diff --git a/public/app/plugins/datasource/grafana-azure-monitor-datasource/azure_monitor/azure_monitor_datasource.ts b/public/app/plugins/datasource/grafana-azure-monitor-datasource/azure_monitor/azure_monitor_datasource.ts
index 204c0d1f2db..6a80f8484df 100644
--- a/public/app/plugins/datasource/grafana-azure-monitor-datasource/azure_monitor/azure_monitor_datasource.ts
+++ b/public/app/plugins/datasource/grafana-azure-monitor-datasource/azure_monitor/azure_monitor_datasource.ts
@@ -1,7 +1,7 @@
 import { find, startsWith } from 'lodash';
 
 import { DataSourceInstanceSettings, ScopedVars } from '@grafana/data';
-import { DataSourceWithBackend, getTemplateSrv } from '@grafana/runtime';
+import { DataSourceWithBackend, getTemplateSrv, TemplateSrv } from '@grafana/runtime';
 import { getTimeSrv, TimeSrv } from 'app/features/dashboard/services/TimeSrv';
 
 import { resourceTypeDisplayNames, supportedMetricNamespaces } from '../azureMetadata';
@@ -42,11 +42,13 @@ export default class AzureMonitorDatasource extends DataSourceWithBackend<AzureM
   declare resourceGroup: string;
   declare resourceName: string;
   timeSrv: TimeSrv;
+  templateSrv: TemplateSrv;
 
   constructor(private instanceSettings: DataSourceInstanceSettings<AzureDataSourceJsonData>) {
     super(instanceSettings);
 
     this.timeSrv = getTimeSrv();
+    this.templateSrv = getTemplateSrv();
     this.defaultSubscriptionId = instanceSettings.jsonData.subscriptionId;
 
     const cloud = getAzureCloud(instanceSettings);
@@ -244,7 +246,8 @@ export default class AzureMonitorDatasource extends DataSourceWithBackend<AzureM
     const url = UrlBuilder.buildAzureMonitorGetMetricNamespacesUrl(
       this.resourcePath,
       this.apiPreviewVersion,
-      this.replaceTemplateVariables(query)
+      this.replaceTemplateVariables(query),
+      this.templateSrv
     );
     return this.getResource(url)
       .then((result: AzureMonitorMetricNamespacesResponse) => {
@@ -273,7 +276,8 @@ export default class AzureMonitorDatasource extends DataSourceWithBackend<AzureM
     const url = UrlBuilder.buildAzureMonitorGetMetricNamesUrl(
       this.resourcePath,
       this.apiVersion,
-      this.replaceTemplateVariables(query)
+      this.replaceTemplateVariables(query),
+      this.templateSrv
     );
     return this.getResource(url).then((result: AzureMonitorMetricNamesResponse) => {
       return ResponseParser.parseResponseValues(result, 'name.localizedValue', 'name.value');
@@ -285,7 +289,8 @@ export default class AzureMonitorDatasource extends DataSourceWithBackend<AzureM
     const url = UrlBuilder.buildAzureMonitorGetMetricNamesUrl(
       this.resourcePath,
       this.apiVersion,
-      this.replaceTemplateVariables(query)
+      this.replaceTemplateVariables(query),
+      this.templateSrv
     );
     return this.getResource(url).then((result: AzureMonitorMetricsMetadataResponse) => {
       return ResponseParser.parseMetadata(result, metricName);
diff --git a/public/app/plugins/datasource/grafana-azure-monitor-datasource/azure_monitor/url_builder.test.ts b/public/app/plugins/datasource/grafana-azure-monitor-datasource/azure_monitor/url_builder.test.ts
index 0e3a01293ef..a7103ef1046 100644
--- a/public/app/plugins/datasource/grafana-azure-monitor-datasource/azure_monitor/url_builder.test.ts
+++ b/public/app/plugins/datasource/grafana-azure-monitor-datasource/azure_monitor/url_builder.test.ts
@@ -1,33 +1,96 @@
+import { getTemplateSrv } from '@grafana/runtime';
+
 import UrlBuilder from './url_builder';
 
+let replaceMock = jest.fn().mockImplementation((s: string) => s);
+
+jest.mock('@grafana/runtime', () => {
+  const original = jest.requireActual('@grafana/runtime');
+  return {
+    ...original,
+    getTemplateSrv: () => ({
+      replace: replaceMock,
+    }),
+  };
+});
+
 describe('AzureMonitorUrlBuilder', () => {
+  let templateSrv = getTemplateSrv();
   describe('buildResourceUri', () => {
     it('builds a resource uri when the required properties are provided', () => {
-      expect(UrlBuilder.buildResourceUri('sub', 'group', 'Microsoft.NetApp/netAppAccounts', 'name')).toEqual(
-        '/subscriptions/sub/resourceGroups/group/providers/Microsoft.NetApp/netAppAccounts/name'
-      );
+      expect(
+        UrlBuilder.buildResourceUri('sub', 'group', 'Microsoft.NetApp/netAppAccounts', 'name', templateSrv)
+      ).toEqual('/subscriptions/sub/resourceGroups/group/providers/Microsoft.NetApp/netAppAccounts/name');
     });
 
     it('builds a resource uri correctly when a template variable is used as namespace', () => {
-      expect(UrlBuilder.buildResourceUri('sub', 'group', '$ns', 'name')).toEqual(
+      expect(UrlBuilder.buildResourceUri('sub', 'group', '$ns', 'name', templateSrv)).toEqual(
         '/subscriptions/sub/resourceGroups/group/providers/$ns/name'
       );
     });
 
     it('builds a resource uri correctly when the namespace includes a storage sub-resource', () => {
       expect(
-        UrlBuilder.buildResourceUri('sub', 'group', 'Microsoft.Storage/storageAccounts/tableServices', 'name')
+        UrlBuilder.buildResourceUri(
+          'sub',
+          'group',
+          'Microsoft.Storage/storageAccounts/tableServices',
+          'name',
+          templateSrv
+        )
       ).toEqual(
         '/subscriptions/sub/resourceGroups/group/providers/Microsoft.Storage/storageAccounts/name/tableServices/default'
       );
     });
+
+    describe('when using template variables', () => {
+      replaceMock = jest
+        .fn()
+        .mockImplementation((s: string) =>
+          s
+            .replace('$ns', 'Microsoft.Storage/storageAccounts')
+            .replace('$ns2', 'tableServices')
+            .replace('$rs', 'name')
+            .replace('$rs2', 'default')
+        );
+      templateSrv = getTemplateSrv();
+
+      it('builds a resource uri without specifying a subresource (default)', () => {
+        expect(UrlBuilder.buildResourceUri('sub', 'group', '$ns/tableServices', 'name', templateSrv)).toEqual(
+          '/subscriptions/sub/resourceGroups/group/providers/$ns/name/tableServices/default'
+        );
+      });
+
+      it('builds a resource uri specifying a subresource (default)', () => {
+        expect(UrlBuilder.buildResourceUri('sub', 'group', '$ns/tableServices', 'name/default', templateSrv)).toEqual(
+          '/subscriptions/sub/resourceGroups/group/providers/$ns/name/tableServices/default'
+        );
+      });
+
+      it('builds a resource uri specifying a resource template variable', () => {
+        expect(UrlBuilder.buildResourceUri('sub', 'group', '$ns/tableServices', '$rs/default', templateSrv)).toEqual(
+          '/subscriptions/sub/resourceGroups/group/providers/$ns/$rs/tableServices/default'
+        );
+      });
+
+      it('builds a resource uri specifying multiple template variables', () => {
+        expect(UrlBuilder.buildResourceUri('sub', 'group', '$ns/$ns2', '$rs/$rs2', templateSrv)).toEqual(
+          '/subscriptions/sub/resourceGroups/group/providers/$ns/$rs/$ns2/$rs2'
+        );
+      });
+    });
   });
 
   describe('when a resource uri is provided', () => {
     it('builds a getMetricNamesnamespace url', () => {
-      const url = UrlBuilder.buildAzureMonitorGetMetricNamespacesUrl('', '2017-05-01-preview', {
-        resourceUri: '/subscriptions/sub/resource-uri/resource',
-      });
+      const url = UrlBuilder.buildAzureMonitorGetMetricNamespacesUrl(
+        '',
+        '2017-05-01-preview',
+        {
+          resourceUri: '/subscriptions/sub/resource-uri/resource',
+        },
+        templateSrv
+      );
       expect(url).toBe(
         '/subscriptions/sub/resource-uri/resource/providers/microsoft.insights/metricNamespaces?api-version=2017-05-01-preview'
       );
@@ -36,10 +99,15 @@ describe('AzureMonitorUrlBuilder', () => {
 
   describe('when a resource uri and metric namespace is provided', () => {
     it('builds a getMetricNames url', () => {
-      const url = UrlBuilder.buildAzureMonitorGetMetricNamesUrl('', '2017-05-01-preview', {
-        resourceUri: '/subscriptions/sub/resource-uri/resource',
-        metricNamespace: 'Microsoft.Sql/servers',
-      });
+      const url = UrlBuilder.buildAzureMonitorGetMetricNamesUrl(
+        '',
+        '2017-05-01-preview',
+        {
+          resourceUri: '/subscriptions/sub/resource-uri/resource',
+          metricNamespace: 'Microsoft.Sql/servers',
+        },
+        templateSrv
+      );
       expect(url).toBe(
         '/subscriptions/sub/resource-uri/resource/providers/microsoft.insights/metricdefinitions?api-version=2017-05-01-preview&metricnamespace=Microsoft.Sql%2Fservers'
       );
@@ -49,12 +117,17 @@ describe('AzureMonitorUrlBuilder', () => {
   describe('Legacy query object', () => {
     describe('when metric definition is Microsoft.NetApp/netAppAccounts/capacityPools/volumes', () => {
       it('should build the getMetricNamespaces url in the even longer format', () => {
-        const url = UrlBuilder.buildAzureMonitorGetMetricNamespacesUrl('', '2017-05-01-preview', {
-          subscription: 'sub1',
-          resourceGroup: 'rg',
-          metricDefinition: 'Microsoft.NetApp/netAppAccounts/capacityPools/volumes',
-          resourceName: 'rn1/rn2/rn3',
-        });
+        const url = UrlBuilder.buildAzureMonitorGetMetricNamespacesUrl(
+          '',
+          '2017-05-01-preview',
+          {
+            subscription: 'sub1',
+            resourceGroup: 'rg',
+            metricDefinition: 'Microsoft.NetApp/netAppAccounts/capacityPools/volumes',
+            resourceName: 'rn1/rn2/rn3',
+          },
+          templateSrv
+        );
         expect(url).toBe(
           '/subscriptions/sub1/resourceGroups/rg/providers/Microsoft.NetApp/netAppAccounts/rn1/capacityPools/rn2/volumes/rn3/' +
             'providers/microsoft.insights/metricNamespaces?api-version=2017-05-01-preview'
@@ -64,12 +137,17 @@ describe('AzureMonitorUrlBuilder', () => {
 
     describe('when metric definition is Microsoft.Sql/servers/databases', () => {
       it('should build the getMetricNamespaces url in the longer format', () => {
-        const url = UrlBuilder.buildAzureMonitorGetMetricNamespacesUrl('', '2017-05-01-preview', {
-          subscription: 'sub1',
-          resourceGroup: 'rg',
-          metricDefinition: 'Microsoft.Sql/servers/databases',
-          resourceName: 'rn1/rn2',
-        });
+        const url = UrlBuilder.buildAzureMonitorGetMetricNamespacesUrl(
+          '',
+          '2017-05-01-preview',
+          {
+            subscription: 'sub1',
+            resourceGroup: 'rg',
+            metricDefinition: 'Microsoft.Sql/servers/databases',
+            resourceName: 'rn1/rn2',
+          },
+          templateSrv
+        );
         expect(url).toBe(
           '/subscriptions/sub1/resourceGroups/rg/providers/Microsoft.Sql/servers/rn1/databases/rn2/' +
             'providers/microsoft.insights/metricNamespaces?api-version=2017-05-01-preview'
@@ -79,12 +157,17 @@ describe('AzureMonitorUrlBuilder', () => {
 
     describe('when metric definition is Microsoft.Sql/servers', () => {
       it('should build the getMetricNamespaces url in the shorter format', () => {
-        const url = UrlBuilder.buildAzureMonitorGetMetricNamespacesUrl('', '2017-05-01-preview', {
-          subscription: 'sub1',
-          resourceGroup: 'rg',
-          metricDefinition: 'Microsoft.Sql/servers',
-          resourceName: 'rn',
-        });
+        const url = UrlBuilder.buildAzureMonitorGetMetricNamespacesUrl(
+          '',
+          '2017-05-01-preview',
+          {
+            subscription: 'sub1',
+            resourceGroup: 'rg',
+            metricDefinition: 'Microsoft.Sql/servers',
+            resourceName: 'rn',
+          },
+          templateSrv
+        );
         expect(url).toBe(
           '/subscriptions/sub1/resourceGroups/rg/providers/Microsoft.Sql/servers/rn/' +
             'providers/microsoft.insights/metricNamespaces?api-version=2017-05-01-preview'
@@ -94,13 +177,18 @@ describe('AzureMonitorUrlBuilder', () => {
 
     describe('when metric definition is Microsoft.NetApp/netAppAccounts/capacityPools/volumes and the metricNamespace is default', () => {
       it('should build the getMetricNames url in the even longer format', () => {
-        const url = UrlBuilder.buildAzureMonitorGetMetricNamesUrl('', '2017-05-01-preview', {
-          subscription: 'sub1',
-          resourceGroup: 'rg',
-          metricDefinition: 'Microsoft.NetApp/netAppAccounts/capacityPools/volumes',
-          resourceName: 'rn1/rn2/rn3',
-          metricNamespace: 'default',
-        });
+        const url = UrlBuilder.buildAzureMonitorGetMetricNamesUrl(
+          '',
+          '2017-05-01-preview',
+          {
+            subscription: 'sub1',
+            resourceGroup: 'rg',
+            metricDefinition: 'Microsoft.NetApp/netAppAccounts/capacityPools/volumes',
+            resourceName: 'rn1/rn2/rn3',
+            metricNamespace: 'default',
+          },
+          templateSrv
+        );
         expect(url).toBe(
           '/subscriptions/sub1/resourceGroups/rg/providers/Microsoft.NetApp/netAppAccounts/rn1/capacityPools/rn2/volumes/rn3/' +
             'providers/microsoft.insights/metricdefinitions?api-version=2017-05-01-preview&metricnamespace=default'
@@ -110,13 +198,18 @@ describe('AzureMonitorUrlBuilder', () => {
 
     describe('when metric definition is Microsoft.Sql/servers/databases and the metricNamespace is default', () => {
       it('should build the getMetricNames url in the longer format', () => {
-        const url = UrlBuilder.buildAzureMonitorGetMetricNamesUrl('', '2017-05-01-preview', {
-          subscription: 'sub1',
-          resourceGroup: 'rg',
-          metricDefinition: 'Microsoft.Sql/servers/databases',
-          resourceName: 'rn1/rn2',
-          metricNamespace: 'default',
-        });
+        const url = UrlBuilder.buildAzureMonitorGetMetricNamesUrl(
+          '',
+          '2017-05-01-preview',
+          {
+            subscription: 'sub1',
+            resourceGroup: 'rg',
+            metricDefinition: 'Microsoft.Sql/servers/databases',
+            resourceName: 'rn1/rn2',
+            metricNamespace: 'default',
+          },
+          templateSrv
+        );
         expect(url).toBe(
           '/subscriptions/sub1/resourceGroups/rg/providers/Microsoft.Sql/servers/rn1/databases/rn2/' +
             'providers/microsoft.insights/metricdefinitions?api-version=2017-05-01-preview&metricnamespace=default'
@@ -126,13 +219,18 @@ describe('AzureMonitorUrlBuilder', () => {
 
     describe('when metric definition is Microsoft.Sql/servers and the metricNamespace is default', () => {
       it('should build the getMetricNames url in the shorter format', () => {
-        const url = UrlBuilder.buildAzureMonitorGetMetricNamesUrl('', '2017-05-01-preview', {
-          subscription: 'sub1',
-          resourceGroup: 'rg',
-          metricDefinition: 'Microsoft.Sql/servers',
-          resourceName: 'rn',
-          metricNamespace: 'default',
-        });
+        const url = UrlBuilder.buildAzureMonitorGetMetricNamesUrl(
+          '',
+          '2017-05-01-preview',
+          {
+            subscription: 'sub1',
+            resourceGroup: 'rg',
+            metricDefinition: 'Microsoft.Sql/servers',
+            resourceName: 'rn',
+            metricNamespace: 'default',
+          },
+          templateSrv
+        );
         expect(url).toBe(
           '/subscriptions/sub1/resourceGroups/rg/providers/Microsoft.Sql/servers/rn/' +
             'providers/microsoft.insights/metricdefinitions?api-version=2017-05-01-preview&metricnamespace=default'
@@ -142,13 +240,18 @@ describe('AzureMonitorUrlBuilder', () => {
 
     describe('when metric definition is Microsoft.Storage/storageAccounts/blobServices and the metricNamespace is default', () => {
       it('should build the getMetricNames url in the longer format', () => {
-        const url = UrlBuilder.buildAzureMonitorGetMetricNamesUrl('', '2017-05-01-preview', {
-          subscription: 'sub1',
-          resourceGroup: 'rg',
-          metricDefinition: 'Microsoft.Storage/storageAccounts/blobServices',
-          resourceName: 'rn1/default',
-          metricNamespace: 'default',
-        });
+        const url = UrlBuilder.buildAzureMonitorGetMetricNamesUrl(
+          '',
+          '2017-05-01-preview',
+          {
+            subscription: 'sub1',
+            resourceGroup: 'rg',
+            metricDefinition: 'Microsoft.Storage/storageAccounts/blobServices',
+            resourceName: 'rn1/default',
+            metricNamespace: 'default',
+          },
+          templateSrv
+        );
         expect(url).toBe(
           '/subscriptions/sub1/resourceGroups/rg/providers/Microsoft.Storage/storageAccounts/rn1/blobServices/default/' +
             'providers/microsoft.insights/metricdefinitions?api-version=2017-05-01-preview&metricnamespace=default'
@@ -158,13 +261,18 @@ describe('AzureMonitorUrlBuilder', () => {
 
     describe('when metric definition is Microsoft.Storage/storageAccounts/fileServices and the metricNamespace is default', () => {
       it('should build the getMetricNames url in the longer format', () => {
-        const url = UrlBuilder.buildAzureMonitorGetMetricNamesUrl('', '2017-05-01-preview', {
-          subscription: 'sub1',
-          resourceGroup: 'rg',
-          metricDefinition: 'Microsoft.Storage/storageAccounts/fileServices',
-          resourceName: 'rn1/default',
-          metricNamespace: 'default',
-        });
+        const url = UrlBuilder.buildAzureMonitorGetMetricNamesUrl(
+          '',
+          '2017-05-01-preview',
+          {
+            subscription: 'sub1',
+            resourceGroup: 'rg',
+            metricDefinition: 'Microsoft.Storage/storageAccounts/fileServices',
+            resourceName: 'rn1/default',
+            metricNamespace: 'default',
+          },
+          templateSrv
+        );
         expect(url).toBe(
           '/subscriptions/sub1/resourceGroups/rg/providers/Microsoft.Storage/storageAccounts/rn1/fileServices/default/' +
             'providers/microsoft.insights/metricdefinitions?api-version=2017-05-01-preview&metricnamespace=default'
@@ -174,13 +282,18 @@ describe('AzureMonitorUrlBuilder', () => {
 
     describe('when metric definition is Microsoft.Storage/storageAccounts/tableServices and the metricNamespace is default', () => {
       it('should build the getMetricNames url in the longer format', () => {
-        const url = UrlBuilder.buildAzureMonitorGetMetricNamesUrl('', '2017-05-01-preview', {
-          subscription: 'sub1',
-          resourceGroup: 'rg',
-          metricDefinition: 'Microsoft.Storage/storageAccounts/tableServices',
-          resourceName: 'rn1/default',
-          metricNamespace: 'default',
-        });
+        const url = UrlBuilder.buildAzureMonitorGetMetricNamesUrl(
+          '',
+          '2017-05-01-preview',
+          {
+            subscription: 'sub1',
+            resourceGroup: 'rg',
+            metricDefinition: 'Microsoft.Storage/storageAccounts/tableServices',
+            resourceName: 'rn1/default',
+            metricNamespace: 'default',
+          },
+          templateSrv
+        );
         expect(url).toBe(
           '/subscriptions/sub1/resourceGroups/rg/providers/Microsoft.Storage/storageAccounts/rn1/tableServices/default/' +
             'providers/microsoft.insights/metricdefinitions?api-version=2017-05-01-preview&metricnamespace=default'
@@ -190,13 +303,18 @@ describe('AzureMonitorUrlBuilder', () => {
 
     describe('when metric definition is Microsoft.Storage/storageAccounts/queueServices and the metricNamespace is default', () => {
       it('should build the getMetricNames url in the longer format', () => {
-        const url = UrlBuilder.buildAzureMonitorGetMetricNamesUrl('', '2017-05-01-preview', {
-          subscription: 'sub1',
-          resourceGroup: 'rg',
-          metricDefinition: 'Microsoft.Storage/storageAccounts/queueServices',
-          resourceName: 'rn1/default',
-          metricNamespace: 'default',
-        });
+        const url = UrlBuilder.buildAzureMonitorGetMetricNamesUrl(
+          '',
+          '2017-05-01-preview',
+          {
+            subscription: 'sub1',
+            resourceGroup: 'rg',
+            metricDefinition: 'Microsoft.Storage/storageAccounts/queueServices',
+            resourceName: 'rn1/default',
+            metricNamespace: 'default',
+          },
+          templateSrv
+        );
         expect(url).toBe(
           '/subscriptions/sub1/resourceGroups/rg/providers/Microsoft.Storage/storageAccounts/rn1/queueServices/default/' +
             'providers/microsoft.insights/metricdefinitions?api-version=2017-05-01-preview&metricnamespace=default'
diff --git a/public/app/plugins/datasource/grafana-azure-monitor-datasource/azure_monitor/url_builder.ts b/public/app/plugins/datasource/grafana-azure-monitor-datasource/azure_monitor/url_builder.ts
index 51dd5a80b35..d52df58b96e 100644
--- a/public/app/plugins/datasource/grafana-azure-monitor-datasource/azure_monitor/url_builder.ts
+++ b/public/app/plugins/datasource/grafana-azure-monitor-datasource/azure_monitor/url_builder.ts
@@ -1,3 +1,5 @@
+import { TemplateSrv } from '@grafana/runtime';
+
 import { GetMetricNamespacesQuery, GetMetricNamesQuery } from '../types';
 
 export default class UrlBuilder {
@@ -5,40 +7,65 @@ export default class UrlBuilder {
     subscriptionId: string,
     resourceGroup: string,
     metricDefinition: string,
-    resourceName: string
+    resourceName: string,
+    templateSrv: TemplateSrv
   ) {
+    const metricDefinitionProcessed = templateSrv.replace(metricDefinition);
     const metricDefinitionArray = metricDefinition.split('/');
+    const resourceNameProcessed = templateSrv.replace(resourceName);
     const resourceNameArray = resourceName.split('/');
     const provider = metricDefinitionArray.shift();
     const urlArray = ['/subscriptions', subscriptionId, 'resourceGroups', resourceGroup, 'providers', provider];
-    if (metricDefinition.startsWith('Microsoft.Storage/storageAccounts/') && resourceNameArray.at(-1) !== 'default') {
+
+    if (
+      metricDefinitionProcessed.startsWith('Microsoft.Storage/storageAccounts/') &&
+      !resourceNameProcessed.endsWith('default')
+    ) {
       resourceNameArray.push('default');
     }
-    if (metricDefinitionArray.length > 0) {
-      for (const i in metricDefinitionArray) {
-        urlArray.push(metricDefinitionArray[i]);
-        urlArray.push(resourceNameArray[i]);
-      }
-    } else {
-      urlArray.push(resourceNameArray[0]);
+
+    if (resourceNameArray.length > metricDefinitionArray.length) {
+      const parentResource = resourceNameArray.shift();
+      urlArray.push(parentResource);
+    }
+
+    for (const i in metricDefinitionArray) {
+      urlArray.push(metricDefinitionArray[i]);
+      urlArray.push(resourceNameArray[i]);
     }
     return urlArray.join('/');
   }
 
-  static buildAzureMonitorGetMetricNamespacesUrl(baseUrl: string, apiVersion: string, query: GetMetricNamespacesQuery) {
+  static buildAzureMonitorGetMetricNamespacesUrl(
+    baseUrl: string,
+    apiVersion: string,
+    query: GetMetricNamespacesQuery,
+    templateSrv: TemplateSrv
+  ) {
     let resourceUri: string;
 
     if ('resourceUri' in query) {
       resourceUri = query.resourceUri;
     } else {
       const { subscription, resourceGroup, metricDefinition, resourceName } = query;
-      resourceUri = UrlBuilder.buildResourceUri(subscription, resourceGroup, metricDefinition, resourceName);
+      resourceUri = UrlBuilder.buildResourceUri(
+        subscription,
+        resourceGroup,
+        metricDefinition,
+        resourceName,
+        templateSrv
+      );
     }
 
     return `${baseUrl}${resourceUri}/providers/microsoft.insights/metricNamespaces?api-version=${apiVersion}`;
   }
 
-  static buildAzureMonitorGetMetricNamesUrl(baseUrl: string, apiVersion: string, query: GetMetricNamesQuery) {
+  static buildAzureMonitorGetMetricNamesUrl(
+    baseUrl: string,
+    apiVersion: string,
+    query: GetMetricNamesQuery,
+    templateSrv: TemplateSrv
+  ) {
     let resourceUri: string;
     const { metricNamespace } = query;
 
@@ -46,7 +73,13 @@ export default class UrlBuilder {
       resourceUri = query.resourceUri;
     } else {
       const { subscription, resourceGroup, metricDefinition, resourceName } = query;
-      resourceUri = UrlBuilder.buildResourceUri(subscription, resourceGroup, metricDefinition, resourceName);
+      resourceUri = UrlBuilder.buildResourceUri(
+        subscription,
+        resourceGroup,
+        metricDefinition,
+        resourceName,
+        templateSrv
+      );
     }
 
     return (
diff --git a/public/app/plugins/datasource/grafana-azure-monitor-datasource/components/QueryEditor/usePreparedQuery.ts b/public/app/plugins/datasource/grafana-azure-monitor-datasource/components/QueryEditor/usePreparedQuery.ts
index 560d734cbf6..9ed96bb1103 100644
--- a/public/app/plugins/datasource/grafana-azure-monitor-datasource/components/QueryEditor/usePreparedQuery.ts
+++ b/public/app/plugins/datasource/grafana-azure-monitor-datasource/components/QueryEditor/usePreparedQuery.ts
@@ -2,6 +2,8 @@ import deepEqual from 'fast-deep-equal';
 import { defaults } from 'lodash';
 import { useEffect, useMemo } from 'react';
 
+import { getTemplateSrv } from '@grafana/runtime';
+
 import { AzureMonitorQuery, AzureQueryType } from '../../types';
 import migrateQuery from '../../utils/migrateQuery';
 
@@ -12,7 +14,7 @@ const DEFAULT_QUERY = {
 const prepareQuery = (query: AzureMonitorQuery) => {
   // Note: _.defaults does not apply default values deeply.
   const withDefaults = defaults({}, query, DEFAULT_QUERY);
-  const migratedQuery = migrateQuery(withDefaults);
+  const migratedQuery = migrateQuery(withDefaults, getTemplateSrv());
 
   // If we didn't make any changes to the object, then return the original object to keep the
   // identity the same, and not trigger any other useEffects or anything.
diff --git a/public/app/plugins/datasource/grafana-azure-monitor-datasource/datasource.ts b/public/app/plugins/datasource/grafana-azure-monitor-datasource/datasource.ts
index f5adb0410cd..5ff8d9334cb 100644
--- a/public/app/plugins/datasource/grafana-azure-monitor-datasource/datasource.ts
+++ b/public/app/plugins/datasource/grafana-azure-monitor-datasource/datasource.ts
@@ -70,7 +70,7 @@ export default class Datasource extends DataSourceApi<AzureMonitorQuery, AzureDa
 
     for (const baseTarget of options.targets) {
       // Migrate old query structures
-      const target = datasourceMigrations(baseTarget);
+      const target = datasourceMigrations(baseTarget, this.templateSrv);
 
       // Skip hidden or invalid queries or ones without properties
       if (!target.queryType || target.hide || !hasQueryForType(target)) {
diff --git a/public/app/plugins/datasource/grafana-azure-monitor-datasource/utils/migrateQuery.test.ts b/public/app/plugins/datasource/grafana-azure-monitor-datasource/utils/migrateQuery.test.ts
index 8f60f71fab7..b9ef2a6f01f 100644
--- a/public/app/plugins/datasource/grafana-azure-monitor-datasource/utils/migrateQuery.test.ts
+++ b/public/app/plugins/datasource/grafana-azure-monitor-datasource/utils/migrateQuery.test.ts
@@ -1,7 +1,22 @@
+import { getTemplateSrv } from '@grafana/runtime';
+
 import { AzureMetricDimension, AzureMonitorQuery, AzureQueryType } from '../types';
 
 import migrateQuery from './migrateQuery';
 
+let replaceMock = jest.fn().mockImplementation((s: string) => s);
+jest.mock('@grafana/runtime', () => {
+  const original = jest.requireActual('@grafana/runtime');
+  return {
+    ...original,
+    getTemplateSrv: () => ({
+      replace: replaceMock,
+    }),
+  };
+});
+
+let templateSrv = getTemplateSrv();
+
 const azureMonitorQueryV7 = {
   appInsights: { dimension: [], metricName: 'select', timeGrain: 'auto' },
   azureLogAnalytics: {
@@ -82,7 +97,7 @@ const modernMetricsQuery: AzureMonitorQuery = {
 
 describe('AzureMonitor: migrateQuery', () => {
   it('modern queries should not change', () => {
-    const result = migrateQuery(modernMetricsQuery);
+    const result = migrateQuery(modernMetricsQuery, templateSrv);
 
     // MUST use .toBe because we want to assert that the identity of unmigrated queries remains the same
     expect(modernMetricsQuery).toBe(result);
@@ -90,7 +105,7 @@ describe('AzureMonitor: migrateQuery', () => {
 
   describe('migrating from a v7 query to the latest query version', () => {
     it('should build a resource uri', () => {
-      const result = migrateQuery(azureMonitorQueryV7);
+      const result = migrateQuery(azureMonitorQueryV7, templateSrv);
       expect(result).toMatchObject(
         expect.objectContaining({
           azureMonitor: expect.objectContaining({
@@ -104,7 +119,7 @@ describe('AzureMonitor: migrateQuery', () => {
 
   describe('migrating from a v8 query to the latest query version', () => {
     it('should build a resource uri', () => {
-      const result = migrateQuery(azureMonitorQueryV8);
+      const result = migrateQuery(azureMonitorQueryV8, templateSrv);
       expect(result).toMatchObject(
         expect.objectContaining({
           azureMonitor: expect.objectContaining({
@@ -114,6 +129,20 @@ describe('AzureMonitor: migrateQuery', () => {
         })
       );
     });
+
+    it('should not build a resource uri with an unsupported template variable', () => {
+      replaceMock = jest.fn().mockImplementation((s: string) => s.replace('$ns', 'Microsoft.Storage/storageAccounts'));
+      templateSrv = getTemplateSrv();
+      const query = {
+        ...azureMonitorQueryV8,
+        azureMonitor: {
+          ...azureMonitorQueryV8,
+          metricDefinition: '$ns',
+        },
+      };
+      const result = migrateQuery(query, templateSrv);
+      expect(result.azureMonitor?.resourceUri).toBeUndefined();
+    });
   });
 
   describe('migrating from a v9 query to the latest query version', () => {
@@ -121,7 +150,7 @@ describe('AzureMonitor: migrateQuery', () => {
       const dimensionFilters: AzureMetricDimension[] = [
         { dimension: 'TestDimension', operator: 'eq', filters: ['testFilter'] },
       ];
-      const result = migrateQuery({ ...azureMonitorQueryV8, azureMonitor: { dimensionFilters } });
+      const result = migrateQuery({ ...azureMonitorQueryV8, azureMonitor: { dimensionFilters } }, templateSrv);
       expect(result).toMatchObject(
         expect.objectContaining({
           azureMonitor: expect.objectContaining({
@@ -132,7 +161,7 @@ describe('AzureMonitor: migrateQuery', () => {
     });
     it('correctly updates old filter containing wildcard', () => {
       const dimensionFilters: AzureMetricDimension[] = [{ dimension: 'TestDimension', operator: 'eq', filter: '*' }];
-      const result = migrateQuery({ ...azureMonitorQueryV8, azureMonitor: { dimensionFilters } });
+      const result = migrateQuery({ ...azureMonitorQueryV8, azureMonitor: { dimensionFilters } }, templateSrv);
       expect(result).toMatchObject(
         expect.objectContaining({
           azureMonitor: expect.objectContaining({
@@ -145,7 +174,7 @@ describe('AzureMonitor: migrateQuery', () => {
     });
     it('correctly updates old filter containing value', () => {
       const dimensionFilters: AzureMetricDimension[] = [{ dimension: 'TestDimension', operator: 'eq', filter: 'test' }];
-      const result = migrateQuery({ ...azureMonitorQueryV8, azureMonitor: { dimensionFilters } });
+      const result = migrateQuery({ ...azureMonitorQueryV8, azureMonitor: { dimensionFilters } }, templateSrv);
       expect(result).toMatchObject(
         expect.objectContaining({
           azureMonitor: expect.objectContaining({
@@ -160,7 +189,7 @@ describe('AzureMonitor: migrateQuery', () => {
       const dimensionFilters: AzureMetricDimension[] = [
         { dimension: 'TestDimension', operator: 'eq', filter: '*', filters: ['testFilter'] },
       ];
-      const result = migrateQuery({ ...azureMonitorQueryV8, azureMonitor: { dimensionFilters } });
+      const result = migrateQuery({ ...azureMonitorQueryV8, azureMonitor: { dimensionFilters } }, templateSrv);
       expect(result).toMatchObject(
         expect.objectContaining({
           azureMonitor: expect.objectContaining({
@@ -179,7 +208,7 @@ describe('AzureMonitor: migrateQuery', () => {
       const dimensionFilters: AzureMetricDimension[] = [
         { dimension: 'TestDimension', operator: 'eq', filter: 'testFilter', filters: ['testFilter'] },
       ];
-      const result = migrateQuery({ ...azureMonitorQueryV8, azureMonitor: { dimensionFilters } });
+      const result = migrateQuery({ ...azureMonitorQueryV8, azureMonitor: { dimensionFilters } }, templateSrv);
       expect(result).toMatchObject(
         expect.objectContaining({
           azureMonitor: expect.objectContaining({
diff --git a/public/app/plugins/datasource/grafana-azure-monitor-datasource/utils/migrateQuery.ts b/public/app/plugins/datasource/grafana-azure-monitor-datasource/utils/migrateQuery.ts
index da856ec9496..54d569302b4 100644
--- a/public/app/plugins/datasource/grafana-azure-monitor-datasource/utils/migrateQuery.ts
+++ b/public/app/plugins/datasource/grafana-azure-monitor-datasource/utils/migrateQuery.ts
@@ -1,3 +1,5 @@
+import { TemplateSrv } from '@grafana/runtime';
+
 import UrlBuilder from '../azure_monitor/url_builder';
 import { setKustoQuery } from '../components/LogsQueryEditor/setQueryValue';
 import {
@@ -9,7 +11,7 @@ import { AzureMetricDimension, AzureMonitorQuery, AzureQueryType } from '../type
 
 const OLD_DEFAULT_DROPDOWN_VALUE = 'select';
 
-export default function migrateQuery(query: AzureMonitorQuery): AzureMonitorQuery {
+export default function migrateQuery(query: AzureMonitorQuery, templateSrv: TemplateSrv): AzureMonitorQuery {
   let workingQuery = query;
 
   // The old angular controller also had a `migrateApplicationInsightsKeys` migraiton that
@@ -21,7 +23,7 @@ export default function migrateQuery(query: AzureMonitorQuery): AzureMonitorQuer
   workingQuery = migrateLogAnalyticsToFromTimes(workingQuery);
   workingQuery = migrateToDefaultNamespace(workingQuery);
   workingQuery = migrateDimensionToDimensionFilter(workingQuery);
-  workingQuery = migrateResourceUri(workingQuery);
+  workingQuery = migrateResourceUri(workingQuery, templateSrv);
   workingQuery = migrateDimensionFilterToArray(workingQuery);
 
   return workingQuery;
@@ -96,7 +98,7 @@ function migrateDimensionToDimensionFilter(query: AzureMonitorQuery): AzureMonit
 // Azure Monitor metric queries prior to Grafana version 9 did not include a `resourceUri`.
 // The resourceUri was previously constructed with the subscription id, resource group,
 // metric definition (a.k.a. resource type), and the resource name.
-function migrateResourceUri(query: AzureMonitorQuery): AzureMonitorQuery {
+function migrateResourceUri(query: AzureMonitorQuery, templateSrv: TemplateSrv): AzureMonitorQuery {
   const azureMonitorQuery = query.azureMonitor;
 
   if (!azureMonitorQuery || azureMonitorQuery.resourceUri) {
@@ -109,11 +111,28 @@ function migrateResourceUri(query: AzureMonitorQuery): AzureMonitorQuery {
     return query;
   }
 
-  if (metricDefinition.includes('$') || resourceName.includes('$')) {
+  const metricDefinitionArray = metricDefinition.split('/');
+  if (metricDefinitionArray.some((p) => templateSrv.replace(p).split('/').length > 2)) {
+    // If a metric definition includes template variable with a subresource e.g.
+    // Microsoft.Storage/storageAccounts/libraries, it's not possible to generate a valid
+    // resource URI
     return query;
   }
 
-  const resourceUri = UrlBuilder.buildResourceUri(subscription, resourceGroup, metricDefinition, resourceName);
+  const resourceNameArray = resourceName.split('/');
+  if (resourceNameArray.some((p) => templateSrv.replace(p).split('/').length > 1)) {
+    // If a resource name includes template variable with a subresource e.g.
+    // abc123/def456, it's not possible to generate a valid resource URI
+    return query;
+  }
+
+  const resourceUri = UrlBuilder.buildResourceUri(
+    subscription,
+    resourceGroup,
+    metricDefinition,
+    resourceName,
+    templateSrv
+  );
 
   return {
     ...query,
@@ -163,7 +182,7 @@ function migrateDimensionFilterToArray(query: AzureMonitorQuery): AzureMonitorQu
 
 // datasource.ts also contains some migrations, which have been moved to here. Unsure whether
 // they should also do all the other migrations...
-export function datasourceMigrations(query: AzureMonitorQuery): AzureMonitorQuery {
+export function datasourceMigrations(query: AzureMonitorQuery, templateSrv: TemplateSrv): AzureMonitorQuery {
   let workingQuery = query;
 
   if (!workingQuery.queryType) {
@@ -175,7 +194,7 @@ export function datasourceMigrations(query: AzureMonitorQuery): AzureMonitorQuer
 
   if (workingQuery.queryType === AzureQueryType.AzureMonitor && workingQuery.azureMonitor) {
     workingQuery = migrateDimensionToDimensionFilter(workingQuery);
-    workingQuery = migrateResourceUri(workingQuery);
+    workingQuery = migrateResourceUri(workingQuery, templateSrv);
     workingQuery = migrateDimensionFilterToArray(workingQuery);
   }