diff --git a/examples/managed-application/application-with-parameters/main.tf b/examples/managed-application/application-with-parameters/main.tf
deleted file mode 100644
index da44d9770301..000000000000
--- a/examples/managed-application/application-with-parameters/main.tf
+++ /dev/null
@@ -1,101 +0,0 @@
-# Copyright (c) HashiCorp, Inc.
-# SPDX-License-Identifier: MPL-2.0
-
-provider "azurerm" {
-  features {}
-}
-
-data "azurerm_client_config" "current" {}
-
-data "azurerm_role_definition" "builtin" {
-  name = "Contributor"
-}
-
-resource "azurerm_resource_group" "example" {
-  name     = "${var.prefix}-resources"
-  location = var.location
-}
-
-resource "azurerm_managed_application_definition" "example" {
-  name                = "${var.prefix}managedappdef"
-  location            = azurerm_resource_group.example.location
-  resource_group_name = azurerm_resource_group.example.name
-  lock_level          = "ReadOnly"
-  display_name        = "ExampleManagedAppDefinition"
-  description         = "Example Managed App Definition"
-  package_enabled     = true
-
-  create_ui_definition = <<CREATE_UI_DEFINITION
-    {
-      "$schema": "https://schema.management.azure.com/schemas/0.1.2-preview/CreateUIDefinition.MultiVm.json#",
-      "handler": "Microsoft.Azure.CreateUIDef",
-      "version": "0.1.2-preview",
-      "parameters": {
-         "basics": [],
-         "steps": [],
-         "outputs": {}
-      }
-    }
-  CREATE_UI_DEFINITION
-
-  main_template = <<MAIN_TEMPLATE
-    {
-      "$schema": "https://schema.management.azure.com/schemas/2015-01-01/deploymentTemplate.json#",
-      "contentVersion": "1.0.0.0",
-      "parameters": {
-         "stringParameter": {
-            "type": "string"
-         },
-         "secureStringParameter": {
-            "type": "secureString"
-         }
-      },
-      "variables": {},
-      "resources": [],
-      "outputs": {
-        "boolOutput": {
-          "type": "bool",
-          "value": true
-        },
-        "intOutput": {
-          "type": "int",
-          "value": 100
-        },
-        "stringOutput": {
-          "type": "string",
-          "value": "stringOutputValue"
-        },
-        "objectOutput": {
-          "type": "object",
-          "value": {
-            "nested_bool": true,
-            "nested_array": ["value_1", "value_2"],
-            "nested_object": {
-              "key_0": 0
-            }
-          }
-        }
-      }
-    }
-  MAIN_TEMPLATE
-
-  authorization {
-    service_principal_id = data.azurerm_client_config.current.object_id
-    role_definition_id   = split("/", data.azurerm_role_definition.builtin.id)[length(split("/", data.azurerm_role_definition.builtin.id)) - 1]
-  }
-}
-
-
-resource "azurerm_managed_application" "test" {
-  name                        = "${var.prefix}managedapp"
-  location                    = azurerm_resource_group.example.location
-  resource_group_name         = azurerm_resource_group.example.name
-  kind                        = "ServiceCatalog"
-  managed_resource_group_name = "${var.prefix}infraGroup"
-  application_definition_id   = azurerm_managed_application_definition.example.id
-
-  parameters = {
-    stringParameter       = "value_1"
-    secureStringParameter = "secure_value_1"
-  }
-}
diff --git a/examples/managed-application/application-with-parameters/variables.tf b/examples/managed-application/application-with-parameters/variables.tf
deleted file mode 100644
index 4871f3553dbd..000000000000
--- a/examples/managed-application/application-with-parameters/variables.tf
+++ /dev/null
@@ -1,10 +0,0 @@
-# Copyright (c) HashiCorp, Inc.
-# SPDX-License-Identifier: MPL-2.0
-
-variable "location" {
-  description = "The Azure location where all resources in this example should be created."
-}
-
-variable "prefix" {
-  description = "The prefix used for all resources used by this Managed Application Definition"
-}
diff --git a/internal/services/managedapplications/managed_application_resource.go b/internal/services/managedapplications/managed_application_resource.go
index 24b8041ea5be..59e4a4c75088 100644
--- a/internal/services/managedapplications/managed_application_resource.go
+++ b/internal/services/managedapplications/managed_application_resource.go
@@ -20,6 +20,7 @@ import (
 	"github.com/hashicorp/go-azure-sdk/resource-manager/managedapplications/2021-07-01/applications"
 	"github.com/hashicorp/terraform-provider-azurerm/helpers/tf"
 	"github.com/hashicorp/terraform-provider-azurerm/internal/clients"
+	"github.com/hashicorp/terraform-provider-azurerm/internal/features"
 	"github.com/hashicorp/terraform-provider-azurerm/internal/services/managedapplications/validate"
 	resourcesParse "github.com/hashicorp/terraform-provider-azurerm/internal/services/resource/parse"
 	"github.com/hashicorp/terraform-provider-azurerm/internal/tf/pluginsdk"
@@ -46,107 +47,121 @@ func resourceManagedApplication() *pluginsdk.Resource {
 			Delete: pluginsdk.DefaultTimeout(30 * time.Minute),
 		},
 
-		Schema: map[string]*pluginsdk.Schema{
-			"name": {
-				Type:         pluginsdk.TypeString,
-				Required:     true,
-				ForceNew:     true,
-				ValidateFunc: validate.ApplicationName,
-			},
+		Schema: resourceManagedApplicationSchema(),
+	}
+}
 
-			"resource_group_name": commonschema.ResourceGroupName(),
+func resourceManagedApplicationSchema() map[string]*pluginsdk.Schema {
+	schema := map[string]*pluginsdk.Schema{
+		"name": {
+			Type:         pluginsdk.TypeString,
+			Required:     true,
+			ForceNew:     true,
+			ValidateFunc: validate.ApplicationName,
+		},
 
-			"location": commonschema.Location(),
+		"resource_group_name": commonschema.ResourceGroupName(),
 
-			"kind": {
-				Type:     pluginsdk.TypeString,
-				Required: true,
-				ForceNew: true,
-				ValidateFunc: validation.StringInSlice([]string{
-					"MarketPlace",
-					"ServiceCatalog",
-				}, false),
-			},
+		"location": commonschema.Location(),
 
-			"managed_resource_group_name": commonschema.ResourceGroupName(),
+		"kind": {
+			Type:     pluginsdk.TypeString,
+			Required: true,
+			ForceNew: true,
+			ValidateFunc: validation.StringInSlice([]string{
+				"MarketPlace",
+				"ServiceCatalog",
+			}, false),
+		},
 
-			"application_definition_id": {
-				Type:         pluginsdk.TypeString,
-				Optional:     true,
-				ValidateFunc: applicationdefinitions.ValidateApplicationDefinitionID,
-			},
+		"managed_resource_group_name": commonschema.ResourceGroupName(),
 
-			"parameters": {
-				Type:          pluginsdk.TypeMap,
-				Optional:      true,
-				Computed:      true,
-				ConflictsWith: []string{"parameter_values"},
-				Elem: &pluginsdk.Schema{
-					Type: pluginsdk.TypeString,
-				},
-			},
+		"application_definition_id": {
+			Type:         pluginsdk.TypeString,
+			Optional:     true,
+			ValidateFunc: applicationdefinitions.ValidateApplicationDefinitionID,
+		},
 
-			"parameter_values": {
-				Type:             pluginsdk.TypeString,
-				Optional:         true,
-				Computed:         true,
-				ValidateFunc:     validation.StringIsJSON,
-				DiffSuppressFunc: pluginsdk.SuppressJsonDiff,
-				ConflictsWith:    []string{"parameters"},
-			},
+		"parameter_values": {
+			Type:             pluginsdk.TypeString,
+			Optional:         true,
+			Computed:         true,
+			ValidateFunc:     validation.StringIsJSON,
+			DiffSuppressFunc: pluginsdk.SuppressJsonDiff,
+			ConflictsWith: func() []string {
+				if !features.FourPointOhBeta() {
+					return []string{"parameters"}
+				}
+				return []string{}
+			}(),
+		},
 
-			"plan": {
-				Type:     pluginsdk.TypeList,
-				Optional: true,
-				ForceNew: true,
-				MaxItems: 1,
-				Elem: &pluginsdk.Resource{
-					Schema: map[string]*pluginsdk.Schema{
-						"name": {
-							Type:         pluginsdk.TypeString,
-							Required:     true,
-							ForceNew:     true,
-							ValidateFunc: validation.StringIsNotEmpty,
-						},
-						"product": {
-							Type:         pluginsdk.TypeString,
-							Required:     true,
-							ForceNew:     true,
-							ValidateFunc: validation.StringIsNotEmpty,
-						},
-						"publisher": {
-							Type:         pluginsdk.TypeString,
-							Required:     true,
-							ForceNew:     true,
-							ValidateFunc: validation.StringIsNotEmpty,
-						},
-						"version": {
-							Type:         pluginsdk.TypeString,
-							Required:     true,
-							ForceNew:     true,
-							ValidateFunc: validation.StringIsNotEmpty,
-						},
-						"promotion_code": {
-							Type:         pluginsdk.TypeString,
-							Optional:     true,
-							ForceNew:     true,
-							ValidateFunc: validation.StringIsNotEmpty,
-						},
+		"plan": {
+			Type:     pluginsdk.TypeList,
+			Optional: true,
+			ForceNew: true,
+			MaxItems: 1,
+			Elem: &pluginsdk.Resource{
+				Schema: map[string]*pluginsdk.Schema{
+					"name": {
+						Type:         pluginsdk.TypeString,
+						Required:     true,
+						ForceNew:     true,
+						ValidateFunc: validation.StringIsNotEmpty,
+					},
+					"product": {
+						Type:         pluginsdk.TypeString,
+						Required:     true,
+						ForceNew:     true,
+						ValidateFunc: validation.StringIsNotEmpty,
+					},
+					"publisher": {
+						Type:         pluginsdk.TypeString,
+						Required:     true,
+						ForceNew:     true,
+						ValidateFunc: validation.StringIsNotEmpty,
+					},
+					"version": {
+						Type:         pluginsdk.TypeString,
+						Required:     true,
+						ForceNew:     true,
+						ValidateFunc: validation.StringIsNotEmpty,
+					},
+					"promotion_code": {
+						Type:         pluginsdk.TypeString,
+						Optional:     true,
+						ForceNew:     true,
+						ValidateFunc: validation.StringIsNotEmpty,
 					},
 				},
 			},
+		},
 
-			"tags": commonschema.Tags(),
+		"tags": commonschema.Tags(),
 
-			"outputs": {
-				Type:     pluginsdk.TypeMap,
-				Computed: true,
-				Elem: &pluginsdk.Schema{
-					Type: pluginsdk.TypeString,
-				},
+		"outputs": {
+			Type:     pluginsdk.TypeMap,
+			Computed: true,
+			Elem: &pluginsdk.Schema{
+				Type: pluginsdk.TypeString,
 			},
 		},
 	}
+
+	if !features.FourPointOhBeta() {
+		schema["parameters"] = &pluginsdk.Schema{
+			Type:          pluginsdk.TypeMap,
+			Optional:      true,
+			Computed:      true,
+			ConflictsWith: []string{"parameter_values"},
+			Deprecated:    "This property has been deprecated in favour of `parameter_values`",
+			Elem: &pluginsdk.Schema{
+				Type: pluginsdk.TypeString,
+			},
+		}
+	}
+
+	return schema
 }
 
 func resourceManagedApplicationCreateUpdate(d *pluginsdk.ResourceData, meta interface{}) error {
@@ -192,7 +207,10 @@ func resourceManagedApplicationCreateUpdate(d *pluginsdk.ResourceData, meta inte
 
 	params, err := expandManagedApplicationParameters(d)
 	if err != nil {
-		return fmt.Errorf("expanding `parameters` or `parameter_values`: %+v", err)
+		if !features.FourPointOhBeta() {
+			return fmt.Errorf("expanding `parameters` or `parameter_values`: %+v", err)
+		}
+		return fmt.Errorf("expanding `parameter_values`: %+v", err)
 	}
 	parameters.Properties.Parameters = pointer.To(interface{}(params))
 
@@ -248,7 +266,10 @@ func resourceManagedApplicationRead(d *pluginsdk.ResourceData, meta interface{})
 
 		expendedParams, err := expandManagedApplicationParameters(d)
 		if err != nil {
-			return fmt.Errorf("expanding `parameters` or `parameter_values`: %+v", err)
+			if !features.FourPointOhBeta() {
+				return fmt.Errorf("expanding `parameters` or `parameter_values`: %+v", err)
+			}
+			return fmt.Errorf("expanding `parameter_values`: %+v", err)
 		}
 
 		parameterValues, err := flattenManagedApplicationParameterValuesValueToString(p.Parameters, *expendedParams)
@@ -257,12 +278,14 @@ func resourceManagedApplicationRead(d *pluginsdk.ResourceData, meta interface{})
 		}
 		d.Set("parameter_values", parameterValues)
 
-		parameters, err := flattenManagedApplicationParameters(p.Parameters, *expendedParams)
-		if err != nil {
-			return err
-		}
-		if err = d.Set("parameters", parameters); err != nil {
-			return err
+		if !features.FourPointOhBeta() {
+			parameters, err := flattenManagedApplicationParameters(p.Parameters, *expendedParams)
+			if err != nil {
+				return err
+			}
+			if err = d.Set("parameters", parameters); err != nil {
+				return err
+			}
 		}
 
 		outputs, err := flattenManagedApplicationOutputs(p.Outputs)
@@ -322,15 +345,17 @@ func expandManagedApplicationParameters(d *pluginsdk.ResourceData) (*map[string]
 		}
 	}
 
-	// `parameters` will be available in state as well after first apply when `parameter_values` is used, so getting its value only during creation or when it is changed
-	if d.IsNewResource() || d.HasChange("parameters") {
-		if v, ok := d.GetOk("parameters"); ok {
-			params := v.(map[string]interface{})
+	if !features.FourPointOhBeta() {
+		// `parameters` will be available in state as well after first apply when `parameter_values` is used, so getting its value only during creation or when it is changed
+		if d.IsNewResource() || d.HasChange("parameters") {
+			if v, ok := d.GetOk("parameters"); ok {
+				params := v.(map[string]interface{})
 
-			for key, val := range params {
-				newParamValue := make(map[string]interface{}, 1)
-				newParamValue["value"] = val
-				newParams[key] = newParamValue
+				for key, val := range params {
+					newParamValue := make(map[string]interface{}, 1)
+					newParamValue["value"] = val
+					newParams[key] = newParamValue
+				}
 			}
 		}
 	}
diff --git a/internal/services/managedapplications/managed_application_resource_test.go b/internal/services/managedapplications/managed_application_resource_test.go
index d6871404f175..10a90ef369c1 100644
--- a/internal/services/managedapplications/managed_application_resource_test.go
+++ b/internal/services/managedapplications/managed_application_resource_test.go
@@ -16,6 +16,7 @@ import (
 	"github.com/hashicorp/terraform-provider-azurerm/internal/acceptance"
 	"github.com/hashicorp/terraform-provider-azurerm/internal/acceptance/check"
 	"github.com/hashicorp/terraform-provider-azurerm/internal/clients"
+	"github.com/hashicorp/terraform-provider-azurerm/internal/features"
 	"github.com/hashicorp/terraform-provider-azurerm/internal/tf/pluginsdk"
 )
 
@@ -56,6 +57,10 @@ func TestAccManagedApplication_requiresImport(t *testing.T) {
 }
 
 func TestAccManagedApplication_switchBetweenParametersAndParameterValues(t *testing.T) {
+	if features.FourPointOhBeta() {
+		t.Skipf("skipping bacause `parameters` is deprecated in 4.0")
+	}
+
 	data := acceptance.BuildTestData(t, "azurerm_managed_application", "test")
 	r := ManagedApplicationResource{}
 
@@ -68,7 +73,7 @@ func TestAccManagedApplication_switchBetweenParametersAndParameterValues(t *test
 		},
 		data.ImportStep(),
 		{
-			Config: r.parameterValues(data),
+			Config: r.parameters(data),
 			Check: acceptance.ComposeTestCheckFunc(
 				check.That(data.ResourceName).ExistsInAzure(r),
 			),
@@ -85,19 +90,23 @@ func TestAccManagedApplication_switchBetweenParametersAndParameterValues(t *test
 }
 
 func TestAccManagedApplication_parameters(t *testing.T) {
+	if features.FourPointOhBeta() {
+		t.Skipf("skipping as `parameters` is deprecated in 4.0")
+	}
+
 	data := acceptance.BuildTestData(t, "azurerm_managed_application", "test")
 	r := ManagedApplicationResource{}
 
 	data.ResourceTest(t, r, []acceptance.TestStep{
 		{
-			Config: r.basic(data),
+			Config: r.parameters(data),
 			Check: acceptance.ComposeTestCheckFunc(
 				check.That(data.ResourceName).ExistsInAzure(r),
 			),
 		},
 		data.ImportStep(),
 		{
-			Config: r.basicWithParametersUpdated(data),
+			Config: r.parametersUpdated(data),
 			Check: acceptance.ComposeTestCheckFunc(
 				check.That(data.ResourceName).ExistsInAzure(r),
 			),
@@ -112,14 +121,14 @@ func TestAccManagedApplication_parameterValues(t *testing.T) {
 
 	data.ResourceTest(t, r, []acceptance.TestStep{
 		{
-			Config: r.parameterValues(data),
+			Config: r.basic(data),
 			Check: acceptance.ComposeTestCheckFunc(
 				check.That(data.ResourceName).ExistsInAzure(r),
 			),
 		},
 		data.ImportStep(),
 		{
-			Config: r.parameterValuesUpdated(data),
+			Config: r.basicWithParameterValuesUpdated(data),
 			Check: acceptance.ComposeTestCheckFunc(
 				check.That(data.ResourceName).ExistsInAzure(r),
 			),
@@ -144,6 +153,10 @@ func TestAccManagedApplication_allSupportedParameterValuesTypes(t *testing.T) {
 }
 
 func TestAccManagedApplication_parametersSecureString(t *testing.T) {
+	if features.FourPointOhBeta() {
+		t.Skipf("skipping bacause `parameters` is deprecated in 4.0")
+	}
+
 	data := acceptance.BuildTestData(t, "azurerm_managed_application", "test")
 	r := ManagedApplicationResource{}
 
@@ -233,7 +246,7 @@ func (ManagedApplicationResource) Exists(ctx context.Context, clients *clients.C
 	return pointer.To(resp.Model != nil), nil
 }
 
-func (r ManagedApplicationResource) basic(data acceptance.TestData) string {
+func (r ManagedApplicationResource) parameters(data acceptance.TestData) string {
 	return fmt.Sprintf(`
 %[1]s
 
@@ -253,7 +266,7 @@ resource "azurerm_managed_application" "test" {
 `, r.templateStringParameter(data), data.RandomInteger)
 }
 
-func (r ManagedApplicationResource) basicWithParametersUpdated(data acceptance.TestData) string {
+func (r ManagedApplicationResource) parametersUpdated(data acceptance.TestData) string {
 	return fmt.Sprintf(`
 %[1]s
 
@@ -318,24 +331,46 @@ resource "azurerm_managed_application" "test" {
     version   = "15.37.1"
   }
 
-  parameters = {
-    zone                        = "0"
-    location                    = azurerm_resource_group.test.location
-    merakiAuthToken             = "f451adfb-d00b-4612-8799-b29294217d4a"
-    subnetAddressPrefix         = "10.0.0.0/24"
-    subnetName                  = "acctestSubnet"
-    virtualMachineSize          = "Standard_DS12_v2"
-    virtualNetworkAddressPrefix = "10.0.0.0/16"
-    virtualNetworkName          = "acctestVnet"
-    virtualNetworkNewOrExisting = "new"
-    virtualNetworkResourceGroup = "acctestVnetRg"
-    vmName                      = "acctestVM"
-  }
+  parameter_values = jsonencode({
+    zone = {
+      value = "0"
+    },
+    location = {
+      value = azurerm_resource_group.test.location
+    },
+    merakiAuthToken = {
+      value = "f451adfb-d00b-4612-8799-b29294217d4a"
+    },
+    subnetAddressPrefix = {
+      value = "10.0.0.0/24"
+    },
+    subnetName = {
+      value = "acctestSubnet"
+    },
+    virtualMachineSize = {
+      value = "Standard_DS12_v2"
+    },
+    virtualNetworkAddressPrefix = {
+      value = "10.0.0.0/16"
+    },
+    virtualNetworkName = {
+      value = "acctestVnet"
+    },
+    virtualNetworkNewOrExisting = {
+      value = "new"
+    },
+    virtualNetworkResourceGroup = {
+      value = "acctestVnetRg"
+    },
+    vmName = {
+      value = "acctestVM"
+    }
+  })
 }
 `, data.Locations.Primary, data.RandomInteger, publisher, offer, plan)
 }
 
-func (r ManagedApplicationResource) parameterValues(data acceptance.TestData) string {
+func (r ManagedApplicationResource) basic(data acceptance.TestData) string {
 	return fmt.Sprintf(`
 %[1]s
 
@@ -359,7 +394,7 @@ resource "azurerm_managed_application" "test" {
 `, r.templateStringParameter(data), data.RandomInteger)
 }
 
-func (r ManagedApplicationResource) parameterValuesUpdated(data acceptance.TestData) string {
+func (r ManagedApplicationResource) basicWithParameterValuesUpdated(data acceptance.TestData) string {
 	return fmt.Sprintf(`
 %[1]s
 
@@ -493,10 +528,14 @@ resource "azurerm_managed_application" "test" {
   managed_resource_group_name = "infraGroup%[2]d"
   application_definition_id   = azurerm_managed_application_definition.test.id
 
-  parameters = {
-    stringParameter       = "value_1"
-    secureStringParameter = ""
-  }
+  parameter_values = jsonencode({
+    stringParameter = {
+      value = "value_1_from_parameter_values"
+    },
+    secureStringParameter = {
+      value = ""
+    }
+  })
 
   tags = {
     ENV = "Test"
@@ -517,10 +556,14 @@ resource "azurerm_managed_application" "test" {
   managed_resource_group_name = "infraGroup%[2]d"
   application_definition_id   = azurerm_managed_application_definition.test.id
 
-  parameters = {
-    stringParameter       = "value_1"
-    secureStringParameter = ""
-  }
+  parameter_values = jsonencode({
+    stringParameter = {
+      value = "value_1_from_parameter_values"
+    },
+    secureStringParameter = {
+      value = ""
+    }
+  })
 
   tags = {
     ENV = "Test2"
diff --git a/website/docs/r/managed_application.html.markdown b/website/docs/r/managed_application.html.markdown
index eea733038922..c1c92f43621d 100644
--- a/website/docs/r/managed_application.html.markdown
+++ b/website/docs/r/managed_application.html.markdown
@@ -51,11 +51,17 @@ resource "azurerm_managed_application" "example" {
   managed_resource_group_name = "infrastructureGroup"
   application_definition_id   = azurerm_managed_application_definition.example.id
 
-  parameters = {
-    location                 = azurerm_resource_group.example.location
-    storageAccountNamePrefix = "storeNamePrefix"
-    storageAccountType       = "Standard_LRS"
-  }
+  parameter_values = jsonencode({
+    location = {
+      value = azurerm_resource_group.example.location
+    },
+    storageAccountNamePrefix = {
+      value = "storeNamePrefix"
+    },
+    storageAccountType = {
+      value = "Standard_LRS"
+    }
+  })
 }
 ```
 
@@ -77,7 +83,7 @@ The following arguments are supported:
 
 * `parameters` - (Optional) A mapping of name and value pairs to pass to the managed application as parameters.
 
-~> **NOTE:** `parameters` only supports values with `string` or `secureString` type. If the template has other parameter types, please use `parameter_values` instead.
+~> **NOTE:** `parameters` only supports values with `string` or `secureString` type and will be deprecated in 4.0, please use `parameter_values` instead which supports more parameter types.
 
 * `parameter_values` - (Optional) The parameter values to pass to the Managed Application. This field is a JSON object that allows you to assign parameters to this Managed Application.