diff --git a/azurerm/internal/services/apimanagement/resource_arm_api_management.go b/azurerm/internal/services/apimanagement/resource_arm_api_management.go
index 8beb983b5f2f..42e662398054 100644
--- a/azurerm/internal/services/apimanagement/resource_arm_api_management.go
+++ b/azurerm/internal/services/apimanagement/resource_arm_api_management.go
@@ -72,6 +72,7 @@ func resourceArmApiManagementService() *schema.Resource {
 				Type:     schema.TypeString,
 				Required: true,
 				ValidateFunc: azure.MinCapacitySkuNameInSlice([]string{
+					string(apimanagement.SkuTypeConsumption),
 					string(apimanagement.SkuTypeDeveloper),
 					string(apimanagement.SkuTypeBasic),
 					string(apimanagement.SkuTypeStandard),
diff --git a/website/docs/r/api_management.html.markdown b/website/docs/r/api_management.html.markdown
index 796b47c74638..26aa3063d145 100644
--- a/website/docs/r/api_management.html.markdown
+++ b/website/docs/r/api_management.html.markdown
@@ -55,7 +55,7 @@ The following arguments are supported:
 
 * `publisher_email` - (Required) The email of publisher/company.
 
-* `sku_name` - (Required) `sku_name` is a string consisting of two parts separated by an underscore(\_). The fist part is the `name`, valid values include: `Developer`, `Basic`, `Standard` and `Premium`. The second part is the `capacity` (e.g. the number of deployed units of the `sku`), which must be a positive `integer` (e.g. `Developer_1`).
+* `sku_name` - (Required) `sku_name` is a string consisting of two parts separated by an underscore(\_). The fist part is the `name`, valid values include: `Consumption`, `Developer`, `Basic`, `Standard` and `Premium`. The second part is the `capacity` (e.g. the number of deployed units of the `sku`), which must be a positive `integer` (e.g. `Developer_1`).
 
 ---