diff --git a/CHANGELOG.md b/CHANGELOG.md
index e935868ca2..958e68e7a6 100644
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -2,6 +2,8 @@
 
 # UNRELEASED
 
+* AADEntitlementManagementConnectedOrganization
+  * Fixed [[#3738](https://github.com/microsoft/Microsoft365DSC/issues/3738)]
 * EXOCalendarProcessing
   * Initial release.
 * DEPENDENCIES
diff --git a/Modules/Microsoft365DSC/DSCResources/MSFT_AADEntitlementManagementConnectedOrganization/MSFT_AADEntitlementManagementConnectedOrganization.psm1 b/Modules/Microsoft365DSC/DSCResources/MSFT_AADEntitlementManagementConnectedOrganization/MSFT_AADEntitlementManagementConnectedOrganization.psm1
index 51cd891750..637425e5d9 100644
--- a/Modules/Microsoft365DSC/DSCResources/MSFT_AADEntitlementManagementConnectedOrganization/MSFT_AADEntitlementManagementConnectedOrganization.psm1
+++ b/Modules/Microsoft365DSC/DSCResources/MSFT_AADEntitlementManagementConnectedOrganization/MSFT_AADEntitlementManagementConnectedOrganization.psm1
@@ -313,8 +313,10 @@ function Set-TargetResource
                 $CreateParameters.$key = Convert-M365DSCDRGComplexTypeToHashtable -ComplexObject $CreateParameters.$key
             }
         }
-
-        $newConnectedOrganization = New-MgBetaEntitlementManagementConnectedOrganization -BodyParameter $CreateParameters
+        $TenantId = $CreateParameters.IdentitySources.ExternalTenantId
+        $url = $Global:MSCloudLoginConnectionProfile.MicrosoftGraph.ResourceUrl + "beta/tenantRelationships/microsoft.graph.findTenantInformationByTenantId(tenantId='$tenantid')"
+        $DomainName = (Invoke-MgGraphRequest -Method 'GET' -Uri $url).defaultDomainName
+        $newConnectedOrganization = New-MgBetaEntitlementManagementConnectedOrganization -Description $CreateParameters.Description -DisplayName $CreateParameters.DisplayName -State $CreateParameters.State -DomainName $DomainName
 
         foreach ($sponsor in $ExternalSponsors)
         {
diff --git a/Tests/Unit/Microsoft365DSC/Microsoft365DSC.AADEntitlementManagementConnectedOrganization.Tests.ps1 b/Tests/Unit/Microsoft365DSC/Microsoft365DSC.AADEntitlementManagementConnectedOrganization.Tests.ps1
index 9deb3692a5..7ead2f0a36 100644
--- a/Tests/Unit/Microsoft365DSC/Microsoft365DSC.AADEntitlementManagementConnectedOrganization.Tests.ps1
+++ b/Tests/Unit/Microsoft365DSC/Microsoft365DSC.AADEntitlementManagementConnectedOrganization.Tests.ps1
@@ -51,6 +51,9 @@ Describe -Name $Global:DscHelper.DescribeHeader -Fixture {
             Mock -CommandName New-M365DSCConnection -MockWith {
                 return 'Credentials'
             }
+            Mock -CommandName Invoke-MgGraphRequest -MockWith {
+                return @{}
+            }
 
             # Mock Write-Host to hide output during the tests
             Mock -CommandName Write-Host -MockWith {