diff --git a/azurerm/internal/services/applicationinsights/resource_arm_application_insights.go b/azurerm/internal/services/applicationinsights/resource_arm_application_insights.go
index e348c038a798..375b5d175ccf 100644
--- a/azurerm/internal/services/applicationinsights/resource_arm_application_insights.go
+++ b/azurerm/internal/services/applicationinsights/resource_arm_application_insights.go
@@ -85,6 +85,12 @@ func resourceArmApplicationInsights() *schema.Resource {
 				ValidateFunc: validation.FloatBetween(0, 100),
 			},
 
+			"disable_ip_masking": {
+				Type:     schema.TypeBool,
+				Optional: true,
+				Default:  false,
+			},
+
 			"tags": tags.Schema(),
 
 			"daily_data_cap_in_gb": {
@@ -141,6 +147,7 @@ func resourceArmApplicationInsightsCreateUpdate(d *schema.ResourceData, meta int
 
 	applicationType := d.Get("application_type").(string)
 	samplingPercentage := utils.Float(d.Get("sampling_percentage").(float64))
+	disableIpMasking := d.Get("disable_ip_masking").(bool)
 	location := azure.NormalizeLocation(d.Get("location").(string))
 	t := d.Get("tags").(map[string]interface{})
 
@@ -148,6 +155,7 @@ func resourceArmApplicationInsightsCreateUpdate(d *schema.ResourceData, meta int
 		ApplicationID:      &name,
 		ApplicationType:    insights.ApplicationType(applicationType),
 		SamplingPercentage: samplingPercentage,
+		DisableIPMasking:   utils.Bool(disableIpMasking),
 	}
 
 	if v, ok := d.GetOk("retention_in_days"); ok {
@@ -243,6 +251,7 @@ func resourceArmApplicationInsightsRead(d *schema.ResourceData, meta interface{}
 		d.Set("app_id", props.AppID)
 		d.Set("instrumentation_key", props.InstrumentationKey)
 		d.Set("sampling_percentage", props.SamplingPercentage)
+		d.Set("disable_ip_masking", props.DisableIPMasking)
 		if v := props.RetentionInDays; v != nil {
 			d.Set("retention_in_days", v)
 		}
diff --git a/azurerm/internal/services/applicationinsights/tests/resource_arm_application_insights_test.go b/azurerm/internal/services/applicationinsights/tests/resource_arm_application_insights_test.go
index 22ffbb3053b1..564db6f2c754 100644
--- a/azurerm/internal/services/applicationinsights/tests/resource_arm_application_insights_test.go
+++ b/azurerm/internal/services/applicationinsights/tests/resource_arm_application_insights_test.go
@@ -315,6 +315,7 @@ resource "azurerm_application_insights" "test" {
   sampling_percentage                   = 50
   daily_data_cap_in_gb                  = 50
   daily_data_cap_notifications_disabled = true
+  disable_ip_masking                    = true
 
   tags = {
     Hello = "World"
diff --git a/website/docs/r/application_insights.html.markdown b/website/docs/r/application_insights.html.markdown
index c254d880f8e2..8bdbd7103347 100644
--- a/website/docs/r/application_insights.html.markdown
+++ b/website/docs/r/application_insights.html.markdown
@@ -56,6 +56,8 @@ The following arguments are supported:
 
 * `sampling_percentage` - (Optional) Specifies the percentage of the data produced by the monitored application that is sampled for Application Insights telemetry.
 
+* `disable_ip_masking` - (Optional) By default the real client ip is masked as `0.0.0.0` in the logs. Use this argument to disable masking and log the real client ip. Defaults to `false`.
+
 * `tags` - (Optional) A mapping of tags to assign to the resource.
 
 ## Attributes Reference