diff --git a/internal/services/loganalytics/log_analytics_workspace_resource.go b/internal/services/loganalytics/log_analytics_workspace_resource.go
index fbdc1e0df18c..0a5a505809f0 100644
--- a/internal/services/loganalytics/log_analytics_workspace_resource.go
+++ b/internal/services/loganalytics/log_analytics_workspace_resource.go
@@ -38,10 +38,11 @@ func resourceLogAnalyticsWorkspace() *pluginsdk.Resource {
 			return err
 		}),
 
-		SchemaVersion: 2,
+		SchemaVersion: 3,
 		StateUpgraders: pluginsdk.StateUpgrades(map[int]pluginsdk.StateUpgrade{
 			0: migration.WorkspaceV0ToV1{},
 			1: migration.WorkspaceV1ToV2{},
+			2: migration.WorkspaceV2ToV3{},
 		}),
 
 		Timeouts: &pluginsdk.ResourceTimeout{
diff --git a/internal/services/loganalytics/migration/workspace_v2_to_v3.go b/internal/services/loganalytics/migration/workspace_v2_to_v3.go
new file mode 100644
index 000000000000..18984d3655a6
--- /dev/null
+++ b/internal/services/loganalytics/migration/workspace_v2_to_v3.go
@@ -0,0 +1,119 @@
+package migration
+
+import (
+	"context"
+	"log"
+
+	"github.com/hashicorp/go-azure-sdk/resource-manager/operationalinsights/2020-08-01/workspaces"
+	"github.com/hashicorp/terraform-provider-azurerm/internal/tf/pluginsdk"
+)
+
+var _ pluginsdk.StateUpgrade = WorkspaceV2ToV3{}
+
+type WorkspaceV2ToV3 struct{}
+
+func (WorkspaceV2ToV3) Schema() map[string]*pluginsdk.Schema {
+	return map[string]*pluginsdk.Schema{
+		"allow_resource_only_permissions": {
+			Optional: true,
+			Type:     pluginsdk.TypeBool,
+		},
+
+		"cmk_for_query_forced": {
+			Optional: true,
+			Type:     pluginsdk.TypeBool,
+		},
+
+		"daily_quota_gb": {
+			Optional: true,
+			Type:     pluginsdk.TypeFloat,
+		},
+
+		"internet_ingestion_enabled": {
+			Optional: true,
+			Type:     pluginsdk.TypeBool,
+		},
+
+		"internet_query_enabled": {
+			Optional: true,
+			Type:     pluginsdk.TypeBool,
+		},
+
+		"local_authentication_disabled": {
+			Optional: true,
+			Type:     pluginsdk.TypeBool,
+		},
+
+		"location": {
+			ForceNew: true,
+			Required: true,
+			Type:     pluginsdk.TypeString,
+		},
+
+		"name": {
+			ForceNew: true,
+			Required: true,
+			Type:     pluginsdk.TypeString,
+		},
+
+		"primary_shared_key": {
+			Computed: true,
+			Type:     pluginsdk.TypeString,
+		},
+
+		"reservation_capacity_in_gb_per_day": {
+			Computed: true,
+			Optional: true,
+			Type:     pluginsdk.TypeInt,
+		},
+
+		"resource_group_name": {
+			ForceNew: true,
+			Required: true,
+			Type:     pluginsdk.TypeString,
+		},
+
+		"retention_in_days": {
+			Computed: true,
+			Optional: true,
+			Type:     pluginsdk.TypeInt,
+		},
+
+		"secondary_shared_key": {
+			Computed: true,
+			Type:     pluginsdk.TypeString,
+		},
+
+		"sku": {
+			Computed: true,
+			Optional: true,
+			Type:     pluginsdk.TypeString,
+		},
+
+		"tags": {
+			Elem:     &pluginsdk.Schema{Type: pluginsdk.TypeString},
+			Optional: true,
+			Type:     pluginsdk.TypeMap,
+		},
+
+		"workspace_id": {
+			Computed: true,
+			Type:     pluginsdk.TypeString,
+		},
+	}
+}
+
+func (WorkspaceV2ToV3) UpgradeFunc() pluginsdk.StateUpgraderFunc {
+	return func(ctx context.Context, rawState map[string]interface{}, meta interface{}) (map[string]interface{}, error) {
+		oldId := rawState["id"].(string)
+		newId, err := workspaces.ParseWorkspaceIDInsensitively(oldId)
+		if err != nil {
+			return nil, err
+		}
+
+		log.Printf("[DEBUG] Updating ID from %q to %q", oldId, newId)
+
+		rawState["id"] = newId.ID()
+		return rawState, nil
+	}
+}