diff --git a/pkg/validating-webhooks/hive/v1/clusterdeployment_validating_admission_hook.go b/pkg/validating-webhooks/hive/v1/clusterdeployment_validating_admission_hook.go
index 5c328cd44d..4c308a43a2 100644
--- a/pkg/validating-webhooks/hive/v1/clusterdeployment_validating_admission_hook.go
+++ b/pkg/validating-webhooks/hive/v1/clusterdeployment_validating_admission_hook.go
@@ -318,7 +318,8 @@ func (a *ClusterDeploymentValidatingAdmissionHook) validateCreate(admissionSpec
 		}
 	}
 
-	allErrs = append(allErrs, validateClusterPlatform(specPath.Child("platform"), cd.Spec.Platform)...)
+	allErrs = append(allErrs, validateClusterPlatform(specPath, cd)...)
+
 	allErrs = append(allErrs, validateCanManageDNSForClusterPlatform(specPath, cd.Spec)...)
 
 	if cd.Spec.Platform.AWS != nil {
@@ -470,7 +471,9 @@ func validatefeatureGates(decoder admission.Decoder, admissionSpec *admissionv1b
 	return nil
 }
 
-func validateClusterPlatform(path *field.Path, platform hivev1.Platform) field.ErrorList {
+// validatePlatformConfiguration validates platform-specific fields.
+// Shared by ClusterDeployment and ClusterPool validation.
+func validatePlatformConfiguration(path *field.Path, platform hivev1.Platform) field.ErrorList {
 	allErrs := field.ErrorList{}
 	numberOfPlatforms := 0
 	if aws := platform.AWS; aws != nil {
@@ -495,9 +498,7 @@ func validateClusterPlatform(path *field.Path, platform hivev1.Platform) field.E
 		if azure.Region == "" {
 			allErrs = append(allErrs, field.Required(azurePath.Child("region"), "must specify Azure region"))
 		}
-		if azure.BaseDomainResourceGroupName == "" {
-			allErrs = append(allErrs, field.Required(azurePath.Child("baseDomainResourceGroupName"), "must specify the Azure resource group for the base domain"))
-		}
+		// Note: baseDomainResourceGroupName validation is ClusterDeployment-specific, handled in validateClusterPlatform
 	}
 	if gcp := platform.GCP; gcp != nil {
 		numberOfPlatforms++
@@ -584,6 +585,29 @@ func validateClusterPlatform(path *field.Path, platform hivev1.Platform) field.E
 	return allErrs
 }
 
+// validateClusterPlatform validates platform configuration for ClusterDeployment.
+// Performs common platform validation and adds ClusterDeployment-specific checks
+// (e.g., Azure baseDomainResourceGroupName when manageDNS is enabled).
+func validateClusterPlatform(specPath *field.Path, cd *hivev1.ClusterDeployment) field.ErrorList {
+	platformPath := specPath.Child("platform")
+	allErrs := validatePlatformConfiguration(platformPath, cd.Spec.Platform)
+
+	if cd.Spec.Platform.Azure != nil && cd.Spec.ManageDNS {
+		if cd.Spec.Platform.Azure.BaseDomainResourceGroupName == "" {
+			allErrs = append(allErrs, field.Required(platformPath.Child("azure", "baseDomainResourceGroupName"), "must specify the Azure resource group for the base domain when manageDNS is true"))
+		}
+	}
+
+	return allErrs
+}
+
+// validateClusterPoolPlatform validates platform configuration for ClusterPool.
+// Only performs common platform validation as ClusterPool lacks ClusterDeployment-specific fields.
+func validateClusterPoolPlatform(specPath *field.Path, cp *hivev1.ClusterPool) field.ErrorList {
+	platformPath := specPath.Child("platform")
+	return validatePlatformConfiguration(platformPath, cp.Spec.Platform)
+}
+
 func validateCanManageDNSForClusterPlatform(specPath *field.Path, spec hivev1.ClusterDeploymentSpec) field.ErrorList {
 	allErrs := field.ErrorList{}
 	canManageDNS := false
diff --git a/pkg/validating-webhooks/hive/v1/clusterdeployment_validating_admission_hook_test.go b/pkg/validating-webhooks/hive/v1/clusterdeployment_validating_admission_hook_test.go
index 656e7dcda8..5b14a9b05b 100644
--- a/pkg/validating-webhooks/hive/v1/clusterdeployment_validating_admission_hook_test.go
+++ b/pkg/validating-webhooks/hive/v1/clusterdeployment_validating_admission_hook_test.go
@@ -832,10 +832,22 @@ func TestClusterDeploymentValidate(t *testing.T) {
 			expectedAllowed: false,
 		},
 		{
-			name: "Azure create missing baseDomainResourceGroupName",
+			name: "Azure create missing baseDomainResourceGroupName with manageDNS false",
 			newObject: func() *hivev1.ClusterDeployment {
 				cd := validAzureClusterDeployment()
 				cd.Spec.Platform.Azure.BaseDomainResourceGroupName = ""
+				cd.Spec.ManageDNS = false
+				return cd
+			}(),
+			operation:       admissionv1beta1.Create,
+			expectedAllowed: true,
+		},
+		{
+			name: "Azure create missing baseDomainResourceGroupName with manageDNS true",
+			newObject: func() *hivev1.ClusterDeployment {
+				cd := validAzureClusterDeployment()
+				cd.Spec.Platform.Azure.BaseDomainResourceGroupName = ""
+				cd.Spec.ManageDNS = true
 				return cd
 			}(),
 			operation:       admissionv1beta1.Create,
diff --git a/pkg/validating-webhooks/hive/v1/clusterpool_validating_admission_hook.go b/pkg/validating-webhooks/hive/v1/clusterpool_validating_admission_hook.go
index 94a96c9737..147eef4520 100644
--- a/pkg/validating-webhooks/hive/v1/clusterpool_validating_admission_hook.go
+++ b/pkg/validating-webhooks/hive/v1/clusterpool_validating_admission_hook.go
@@ -177,7 +177,7 @@ func (a *ClusterPoolValidatingAdmissionHook) validateCreate(admissionSpec *admis
 	allErrs := field.ErrorList{}
 	specPath := field.NewPath("spec")
 
-	allErrs = append(allErrs, validateClusterPlatform(specPath, newObject.Spec.Platform)...)
+	allErrs = append(allErrs, validateClusterPoolPlatform(specPath, newObject)...)
 
 	if len(allErrs) > 0 {
 		status := errors.NewInvalid(schemaGVK(admissionSpec.Kind).GroupKind(), admissionSpec.Name, allErrs).Status()
@@ -237,7 +237,7 @@ func (a *ClusterPoolValidatingAdmissionHook) validateUpdate(admissionSpec *admis
 	allErrs := field.ErrorList{}
 	specPath := field.NewPath("spec")
 
-	allErrs = append(allErrs, validateClusterPlatform(specPath, newObject.Spec.Platform)...)
+	allErrs = append(allErrs, validateClusterPoolPlatform(specPath, newObject)...)
 
 	if len(allErrs) > 0 {
 		contextLogger.WithError(allErrs.ToAggregate()).Info("failed validation")
diff --git a/pkg/validating-webhooks/hive/v1/clusterpool_validating_admission_hook_test.go b/pkg/validating-webhooks/hive/v1/clusterpool_validating_admission_hook_test.go
index c2fec6430b..829723e81c 100644
--- a/pkg/validating-webhooks/hive/v1/clusterpool_validating_admission_hook_test.go
+++ b/pkg/validating-webhooks/hive/v1/clusterpool_validating_admission_hook_test.go
@@ -187,7 +187,7 @@ func TestClusterPoolValidate(t *testing.T) {
 				return cd
 			}(),
 			operation:       admissionv1beta1.Create,
-			expectedAllowed: false,
+			expectedAllowed: true,
 		},
 		{
 			name: "create with two cloud platforms",