
+ - name: Change the operating system type of the managed disk to linux
+   azure_rm_managed_disk:
+       resource_group: "{{ resource_group }}"
+       name: "md{{ rpfx }}1"
+       disk_size_gb: 1
+       os_type: linux
+       storage_account_type: "Standard_LRS"
+       tags:
+           testing: testing
+           delete: never
+   register: output
+
+ - assert:
+     that:
+       - output.changed
+       - output.state.os_type == 'linux'
+
+ - name: Create new managed disk with an os_type specified at creation
+   azure_rm_managed_disk:
+       resource_group: "{{ resource_group }}"
+       name: "md{{ rpfx }}os"
+       storage_account_type: "Standard_LRS"
+       disk_size_gb: 1
+       os_type: windows
+   register: win
+
+ - name: Assert status of os_type specified at creation
+   assert:
+     that:
+       - win.changed
+       - win.state.os_type == 'windows'
+
+ - name: Clean up managed disk created with os_type
+   azure_rm_managed_disk:
+       resource_group: "{{ resource_group }}"
+       name: "md{{ rpfx }}os"
+       state: absent
 
  - name: Copy disk to a new managed disk
    azure_rm_managed_disk:
@@ -181,6 +222,7 @@
            - "azure_managed_disk | length == 1"
            - azure_managed_disk[0].storage_account_type == "Premium_LRS"
            - azure_managed_disk[0].disk_size_gb == 2
+           - "azure_managed_disk[0].os_type == 'linux'"
 
  - name: Gather facts
    azure_rm_managed_disk_facts: