diff --git a/internal/services/monitor/monitor_data_collection_rule_resource.go b/internal/services/monitor/monitor_data_collection_rule_resource.go
index 230e83f1b0ea..0dce4ced7aaa 100644
--- a/internal/services/monitor/monitor_data_collection_rule_resource.go
+++ b/internal/services/monitor/monitor_data_collection_rule_resource.go
@@ -865,6 +865,7 @@ func (r DataCollectionRuleResource) Arguments() map[string]*pluginsdk.Schema {
 					"Linux",
 					"Windows",
 					"AgentDirectToStore",
+					"WorkspaceTransforms",
 				},
 				false),
 		},
diff --git a/internal/services/monitor/monitor_data_collection_rule_resource_test.go b/internal/services/monitor/monitor_data_collection_rule_resource_test.go
index 79936ac4b4a9..39a65a01dae4 100644
--- a/internal/services/monitor/monitor_data_collection_rule_resource_test.go
+++ b/internal/services/monitor/monitor_data_collection_rule_resource_test.go
@@ -65,6 +65,21 @@ func TestAccMonitorDataCollectionRule_kindDirectToStore(t *testing.T) {
 	})
 }
 
+func TestAccMonitorDataCollectionRule_kindWorkspaceTransforms(t *testing.T) {
+	data := acceptance.BuildTestData(t, "azurerm_monitor_data_collection_rule", "test")
+	r := MonitorDataCollectionRuleResource{}
+
+	data.ResourceTest(t, r, []acceptance.TestStep{
+		{
+			Config: r.kindWorkspaceTransforms(data),
+			Check: acceptance.ComposeTestCheckFunc(
+				check.That(data.ResourceName).ExistsInAzure(r),
+			),
+		},
+		data.ImportStep(),
+	})
+}
+
 func TestAccMonitorDataCollectionRule_identity(t *testing.T) {
 	data := acceptance.BuildTestData(t, "azurerm_monitor_data_collection_rule", "test")
 	r := MonitorDataCollectionRuleResource{}
@@ -270,6 +285,39 @@ resource "azurerm_monitor_data_collection_rule" "test" {
 `, r.template(data), data.RandomInteger, data.RandomString)
 }
 
+func (r MonitorDataCollectionRuleResource) kindWorkspaceTransforms(data acceptance.TestData) string {
+	return fmt.Sprintf(`
+%[1]s
+
+resource "azurerm_log_analytics_workspace" "test" {
+  name                = "acctest-law-%[2]d"
+  location            = azurerm_resource_group.test.location
+  resource_group_name = azurerm_resource_group.test.name
+  sku                 = "PerGB2018"
+  retention_in_days   = 30
+}
+
+resource "azurerm_monitor_data_collection_rule" "test" {
+  name                = "acctestmdcr-%[2]d"
+  resource_group_name = azurerm_resource_group.test.name
+  location            = azurerm_resource_group.test.location
+  kind                = "WorkspaceTransforms"
+  destinations {
+    log_analytics {
+      workspace_resource_id = azurerm_log_analytics_workspace.test.id
+      name                  = "test-destination-log"
+    }
+  }
+
+  data_flow {
+    streams       = ["Microsoft-Table-LAQueryLogs"]
+    destinations  = ["test-destination-log"]
+    transform_kql = "source | where QueryText !contains 'LAQueryLogs' | extend Context = parse_json(RequestContext) | extend Resources_CF = tostring(Context['workspaces'])"
+  }
+}
+`, r.template(data), data.RandomInteger, data.RandomString)
+}
+
 func (r MonitorDataCollectionRuleResource) systemAssigned(data acceptance.TestData) string {
 	return fmt.Sprintf(`
 %[1]s
diff --git a/website/docs/r/monitor_data_collection_rule.html.markdown b/website/docs/r/monitor_data_collection_rule.html.markdown
index 01b4e320bb71..ccd02fc2cced 100644
--- a/website/docs/r/monitor_data_collection_rule.html.markdown
+++ b/website/docs/r/monitor_data_collection_rule.html.markdown
@@ -233,7 +233,7 @@ The following arguments are supported:
 
 * `identity` - (Optional) An `identity` block as defined below.
 
-* `kind` - (Optional) The kind of the Data Collection Rule. Possible values are `Linux`, `Windows`,and `AgentDirectToStore`. A rule of kind `Linux` does not allow for `windows_event_log` data sources. And a rule of kind `Windows` does not allow for `syslog` data sources. If kind is not specified, all kinds of data sources are allowed.
+* `kind` - (Optional) The kind of the Data Collection Rule. Possible values are `Linux`, `Windows`, `AgentDirectToStore` and `WorkspaceTransforms`. A rule of kind `Linux` does not allow for `windows_event_log` data sources. And a rule of kind `Windows` does not allow for `syslog` data sources. If kind is not specified, all kinds of data sources are allowed.
 
 ~> **NOTE** Once `kind` has been set, changing it forces a new Data Collection Rule to be created.