diff --git a/BUILDGUIDE.md b/BUILDGUIDE.md
index 390bdf4081..47cacc9fb7 100644
--- a/BUILDGUIDE.md
+++ b/BUILDGUIDE.md
@@ -187,6 +187,7 @@ Manual Tests require the below setup to run:
   |IsAzureSynpase | (Optional) When set to 'true', test suite runs compatible tests for Azure Synapse/Parallel Data Warehouse. | `true` OR `false`|
   |EnclaveAzureDatabaseConnString | (Optional) Connection string for Azure database with enclaves |
   |ManagedIdentitySupported | (Optional) When set to `false` **Managed Identity** related tests won't run. The default value is `true`. |
+  |IsManagedInstance | (Optional) When set to `true` **TVP** related tests will use on non-Azure bs files to compare test results. this is needed when testing against Managed Instances or TVP Tests will fail on Test set 3. The default value is `false`. |
   |PowerShellPath | The full path to PowerShell.exe. This is not required if the path is present in the PATH environment variable. | `D:\\escaped\\absolute\\path\\to\\PowerShell.exe` |
 
 ### Commands to run Manual Tests
diff --git a/src/Microsoft.Data.SqlClient/tests/ManualTests/DataCommon/DataTestUtility.cs b/src/Microsoft.Data.SqlClient/tests/ManualTests/DataCommon/DataTestUtility.cs
index 2e274fc3c2..b6a7cff18f 100644
--- a/src/Microsoft.Data.SqlClient/tests/ManualTests/DataCommon/DataTestUtility.cs
+++ b/src/Microsoft.Data.SqlClient/tests/ManualTests/DataCommon/DataTestUtility.cs
@@ -78,6 +78,8 @@ public static class DataTestUtility
         private static Dictionary<string, bool> AvailableDatabases;
         private static BaseEventListener TraceListener;
 
+        public static readonly bool IsManagedInstance = false;
+
         //Kerberos variables
         public static readonly string KerberosDomainUser = null;
         internal static readonly string KerberosDomainPassword = null;
@@ -114,6 +116,7 @@ static DataTestUtility()
             KerberosDomainPassword = c.KerberosDomainPassword;
             KerberosDomainUser = c.KerberosDomainUser;
             ManagedIdentitySupported = c.ManagedIdentitySupported;
+            IsManagedInstance = c.IsManagedInstance;
 
             System.Net.ServicePointManager.SecurityProtocol |= System.Net.SecurityProtocolType.Tls12;
 
diff --git a/src/Microsoft.Data.SqlClient/tests/ManualTests/SQL/ParameterTest/TvpTest.cs b/src/Microsoft.Data.SqlClient/tests/ManualTests/SQL/ParameterTest/TvpTest.cs
index 4c7f198793..7a13fdceb5 100644
--- a/src/Microsoft.Data.SqlClient/tests/ManualTests/SQL/ParameterTest/TvpTest.cs
+++ b/src/Microsoft.Data.SqlClient/tests/ManualTests/SQL/ParameterTest/TvpTest.cs
@@ -195,10 +195,25 @@ private void RunTest()
         private bool RunTestCoreAndCompareWithBaseline()
         {
             string outputPath = "SqlParameterTest.out";
+            string baselinePath;
 #if DEBUG
-            string baselinePath = DataTestUtility.IsNotAzureServer() ? "SqlParameterTest_DebugMode.bsl" : "SqlParameterTest_DebugMode_Azure.bsl";
+            if (DataTestUtility.IsNotAzureServer() || DataTestUtility.IsManagedInstance)
+            {
+                baselinePath = "SqlParameterTest_DebugMode.bsl";
+            }
+            else
+            {
+                baselinePath = "SqlParameterTest_DebugMode_Azure.bsl";
+            }
 #else
-            string baselinePath = DataTestUtility.IsNotAzureServer() ? "SqlParameterTest_ReleaseMode.bsl" : "SqlParameterTest_ReleaseMode_Azure.bsl";
+            if (DataTestUtility.IsNotAzureServer() || DataTestUtility.IsManagedInstance)
+            {
+                baselinePath = "SqlParameterTest_ReleaseMode.bsl";
+            }
+            else
+            {
+                baselinePath = "SqlParameterTest_ReleaseMode_Azure.bsl";
+            }
 #endif
 
             var fstream = new FileStream(outputPath, FileMode.Create, FileAccess.Write, FileShare.Read);
diff --git a/src/Microsoft.Data.SqlClient/tests/tools/Microsoft.Data.SqlClient.TestUtilities/Config.cs b/src/Microsoft.Data.SqlClient/tests/tools/Microsoft.Data.SqlClient.TestUtilities/Config.cs
index 47eda61830..47aad75eec 100644
--- a/src/Microsoft.Data.SqlClient/tests/tools/Microsoft.Data.SqlClient.TestUtilities/Config.cs
+++ b/src/Microsoft.Data.SqlClient/tests/tools/Microsoft.Data.SqlClient.TestUtilities/Config.cs
@@ -43,6 +43,7 @@ public class Config
         public string PowerShellPath = null;
         public string KerberosDomainPassword = null;
         public string KerberosDomainUser = null;
+        public bool IsManagedInstance = false;
 
         public static Config Load(string configPath = @"config.json")
         {