diff --git a/internal/services/network/application_gateway_resource.go b/internal/services/network/application_gateway_resource.go
index 0028ec225f34..4610dd292248 100644
--- a/internal/services/network/application_gateway_resource.go
+++ b/internal/services/network/application_gateway_resource.go
@@ -811,6 +811,7 @@ func resourceApplicationGateway() *pluginsdk.Resource {
 							Type:     pluginsdk.TypeString,
 							Required: true,
 							ValidateFunc: validation.StringInSlice([]string{
+								string(applicationgateways.ApplicationGatewaySkuNameBasic),
 								string(applicationgateways.ApplicationGatewaySkuNameStandardSmall),
 								string(applicationgateways.ApplicationGatewaySkuNameStandardMedium),
 								string(applicationgateways.ApplicationGatewaySkuNameStandardLarge),
@@ -825,6 +826,7 @@ func resourceApplicationGateway() *pluginsdk.Resource {
 							Type:     pluginsdk.TypeString,
 							Required: true,
 							ValidateFunc: validation.StringInSlice([]string{
+								string(applicationgateways.ApplicationGatewayTierBasic),
 								string(applicationgateways.ApplicationGatewayTierStandard),
 								string(applicationgateways.ApplicationGatewayTierStandardVTwo),
 								string(applicationgateways.ApplicationGatewayTierWAF),
@@ -4709,12 +4711,45 @@ func checkSslPolicy(sslPolicy []interface{}) error {
 	return nil
 }
 
+func checkBasicSkuFeatures(d *pluginsdk.ResourceDiff) error {
+	_, hasAutoscaleConfig := d.GetOk("autoscale_configuration.0")
+	if hasAutoscaleConfig {
+		return fmt.Errorf("The Application Gateway does not support `autoscale_configuration` blocks for the selected SKU tier %q", applicationgateways.ApplicationGatewaySkuNameBasic)
+	}
+
+	capacity, hasCapacityConfig := d.GetOk("sku.0.capacity")
+	if hasCapacityConfig {
+		if capacity.(int) > 2 || capacity.(int) < 1 {
+			return fmt.Errorf("`capacity` value %q for the selected SKU tier %q is invalid. Value must be between [1-2]", capacity, applicationgateways.ApplicationGatewaySkuNameBasic)
+		}
+	} else {
+		return fmt.Errorf("The Application Gateway must specify a `capacity` value between [1-2] for the selected SKU tier %q", applicationgateways.ApplicationGatewaySkuNameBasic)
+	}
+
+	_, hasMtlsConfig := d.GetOk("trusted_client_certificate")
+	if hasMtlsConfig {
+		return fmt.Errorf("The Application Gateway does not support `trusted_client_certificate` blocks for the selected SKU tier %q", applicationgateways.ApplicationGatewaySkuNameBasic)
+	}
+
+	_, hasRewriteRuleSetConfig := d.GetOk("rewrite_rule_set")
+	if hasRewriteRuleSetConfig {
+		return fmt.Errorf("The Application Gateway does not support `rewrite_rule_set` blocks for the selected SKU tier %q", applicationgateways.ApplicationGatewaySkuNameBasic)
+	}
+
+	return nil
+}
+
 func applicationGatewayCustomizeDiff(ctx context.Context, d *pluginsdk.ResourceDiff, _ interface{}) error {
 	_, hasAutoscaleConfig := d.GetOk("autoscale_configuration.0")
 	capacity, hasCapacity := d.GetOk("sku.0.capacity")
 	tier := d.Get("sku.0.tier").(string)
 
-	if !hasAutoscaleConfig && !hasCapacity {
+	if tier == string(applicationgateways.ApplicationGatewaySkuNameBasic) {
+		err := checkBasicSkuFeatures(d)
+		if err != nil {
+			return err
+		}
+	} else if !hasAutoscaleConfig && !hasCapacity {
 		return fmt.Errorf("The Application Gateway must specify either `capacity` or `autoscale_configuration` for the selected SKU tier %q", tier)
 	}
 
diff --git a/internal/services/network/application_gateway_resource_test.go b/internal/services/network/application_gateway_resource_test.go
index 0ee0de00fb24..33d843fff58b 100644
--- a/internal/services/network/application_gateway_resource_test.go
+++ b/internal/services/network/application_gateway_resource_test.go
@@ -32,8 +32,8 @@ func TestAccApplicationGateway_basic(t *testing.T) {
 			Config: r.basic(data),
 			Check: acceptance.ComposeTestCheckFunc(
 				check.That(data.ResourceName).ExistsInAzure(r),
-				check.That(data.ResourceName).Key("sku.0.name").HasValue("Standard_Small"),
-				check.That(data.ResourceName).Key("sku.0.tier").HasValue("Standard"),
+				check.That(data.ResourceName).Key("sku.0.name").HasValue("Standard_v2"),
+				check.That(data.ResourceName).Key("sku.0.tier").HasValue("Standard_v2"),
 				check.That(data.ResourceName).Key("sku.0.capacity").HasValue("2"),
 				check.That(data.ResourceName).Key("waf_configuration.#").HasValue("0"),
 			),
@@ -713,8 +713,8 @@ func TestAccApplicationGateway_webApplicationFirewall(t *testing.T) {
 			Config: r.webApplicationFirewall(data),
 			Check: acceptance.ComposeTestCheckFunc(
 				check.That(data.ResourceName).ExistsInAzure(r),
-				check.That(data.ResourceName).Key("sku.0.name").HasValue("WAF_Medium"),
-				check.That(data.ResourceName).Key("sku.0.tier").HasValue("WAF"),
+				check.That(data.ResourceName).Key("sku.0.name").HasValue("WAF_v2"),
+				check.That(data.ResourceName).Key("sku.0.tier").HasValue("WAF_v2"),
 				check.That(data.ResourceName).Key("sku.0.capacity").HasValue("1"),
 				check.That(data.ResourceName).Key("waf_configuration.0.enabled").HasValue("true"),
 				check.That(data.ResourceName).Key("waf_configuration.0.firewall_mode").HasValue("Detection"),
@@ -745,8 +745,8 @@ func TestAccApplicationGateway_connectionDraining(t *testing.T) {
 			Config: r.basic(data),
 			Check: acceptance.ComposeTestCheckFunc(
 				check.That(data.ResourceName).ExistsInAzure(r),
-				check.That(data.ResourceName).Key("sku.0.name").HasValue("Standard_Small"),
-				check.That(data.ResourceName).Key("sku.0.tier").HasValue("Standard"),
+				check.That(data.ResourceName).Key("sku.0.name").HasValue("Standard_v2"),
+				check.That(data.ResourceName).Key("sku.0.tier").HasValue("Standard_v2"),
 				check.That(data.ResourceName).Key("sku.0.capacity").HasValue("2"),
 				check.That(data.ResourceName).Key("waf_configuration.#").HasValue("0"),
 				acceptance.TestCheckNoResourceAttr(data.ResourceName, "backend_http_settings.0.connection_draining.0.enabled"),
@@ -1320,6 +1320,24 @@ func TestAccApplicationGateway_removeFirewallPolicy(t *testing.T) {
 	})
 }
 
+func TestAccApplicationGateway_basicSku(t *testing.T) {
+	data := acceptance.BuildTestData(t, "azurerm_application_gateway", "test")
+	r := ApplicationGatewayResource{}
+
+	data.ResourceTest(t, r, []acceptance.TestStep{
+		{
+			Config: r.basic_basicSku(data),
+			Check: acceptance.ComposeTestCheckFunc(
+				check.That(data.ResourceName).ExistsInAzure(r),
+				check.That(data.ResourceName).Key("sku.0.name").HasValue("Basic"),
+				check.That(data.ResourceName).Key("sku.0.tier").HasValue("Basic"),
+				check.That(data.ResourceName).Key("sku.0.capacity").IsNotEmpty(),
+			),
+		},
+		data.ImportStep(),
+	})
+}
+
 func (t ApplicationGatewayResource) Exists(ctx context.Context, clients *clients.Client, state *pluginsdk.InstanceState) (*bool, error) {
 	id, err := applicationgateways.ParseApplicationGatewayID(state.ID)
 	if err != nil {
@@ -1354,8 +1372,8 @@ resource "azurerm_application_gateway" "test" {
   location            = azurerm_resource_group.test.location
 
   sku {
-    name     = "Standard_Small"
-    tier     = "Standard"
+    name     = "Standard_v2"
+    tier     = "Standard_v2"
     capacity = 2
   }
 
@@ -1399,6 +1417,7 @@ resource "azurerm_application_gateway" "test" {
     http_listener_name         = local.listener_name
     backend_address_pool_name  = local.backend_address_pool_name
     backend_http_settings_name = local.http_setting_name
+    priority                   = 10
   }
 }
 `, r.template(data), data.RandomInteger)
@@ -1584,6 +1603,85 @@ resource "azurerm_application_gateway" "test" {
 `, r.template(data), data.RandomInteger, data.RandomInteger)
 }
 
+func (r ApplicationGatewayResource) basic_basicSku(data acceptance.TestData) string {
+	return fmt.Sprintf(`
+%s
+
+# since these variables are re-used - a locals block makes this more maintainable
+locals {
+  backend_address_pool_name      = "${azurerm_virtual_network.test.name}-beap"
+  frontend_port_name             = "${azurerm_virtual_network.test.name}-feport"
+  frontend_ip_configuration_name = "${azurerm_virtual_network.test.name}-feip"
+  http_setting_name              = "${azurerm_virtual_network.test.name}-be-htst"
+  listener_name                  = "${azurerm_virtual_network.test.name}-httplstn"
+  request_routing_rule_name      = "${azurerm_virtual_network.test.name}-rqrt"
+}
+
+resource "azurerm_public_ip" "test_standard" {
+  name                = "acctest-pubip-standard"
+  location            = azurerm_resource_group.test.location
+  resource_group_name = azurerm_resource_group.test.name
+  allocation_method   = "Static"
+  sku                 = "Standard"
+}
+
+resource "azurerm_application_gateway" "test" {
+  name                = "acctestag-%d"
+  resource_group_name = azurerm_resource_group.test.name
+  location            = azurerm_resource_group.test.location
+
+  sku {
+    name     = "Basic"
+    tier     = "Basic"
+    capacity = 2
+  }
+
+  gateway_ip_configuration {
+    name      = "my-gateway-ip-configuration"
+    subnet_id = azurerm_subnet.test.id
+  }
+
+  frontend_port {
+    name = local.frontend_port_name
+    port = 80
+  }
+
+  frontend_ip_configuration {
+    name                 = local.frontend_ip_configuration_name
+    public_ip_address_id = azurerm_public_ip.test_standard.id
+  }
+
+  backend_address_pool {
+    name = local.backend_address_pool_name
+  }
+
+  backend_http_settings {
+    name                  = local.http_setting_name
+    cookie_based_affinity = "Disabled"
+    port                  = 80
+    protocol              = "Http"
+    request_timeout       = 1
+  }
+
+  http_listener {
+    name                           = local.listener_name
+    frontend_ip_configuration_name = local.frontend_ip_configuration_name
+    frontend_port_name             = local.frontend_port_name
+    protocol                       = "Http"
+  }
+
+  request_routing_rule {
+    name                       = local.request_routing_rule_name
+    priority                   = 100
+    rule_type                  = "Basic"
+    http_listener_name         = local.listener_name
+    backend_address_pool_name  = local.backend_address_pool_name
+    backend_http_settings_name = local.http_setting_name
+  }
+}
+`, r.template(data), data.RandomInteger)
+}
+
 func (r ApplicationGatewayResource) createGlobalConfiguration(data acceptance.TestData) string {
 	return fmt.Sprintf(`
 %s
@@ -2109,8 +2207,8 @@ resource "azurerm_application_gateway" "test" {
   location            = azurerm_resource_group.test.location
 
   sku {
-    name     = "Standard_Small"
-    tier     = "Standard"
+    name     = "Standard_v2"
+    tier     = "Standard_v2"
     capacity = 2
   }
 
@@ -2155,6 +2253,7 @@ resource "azurerm_application_gateway" "test" {
     http_listener_name         = local.listener_name
     backend_address_pool_name  = local.backend_address_pool_name
     backend_http_settings_name = local.http_setting_name
+    priority                   = 10
   }
 }
 `, r.template(data), data.RandomInteger)
@@ -2181,8 +2280,8 @@ resource "azurerm_application_gateway" "test" {
   enable_http2        = true
 
   sku {
-    name     = "Standard_Small"
-    tier     = "Standard"
+    name     = "Standard_v2"
+    tier     = "Standard_v2"
     capacity = 2
   }
 
@@ -2226,6 +2325,7 @@ resource "azurerm_application_gateway" "test" {
     http_listener_name         = local.listener_name
     backend_address_pool_name  = local.backend_address_pool_name
     backend_http_settings_name = local.http_setting_name
+    priority                   = 10
   }
 }
 `, r.template(data), data.RandomInteger)
@@ -2241,8 +2341,8 @@ resource "azurerm_application_gateway" "import" {
   location            = azurerm_application_gateway.test.location
 
   sku {
-    name     = "Standard_Small"
-    tier     = "Standard"
+    name     = "Standard_v2"
+    tier     = "Standard_v2"
     capacity = 2
   }
 
@@ -2286,6 +2386,7 @@ resource "azurerm_application_gateway" "import" {
     http_listener_name         = local.listener_name
     backend_address_pool_name  = local.backend_address_pool_name
     backend_http_settings_name = local.http_setting_name
+    priority                   = 10
   }
 }
 `, r.basic(data))
@@ -2312,8 +2413,8 @@ resource "azurerm_application_gateway" "test" {
   location            = azurerm_resource_group.test.location
 
   sku {
-    name     = "Standard_Small"
-    tier     = "Standard"
+    name     = "Standard_v2"
+    tier     = "Standard_v2"
     capacity = 2
   }
 
@@ -2366,6 +2467,7 @@ resource "azurerm_application_gateway" "test" {
     http_listener_name         = local.listener_name
     backend_address_pool_name  = local.backend_address_pool_name
     backend_http_settings_name = local.http_setting_name
+    priority                   = 10
   }
 }
 `, r.template(data), data.RandomInteger)
@@ -2737,8 +2839,8 @@ resource "azurerm_application_gateway" "test" {
   force_firewall_policy_association = %t
 
   sku {
-    name     = "Standard_Small"
-    tier     = "Standard"
+    name     = "Standard_v2"
+    tier     = "Standard_v2"
     capacity = 2
   }
 
@@ -2782,6 +2884,7 @@ resource "azurerm_application_gateway" "test" {
     http_listener_name         = local.listener_name
     backend_address_pool_name  = local.backend_address_pool_name
     backend_http_settings_name = local.http_setting_name
+    priority                   = 10
   }
 }
 `, r.template(data), data.RandomInteger, forceFirewallPolicyAssociation)
@@ -3266,8 +3369,8 @@ resource "azurerm_application_gateway" "test" {
   location            = azurerm_resource_group.test.location
 
   sku {
-    name     = "Standard_Small"
-    tier     = "Standard"
+    name     = "Standard_v2"
+    tier     = "Standard_v2"
     capacity = 2
   }
 
@@ -3320,6 +3423,7 @@ resource "azurerm_application_gateway" "test" {
     http_listener_name         = local.listener_name
     backend_address_pool_name  = local.backend_address_pool_name
     backend_http_settings_name = local.http_setting_name
+    priority                   = 10
   }
 }
 `, r.template(data), data.RandomInteger)
@@ -3445,8 +3549,8 @@ resource "azurerm_application_gateway" "test" {
   location            = azurerm_resource_group.test.location
 
   sku {
-    name     = "Standard_Small"
-    tier     = "Standard"
+    name     = "Standard_v2"
+    tier     = "Standard_v2"
     capacity = 2
   }
 
@@ -3489,6 +3593,7 @@ resource "azurerm_application_gateway" "test" {
     rule_type          = "PathBasedRouting"
     url_path_map_name  = local.url_path_map_name
     http_listener_name = local.listener_name
+    priority           = 10
   }
 
   url_path_map {
@@ -3533,8 +3638,8 @@ resource "azurerm_application_gateway" "test" {
   location            = azurerm_resource_group.test.location
 
   sku {
-    name     = "Standard_Small"
-    tier     = "Standard"
+    name     = "Standard_v2"
+    tier     = "Standard_v2"
     capacity = 2
   }
 
@@ -3577,6 +3682,7 @@ resource "azurerm_application_gateway" "test" {
     rule_type          = "PathBasedRouting"
     url_path_map_name  = local.url_path_map_name
     http_listener_name = local.listener_name
+    priority           = 10
   }
 
   redirect_configuration {
@@ -3630,8 +3736,8 @@ resource "azurerm_application_gateway" "test" {
   location            = azurerm_resource_group.test.location
 
   sku {
-    name     = "Standard_Small"
-    tier     = "Standard"
+    name     = "Standard_v2"
+    tier     = "Standard_v2"
     capacity = 2
   }
 
@@ -3688,6 +3794,7 @@ resource "azurerm_application_gateway" "test" {
     rule_type                   = "Basic"
     http_listener_name          = local.listener_name
     redirect_configuration_name = local.redirect_configuration_name
+    priority                    = 10
   }
 
   redirect_configuration {
@@ -3726,8 +3833,8 @@ resource "azurerm_application_gateway" "test" {
   location            = azurerm_resource_group.test.location
 
   sku {
-    name     = "Standard_Small"
-    tier     = "Standard"
+    name     = "Standard_v2"
+    tier     = "Standard_v2"
     capacity = 2
   }
 
@@ -3783,6 +3890,7 @@ resource "azurerm_application_gateway" "test" {
     http_listener_name          = local.listener_name
     backend_address_pool_name   = local.backend_address_pool_name
     redirect_configuration_name = local.redirect_configuration_name
+    priority                    = 10
   }
 
   redirect_configuration {
@@ -3824,8 +3932,8 @@ resource "azurerm_application_gateway" "test" {
   location            = azurerm_resource_group.test.location
 
   sku {
-    name     = "Standard_Small"
-    tier     = "Standard"
+    name     = "Standard_v2"
+    tier     = "Standard_v2"
     capacity = 2
   }
 
@@ -3880,6 +3988,7 @@ resource "azurerm_application_gateway" "test" {
     rule_type          = "PathBasedRouting"
     url_path_map_name  = local.url_path_map_name
     http_listener_name = local.listener_name
+    priority           = 10
   }
 
   url_path_map {
@@ -3946,8 +4055,8 @@ resource "azurerm_application_gateway" "test" {
   location            = azurerm_resource_group.test.location
 
   sku {
-    name     = "Standard_Small"
-    tier     = "Standard"
+    name     = "Standard_v2"
+    tier     = "Standard_v2"
     capacity = 2
   }
 
@@ -4022,6 +4131,7 @@ resource "azurerm_application_gateway" "test" {
     http_listener_name         = local.listener_name
     backend_address_pool_name  = local.backend_address_pool_name
     backend_http_settings_name = local.http_setting_name
+    priority                   = 10
   }
 }
 `, r.template(data), data.RandomInteger)
@@ -4049,8 +4159,8 @@ resource "azurerm_application_gateway" "test" {
   location            = azurerm_resource_group.test.location
 
   sku {
-    name     = "Standard_Small"
-    tier     = "Standard"
+    name     = "Standard_v2"
+    tier     = "Standard_v2"
     capacity = 2
   }
 
@@ -4128,6 +4238,7 @@ resource "azurerm_application_gateway" "test" {
     http_listener_name         = local.listener_name
     backend_address_pool_name  = local.backend_address_pool_name
     backend_http_settings_name = local.http_setting_name
+    priority                   = 10
   }
 }
 `, r.template(data), data.RandomInteger)
@@ -4154,8 +4265,8 @@ resource "azurerm_application_gateway" "test" {
   location            = azurerm_resource_group.test.location
 
   sku {
-    name     = "Standard_Small"
-    tier     = "Standard"
+    name     = "Standard_v2"
+    tier     = "Standard_v2"
     capacity = 2
   }
 
@@ -4211,6 +4322,7 @@ resource "azurerm_application_gateway" "test" {
     http_listener_name         = local.listener_name
     backend_address_pool_name  = local.backend_address_pool_name
     backend_http_settings_name = local.http_setting_name
+    priority                   = 10
   }
 }
 `, r.template(data), data.RandomInteger)
@@ -4328,8 +4440,8 @@ resource "azurerm_application_gateway" "test" {
   location            = azurerm_resource_group.test.location
 
   sku {
-    name     = "Standard_Small"
-    tier     = "Standard"
+    name     = "Standard_v2"
+    tier     = "Standard_v2"
     capacity = 2
   }
 
@@ -4375,6 +4487,7 @@ resource "azurerm_application_gateway" "test" {
     http_listener_name         = local.listener_name
     backend_address_pool_name  = local.backend_address_pool_name
     backend_http_settings_name = local.http_setting_name
+    priority                   = 10
   }
 }
 `, r.template(data), data.RandomInteger, hostName, pick)
@@ -4481,8 +4594,8 @@ resource "azurerm_application_gateway" "test" {
   location            = azurerm_resource_group.test.location
 
   sku {
-    name     = "Standard_Small"
-    tier     = "Standard"
+    name     = "Standard_v2"
+    tier     = "Standard_v2"
     capacity = 2
   }
 
@@ -4527,6 +4640,7 @@ resource "azurerm_application_gateway" "test" {
     http_listener_name         = local.listener_name
     backend_address_pool_name  = local.backend_address_pool_name
     backend_http_settings_name = local.http_setting_name
+    priority                   = 10
   }
 }
 `, r.template(data), data.RandomInteger)
@@ -4873,8 +4987,8 @@ resource "azurerm_application_gateway" "test" {
   location            = azurerm_resource_group.test.location
 
   sku {
-    name     = "Standard_Small"
-    tier     = "Standard"
+    name     = "Standard_v2"
+    tier     = "Standard_v2"
     capacity = 2
   }
 
@@ -4919,6 +5033,7 @@ resource "azurerm_application_gateway" "test" {
     http_listener_name         = local.listener_name
     backend_address_pool_name  = local.backend_address_pool_name
     backend_http_settings_name = local.http_setting_name
+    priority                   = 10
   }
 
   ssl_certificate {
@@ -4951,8 +5066,8 @@ resource "azurerm_application_gateway" "test" {
   location            = azurerm_resource_group.test.location
 
   sku {
-    name     = "Standard_Small"
-    tier     = "Standard"
+    name     = "Standard_v2"
+    tier     = "Standard_v2"
     capacity = 2
   }
 
@@ -4997,6 +5112,7 @@ resource "azurerm_application_gateway" "test" {
     http_listener_name         = local.listener_name
     backend_address_pool_name  = local.backend_address_pool_name
     backend_http_settings_name = local.http_setting_name
+    priority                   = 10
   }
 
   ssl_certificate {
@@ -5029,8 +5145,8 @@ resource "azurerm_application_gateway" "test" {
   location            = azurerm_resource_group.test.location
 
   sku {
-    name     = "Standard_Small"
-    tier     = "Standard"
+    name     = "Standard_v2"
+    tier     = "Standard_v2"
     capacity = 2
   }
 
@@ -5075,6 +5191,7 @@ resource "azurerm_application_gateway" "test" {
     http_listener_name         = local.listener_name
     backend_address_pool_name  = local.backend_address_pool_name
     backend_http_settings_name = local.http_setting_name
+    priority                   = 10
   }
 
   ssl_certificate {
@@ -5158,8 +5275,8 @@ resource "azurerm_application_gateway" "test" {
   location            = azurerm_resource_group.test.location
 
   sku {
-    name     = "Standard_Small"
-    tier     = "Standard"
+    name     = "Standard_v2"
+    tier     = "Standard_v2"
     capacity = 2
   }
 
@@ -5203,6 +5320,7 @@ resource "azurerm_application_gateway" "test" {
     http_listener_name         = local.listener_name
     backend_address_pool_name  = local.backend_address_pool_name
     backend_http_settings_name = local.http_setting_name
+    priority                   = 10
   }
 
   ssl_certificate {
@@ -5241,8 +5359,8 @@ resource "azurerm_application_gateway" "test" {
   location            = azurerm_resource_group.test.location
 
   sku {
-    name     = "Standard_Small"
-    tier     = "Standard"
+    name     = "Standard_v2"
+    tier     = "Standard_v2"
     capacity = 2
   }
 
@@ -5286,6 +5404,7 @@ resource "azurerm_application_gateway" "test" {
     http_listener_name         = local.listener_name
     backend_address_pool_name  = local.backend_address_pool_name
     backend_http_settings_name = local.http_setting_name
+    priority                   = 10
   }
 
   ssl_certificate {
@@ -5323,8 +5442,8 @@ resource "azurerm_application_gateway" "test" {
   location            = azurerm_resource_group.test.location
 
   sku {
-    name     = "WAF_Medium"
-    tier     = "WAF"
+    name     = "WAF_v2"
+    tier     = "WAF_v2"
     capacity = 1
   }
 
@@ -5378,6 +5497,7 @@ resource "azurerm_application_gateway" "test" {
     http_listener_name         = local.listener_name
     backend_address_pool_name  = local.backend_address_pool_name
     backend_http_settings_name = local.http_setting_name
+    priority                   = 10
   }
 }
 `, r.template(data), data.RandomInteger)
@@ -5404,8 +5524,8 @@ resource "azurerm_application_gateway" "test" {
   enable_http2        = true
 
   sku {
-    name     = "Standard_Small"
-    tier     = "Standard"
+    name     = "Standard_v2"
+    tier     = "Standard_v2"
     capacity = 2
   }
 
@@ -5454,6 +5574,7 @@ resource "azurerm_application_gateway" "test" {
     http_listener_name         = local.listener_name
     backend_address_pool_name  = local.backend_address_pool_name
     backend_http_settings_name = local.http_setting_name
+    priority                   = 10
   }
 }
 `, r.template(data), data.RandomInteger)
@@ -6234,8 +6355,8 @@ resource "azurerm_public_ip" "test" {
   name                = "acctest-pubip-%d"
   location            = azurerm_resource_group.test.location
   resource_group_name = azurerm_resource_group.test.name
-  allocation_method   = "Dynamic"
-  sku                 = "Basic"
+  allocation_method   = "Static"
+  sku                 = "Standard"
 }
 `, data.RandomInteger, data.Locations.Primary, data.RandomInteger, data.RandomInteger, data.RandomInteger)
 }
@@ -6262,8 +6383,8 @@ resource "azurerm_application_gateway" "test" {
   location            = azurerm_resource_group.test.location
 
   sku {
-    name     = "Standard_Small"
-    tier     = "Standard"
+    name     = "Standard_v2"
+    tier     = "Standard_v2"
     capacity = 2
   }
 
@@ -6327,6 +6448,7 @@ resource "azurerm_application_gateway" "test" {
     http_listener_name         = local.listener_name
     backend_address_pool_name  = local.backend_address_pool_name
     backend_http_settings_name = local.http_setting_name
+    priority                   = 10
   }
 }
 `, r.template(data), data.RandomInteger)
@@ -6904,8 +7026,8 @@ resource "azurerm_application_gateway" "test" {
   location            = azurerm_resource_group.test.location
 
   sku {
-    name     = "Standard_Small"
-    tier     = "Standard"
+    name     = "Standard_v2"
+    tier     = "Standard_v2"
     capacity = 2
   }
 
@@ -6950,6 +7072,7 @@ resource "azurerm_application_gateway" "test" {
     http_listener_name         = local.listener_name
     backend_address_pool_name  = local.backend_address_pool_name
     backend_http_settings_name = local.http_setting_name
+    priority                   = 10
   }
 }
 `, r.template(data), data.RandomInteger)
@@ -6975,8 +7098,8 @@ resource "azurerm_application_gateway" "test" {
   location            = azurerm_resource_group.test.location
 
   sku {
-    name     = "Standard_Small"
-    tier     = "Standard"
+    name     = "Standard_v2"
+    tier     = "Standard_v2"
     capacity = 2
   }
 
@@ -7020,6 +7143,7 @@ resource "azurerm_application_gateway" "test" {
     http_listener_name         = local.listener_name
     backend_address_pool_name  = local.backend_address_pool_name
     backend_http_settings_name = local.http_setting_name
+    priority                   = 10
   }
 }
 `, r.template(data), data.RandomInteger)
@@ -7052,8 +7176,8 @@ resource "azurerm_application_gateway" "test" {
   location            = azurerm_resource_group.test.location
 
   sku {
-    name     = "Standard_Small"
-    tier     = "Standard"
+    name     = "Standard_v2"
+    tier     = "Standard_v2"
     capacity = 2
   }
 
@@ -7097,6 +7221,7 @@ resource "azurerm_application_gateway" "test" {
     http_listener_name         = local.listener_name
     backend_address_pool_name  = local.backend_address_pool_name
     backend_http_settings_name = local.http_setting_name
+    priority                   = 10
   }
 }
 `, r.template(data), data.RandomInteger, data.RandomInteger)
@@ -7209,8 +7334,8 @@ resource "azurerm_application_gateway" "test" {
   location            = azurerm_resource_group.test.location
 
   sku {
-    name     = "Standard_Small"
-    tier     = "Standard"
+    name     = "Standard_v2"
+    tier     = "Standard_v2"
     capacity = 2
   }
 
@@ -7265,6 +7390,7 @@ resource "azurerm_application_gateway" "test" {
     rule_type          = "PathBasedRouting"
     url_path_map_name  = local.url_path_map_name
     http_listener_name = local.listener_name
+    priority           = 10
   }
 
   url_path_map {
@@ -7330,8 +7456,8 @@ resource "azurerm_application_gateway" "test" {
   location            = azurerm_resource_group.test.location
 
   sku {
-    name     = "Standard_Small"
-    tier     = "Standard"
+    name     = "Standard_v2"
+    tier     = "Standard_v2"
     capacity = 2
   }
 
@@ -7376,6 +7502,7 @@ resource "azurerm_application_gateway" "test" {
     http_listener_name         = local.listener_name
     backend_address_pool_name  = local.backend_address_pool_name
     backend_http_settings_name = local.http_setting_name
+    priority                   = 10
   }
 }
 `, r.template(data), data.RandomInteger)
@@ -8125,8 +8252,8 @@ resource "azurerm_application_gateway" "test" {
   fips_enabled        = %t
 
   sku {
-    name     = "Standard_Small"
-    tier     = "Standard"
+    name     = "Standard_v2"
+    tier     = "Standard_v2"
     capacity = 2
   }
 
@@ -8170,6 +8297,7 @@ resource "azurerm_application_gateway" "test" {
     http_listener_name         = local.listener_name
     backend_address_pool_name  = local.backend_address_pool_name
     backend_http_settings_name = local.http_setting_name
+    priority                   = 10
   }
 }
 `, r.template(data), data.RandomInteger, enableFips)
@@ -8196,8 +8324,8 @@ resource "azurerm_application_gateway" "test" {
   location            = azurerm_resource_group.test.location
 
   sku {
-    name     = "Standard_Small"
-    tier     = "Standard"
+    name     = "Standard_v2"
+    tier     = "Standard_v2"
     capacity = 2
   }
 
@@ -8248,6 +8376,7 @@ resource "azurerm_application_gateway" "test" {
     http_listener_name         = local.listener_name
     backend_address_pool_name  = local.backend_address_pool_name
     backend_http_settings_name = local.http_setting_name
+    priority                   = 10
   }
 }
 `, r.template(data), data.RandomInteger)
@@ -8274,8 +8403,8 @@ resource "azurerm_application_gateway" "test" {
   location            = azurerm_resource_group.test.location
 
   sku {
-    name     = "Standard_Small"
-    tier     = "Standard"
+    name     = "Standard_v2"
+    tier     = "Standard_v2"
     capacity = 2
   }
 
@@ -8321,6 +8450,7 @@ resource "azurerm_application_gateway" "test" {
     http_listener_name         = local.listener_name
     backend_address_pool_name  = local.backend_address_pool_name
     backend_http_settings_name = local.http_setting_name
+    priority                   = 10
   }
 }
 `, r.template(data), data.RandomInteger)
@@ -8346,8 +8476,8 @@ resource "azurerm_application_gateway" "test" {
   location            = azurerm_resource_group.test.location
 
   sku {
-    name     = "Standard_Small"
-    tier     = "Standard"
+    name     = "Standard_v2"
+    tier     = "Standard_v2"
     capacity = 2
   }
 
@@ -8390,6 +8520,7 @@ resource "azurerm_application_gateway" "test" {
     http_listener_name         = local.listener_name
     backend_address_pool_name  = local.backend_address_pool_name
     backend_http_settings_name = local.http_setting_name
+    priority                   = 10
   }
 }
 `, r.template(data), data.RandomInteger)
diff --git a/website/docs/r/application_gateway.html.markdown b/website/docs/r/application_gateway.html.markdown
index 4a28c064cb07..d6505ea9b701 100644
--- a/website/docs/r/application_gateway.html.markdown
+++ b/website/docs/r/application_gateway.html.markdown
@@ -184,7 +184,7 @@ The following arguments are supported:
 
 * `autoscale_configuration` - (Optional) An `autoscale_configuration` block as defined below.
 
-* `rewrite_rule_set` - (Optional) One or more `rewrite_rule_set` blocks as defined below. Only valid for v2 SKUs.
+* `rewrite_rule_set` - (Optional) One or more `rewrite_rule_set` blocks as defined below. Only valid for v2 WAF and Standard SKUs.
 
 ---
 
@@ -402,7 +402,7 @@ A `probe` block supports the following:
 
 * `unhealthy_threshold` - (Required) The Unhealthy Threshold for this Probe, which indicates the amount of retries which should be attempted before a node is deemed unhealthy. Possible values are from 1 to 20.
 
-* `port` - (Optional) Custom port which will be used for probing the backend servers. The valid value ranges from 1 to 65535. In case not set, port from HTTP settings will be used. This property is valid for Standard_v2 and WAF_v2 only.
+* `port` - (Optional) Custom port which will be used for probing the backend servers. The valid value ranges from 1 to 65535. In case not set, port from HTTP settings will be used. This property is valid for Basic, Standard_v2 and WAF_v2 only.
 
 * `pick_host_name_from_backend_http_settings` - (Optional) Whether the host header should be picked from the backend HTTP settings. Defaults to `false`.
 
@@ -448,13 +448,13 @@ A `global` block supports the following:
 
 A `sku` block supports the following:
 
-* `name` - (Required) The Name of the SKU to use for this Application Gateway. Possible values are `Standard_Small`, `Standard_Medium`, `Standard_Large`, `Standard_v2`, `WAF_Medium`, `WAF_Large`, and `WAF_v2`.
+* `name` - (Required) The Name of the SKU to use for this Application Gateway. Possible values are `Basic`, `Standard_Small`, `Standard_Medium`, `Standard_Large`, `Basic`, `Standard_v2`, `WAF_Medium`, `WAF_Large`, and `WAF_v2`.
 
-* `tier` - (Required) The Tier of the SKU to use for this Application Gateway. Possible values are `Standard`, `Standard_v2`, `WAF` and `WAF_v2`.
+* `tier` - (Required) The Tier of the SKU to use for this Application Gateway. Possible values are `Basic`, `Standard`, `Standard_v2`, `WAF` and `WAF_v2`.
 
-!> **NOTE:** The `Standard` and `WAF` SKU have been deprecated in favour of the `Standard_v2` and `WAF_v2` SKU. Please see the [Azure documentation](https://aka.ms/V1retirement) for more details.
+!> **NOTE:** The `Standard` and `WAF` SKU have been deprecated in favour of the `Basic`, `Standard_v2` and `WAF_v2` SKU. Please see the [Azure documentation](https://aka.ms/V1retirement) for more details.
 
-* `capacity` - (Optional) The Capacity of the SKU to use for this Application Gateway. When using a V1 SKU this value must be between `1` and `32`, and `1` to `125` for a V2 SKU. This property is optional if `autoscale_configuration` is set.
+* `capacity` - (Optional) The Capacity of the SKU to use for this Application Gateway. When using a V1 SKU this value must be between `1` and `32`, and `1` to `125` for a V2 SKU. When using a `Basic` SKU this property must be between `1` and `2`. This property is optional if `autoscale_configuration` is set.
 
 ---