diff --git a/src/aks-preview/azext_aks_preview/_validators.py b/src/aks-preview/azext_aks_preview/_validators.py
index 965069f855c..6006a8f3053 100644
--- a/src/aks-preview/azext_aks_preview/_validators.py
+++ b/src/aks-preview/azext_aks_preview/_validators.py
@@ -22,7 +22,6 @@
 
 from ._consts import ADDONS
 
-
 logger = get_logger(__name__)
 
 
@@ -215,7 +214,7 @@ def validate_spot_max_price(namespace):
     if not isnan(namespace.spot_max_price):
         if namespace.priority != "Spot":
             raise CLIError("--spot_max_price can only be set when --priority is Spot")
-        if namespace.spot_max_price * 100000 % 1 != 0:
+        if namespace.spot_max_price > 0 and not isclose(namespace.spot_max_price * 100000 % 1, 0, rel_tol=1e-06):
             raise CLIError("--spot_max_price can only include up to 5 decimal places")
         if namespace.spot_max_price <= 0 and not isclose(namespace.spot_max_price, -1.0, rel_tol=1e-06):
             raise CLIError(
diff --git a/src/aks-preview/azext_aks_preview/tests/latest/test_validators.py b/src/aks-preview/azext_aks_preview/tests/latest/test_validators.py
index 4514aeb7f5a..07532408b83 100644
--- a/src/aks-preview/azext_aks_preview/tests/latest/test_validators.py
+++ b/src/aks-preview/azext_aks_preview/tests/latest/test_validators.py
@@ -154,6 +154,12 @@ def __init__(self, max_surge):
         self.max_surge = max_surge
 
 
+class SpotMaxPriceNamespace:
+    def __init__(self, spot_max_price):
+        self.priority = "Spot"
+        self.spot_max_price = spot_max_price
+
+
 class TestMaxSurge(unittest.TestCase):
     def test_valid_cases(self):
         valid = ["5", "33%", "1", "100%"]
@@ -171,6 +177,30 @@ def test_throws_on_negative(self):
         self.assertTrue('positive' in str(cm.exception), msg=str(cm.exception))
 
 
+class TestSpotMaxPrice(unittest.TestCase):
+    def test_valid_cases(self):
+        valid = [5, 5.12345, -1.0]
+        for v in valid:
+            validators.validate_spot_max_price(SpotMaxPriceNamespace(v))
+
+    def test_throws_if_more_than_5(self):
+        with self.assertRaises(CLIError) as cm:
+            validators.validate_spot_max_price(SpotMaxPriceNamespace(5.123456))
+        self.assertTrue('--spot_max_price can only include up to 5 decimal places' in str(cm.exception), msg=str(cm.exception))
+
+    def test_throws_if_non_valid_negative(self):
+        with self.assertRaises(CLIError) as cm:
+            validators.validate_spot_max_price(SpotMaxPriceNamespace(-2))
+        self.assertTrue('--spot_max_price can only be any decimal value greater than zero, or -1 which indicates' in str(cm.exception), msg=str(cm.exception))
+
+    def test_throws_if_input_max_price_for_regular(self):
+        ns = SpotMaxPriceNamespace(2)
+        ns.priority = "Regular"
+        with self.assertRaises(CLIError) as cm:
+            validators.validate_spot_max_price(ns)
+        self.assertTrue('--spot_max_price can only be set when --priority is Spot' in str(cm.exception), msg=str(cm.exception))
+
+
 class ValidateAddonsNamespace:
     def __init__(self, addons):
         self.addons = addons