diff --git a/.chloggen/azureencoding-alpha.yaml b/.chloggen/azureencoding-alpha.yaml
new file mode 100644
index 0000000000000..a50e3d59757fe
--- /dev/null
+++ b/.chloggen/azureencoding-alpha.yaml
@@ -0,0 +1,27 @@
+# Use this changelog template to create an entry for release notes.
+
+# One of 'breaking', 'deprecation', 'new_component', 'enhancement', 'bug_fix'
+change_type: enhancement
+
+# The name of the component, or a single word describing the area of concern, (e.g. receiver/filelog)
+component: extension/azure_encoding
+
+# A brief description of the change.  Surround your text with quotes ("") if it needs to start with a backtick (`).
+note: Promote the Azure Encoding extension to Alpha stability.
+
+# Mandatory: One or more tracking issues related to the change. You can use the PR number here if no issue exists.
+issues: [46886]
+
+# (Optional) One or more lines of additional information to render under the primary note.
+# These lines will be padded with 2 spaces and then inserted directly into the document.
+# Use pipe (|) for multiline entries.
+subtext:
+
+# If your change doesn't affect end users or the exported elements of any package,
+# you should instead start your pull request title with [chore] or use the "Skip Changelog" label.
+# Optional: The change log or logs in which this entry should be included.
+# e.g. '[user]' or '[user, api]'
+# Include 'user' if the change is relevant to end users.
+# Include 'api' if there is a change to a library API.
+# Default: '[user]'
+change_logs: [user]
diff --git a/extension/encoding/azureencodingextension/README.md b/extension/encoding/azureencodingextension/README.md
index 9402d2f8437ac..2ede7e6b7d994 100644
--- a/extension/encoding/azureencodingextension/README.md
+++ b/extension/encoding/azureencodingextension/README.md
@@ -6,12 +6,13 @@ This extension is designed for unmarshaling logs/traces/metrics encoded in speci
 
 | Status        |           |
 | ------------- |-----------|
-| Stability     | [development]  |
-| Distributions | [] |
+| Stability     | [alpha]  |
+| Distributions | [contrib] |
 | Issues        | [![Open issues](https://img.shields.io/github/issues-search/open-telemetry/opentelemetry-collector-contrib?query=is%3Aissue%20is%3Aopen%20label%3Aextension%2Fazureencoding%20&label=open&color=orange&logo=opentelemetry)](https://github.com/open-telemetry/opentelemetry-collector-contrib/issues?q=is%3Aopen+is%3Aissue+label%3Aextension%2Fazureencoding) [![Closed issues](https://img.shields.io/github/issues-search/open-telemetry/opentelemetry-collector-contrib?query=is%3Aissue%20is%3Aclosed%20label%3Aextension%2Fazureencoding%20&label=closed&color=blue&logo=opentelemetry)](https://github.com/open-telemetry/opentelemetry-collector-contrib/issues?q=is%3Aclosed+is%3Aissue+label%3Aextension%2Fazureencoding) |
 | [Code Owners](https://github.com/open-telemetry/opentelemetry-collector-contrib/blob/main/CONTRIBUTING.md#becoming-a-code-owner)    | [@axw](https://www.github.com/axw), [@constanca-m](https://www.github.com/constanca-m) |
 
-[development]: https://github.com/open-telemetry/opentelemetry-collector/blob/main/docs/component-stability.md#development
+[alpha]: https://github.com/open-telemetry/opentelemetry-collector/blob/main/docs/component-stability.md#alpha
+[contrib]: https://github.com/open-telemetry/opentelemetry-collector-releases/tree/main/distributions/otelcol-contrib
 <!-- end autogenerated section -->
 
 ### Configuration
diff --git a/extension/encoding/azureencodingextension/internal/metadata/generated_status.go b/extension/encoding/azureencodingextension/internal/metadata/generated_status.go
index feb06a695fe23..213931e1e6230 100644
--- a/extension/encoding/azureencodingextension/internal/metadata/generated_status.go
+++ b/extension/encoding/azureencodingextension/internal/metadata/generated_status.go
@@ -12,5 +12,5 @@ var (
 )
 
 const (
-	ExtensionStability = component.StabilityLevelDevelopment
+	ExtensionStability = component.StabilityLevelAlpha
 )
diff --git a/extension/encoding/azureencodingextension/metadata.yaml b/extension/encoding/azureencodingextension/metadata.yaml
index e5b57b6062064..097fab8c7aff2 100644
--- a/extension/encoding/azureencodingextension/metadata.yaml
+++ b/extension/encoding/azureencodingextension/metadata.yaml
@@ -10,6 +10,7 @@ status:
   disable_codecov_badge: true
   class: extension
   stability:
-    development: [extension]
+    alpha: [extension]
   codeowners:
     active: [axw, constanca-m]
+  distributions: [contrib]
diff --git a/reports/distributions/contrib.yaml b/reports/distributions/contrib.yaml
index d444fb78c27c1..aa0de36a86111 100644
--- a/reports/distributions/contrib.yaml
+++ b/reports/distributions/contrib.yaml
@@ -68,6 +68,7 @@ components:
         - awscloudwatchmetricstreams_encoding
         - awsproxy
         - azure_auth
+        - azure_encoding
         - basicauth
         - bearertokenauth
         - cgroup_runtime