diff --git a/policyAssignments/dev/pa-d-mdc.json b/policyAssignments/dev/pa-d-mdc.json
index 7eb2710..ae5a574 100644
--- a/policyAssignments/dev/pa-d-mdc.json
+++ b/policyAssignments/dev/pa-d-mdc.json
@@ -85,6 +85,9 @@
       "isAgentlessServerlessPostureEnabled": {
         "value": "true"
       },
+      "isServerlessContainersEnabled":{
+        "value": "true"
+      },
       "isMdeDesignatedSubscriptionEnabled": {
         "value": "false"
       },
diff --git a/policyAssignments/prod/pa-p-mdc.json b/policyAssignments/prod/pa-p-mdc.json
index d884473..f4c7c12 100644
--- a/policyAssignments/prod/pa-p-mdc.json
+++ b/policyAssignments/prod/pa-p-mdc.json
@@ -85,6 +85,9 @@
       "isAgentlessServerlessPostureEnabled": {
         "value": "true"
       },
+      "isServerlessContainersEnabled":{
+        "value": "true"
+      },
       "isMdeDesignatedSubscriptionEnabled": {
         "value": "false"
       },
diff --git a/policyDefinitions/mdc/pol-deploy-defender-cspm.json b/policyDefinitions/mdc/pol-deploy-defender-cspm.json
index 212f0f1..84ab598 100644
--- a/policyDefinitions/mdc/pol-deploy-defender-cspm.json
+++ b/policyDefinitions/mdc/pol-deploy-defender-cspm.json
@@ -114,6 +114,18 @@
           "false"
         ],
         "defaultValue": "true"
+      },
+      "isServerlessContainersEnabled": {
+        "type": "string",
+        "metadata": {
+          "displayName": "Serverless Containers Enabled",
+          "description": "Enable or disable the Serverless Containers add-on feature"
+        },
+        "allowedValues": [
+          "true",
+          "false"
+        ],
+        "defaultValue": "true"
       }
     },
     "policyRule": {
@@ -246,11 +258,23 @@
                             "equals": "[parameters('isAgentlessServerlessPostureEnabled')]"
                           }
                         ]
+                      },
+                                            {
+                        "allOf": [
+                          {
+                            "field": "Microsoft.Security/pricings/extensions[*].name",
+                            "equals": "ServerlessContainers"
+                          },
+                          {
+                            "field": "Microsoft.Security/pricings/extensions[*].isEnabled",
+                            "equals": "[parameters('isServerlessContainersEnabled')]"
+                          }
+                        ]
                       }
                     ]
                   }
                 },
-                "equals": 3
+                "equals": 4
               }
             ]
           },
@@ -279,6 +303,9 @@
                 },
                 "isAgentlessServerlessPostureEnabled": {
                   "value": "[parameters('isAgentlessServerlessPostureEnabled')]"
+                },
+                "isServerlessContainersEnabled": {
+                  "value": "[parameters('isServerlessContainersEnabled')]"
                 }
               },
               "template": {
@@ -305,6 +332,9 @@
                   },
                   "isAgentlessServerlessPostureEnabled": {
                     "type": "string"
+                  },
+                  "isServerlessContainersEnabled": {
+                    "type": "string"
                   }
                 },
                 "variables": {},
@@ -343,6 +373,10 @@
                         {
                           "name": "AgentlessServerlessPosture",
                           "isEnabled": "[parameters('isAgentlessServerlessPostureEnabled')]"
+                        },
+                        {
+                          "name": "ServerlessContainers",
+                          "isEnabled": "[parameters('isServerlessContainersEnabled')]"
                         }
                       ]
                     }
diff --git a/policyInitiatives/polset-aks-data.json b/policyInitiatives/polset-aks-data.json
index d7952ab..e44444b 100644
--- a/policyInitiatives/polset-aks-data.json
+++ b/policyInitiatives/polset-aks-data.json
@@ -18,11 +18,8 @@
           "portalReview": true
         },
         "allowedValues": [
-          "audit",
           "Audit",
-          "deny",
           "Deny",
-          "disabled",
           "Disabled"
         ],
         "defaultValue": "Deny"
@@ -1057,11 +1054,8 @@
           "portalReview": true
         },
         "allowedValues": [
-          "audit",
           "Audit",
-          "deny",
           "Deny",
-          "disabled",
           "Disabled"
         ],
         "defaultValue": "Audit"
@@ -1859,11 +1853,8 @@
           "portalReview": true
         },
         "allowedValues": [
-          "audit",
           "Audit",
-          "deny",
           "Deny",
-          "disabled",
           "Disabled"
         ],
         "defaultValue": "Audit"
@@ -1973,11 +1964,8 @@
           "portalReview": true
         },
         "allowedValues": [
-          "audit",
           "Audit",
-          "deny",
           "Deny",
-          "disabled",
           "Disabled"
         ],
         "defaultValue": "Audit"
@@ -2224,11 +2212,8 @@
           "portalReview": true
         },
         "allowedValues": [
-          "audit",
           "Audit",
-          "deny",
           "Deny",
-          "disabled",
           "Disabled"
         ],
         "defaultValue": "Audit"
@@ -2330,7 +2315,6 @@
         },
         "allowedValues": [
           "Audit",
-          "Deny",
           "Disabled"
         ],
         "defaultValue": "Audit"
diff --git a/policyInitiatives/polset-mdc.json b/policyInitiatives/polset-mdc.json
index ad21e17..d765d8e 100644
--- a/policyInitiatives/polset-mdc.json
+++ b/policyInitiatives/polset-mdc.json
@@ -309,7 +309,18 @@
         ],
         "defaultValue": "true"
       },
-
+      "isServerlessContainersEnabled": {
+        "type": "String",
+        "metadata": {
+          "displayName": "Serverless Containers Enabled",
+          "description": "Enable or disable the Serverless Containers add-on feature"
+        },
+        "allowedValues": [
+          "true",
+          "false"
+        ],
+        "defaultValue": "true"
+      },
       "isMdeDesignatedSubscriptionEnabled": {
         "type": "String",
         "metadata": {
@@ -572,6 +583,9 @@
           },
           "isAgentlessServerlessPostureEnabled": {
             "value": "[parameters('isAgentlessServerlessPostureEnabled')]"
+          },
+          "isServerlessContainersEnabled": {
+            "value": "[parameters('isServerlessContainersEnabled')]"
           }
         },
         "groupNames": [