diff --git a/.changelog/32661.txt b/.changelog/32661.txt
new file mode 100644
index 000000000000..ac2688ed5a05
--- /dev/null
+++ b/.changelog/32661.txt
@@ -0,0 +1,3 @@
+```release-note:bug
+resource/aws_sagemaker_domain: Fix validation on `s3_kms_key_id` in `sharing_settings` and `kms_key_id`
+```
\ No newline at end of file
diff --git a/internal/service/sagemaker/domain.go b/internal/service/sagemaker/domain.go
index f7662ceb829b..f5eb713be8f3 100644
--- a/internal/service/sagemaker/domain.go
+++ b/internal/service/sagemaker/domain.go
@@ -512,9 +512,8 @@ func ResourceDomain() *schema.Resource {
 										ValidateFunc: validation.StringInSlice(sagemaker.NotebookOutputOption_Values(), false),
 									},
 									"s3_kms_key_id": {
-										Type:         schema.TypeString,
-										Optional:     true,
-										ValidateFunc: verify.ValidARN,
+										Type:     schema.TypeString,
+										Optional: true,
 									},
 									"s3_output_path": {
 										Type:     schema.TypeString,
@@ -650,10 +649,9 @@ func ResourceDomain() *schema.Resource {
 				Computed: true,
 			},
 			"kms_key_id": {
-				Type:         schema.TypeString,
-				ForceNew:     true,
-				Optional:     true,
-				ValidateFunc: verify.ValidARN,
+				Type:     schema.TypeString,
+				ForceNew: true,
+				Optional: true,
 			},
 			"retention_policy": {
 				Type:     schema.TypeList,
diff --git a/internal/service/sagemaker/domain_test.go b/internal/service/sagemaker/domain_test.go
index c437f332f04c..0231849d3648 100644
--- a/internal/service/sagemaker/domain_test.go
+++ b/internal/service/sagemaker/domain_test.go
@@ -116,7 +116,7 @@ func testAccDomain_kms(t *testing.T) {
 				Config: testAccDomainConfig_kms(rName),
 				Check: resource.ComposeTestCheckFunc(
 					testAccCheckDomainExists(ctx, resourceName, &domain),
-					resource.TestCheckResourceAttrPair(resourceName, "kms_key_id", "aws_kms_key.test", "arn"),
+					resource.TestCheckResourceAttrPair(resourceName, "kms_key_id", "aws_kms_key.test", "key_id"),
 				),
 			},
 			{
@@ -233,7 +233,7 @@ func testAccDomain_sharingSettings(t *testing.T) {
 					resource.TestCheckResourceAttr(resourceName, "default_user_settings.#", "1"),
 					resource.TestCheckResourceAttr(resourceName, "default_user_settings.0.sharing_settings.#", "1"),
 					resource.TestCheckResourceAttr(resourceName, "default_user_settings.0.sharing_settings.0.notebook_output_option", "Allowed"),
-					resource.TestCheckResourceAttrPair(resourceName, "default_user_settings.0.sharing_settings.0.s3_kms_key_id", "aws_kms_key.test", "arn"),
+					resource.TestCheckResourceAttrPair(resourceName, "default_user_settings.0.sharing_settings.0.s3_kms_key_id", "aws_kms_key.test", "key_id"),
 					resource.TestCheckResourceAttrSet(resourceName, "default_user_settings.0.sharing_settings.0.s3_output_path"),
 				),
 			},
@@ -751,7 +751,7 @@ func testAccDomain_defaultUserSettingsUpdated(t *testing.T) {
 					resource.TestCheckResourceAttr(resourceName, "default_user_settings.#", "1"),
 					resource.TestCheckResourceAttr(resourceName, "default_user_settings.0.sharing_settings.#", "1"),
 					resource.TestCheckResourceAttr(resourceName, "default_user_settings.0.sharing_settings.0.notebook_output_option", "Allowed"),
-					resource.TestCheckResourceAttrPair(resourceName, "default_user_settings.0.sharing_settings.0.s3_kms_key_id", "aws_kms_key.test", "arn"),
+					resource.TestCheckResourceAttrPair(resourceName, "default_user_settings.0.sharing_settings.0.s3_kms_key_id", "aws_kms_key.test", "key_id"),
 					resource.TestCheckResourceAttrSet(resourceName, "default_user_settings.0.sharing_settings.0.s3_output_path"),
 				),
 			},
@@ -954,7 +954,7 @@ resource "aws_sagemaker_domain" "test" {
   auth_mode   = "IAM"
   vpc_id      = aws_vpc.test.id
   subnet_ids  = aws_subnet.test[*].id
-  kms_key_id  = aws_kms_key.test.arn
+  kms_key_id  = aws_kms_key.test.key_id
 
   default_user_settings {
     execution_role = aws_iam_role.test.arn
@@ -1098,7 +1098,7 @@ resource "aws_sagemaker_domain" "test" {
 
     sharing_settings {
       notebook_output_option = "Allowed"
-      s3_kms_key_id          = aws_kms_key.test.arn
+      s3_kms_key_id          = aws_kms_key.test.key_id
       s3_output_path         = "s3://${aws_s3_bucket.test.bucket}/sharing"
     }
   }