diff --git a/src/azure-cli/azure/cli/command_modules/vm/commands.py b/src/azure-cli/azure/cli/command_modules/vm/commands.py
index 0b127c6b260..5a494b19fa7 100644
--- a/src/azure-cli/azure/cli/command_modules/vm/commands.py
+++ b/src/azure-cli/azure/cli/command_modules/vm/commands.py
@@ -180,9 +180,10 @@ def load_command_table(self, _):
         g.generic_update_command('update', getter_name='get_vm_to_update_by_aaz', setter_name='update_vm', setter_type=compute_custom, command_type=compute_custom, supports_no_wait=True, validator=process_vm_update_namespace)
         g.wait_command('wait', getter_name='get_instance_view', getter_type=compute_custom)
 
-        from .operations.vm import VMCapture, VMDeallocate
+        from .operations.vm import VMCapture, VMDeallocate, VMDelete
         self.command_table['vm capture'] = VMCapture(loader=self)
         self.command_table['vm deallocate'] = VMDeallocate(loader=self)
+        self.command_table['vm delete'] = VMDelete(loader=self)
 
     with self.command_group('vm availability-set') as g:
         g.custom_command('create', 'create_av_set', table_transformer=deployment_validate_table_format, supports_no_wait=True, exception_handler=handle_template_based_exception)
diff --git a/src/azure-cli/azure/cli/command_modules/vm/operations/vm.py b/src/azure-cli/azure/cli/command_modules/vm/operations/vm.py
index 69d88f8faad..58d2b20705d 100644
--- a/src/azure-cli/azure/cli/command_modules/vm/operations/vm.py
+++ b/src/azure-cli/azure/cli/command_modules/vm/operations/vm.py
@@ -10,7 +10,8 @@
 from azure.cli.core.aaz import AAZStrType
 from ..aaz.latest.vm import (Show as _VMShow, ListSizes as _VMListSizes, Patch as _VMPatch,
                              Update as _VMUpdate, Capture as _VMCapture, Create as _VMCreate,
-                             ListUsage as _VMListUsage, Deallocate as _VMDeallocate)
+                             ListUsage as _VMListUsage, Deallocate as _VMDeallocate,
+                             Delete as _VMDelete)
 from .._vm_utils import IdentityType
 
 logger = get_logger(__name__)
@@ -275,6 +276,17 @@ def _build_arguments_schema(cls, *args, **kwargs):
         return args_schema
 
 
+class VMDelete(_VMDelete):
+    class VirtualMachinesDelete(_VMDelete.VirtualMachinesDelete):
+        def on_204(self, session):
+            from azure.cli.core.azclierror import ResourceNotFoundError
+            raise ResourceNotFoundError(
+                "The VM '{}' under resource group '{}' was not found.".format(
+                    str(self.ctx.args.name), str(self.ctx.args.resource_group)
+                )
+            )
+
+
 def convert_show_result_to_snake_case(result):
     new_result = {}
     if "id" in result:
diff --git a/src/azure-cli/azure/cli/command_modules/vm/tests/latest/test_custom_vm_commands.py b/src/azure-cli/azure/cli/command_modules/vm/tests/latest/test_custom_vm_commands.py
index 0291e22490b..7bdcab22c26 100644
--- a/src/azure-cli/azure/cli/command_modules/vm/tests/latest/test_custom_vm_commands.py
+++ b/src/azure-cli/azure/cli/command_modules/vm/tests/latest/test_custom_vm_commands.py
@@ -214,5 +214,30 @@ def __init__(self, is_linux, version):
         self.type_handler_version = version
 
 
+class TestVMDeleteOn204(unittest.TestCase):
+    """Unit tests for VMDelete.VirtualMachinesDelete.on_204 behavior."""
+
+    def test_on_204_raises_resource_not_found_error(self):
+        from azure.cli.core.azclierror import ResourceNotFoundError
+        from azure.cli.command_modules.vm.operations.vm import VMDelete
+
+        cli_ctx = DummyCli()
+        vm_delete = VMDelete(cli_ctx=cli_ctx)
+
+        # Simulate the ctx that would be set during command execution
+        ctx = mock.MagicMock()
+        ctx.args.name = "nonexistent-vm"
+        ctx.args.resource_group = "nonexistent-rg"
+
+        # Instantiate the inner operation class with the mocked ctx
+        vm_delete_op = VMDelete.VirtualMachinesDelete(ctx=ctx)
+
+        with self.assertRaises(ResourceNotFoundError) as cm:
+            vm_delete_op.on_204(session=mock.MagicMock())
+
+        self.assertIn("nonexistent-vm", str(cm.exception))
+        self.assertIn("nonexistent-rg", str(cm.exception))
+
+
 if __name__ == '__main__':
     unittest.main()