diff --git a/internal/services/monitor/monitor_diagnostic_setting_resource.go b/internal/services/monitor/monitor_diagnostic_setting_resource.go
index 5be8bae6c9d8..338ebcfe66d5 100644
--- a/internal/services/monitor/monitor_diagnostic_setting_resource.go
+++ b/internal/services/monitor/monitor_diagnostic_setting_resource.go
@@ -129,7 +129,7 @@ func resourceMonitorDiagnosticSetting() *pluginsdk.Resource {
 							Type:       pluginsdk.TypeList,
 							Optional:   true,
 							MaxItems:   1,
-							Deprecated: "`retention_policy` has been deprecated - to learn more https://aka.ms/diagnostic_settings_log_retention",
+							Deprecated: "`retention_policy` has been deprecated in favor of `azurerm_storage_management_policy` resource - to learn more https://aka.ms/diagnostic_settings_log_retention",
 							Elem: &pluginsdk.Resource{
 								Schema: map[string]*pluginsdk.Schema{
 									"enabled": {
@@ -168,9 +168,10 @@ func resourceMonitorDiagnosticSetting() *pluginsdk.Resource {
 						},
 
 						"retention_policy": {
-							Type:     pluginsdk.TypeList,
-							Optional: true,
-							MaxItems: 1,
+							Type:       pluginsdk.TypeList,
+							Optional:   true,
+							MaxItems:   1,
+							Deprecated: "`retention_policy` has been deprecated in favor of `azurerm_storage_management_policy` resource - to learn more https://aka.ms/diagnostic_settings_log_retention",
 							Elem: &pluginsdk.Resource{
 								Schema: map[string]*pluginsdk.Schema{
 									"enabled": {
@@ -218,9 +219,10 @@ func resourceMonitorDiagnosticSetting() *pluginsdk.Resource {
 					},
 
 					"retention_policy": {
-						Type:     pluginsdk.TypeList,
-						Optional: true,
-						MaxItems: 1,
+						Type:       pluginsdk.TypeList,
+						Optional:   true,
+						MaxItems:   1,
+						Deprecated: "`retention_policy` has been deprecated in favor of `azurerm_storage_management_policy` resource - to learn more https://aka.ms/diagnostic_settings_log_retention",
 						Elem: &pluginsdk.Resource{
 							Schema: map[string]*pluginsdk.Schema{
 								"enabled": {
diff --git a/website/docs/r/monitor_diagnostic_setting.html.markdown b/website/docs/r/monitor_diagnostic_setting.html.markdown
index 493de7b692a6..d3389703a611 100644
--- a/website/docs/r/monitor_diagnostic_setting.html.markdown
+++ b/website/docs/r/monitor_diagnostic_setting.html.markdown
@@ -124,6 +124,8 @@ A `log` block supports the following:
 
 * `retention_policy` - (Optional) A `retention_policy` block as defined below.
 
+!> **NOTE:** `retention_policy` has been deprecated in favor of `azurerm_storage_management_policy` resource - to learn more information on the deprecation [in the Azure documentation](https://aka.ms/diagnostic_settings_log_retention).
+
 * `enabled` - (Optional) Is this Diagnostic Log enabled? Defaults to `true`.
 
 ---
@@ -140,6 +142,8 @@ An `enabled_log` block supports the following:
 
 * `retention_policy` - (Optional) A `retention_policy` block as defined below.
 
+!> **NOTE:** `retention_policy` has been deprecated in favor of `azurerm_storage_management_policy` resource - to learn more information on the deprecation [in the Azure documentation](https://aka.ms/diagnostic_settings_log_retention).
+
 ---
 
 A `metric` block supports the following:
@@ -150,15 +154,20 @@ A `metric` block supports the following:
 
 * `retention_policy` - (Optional) A `retention_policy` block as defined below.
 
+!> **NOTE:** `retention_policy` has been deprecated in favor of `azurerm_storage_management_policy` resource - to learn more information on the deprecation [in the Azure documentation](https://aka.ms/diagnostic_settings_log_retention).
+
 * `enabled` - (Optional) Is this Diagnostic Metric enabled? Defaults to `true`.
 
 ---
 
 A `retention_policy` block supports the following:
 
+!> **NOTE:** `retention_policy` has been deprecated in favor of `azurerm_storage_management_policy` resource - to learn more information on the deprecation [in the Azure documentation](https://aka.ms/diagnostic_settings_log_retention).
+
 * `enabled` - (Required) Is this Retention Policy enabled?
 
 * `days` - (Optional) The number of days for which this Retention Policy should apply.
+ 
 
 -> **NOTE:** Setting this to `0` will retain the events indefinitely.