diff --git a/base/comps/components-full.toml b/base/comps/components-full.toml
index f0a22383e21..4fe1d0cf620 100644
--- a/base/comps/components-full.toml
+++ b/base/comps/components-full.toml
@@ -654,7 +654,6 @@
 [components.fedora-iot-config]
 [components.felix-parent]
 [components.felix-utils]
-[components.fence-agents]
 [components.festival-freebsoft-utils]
 [components.festival]
 [components.ffcall]
diff --git a/base/comps/fence-agents/fence-agents.comp.toml b/base/comps/fence-agents/fence-agents.comp.toml
new file mode 100644
index 00000000000..8bf14d87dcd
--- /dev/null
+++ b/base/comps/fence-agents/fence-agents.comp.toml
@@ -0,0 +1,11 @@
+[components.fence-agents]
+
+# Remove fence-agents-xenapi from the fence-agents-all metapackage.
+# Xen is not applicable to Azure Linux's Hyper-V/KVM environment.
+# Clearing the package name leaves " \\" — a blank continuation that adds
+# only harmless whitespace to the Requires list.
+[[components.fence-agents.overlays]]
+description = "Remove fence-agents-xenapi from fence-agents-all Requires - Xen not needed for Azure Linux"
+type = "spec-search-replace"
+regex = 'fence-agents-xenapi'
+replacement = ''