diff --git a/internal/services/mssql/mssql_database_resource.go b/internal/services/mssql/mssql_database_resource.go
index 8f93af652b5a..f21eb138f4ca 100644
--- a/internal/services/mssql/mssql_database_resource.go
+++ b/internal/services/mssql/mssql_database_resource.go
@@ -179,6 +179,8 @@ func resourceMsSqlDatabaseCreateUpdate(d *pluginsdk.ResourceData, meta interface
 		}
 	}
 
+	ledgerEnabled := d.Get("ledger_enabled").(bool)
+
 	// When databases are replicating, the primary cannot have a SKU belonging to a higher service tier than any of its
 	// partner databases. To work around this, we'll try to identify any partner databases that are secondary to this
 	// database, and where the new SKU tier for this database is going to be higher, first upgrade those databases to
@@ -249,6 +251,7 @@ func resourceMsSqlDatabaseCreateUpdate(d *pluginsdk.ResourceData, meta interface
 			SampleName:                       sql.SampleName(d.Get("sample_name").(string)),
 			RequestedBackupStorageRedundancy: expandMsSqlBackupStorageRedundancy(d.Get("storage_account_type").(string)),
 			ZoneRedundant:                    utils.Bool(d.Get("zone_redundant").(bool)),
+			IsLedgerOn:                       utils.Bool(ledgerEnabled),
 		},
 
 		Tags: tags.Expand(d.Get("tags").(map[string]interface{})),
@@ -435,7 +438,7 @@ func resourceMsSqlDatabaseCreateUpdate(d *pluginsdk.ResourceData, meta interface
 		return nil
 	}
 
-	if d.HasChange("long_term_retention_policy") {
+	if d.HasChange("long_term_retention_policy") && !ledgerEnabled {
 		v := d.Get("long_term_retention_policy")
 		longTermRetentionProps := helper.ExpandLongTermRetentionPolicy(v.([]interface{}))
 		if longTermRetentionProps != nil {
@@ -513,6 +516,7 @@ func resourceMsSqlDatabaseRead(d *pluginsdk.ResourceData, meta interface{}) erro
 	d.Set("server_id", serverId.ID())
 
 	skuName := ""
+	ledgerEnabled := false
 	if props := resp.DatabaseProperties; props != nil {
 		d.Set("auto_pause_delay_in_minutes", props.AutoPauseDelay)
 		d.Set("collation", props.Collation)
@@ -534,6 +538,10 @@ func resourceMsSqlDatabaseRead(d *pluginsdk.ResourceData, meta interface{}) erro
 		d.Set("sku_name", skuName)
 		d.Set("storage_account_type", flattenMsSqlBackupStorageRedundancy(props.CurrentBackupStorageRedundancy))
 		d.Set("zone_redundant", props.ZoneRedundant)
+		if props.IsLedgerOn != nil {
+			ledgerEnabled = *props.IsLedgerOn
+		}
+		d.Set("ledger_enabled", ledgerEnabled)
 	}
 
 	securityAlertPolicy, err := securityAlertPoliciesClient.Get(ctx, id.ResourceGroup, id.ServerName, id.Name)
@@ -546,7 +554,7 @@ func resourceMsSqlDatabaseRead(d *pluginsdk.ResourceData, meta interface{}) erro
 	geoBackupPolicy := true
 
 	// Hyper Scale SKU's do not currently support LRP and do not honour normal SRP operations
-	if !strings.HasPrefix(skuName, "HS") && !strings.HasPrefix(skuName, "DW") {
+	if !strings.HasPrefix(skuName, "HS") && !strings.HasPrefix(skuName, "DW") && !ledgerEnabled {
 		longTermPolicy, err := longTermRetentionClient.Get(ctx, id.ResourceGroup, id.ServerName, id.Name)
 		if err != nil {
 			return fmt.Errorf("retrieving Long Term Retention Policies for %s: %+v", id, err)
@@ -1011,6 +1019,14 @@ func resourceMsSqlDatabaseSchema() map[string]*pluginsdk.Schema {
 			Optional: true,
 			Default:  true,
 		},
+
+		"ledger_enabled": {
+			Type:     pluginsdk.TypeBool,
+			Optional: true,
+			Computed: true,
+			ForceNew: true,
+		},
+
 		"tags": tags.Schema(),
 	}
 
diff --git a/internal/services/mssql/mssql_database_resource_test.go b/internal/services/mssql/mssql_database_resource_test.go
index bb6f38576e0b..c9a83260daa4 100644
--- a/internal/services/mssql/mssql_database_resource_test.go
+++ b/internal/services/mssql/mssql_database_resource_test.go
@@ -665,6 +665,21 @@ func TestAccMsSqlDatabase_errorOnDisabledEncryption(t *testing.T) {
 	})
 }
 
+func TestAccMsSqlDatabase_ledgerEnabled(t *testing.T) {
+	data := acceptance.BuildTestData(t, "azurerm_mssql_database", "test")
+	r := MsSqlDatabaseResource{}
+
+	data.ResourceTest(t, r, []acceptance.TestStep{
+		{
+			Config: r.ledgerEnabled(data),
+			Check: acceptance.ComposeTestCheckFunc(
+				check.That(data.ResourceName).ExistsInAzure(r),
+			),
+		},
+		data.ImportStep(),
+	})
+}
+
 func (MsSqlDatabaseResource) Exists(ctx context.Context, client *clients.Client, state *pluginsdk.InstanceState) (*bool, error) {
 	id, err := parse.DatabaseID(state.ID)
 	if err != nil {
@@ -1479,3 +1494,15 @@ resource "azurerm_mssql_database" "test" {
 }
 `, r.template(data), data.RandomInteger)
 }
+
+func (r MsSqlDatabaseResource) ledgerEnabled(data acceptance.TestData) string {
+	return fmt.Sprintf(`
+%[1]s
+
+resource "azurerm_mssql_database" "test" {
+  name           = "acctest-db-%[2]d"
+  server_id      = azurerm_mssql_server.test.id
+  ledger_enabled = true
+}
+`, r.template(data), data.RandomInteger)
+}
diff --git a/website/docs/r/mssql_database.html.markdown b/website/docs/r/mssql_database.html.markdown
index 3533438de87c..08f727fe03ce 100644
--- a/website/docs/r/mssql_database.html.markdown
+++ b/website/docs/r/mssql_database.html.markdown
@@ -94,6 +94,8 @@ The following arguments are supported:
 
 ~> **Note:** `geo_backup_enabled` is only applicable for DataWarehouse SKUs (DW*). This setting is ignored for all other SKUs.
 
+* `ledger_enabled` - (Optional) A boolean that specifies if this is a ledger database. Defaults to `false`. Changing this forces a new resource to be created.
+
 * `license_type` - (Optional) Specifies the license type applied to this database. Possible values are `LicenseIncluded` and `BasePrice`.
 
 * `long_term_retention_policy` - (Optional) A `long_term_retention_policy` block as defined below.