diff --git a/azurerm/resource_arm_postgresql_server_test.go b/azurerm/resource_arm_postgresql_server_test.go
index 9ad39406a6632..974d6d06cc394 100644
--- a/azurerm/resource_arm_postgresql_server_test.go
+++ b/azurerm/resource_arm_postgresql_server_test.go
@@ -124,7 +124,35 @@ func TestAccAzureRMPostgreSQLServer_updatePassword(t *testing.T) {
 	ri := acctest.RandInt()
 	location := testLocation()
 	config := testAccAzureRMPostgreSQLServer_basicNinePointSix(ri, location)
-	updatedConfig := testAccAzureRMPostgreSQLServer_basicNinePointSixUpdated(ri, location)
+	updatedConfig := testAccAzureRMPostgreSQLServer_basicNinePointSixUpdatedPassword(ri, location)
+
+	resource.Test(t, resource.TestCase{
+		PreCheck:     func() { testAccPreCheck(t) },
+		Providers:    testAccProviders,
+		CheckDestroy: testCheckAzureRMPostgreSQLServerDestroy,
+		Steps: []resource.TestStep{
+			{
+				Config: config,
+				Check: resource.ComposeTestCheckFunc(
+					testCheckAzureRMPostgreSQLServerExists(resourceName),
+				),
+			},
+			{
+				Config: updatedConfig,
+				Check: resource.ComposeTestCheckFunc(
+					testCheckAzureRMPostgreSQLServerExists(resourceName),
+				),
+			},
+		},
+	})
+}
+
+func TestAccAzureRMPostgreSQLServer_updatePassword(t *testing.T) {
+	resourceName := "azurerm_postgresql_server.test"
+	ri := acctest.RandInt()
+	location := testLocation()
+	config := testAccAzureRMPostgreSQLServer_basicNinePointSix(ri, location)
+	updatedConfig := testAccAzureRMPostgreSQLServer_basicNinePointSixUpdatedSKU(ri, location)
 
 	resource.Test(t, resource.TestCase{
 		PreCheck:     func() { testAccPreCheck(t) },
@@ -271,7 +299,7 @@ resource "azurerm_postgresql_server" "test" {
 `, rInt, location, rInt)
 }
 
-func testAccAzureRMPostgreSQLServer_basicNinePointSixUpdated(rInt int, location string) string {
+func testAccAzureRMPostgreSQLServer_basicNinePointSixUpdatedPassword(rInt int, location string) string {
 	return fmt.Sprintf(`
 resource "azurerm_resource_group" "test" {
   name     = "acctestRG-%d"
@@ -284,8 +312,8 @@ resource "azurerm_postgresql_server" "test" {
   resource_group_name = "${azurerm_resource_group.test.name}"
 
   sku {
-    name     = "B_Gen4_1"
-    capacity = 1
+    name     = "B_Gen4_2"
+    capacity = 2
     tier     = "Basic"
     family   = "Gen4"
   }
@@ -305,6 +333,39 @@ resource "azurerm_postgresql_server" "test" {
 `, rInt, location, rInt)
 }
 
+func testAccAzureRMPostgreSQLServer_basicNinePointSixUpdatedSKU(rInt int, location string) string {
+	return fmt.Sprintf(`
+resource "azurerm_resource_group" "test" {
+  name     = "acctestRG-%d"
+  location = "%s"
+}
+
+resource "azurerm_postgresql_server" "test" {
+  name                = "acctestpsqlsvr-%d"
+  location            = "${azurerm_resource_group.test.location}"
+  resource_group_name = "${azurerm_resource_group.test.name}"
+
+  sku {
+    name     = "B_Gen4_1"
+    capacity = 1
+    tier     = "Basic"
+    family   = "Gen4"
+  }
+
+  storage_profile {
+    storage_mb = 51200
+    backup_retention_days = 7
+    geo_redundant_backup = "Disabled"
+  }
+
+  administrator_login          = "acctestun"
+  administrator_login_password = "H@Sh1CoR3!"
+  version                      = "9.6"
+  ssl_enforcement              = "Enabled"
+}
+`, rInt, location, rInt)
+}
+
 func testAccAzureRMPostgreSQLServer_basicMaxStorage(rInt int, location string) string {
 	return fmt.Sprintf(`
 resource "azurerm_resource_group" "test" {