diff --git a/azurerm/resource_arm_managed_disk.go b/azurerm/resource_arm_managed_disk.go
index b2997cc09f9c..38b3954cbfa6 100644
--- a/azurerm/resource_arm_managed_disk.go
+++ b/azurerm/resource_arm_managed_disk.go
@@ -60,6 +60,7 @@ func resourceArmManagedDisk() *schema.Resource {
 					string(compute.Empty),
 					string(compute.FromImage),
 					string(compute.Import),
+					string(compute.Restore),
 				}, true),
 			},
 
@@ -183,7 +184,7 @@ func resourceArmManagedDiskCreateUpdate(d *schema.ResourceData, meta interface{}
 		} else {
 			return fmt.Errorf("[ERROR] source_uri must be specified when create_option is `%s`", compute.Import)
 		}
-	} else if strings.EqualFold(createOption, string(compute.Copy)) {
+	} else if strings.EqualFold(createOption, string(compute.Copy)) || strings.EqualFold(createOption, string(compute.Restore)) {
 		if sourceResourceId := d.Get("source_resource_id").(string); sourceResourceId != "" {
 			createDisk.CreationData.SourceResourceID = &sourceResourceId
 		} else {
diff --git a/website/docs/r/managed_disk.html.markdown b/website/docs/r/managed_disk.html.markdown
index 9b235d3b260f..0dcdea820802 100644
--- a/website/docs/r/managed_disk.html.markdown
+++ b/website/docs/r/managed_disk.html.markdown
@@ -89,10 +89,12 @@ The following arguments are supported:
  * `Empty` - Create an empty managed disk.
  * `Copy` - Copy an existing managed disk or snapshot (specified with `source_resource_id`).
  * `FromImage` - Copy a Platform Image (specified with `image_reference_id`)
+ * `Restore` - Set by Azure Backup or Site Recovery on a restored disk (specified with `source_resource_id`).
 
 * `source_uri` - (Optional) URI to a valid VHD file to be used when `create_option` is `Import`.
 
-* `source_resource_id` - (Optional) ID of an existing managed disk to copy when `create_option` is `Copy`.
+* `source_resource_id` - (Optional) ID of an existing managed disk to copy `create_option` is `Copy`
+    or the recovery point to restore when `create_option` is `Restore`
 
 * `image_reference_id` - (Optional) ID of an existing platform/marketplace disk image to copy when `create_option` is `FromImage`.