diff --git a/azurerm/resource_arm_virtual_machine.go b/azurerm/resource_arm_virtual_machine.go
index 4cabbf3e99b2..c3b9455a40f3 100644
--- a/azurerm/resource_arm_virtual_machine.go
+++ b/azurerm/resource_arm_virtual_machine.go
@@ -245,6 +245,7 @@ func resourceArmVirtualMachine() *schema.Resource {
 						"create_option": {
 							Type:             schema.TypeString,
 							Required:         true,
+							ForceNew:         true,
 							DiffSuppressFunc: ignoreCaseDiffSuppressFunc,
 						},
 
diff --git a/azurerm/resource_arm_virtual_machine_managed_disks_test.go b/azurerm/resource_arm_virtual_machine_managed_disks_test.go
index 28915a897fb4..aece85256717 100644
--- a/azurerm/resource_arm_virtual_machine_managed_disks_test.go
+++ b/azurerm/resource_arm_virtual_machine_managed_disks_test.go
@@ -225,6 +225,37 @@ func TestAccAzureRMVirtualMachine_bugAzureRM33(t *testing.T) {
 	})
 }
 
+func TestAccAzureRMVirtualMachine_changeStorageDataDiskCreationOption(t *testing.T) {
+	var afterCreate, afterUpdate compute.VirtualMachine
+	resourceName := "azurerm_virtual_machine.test"
+	ri := acctest.RandInt()
+	location := testLocation()
+	preConfig := testAccAzureRMVirtualMachine_basicLinuxMachine_managedDisk_empty(ri, location)
+	postConfig := testAccAzureRMVirtualMachine_basicLinuxMachine_managedDisk_attach(ri, location)
+	resource.Test(t, resource.TestCase{
+		PreCheck:     func() { testAccPreCheck(t) },
+		Providers:    testAccProviders,
+		CheckDestroy: testCheckAzureRMVirtualMachineDestroy,
+		Steps: []resource.TestStep{
+			{
+				Config: preConfig,
+				Check: resource.ComposeTestCheckFunc(
+					testCheckAzureRMVirtualMachineExists(resourceName, &afterCreate),
+					resource.TestCheckResourceAttr(resourceName, "storage_data_disk.0.create_option", "Empty"),
+				),
+			},
+			{
+				Config: postConfig,
+				Check: resource.ComposeTestCheckFunc(
+					testCheckAzureRMVirtualMachineExists(resourceName, &afterUpdate),
+					testAccCheckVirtualMachineRecreated(t, &afterCreate, &afterUpdate),
+					resource.TestCheckResourceAttr(resourceName, "storage_data_disk.0.create_option", "Attach"),
+				),
+			},
+		},
+	})
+}
+
 func testAccAzureRMVirtualMachine_basicLinuxMachine_managedDisk_explicit(rInt int, location string) string {
 	return fmt.Sprintf(`
 resource "azurerm_resource_group" "test" {
@@ -460,6 +491,89 @@ resource "azurerm_virtual_machine" "test" {
 `, rInt, location, rInt, rInt, rInt, rInt, rInt, rInt, rInt)
 }
 
+func testAccAzureRMVirtualMachine_basicLinuxMachine_managedDisk_empty(rInt int, location string) string {
+	return fmt.Sprintf(`
+resource "azurerm_resource_group" "test" {
+  name     = "acctestRG-%d"
+  location = "%s"
+}
+
+resource "azurerm_virtual_network" "test" {
+  name                = "acctvn-%d"
+  address_space       = ["10.0.0.0/16"]
+  location            = "${azurerm_resource_group.test.location}"
+  resource_group_name = "${azurerm_resource_group.test.name}"
+}
+
+resource "azurerm_subnet" "test" {
+  name                 = "acctsub-%d"
+  resource_group_name  = "${azurerm_resource_group.test.name}"
+  virtual_network_name = "${azurerm_virtual_network.test.name}"
+  address_prefix       = "10.0.2.0/24"
+}
+
+resource "azurerm_network_interface" "test" {
+  name                = "acctni-%d"
+  location            = "${azurerm_resource_group.test.location}"
+  resource_group_name = "${azurerm_resource_group.test.name}"
+
+  ip_configuration {
+    name                          = "testconfiguration1"
+    subnet_id                     = "${azurerm_subnet.test.id}"
+    private_ip_address_allocation = "dynamic"
+  }
+}
+
+resource "azurerm_virtual_machine" "test" {
+  name                  = "acctvm-%d"
+  location              = "${azurerm_resource_group.test.location}"
+  resource_group_name   = "${azurerm_resource_group.test.name}"
+  network_interface_ids = ["${azurerm_network_interface.test.id}"]
+  vm_size               = "Standard_D1_v2"
+
+  delete_os_disk_on_termination = true
+
+  storage_image_reference {
+    publisher = "Canonical"
+    offer     = "UbuntuServer"
+    sku       = "16.04-LTS"
+    version   = "latest"
+  }
+
+  storage_os_disk {
+    name              = "osd-%d"
+    caching           = "ReadWrite"
+    create_option     = "FromImage"
+    disk_size_gb      = "50"
+    managed_disk_type = "Standard_LRS"
+  }
+
+  storage_data_disk {
+    name              = "acctmd-%d"
+    create_option     = "Empty"
+    disk_size_gb      = "1"
+    managed_disk_type = "Standard_LRS"
+    lun               = 0
+  }
+
+  os_profile {
+    computer_name  = "hn%d"
+    admin_username = "testadmin"
+    admin_password = "Password1234!"
+  }
+
+  os_profile_linux_config {
+    disable_password_authentication = false
+  }
+
+  tags {
+    environment = "Production"
+    cost-center = "Ops"
+  }
+}
+`, rInt, location, rInt, rInt, rInt, rInt, rInt, rInt, rInt)
+}
+
 func testAccAzureRMVirtualMachine_basicLinuxMachine_managedDisk_DestroyDisksBefore(rInt int, location string) string {
 	return fmt.Sprintf(`
 resource "azurerm_resource_group" "test" {