diff --git a/src/lib/azure/services/api-management/main.ts b/src/lib/azure/services/api-management/main.ts
index 52a03f0a..370366d8 100644
--- a/src/lib/azure/services/api-management/main.ts
+++ b/src/lib/azure/services/api-management/main.ts
@@ -272,30 +272,47 @@ export class AzureApiManagementManager {
       )
       createAzureTfOutput(`${id}-${operation.displayName}-${operation.method}-apimOperationId`, scope, apimOperation.id)
 
-      if (props.policyXmlContent) {
-        const apimOperationPolicy = new ApiManagementApiOperationPolicy(
-          scope,
-          `${id}-apim-api-operation-policy-${operation.displayName}-${operation.method}`,
-          {
-            apiManagementName: apiManagementApi.apiManagementName,
-            resourceGroupName: apiManagementApi.resourceGroupName,
-            apiName: apiManagementApi.name,
-            operationId: apimOperation.operationId,
-            xmlContent: props.policyXmlContent,
-          }
-        )
-
-        createAzureTfOutput(
-          `${id}-${operation.displayName}-${operation.method}-apimOperationPolicyFriendlyUniqueId`,
-          scope,
-          apimOperationPolicy.friendlyUniqueId
-        )
-        createAzureTfOutput(
-          `${id}-${operation.displayName}-${operation.method}-apimOperationPolicyId`,
-          scope,
-          apimOperationPolicy.id
-        )
-      }
+      const policyXmlContent = `<policies>
+        <inbound>
+          <base />
+          ${operation.cacheInboundPolicy ?? ''}
+          ${props.commonInboundPolicyXml ?? ''}
+        </inbound>
+        <backend>
+          <base />
+        </backend>
+        <outbound>
+          <base />
+          ${operation.cacheOutboundPolicy ?? ''}
+          ${props.commonOutboundPolicyXml ?? ''}
+        </outbound>
+        <on-error>
+            <base />
+        </on-error>
+      </policies>`
+
+      const apimOperationPolicy = new ApiManagementApiOperationPolicy(
+        scope,
+        `${id}-apim-api-operation-policy-${operation.displayName}-${operation.method}`,
+        {
+          apiManagementName: apiManagementApi.apiManagementName,
+          resourceGroupName: apiManagementApi.resourceGroupName,
+          apiName: apiManagementApi.name,
+          operationId: apimOperation.operationId,
+          xmlContent: policyXmlContent,
+        }
+      )
+
+      createAzureTfOutput(
+        `${id}-${operation.displayName}-${operation.method}-apimOperationPolicyFriendlyUniqueId`,
+        scope,
+        apimOperationPolicy.friendlyUniqueId
+      )
+      createAzureTfOutput(
+        `${id}-${operation.displayName}-${operation.method}-apimOperationPolicyId`,
+        scope,
+        apimOperationPolicy.id
+      )
     })
 
     return apiManagementApi
diff --git a/src/lib/azure/services/api-management/types.ts b/src/lib/azure/services/api-management/types.ts
index 15084e33..c19305f8 100644
--- a/src/lib/azure/services/api-management/types.ts
+++ b/src/lib/azure/services/api-management/types.ts
@@ -3,7 +3,6 @@ import { ApiManagementBackendConfig } from '@cdktf/provider-azurerm/lib/api-mana
 import { ApiManagementCustomDomainConfig } from '@cdktf/provider-azurerm/lib/api-management-custom-domain'
 import { ApiManagementApiConfig } from '@cdktf/provider-azurerm/lib/api-management-api'
 import { ApiManagementApiOperationConfig } from '@cdktf/provider-azurerm/lib/api-management-api-operation'
-import { ApiManagementApiOperationPolicyConfig } from '@cdktf/provider-azurerm/lib/api-management-api-operation-policy'
 
 export interface ApiManagementProps extends ApiManagementConfig {}
 
@@ -14,10 +13,16 @@ export interface ApiManagementBackendProps extends ApiManagementBackendConfig {
 export interface ApiManagementCustomDomainProps extends ApiManagementCustomDomainConfig {}
 
 export interface ApiManagementApiProps extends ApiManagementApiConfig {
-  operations: ApiManagementApiOperationConfig[]
-  policyXmlContent?: ApiManagementApiOperationPolicyConfig['xmlContent']
+  operations: ApiManagementApiOperationProps[]
+  commonInboundPolicyXml: string
+  commonOutboundPolicyXml: string
 }
 
 export interface ApiManagementV2Props extends ApiManagementConfig {
   body: any
 }
+
+export interface ApiManagementApiOperationProps extends ApiManagementApiOperationConfig {
+  cacheInboundPolicy: string
+  cacheOutboundPolicy: string
+}
diff --git a/src/test/azure/services/api-management-manager.test.ts b/src/test/azure/services/api-management-manager.test.ts
index 5c88b57d..05efda82 100644
--- a/src/test/azure/services/api-management-manager.test.ts
+++ b/src/test/azure/services/api-management-manager.test.ts
@@ -89,27 +89,11 @@ class TestCommonConstruct extends CommonAzureConstruct {
       }
     )
 
-    const policyXmlContent = `<policies>
-          <inbound>
-              <base />
-              <set-backend-service id="apim-generated-policy" backend-id="${this.apiManagementBackend.name}" />
-          </inbound>
-          <backend>
-              <base />
-          </backend>
-          <outbound>
-              <base />
-          </outbound>
-          <on-error>
-              <base />
-          </on-error>
-        </policies>`
-
     this.apiManagementManager.createApiManagementApi(`test-api-management-${this.props.stage}`, this, {
       ...this.props.testApiManagementApi,
       apiManagementName: this.apiManagement.name,
       resourceGroupName: this.apiManagement.resourceGroupName,
-      policyXmlContent,
+      commonInboundPolicyXml: `<set-backend-service id="apim-generated-policy" backend-id="${this.apiManagementBackend.name}" />`,
     })
 
     this.apiManagementManager.createApiManagementCustomDomain(`test-api-management-${this.props.stage}`, this, {
@@ -269,7 +253,7 @@ describe('TestAzureApiManagementConstruct', () => {
         '${azurerm_api_management_api_operation.test-api-management-dev-apim-api-operation-test-get.operation_id}',
       resource_group_name: '${azurerm_api_management_api.test-api-management-dev-am-api.resource_group_name}',
       xml_content:
-        '<policies>\n          <inbound>\n              <base />\n              <set-backend-service id="apim-generated-policy" backend-id="${azurerm_api_management_backend.test-api-management-dev-am-be.name}" />\n          </inbound>\n          <backend>\n              <base />\n          </backend>\n          <outbound>\n              <base />\n          </outbound>\n          <on-error>\n              <base />\n          </on-error>\n        </policies>',
+        '<policies>\n        <inbound>\n          <base />\n          \n          <set-backend-service id="apim-generated-policy" backend-id="${azurerm_api_management_backend.test-api-management-dev-am-be.name}" />\n        </inbound>\n        <backend>\n          <base />\n        </backend>\n        <outbound>\n          <base />\n          \n          \n        </outbound>\n        <on-error>\n            <base />\n        </on-error>\n      </policies>',
     })
   })
 })