diff --git a/internal/services/resource/management_group_template_deployment_resource.go b/internal/services/resource/management_group_template_deployment_resource.go
index 01efe96562e8..1388895880e5 100644
--- a/internal/services/resource/management_group_template_deployment_resource.go
+++ b/internal/services/resource/management_group_template_deployment_resource.go
@@ -247,6 +247,10 @@ func managementGroupTemplateDeploymentResourceUpdate(d *pluginsdk.ResourceData,
 		deployment.Properties.TemplateLink = &resources.TemplateLink{
 			ID: utils.String(d.Get("template_spec_version_id").(string)),
 		}
+
+		if d.Get("template_spec_version_id").(string) != "" {
+			deployment.Properties.Template = nil
+		}
 	}
 
 	if d.HasChange("tags") {
diff --git a/internal/services/resource/resource_group_template_deployment_resource.go b/internal/services/resource/resource_group_template_deployment_resource.go
index 8e934b660523..676340f6c561 100644
--- a/internal/services/resource/resource_group_template_deployment_resource.go
+++ b/internal/services/resource/resource_group_template_deployment_resource.go
@@ -242,6 +242,10 @@ func resourceGroupTemplateDeploymentResourceUpdate(d *pluginsdk.ResourceData, me
 		deployment.Properties.TemplateLink = &resources.TemplateLink{
 			ID: utils.String(d.Get("template_spec_version_id").(string)),
 		}
+
+		if d.Get("template_spec_version_id").(string) != "" {
+			deployment.Properties.Template = nil
+		}
 	}
 
 	if d.HasChange("tags") {
diff --git a/internal/services/resource/subscription_template_deployment_resource.go b/internal/services/resource/subscription_template_deployment_resource.go
index 9fbc57746831..1a51da65246c 100644
--- a/internal/services/resource/subscription_template_deployment_resource.go
+++ b/internal/services/resource/subscription_template_deployment_resource.go
@@ -232,6 +232,10 @@ func subscriptionTemplateDeploymentResourceUpdate(d *pluginsdk.ResourceData, met
 		deployment.Properties.TemplateLink = &resources.TemplateLink{
 			ID: utils.String(d.Get("template_spec_version_id").(string)),
 		}
+
+		if d.Get("template_spec_version_id").(string) != "" {
+			deployment.Properties.Template = nil
+		}
 	}
 
 	if d.HasChange("tags") {
diff --git a/internal/services/resource/tenant_template_deployment_resource.go b/internal/services/resource/tenant_template_deployment_resource.go
index 646bdaa19207..7d7f18fe32c3 100644
--- a/internal/services/resource/tenant_template_deployment_resource.go
+++ b/internal/services/resource/tenant_template_deployment_resource.go
@@ -233,6 +233,10 @@ func tenantTemplateDeploymentResourceUpdate(d *pluginsdk.ResourceData, meta inte
 		deployment.Properties.TemplateLink = &resources.TemplateLink{
 			ID: utils.String(d.Get("template_spec_version_id").(string)),
 		}
+
+		if d.Get("template_spec_version_id").(string) != "" {
+			deployment.Properties.Template = nil
+		}
 	}
 
 	if d.HasChange("tags") {