diff --git a/workspace-setup/terraform-examples/azure/azure-vnet-injection/README.md b/workspace-setup/terraform-examples/azure/azure-vnet-injection/README.md
index 7bee186..7ff1eca 100644
--- a/workspace-setup/terraform-examples/azure/azure-vnet-injection/README.md
+++ b/workspace-setup/terraform-examples/azure/azure-vnet-injection/README.md
@@ -129,6 +129,8 @@ You can use the `terraform.tfvars.example` file as a base for your variables. Le
     - The CIDR address of the first subnet
 - subnet_private_cidr
     - The CIDR address of the second subnet
+- managed_resource_group_name
+    - The name of the managed resource group
 
 
 ## Deploy
diff --git a/workspace-setup/terraform-examples/azure/azure-vnet-injection/tf/databricks.tf b/workspace-setup/terraform-examples/azure/azure-vnet-injection/tf/databricks.tf
index 15064d9..389b4ec 100644
--- a/workspace-setup/terraform-examples/azure/azure-vnet-injection/tf/databricks.tf
+++ b/workspace-setup/terraform-examples/azure/azure-vnet-injection/tf/databricks.tf
@@ -4,6 +4,7 @@ resource "azurerm_databricks_workspace" "this" {
   location            = azurerm_resource_group.this.location
   sku                 = "premium"
   tags                = var.tags
+  managed_resource_group_name = var.managed_resource_group_name
 
   custom_parameters {
     virtual_network_id                                   = local.vnet.id
@@ -72,4 +73,4 @@ resource "databricks_metastore_assignment" "this" {
   provider     = databricks.accounts
   workspace_id = azurerm_databricks_workspace.this.workspace_id
   metastore_id = var.existing_metastore_id == "" ? databricks_metastore.this[0].id : var.existing_metastore_id
-}
\ No newline at end of file
+}
diff --git a/workspace-setup/terraform-examples/azure/azure-vnet-injection/tf/terraform.tfvars.example b/workspace-setup/terraform-examples/azure/azure-vnet-injection/tf/terraform.tfvars.example
index eef93ae..ea40450 100644
--- a/workspace-setup/terraform-examples/azure/azure-vnet-injection/tf/terraform.tfvars.example
+++ b/workspace-setup/terraform-examples/azure/azure-vnet-injection/tf/terraform.tfvars.example
@@ -20,6 +20,7 @@ location = "westeurope"
 databricks_account_id = "xxx-xxx"
 existing_metastore_id = "xxx-xxx"
 new_metastore_name = ""
+managed_resource_group_name = null #optional. if no name is provided, azure will generate one on it's own
 
 # =============================================================================
 # Network Configuration
diff --git a/workspace-setup/terraform-examples/azure/azure-vnet-injection/tf/variables.tf b/workspace-setup/terraform-examples/azure/azure-vnet-injection/tf/variables.tf
index 6dbec57..f36d5e4 100644
--- a/workspace-setup/terraform-examples/azure/azure-vnet-injection/tf/variables.tf
+++ b/workspace-setup/terraform-examples/azure/azure-vnet-injection/tf/variables.tf
@@ -17,6 +17,16 @@ variable "resource_group_name" {
     type        = string
 }
 
+variable "managed_resource_group_name" {
+    description = "The name of managed resource group. This is optional field"
+    type = string
+    default     = null
+    validation {
+    condition     = var.managed_resource_group_name != var.resource_group_name
+    error_message = "Managed resource group name should not be same as resource group name"
+  }
+}
+
 variable "tags" {
     description = "A map of tags to assign to the resources"
     type        = map(string)