diff --git a/.changelog/9376.txt b/.changelog/9376.txt
new file mode 100644
index 00000000000..9c55fb97e29
--- /dev/null
+++ b/.changelog/9376.txt
@@ -0,0 +1,3 @@
+```release-note:bug
+artifactregistry: fixed permadiff due to unsorted `virtual_repository_config` array in `google_artifact_registry_repository`
+```
diff --git a/google/services/artifactregistry/resource_artifact_registry_repository.go b/google/services/artifactregistry/resource_artifact_registry_repository.go
index bb3fcd32762..7c896deecc6 100644
--- a/google/services/artifactregistry/resource_artifact_registry_repository.go
+++ b/google/services/artifactregistry/resource_artifact_registry_repository.go
@@ -32,6 +32,40 @@ import (
 	"github.com/hashicorp/terraform-provider-google/google/verify"
 )
 
+func upstreamPoliciesDiffSuppress(k, old, new string, d *schema.ResourceData) bool {
+	o, n := d.GetChange("virtual_repository_config.0.upstream_policies")
+	oldPolicies, ok := o.([]any)
+	if !ok {
+		return false
+	}
+	newPolicies, ok := n.([]any)
+	if !ok {
+		return false
+	}
+
+	var oldHashes, newHashes []interface{}
+	for _, policy := range oldPolicies {
+		data, ok := policy.(map[string]any)
+		if !ok {
+			return false
+		}
+		hashStr := fmt.Sprintf("[id:%v priority:%v repository:%v]", data["id"], data["priority"], data["repository"])
+		oldHashes = append(oldHashes, hashStr)
+	}
+	for _, policy := range newPolicies {
+		data, ok := policy.(map[string]any)
+		if !ok {
+			return false
+		}
+		hashStr := fmt.Sprintf("[id:%v priority:%v repository:%v]", data["id"], data["priority"], data["repository"])
+		newHashes = append(newHashes, hashStr)
+	}
+
+	oldSet := schema.NewSet(schema.HashString, oldHashes)
+	newSet := schema.NewSet(schema.HashString, newHashes)
+	return oldSet.Equal(newSet)
+}
+
 func ResourceArtifactRegistryRepository() *schema.Resource {
 	return &schema.Resource{
 		Create: resourceArtifactRegistryRepositoryCreate,
@@ -375,8 +409,9 @@ remote repository. Must be in the format of
 				Elem: &schema.Resource{
 					Schema: map[string]*schema.Schema{
 						"upstream_policies": {
-							Type:     schema.TypeList,
-							Optional: true,
+							Type:             schema.TypeList,
+							Optional:         true,
+							DiffSuppressFunc: upstreamPoliciesDiffSuppress,
 							Description: `Policies that configure the upstream artifacts distributed by the Virtual
 Repository. Upstream policies cannot be set on a standard repository.`,
 							Elem: &schema.Resource{
diff --git a/google/services/artifactregistry/resource_artifact_registry_repository_generated_test.go b/google/services/artifactregistry/resource_artifact_registry_repository_generated_test.go
index 834405aa48c..a378dc3a4c3 100644
--- a/google/services/artifactregistry/resource_artifact_registry_repository_generated_test.go
+++ b/google/services/artifactregistry/resource_artifact_registry_repository_generated_test.go
@@ -182,10 +182,17 @@ func TestAccArtifactRegistryRepository_artifactRegistryRepositoryVirtualExample(
 
 func testAccArtifactRegistryRepository_artifactRegistryRepositoryVirtualExample(context map[string]interface{}) string {
 	return acctest.Nprintf(`
-resource "google_artifact_registry_repository" "my-repo-upstream" {
+resource "google_artifact_registry_repository" "my-repo-upstream-1" {
   location      = "us-central1"
-  repository_id = "tf-test-my-repository-upstream%{random_suffix}"
-  description   = "example docker repository (upstream source)%{random_suffix}"
+  repository_id = "tf-test-my-repository-upstream%{random_suffix}-1"
+  description   = "example docker repository (upstream source)%{random_suffix} 1"
+  format        = "DOCKER"
+}
+
+resource "google_artifact_registry_repository" "my-repo-upstream-2" {
+  location      = "us-central1"
+  repository_id = "tf-test-my-repository-upstream%{random_suffix}-2"
+  description   = "example docker repository (upstream source)%{random_suffix} 2"
   format        = "DOCKER"
 }
 
@@ -198,9 +205,14 @@ resource "google_artifact_registry_repository" "my-repo" {
   mode          = "VIRTUAL_REPOSITORY"
   virtual_repository_config {
     upstream_policies {
-      id          = "tf-test-my-repository-upstream%{random_suffix}"
-      repository  = google_artifact_registry_repository.my-repo-upstream.id
-      priority    = 1
+      id          = "tf-test-my-repository-upstream%{random_suffix}-1"
+      repository  = google_artifact_registry_repository.my-repo-upstream-1.id
+      priority    = 20
+    }
+    upstream_policies {
+      id          = "tf-test-my-repository-upstream%{random_suffix}-2"
+      repository  = google_artifact_registry_repository.my-repo-upstream-2.id
+      priority    = 10
     }
   }
 }
diff --git a/website/docs/r/artifact_registry_repository.html.markdown b/website/docs/r/artifact_registry_repository.html.markdown
index 4d655786d38..af844530a8d 100644
--- a/website/docs/r/artifact_registry_repository.html.markdown
+++ b/website/docs/r/artifact_registry_repository.html.markdown
@@ -101,10 +101,17 @@ data "google_project" "project" {}
 
 
 ```hcl
-resource "google_artifact_registry_repository" "my-repo-upstream" {
+resource "google_artifact_registry_repository" "my-repo-upstream-1" {
   location      = "us-central1"
-  repository_id = "my-repository-upstream"
-  description   = "example docker repository (upstream source)"
+  repository_id = "my-repository-upstream-1"
+  description   = "example docker repository (upstream source) 1"
+  format        = "DOCKER"
+}
+
+resource "google_artifact_registry_repository" "my-repo-upstream-2" {
+  location      = "us-central1"
+  repository_id = "my-repository-upstream-2"
+  description   = "example docker repository (upstream source) 2"
   format        = "DOCKER"
 }
 
@@ -117,9 +124,14 @@ resource "google_artifact_registry_repository" "my-repo" {
   mode          = "VIRTUAL_REPOSITORY"
   virtual_repository_config {
     upstream_policies {
-      id          = "my-repository-upstream"
-      repository  = google_artifact_registry_repository.my-repo-upstream.id
-      priority    = 1
+      id          = "my-repository-upstream-1"
+      repository  = google_artifact_registry_repository.my-repo-upstream-1.id
+      priority    = 20
+    }
+    upstream_policies {
+      id          = "my-repository-upstream-2"
+      repository  = google_artifact_registry_repository.my-repo-upstream-2.id
+      priority    = 10
     }
   }
 }