diff --git a/internal/services/datafactory/data_factory_linked_service_azure_sql_database_resource.go b/internal/services/datafactory/data_factory_linked_service_azure_sql_database_resource.go
index d95ef31e1f0d..30c1182597d3 100644
--- a/internal/services/datafactory/data_factory_linked_service_azure_sql_database_resource.go
+++ b/internal/services/datafactory/data_factory_linked_service_azure_sql_database_resource.go
@@ -234,8 +234,10 @@ func resourceDataFactoryLinkedServiceAzureSQLDatabaseCreateUpdate(d *pluginsdk.R
 		}
 
 		sqlDatabaseProperties.ServicePrincipalID = utils.String(d.Get("service_principal_id").(string))
-		sqlDatabaseProperties.Tenant = utils.String(d.Get("tenant_id").(string))
 		sqlDatabaseProperties.ServicePrincipalKey = &secureString
+		if v := d.Get("tenant_id").(string); v != "" {
+			sqlDatabaseProperties.Tenant = pointer.To(v)
+		}
 	}
 
 	if v, ok := d.GetOk("key_vault_password"); ok {