diff --git a/CHANGELOG.md b/CHANGELOG.md
index 3bc6c71a31..d7d52e7aca 100644
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -8,6 +8,9 @@
 * EXOMobileDeviceMailboxPolicy
   * Fixes an issue where an empty MinPasswordLength value was always passed down
     to the update logic flow.
+* IntuneDeviceAndAppManagementAssignmentFilter
+  * Fixed Test-TargetResource to ensure that resource reports its correct state
+    FIXES [#3959](https://github.com/microsoft/Microsoft365DSC/issues/3959)
 * IntuneDeviceConfigurationNetworkBoundaryPolicyWindows10
   * Fixed Test-TargetResource by removing Id from being tested and also used
     correct filter while retrieving the policy otherwise it could not be found
diff --git a/Modules/Microsoft365DSC/DSCResources/MSFT_IntuneDeviceAndAppManagementAssignmentFilter/MSFT_IntuneDeviceAndAppManagementAssignmentFilter.psm1 b/Modules/Microsoft365DSC/DSCResources/MSFT_IntuneDeviceAndAppManagementAssignmentFilter/MSFT_IntuneDeviceAndAppManagementAssignmentFilter.psm1
index fe0f04941d..1c043b3278 100644
--- a/Modules/Microsoft365DSC/DSCResources/MSFT_IntuneDeviceAndAppManagementAssignmentFilter/MSFT_IntuneDeviceAndAppManagementAssignmentFilter.psm1
+++ b/Modules/Microsoft365DSC/DSCResources/MSFT_IntuneDeviceAndAppManagementAssignmentFilter/MSFT_IntuneDeviceAndAppManagementAssignmentFilter.psm1
@@ -310,21 +310,32 @@ function Test-TargetResource
     Write-Verbose -Message "Testing configuration of assignment filter {$DisplayName}"
 
     $CurrentValues = Get-TargetResource @PSBoundParameters
+    $ValuesToCheck = ([Hashtable]$PSBoundParameters).clone()
+    $ValuesToCheck = Remove-M365DSCAuthenticationParameter -BoundParameters $ValuesToCheck
+    $ValuesToCheck.Remove('Identity') | Out-Null
 
-    Write-Verbose -Message "Current Values: $(Convert-M365DscHashtableToString -Hashtable $CurrentValues)"
-    Write-Verbose -Message "Target Values: $(Convert-M365DscHashtableToString -Hashtable $PSBoundParameters)"
+    if ($CurrentValues.Ensure -ne $PSBoundParameters.Ensure)
+    {
+        Write-Verbose -Message "Test-TargetResource returned $false"
+        return $false
+    }
+    if ($CurrentValues.Ensure -eq 'Absent' -and $PSBoundParameters.Ensure -eq 'Absent')
+    {
+        Write-Verbose -Message "Test-TargetResource returned $true"
+        return $true
+    }
+    $testResult = $true
 
-    $ValuesToCheck = $PSBoundParameters
-    $ValuesToCheck.Remove('Credential') | Out-Null
-    $ValuesToCheck.Remove('ApplicationId') | Out-Null
-    $ValuesToCheck.Remove('TenantId') | Out-Null
-    $ValuesToCheck.Remove('ApplicationSecret') | Out-Null
-    $ValuesToCheck.Remove('Identity') | Out-Null
+    Write-Verbose -Message "Current Values: $(Convert-M365DscHashtableToString -Hashtable $CurrentValues)"
+    Write-Verbose -Message "Target Values: $(Convert-M365DscHashtableToString -Hashtable $ValuesToCheck)"
 
-    $TestResult = Test-M365DSCParameterState -CurrentValues $CurrentValues `
-        -Source $($MyInvocation.MyCommand.Source) `
-        -DesiredValues $PSBoundParameters `
-        -ValuesToCheck $ValuesToCheck.Keys
+    if ($TestResult)
+    {
+        $TestResult = Test-M365DSCParameterState -CurrentValues $CurrentValues `
+            -Source $($MyInvocation.MyCommand.Source) `
+            -DesiredValues $PSBoundParameters `
+            -ValuesToCheck $ValuesToCheck.Keys
+    }
 
     Write-Verbose -Message "Test-TargetResource returned $TestResult"