diff --git a/.github/workflows/ms.virtualmachineimages.imagetemplates.yml b/.github/workflows/ms.virtualmachineimages.imagetemplates.yml
index 3339da4bb2..344b589037 100644
--- a/.github/workflows/ms.virtualmachineimages.imagetemplates.yml
+++ b/.github/workflows/ms.virtualmachineimages.imagetemplates.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.VirtualMachineImages/imageTemplates/.test/common/dependencies.bicep b/modules/Microsoft.VirtualMachineImages/imageTemplates/.test/common/dependencies.bicep
new file mode 100644
index 0000000000..9e2d2f0de4
--- /dev/null
+++ b/modules/Microsoft.VirtualMachineImages/imageTemplates/.test/common/dependencies.bicep
@@ -0,0 +1,59 @@
+@description('Optional. The location to deploy resources to.')
+param location string = resourceGroup().location
+
+@description('Required. The name of the Shared Image Gallery to create.')
+param galleryName string
+
+@description('Required. The name of the Image Definition to create in the Shared Image Gallery.')
+param sigImageDefinitionName string
+
+@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
+}
+
+resource gallery 'Microsoft.Compute/galleries@2022-03-03' = {
+  name: galleryName
+  location: location
+  properties: {
+  }
+}
+
+resource galleryImageDefinition 'Microsoft.Compute/galleries/images@2022-03-03' = {
+  name: sigImageDefinitionName
+  location: location
+  parent: gallery
+  properties: {
+    architecture: 'x64'
+    hyperVGeneration: 'V1'
+    identifier: {
+      offer: 'WindowsServer'
+      publisher: 'MicrosoftWindowsServer'
+      sku: '2019-Datacenter'
+    }
+    osState: 'Generalized'
+    osType: 'Windows'
+    recommended: {
+      memory: {
+        max: 16
+        min: 4
+      }
+      vCPUs: {
+        max: 8
+        min: 2
+      }
+    }
+  }
+}
+
+@description('The principal ID of the created Managed Identity.')
+output managedIdentityPrincipalId string = managedIdentity.properties.principalId
+
+@description('The name of the created Managed Identity.')
+output managedIdentityName string = managedIdentity.name
+
+@description('The resource ID of the created Image Definition.')
+output sigImageDefinitionId string = galleryImageDefinition.id
diff --git a/modules/Microsoft.VirtualMachineImages/imageTemplates/.test/common/deploy.test.bicep b/modules/Microsoft.VirtualMachineImages/imageTemplates/.test/common/deploy.test.bicep
new file mode 100644
index 0000000000..3a1a45991a
--- /dev/null
+++ b/modules/Microsoft.VirtualMachineImages/imageTemplates/.test/common/deploy.test.bicep
@@ -0,0 +1,88 @@
+targetScope = 'subscription'
+
+// ========== //
+// Parameters //
+// ========== //
+@description('Optional. The name of the resource group to deploy for testing purposes.')
+@maxLength(90)
+param resourceGroupName string = 'ms.virtualmachineimages.imagetemplates-${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 = 'vmicom'
+
+// =========== //
+// 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}'
+    sigImageDefinitionName: 'dep-<<namePrefix>>-imgd-${serviceShort}'
+    galleryName: 'dep<<namePrefix>>sig${serviceShort}'
+  }
+}
+
+resource msi_roleAssignment 'Microsoft.Authorization/roleAssignments@2022-04-01' = {
+  name: guid(subscription().subscriptionId, 'Contributor', '<<namePrefix>-${serviceShort}')
+  properties: {
+    roleDefinitionId: subscriptionResourceId('Microsoft.Authorization/roleDefinitions', 'b24988ac-6180-42a0-ab88-20f7382dd24c') // Contributor
+    principalId: resourceGroupResources.outputs.managedIdentityPrincipalId
+    principalType: 'ServicePrincipal'
+  }
+}
+
+// ============== //
+// Test Execution //
+// ============== //
+
+module testDeployment '../../deploy.bicep' = {
+  scope: resourceGroup
+  name: '${uniqueString(deployment().name)}-test-${serviceShort}'
+  params: {
+    name: '<<namePrefix>>${serviceShort}001'
+    customizationSteps: [
+      {
+        restartTimeout: '30m'
+        type: 'WindowsRestart'
+      }
+    ]
+    imageSource: {
+      offer: 'Windows-10'
+      publisher: 'MicrosoftWindowsDesktop'
+      sku: '19h2-evd'
+      type: 'PlatformImage'
+      version: 'latest'
+    }
+    userMsiName: resourceGroupResources.outputs.managedIdentityName
+    buildTimeoutInMinutes: 0
+    imageReplicationRegions: []
+    lock: 'CanNotDelete'
+    managedImageName: '<<namePrefix>>-mi-${serviceShort}-001'
+    osDiskSizeGB: 127
+    roleAssignments: [
+      {
+        roleDefinitionIdOrName: 'Reader'
+        principalIds: [
+          resourceGroupResources.outputs.managedIdentityPrincipalId
+        ]
+      }
+    ]
+    sigImageDefinitionId: resourceGroupResources.outputs.sigImageDefinitionId
+    subnetId: ''
+    unManagedImageName: '<<namePrefix>>-umi-${serviceShort}-001'
+    userMsiResourceGroup: resourceGroupName
+    vmSize: 'Standard_D2s_v3'
+  }
+}
diff --git a/modules/Microsoft.VirtualMachineImages/imageTemplates/.test/parameters.json b/modules/Microsoft.VirtualMachineImages/imageTemplates/.test/parameters.json
deleted file mode 100644
index df382ff2e0..0000000000
--- a/modules/Microsoft.VirtualMachineImages/imageTemplates/.test/parameters.json
+++ /dev/null
@@ -1,69 +0,0 @@
-{
-    "$schema": "https://schema.management.azure.com/schemas/2019-04-01/deploymentParameters.json#",
-    "contentVersion": "1.0.0.0",
-    "parameters": {
-        "name": {
-            "value": "<<namePrefix>>-az-imgt-x-001"
-        },
-        "lock": {
-            "value": "CanNotDelete"
-        },
-        "userMsiName": {
-            "value": "adp-<<namePrefix>>-az-msi-x-001"
-        },
-        "userMsiResourceGroup": {
-            "value": "validation-rg"
-        },
-        "buildTimeoutInMinutes": {
-            "value": 0
-        },
-        "vmSize": {
-            "value": "Standard_D2s_v3"
-        },
-        "osDiskSizeGB": {
-            "value": 127
-        },
-        "subnetId": {
-            "value": ""
-        },
-        "imageSource": {
-            "value": {
-                "type": "PlatformImage",
-                "publisher": "MicrosoftWindowsDesktop",
-                "offer": "Windows-10",
-                "sku": "19h2-evd",
-                "version": "latest"
-            }
-        },
-        "customizationSteps": {
-            "value": [
-                {
-                    "type": "WindowsRestart",
-                    "restartTimeout": "30m"
-                }
-            ]
-        },
-        "managedImageName": {
-            "value": "<<namePrefix>>-az-mi-x-001"
-        },
-        "unManagedImageName": {
-            "value": "<<namePrefix>>-az-umi-x-001"
-        },
-        "sigImageDefinitionId": {
-            "value": "/subscriptions/<<subscriptionId>>/resourceGroups/validation-rg/providers/Microsoft.Compute/galleries/adp<<namePrefix>>azsigweux001/images/adp-<<namePrefix>>-az-imgd-x-001"
-        },
-        "imageReplicationRegions": {
-            "value": []
-        },
-        "roleAssignments": {
-            "value": [
-                {
-                    "roleDefinitionIdOrName": "Reader",
-                    "principalIds": [
-                        "<<deploymentSpId>>"
-                    ]
-                }
-            ]
-        }
-    }
-}
diff --git a/modules/Microsoft.VirtualMachineImages/imageTemplates/readme.md b/modules/Microsoft.VirtualMachineImages/imageTemplates/readme.md
index 0b6c0fc743..45f0bd7704 100644
--- a/modules/Microsoft.VirtualMachineImages/imageTemplates/readme.md
+++ b/modules/Microsoft.VirtualMachineImages/imageTemplates/readme.md
@@ -274,7 +274,7 @@ 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>
 
@@ -282,7 +282,7 @@ The following module usage examples are retrieved from the content of the files
 
 ```bicep
 module imageTemplates './Microsoft.VirtualMachineImages/imageTemplates/deploy.bicep' = {
-  name: '${uniqueString(deployment().name)}-ImageTemplates'
+  name: '${uniqueString(deployment().name)}-test-vmicom'
   params: {
     // Required parameters
     customizationSteps: [
@@ -298,26 +298,26 @@ module imageTemplates './Microsoft.VirtualMachineImages/imageTemplates/deploy.bi
       type: 'PlatformImage'
       version: 'latest'
     }
-    name: '<<namePrefix>>-az-imgt-x-001'
-    userMsiName: 'adp-<<namePrefix>>-az-msi-x-001'
+    name: '<<namePrefix>>vmicom001'
+    userMsiName: '<userMsiName>'
     // Non-required parameters
     buildTimeoutInMinutes: 0
     imageReplicationRegions: []
     lock: 'CanNotDelete'
-    managedImageName: '<<namePrefix>>-az-mi-x-001'
+    managedImageName: '<<namePrefix>>-mi-vmicom-001'
     osDiskSizeGB: 127
     roleAssignments: [
       {
         principalIds: [
-          '<<deploymentSpId>>'
+          '<managedIdentityPrincipalId>'
         ]
         roleDefinitionIdOrName: 'Reader'
       }
     ]
-    sigImageDefinitionId: '/subscriptions/<<subscriptionId>>/resourceGroups/validation-rg/providers/Microsoft.Compute/galleries/adp<<namePrefix>>azsigweux001/images/adp-<<namePrefix>>-az-imgd-x-001'
+    sigImageDefinitionId: '<sigImageDefinitionId>'
     subnetId: ''
-    unManagedImageName: '<<namePrefix>>-az-umi-x-001'
-    userMsiResourceGroup: 'validation-rg'
+    unManagedImageName: '<<namePrefix>>-umi-vmicom-001'
+    userMsiResourceGroup: '<userMsiResourceGroup>'
     vmSize: 'Standard_D2s_v3'
   }
 }
@@ -354,10 +354,10 @@ module imageTemplates './Microsoft.VirtualMachineImages/imageTemplates/deploy.bi
       }
     },
     "name": {
-      "value": "<<namePrefix>>-az-imgt-x-001"
+      "value": "<<namePrefix>>vmicom001"
     },
     "userMsiName": {
-      "value": "adp-<<namePrefix>>-az-msi-x-001"
+      "value": "<userMsiName>"
     },
     // Non-required parameters
     "buildTimeoutInMinutes": {
@@ -370,7 +370,7 @@ module imageTemplates './Microsoft.VirtualMachineImages/imageTemplates/deploy.bi
       "value": "CanNotDelete"
     },
     "managedImageName": {
-      "value": "<<namePrefix>>-az-mi-x-001"
+      "value": "<<namePrefix>>-mi-vmicom-001"
     },
     "osDiskSizeGB": {
       "value": 127
@@ -379,23 +379,23 @@ module imageTemplates './Microsoft.VirtualMachineImages/imageTemplates/deploy.bi
       "value": [
         {
           "principalIds": [
-            "<<deploymentSpId>>"
+            "<managedIdentityPrincipalId>"
           ],
           "roleDefinitionIdOrName": "Reader"
         }
       ]
     },
     "sigImageDefinitionId": {
-      "value": "/subscriptions/<<subscriptionId>>/resourceGroups/validation-rg/providers/Microsoft.Compute/galleries/adp<<namePrefix>>azsigweux001/images/adp-<<namePrefix>>-az-imgd-x-001"
+      "value": "<sigImageDefinitionId>"
     },
     "subnetId": {
       "value": ""
     },
     "unManagedImageName": {
-      "value": "<<namePrefix>>-az-umi-x-001"
+      "value": "<<namePrefix>>-umi-vmicom-001"
     },
     "userMsiResourceGroup": {
-      "value": "validation-rg"
+      "value": "<userMsiResourceGroup>"
     },
     "vmSize": {
       "value": "Standard_D2s_v3"