diff --git a/llama-index-integrations/llms/llama-index-llms-azure-openai/llama_index/llms/azure_openai/base.py b/llama-index-integrations/llms/llama-index-llms-azure-openai/llama_index/llms/azure_openai/base.py
index 332a13ebad091af5f48a0be5731edf1dbedb75a7..16b4a54cf4657d06eef0da843badcedf70c2cadc 100644
--- a/llama-index-integrations/llms/llama-index-llms-azure-openai/llama_index/llms/azure_openai/base.py
+++ b/llama-index-integrations/llms/llama-index-llms-azure-openai/llama_index/llms/azure_openai/base.py
@@ -146,9 +146,10 @@ class AzureOpenAI(OpenAI):
         if engine is None:
             raise ValueError("You must specify an `engine` parameter.")
 
-        azure_endpoint = get_from_param_or_env(
-            "azure_endpoint", azure_endpoint, "AZURE_OPENAI_ENDPOINT", ""
-        )
+        if api_base is None:
+            azure_endpoint = get_from_param_or_env(
+                "azure_endpoint", azure_endpoint, "AZURE_OPENAI_ENDPOINT", ""
+            )
 
         super().__init__(
             engine=engine,
diff --git a/llama-index-integrations/llms/llama-index-llms-azure-openai/pyproject.toml b/llama-index-integrations/llms/llama-index-llms-azure-openai/pyproject.toml
index 931c554be79b1af25efa7ab85739e6f8f4aaf9a3..8c4443425a26c8f01873a7563a14e98c2eace14b 100644
--- a/llama-index-integrations/llms/llama-index-llms-azure-openai/pyproject.toml
+++ b/llama-index-integrations/llms/llama-index-llms-azure-openai/pyproject.toml
@@ -29,7 +29,7 @@ exclude = ["**/BUILD"]
 license = "MIT"
 name = "llama-index-llms-azure-openai"
 readme = "README.md"
-version = "0.3.1"
+version = "0.3.2"
 
 [tool.poetry.dependencies]
 python = ">=3.9,<4.0"