diff --git a/test/e2e/framework/workload_manager.go b/test/e2e/framework/workload_manager.go
index 96211ac0..156ea732 100644
--- a/test/e2e/framework/workload_manager.go
+++ b/test/e2e/framework/workload_manager.go
@@ -203,7 +203,7 @@ func (wm *WorkloadManager) DeployWorkload(ctx context.Context) error {
 }
 
 // AddServiceDNSLabel adds a DNS label to the service in member cluster.
-func (wm *WorkloadManager) AddServiceDNSLabel(ctx context.Context, cluster *Cluster) error {
+func (wm *WorkloadManager) AddServiceDNSLabel(ctx context.Context, cluster *Cluster, dns string) error {
 	var service corev1.Service
 	if err := cluster.kubeClient.Get(ctx, types.NamespacedName{Namespace: wm.namespace, Name: wm.service.Name}, &service); err != nil {
 		return fmt.Errorf("failed to get service %s in cluster %s: %w", wm.service.Name, cluster.Name(), err)
@@ -211,7 +211,7 @@ func (wm *WorkloadManager) AddServiceDNSLabel(ctx context.Context, cluster *Clus
 	if service.Annotations == nil {
 		service.Annotations = make(map[string]string)
 	}
-	service.Annotations[objectmeta.ServiceAnnotationAzureDNSLabelName] = wm.BuildServiceDNSLabelName(cluster)
+	service.Annotations[objectmeta.ServiceAnnotationAzureDNSLabelName] = dns
 	if err := cluster.kubeClient.Update(ctx, &service); err != nil {
 		return fmt.Errorf("failed to update service %s in cluster %s: %w", service.Name, cluster.Name(), err)
 	}
@@ -220,7 +220,7 @@ func (wm *WorkloadManager) AddServiceDNSLabel(ctx context.Context, cluster *Clus
 
 // BuildServiceDNSLabelName builds the DNS label name for the service.
 func (wm *WorkloadManager) BuildServiceDNSLabelName(cluster *Cluster) string {
-	return fmt.Sprintf("%s-%s-%s", wm.namespace, wm.service.Name, cluster.Name())
+	return fmt.Sprintf("%s-%s-%s-%s", wm.namespace, wm.service.Name, cluster.Name(), uniquename.RandomLowerCaseAlphabeticString(5))
 }
 
 // UpdateServiceType updates the service type in the member cluster.
diff --git a/test/e2e/traffic_manager_test.go b/test/e2e/traffic_manager_test.go
index 8930d4b4..2fce0920 100644
--- a/test/e2e/traffic_manager_test.go
+++ b/test/e2e/traffic_manager_test.go
@@ -100,7 +100,7 @@ var _ = Describe("Test exporting service via Azure traffic manager", Ordered, fu
 
 			By("Validating the Azure traffic manager profile")
 			atmProfile = buildDesiredATMProfile(profile, nil)
-			// Controller does not set the trafficViewEnrollmentStatus.
+			// The Controller does not set the trafficViewEnrollmentStatus.
 			atmProfile.Properties.TrafficViewEnrollmentStatus = ptr.To(armtrafficmanager.TrafficViewEnrollmentStatusEnabled)
 			atmValidator.ValidateProfile(ctx, atmProfileName, atmProfile)
 		})
@@ -109,6 +109,8 @@ var _ = Describe("Test exporting service via Azure traffic manager", Ordered, fu
 	Context("Test invalid trafficManagerBackend (invalid serviceImport)", Ordered, func() {
 		var backend fleetnetv1alpha1.TrafficManagerBackend
 		var name types.NamespacedName
+		var membersDNSLabel []string
+
 		BeforeAll(func() {
 			By("Creating trafficManagerBackend")
 			backend = wm.TrafficManagerBackend()
@@ -146,8 +148,8 @@ var _ = Describe("Test exporting service via Azure traffic manager", Ordered, fu
 			By("Validating the trafficManagerBackend status")
 			wantEndpoints := []fleetnetv1alpha1.TrafficManagerEndpointStatus{
 				{
-					Weight: ptr.To(int64(100)),
-					Target: ptr.To(fmt.Sprintf(azureDNSFormat, wm.BuildServiceDNSLabelName(memberClusters[0]), clusterLocation)),
+					Weight:  ptr.To(int64(100)),
+					Target:  ptr.To(fmt.Sprintf(azureDNSFormat, membersDNSLabel[0], clusterLocation)),
 					From: &fleetnetv1alpha1.FromCluster{
 						ClusterStatus: fleetnetv1alpha1.ClusterStatus{Cluster: memberClusters[0].Name()},
 					},
@@ -161,22 +163,23 @@ var _ = Describe("Test exporting service via Azure traffic manager", Ordered, fu
 			atmValidator.ValidateProfile(ctx, atmProfileName, atmProfile)
 
 			By("Adding DNS label to the service on member-2")
+			membersDNSLabel[1] = wm.BuildServiceDNSLabelName(memberClusters[1])
 			Eventually(func() error {
-				return wm.AddServiceDNSLabel(ctx, memberClusters[1])
+				return wm.AddServiceDNSLabel(ctx, memberClusters[1], membersDNSLabel[1])
 			}, framework.PollTimeout, framework.PollInterval).Should(Succeed(), "Failed to add DNS label to the service")
 
 			By("Validating the trafficManagerBackend status")
 			wantEndpoints = []fleetnetv1alpha1.TrafficManagerEndpointStatus{
 				{
-					Weight: ptr.To(int64(50)),
-					Target: ptr.To(fmt.Sprintf(azureDNSFormat, wm.BuildServiceDNSLabelName(memberClusters[0]), clusterLocation)),
+					Weight:  ptr.To(int64(50)),
+					Target:  ptr.To(fmt.Sprintf(azureDNSFormat, membersDNSLabel[0], clusterLocation)),
 					From: &fleetnetv1alpha1.FromCluster{
 						ClusterStatus: fleetnetv1alpha1.ClusterStatus{Cluster: memberClusters[0].Name()},
 					},
 				},
 				{
-					Weight: ptr.To(int64(50)),
-					Target: ptr.To(fmt.Sprintf(azureDNSFormat, wm.BuildServiceDNSLabelName(memberClusters[1]), clusterLocation)),
+					Weight:  ptr.To(int64(50)),
+					Target:  ptr.To(fmt.Sprintf(azureDNSFormat, membersDNSLabel[1], clusterLocation)),
 					From: &fleetnetv1alpha1.FromCluster{
 						ClusterStatus: fleetnetv1alpha1.ClusterStatus{Cluster: memberClusters[1].Name()},
 					},
@@ -194,12 +197,14 @@ var _ = Describe("Test exporting service via Azure traffic manager", Ordered, fu
 	Context("Test invalid trafficManagerBackend (invalid profile)", Ordered, func() {
 		var backend fleetnetv1alpha1.TrafficManagerBackend
 		var backendName types.NamespacedName
+		var memberDNSLabels []string
 		BeforeEach(func() {
 			// create valid serviceImport
 			By("Adding DNS label to the service on member-1 & member-2")
 			for i := range memberClusters {
+				memberDNSLabels[i] = wm.BuildServiceDNSLabelName(memberClusters[i])
 				Eventually(func() error {
-					return wm.AddServiceDNSLabel(ctx, memberClusters[i])
+					return wm.AddServiceDNSLabel(ctx, memberClusters[i], memberDNSLabels[i])
 				}, framework.PollTimeout, framework.PollInterval).Should(Succeed(), "Failed to add DNS label to the service")
 			}
 
@@ -238,12 +243,12 @@ var _ = Describe("Test exporting service via Azure traffic manager", Ordered, fu
 			wantEndpoints := []fleetnetv1alpha1.TrafficManagerEndpointStatus{
 				{
 					Weight:  ptr.To(int64(50)),
-					Target:  ptr.To(fmt.Sprintf(azureDNSFormat, wm.BuildServiceDNSLabelName(memberClusters[0]), clusterLocation)),
+					Target:  ptr.To(fmt.Sprintf(azureDNSFormat, memberDNSLabels[0], clusterLocation)),
 					Cluster: &fleetnetv1alpha1.ClusterStatus{Cluster: memberClusters[0].Name()},
 				},
 				{
 					Weight:  ptr.To(int64(50)),
-					Target:  ptr.To(fmt.Sprintf(azureDNSFormat, wm.BuildServiceDNSLabelName(memberClusters[1]), clusterLocation)),
+					Target:  ptr.To(fmt.Sprintf(azureDNSFormat, memberDNSLabels[1], clusterLocation)),
 					Cluster: &fleetnetv1alpha1.ClusterStatus{Cluster: memberClusters[1].Name()},
 				},
 			}
@@ -280,14 +285,16 @@ var _ = Describe("Test exporting service via Azure traffic manager", Ordered, fu
 	Context("Test valid trafficManagerBackend", Ordered, func() {
 		var backend fleetnetv1alpha1.TrafficManagerBackend
 		var backendName types.NamespacedName
+		var memberDNSLabels []string
 
 		var extraTrafficManagerEndpoint *armtrafficmanager.Endpoint
 		BeforeEach(func() {
 			// create valid serviceImport
 			By("Adding DNS label to the service on member-1 & member-2")
 			for i := range memberClusters {
+				memberDNSLabels[i] = wm.BuildServiceDNSLabelName(memberClusters[i])
 				Eventually(func() error {
-					return wm.AddServiceDNSLabel(ctx, memberClusters[i])
+					return wm.AddServiceDNSLabel(ctx, memberClusters[i], memberDNSLabels[i])
 				}, framework.PollTimeout, framework.PollInterval).Should(Succeed(), "Failed to add DNS label to the service")
 			}
 
@@ -303,12 +310,12 @@ var _ = Describe("Test exporting service via Azure traffic manager", Ordered, fu
 			wantEndpoints := []fleetnetv1alpha1.TrafficManagerEndpointStatus{
 				{
 					Weight:  ptr.To(int64(50)),
-					Target:  ptr.To(fmt.Sprintf(azureDNSFormat, wm.BuildServiceDNSLabelName(memberClusters[0]), clusterLocation)),
+					Target:  ptr.To(fmt.Sprintf(azureDNSFormat, memberDNSLabels[0], clusterLocation)),
 					Cluster: &fleetnetv1alpha1.ClusterStatus{Cluster: memberClusters[0].Name()},
 				},
 				{
 					Weight:  ptr.To(int64(50)),
-					Target:  ptr.To(fmt.Sprintf(azureDNSFormat, wm.BuildServiceDNSLabelName(memberClusters[1]), clusterLocation)),
+					Target:  ptr.To(fmt.Sprintf(azureDNSFormat, memberDNSLabels[1], clusterLocation)),
 					Cluster: &fleetnetv1alpha1.ClusterStatus{Cluster: memberClusters[1].Name()},
 				},
 			}
@@ -383,12 +390,12 @@ var _ = Describe("Test exporting service via Azure traffic manager", Ordered, fu
 			wantEndpoints := []fleetnetv1alpha1.TrafficManagerEndpointStatus{
 				{
 					Weight:  ptr.To(int64(5)),
-					Target:  ptr.To(fmt.Sprintf(azureDNSFormat, wm.BuildServiceDNSLabelName(memberClusters[0]), clusterLocation)),
+					Target:  ptr.To(fmt.Sprintf(azureDNSFormat, memberDNSLabels[0], clusterLocation)),
 					Cluster: &fleetnetv1alpha1.ClusterStatus{Cluster: memberClusters[0].Name()},
 				},
 				{
 					Weight:  ptr.To(int64(5)),
-					Target:  ptr.To(fmt.Sprintf(azureDNSFormat, wm.BuildServiceDNSLabelName(memberClusters[1]), clusterLocation)),
+					Target:  ptr.To(fmt.Sprintf(azureDNSFormat, memberDNSLabels[1], clusterLocation)),
 					Cluster: &fleetnetv1alpha1.ClusterStatus{Cluster: memberClusters[1].Name()},
 				},
 			}
@@ -432,12 +439,12 @@ var _ = Describe("Test exporting service via Azure traffic manager", Ordered, fu
 			wantEndpoints := []fleetnetv1alpha1.TrafficManagerEndpointStatus{
 				{
 					Weight:  ptr.To(int64(5)),
-					Target:  ptr.To(fmt.Sprintf(azureDNSFormat, wm.BuildServiceDNSLabelName(memberClusters[0]), clusterLocation)),
+					Target:  ptr.To(fmt.Sprintf(azureDNSFormat, memberDNSLabels[0], clusterLocation)),
 					Cluster: &fleetnetv1alpha1.ClusterStatus{Cluster: memberClusters[0].Name()},
 				},
 				{
 					Weight:  ptr.To(int64(5)),
-					Target:  ptr.To(fmt.Sprintf(azureDNSFormat, wm.BuildServiceDNSLabelName(memberClusters[1]), clusterLocation)),
+					Target:  ptr.To(fmt.Sprintf(azureDNSFormat, memberDNSLabels[1], clusterLocation)),
 					Cluster: &fleetnetv1alpha1.ClusterStatus{Cluster: memberClusters[1].Name()},
 				},
 			}
@@ -469,12 +476,12 @@ var _ = Describe("Test exporting service via Azure traffic manager", Ordered, fu
 			wantEndpoints := []fleetnetv1alpha1.TrafficManagerEndpointStatus{
 				{
 					Weight:  ptr.To(int64(5)),
-					Target:  ptr.To(fmt.Sprintf(azureDNSFormat, wm.BuildServiceDNSLabelName(memberClusters[0]), clusterLocation)),
+					Target:  ptr.To(fmt.Sprintf(azureDNSFormat, memberDNSLabels[0], clusterLocation)),
 					Cluster: &fleetnetv1alpha1.ClusterStatus{Cluster: memberClusters[0].Name()},
 				},
 				{
 					Weight:  ptr.To(int64(5)),
-					Target:  ptr.To(fmt.Sprintf(azureDNSFormat, wm.BuildServiceDNSLabelName(memberClusters[1]), clusterLocation)),
+					Target:  ptr.To(fmt.Sprintf(azureDNSFormat, memberDNSLabels[1], clusterLocation)),
 					Cluster: &fleetnetv1alpha1.ClusterStatus{Cluster: memberClusters[1].Name()},
 				},
 			}
@@ -497,7 +504,7 @@ var _ = Describe("Test exporting service via Azure traffic manager", Ordered, fu
 			wantEndpoints := []fleetnetv1alpha1.TrafficManagerEndpointStatus{
 				{
 					Weight:  ptr.To(int64(100)),
-					Target:  ptr.To(fmt.Sprintf(azureDNSFormat, wm.BuildServiceDNSLabelName(memberClusters[1]), clusterLocation)),
+					Target:  ptr.To(fmt.Sprintf(azureDNSFormat, memberDNSLabels[1], clusterLocation)),
 					Cluster: &fleetnetv1alpha1.ClusterStatus{Cluster: memberClusters[1].Name()},
 				},
 			}