diff --git a/library/common-test/tests/service/metadata_test.yaml b/library/common-test/tests/service/metadata_test.yaml
index ed5537dc..a77b7105 100644
--- a/library/common-test/tests/service/metadata_test.yaml
+++ b/library/common-test/tests/service/metadata_test.yaml
@@ -157,6 +157,99 @@ tests:
             metallb.universe.tf/allow-shared-ip: test-release-name-common-test
             traefik.ingress.kubernetes.io/service.serversscheme: https
 
+  - it: should add metallb shared ip annotation without externalTrafficPolicy
+    set:
+      global:
+        metallb:
+          addServiceAnnotations: true
+      service:
+        my-service1:
+          enabled: true
+          primary: true
+          type: LoadBalancer
+          ports:
+            port-name:
+              enabled: true
+              primary: true
+              port: 12345
+      workload:
+        my-workload:
+          enabled: true
+          primary: true
+          type: Deployment
+          podSpec: {}
+    asserts:
+      - documentIndex: *serviceDoc
+        isKind:
+          of: Service
+      - documentIndex: *serviceDoc
+        isSubset:
+          path: metadata.annotations
+          content:
+            metallb.universe.tf/allow-shared-ip: test-release-name-common-test
+
+  - it: should add metallb shared ip annotation with externalTrafficPolicy set to Cluster
+    set:
+      global:
+        metallb:
+          addServiceAnnotations: true
+      service:
+        my-service1:
+          enabled: true
+          primary: true
+          type: LoadBalancer
+          externalTrafficPolicy: Cluster
+          ports:
+            port-name:
+              enabled: true
+              primary: true
+              port: 12345
+      workload:
+        my-workload:
+          enabled: true
+          primary: true
+          type: Deployment
+          podSpec: {}
+    asserts:
+      - documentIndex: *serviceDoc
+        isKind:
+          of: Service
+      - documentIndex: *serviceDoc
+        isSubset:
+          path: metadata.annotations
+          content:
+            metallb.universe.tf/allow-shared-ip: test-release-name-common-test
+
+  - it: should NOT add metallb shared ip annotation with externalTrafficPolicy set to Local
+    set:
+      global:
+        metallb:
+          addServiceAnnotations: true
+      service:
+        my-service1:
+          enabled: true
+          primary: true
+          type: LoadBalancer
+          externalTrafficPolicy: Local
+          ports:
+            port-name:
+              enabled: true
+              primary: true
+              port: 12345
+      workload:
+        my-workload:
+          enabled: true
+          primary: true
+          type: Deployment
+          podSpec: {}
+    asserts:
+      - documentIndex: *serviceDoc
+        isKind:
+          of: Service
+      - documentIndex: *serviceDoc
+        notExists:
+          path: metadata.annotations.metallb\.universe\.tf/allow-shared-ip
+
   - it: should pass with correct selector with targetSelector
     set:
       service:
diff --git a/library/common/templates/lib/service/_additionalAnnotations.tpl b/library/common/templates/lib/service/_additionalAnnotations.tpl
index 444f2818..19fec811 100644
--- a/library/common/templates/lib/service/_additionalAnnotations.tpl
+++ b/library/common/templates/lib/service/_additionalAnnotations.tpl
@@ -20,11 +20,8 @@ annotations: The annotations variable reference, to append the MetalLB annotatio
 
   {{- if (hasKey $rootCtx.Values.global "metallb") -}}
     {{- if $rootCtx.Values.global.metallb.addServiceAnnotations -}}
-      {{- if $objectData.externalTrafficPolicy -}}
-        {{- if ne $objectData.externalTrafficPolicy "Local" -}}
-          {{- $_ := set $annotations "metallb.universe.tf/allow-shared-ip" $sharedKey -}}
-        {{- end -}}
-      {{- else -}}
+      {{/* If externalTrafficPolicy is not set or is not Local, add the shared key as annotation */}}
+      {{- if ne $objectData.externalTrafficPolicy "Local" -}}
         {{- $_ := set $annotations "metallb.universe.tf/allow-shared-ip" $sharedKey -}}
       {{- end -}}