diff --git a/testing/test/extensions/public/AzureMLKubernetes.Tests.ps1 b/testing/test/extensions/public/AzureMLKubernetes.Tests.ps1
index 2bc01244a7..eb121b7d56 100644
--- a/testing/test/extensions/public/AzureMLKubernetes.Tests.ps1
+++ b/testing/test/extensions/public/AzureMLKubernetes.Tests.ps1
@@ -10,8 +10,8 @@ Describe 'AzureML Kubernetes Testing' {
         . $PSScriptRoot/../../helper/Helper.ps1
     }
 
-    It 'Creates the extension and checks that it onboards correctly' {
-        $output = az k8s-extension create -c $ENVCONFIG.arcClusterName -g $ENVCONFIG.resourceGroup --cluster-type connectedClusters --extension-type $extensionType --name $extensionName --release-train preview --config enableTraining=true allowInsecureConnections=true
+    It 'Creates the extension and checks that it onboards correctly with training enabled' {
+        $output = az k8s-extension create -c $ENVCONFIG.arcClusterName -g $ENVCONFIG.resourceGroup --cluster-type connectedClusters --extension-type $extensionType --name $extensionName --release-train staging --config enableTraining=true
         $? | Should -BeTrue
 
         $output = az k8s-extension show -c $ENVCONFIG.arcClusterName -g $ENVCONFIG.resourceGroup --cluster-type connectedClusters --name $extensionName
@@ -27,7 +27,7 @@ Describe 'AzureML Kubernetes Testing' {
             if (Get-ExtensionStatus $extensionName -eq $SUCCESS_MESSAGE) {
                 break
             }
-            Start-Sleep -Seconds 10
+            Start-Sleep -Seconds 20
             $n += 1
         } while ($n -le $MAX_RETRY_ATTEMPTS)
         $n | Should -BeLessOrEqual $MAX_RETRY_ATTEMPTS
@@ -64,7 +64,7 @@ Describe 'AzureML Kubernetes Testing' {
                     break
                 }
             }
-            Start-Sleep -Seconds 10
+            Start-Sleep -Seconds 20
             $n += 1
         } while ($n -le $MAX_RETRY_ATTEMPTS)
         $n | Should -BeLessOrEqual $MAX_RETRY_ATTEMPTS
@@ -100,4 +100,40 @@ Describe 'AzureML Kubernetes Testing' {
         $extensionExists = $output | ConvertFrom-Json | Where-Object { $_.extensionType -eq $extensionName }
         $extensionExists | Should -BeNullOrEmpty
     }
+
+    It 'Creates the extension and checks that it onboards correctly with inference enabled' {
+        $output = az k8s-extension create -c $ENVCONFIG.arcClusterName -g $ENVCONFIG.resourceGroup --cluster-type connectedClusters --extension-type $extensionType --name $extensionName --release-train staging --config enableInference=true identity.proxy.remoteEnabled=True identity.proxy.remoteHost=https://master.experiments.azureml-test.net allowInsecureConnections=True clusterPurpose=DevTest
+        $? | Should -BeTrue
+
+        $output = az k8s-extension show -c $ENVCONFIG.arcClusterName -g $ENVCONFIG.resourceGroup --cluster-type connectedClusters --name $extensionName
+        $? | Should -BeTrue
+
+        $isAutoUpgradeMinorVersion = ($output | ConvertFrom-Json).autoUpgradeMinorVersion 
+        $isAutoUpgradeMinorVersion.ToString() -eq "True" | Should -BeTrue
+
+        # Loop and retry until the extension installs
+        $n = 0
+        do 
+        {
+            if (Get-ExtensionStatus $extensionName -eq $SUCCESS_MESSAGE) {
+                break
+            }
+            Start-Sleep -Seconds 20
+            $n += 1
+        } while ($n -le $MAX_RETRY_ATTEMPTS)
+        $n | Should -BeLessOrEqual $MAX_RETRY_ATTEMPTS
+        
+        # check if relay is populated
+        $relayResourceID = Get-ExtensionConfigurationSettings $extensionName $relayResourceIDKey
+        $relayResourceID | Should -Not -BeNullOrEmpty
+    }
+
+    It "Deletes the extension from the cluster with inference enabled" {
+        az k8s-extension delete --cluster-name $ENVCONFIG.arcClusterName -g $ENVCONFIG.resourceGroup --cluster-type connectedClusters --name $extensionName
+        $? | Should -BeTrue
+
+        # Extension should not be found on the cluster
+        az k8s-extension show --cluster-name $ENVCONFIG.arcClusterName -g $ENVCONFIG.resourceGroup --cluster-type connectedClusters --name $extensionName
+        $? | Should -BeFalse
+    }
 }