diff --git a/.github/workflows/ms.resources.deploymentscripts.yml b/.github/workflows/ms.resources.deploymentscripts.yml
index c317b860ef..815ed47236 100644
--- a/.github/workflows/ms.resources.deploymentscripts.yml
+++ b/.github/workflows/ms.resources.deploymentscripts.yml
@@ -106,8 +106,7 @@ jobs:
       - name: 'Using test file [${{ matrix.moduleTestFilePaths }}]'
         uses: ./.github/actions/templates/validateModuleDeployment
         with:
-          templateFilePath: '${{ env.modulePath }}/deploy.bicep'
-          parameterFilePath: '${{ env.modulePath }}/${{ matrix.moduleTestFilePaths }}'
+          templateFilePath: '${{ env.modulePath }}/${{ matrix.moduleTestFilePaths }}'
           location: '${{ env.location }}'
           resourceGroupName: '${{ env.resourceGroupName }}'
           subscriptionId: '${{ secrets.ARM_SUBSCRIPTION_ID }}'
diff --git a/modules/Microsoft.Resources/deploymentScripts/.test/cli.parameters.json b/modules/Microsoft.Resources/deploymentScripts/.test/cli.parameters.json
deleted file mode 100644
index e3e775a93d..0000000000
--- a/modules/Microsoft.Resources/deploymentScripts/.test/cli.parameters.json
+++ /dev/null
@@ -1,35 +0,0 @@
-{
-    "$schema": "https://schema.management.azure.com/schemas/2019-04-01/deploymentParameters.json#",
-    "contentVersion": "1.0.0.0",
-    "parameters": {
-        "name": {
-            "value": "<<namePrefix>>-az-ds-cli-001"
-        },
-        "userAssignedIdentities": {
-            "value": {
-                "/subscriptions/<<subscriptionId>>/resourcegroups/validation-rg/providers/Microsoft.ManagedIdentity/userAssignedIdentities/adp-<<namePrefix>>-az-msi-x-001": {}
-            }
-        },
-        "kind": {
-            "value": "AzureCLI"
-        },
-        "azCliVersion": {
-            "value": "2.15.0"
-        },
-        "scriptContent": {
-            "value": "echo \"Hello from inside the script\""
-        },
-        "retentionInterval": {
-            "value": "P1D"
-        },
-        "runOnce": {
-            "value": false
-        },
-        "cleanupPreference": {
-            "value": "Always"
-        },
-        "timeout": {
-            "value": "PT30M"
-        }
-    }
-}
diff --git a/modules/Microsoft.Resources/deploymentScripts/.test/cli/dependencies.bicep b/modules/Microsoft.Resources/deploymentScripts/.test/cli/dependencies.bicep
new file mode 100644
index 0000000000..eb82ada472
--- /dev/null
+++ b/modules/Microsoft.Resources/deploymentScripts/.test/cli/dependencies.bicep
@@ -0,0 +1,13 @@
+@description('Optional. The location to deploy resources to.')
+param location string = resourceGroup().location
+
+@description('Required. The name of the managed identity to create.')
+param managedIdentityName string
+
+resource managedIdentity 'Microsoft.ManagedIdentity/userAssignedIdentities@2018-11-30' = {
+  name: managedIdentityName
+  location: location
+}
+
+@description('The resource ID of the created managed identity.')
+output managedIdentityResourceId string = managedIdentity.id
diff --git a/modules/Microsoft.Resources/deploymentScripts/.test/cli/deploy.test.bicep b/modules/Microsoft.Resources/deploymentScripts/.test/cli/deploy.test.bicep
new file mode 100644
index 0000000000..5472d7d541
--- /dev/null
+++ b/modules/Microsoft.Resources/deploymentScripts/.test/cli/deploy.test.bicep
@@ -0,0 +1,55 @@
+targetScope = 'subscription'
+
+// ========== //
+// Parameters //
+// ========== //
+@description('Optional. The name of the resource group to deploy for testing purposes.')
+@maxLength(90)
+param resourceGroupName string = 'ms.resources.deploymentscripts-${serviceShort}-rg'
+
+@description('Optional. The location to deploy resources to.')
+param location string = deployment().location
+
+@description('Optional. A short identifier for the kind of deployment. Should be kept short to not run into resource-name length-constraints.')
+param serviceShort string = 'rdscli'
+
+// =========== //
+// Deployments //
+// =========== //
+
+// General resources
+// =================
+resource resourceGroup 'Microsoft.Resources/resourceGroups@2021-04-01' = {
+  name: resourceGroupName
+  location: location
+}
+
+module resourceGroupResources 'dependencies.bicep' = {
+  scope: resourceGroup
+  name: '${uniqueString(deployment().name, location)}-paramNested'
+  params: {
+    managedIdentityName: 'dep-<<namePrefix>>-msi-${serviceShort}'
+  }
+}
+
+// ============== //
+// Test Execution //
+// ============== //
+
+module testDeployment '../../deploy.bicep' = {
+  scope: resourceGroup
+  name: '${uniqueString(deployment().name)}-test-${serviceShort}'
+  params: {
+    name: '<<namePrefix>>${serviceShort}001'
+    azCliVersion: '2.41.0'
+    cleanupPreference: 'Always'
+    kind: 'AzureCLI'
+    retentionInterval: 'P1D'
+    runOnce: false
+    scriptContent: 'echo \'echo echo echo\''
+    timeout: 'PT30M'
+    userAssignedIdentities: {
+      '${resourceGroupResources.outputs.managedIdentityResourceId}': {}
+    }
+  }
+}
diff --git a/modules/Microsoft.Resources/deploymentScripts/.test/ps.parameters.json b/modules/Microsoft.Resources/deploymentScripts/.test/ps.parameters.json
deleted file mode 100644
index accc14b0b0..0000000000
--- a/modules/Microsoft.Resources/deploymentScripts/.test/ps.parameters.json
+++ /dev/null
@@ -1,38 +0,0 @@
-{
-    "$schema": "https://schema.management.azure.com/schemas/2019-04-01/deploymentParameters.json#",
-    "contentVersion": "1.0.0.0",
-    "parameters": {
-        "name": {
-            "value": "<<namePrefix>>-az-ds-ps-001"
-        },
-        "lock": {
-            "value": "CanNotDelete"
-        },
-        "userAssignedIdentities": {
-            "value": {
-                "/subscriptions/<<subscriptionId>>/resourcegroups/validation-rg/providers/Microsoft.ManagedIdentity/userAssignedIdentities/adp-<<namePrefix>>-az-msi-x-001": {}
-            }
-        },
-        "kind": {
-            "value": "AzurePowerShell"
-        },
-        "azPowerShellVersion": {
-            "value": "3.0"
-        },
-        "scriptContent": {
-            "value": "Write-Host 'Running PowerShell from template'"
-        },
-        "retentionInterval": {
-            "value": "P1D"
-        },
-        "runOnce": {
-            "value": false
-        },
-        "cleanupPreference": {
-            "value": "Always"
-        },
-        "timeout": {
-            "value": "PT30M"
-        }
-    }
-}
diff --git a/modules/Microsoft.Resources/deploymentScripts/.test/ps/dependencies.bicep b/modules/Microsoft.Resources/deploymentScripts/.test/ps/dependencies.bicep
new file mode 100644
index 0000000000..eb82ada472
--- /dev/null
+++ b/modules/Microsoft.Resources/deploymentScripts/.test/ps/dependencies.bicep
@@ -0,0 +1,13 @@
+@description('Optional. The location to deploy resources to.')
+param location string = resourceGroup().location
+
+@description('Required. The name of the managed identity to create.')
+param managedIdentityName string
+
+resource managedIdentity 'Microsoft.ManagedIdentity/userAssignedIdentities@2018-11-30' = {
+  name: managedIdentityName
+  location: location
+}
+
+@description('The resource ID of the created managed identity.')
+output managedIdentityResourceId string = managedIdentity.id
diff --git a/modules/Microsoft.Resources/deploymentScripts/.test/ps/deploy.test.bicep b/modules/Microsoft.Resources/deploymentScripts/.test/ps/deploy.test.bicep
new file mode 100644
index 0000000000..96e4d6bb5a
--- /dev/null
+++ b/modules/Microsoft.Resources/deploymentScripts/.test/ps/deploy.test.bicep
@@ -0,0 +1,56 @@
+targetScope = 'subscription'
+
+// ========== //
+// Parameters //
+// ========== //
+@description('Optional. The name of the resource group to deploy for testing purposes.')
+@maxLength(90)
+param resourceGroupName string = 'ms.resources.deploymentscripts-${serviceShort}-rg'
+
+@description('Optional. The location to deploy resources to.')
+param location string = deployment().location
+
+@description('Optional. A short identifier for the kind of deployment. Should be kept short to not run into resource-name length-constraints.')
+param serviceShort string = 'rdsps'
+
+// =========== //
+// Deployments //
+// =========== //
+
+// General resources
+// =================
+resource resourceGroup 'Microsoft.Resources/resourceGroups@2021-04-01' = {
+  name: resourceGroupName
+  location: location
+}
+
+module resourceGroupResources 'dependencies.bicep' = {
+  scope: resourceGroup
+  name: '${uniqueString(deployment().name, location)}-paramNested'
+  params: {
+    managedIdentityName: 'dep-<<namePrefix>>-msi-${serviceShort}'
+  }
+}
+
+// ============== //
+// Test Execution //
+// ============== //
+
+module testDeployment '../../deploy.bicep' = {
+  scope: resourceGroup
+  name: '${uniqueString(deployment().name)}-test-${serviceShort}'
+  params: {
+    name: '<<namePrefix>>${serviceShort}001'
+    azPowerShellVersion: '8.0'
+    cleanupPreference: 'Always'
+    kind: 'AzurePowerShell'
+    lock: 'CanNotDelete'
+    retentionInterval: 'P1D'
+    runOnce: false
+    scriptContent: 'Write-Host \'The cake is a lie!\''
+    timeout: 'PT30M'
+    userAssignedIdentities: {
+      '${resourceGroupResources.outputs.managedIdentityResourceId}': {}
+    }
+  }
+}
diff --git a/modules/Microsoft.Resources/deploymentScripts/readme.md b/modules/Microsoft.Resources/deploymentScripts/readme.md
index 9d856ecb6a..44d9d1aeb4 100644
--- a/modules/Microsoft.Resources/deploymentScripts/readme.md
+++ b/modules/Microsoft.Resources/deploymentScripts/readme.md
@@ -162,20 +162,20 @@ The following module usage examples are retrieved from the content of the files
 
 ```bicep
 module deploymentScripts './Microsoft.Resources/deploymentScripts/deploy.bicep' = {
-  name: '${uniqueString(deployment().name)}-DeploymentScripts'
+  name: '${uniqueString(deployment().name)}-test-rdscli'
   params: {
     // Required parameters
-    name: '<<namePrefix>>-az-ds-cli-001'
+    name: '<<namePrefix>>rdscli001'
     // Non-required parameters
-    azCliVersion: '2.15.0'
+    azCliVersion: '2.41.0'
     cleanupPreference: 'Always'
     kind: 'AzureCLI'
     retentionInterval: 'P1D'
     runOnce: false
-    scriptContent: 'echo \'Hello from inside the script\''
+    scriptContent: 'echo \'echo echo echo\''
     timeout: 'PT30M'
     userAssignedIdentities: {
-      '/subscriptions/<<subscriptionId>>/resourcegroups/validation-rg/providers/Microsoft.ManagedIdentity/userAssignedIdentities/adp-<<namePrefix>>-az-msi-x-001': {}
+      '<managedIdentityResourceId>': {}
     }
   }
 }
@@ -195,11 +195,11 @@ module deploymentScripts './Microsoft.Resources/deploymentScripts/deploy.bicep'
   "parameters": {
     // Required parameters
     "name": {
-      "value": "<<namePrefix>>-az-ds-cli-001"
+      "value": "<<namePrefix>>rdscli001"
     },
     // Non-required parameters
     "azCliVersion": {
-      "value": "2.15.0"
+      "value": "2.41.0"
     },
     "cleanupPreference": {
       "value": "Always"
@@ -214,14 +214,14 @@ module deploymentScripts './Microsoft.Resources/deploymentScripts/deploy.bicep'
       "value": false
     },
     "scriptContent": {
-      "value": "echo \"Hello from inside the script\""
+      "value": "echo \"echo echo echo\""
     },
     "timeout": {
       "value": "PT30M"
     },
     "userAssignedIdentities": {
       "value": {
-        "/subscriptions/<<subscriptionId>>/resourcegroups/validation-rg/providers/Microsoft.ManagedIdentity/userAssignedIdentities/adp-<<namePrefix>>-az-msi-x-001": {}
+        "<managedIdentityResourceId>": {}
       }
     }
   }
@@ -239,21 +239,21 @@ module deploymentScripts './Microsoft.Resources/deploymentScripts/deploy.bicep'
 
 ```bicep
 module deploymentScripts './Microsoft.Resources/deploymentScripts/deploy.bicep' = {
-  name: '${uniqueString(deployment().name)}-DeploymentScripts'
+  name: '${uniqueString(deployment().name)}-test-rdsps'
   params: {
     // Required parameters
-    name: '<<namePrefix>>-az-ds-ps-001'
+    name: '<<namePrefix>>rdsps001'
     // Non-required parameters
-    azPowerShellVersion: '3.0'
+    azPowerShellVersion: '8.0'
     cleanupPreference: 'Always'
     kind: 'AzurePowerShell'
     lock: 'CanNotDelete'
     retentionInterval: 'P1D'
     runOnce: false
-    scriptContent: 'Write-Host 'Running PowerShell from template''
+    scriptContent: 'Write-Host \'The cake is a lie!\''
     timeout: 'PT30M'
     userAssignedIdentities: {
-      '/subscriptions/<<subscriptionId>>/resourcegroups/validation-rg/providers/Microsoft.ManagedIdentity/userAssignedIdentities/adp-<<namePrefix>>-az-msi-x-001': {}
+      '<managedIdentityResourceId>': {}
     }
   }
 }
@@ -273,11 +273,11 @@ module deploymentScripts './Microsoft.Resources/deploymentScripts/deploy.bicep'
   "parameters": {
     // Required parameters
     "name": {
-      "value": "<<namePrefix>>-az-ds-ps-001"
+      "value": "<<namePrefix>>rdsps001"
     },
     // Non-required parameters
     "azPowerShellVersion": {
-      "value": "3.0"
+      "value": "8.0"
     },
     "cleanupPreference": {
       "value": "Always"
@@ -295,14 +295,14 @@ module deploymentScripts './Microsoft.Resources/deploymentScripts/deploy.bicep'
       "value": false
     },
     "scriptContent": {
-      "value": "Write-Host 'Running PowerShell from template'"
+      "value": "Write-Host \"The cake is a lie!\""
     },
     "timeout": {
       "value": "PT30M"
     },
     "userAssignedIdentities": {
       "value": {
-        "/subscriptions/<<subscriptionId>>/resourcegroups/validation-rg/providers/Microsoft.ManagedIdentity/userAssignedIdentities/adp-<<namePrefix>>-az-msi-x-001": {}
+        "<managedIdentityResourceId>": {}
       }
     }
   }