diff --git a/lib/ansible/modules/cloud/azure/azure_rm_applicationsecuritygroup.py b/lib/ansible/modules/cloud/azure/azure_rm_applicationsecuritygroup.py
new file mode 100644
index 0000000000..63886fde3e
--- /dev/null
+++ b/lib/ansible/modules/cloud/azure/azure_rm_applicationsecuritygroup.py
@@ -0,0 +1,249 @@
+#!/usr/bin/python
+#
+# Copyright (c) 2018 Yunge Zhu, <yungez@microsoft.com>
+#
+# GNU General Public License v3.0+ (see COPYING or https://www.gnu.org/licenses/gpl-3.0.txt)
+
+from __future__ import absolute_import, division, print_function
+__metaclass__ = type
+
+
+ANSIBLE_METADATA = {'metadata_version': '1.1',
+                    'status': ['preview'],
+                    'supported_by': 'community'}
+
+
+DOCUMENTATION = '''
+---
+module: azure_rm_applicationsecuritygroup
+version_added: "2.8"
+short_description: Manage Azure Application Security Group.
+description:
+    - Create, update and delete instance of Azure Application Security Group.
+
+options:
+    resource_group:
+        description:
+            - The name of the resource group.
+        required: True
+    name:
+        description:
+            - The name of the application security group.
+        required: True
+    location:
+        description:
+            - Resource location. If not set, location from the resource group will be used as default.
+    state:
+      description:
+        - Assert the state of the Application Security Group.
+        - Use 'present' to create or update an Application Security Group and 'absent' to delete it.
+      default: present
+      choices:
+        - absent
+        - present
+
+extends_documentation_fragment:
+    - azure
+    - azure_tags
+
+author:
+    - "Yunge Zhu (@yungezz)"
+
+'''
+
+EXAMPLES = '''
+  - name: Create application security group
+    azure_rm_applicationsecuritygroup:
+      resource_group: myRG
+      name: MyAsg
+      location: eastus
+      tags:
+        foo: bar
+'''
+
+RETURN = '''
+id:
+    description:
+        - Resource id of the application security group.
+    returned: always
+    type: str
+    sample: /subscriptions/<subid>/resourceGroups/<resourcegroup>/providers/Microsoft.Network/applicationSecurityGroups/MyAsg
+'''
+
+from ansible.module_utils.azure_rm_common import AzureRMModuleBase
+
+try:
+    from msrestazure.azure_exceptions import CloudError
+    from msrest.polling import LROPoller
+    from msrestazure.azure_operation import AzureOperationPoller
+except ImportError:
+    # This is handled in azure_rm_common
+    pass
+
+
+class Actions:
+    NoAction, CreateOrUpdate, Delete = range(3)
+
+
+class AzureRMApplicationSecurityGroup(AzureRMModuleBase):
+    """Configuration class for an Azure RM Application Security Group resource"""
+
+    def __init__(self):
+        self.module_arg_spec = dict(
+            resource_group=dict(
+                type='str',
+                required=True
+            ),
+            name=dict(
+                type='str',
+                required=True
+            ),
+            location=dict(
+                type='str'
+            ),
+            state=dict(
+                type='str',
+                default='present',
+                choices=['present', 'absent']
+            )
+        )
+
+        self.resource_group = None
+        self.location = None
+        self.name = None
+        self.tags = None
+
+        self.state = None
+
+        self.results = dict(changed=False)
+
+        self.to_do = Actions.NoAction
+
+        super(AzureRMApplicationSecurityGroup, self).__init__(derived_arg_spec=self.module_arg_spec,
+                                                              supports_check_mode=True,
+                                                              supports_tags=True)
+
+    def exec_module(self, **kwargs):
+        """Main module execution method"""
+
+        for key in list(self.module_arg_spec.keys()) + ['tags']:
+            if hasattr(self, key):
+                setattr(self, key, kwargs[key])
+
+        resource_group = self.get_resource_group(self.resource_group)
+
+        if not self.location:
+            self.location = resource_group.location
+
+        old_response = self.get_applicationsecuritygroup()
+
+        if not old_response:
+            self.log("Application Security Group instance doesn't exist")
+            if self.state == 'present':
+                self.to_do = Actions.CreateOrUpdate
+            else:
+                self.log("Old instance didn't exist")
+        else:
+            self.log("Application Security Group instance already exists")
+            if self.state == 'present':
+                if self.check_update(old_response):
+                    self.to_do = Actions.CreateOrUpdate
+
+                update_tags, self.tags = self.update_tags(old_response.get('tags', None))
+                if update_tags:
+                    self.to_do = Actions.CreateOrUpdate
+
+            elif self.state == 'absent':
+                self.to_do = Actions.Delete
+
+        if self.to_do == Actions.CreateOrUpdate:
+            self.log("Need to Create / Update the Application Security Group instance")
+            self.results['changed'] = True
+
+            if self.check_mode:
+                return self.results
+
+            response = self.create_update_applicationsecuritygroup()
+            self.results['id'] = response['id']
+
+        elif self.to_do == Actions.Delete:
+            self.log("Delete Application Security Group instance")
+            self.results['changed'] = True
+
+            if self.check_mode:
+                return self.results
+
+            self.delete_applicationsecuritygroup()
+
+        return self.results
+
+    def check_update(self, existing_asg):
+        if self.location and self.location.lower() != existing_asg['location'].lower():
+            self.module.warn("location cannot be updated. Existing {0}, input {1}".format(existing_asg['location'], self.location))
+        return False
+
+    def create_update_applicationsecuritygroup(self):
+        '''
+        Create or update Application Security Group.
+
+        :return: deserialized Application Security Group instance state dictionary
+        '''
+        self.log("Creating / Updating the Application Security Group instance {0}".format(self.name))
+
+        param = dict(name=self.name,
+                     tags=self.tags,
+                     location=self.location)
+        try:
+            response = self.network_client.application_security_groups.create_or_update(resource_group_name=self.resource_group,
+                                                                                        application_security_group_name=self.name,
+                                                                                        parameters=param)
+            if isinstance(response, LROPoller) or isinstance(response, AzureOperationPoller):
+                response = self.get_poller_result(response)
+
+        except CloudError as exc:
+            self.log('Error creating/updating Application Security Group instance.')
+            self.fail("Error creating/updating Application Security Group instance: {0}".format(str(exc)))
+        return response.as_dict()
+
+    def delete_applicationsecuritygroup(self):
+        '''
+        Deletes specified Application Security Group instance.
+
+        :return: True
+        '''
+        self.log("Deleting the Application Security Group instance {0}".format(self.name))
+        try:
+            response = self.network_client.application_security_groups.delete(resource_group_name=self.resource_group,
+                                                                              application_security_group_name=self.name)
+        except CloudError as e:
+            self.log('Error deleting the Application Security Group instance.')
+            self.fail("Error deleting the Application Security Group instance: {0}".format(str(e)))
+
+        return True
+
+    def get_applicationsecuritygroup(self):
+        '''
+        Gets the properties of the specified Application Security Group.
+
+        :return: deserialized Application Security Group instance state dictionary
+        '''
+        self.log("Checking if the Application Security Group instance {0} is present".format(self.name))
+        found = False
+        try:
+            response = self.network_client.application_security_groups.get(resource_group_name=self.resource_group,
+                                                                           application_security_group_name=self.name)
+            self.log("Response : {0}".format(response))
+            self.log("Application Security Group instance : {0} found".format(response.name))
+            return response.as_dict()
+        except CloudError as e:
+            self.log('Did not find the Application Security Group instance.')
+        return False
+
+
+def main():
+    """Main execution"""
+    AzureRMApplicationSecurityGroup()
+
+
+if __name__ == '__main__':
+    main()
diff --git a/test/integration/targets/azure_rm_applicationsecuritygroup/aliases b/test/integration/targets/azure_rm_applicationsecuritygroup/aliases
new file mode 100644
index 0000000000..1f8f08b099
--- /dev/null
+++ b/test/integration/targets/azure_rm_applicationsecuritygroup/aliases
@@ -0,0 +1,3 @@
+cloud/azure
+shippable/azure/group4
+destructive
\ No newline at end of file
diff --git a/test/integration/targets/azure_rm_applicationsecuritygroup/meta/main.yml b/test/integration/targets/azure_rm_applicationsecuritygroup/meta/main.yml
new file mode 100644
index 0000000000..95e1952f98
--- /dev/null
+++ b/test/integration/targets/azure_rm_applicationsecuritygroup/meta/main.yml
@@ -0,0 +1,2 @@
+dependencies:
+  - setup_azure
diff --git a/test/integration/targets/azure_rm_applicationsecuritygroup/tasks/main.yml b/test/integration/targets/azure_rm_applicationsecuritygroup/tasks/main.yml
new file mode 100644
index 0000000000..0a619a5e74
--- /dev/null
+++ b/test/integration/targets/azure_rm_applicationsecuritygroup/tasks/main.yml
@@ -0,0 +1,85 @@
+- name: Prepare random number
+  set_fact:
+    name: "asg{{ resource_group | hash('md5') | truncate(7, True, '') }}{{ 1000 | random }}"
+  run_once: yes
+
+
+- name: Create application security group(check mode)
+  azure_rm_applicationsecuritygroup:
+      resource_group: "{{ resource_group }}"
+      name: "{{ name }}"
+      tags:
+          testing: testing
+  check_mode: yes
+  register: output
+
+- name: Assert check mode creation
+  assert:
+    that:
+      - output.changed
+
+- name: Create application security group
+  azure_rm_applicationsecuritygroup:
+      resource_group: "{{ resource_group }}"
+      name: "{{ name }}"
+      tags:
+          testing: testing
+  register: output
+
+- name: Assert the application security group is well created
+  assert:
+    that:
+      - output.changed
+      - output.id != ''
+
+- name: Create application security group (idempotent)
+  azure_rm_applicationsecuritygroup:
+      resource_group: "{{ resource_group }}"
+      name: "{{ name }}"
+      tags:
+          testing: testing
+  register: output
+
+- name: Assert idempotent
+  assert:
+    that:
+      - not output.changed
+
+- name: Update application security group
+  azure_rm_applicationsecuritygroup:
+      resource_group: "{{ resource_group }}"
+      name: "{{ name }}"
+      tags:
+          testing: testing
+          foo: bar
+  register: output
+
+- name: Assert Update
+  assert:
+    that:
+      - output.changed
+
+- name: Delete the application security group (check mode)
+  azure_rm_applicationsecuritygroup:
+      resource_group: "{{ resource_group }}"
+      name: "{{ name }}"
+      state: absent
+  check_mode: yes
+  register: output
+
+- name: Assert delete check mode
+  assert:
+      that:
+        - output.changed
+
+- name: Delete the application security group
+  azure_rm_applicationsecuritygroup:
+      resource_group: "{{ resource_group }}"
+      name: "{{ name }}"
+      state: absent
+  register: output
+
+- name: Assert the deletion
+  assert:
+      that:
+        - output.changed