diff --git a/internal/services/storage/storage_share_file_resource.go b/internal/services/storage/storage_share_file_resource.go
index 4ea6732b3a37..15790f2daa6a 100644
--- a/internal/services/storage/storage_share_file_resource.go
+++ b/internal/services/storage/storage_share_file_resource.go
@@ -300,7 +300,17 @@ func resourceStorageShareFileRead(d *pluginsdk.ResourceData, meta interface{}) e
 	}
 	d.Set("content_type", props.ContentType)
 	d.Set("content_encoding", props.ContentEncoding)
-	d.Set("content_md5", props.ContentMD5)
+
+	// Set the ContentMD5 value to md5 hash in hex
+	contentMD5 := ""
+	if props.ContentMD5 != "" {
+		contentMD5, err = convertBase64ToHexEncoding(props.ContentMD5)
+		if err != nil {
+			return fmt.Errorf("converting hex to base64 encoding for content_md5: %v", err)
+		}
+	}
+	d.Set("content_md5", contentMD5)
+
 	d.Set("content_disposition", props.ContentDisposition)
 
 	if props.ContentLength == nil {
diff --git a/internal/services/storage/storage_share_file_resource_test.go b/internal/services/storage/storage_share_file_resource_test.go
index 9e588ae37e41..1f59973e3219 100644
--- a/internal/services/storage/storage_share_file_resource_test.go
+++ b/internal/services/storage/storage_share_file_resource_test.go
@@ -349,7 +349,8 @@ resource "azurerm_storage_share_file" "test" {
   name             = "test"
   storage_share_id = azurerm_storage_share.test.id
 
-  source = "%s"
+  source      = "%[2]s"
+  content_md5 = filemd5(%[2]q)
 
   metadata = {
     hello = "world"