diff --git a/internal/services/bot/bot_service_azure_bot_resource_test.go b/internal/services/bot/bot_service_azure_bot_resource_test.go
index 23d66b22dd00..3a03ed63003b 100644
--- a/internal/services/bot/bot_service_azure_bot_resource_test.go
+++ b/internal/services/bot/bot_service_azure_bot_resource_test.go
@@ -183,11 +183,12 @@ resource "azurerm_application_insights_api_key" "test" {
 }
 
 resource "azurerm_bot_service_azure_bot" "test" {
-  name                = "acctestdf%[1]d"
-  resource_group_name = azurerm_resource_group.test.name
-  location            = "global"
-  microsoft_app_id    = data.azurerm_client_config.current.client_id
-  sku                 = "F0"
+  name                         = "acctestdf%[1]d"
+  resource_group_name          = azurerm_resource_group.test.name
+  location                     = "global"
+  microsoft_app_id             = data.azurerm_client_config.current.client_id
+  sku                          = "F0"
+  local_authentication_enabled = false
 
   endpoint                              = "https://example.com"
   developer_app_insights_api_key        = azurerm_application_insights_api_key.test.api_key
diff --git a/internal/services/bot/bot_service_resource_base.go b/internal/services/bot/bot_service_resource_base.go
index 9f24a669716e..b1bc2fdc890f 100644
--- a/internal/services/bot/bot_service_resource_base.go
+++ b/internal/services/bot/bot_service_resource_base.go
@@ -107,6 +107,12 @@ func (br botBaseResource) arguments(fields map[string]*pluginsdk.Schema) map[str
 			}, false),
 		},
 
+		"local_authentication_enabled": {
+			Type:     pluginsdk.TypeBool,
+			Optional: true,
+			Default:  true,
+		},
+
 		"luis_app_ids": {
 			Type:     pluginsdk.TypeList,
 			Optional: true,
@@ -180,6 +186,7 @@ func (br botBaseResource) createFunc(resourceName, botKind string) sdk.ResourceF
 					DeveloperAppInsightKey:            utils.String(metadata.ResourceData.Get("developer_app_insights_key").(string)),
 					DeveloperAppInsightsAPIKey:        utils.String(metadata.ResourceData.Get("developer_app_insights_api_key").(string)),
 					DeveloperAppInsightsApplicationID: utils.String(metadata.ResourceData.Get("developer_app_insights_application_id").(string)),
+					DisableLocalAuth:                  utils.Bool(!metadata.ResourceData.Get("local_authentication_enabled").(bool)),
 					LuisAppIds:                        utils.ExpandStringSlice(metadata.ResourceData.Get("luis_app_ids").([]interface{})),
 					LuisKey:                           utils.String(metadata.ResourceData.Get("luis_key").(string)),
 					IsStreamingSupported:              utils.Bool(metadata.ResourceData.Get("streaming_endpoint_enabled").(bool)),
@@ -295,6 +302,12 @@ func (br botBaseResource) readFunc() sdk.ResourceFunc {
 				}
 				metadata.ResourceData.Set("microsoft_app_msi_id", msaAppMSIId)
 
+				localAuthEnabled := true
+				if v := props.DisableLocalAuth; v != nil {
+					localAuthEnabled = !*v
+				}
+				metadata.ResourceData.Set("local_authentication_enabled", localAuthEnabled)
+
 				var luisAppIds []string
 				if v := props.LuisAppIds; v != nil {
 					luisAppIds = *v
@@ -367,6 +380,10 @@ func (br botBaseResource) updateFunc() sdk.ResourceFunc {
 				existing.Properties.DeveloperAppInsightsApplicationID = utils.String(metadata.ResourceData.Get("developer_app_insights_application_id").(string))
 			}
 
+			if metadata.ResourceData.HasChange("local_authentication_enabled") {
+				existing.Properties.DisableLocalAuth = utils.Bool(!metadata.ResourceData.Get("local_authentication_enabled").(bool))
+			}
+
 			if metadata.ResourceData.HasChange("luis_app_ids") {
 				existing.Properties.LuisAppIds = utils.ExpandStringSlice(metadata.ResourceData.Get("luis_app_ids").([]interface{}))
 			}
diff --git a/website/docs/r/bot_service_azure_bot.html.markdown b/website/docs/r/bot_service_azure_bot.html.markdown
index c0306afdb11b..a68870375dd1 100644
--- a/website/docs/r/bot_service_azure_bot.html.markdown
+++ b/website/docs/r/bot_service_azure_bot.html.markdown
@@ -80,6 +80,8 @@ The following arguments are supported:
 
 * `microsoft_app_type` - (Optional) The Microsoft App Type for this Azure Bot Service. Possible values are `MultiTenant`, `SingleTenant` and `UserAssignedMSI`. Changing this forces a new resource to be created.
 
+* `local_authentication_enabled` - (Optional) Is local authentication enabled? Defaults to `true`.
+
 * `luis_app_ids` - (Optional) A list of LUIS App IDs to associate with this Azure Bot Service.
 
 * `luis_key` - (Optional) The LUIS key to associate with this Azure Bot Service.