diff --git a/docs/resources/stream.md b/docs/resources/stream.md
index 88440de244..2e193711a9 100644
--- a/docs/resources/stream.md
+++ b/docs/resources/stream.md
@@ -20,9 +20,10 @@ resource snowflake_stream stream {
   schema   = "schema"
   name     = "stream"
 
-  on_table    = "table"
-  append_only = false
-  insert_only = false
+  on_external_table = true
+  on_table          = "table"
+  append_only       = false
+  insert_only       = false
 
   owner = "role1"
 }
@@ -43,6 +44,7 @@ resource snowflake_stream stream {
 - **comment** (String) Specifies a comment for the stream.
 - **id** (String) The ID of this resource.
 - **insert_only** (Boolean) Create an insert only stream type.
+- **on_external_table** (Boolean) Specifies whether the table being monitored is an external table.
 - **on_table** (String) Name of the table the stream will monitor.
 - **show_initial_rows** (Boolean) Specifies whether to return all existing rows in the source table as row inserts the first time the stream is consumed.
 
diff --git a/examples/resources/snowflake_stream/resource.tf b/examples/resources/snowflake_stream/resource.tf
index d490d3433a..1530d51f04 100644
--- a/examples/resources/snowflake_stream/resource.tf
+++ b/examples/resources/snowflake_stream/resource.tf
@@ -5,9 +5,10 @@ resource snowflake_stream stream {
   schema   = "schema"
   name     = "stream"
 
-  on_table    = "table"
-  append_only = false
-  insert_only = false
+  on_external_table = true
+  on_table          = "table"
+  append_only       = false
+  insert_only       = false
 
   owner = "role1"
 }
diff --git a/pkg/resources/stream.go b/pkg/resources/stream.go
index f8bc7aaf91..177cfa41f6 100644
--- a/pkg/resources/stream.go
+++ b/pkg/resources/stream.go
@@ -48,6 +48,12 @@ var streamSchema = map[string]*schema.Schema{
 		ForceNew:    true,
 		Description: "Name of the table the stream will monitor.",
 	},
+	"on_external_table": {
+		Type:        schema.TypeBool,
+		Optional:    true,
+		ForceNew:    true,
+		Description: "Specifies whether the table being monitored is an external table.",
+	},
 	"append_only": {
 		Type:        schema.TypeBool,
 		Optional:    true,
@@ -175,6 +181,7 @@ func CreateStream(d *schema.ResourceData, meta interface{}) error {
 	schema := d.Get("schema").(string)
 	name := d.Get("name").(string)
 	onTable := d.Get("on_table").(string)
+	onExternalTable := d.Get("on_external_table").(bool)
 	appendOnly := d.Get("append_only").(bool)
 	insertOnly := d.Get("insert_only").(bool)
 	showInitialRows := d.Get("show_initial_rows").(bool)
@@ -186,6 +193,7 @@ func CreateStream(d *schema.ResourceData, meta interface{}) error {
 		return err
 	}
 
+	builder.WithExternalTable(onExternalTable)
 	builder.WithOnTable(resultOnTable.DatabaseName, resultOnTable.SchemaName, resultOnTable.OnTableName)
 	builder.WithAppendOnly(appendOnly)
 	builder.WithInsertOnly(insertOnly)
diff --git a/pkg/resources/stream_acceptance_test.go b/pkg/resources/stream_acceptance_test.go
index d271c377bf..896e5f5f0a 100644
--- a/pkg/resources/stream_acceptance_test.go
+++ b/pkg/resources/stream_acceptance_test.go
@@ -11,6 +11,8 @@ import (
 
 func TestAcc_Stream(t *testing.T) {
 	accName := strings.ToUpper(acctest.RandStringFromCharSet(10, acctest.CharSetAlpha))
+	// Ref: https://github.com/chanzuckerberg/terraform-provider-snowflake/pull/661#discussion_r696067813
+	accNameExternalTable := strings.ToUpper(acctest.RandStringFromCharSet(10, acctest.CharSetAlpha))
 
 	resource.ParallelTest(t, resource.TestCase{
 		Providers: providers(),
@@ -40,6 +42,19 @@ func TestAcc_Stream(t *testing.T) {
 					checkBool("snowflake_stream.test_stream", "show_initial_rows", false),
 				),
 			},
+			{
+				Config: externalTableStreamConfig(accNameExternalTable),
+				Check: resource.ComposeTestCheckFunc(
+					resource.TestCheckResourceAttr("snowflake_stream.test_stream", "name", accNameExternalTable),
+					resource.TestCheckResourceAttr("snowflake_stream.test_stream", "database", accNameExternalTable),
+					resource.TestCheckResourceAttr("snowflake_stream.test_stream", "schema", accNameExternalTable),
+					resource.TestCheckResourceAttr("snowflake_stream.test_stream", "on_table", fmt.Sprintf("%s.%s.%s", accNameExternalTable, accNameExternalTable, "STREAM_ON_EXTERNAL_TABLE")),
+					resource.TestCheckResourceAttr("snowflake_stream.test_stream", "comment", "Terraform acceptance test"),
+					checkBool("snowflake_stream.test_stream", "on_external_table", true),
+					checkBool("snowflake_stream.test_stream", "append_only", false),
+					checkBool("snowflake_stream.test_stream", "show_initial_rows", false),
+				),
+			},
 		},
 	})
 }
@@ -90,3 +105,67 @@ resource "snowflake_stream" "test_stream" {
 `
 	return fmt.Sprintf(s, name, name, name, append_only_config)
 }
+
+func externalTableStreamConfig(name string) string {
+	// Refer to external_table_acceptance_test.go for the original source on
+	// external table resources and dependents (modified slightly here).
+	locations := []string{"s3://com.example.bucket/prefix"}
+	s := `
+resource "snowflake_database" "test" {
+	name = "%v"
+	comment = "Terraform acceptance test"
+}
+
+resource "snowflake_schema" "test" {
+	name = "%v"
+	database = snowflake_database.test.name
+	comment = "Terraform acceptance test"
+}
+
+resource "snowflake_stage" "test" {
+	name = "%v"
+	url = "s3://com.example.bucket/prefix"
+	database = snowflake_database.test.name
+	schema = snowflake_schema.test.name
+	comment = "Terraform acceptance test"
+	storage_integration = snowflake_storage_integration.external_table_stream_integration.name
+}
+
+resource "snowflake_storage_integration" "external_table_stream_integration" {
+	name = "%v"
+	storage_allowed_locations = %q
+	storage_provider = "S3"
+	storage_aws_role_arn = "arn:aws:iam::000000000001:/role/test"
+}
+
+resource "snowflake_external_table" "test_external_stream_table" {
+	database = snowflake_database.test.name
+	schema   = snowflake_schema.test.name
+	name     = "STREAM_ON_EXTERNAL_TABLE"
+	comment  = "Terraform acceptance test"
+	column {
+		name = "column1"
+		type = "STRING"
+    as = "TO_VARCHAR(TO_TIMESTAMP_NTZ(value:unix_timestamp_property::NUMBER, 3), 'yyyy-mm-dd-hh')"
+	}
+	column {
+		name = "column2"
+		type = "TIMESTAMP_NTZ(9)"
+    as = "($1:'CreatedDate'::timestamp)"
+	}
+  file_format = "TYPE = CSV"
+  location = "@${snowflake_database.test.name}.${snowflake_schema.test.name}.${snowflake_stage.test.name}"
+}
+
+resource "snowflake_stream" "test_external_table_stream" {
+	database          = snowflake_database.test.name
+	schema            = snowflake_schema.test.name
+	name              = "%s"
+	comment           = "Terraform acceptance test"
+	on_external_table = true
+	on_table          = "${snowflake_database.test.name}.${snowflake_schema.test.name}.${snowflake_external_table.test_external_stream_table.name}"
+}
+`
+
+	return fmt.Sprintf(s, name, name, name, name, locations, name)
+}
diff --git a/pkg/resources/stream_test.go b/pkg/resources/stream_test.go
index 7a532049fc..621f8d45fd 100644
--- a/pkg/resources/stream_test.go
+++ b/pkg/resources/stream_test.go
@@ -42,6 +42,31 @@ func TestStreamCreate(t *testing.T) {
 	})
 }
 
+func TestStreamCreateOnExternalTable(t *testing.T) {
+	r := require.New(t)
+
+	in := map[string]interface{}{
+		"name":              "stream_name",
+		"database":          "database_name",
+		"schema":            "schema_name",
+		"comment":           "great comment",
+		"on_table":          "target_db.target_schema.target_table",
+		"on_external_table": true,
+		"append_only":       true,
+		"insert_only":       false,
+		"show_initial_rows": true,
+	}
+	d := stream(t, "database_name|schema_name|stream_name", in)
+
+	WithMockDb(t, func(db *sql.DB, mock sqlmock.Sqlmock) {
+		mock.ExpectExec(`CREATE STREAM "database_name"."schema_name"."stream_name" ON EXTERNAL TABLE "target_db"."target_schema"."target_table" COMMENT = 'great comment' APPEND_ONLY = true INSERT_ONLY = false SHOW_INITIAL_ROWS = true`).WillReturnResult(sqlmock.NewResult(1, 1))
+		expectStreamRead(mock)
+		err := resources.CreateStream(d, db)
+		r.NoError(err)
+		r.Equal("stream_name", d.Get("name").(string))
+	})
+}
+
 func expectStreamRead(mock sqlmock.Sqlmock) {
 	rows := sqlmock.NewRows([]string{"name", "database_name", "schema_name", "owner", "comment", "table_name", "type", "stale", "mode"}).AddRow("stream_name", "database_name", "schema_name", "owner_name", "grand comment", "target_table", "DELTA", false, "APPEND_ONLY")
 	mock.ExpectQuery(`SHOW STREAMS LIKE 'stream_name' IN DATABASE "database_name"`).WillReturnRows(rows)
diff --git a/pkg/snowflake/stream.go b/pkg/snowflake/stream.go
index 429d8de473..f20d03b599 100644
--- a/pkg/snowflake/stream.go
+++ b/pkg/snowflake/stream.go
@@ -15,6 +15,7 @@ type StreamBuilder struct {
 	name            string
 	db              string
 	schema          string
+	externalTable   bool
 	onTable         string
 	appendOnly      bool
 	insertOnly      bool
@@ -53,6 +54,11 @@ func (sb *StreamBuilder) WithOnTable(d string, s string, t string) *StreamBuilde
 	return sb
 }
 
+func (sb *StreamBuilder) WithExternalTable(b bool) *StreamBuilder {
+	sb.externalTable = b
+	return sb
+}
+
 func (sb *StreamBuilder) WithAppendOnly(b bool) *StreamBuilder {
 	sb.appendOnly = b
 	return sb
@@ -90,7 +96,13 @@ func (sb *StreamBuilder) Create() string {
 	q := strings.Builder{}
 	q.WriteString(fmt.Sprintf(`CREATE STREAM %v`, sb.QualifiedName()))
 
-	q.WriteString(fmt.Sprintf(` ON TABLE %v`, sb.onTable))
+	q.WriteString(` ON`)
+
+	if sb.externalTable {
+		q.WriteString(` EXTERNAL`)
+	}
+
+	q.WriteString(fmt.Sprintf(` TABLE %v`, sb.onTable))
 
 	if sb.comment != "" {
 		q.WriteString(fmt.Sprintf(` COMMENT = '%v'`, EscapeString(sb.comment)))
diff --git a/pkg/snowflake/stream_test.go b/pkg/snowflake/stream_test.go
index b8a5ad86c2..db61199aff 100644
--- a/pkg/snowflake/stream_test.go
+++ b/pkg/snowflake/stream_test.go
@@ -24,6 +24,9 @@ func TestStreamCreate(t *testing.T) {
 
 	s.WithInsertOnly(true)
 	r.Equal(s.Create(), `CREATE STREAM "test_db"."test_schema"."test_stream" ON TABLE "test_db"."test_schema"."test_target_table" COMMENT = 'Test Comment' APPEND_ONLY = true INSERT_ONLY = true SHOW_INITIAL_ROWS = true`)
+
+	s.WithExternalTable(true)
+	r.Equal(s.Create(), `CREATE STREAM "test_db"."test_schema"."test_stream" ON EXTERNAL TABLE "test_db"."test_schema"."test_target_table" COMMENT = 'Test Comment' APPEND_ONLY = true INSERT_ONLY = true SHOW_INITIAL_ROWS = true`)
 }
 
 func TestStreamChangeComment(t *testing.T) {