diff --git a/CHANGELOG.md b/CHANGELOG.md
index 687200914169..6a4e92709a4c 100644
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -1,5 +1,9 @@
 ## 2.94.0 (Unreleased)
 
+UPGRADE NOTES:
+
+* `azurerm_api_management_policy` - resources that were created with v2.92.0 will be marked as tainted due to a [bug](https://github.com/hashicorp/terraform-provider-azurerm/issues/15042). This version addresses the underlying issue, but the actual resource needs to either be untainted (via `terraform untaint`) or allow Terraform to delete the resource and create it again.
+
 FEATURES:
 
 **New Data Source:** `azurerm_linux_function_app` [GH-15009]
@@ -11,6 +15,7 @@ ENHANCEMENTS:
 
 BUG FIXES:
 
+* `azurerm_api_management_policy` - fixing the Resource ID for `api_management_policy` when this was provisioned using version `2.92.0` of the Azure Provider [GH-15060]
 * `azurerm_bastion_host` - Fix crash by adding nil check for `copy_paste_enabled` [GH-15074]
 * `azurerm_dev_test_lab` - fix the unexpected diff on `key_vault_id` [GH-15054]
 * `azurerm_subscription_cost_management_export` - fix the update method by sending the ETag when updating a cost management export [GH-15017]
diff --git a/internal/services/apimanagement/api_management_policy_resource.go b/internal/services/apimanagement/api_management_policy_resource.go
index fd21bbe6555d..da39dea4d4a3 100644
--- a/internal/services/apimanagement/api_management_policy_resource.go
+++ b/internal/services/apimanagement/api_management_policy_resource.go
@@ -9,6 +9,7 @@ import (
 	"github.com/Azure/azure-sdk-for-go/services/apimanagement/mgmt/2021-08-01/apimanagement"
 	"github.com/hashicorp/terraform-provider-azurerm/helpers/azure"
 	"github.com/hashicorp/terraform-provider-azurerm/internal/clients"
+	"github.com/hashicorp/terraform-provider-azurerm/internal/services/apimanagement/migration"
 	"github.com/hashicorp/terraform-provider-azurerm/internal/services/apimanagement/parse"
 	"github.com/hashicorp/terraform-provider-azurerm/internal/tf/pluginsdk"
 	"github.com/hashicorp/terraform-provider-azurerm/internal/timeouts"
@@ -24,6 +25,11 @@ func resourceApiManagementPolicy() *pluginsdk.Resource {
 		// TODO: replace this with an importer which validates the ID during import
 		Importer: pluginsdk.DefaultImporter(),
 
+		SchemaVersion: 1,
+		StateUpgraders: pluginsdk.StateUpgrades(map[int]pluginsdk.StateUpgrade{
+			0: migration.ApiManagementApiPolicyV0ToV1{},
+		}),
+
 		Timeouts: &pluginsdk.ResourceTimeout{
 			Create: pluginsdk.DefaultTimeout(30 * time.Minute),
 			Read:   pluginsdk.DefaultTimeout(5 * time.Minute),
@@ -64,12 +70,12 @@ func resourceApiManagementPolicyCreateUpdate(d *pluginsdk.ResourceData, meta int
 	defer cancel()
 
 	apiManagementID := d.Get("api_management_id").(string)
-	id, err := parse.ApiManagementID(apiManagementID)
+	apiMgmtId, err := parse.ApiManagementID(apiManagementID)
 	if err != nil {
 		return err
 	}
-	resourceGroup := id.ResourceGroup
-	serviceName := id.ServiceName
+	resourceGroup := apiMgmtId.ResourceGroup
+	serviceName := apiMgmtId.ServiceName
 
 	/*
 		Other resources would have a check for d.IsNewResource() at this location, and would error out using `tf.ImportAsExistsError` if the resource already existed.
@@ -105,10 +111,12 @@ func resourceApiManagementPolicyCreateUpdate(d *pluginsdk.ResourceData, meta int
 		return fmt.Errorf("Either `xml_content` or `xml_link` must be set")
 	}
 
-	if _, err := client.CreateOrUpdate(ctx, resourceGroup, serviceName, parameters, ""); err != nil {
+	_, err = client.CreateOrUpdate(ctx, resourceGroup, serviceName, parameters, "")
+	if err != nil {
 		return fmt.Errorf("creating or updating Policy (Resource Group %q / API Management Service %q): %+v", resourceGroup, serviceName, err)
 	}
 
+	id := parse.NewPolicyID(apiMgmtId.SubscriptionId, apiMgmtId.ResourceGroup, apiMgmtId.ServiceName, "policy")
 	d.SetId(id.ID())
 
 	return resourceApiManagementPolicyRead(d, meta)
diff --git a/internal/services/apimanagement/migration/policy.go b/internal/services/apimanagement/migration/policy.go
new file mode 100644
index 000000000000..c52c6e5e4898
--- /dev/null
+++ b/internal/services/apimanagement/migration/policy.go
@@ -0,0 +1,61 @@
+package migration
+
+import (
+	"context"
+	"fmt"
+	"html"
+
+	"github.com/Azure/azure-sdk-for-go/services/apimanagement/mgmt/2021-08-01/apimanagement"
+	"github.com/hashicorp/terraform-provider-azurerm/internal/clients"
+	"github.com/hashicorp/terraform-provider-azurerm/internal/services/apimanagement/parse"
+	"github.com/hashicorp/terraform-provider-azurerm/internal/tf/pluginsdk"
+)
+
+var _ pluginsdk.StateUpgrade = ApiManagementApiPolicyV0ToV1{}
+
+type ApiManagementApiPolicyV0ToV1 struct{}
+
+func (ApiManagementApiPolicyV0ToV1) UpgradeFunc() pluginsdk.StateUpgraderFunc {
+	return func(ctx context.Context, rawState map[string]interface{}, meta interface{}) (map[string]interface{}, error) {
+		apiMgmtId, err := parse.ApiManagementID(rawState["id"].(string))
+		if err != nil {
+			return rawState, nil
+		}
+		id := parse.NewPolicyID(apiMgmtId.SubscriptionId, apiMgmtId.ResourceGroup, apiMgmtId.ServiceName, "policy")
+		rawState["id"] = id.ID()
+
+		client := meta.(*clients.Client).ApiManagement.PolicyClient
+		resp, err := client.Get(ctx, id.ResourceGroup, id.ServiceName, apimanagement.PolicyExportFormatXML)
+		if err != nil {
+			return nil, fmt.Errorf("making Read request for API Management Policy (Resource Group %q / API Management Service %q / API %q): %+v", id.ResourceGroup, id.ServiceName, id.Name, err)
+		}
+
+		if properties := resp.PolicyContractProperties; properties != nil {
+			// when you submit an `xml_link` to the API, the API downloads this link and stores it as `xml_content`
+			// as such there is no way to set `xml_link` and we'll let Terraform handle it
+			rawState["xml_content"] = html.UnescapeString(*properties.Value)
+		}
+		return rawState, nil
+	}
+}
+
+func (ApiManagementApiPolicyV0ToV1) Schema() map[string]*pluginsdk.Schema {
+	return map[string]*pluginsdk.Schema{
+		"api_management_id": {
+			Type:     pluginsdk.TypeString,
+			Required: true,
+			ForceNew: true,
+		},
+
+		"xml_content": {
+			Type:     pluginsdk.TypeString,
+			Optional: true,
+			Computed: true,
+		},
+
+		"xml_link": {
+			Type:     pluginsdk.TypeString,
+			Optional: true,
+		},
+	}
+}