diff --git a/.github/workflows/ms.network.applicationsecuritygroups.yml b/.github/workflows/ms.network.applicationsecuritygroups.yml
index f91fd36990..e6080afa62 100644
--- a/.github/workflows/ms.network.applicationsecuritygroups.yml
+++ b/.github/workflows/ms.network.applicationsecuritygroups.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: '${{ secrets.ARM_SUBSCRIPTION_ID }}'
diff --git a/modules/Microsoft.Network/applicationSecurityGroups/.test/common/dependencies.bicep b/modules/Microsoft.Network/applicationSecurityGroups/.test/common/dependencies.bicep
new file mode 100644
index 0000000000..7371d4437b
--- /dev/null
+++ b/modules/Microsoft.Network/applicationSecurityGroups/.test/common/dependencies.bicep
@@ -0,0 +1,14 @@
+@description('Optional. The location to deploy to.')
+param location string = resourceGroup().location
+
+@description('Required. The name of the Managed Identity to create.')
+param managedIdentityName string
+
+resource managedIdentity 'Microsoft.ManagedIdentity/userAssignedIdentities@2018-11-30' = {
+    name: managedIdentityName
+    location: location
+}
+
+@description('The principal ID of the created Managed Identity.')
+output managedIdentityPrincipalId string = managedIdentity.properties.principalId
+
diff --git a/modules/Microsoft.Network/applicationSecurityGroups/.test/common/deploy.test.bicep b/modules/Microsoft.Network/applicationSecurityGroups/.test/common/deploy.test.bicep
new file mode 100644
index 0000000000..3117f581df
--- /dev/null
+++ b/modules/Microsoft.Network/applicationSecurityGroups/.test/common/deploy.test.bicep
@@ -0,0 +1,54 @@
+targetScope = 'subscription'
+
+// ========== //
+// Parameters //
+// ========== //
+@description('Optional. The name of the resource group to deploy for testing purposes.')
+@maxLength(90)
+param resourceGroupName string = 'ms.network.applicationsecuritygroups-${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 = 'nasgcom'
+
+// =========== //
+// 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>>${serviceShort}001'
+    lock: 'CanNotDelete'
+    roleAssignments: [
+      {
+        principalIds: [
+          resourceGroupResources.outputs.managedIdentityPrincipalId
+        ]
+        roleDefinitionIdOrName: 'Reader'
+      }
+    ]
+  }
+}
diff --git a/modules/Microsoft.Network/applicationSecurityGroups/.test/parameters.json b/modules/Microsoft.Network/applicationSecurityGroups/.test/parameters.json
deleted file mode 100644
index 8bfef178fc..0000000000
--- a/modules/Microsoft.Network/applicationSecurityGroups/.test/parameters.json
+++ /dev/null
@@ -1,22 +0,0 @@
-{
-    "$schema": "https://schema.management.azure.com/schemas/2019-04-01/deploymentParameters.json#",
-    "contentVersion": "1.0.0.0",
-    "parameters": {
-        "name": {
-            "value": "<<namePrefix>>-az-asg-x-001"
-        },
-        "lock": {
-            "value": "CanNotDelete"
-        },
-        "roleAssignments": {
-            "value": [
-                {
-                    "roleDefinitionIdOrName": "Reader",
-                    "principalIds": [
-                        "<<deploymentSpId>>"
-                    ]
-                }
-            ]
-        }
-    }
-}
diff --git a/modules/Microsoft.Network/applicationSecurityGroups/readme.md b/modules/Microsoft.Network/applicationSecurityGroups/readme.md
index 66b053aa02..f62f289a45 100644
--- a/modules/Microsoft.Network/applicationSecurityGroups/readme.md
+++ b/modules/Microsoft.Network/applicationSecurityGroups/readme.md
@@ -155,7 +155,7 @@ 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>
 
@@ -163,16 +163,16 @@ The following module usage examples are retrieved from the content of the files
 
 ```bicep
 module applicationSecurityGroups './Microsoft.Network/applicationSecurityGroups/deploy.bicep' = {
-  name: '${uniqueString(deployment().name)}-ApplicationSecurityGroups'
+  name: '${uniqueString(deployment().name)}-test-nasgcom'
   params: {
     // Required parameters
-    name: '<<namePrefix>>-az-asg-x-001'
+    name: '<<namePrefix>>nasgcom001'
     // Non-required parameters
     lock: 'CanNotDelete'
     roleAssignments: [
       {
         principalIds: [
-          '<<deploymentSpId>>'
+          '<managedIdentityPrincipalId>'
         ]
         roleDefinitionIdOrName: 'Reader'
       }
@@ -195,7 +195,7 @@ module applicationSecurityGroups './Microsoft.Network/applicationSecurityGroups/
   "parameters": {
     // Required parameters
     "name": {
-      "value": "<<namePrefix>>-az-asg-x-001"
+      "value": "<<namePrefix>>nasgcom001"
     },
     // Non-required parameters
     "lock": {
@@ -205,7 +205,7 @@ module applicationSecurityGroups './Microsoft.Network/applicationSecurityGroups/
       "value": [
         {
           "principalIds": [
-            "<<deploymentSpId>>"
+            "<managedIdentityPrincipalId>"
           ],
           "roleDefinitionIdOrName": "Reader"
         }