diff --git a/specification/compute/resource-manager/Microsoft.Compute/stable/2022-03-01/ComputeRP/virtualMachine.json b/specification/compute/resource-manager/Microsoft.Compute/stable/2022-03-01/ComputeRP/virtualMachine.json
index 8f76bff0949f..12dead504ce6 100644
--- a/specification/compute/resource-manager/Microsoft.Compute/stable/2022-03-01/ComputeRP/virtualMachine.json
+++ b/specification/compute/resource-manager/Microsoft.Compute/stable/2022-03-01/ComputeRP/virtualMachine.json
@@ -2007,7 +2007,7 @@
       },
       "allOf": [
         {
-          "$ref": "../common.json#/definitions/Resource"
+          "$ref": "../common.json#/definitions/ResourceWithOptionalLocation"
         }
       ],
       "description": "Describes a Virtual Machine Extension."
diff --git a/specification/compute/resource-manager/Microsoft.Compute/stable/2022-03-01/common.json b/specification/compute/resource-manager/Microsoft.Compute/stable/2022-03-01/common.json
index 8512213d33cf..c7c7bcefadb5 100644
--- a/specification/compute/resource-manager/Microsoft.Compute/stable/2022-03-01/common.json
+++ b/specification/compute/resource-manager/Microsoft.Compute/stable/2022-03-01/common.json
@@ -160,6 +160,39 @@
       },
       "x-ms-azure-resource": true
     },
+    "ResourceWithOptionalLocation": {
+      "type":  "object",
+      "description": "The Resource model definition with location property as optional.",
+      "properties": {
+        "location": {
+          "type": "string",
+          "description": "Resource location"
+        },
+        "id": {
+          "readOnly": true,
+          "type": "string",
+          "description": "Resource Id"
+        },
+        "name": {
+          "readOnly": true,
+          "type": "string",
+          "description": "Resource name"
+        },
+        "type": {
+          "readOnly": true,
+          "type": "string",
+          "description": "Resource type"
+        },
+        "tags": {
+          "type": "object",
+          "additionalProperties": {
+            "type": "string"
+          },
+          "description": "Resource tags"
+        }
+      },
+      "x-ms-azure-resource": true
+    },
     "ExtendedLocationType": {
       "type": "string",
       "description": "The type of extendedLocation.",