diff --git a/plugins/modules/mso_schema_site_bd_l3out.py b/plugins/modules/mso_schema_site_bd_l3out.py
index 17391e56..3c2d9173 100644
--- a/plugins/modules/mso_schema_site_bd_l3out.py
+++ b/plugins/modules/mso_schema_site_bd_l3out.py
@@ -173,7 +173,9 @@ def main():
         site=dict(type="str", required=True),
         template=dict(type="str", required=True),
         bd=dict(type="str", required=True),
-        l3out=dict(type="dict", options=mso_l3out_reference_spec(), aliases=["name"]),  # This parameter is not required for querying all objects
+        l3out=dict(
+            type="dict", options=mso_l3out_reference_spec(), aliases=["name"], mutually_exclusive=[("tenant", "schema"), ("tenant", "template")]
+        ),  # This parameter is not required for querying all objects
         state=dict(type="str", default="present", choices=["absent", "present", "query"]),
     )
 
@@ -207,9 +209,6 @@ def main():
 
     if l3out:
 
-        if l3out.get("tenant") and (l3out.get("schema") or l3out.get("template")):
-            module.fail_json(msg="L3out tenant cannot be specified in combination with schema or template")
-
         if l3out.get("tenant"):
             l3out_ref = "uni/tn-{0}/out-{1}".format(l3out.get("tenant"), l3out.get("name"))
         else:
diff --git a/tests/integration/targets/mso_schema_site_bd_l3out/tasks/main.yml b/tests/integration/targets/mso_schema_site_bd_l3out/tasks/main.yml
index 35eac554..6ae17044 100644
--- a/tests/integration/targets/mso_schema_site_bd_l3out/tasks/main.yml
+++ b/tests/integration/targets/mso_schema_site_bd_l3out/tasks/main.yml
@@ -597,11 +597,11 @@
       - nm_remove_l3out_on_apic.previous.tenant == "ansible_test"
       - nm_remove_l3out_on_apic.current == {}
       - nm_create_l3out_schema_error is failed
-      - nm_create_l3out_schema_error.msg == "L3out tenant cannot be specified in combination with schema or template"
+      - nm_create_l3out_schema_error.msg == "parameters are mutually exclusive{{":"}} tenant|schema found in l3out"
       - nm_create_l3out_template_error is failed
-      - nm_create_l3out_template_error.msg == "L3out tenant cannot be specified in combination with schema or template"
+      - nm_create_l3out_template_error.msg == "parameters are mutually exclusive{{":"}} tenant|template found in l3out"
       - nm_create_l3out_both_error is failed
-      - nm_create_l3out_both_error.msg == "L3out tenant cannot be specified in combination with schema or template"
+      - nm_create_l3out_both_error.msg == "parameters are mutually exclusive{{":"}} tenant|schema, tenant|template found in l3out"
   
   always: