diff --git a/.github/workflows/ms.desktopvirtualization.hostpools.yml b/.github/workflows/ms.desktopvirtualization.hostpools.yml
index 99d3a057a6..f36e967efa 100644
--- a/.github/workflows/ms.desktopvirtualization.hostpools.yml
+++ b/.github/workflows/ms.desktopvirtualization.hostpools.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: '${{ secrets.ARM_SUBSCRIPTION_ID }}'
diff --git a/modules/Microsoft.DesktopVirtualization/hostpools/.test/common/dependencies.bicep b/modules/Microsoft.DesktopVirtualization/hostpools/.test/common/dependencies.bicep
new file mode 100644
index 0000000000..7371d4437b
--- /dev/null
+++ b/modules/Microsoft.DesktopVirtualization/hostpools/.test/common/dependencies.bicep
@@ -0,0 +1,14 @@
+@description('Optional. The location to deploy to.')
+param location string = resourceGroup().location
+
+@description('Required. The name of the Managed Identity to create.')
+param managedIdentityName string
+
+resource managedIdentity 'Microsoft.ManagedIdentity/userAssignedIdentities@2018-11-30' = {
+    name: managedIdentityName
+    location: location
+}
+
+@description('The principal ID of the created Managed Identity.')
+output managedIdentityPrincipalId string = managedIdentity.properties.principalId
+
diff --git a/modules/Microsoft.DesktopVirtualization/hostpools/.test/common/deploy.test.bicep b/modules/Microsoft.DesktopVirtualization/hostpools/.test/common/deploy.test.bicep
new file mode 100644
index 0000000000..3d30cf70f5
--- /dev/null
+++ b/modules/Microsoft.DesktopVirtualization/hostpools/.test/common/deploy.test.bicep
@@ -0,0 +1,98 @@
+targetScope = 'subscription'
+
+// ========== //
+// Parameters //
+// ========== //
+@description('Optional. The name of the resource group to deploy for testing purposes.')
+@maxLength(90)
+param resourceGroupName string = 'ms.desktopvirtualization.hostpools-${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 = 'dvhpcom'
+
+// =========== //
+// 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}'
+  }
+}
+
+// Diagnostics
+// ===========
+module diagnosticDependencies '../../../../.shared/dependencyConstructs/diagnostic.dependencies.bicep' = {
+  scope: resourceGroup
+  name: '${uniqueString(deployment().name, location)}-diagnosticDependencies'
+  params: {
+    storageAccountName: 'dep<<namePrefix>>diasa${serviceShort}01'
+    logAnalyticsWorkspaceName: 'dep-<<namePrefix>>-law-${serviceShort}'
+    eventHubNamespaceEventHubName: 'dep-<<namePrefix>>-evh-${serviceShort}'
+    eventHubNamespaceName: 'dep-<<namePrefix>>-evhns-${serviceShort}'
+    location: location
+  }
+}
+
+// ============== //
+// Test Execution //
+// ============== //
+
+module testDeployment '../../deploy.bicep' = {
+  scope: resourceGroup
+  name: '${uniqueString(deployment().name)}-test-${serviceShort}'
+  params: {
+    name: '<<namePrefix>>${serviceShort}001'
+    customRdpProperty: 'audiocapturemode:i:1;audiomode:i:0;drivestoredirect:s:;redirectclipboard:i:1;redirectcomports:i:1;redirectprinters:i:1;redirectsmartcards:i:1;screen mode id:i:2;'
+    diagnosticLogsRetentionInDays: 7
+    diagnosticStorageAccountId: diagnosticDependencies.outputs.storageAccountResourceId
+    diagnosticWorkspaceId: diagnosticDependencies.outputs.logAnalyticsWorkspaceResourceId
+    diagnosticEventHubAuthorizationRuleId: diagnosticDependencies.outputs.eventHubAuthorizationRuleId
+    diagnosticEventHubName: diagnosticDependencies.outputs.eventHubNamespaceEventHubName
+    hostpoolDescription: 'My first AVD Host Pool'
+    hostpoolFriendlyName: 'AVDv2'
+    hostpoolType: 'Pooled'
+    loadBalancerType: 'BreadthFirst'
+    location: location
+    lock: 'CanNotDelete'
+    maxSessionLimit: 99999
+    personalDesktopAssignmentType: 'Automatic'
+    roleAssignments: [
+      {
+        principalIds: [
+          resourceGroupResources.outputs.managedIdentityPrincipalId
+        ]
+        roleDefinitionIdOrName: 'Reader'
+      }
+    ]
+    vmTemplate: {
+      customImageId: null
+      domain: 'domainname.onmicrosoft.com'
+      galleryImageOffer: 'office-365'
+      galleryImagePublisher: 'microsoftwindowsdesktop'
+      galleryImageSKU: '20h1-evd-o365pp'
+      imageType: 'Gallery'
+      imageUri: null
+      namePrefix: 'avdv2'
+      osDiskType: 'StandardSSD_LRS'
+      useManagedDisks: true
+      vmSize: {
+        cores: 2
+        id: 'Standard_D2s_v3'
+        ram: 8
+      }
+    }
+  }
+}
diff --git a/modules/Microsoft.DesktopVirtualization/hostpools/.test/parameters.json b/modules/Microsoft.DesktopVirtualization/hostpools/.test/parameters.json
deleted file mode 100644
index 076213824f..0000000000
--- a/modules/Microsoft.DesktopVirtualization/hostpools/.test/parameters.json
+++ /dev/null
@@ -1,80 +0,0 @@
-{
-    "$schema": "https://schema.management.azure.com/schemas/2019-04-01/deploymentParameters.json#",
-    "contentVersion": "1.0.0.0",
-    "parameters": {
-        "name": {
-            "value": "<<namePrefix>>-az-avdhp-x-001"
-        },
-        "lock": {
-            "value": "CanNotDelete"
-        },
-        "location": {
-            "value": "westeurope"
-        },
-        "hostpoolFriendlyName": {
-            "value": "AVDv2"
-        },
-        "hostpoolDescription": {
-            "value": "My first AVD Host Pool"
-        },
-        "hostpoolType": {
-            "value": "Pooled"
-        },
-        "personalDesktopAssignmentType": {
-            "value": "Automatic"
-        },
-        "maxSessionLimit": {
-            "value": 99999
-        },
-        "loadBalancerType": {
-            "value": "BreadthFirst"
-        },
-        "customRdpProperty": {
-            "value": "audiocapturemode:i:1;audiomode:i:0;drivestoredirect:s:;redirectclipboard:i:1;redirectcomports:i:1;redirectprinters:i:1;redirectsmartcards:i:1;screen mode id:i:2;"
-        },
-        "vmTemplate": {
-            "value": {
-                "domain": "domainname.onmicrosoft.com",
-                "galleryImageOffer": "office-365",
-                "galleryImagePublisher": "microsoftwindowsdesktop",
-                "galleryImageSKU": "20h1-evd-o365pp",
-                "imageType": "Gallery",
-                "imageUri": null,
-                "customImageId": null,
-                "namePrefix": "avdv2",
-                "osDiskType": "StandardSSD_LRS",
-                "useManagedDisks": true,
-                "vmSize": {
-                    "id": "Standard_D2s_v3",
-                    "cores": 2,
-                    "ram": 8
-                }
-            }
-        },
-        "roleAssignments": {
-            "value": [
-                {
-                    "roleDefinitionIdOrName": "Reader",
-                    "principalIds": [
-                        "<<deploymentSpId>>"
-                    ]
-                }
-            ]
-        },
-        "diagnosticLogsRetentionInDays": {
-            "value": 7
-        },
-        "diagnosticStorageAccountId": {
-            "value": "/subscriptions/<<subscriptionId>>/resourceGroups/validation-rg/providers/Microsoft.Storage/storageAccounts/adp<<namePrefix>>azsax001"
-        },
-        "diagnosticWorkspaceId": {
-            "value": "/subscriptions/<<subscriptionId>>/resourcegroups/validation-rg/providers/microsoft.operationalinsights/workspaces/adp-<<namePrefix>>-az-law-x-001"
-        },
-        "diagnosticEventHubAuthorizationRuleId": {
-            "value": "/subscriptions/<<subscriptionId>>/resourceGroups/validation-rg/providers/Microsoft.EventHub/namespaces/adp-<<namePrefix>>-az-evhns-x-001/AuthorizationRules/RootManageSharedAccessKey"
-        },
-        "diagnosticEventHubName": {
-            "value": "adp-<<namePrefix>>-az-evh-x-001"
-        }
-    }
-}
diff --git a/modules/Microsoft.DesktopVirtualization/hostpools/readme.md b/modules/Microsoft.DesktopVirtualization/hostpools/readme.md
index eb05bc87f8..a465c8d643 100644
--- a/modules/Microsoft.DesktopVirtualization/hostpools/readme.md
+++ b/modules/Microsoft.DesktopVirtualization/hostpools/readme.md
@@ -265,7 +265,7 @@ The following module usage examples are retrieved from the content of the files
 
    >**Note**: Each example lists all the required parameters first, followed by the rest - each in alphabetical order.
 
-<h3>Example 1: Parameters</h3>
+<h3>Example 1: Common</h3>
 
 <details>
 
@@ -273,41 +273,41 @@ The following module usage examples are retrieved from the content of the files
 
 ```bicep
 module hostpools './Microsoft.DesktopVirtualization/hostpools/deploy.bicep' = {
-  name: '${uniqueString(deployment().name)}-Hostpools'
+  name: '${uniqueString(deployment().name)}-test-dvhpcom'
   params: {
     // Required parameters
-    name: '<<namePrefix>>-az-avdhp-x-001'
+    name: '<<namePrefix>>dvhpcom001'
     // Non-required parameters
     customRdpProperty: 'audiocapturemode:i:1;audiomode:i:0;drivestoredirect:s:;redirectclipboard:i:1;redirectcomports:i:1;redirectprinters:i:1;redirectsmartcards:i:1;screen mode id:i:2;'
-    diagnosticEventHubAuthorizationRuleId: '/subscriptions/<<subscriptionId>>/resourceGroups/validation-rg/providers/Microsoft.EventHub/namespaces/adp-<<namePrefix>>-az-evhns-x-001/AuthorizationRules/RootManageSharedAccessKey'
-    diagnosticEventHubName: 'adp-<<namePrefix>>-az-evh-x-001'
+    diagnosticEventHubAuthorizationRuleId: '<diagnosticEventHubAuthorizationRuleId>'
+    diagnosticEventHubName: '<diagnosticEventHubName>'
     diagnosticLogsRetentionInDays: 7
-    diagnosticStorageAccountId: '/subscriptions/<<subscriptionId>>/resourceGroups/validation-rg/providers/Microsoft.Storage/storageAccounts/adp<<namePrefix>>azsax001'
-    diagnosticWorkspaceId: '/subscriptions/<<subscriptionId>>/resourcegroups/validation-rg/providers/microsoft.operationalinsights/workspaces/adp-<<namePrefix>>-az-law-x-001'
+    diagnosticStorageAccountId: '<diagnosticStorageAccountId>'
+    diagnosticWorkspaceId: '<diagnosticWorkspaceId>'
     hostpoolDescription: 'My first AVD Host Pool'
     hostpoolFriendlyName: 'AVDv2'
     hostpoolType: 'Pooled'
     loadBalancerType: 'BreadthFirst'
-    location: 'westeurope'
+    location: '<location>'
     lock: 'CanNotDelete'
     maxSessionLimit: 99999
     personalDesktopAssignmentType: 'Automatic'
     roleAssignments: [
       {
         principalIds: [
-          '<<deploymentSpId>>'
+          '<managedIdentityPrincipalId>'
         ]
         roleDefinitionIdOrName: 'Reader'
       }
     ]
     vmTemplate: {
-      customImageId: null
+      customImageId: '<customImageId>'
       domain: 'domainname.onmicrosoft.com'
       galleryImageOffer: 'office-365'
       galleryImagePublisher: 'microsoftwindowsdesktop'
       galleryImageSKU: '20h1-evd-o365pp'
       imageType: 'Gallery'
-      imageUri: null
+      imageUri: '<imageUri>'
       namePrefix: 'avdv2'
       osDiskType: 'StandardSSD_LRS'
       useManagedDisks: true
@@ -335,26 +335,26 @@ module hostpools './Microsoft.DesktopVirtualization/hostpools/deploy.bicep' = {
   "parameters": {
     // Required parameters
     "name": {
-      "value": "<<namePrefix>>-az-avdhp-x-001"
+      "value": "<<namePrefix>>dvhpcom001"
     },
     // Non-required parameters
     "customRdpProperty": {
       "value": "audiocapturemode:i:1;audiomode:i:0;drivestoredirect:s:;redirectclipboard:i:1;redirectcomports:i:1;redirectprinters:i:1;redirectsmartcards:i:1;screen mode id:i:2;"
     },
     "diagnosticEventHubAuthorizationRuleId": {
-      "value": "/subscriptions/<<subscriptionId>>/resourceGroups/validation-rg/providers/Microsoft.EventHub/namespaces/adp-<<namePrefix>>-az-evhns-x-001/AuthorizationRules/RootManageSharedAccessKey"
+      "value": "<diagnosticEventHubAuthorizationRuleId>"
     },
     "diagnosticEventHubName": {
-      "value": "adp-<<namePrefix>>-az-evh-x-001"
+      "value": "<diagnosticEventHubName>"
     },
     "diagnosticLogsRetentionInDays": {
       "value": 7
     },
     "diagnosticStorageAccountId": {
-      "value": "/subscriptions/<<subscriptionId>>/resourceGroups/validation-rg/providers/Microsoft.Storage/storageAccounts/adp<<namePrefix>>azsax001"
+      "value": "<diagnosticStorageAccountId>"
     },
     "diagnosticWorkspaceId": {
-      "value": "/subscriptions/<<subscriptionId>>/resourcegroups/validation-rg/providers/microsoft.operationalinsights/workspaces/adp-<<namePrefix>>-az-law-x-001"
+      "value": "<diagnosticWorkspaceId>"
     },
     "hostpoolDescription": {
       "value": "My first AVD Host Pool"
@@ -369,7 +369,7 @@ module hostpools './Microsoft.DesktopVirtualization/hostpools/deploy.bicep' = {
       "value": "BreadthFirst"
     },
     "location": {
-      "value": "westeurope"
+      "value": "<location>"
     },
     "lock": {
       "value": "CanNotDelete"
@@ -384,7 +384,7 @@ module hostpools './Microsoft.DesktopVirtualization/hostpools/deploy.bicep' = {
       "value": [
         {
           "principalIds": [
-            "<<deploymentSpId>>"
+            "<managedIdentityPrincipalId>"
           ],
           "roleDefinitionIdOrName": "Reader"
         }
@@ -392,13 +392,13 @@ module hostpools './Microsoft.DesktopVirtualization/hostpools/deploy.bicep' = {
     },
     "vmTemplate": {
       "value": {
-        "customImageId": null,
+        "customImageId": "<customImageId>",
         "domain": "domainname.onmicrosoft.com",
         "galleryImageOffer": "office-365",
         "galleryImagePublisher": "microsoftwindowsdesktop",
         "galleryImageSKU": "20h1-evd-o365pp",
         "imageType": "Gallery",
-        "imageUri": null,
+        "imageUri": "<imageUri>",
         "namePrefix": "avdv2",
         "osDiskType": "StandardSSD_LRS",
         "useManagedDisks": true,