diff --git a/checkov/arm/checks/resource/KeyBackedByHSM.py b/checkov/arm/checks/resource/KeyBackedByHSM.py
new file mode 100644
index 00000000000..5fe2a02290f
--- /dev/null
+++ b/checkov/arm/checks/resource/KeyBackedByHSM.py
@@ -0,0 +1,23 @@
+from checkov.common.models.enums import CheckCategories
+from checkov.arm.base_resource_value_check import BaseResourceValueCheck
+
+
+class KeyBackedByHSM(BaseResourceValueCheck):
+    def __init__(self):
+        name = "Ensure that key vault key is backed by HSM"
+        id = "CKV_AZURE_112"
+        supported_resources = ['Microsoft.KeyVault/vaults/keys']
+        categories = [CheckCategories.BACKUP_AND_RECOVERY]
+        super().__init__(name=name, id=id, categories=categories, supported_resources=supported_resources)
+
+    def get_inspected_key(self):
+        return 'properties/kty'
+
+    def get_expected_value(self):
+        return 'RSA-HSM'
+
+    def get_expected_values(self):
+        return [self.get_expected_value(), 'EC-HSM']
+
+
+check = KeyBackedByHSM()
diff --git a/tests/arm/checks/resource/example_KeyBackedByHSM/fail.json b/tests/arm/checks/resource/example_KeyBackedByHSM/fail.json
new file mode 100644
index 00000000000..09e311beb23
--- /dev/null
+++ b/tests/arm/checks/resource/example_KeyBackedByHSM/fail.json
@@ -0,0 +1,123 @@
+{
+  "$schema": "https://schema.management.azure.com/schemas/2019-04-01/deploymentTemplate.json#",
+  "contentVersion": "1.0.0.0",
+  "parameters": {
+    "vaultName": {
+      "type": "string",
+      "metadata": {
+        "description": "The name of the key vault to be created."
+      }
+    },
+    "keyName": {
+      "type": "string",
+      "metadata": {
+        "description": "The name of the key to be created."
+      }
+    },
+    "location": {
+      "type": "string",
+      "defaultValue": "[resourceGroup().location]",
+      "metadata": {
+        "description": "The location of the resources"
+      }
+    },
+    "skuName": {
+      "type": "string",
+      "defaultValue": "standard",
+      "allowedValues": [
+        "standard",
+        "premium"
+      ],
+      "metadata": {
+        "description": "The SKU of the vault to be created."
+      }
+    },
+    "keyType": {
+      "type": "string",
+      "defaultValue": "RSA",
+      "allowedValues": [
+        "EC",
+        "EC-HSM",
+        "RSA",
+        "RSA-HSM"
+      ],
+      "metadata": {
+        "description": "The JsonWebKeyType of the key to be created."
+      }
+    },
+    "keyOps": {
+      "type": "array",
+      "defaultValue": [],
+      "metadata": {
+        "description": "The permitted JSON web key operations of the key to be created."
+      }
+    },
+    "keySize": {
+      "type": "int",
+      "defaultValue": 2048,
+      "metadata": {
+        "description": "The size in bits of the key to be created."
+      }
+    },
+    "curveName": {
+      "type": "string",
+      "defaultValue": "",
+      "allowedValues": [
+        "",
+        "P-256",
+        "P-256K",
+        "P-384",
+        "P-521"
+      ],
+      "metadata": {
+        "description": "The JsonWebKeyCurveName of the key to be created."
+      }
+    }
+  },
+  "resources": [
+    {
+      "type": "Microsoft.KeyVault/vaults",
+      "apiVersion": "2021-11-01-preview",
+      "name": "[parameters('vaultName')]",
+      "location": "[parameters('location')]",
+      "properties": {
+        "accessPolicies": [],
+        "enableRbacAuthorization": true,
+        "enableSoftDelete": true,
+        "softDeleteRetentionInDays": "90",
+        "enabledForDeployment": false,
+        "enabledForDiskEncryption": false,
+        "enabledForTemplateDeployment": false,
+        "tenantId": "[subscription().tenantId]",
+        "sku": {
+          "name": "[parameters('skuName')]",
+          "family": "A"
+        },
+        "networkAcls": {
+          "defaultAction": "Allow",
+          "bypass": "AzureServices"
+        }
+      }
+    },
+    {
+      "type": "Microsoft.KeyVault/vaults/keys",
+      "apiVersion": "2021-11-01-preview",
+      "name": "fail",
+      "properties": {
+        "kty": "RSA",
+        "keyOps": "[parameters('keyOps')]",
+        "keySize": "[parameters('keySize')]",
+        "curveName": "[parameters('curveName')]"
+      },
+      "dependsOn": [
+        "[resourceId('Microsoft.KeyVault/vaults', parameters('vaultName'))]"
+      ]
+    }
+  ],
+  "outputs": {
+    "proxyKey": {
+      "type": "object",
+      "value": "[reference(resourceId('Microsoft.KeyVault/vaults/keys', parameters('vaultName'), parameters('keyName')))]"
+    }
+  }
+}
\ No newline at end of file
diff --git a/tests/arm/checks/resource/example_KeyBackedByHSM/pass.json b/tests/arm/checks/resource/example_KeyBackedByHSM/pass.json
new file mode 100644
index 00000000000..df39e8c64ba
--- /dev/null
+++ b/tests/arm/checks/resource/example_KeyBackedByHSM/pass.json
@@ -0,0 +1,123 @@
+{
+  "$schema": "https://schema.management.azure.com/schemas/2019-04-01/deploymentTemplate.json#",
+  "contentVersion": "1.0.0.0",
+  "parameters": {
+    "vaultName": {
+      "type": "string",
+      "metadata": {
+        "description": "The name of the key vault to be created."
+      }
+    },
+    "keyName": {
+      "type": "string",
+      "metadata": {
+        "description": "The name of the key to be created."
+      }
+    },
+    "location": {
+      "type": "string",
+      "defaultValue": "[resourceGroup().location]",
+      "metadata": {
+        "description": "The location of the resources"
+      }
+    },
+    "skuName": {
+      "type": "string",
+      "defaultValue": "standard",
+      "allowedValues": [
+        "standard",
+        "premium"
+      ],
+      "metadata": {
+        "description": "The SKU of the vault to be created."
+      }
+    },
+    "keyType": {
+      "type": "string",
+      "defaultValue": "RSA",
+      "allowedValues": [
+        "EC",
+        "EC-HSM",
+        "RSA",
+        "RSA-HSM"
+      ],
+      "metadata": {
+        "description": "The JsonWebKeyType of the key to be created."
+      }
+    },
+    "keyOps": {
+      "type": "array",
+      "defaultValue": [],
+      "metadata": {
+        "description": "The permitted JSON web key operations of the key to be created."
+      }
+    },
+    "keySize": {
+      "type": "int",
+      "defaultValue": 2048,
+      "metadata": {
+        "description": "The size in bits of the key to be created."
+      }
+    },
+    "curveName": {
+      "type": "string",
+      "defaultValue": "",
+      "allowedValues": [
+        "",
+        "P-256",
+        "P-256K",
+        "P-384",
+        "P-521"
+      ],
+      "metadata": {
+        "description": "The JsonWebKeyCurveName of the key to be created."
+      }
+    }
+  },
+  "resources": [
+    {
+      "type": "Microsoft.KeyVault/vaults",
+      "apiVersion": "2021-11-01-preview",
+      "name": "[parameters('vaultName')]",
+      "location": "[parameters('location')]",
+      "properties": {
+        "accessPolicies": [],
+        "enableRbacAuthorization": true,
+        "enableSoftDelete": true,
+        "softDeleteRetentionInDays": "90",
+        "enabledForDeployment": false,
+        "enabledForDiskEncryption": false,
+        "enabledForTemplateDeployment": false,
+        "tenantId": "[subscription().tenantId]",
+        "sku": {
+          "name": "[parameters('skuName')]",
+          "family": "A"
+        },
+        "networkAcls": {
+          "defaultAction": "Allow",
+          "bypass": "AzureServices"
+        }
+      }
+    },
+    {
+      "type": "Microsoft.KeyVault/vaults/keys",
+      "apiVersion": "2021-11-01-preview",
+      "name": "pass",
+      "properties": {
+        "kty": "RSA-HSM",
+        "keyOps": "[parameters('keyOps')]",
+        "keySize": "[parameters('keySize')]",
+        "curveName": "[parameters('curveName')]"
+      },
+      "dependsOn": [
+        "[resourceId('Microsoft.KeyVault/vaults', parameters('vaultName'))]"
+      ]
+    }
+  ],
+  "outputs": {
+    "proxyKey": {
+      "type": "object",
+      "value": "[reference(resourceId('Microsoft.KeyVault/vaults/keys', parameters('vaultName'), parameters('keyName')))]"
+    }
+  }
+}
\ No newline at end of file
diff --git a/tests/arm/checks/resource/test_KeyBackedByHSM.py b/tests/arm/checks/resource/test_KeyBackedByHSM.py
new file mode 100644
index 00000000000..e336e5f6d41
--- /dev/null
+++ b/tests/arm/checks/resource/test_KeyBackedByHSM.py
@@ -0,0 +1,40 @@
+import unittest
+from pathlib import Path
+
+from checkov.arm.checks.resource.KeyBackedByHSM import check
+from checkov.arm.runner import Runner
+from checkov.runner_filter import RunnerFilter
+
+
+class TestKeyBackedByHSM(unittest.TestCase):
+    def test_summary(self):
+        # given
+        test_files_dir = Path(__file__).parent / "example_KeyBackedByHSM"
+
+        # when
+        report = Runner().run(root_folder=str(test_files_dir), runner_filter=RunnerFilter(checks=[check.id]))
+
+        # then
+        summary = report.get_summary()
+
+        passing_resources = {
+            "Microsoft.KeyVault/vaults/keys.pass",
+        }
+        failing_resources = {
+            "Microsoft.KeyVault/vaults/keys.fail",
+        }
+
+        passed_check_resources = {c.resource for c in report.passed_checks}
+        failed_check_resources = {c.resource for c in report.failed_checks}
+
+        self.assertEqual(summary["passed"], len(passing_resources))
+        self.assertEqual(summary["failed"], len(failing_resources))
+        self.assertEqual(summary["skipped"], 0)
+        self.assertEqual(summary["parsing_errors"], 0)
+
+        self.assertEqual(passing_resources, passed_check_resources)
+        self.assertEqual(failing_resources, failed_check_resources)
+
+
+if __name__ == "__main__":
+    unittest.main()