diff --git a/internal/services/mssql/mssql_elasticpool_resource.go b/internal/services/mssql/mssql_elasticpool_resource.go
index 6b56fbfd88a8..fdfbd85890dd 100644
--- a/internal/services/mssql/mssql_elasticpool_resource.go
+++ b/internal/services/mssql/mssql_elasticpool_resource.go
@@ -229,6 +229,14 @@ func resourceMsSqlElasticPoolCreateUpdate(d *pluginsdk.ResourceData, meta interf
 		},
 	}
 
+	if _, ok := d.GetOk("license_type"); ok {
+		if sku.Tier != nil && (*sku.Tier == "GeneralPurpose" || *sku.Tier == "BusinessCritical") {
+			elasticPool.ElasticPoolProperties.LicenseType = sql.ElasticPoolLicenseType(d.Get("license_type").(string))
+		} else {
+			return fmt.Errorf("`license_type` can only be configured when `sku.0.tier` is set to `GeneralPurpose` or `BusinessCritical`")
+		}
+	}
+
 	if d.HasChange("max_size_gb") {
 		if v, ok := d.GetOk("max_size_gb"); ok {
 			maxSizeBytes := v.(float64) * 1073741824
diff --git a/website/docs/r/mssql_elasticpool.html.markdown b/website/docs/r/mssql_elasticpool.html.markdown
index 6339d7611cd7..4d6cf8f763de 100644
--- a/website/docs/r/mssql_elasticpool.html.markdown
+++ b/website/docs/r/mssql_elasticpool.html.markdown
@@ -79,6 +79,8 @@ The following arguments are supported:
 
 * `license_type` - (Optional) Specifies the license type applied to this database. Possible values are `LicenseIncluded` and `BasePrice`.
 
+-> **Note:** `license_type` can only be configured when `sku.0.tier` is set to `GeneralPurpose` or `BusinessCritical`
+
 ---
 
 `sku` supports the following: