diff --git a/azurerm/resource_arm_api_management_api.go b/azurerm/resource_arm_api_management_api.go
index 4f2c7efa6699..f84fde09ca23 100644
--- a/azurerm/resource_arm_api_management_api.go
+++ b/azurerm/resource_arm_api_management_api.go
@@ -171,11 +171,13 @@ func resourceArmApiManagementApi() *schema.Resource {
 			"version": {
 				Type:     schema.TypeString,
 				Computed: true,
+				Optional: true,
 			},
 
 			"version_set_id": {
 				Type:     schema.TypeString,
 				Computed: true,
+				Optional: true,
 			},
 		},
 	}
@@ -243,6 +245,13 @@ func resourceArmApiManagementApiCreateUpdate(d *schema.ResourceData, meta interf
 	displayName := d.Get("display_name").(string)
 	serviceUrl := d.Get("service_url").(string)
 
+	version := d.Get("version").(string)
+	versionSetId := d.Get("version_set_id").(string)
+
+	if version != "" && versionSetId == "" {
+		return fmt.Errorf("Error setting `version` without the required `version_set_id`")
+	}
+
 	protocolsRaw := d.Get("protocols").(*schema.Set).List()
 	protocols := expandApiManagementApiProtocols(protocolsRaw)
 
@@ -266,9 +275,14 @@ func resourceArmApiManagementApiCreateUpdate(d *schema.ResourceData, meta interf
 			Protocols:                     protocols,
 			ServiceURL:                    utils.String(serviceUrl),
 			SubscriptionKeyParameterNames: subscriptionKeyParameterNames,
+			APIVersion:                    utils.String(version),
 		},
 	}
 
+	if versionSetId != "" {
+		params.APICreateOrUpdateProperties.APIVersionSetID = utils.String(versionSetId)
+	}
+
 	if _, err := client.CreateOrUpdate(ctx, resourceGroup, serviceName, apiId, params, ""); err != nil {
 		return fmt.Errorf("Error creating/updating API %q / Revision %q (API Management Service %q / Resource Group %q): %+v", name, revision, serviceName, resourceGroup, err)
 	}
diff --git a/azurerm/resource_arm_api_management_api_test.go b/azurerm/resource_arm_api_management_api_test.go
index 28935295da31..a1097c61503f 100644
--- a/azurerm/resource_arm_api_management_api_test.go
+++ b/azurerm/resource_arm_api_management_api_test.go
@@ -94,6 +94,32 @@ func TestAccAzureRMApiManagementApi_wordRevision(t *testing.T) {
 	})
 }
 
+func TestAccAzureRMApiManagementApi_version(t *testing.T) {
+	resourceName := "azurerm_api_management_api.test"
+	ri := tf.AccRandTimeInt()
+	location := testLocation()
+
+	resource.Test(t, resource.TestCase{
+		PreCheck:     func() { testAccPreCheck(t) },
+		Providers:    testAccProviders,
+		CheckDestroy: testCheckAzureRMApiManagementApiDestroy,
+		Steps: []resource.TestStep{
+			{
+				Config: testAccAzureRMApiManagementApi_versionSet(ri, location),
+				Check: resource.ComposeTestCheckFunc(
+					testCheckAzureRMApiManagementApiExists(resourceName),
+					resource.TestCheckResourceAttr(resourceName, "version", "v1"),
+				),
+			},
+			{
+				ResourceName:      resourceName,
+				ImportState:       true,
+				ImportStateVerify: true,
+			},
+		},
+	})
+}
+
 func TestAccAzureRMApiManagementApi_requiresImport(t *testing.T) {
 	if !features.ShouldResourcesBeImported() {
 		t.Skip("Skipping since resources aren't required to be imported")
@@ -495,6 +521,33 @@ resource "azurerm_api_management_api" "test" {
 `, template, rInt)
 }
 
+func testAccAzureRMApiManagementApi_versionSet(rInt int, location string) string {
+	template := testAccAzureRMApiManagementApi_template(rInt, location)
+	return fmt.Sprintf(`
+%s
+
+resource "azurerm_api_management_api_version_set" "test" {
+  name                = "acctestAMAVS-%d"
+  resource_group_name = "${azurerm_resource_group.test.name}"
+  api_management_name = "${azurerm_api_management.test.name}"
+  display_name        = "Butter Parser"
+  versioning_scheme   = "Segment"
+}
+
+resource "azurerm_api_management_api" "test" {
+  name                = "acctestapi-%d"
+  resource_group_name = "${azurerm_resource_group.test.name}"
+  api_management_name = "${azurerm_api_management.test.name}"
+  display_name        = "api1"
+  path                = "api1"
+  protocols           = ["https"]
+  revision            = "1"
+  version			  = "v1"
+  version_set_id	  = "${azurerm_api_management_api_version_set.test.id}"
+}
+`, template, rInt, rInt)
+}
+
 func testAccAzureRMApiManagementApi_template(rInt int, location string) string {
 	return fmt.Sprintf(`
 resource "azurerm_resource_group" "test" {
diff --git a/website/docs/r/api_management_api.html.markdown b/website/docs/r/api_management_api.html.markdown
index 68f045a1b2f6..1180c17f75cf 100644
--- a/website/docs/r/api_management_api.html.markdown
+++ b/website/docs/r/api_management_api.html.markdown
@@ -74,6 +74,12 @@ The following arguments are supported:
 
 * `subscription_key_parameter_names` - (Optional) A `subscription_key_parameter_names` block as documented below.
 
+* `version` - (Optional) The Version number of this API, if this API is versioned.
+
+* `version_set_id` - (Optional) The ID of the Version Set which this API is associated with.
+
+-> **NOTE:** When `version` is set, `version_set_id` must also be specified
+
 ---
 
 A `import` block supports the following: