diff --git a/src/azure-cli/azure/cli/command_modules/resource/custom.py b/src/azure-cli/azure/cli/command_modules/resource/custom.py
index 432c6400eb2..ab3c3901e86 100644
--- a/src/azure-cli/azure/cli/command_modules/resource/custom.py
+++ b/src/azure-cli/azure/cli/command_modules/resource/custom.py
@@ -1844,9 +1844,15 @@ def create_template_spec(cmd, resource_group_name, name, template_file=None, loc
 
         if template_file:
             from azure.cli.command_modules.resource._packing_engine import (pack)
-            packed_template = pack(cmd, template_file)
-            input_template = getattr(packed_template, 'RootTemplate')
-            artifacts = getattr(packed_template, 'Artifacts')
+            if is_bicep_file(template_file):
+                template_content = run_bicep_command(["build", "--stdout", template_file])
+                input_content = _remove_comments_from_json(template_content, file_path=template_file)
+                input_template = json.loads(json.dumps(input_content))
+                artifacts = []
+            else:
+                packed_template = pack(cmd, template_file)
+                input_template = getattr(packed_template, 'RootTemplate')
+                artifacts = getattr(packed_template, 'Artifacts')
 
         if ui_form_definition_file:
             ui_form_definition_content = _remove_comments_from_json(read_file_content(ui_form_definition_file))
@@ -1888,9 +1894,15 @@ def update_template_spec(cmd, resource_group_name=None, name=None, template_spec
     existing_template, artifacts, input_ui_form_definition = None, None, None
     if template_file:
         from azure.cli.command_modules.resource._packing_engine import (pack)
-        packed_template = pack(cmd, template_file)
-        input_template = getattr(packed_template, 'RootTemplate')
-        artifacts = getattr(packed_template, 'Artifacts')
+        if is_bicep_file(template_file):
+            template_content = run_bicep_command(["build", "--stdout", template_file])
+            input_content = _remove_comments_from_json(template_content, file_path=template_file)
+            input_template = json.loads(json.dumps(input_content))
+            artifacts = []
+        else:
+            packed_template = pack(cmd, template_file)
+            input_template = getattr(packed_template, 'RootTemplate')
+            artifacts = getattr(packed_template, 'Artifacts')
 
     if ui_form_definition_file:
         ui_form_definition_content = _remove_comments_from_json(read_file_content(ui_form_definition_file))
diff --git a/src/azure-cli/azure/cli/command_modules/resource/tests/latest/test_resource.py b/src/azure-cli/azure/cli/command_modules/resource/tests/latest/test_resource.py
index 3421f2c35c2..3f1904ca8bc 100644
--- a/src/azure-cli/azure/cli/command_modules/resource/tests/latest/test_resource.py
+++ b/src/azure-cli/azure/cli/command_modules/resource/tests/latest/test_resource.py
@@ -3759,6 +3759,32 @@ def test_tenent_level_deployment_with_bicep(self):
             self.check('properties.provisioningState', 'Succeeded')
         ])
 
+    @ResourceGroupPreparer(name_prefix='cli_test_template_specs', location='westus')
+    def test_create_template_specs_bicep(self, resource_group, resource_group_location):
+        curr_dir = os.path.dirname(os.path.realpath(__file__))
+        template_spec_name = self.create_random_name('cli-test-create-template-spec', 60)
+        self.kwargs.update({
+            'template_spec_name': template_spec_name,
+            'tf': os.path.join(curr_dir, 'storage_account_deploy.bicep').replace('\\', '\\\\'),
+            'resource_group_location': resource_group_location,
+            'description': '"AzCLI test root template spec from bicep"',
+            'version_description': '"AzCLI test version of root template spec from bicep"',
+        })
+
+        result = self.cmd('ts create -g {rg} -n {template_spec_name} -v 1.0 -l {resource_group_location} -f "{tf}" --description {description} --version-description {version_description}', checks=[
+            self.check('location', "westus"),
+            self.check('mainTemplate.functions', []),
+            self.check("name", "1.0")
+        ]).get_output_in_json()
+
+        with self.assertRaises(IncorrectUsageError) as err:
+            self.cmd('ts create --name {template_spec_name} -g {rg} -l {resource_group_location} --template-file "{tf}"')
+            self.assertTrue("please provide --template-uri if --query-string is specified" in str(err.exception))
+
+        # clean up
+        self.kwargs['template_spec_id'] = result['id'].replace('/versions/1.0', '')
+        self.cmd('ts delete --template-spec {template_spec_id} --yes')
+
     def _remove_bicep_cli(self):
         bicep_cli_path = self._get_bicep_cli_path()
         if os.path.isfile(bicep_cli_path):