diff --git a/.github/workflows/ms.insights.diagnosticsettings.yml b/.github/workflows/ms.insights.diagnosticsettings.yml
index edd2a96273..23cdae924c 100644
--- a/.github/workflows/ms.insights.diagnosticsettings.yml
+++ b/.github/workflows/ms.insights.diagnosticsettings.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: '${{ secrets.ARM_SUBSCRIPTION_ID }}'
diff --git a/modules/Microsoft.Insights/diagnosticSettings/.test/common/deploy.test.bicep b/modules/Microsoft.Insights/diagnosticSettings/.test/common/deploy.test.bicep
new file mode 100644
index 0000000000..6d9470d412
--- /dev/null
+++ b/modules/Microsoft.Insights/diagnosticSettings/.test/common/deploy.test.bicep
@@ -0,0 +1,55 @@
+targetScope = 'subscription'
+
+// ========== //
+// Parameters //
+// ========== //
+@description('Optional. The name of the resource group to deploy for testing purposes.')
+@maxLength(90)
+param resourceGroupName string = 'ms.insights.diagnosticsettings-${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 = 'idscom'
+
+// =========== //
+// Deployments //
+// =========== //
+
+// General resources
+// =================
+resource resourceGroup 'Microsoft.Resources/resourceGroups@2021-04-01' = {
+  name: resourceGroupName
+  location: location
+}
+
+// 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-${serviceShort}'
+    location: location
+  }
+}
+
+// ============== //
+// Test Execution //
+// ============== //
+
+module testDeployment '../../deploy.bicep' = {
+  name: '${uniqueString(deployment().name)}-test-${serviceShort}'
+  params: {
+    name: '<<namePrefix>>${serviceShort}001'
+    diagnosticLogsRetentionInDays: 7
+    diagnosticStorageAccountId: diagnosticDependencies.outputs.storageAccountResourceId
+    diagnosticWorkspaceId: diagnosticDependencies.outputs.logAnalyticsWorkspaceResourceId
+    diagnosticEventHubAuthorizationRuleId: diagnosticDependencies.outputs.eventHubAuthorizationRuleId
+    diagnosticEventHubName: diagnosticDependencies.outputs.eventHubNamespaceEventHubName
+  }
+}
diff --git a/modules/Microsoft.Insights/diagnosticSettings/.test/parameters.json b/modules/Microsoft.Insights/diagnosticSettings/.test/parameters.json
deleted file mode 100644
index 2e1d38512a..0000000000
--- a/modules/Microsoft.Insights/diagnosticSettings/.test/parameters.json
+++ /dev/null
@@ -1,24 +0,0 @@
-{
-    "$schema": "https://schema.management.azure.com/schemas/2019-04-01/deploymentParameters.json#",
-    "contentVersion": "1.0.0.0",
-    "parameters": {
-        "name": {
-            "value": "<<namePrefix>>-az-diag-x-001"
-        },
-        "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.Insights/diagnosticSettings/readme.md b/modules/Microsoft.Insights/diagnosticSettings/readme.md
index 94034f09b2..ff47db01c9 100644
--- a/modules/Microsoft.Insights/diagnosticSettings/readme.md
+++ b/modules/Microsoft.Insights/diagnosticSettings/readme.md
@@ -52,7 +52,7 @@ 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>
 
@@ -60,14 +60,14 @@ The following module usage examples are retrieved from the content of the files
 
 ```bicep
 module diagnosticSettings './Microsoft.Insights/diagnosticSettings/deploy.bicep' = {
-  name: '${uniqueString(deployment().name)}-DiagnosticSettings'
+  name: '${uniqueString(deployment().name)}-test-idscom'
   params: {
-    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'
-    name: '<<namePrefix>>-az-diag-x-001'
+    diagnosticStorageAccountId: '<diagnosticStorageAccountId>'
+    diagnosticWorkspaceId: '<diagnosticWorkspaceId>'
+    name: '<<namePrefix>>idscom001'
   }
 }
 ```
@@ -85,22 +85,22 @@ module diagnosticSettings './Microsoft.Insights/diagnosticSettings/deploy.bicep'
   "contentVersion": "1.0.0.0",
   "parameters": {
     "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>"
     },
     "name": {
-      "value": "<<namePrefix>>-az-diag-x-001"
+      "value": "<<namePrefix>>idscom001"
     }
   }
 }