diff --git a/.changelog/5088.txt b/.changelog/5088.txt
new file mode 100644
index 00000000000..a5e61e1a3f9
--- /dev/null
+++ b/.changelog/5088.txt
@@ -0,0 +1,3 @@
+```release-note:bug
+Bigquery: fixed the permadiff bug on `location` of the `google_bigquery_dataset`
+```
diff --git a/google/resource_bigquery_dataset.go b/google/resource_bigquery_dataset.go
index c40f02a9509..4b467d7ff8e 100644
--- a/google/resource_bigquery_dataset.go
+++ b/google/resource_bigquery_dataset.go
@@ -162,9 +162,10 @@ organize and group your datasets`,
 				Elem: &schema.Schema{Type: schema.TypeString},
 			},
 			"location": {
-				Type:     schema.TypeString,
-				Optional: true,
-				ForceNew: true,
+				Type:             schema.TypeString,
+				Optional:         true,
+				ForceNew:         true,
+				DiffSuppressFunc: caseDiffSuppress,
 				Description: `The geographic location where the dataset should reside.
 See [official docs](https://cloud.google.com/bigquery/docs/dataset-locations).