diff --git a/public/app/plugins/datasource/grafana-azure-monitor-datasource/azure_monitor/azure_monitor_datasource.test.ts b/public/app/plugins/datasource/grafana-azure-monitor-datasource/azure_monitor/azure_monitor_datasource.test.ts
index 4fba7134baa6..540d3e04834c 100644
--- a/public/app/plugins/datasource/grafana-azure-monitor-datasource/azure_monitor/azure_monitor_datasource.test.ts
+++ b/public/app/plugins/datasource/grafana-azure-monitor-datasource/azure_monitor/azure_monitor_datasource.test.ts
@@ -93,6 +93,36 @@ describe('AzureMonitorDatasource', () => {
         },
       });
     });
+
+    it('should migrate resource URI template variable to resource object', () => {
+      const subscription = '44693801-6ee6-49de-9b2d-9106972f9572';
+      const resourceGroup = 'cloud-datasources';
+      const metricNamespace = 'microsoft.insights/components';
+      const resourceName = 'AppInsightsTestData';
+      templateSrv.init([
+        {
+          id: 'resourceUri',
+          name: 'resourceUri',
+          current: {
+            value: `/subscriptions/${subscription}/resourceGroups/${resourceGroup}/providers/${metricNamespace}/${resourceName}`,
+          },
+        },
+      ]);
+      const query = createMockQuery({
+        azureMonitor: {
+          resourceUri: '$resourceUri',
+        },
+      });
+      const templatedQuery = ctx.ds.azureMonitorDatasource.applyTemplateVariables(query, {});
+      expect(templatedQuery).toMatchObject({
+        subscription,
+        azureMonitor: {
+          resourceGroup,
+          metricNamespace,
+          resourceName,
+        },
+      });
+    });
   });
 
   describe('When performing getMetricNamespaces', () => {
diff --git a/public/app/plugins/datasource/grafana-azure-monitor-datasource/azure_monitor/azure_monitor_datasource.ts b/public/app/plugins/datasource/grafana-azure-monitor-datasource/azure_monitor/azure_monitor_datasource.ts
index 2c168a2f1b97..b55f3c235a38 100644
--- a/public/app/plugins/datasource/grafana-azure-monitor-datasource/azure_monitor/azure_monitor_datasource.ts
+++ b/public/app/plugins/datasource/grafana-azure-monitor-datasource/azure_monitor/azure_monitor_datasource.ts
@@ -66,10 +66,11 @@ export default class AzureMonitorDatasource extends DataSourceWithBackend<AzureM
       hasValue(item?.azureMonitor?.resourceGroup) &&
       hasValue(item?.azureMonitor?.resourceName) &&
       hasValue(item?.azureMonitor?.metricDefinition || item?.azureMonitor?.metricNamespace);
+    const hasResourceUri = hasValue(item.azureMonitor?.resourceUri);
 
     return !!(
       item.hide !== true &&
-      hasResource &&
+      (hasResource || hasResourceUri) &&
       hasValue(item?.azureMonitor?.metricName) &&
       hasValue(item?.azureMonitor?.aggregation)
     );
diff --git a/public/app/plugins/datasource/grafana-azure-monitor-datasource/utils/migrateQuery.ts b/public/app/plugins/datasource/grafana-azure-monitor-datasource/utils/migrateQuery.ts
index c2aad819a70d..1b44cb3be919 100644
--- a/public/app/plugins/datasource/grafana-azure-monitor-datasource/utils/migrateQuery.ts
+++ b/public/app/plugins/datasource/grafana-azure-monitor-datasource/utils/migrateQuery.ts
@@ -136,8 +136,9 @@ function migrateDimensionFilterToArray(query: AzureMonitorQuery): AzureMonitorQu
 }
 
 function migrateDimensionToResourceObj(query: AzureMonitorQuery): AzureMonitorQuery {
-  if (query.azureMonitor?.resourceUri) {
+  if (query.azureMonitor?.resourceUri && !query.azureMonitor.resourceUri.startsWith('$')) {
     const details = parseResourceDetails(query.azureMonitor.resourceUri);
+    const isWellFormedUri = details?.subscription && details?.resourceGroup && details?.resourceName;
     return {
       ...query,
       subscription: details?.subscription,
@@ -146,7 +147,7 @@ function migrateDimensionToResourceObj(query: AzureMonitorQuery): AzureMonitorQu
         resourceGroup: details?.resourceGroup,
         metricNamespace: details?.metricNamespace,
         resourceName: details?.resourceName,
-        resourceUri: undefined,
+        resourceUri: isWellFormedUri ? undefined : query.azureMonitor.resourceUri,
       },
     };
   }