diff --git a/src/xpk/commands/cluster.py b/src/xpk/commands/cluster.py
index e2dd9768c..2b4b3b096 100644
--- a/src/xpk/commands/cluster.py
+++ b/src/xpk/commands/cluster.py
@@ -84,6 +84,7 @@
 from ..utils.templates import get_templates_absolute_path
 import shutil
 import os
+from .managed_ml_diagnostics import install_mldiagnostics_prerequisites
 
 CLUSTER_PREHEAT_JINJA_FILE = 'cluster_preheat.yaml.j2'
 
@@ -422,6 +423,13 @@ def cluster_create(args) -> None:
       # pylint: disable=line-too-long
       f' https://console.cloud.google.com/kubernetes/clusters/details/{get_cluster_location(args.project, args.cluster, args.zone)}/{args.cluster}/details?project={args.project}'
   )
+
+  if args.managed_mldiagnostics:
+    return_code = install_mldiagnostics_prerequisites()
+    if return_code != 0:
+      xpk_print('Installation of MLDiagnostics failed.')
+      xpk_exit(return_code)
+
   xpk_exit(0)
 
 
diff --git a/src/xpk/commands/cluster_test.py b/src/xpk/commands/cluster_test.py
index b5d199621..c5f9e2fbe 100644
--- a/src/xpk/commands/cluster_test.py
+++ b/src/xpk/commands/cluster_test.py
@@ -84,6 +84,9 @@ def mocks(mocker) -> _Mocks:
           run_command_with_updates_path=(
               'xpk.commands.cluster.run_command_with_updates'
           ),
+          run_command_for_value_path=(
+              'xpk.commands.cluster.run_command_for_value'
+          ),
       ),
   )
 
@@ -121,6 +124,7 @@ def construct_args(**kwargs: Any) -> Namespace:
       cluster_cpu_machine_type='',
       create_vertex_tensorboard=False,
       enable_autoprovisioning=False,
+      managed_mldiagnostics=False,
   )
   args_dict.update(kwargs)
   return Namespace(**args_dict)
diff --git a/src/xpk/commands/managed_ml_diagnostics.py b/src/xpk/commands/managed_ml_diagnostics.py
new file mode 100644
index 000000000..40f711e45
--- /dev/null
+++ b/src/xpk/commands/managed_ml_diagnostics.py
@@ -0,0 +1,249 @@
+"""
+Copyright 2024 Google LLC
+
+Licensed under the Apache License, Version 2.0 (the "License");
+you may not use this file except in compliance with the License.
+You may obtain a copy of the License at
+
+     https://www.apache.org/licenses/LICENSE-2.0
+
+Unless required by applicable law or agreed to in writing, software
+distributed under the License is distributed on an "AS IS" BASIS,
+WITHOUT WARRANTIES OR CONDITIONS OF ANY KIND, either express or implied.
+See the License for the specific language governing permissions and
+limitations under the License.
+"""
+
+from packaging.version import Version
+from ..core.commands import run_command_for_value, run_command_with_updates
+from ..utils.console import xpk_print
+import os
+import tempfile
+
+_KUEUE_DEPLOYMENT_NAME = 'kueue-controller-manager'
+_KUEUE_NAMESPACE_NAME = 'kueue-system'
+_CERT_WEBHOOK_DEPLOYMENT_NAME = 'cert-manager-webhook'
+_CERT_WEBHOOK_NAMESPACE_NAME = 'cert-manager'
+_WEBHOOK_PACKAGE = 'mldiagnostics-injection-webhook'
+_WEBHOOK_VERSION = Version('v0.5.0')
+_WEBHOOK_FILENAME = f'{_WEBHOOK_PACKAGE}-v{_WEBHOOK_VERSION}.yaml'
+_OPERATOR_PACKAGE = 'mldiagnostics-connection-operator'
+_OPERATOR_VERSION = Version('v0.5.0')
+_OPERATOR_FILENAME = f'{_OPERATOR_PACKAGE}-v{_OPERATOR_VERSION}.yaml'
+_CERT_MANAGER_VERSION = Version('v1.13.0')
+
+
+def _install_cert_manager(version: Version = _CERT_MANAGER_VERSION) -> int:
+  """
+  Apply the cert-manager manifest.
+
+  Returns:
+    0 if successful and 1 otherwise.
+  """
+
+  command = (
+      'kubectl apply -f'
+      ' https://github.com/cert-manager/cert-manager/releases/download/'
+      f'v{version}/cert-manager.yaml'
+  )
+
+  return_code = run_command_with_updates(
+      command, f'Applying cert-manager {version} manifest...'
+  )
+
+  return return_code
+
+
+def _download_mldiagnostics_yaml(package_name: str, version: Version) -> int:
+  """
+  Downloads the mldiagnostics injection webhook YAML from Artifact Registry.
+
+  Returns:
+    0 if successful and 1 otherwise.
+  """
+
+  command = (
+      'gcloud artifacts generic download'
+      ' --repository=mldiagnostics-webhook-and-operator-yaml --location=us'
+      f' --package={package_name} --version=v{version} --destination=/tmp/'
+      ' --project=ai-on-gke'
+  )
+
+  return_code, return_output = run_command_for_value(
+      command,
+      f'Download {package_name} {version}...',
+  )
+
+  if return_code != 0:
+    if 'already exists' in return_output:
+      xpk_print(
+          f'Artifact file for {package_name} {version} already exists locally.'
+          ' Skipping download.'
+      )
+      return 0
+
+  return return_code
+
+
+def _create_mldiagnostics_namespace() -> int:
+  """
+  Creates the 'gke-mldiagnostics' namespace.
+
+  Returns:
+    0 if successful and 1 otherwise.
+  """
+
+  command = 'kubectl create namespace gke-mldiagnostics'
+
+  return_code, return_output = run_command_for_value(
+      command, 'Create gke-mldiagnostics namespace...'
+  )
+
+  if return_code != 0:
+    if 'already exists' in return_output:
+      xpk_print('Namespace already exists. Skipping creation.')
+      return 0
+
+  return return_code
+
+
+def _install_mldiagnostics_yaml(artifact_filename: str) -> int:
+  """
+  Applies the mldiagnostics injection webhook YAML manifest.
+
+  Returns:
+    0 if successful and 1 otherwise.
+  """
+  full_artifact_path = os.path.join(tempfile.gettempdir(), artifact_filename)
+
+  command = f'kubectl apply -f {full_artifact_path} -n gke-mldiagnostics'
+
+  return run_command_with_updates(
+      command,
+      f'Install {full_artifact_path}...',
+  )
+
+
+def _label_default_namespace_mldiagnostics() -> int:
+  """
+  Labels the 'default' namespace with 'managed-mldiagnostics-gke=true'.
+
+  Returns:
+    0 if successful and 1 otherwise.
+  """
+
+  command = 'kubectl label namespace default managed-mldiagnostics-gke=true'
+
+  return run_command_with_updates(
+      command,
+      'Label default namespace with managed-mldiagnostics-gke=true',
+  )
+
+
+def install_mldiagnostics_prerequisites() -> int:
+  """
+  Mldiagnostics installation requirements.
+
+  Returns:
+    0 if successful and 1 otherwise.
+  """
+
+  if not _wait_for_deployment_ready(
+      deployment_name=_KUEUE_DEPLOYMENT_NAME, namespace=_KUEUE_NAMESPACE_NAME
+  ):
+    xpk_print(
+        f'Application {_KUEUE_DEPLOYMENT_NAME} failed to become ready within'
+        ' the timeout.'
+    )
+    return 1
+
+  return_code = _install_cert_manager()
+  if return_code != 0:
+    return return_code
+
+  cert_webhook_ready = _wait_for_deployment_ready(
+      deployment_name=_CERT_WEBHOOK_DEPLOYMENT_NAME,
+      namespace=_CERT_WEBHOOK_NAMESPACE_NAME,
+  )
+  if not cert_webhook_ready:
+    xpk_print('The cert-manager-webhook installation failed.')
+    return 1
+
+  return_code = _download_mldiagnostics_yaml(
+      package_name=_WEBHOOK_PACKAGE, version=_WEBHOOK_VERSION
+  )
+  if return_code != 0:
+    return return_code
+
+  return_code = _create_mldiagnostics_namespace()
+  if return_code != 0:
+    return return_code
+
+  return_code = _install_mldiagnostics_yaml(artifact_filename=_WEBHOOK_FILENAME)
+  if return_code != 0:
+    return return_code
+
+  return_code = _label_default_namespace_mldiagnostics()
+  if return_code != 0:
+    return return_code
+
+  return_code = _download_mldiagnostics_yaml(
+      package_name=_OPERATOR_PACKAGE, version=_OPERATOR_VERSION
+  )
+  if return_code != 0:
+    return return_code
+
+  return_code = _install_mldiagnostics_yaml(
+      artifact_filename=_OPERATOR_FILENAME
+  )
+  if return_code != 0:
+    return return_code
+
+  xpk_print(
+      'All mldiagnostics installation and setup steps have been'
+      ' successfully completed!'
+  )
+  return 0
+
+
+def _wait_for_deployment_ready(
+    deployment_name: str, namespace: str, timeout_seconds: int = 300
+) -> bool:
+  """
+  Polls the Kubernetes Deployment status using kubectl rollout status
+  until it successfully rolls out (all replicas are ready) or times out.
+
+  Args:
+      deployment_name: The name of the Kubernetes Deployment (e.g., 'kueue-controller-manager').
+      namespace: The namespace where the Deployment is located (e.g., 'kueue-system').
+      timeout_seconds: Timeout duration in seconds (default is 300s / 5 minutes).
+
+  Returns:
+      bool: True if the Deployment successfully rolled out, False otherwise (timeout or error).
+  """
+
+  command = (
+      f'kubectl rollout status deployment/{deployment_name} -n {namespace}'
+      f' --timeout={timeout_seconds}s'
+  )
+
+  return_code = run_command_with_updates(
+      command, f'Checking status of deployment {deployment_name}...'
+  )
+
+  if return_code != 0:
+    return False
+
+  # When the status changes to 'running,' it might need about 10 seconds to fully stabilize.
+  stabilization_seconds = 30
+  stabilization_command = f'sleep {stabilization_seconds}'
+  stabilization_code = run_command_with_updates(
+      stabilization_command,
+      f'Deployment {deployment_name} is ready. Waiting {stabilization_seconds}'
+      ' seconds for full stabilization',
+      verbose=True,
+  )
+  if stabilization_code != 0:
+    return False
+
+  return True
diff --git a/src/xpk/commands/managed_ml_diagnostics_test.py b/src/xpk/commands/managed_ml_diagnostics_test.py
new file mode 100644
index 000000000..48cec68e9
--- /dev/null
+++ b/src/xpk/commands/managed_ml_diagnostics_test.py
@@ -0,0 +1,146 @@
+"""
+Copyright 2025 Google LLC
+
+Licensed under the Apache License, Version 2.0 (the "License");
+you may not use this file except in compliance with the License.
+You may obtain a copy of the License at
+
+     https://www.apache.org/licenses/LICENSE-2.0
+
+Unless required by applicable law or agreed to in writing, software
+distributed under the License is distributed on an "AS IS" BASIS,
+WITHOUT WARRANTIES OR CONDITIONS OF ANY KIND, either express or implied.
+See the License for the specific language governing permissions and
+limitations under the License.
+"""
+
+from dataclasses import dataclass
+from unittest.mock import MagicMock
+import pytest
+from xpk.commands.managed_ml_diagnostics import install_mldiagnostics_prerequisites
+from xpk.core.testing.commands_tester import CommandsTester
+
+
+@dataclass
+class _Mocks:
+  common_print_mock: MagicMock
+  commands_print_mock: MagicMock
+  commands_get_reservation_deployment_type: MagicMock
+  commands_tester: CommandsTester
+
+
+@pytest.fixture
+def mocks(mocker) -> _Mocks:
+  common_print_mock = mocker.patch(
+      'xpk.commands.common.xpk_print',
+      return_value=None,
+  )
+  commands_print_mock = mocker.patch(
+      'xpk.commands.cluster.xpk_print', return_value=None
+  )
+  commands_get_reservation_deployment_type = mocker.patch(
+      'xpk.commands.cluster.get_reservation_deployment_type',
+      return_value='DENSE',
+  )
+  return _Mocks(
+      common_print_mock=common_print_mock,
+      commands_get_reservation_deployment_type=commands_get_reservation_deployment_type,
+      commands_print_mock=commands_print_mock,
+      commands_tester=CommandsTester(
+          mocker,
+          run_command_with_updates_path=(
+              'xpk.commands.managed_ml_diagnostics.run_command_with_updates'
+          ),
+          run_command_for_value_path=(
+              'xpk.commands.managed_ml_diagnostics.run_command_for_value'
+          ),
+      ),
+  )
+
+
+def test_install_mldiagnostics_prerequisites_commands_executed(
+    mocks: _Mocks,
+):
+
+  install_mldiagnostics_prerequisites()
+
+  mocks.commands_tester.assert_command_run(
+      'kubectl',
+      'rollout',
+      'status',
+      'deployment/kueue-controller-manager',
+      times=1,
+  )
+
+  mocks.commands_tester.assert_command_run(
+      'kubectl',
+      'apply',
+      '-f',
+      'https://github.com/cert-manager/cert-manager/',
+      times=1,
+  )
+
+  mocks.commands_tester.assert_command_run(
+      'kubectl', 'rollout', 'status', 'deployment/cert-manager-webhook', times=1
+  )
+
+  mocks.commands_tester.assert_command_run(
+      'gcloud',
+      'artifacts',
+      'generic',
+      'download',
+      '--package=mldiagnostics-injection-webhook',
+      '--version=v0.5.0',
+      times=1,
+  )
+
+  mocks.commands_tester.assert_command_run(
+      'kubectl', 'create', 'namespace', 'gke-mldiagnostics', times=1
+  )
+
+  mocks.commands_tester.assert_command_run(
+      'kubectl',
+      'apply',
+      '-f',
+      '/tmp/mldiagnostics-injection-webhook-v0.5.0.yaml',
+      '-n',
+      'gke-mldiagnostics',
+      times=1,
+  )
+
+  mocks.commands_tester.assert_command_run(
+      'kubectl',
+      'label',
+      'namespace',
+      'default',
+      'managed-mldiagnostics-gke=true',
+      times=1,
+  )
+
+  mocks.commands_tester.assert_command_run(
+      'gcloud',
+      'artifacts',
+      'generic',
+      'download',
+      '--package=mldiagnostics-connection-operator',
+      '--version=v0.5.0',
+      times=1,
+  )
+
+  mocks.commands_tester.assert_command_run(
+      'kubectl',
+      'apply',
+      '-f',
+      '/tmp/mldiagnostics-connection-operator-v0.5.0.yaml',
+      '-n',
+      'gke-mldiagnostics',
+      times=1,
+  )
+
+  mocks.commands_tester.assert_command_run(
+      'gcloud', 'artifacts', 'generic', 'download', times=2
+  )
+
+  mocks.commands_tester.assert_command_run(
+      'kubectl', 'apply', '-f', '-n', 'gke-mldiagnostics', times=2
+  )
diff --git a/src/xpk/parser/cluster.py b/src/xpk/parser/cluster.py
index 4f113dbbd..4475ce232 100644
--- a/src/xpk/parser/cluster.py
+++ b/src/xpk/parser/cluster.py
@@ -150,6 +150,7 @@ def set_cluster_create_parser(cluster_create_parser: ArgumentParser):
           ' enable cluster to accept Pathways workloads.'
       ),
   )
+
   if FeatureFlags.SUB_SLICING_ENABLED:
     add_cluster_create_sub_slicing_arguments(cluster_create_optional_arguments)
 
@@ -691,6 +692,11 @@ def add_shared_cluster_create_optional_arguments(
           ' regional clusters, all zones must support the machine type.'
       ),
   )
+  parser_or_group.add_argument(
+      '--managed-mldiagnostics',
+      action='store_true',
+      help='Enables the installation of required ML Diagnostics components.',
+  )
   parser_or_group.add_argument(
       '--cluster-cpu-machine-type',
       type=str,
diff --git a/src/xpk/parser/cluster_test.py b/src/xpk/parser/cluster_test.py
index 398c0d10f..6af84f331 100644
--- a/src/xpk/parser/cluster_test.py
+++ b/src/xpk/parser/cluster_test.py
@@ -103,3 +103,18 @@ def test_cluster_create_ray_sub_slicing_is_hidden_but_set_to_false():
 
   assert args.sub_slicing is False
   assert "--sub-slicing" not in help_str
+
+
+def test_cluster_create_managed_mldiagnostics():
+  parser = argparse.ArgumentParser()
+
+  set_cluster_create_parser(parser)
+  args = parser.parse_args([
+      "--cluster",
+      "test-cluster",
+      "--tpu-type",
+      "v5p-8",
+      "--managed-mldiagnostics",
+  ])
+
+  assert args.managed_mldiagnostics is True