diff --git a/docs/wiki/Whats-new.md b/docs/wiki/Whats-new.md
index 7e68ccb818..6c83b34036 100644
--- a/docs/wiki/Whats-new.md
+++ b/docs/wiki/Whats-new.md
@@ -66,6 +66,7 @@ Here's what's changed in Enterprise Scale/Azure Landing Zones:
 - Removed duplicate policy assignment "Container Apps should only be accessible over HTTPS" from initiative [Enforce-EncryptTransit_20241211](https://www.azadvertizer.net/azpolicyinitiativesadvertizer/Enforce-EncryptTransit_2024.html). Note, this is a breaking change, and existing assignments should be removed and re-assigned.
 - Added new custom policies [Audit-Tags-Mandatory](https://www.azadvertizer.net/azpolicyadvertizer/Audit-Tags-Mandatory.html) and [Audit-Tags-Mandatory-Rg](https://www.azadvertizer.net/azpolicyadvertizer/Audit-Tags-Mandatory-Rg.html) to support auditing for the existence of mandatory tags (based on an array of tags). Not assigned by default.
 - Updated the Workload Specific Compliance initiative section in the portal accelerator to allow configuring `Audit Only` effect for workloads using the `DoNotEnforce` enforcement mode.
+- Updated the Management Group creation template to use the latest API version `2023-04-01`.
 
 ### December 2024
 
diff --git a/eslzArm/managementGroupTemplates/mgmtGroupStructure/mgmtGroups.json b/eslzArm/managementGroupTemplates/mgmtGroupStructure/mgmtGroups.json
index 37231a5fb1..612fc7adc5 100644
--- a/eslzArm/managementGroupTemplates/mgmtGroupStructure/mgmtGroups.json
+++ b/eslzArm/managementGroupTemplates/mgmtGroupStructure/mgmtGroups.json
@@ -43,14 +43,14 @@
             // Create top level management group under tenant root
             "type": "Microsoft.Management/managementGroups",
             "scope": "/",
-            "apiVersion": "2020-05-01",
+            "apiVersion": "2023-04-01",
             "name": "[parameters('topLevelManagementGroupPrefix')]",
             "properties": {}
         },
         {
             // Create management group for platform management groups
             "type": "Microsoft.Management/managementGroups",
-            "apiVersion": "2020-05-01",
+            "apiVersion": "2023-04-01",
             "scope": "/",
             "name": "[variables('enterpriseScaleManagementGroups').platform]",
             "dependsOn": [
@@ -68,7 +68,7 @@
         {
             // Create management group for landing zones
             "type": "Microsoft.Management/managementGroups",
-            "apiVersion": "2020-05-01",
+            "apiVersion": "2023-04-01",
             "scope": "/",
             "name": "[variables('enterpriseScaleManagementGroups').landingZone]",
             "dependsOn": [
@@ -86,7 +86,7 @@
         {
             // Create management group for sandbox subscriptions
             "type": "Microsoft.Management/managementGroups",
-            "apiVersion": "2020-05-01",
+            "apiVersion": "2023-04-01",
             "scope": "/",
             "name": "[variables('enterpriseScaleManagementGroups').sandboxes]",
             "dependsOn": [
@@ -104,7 +104,7 @@
         {
             // Create management group for decommissioned subscriptions
             "type": "Microsoft.Management/managementGroups",
-            "apiVersion": "2020-05-01",
+            "apiVersion": "2023-04-01",
             "scope": "/",
             "name": "[variables('enterpriseScaleManagementGroups').decommissioned]",
             "dependsOn": [
@@ -123,7 +123,7 @@
             // Create child management groups for platform resources
             "condition": "[not(empty(parameters('platformMgs')))]",
             "type": "Microsoft.Management/managementGroups",
-            "apiVersion": "2020-05-01",
+            "apiVersion": "2023-04-01",
             "scope": "/",
             "name": "[concat(parameters('topLevelManagementGroupPrefix'), '-', parameters('platformMgs')[copyIndex()])]",
             "dependsOn": [
@@ -146,7 +146,7 @@
             // Create child management groups for landing zones
             "condition": "[not(empty(parameters('landingZoneMgs')))]",
             "type": "Microsoft.Management/managementGroups",
-            "apiVersion": "2020-05-01",
+            "apiVersion": "2023-04-01",
             "scope": "/",
             "name": "[concat(parameters('topLevelManagementGroupPrefix'), '-', parameters('landingZoneMgs')[copyIndex()])]",
             "dependsOn": [
diff --git a/eslzArm/managementGroupTemplates/mgmtGroupStructure/mgmtGroupsLite.json b/eslzArm/managementGroupTemplates/mgmtGroupStructure/mgmtGroupsLite.json
index ed5291c94f..7d3c2b050e 100644
--- a/eslzArm/managementGroupTemplates/mgmtGroupStructure/mgmtGroupsLite.json
+++ b/eslzArm/managementGroupTemplates/mgmtGroupStructure/mgmtGroupsLite.json
@@ -31,14 +31,14 @@
         {
             // Create top level management group under tenant root
             "type": "Microsoft.Management/managementGroups",
-            "apiVersion": "2020-05-01",
+            "apiVersion": "2023-04-01",
             "name": "[parameters('topLevelManagementGroupPrefix')]",
             "properties": {}
         },
         {
             // Create management group for platform management groups
             "type": "Microsoft.Management/managementGroups",
-            "apiVersion": "2020-05-01",
+            "apiVersion": "2023-04-01",
             "name": "[variables('enterpriseScaleManagementGroups').platform]",
             "dependsOn": [
                 "[tenantResourceId('Microsoft.Management/managementGroups/', parameters('topLevelManagementGroupPrefix'))]"
@@ -55,7 +55,7 @@
         {
             // Create management group for landing zones
             "type": "Microsoft.Management/managementGroups",
-            "apiVersion": "2020-05-01",
+            "apiVersion": "2023-04-01",
             "name": "[variables('enterpriseScaleManagementGroups').landingZone]",
             "dependsOn": [
                 "[tenantResourceId('Microsoft.Management/managementGroups/', parameters('topLevelManagementGroupPrefix'))]"
@@ -72,7 +72,7 @@
         {
             // Create management group for sandbox subscriptions
             "type": "Microsoft.Management/managementGroups",
-            "apiVersion": "2020-05-01",
+            "apiVersion": "2023-04-01",
             "name": "[variables('enterpriseScaleManagementGroups').sandboxes]",
             "dependsOn": [
                 "[tenantResourceId('Microsoft.Management/managementGroups/', parameters('topLevelManagementGroupPrefix'))]"
@@ -89,7 +89,7 @@
         {
             // Create management group for decommissioned subscriptions
             "type": "Microsoft.Management/managementGroups",
-            "apiVersion": "2020-05-01",
+            "apiVersion": "2023-04-01",
             "name": "[variables('enterpriseScaleManagementGroups').decommissioned]",
             "dependsOn": [
                 "[tenantResourceId('Microsoft.Management/managementGroups/', parameters('topLevelManagementGroupPrefix'))]"
@@ -107,7 +107,7 @@
             // Create child management groups for landing zones
             "condition": "[not(empty(parameters('landingZoneMgs')))]",
             "type": "Microsoft.Management/managementGroups",
-            "apiVersion": "2020-05-01",
+            "apiVersion": "2023-04-01",
             "name": "[concat(parameters('topLevelManagementGroupPrefix'), '-', parameters('landingZoneMgs')[copyIndex()])]",
             "dependsOn": [
                 "[tenantResourceId('Microsoft.Management/managementGroups/', variables('enterpriseScaleManagementGroups').landingZone)]"