diff --git a/builtin/providers/azurerm/resource_arm_virtual_machine.go b/builtin/providers/azurerm/resource_arm_virtual_machine.go
index 44572a48d..6bbdf28bb 100644
--- a/builtin/providers/azurerm/resource_arm_virtual_machine.go
+++ b/builtin/providers/azurerm/resource_arm_virtual_machine.go
@@ -147,16 +147,18 @@ func resourceArmVirtualMachine() *schema.Resource {
 						},
 
 						"managed_disk_id": {
-							Type:     schema.TypeString,
-							Optional: true,
-							ForceNew: true,
-							Computed: true,
+							Type:          schema.TypeString,
+							Optional:      true,
+							ForceNew:      true,
+							Computed:      true,
+							ConflictsWith: []string{"storage_os_disk.vhd_uri"},
 						},
 
 						"managed_disk_type": {
-							Type:     schema.TypeString,
-							Optional: true,
-							Computed: true,
+							Type:          schema.TypeString,
+							Optional:      true,
+							Computed:      true,
+							ConflictsWith: []string{"storage_os_disk.vhd_uri"},
 							ValidateFunc: validation.StringInSlice([]string{
 								string(compute.PremiumLRS),
 								string(compute.StandardLRS),
@@ -211,16 +213,18 @@ func resourceArmVirtualMachine() *schema.Resource {
 						},
 
 						"managed_disk_id": {
-							Type:     schema.TypeString,
-							Optional: true,
-							ForceNew: true,
-							Computed: true,
+							Type:          schema.TypeString,
+							Optional:      true,
+							ForceNew:      true,
+							Computed:      true,
+							ConflictsWith: []string{"storage_data_disk.vhd_uri"},
 						},
 
 						"managed_disk_type": {
-							Type:     schema.TypeString,
-							Optional: true,
-							Computed: true,
+							Type:          schema.TypeString,
+							Optional:      true,
+							Computed:      true,
+							ConflictsWith: []string{"storage_data_disk.vhd_uri"},
 							ValidateFunc: validation.StringInSlice([]string{
 								string(compute.PremiumLRS),
 								string(compute.StandardLRS),
@@ -1299,12 +1303,6 @@ func expandAzureRmVirtualMachineDataDisk(d *schema.ResourceData) ([]compute.Data
 			data_disk.ManagedDisk = managedDisk
 		}
 
-		if vhdURI != "" && managedDiskID != "" {
-			return nil, fmt.Errorf("[ERROR] Conflict between `vhd_uri` and `managed_disk_id` (only one or the other can be used)")
-		}
-		if vhdURI != "" && managedDiskType != "" {
-			return nil, fmt.Errorf("[ERROR] Conflict between `vhd_uri` and `managed_disk_type` (only one or the other can be used)")
-		}
 		if managedDiskID == "" && strings.EqualFold(string(data_disk.CreateOption), string(compute.Attach)) {
 			return nil, fmt.Errorf("[ERROR] Must specify which disk to attach")
 		}
@@ -1416,12 +1414,6 @@ func expandAzureRmVirtualMachineOsDisk(d *schema.ResourceData) (*compute.OSDisk,
 		osDisk.ManagedDisk = managedDisk
 	}
 
-	if vhdURI != "" && managedDiskID != "" {
-		return nil, fmt.Errorf("[ERROR] Conflict between `vhd_uri` and `managed_disk_id` (only one or the other can be used)")
-	}
-	if vhdURI != "" && managedDiskType != "" {
-		return nil, fmt.Errorf("[ERROR] Conflict between `vhd_uri` and `managed_disk_type` (only one or the other can be used)")
-	}
 	if managedDiskID == "" && strings.EqualFold(string(osDisk.CreateOption), string(compute.Attach)) {
 		return nil, fmt.Errorf("[ERROR] Must specify which disk to attach")
 	}
diff --git a/builtin/providers/azurerm/resource_arm_virtual_machine_test.go b/builtin/providers/azurerm/resource_arm_virtual_machine_test.go
index 21efd7dbe..a79eca968 100644
--- a/builtin/providers/azurerm/resource_arm_virtual_machine_test.go
+++ b/builtin/providers/azurerm/resource_arm_virtual_machine_test.go
@@ -11,6 +11,8 @@ import (
 	"github.com/hashicorp/terraform/helper/acctest"
 	"github.com/hashicorp/terraform/helper/resource"
 	"github.com/hashicorp/terraform/terraform"
+	//"regexp"
+	"regexp"
 )
 
 func TestAccAzureRMVirtualMachine_basicLinuxMachine(t *testing.T) {
@@ -599,6 +601,38 @@ func TestAccAzureRMVirtualMachine_changeSSHKey(t *testing.T) {
 	})
 }
 
+func TestAccAzureRMVirtualMachine_osDiskTypeConflict(t *testing.T) {
+	ri := acctest.RandInt()
+	config := fmt.Sprintf(testAccAzureRMVirtualMachine_osDiskTypeConflict, ri, ri, ri, ri, ri, ri, ri)
+	resource.Test(t, resource.TestCase{
+		PreCheck:     func() { testAccPreCheck(t) },
+		Providers:    testAccProviders,
+		CheckDestroy: testCheckAzureRMVirtualMachineDestroy,
+		Steps: []resource.TestStep{
+			{
+				Config:      config,
+				ExpectError: regexp.MustCompile("conflicts with storage_os_disk.0.vhd_uri"),
+			},
+		},
+	})
+}
+
+func TestAccAzureRMVirtualMachine_dataDiskTypeConflict(t *testing.T) {
+	ri := acctest.RandInt()
+	config := fmt.Sprintf(testAccAzureRMVirtualMachine_dataDiskTypeConflict, ri, ri, ri, ri, ri, ri, ri)
+	resource.Test(t, resource.TestCase{
+		PreCheck:     func() { testAccPreCheck(t) },
+		Providers:    testAccProviders,
+		CheckDestroy: testCheckAzureRMVirtualMachineDestroy,
+		Steps: []resource.TestStep{
+			{
+				Config:      config,
+				ExpectError: regexp.MustCompile("conflicts with storage_data_disk.1.vhd_uri"),
+			},
+		},
+	})
+}
+
 func testCheckAzureRMVirtualMachineExists(name string, vm *compute.VirtualMachine) resource.TestCheckFunc {
 	return func(s *terraform.State) error {
 		// Ensure we have enough information in state to look up in API
@@ -3234,3 +3268,173 @@ resource "azurerm_virtual_machine" "test" {
     }
 }
 `
+var testAccAzureRMVirtualMachine_osDiskTypeConflict = `
+resource "azurerm_resource_group" "test" {
+    name = "acctestRG-%d"
+    location = "West US 2"
+}
+
+resource "azurerm_virtual_network" "test" {
+    name = "acctvn-%d"
+    address_space = ["10.0.0.0/16"]
+    location = "West US 2"
+    resource_group_name = "${azurerm_resource_group.test.name}"
+}
+
+resource "azurerm_subnet" "test" {
+    name = "acctsub-%d"
+    resource_group_name = "${azurerm_resource_group.test.name}"
+    virtual_network_name = "${azurerm_virtual_network.test.name}"
+    address_prefix = "10.0.2.0/24"
+}
+
+resource "azurerm_network_interface" "test" {
+    name = "acctni-%d"
+    location = "West US 2"
+    resource_group_name = "${azurerm_resource_group.test.name}"
+
+    ip_configuration {
+    	name = "testconfiguration1"
+    	subnet_id = "${azurerm_subnet.test.id}"
+    	private_ip_address_allocation = "dynamic"
+    }
+}
+
+resource "azurerm_virtual_machine" "test" {
+    name = "acctvm-%d"
+    location = "West US 2"
+    resource_group_name = "${azurerm_resource_group.test.name}"
+    network_interface_ids = ["${azurerm_network_interface.test.id}"]
+    vm_size = "Standard_D1_v2"
+
+    storage_image_reference {
+	publisher = "Canonical"
+	offer = "UbuntuServer"
+	sku = "14.04.2-LTS"
+	version = "latest"
+    }
+
+    storage_os_disk {
+        name = "osd-%d"
+        caching = "ReadWrite"
+        create_option = "FromImage"
+        disk_size_gb = "10"
+        managed_disk_type = "Standard_LRS"
+        vhd_uri = "should_cause_conflict"
+    }
+
+    storage_data_disk {
+        name = "mydatadisk1"
+        caching = "ReadWrite"
+        create_option = "Empty"
+        disk_size_gb = "45"
+        managed_disk_type = "Standard_LRS"
+        lun = "0"
+    }
+
+    os_profile {
+	computer_name = "hn%d"
+	admin_username = "testadmin"
+	admin_password = "Password1234!"
+    }
+
+    os_profile_linux_config {
+	disable_password_authentication = false
+    }
+
+    tags {
+    	environment = "Production"
+    	cost-center = "Ops"
+    }
+}
+`
+
+var testAccAzureRMVirtualMachine_dataDiskTypeConflict = `
+resource "azurerm_resource_group" "test" {
+    name = "acctestRG-%d"
+    location = "West US 2"
+}
+
+resource "azurerm_virtual_network" "test" {
+    name = "acctvn-%d"
+    address_space = ["10.0.0.0/16"]
+    location = "West US 2"
+    resource_group_name = "${azurerm_resource_group.test.name}"
+}
+
+resource "azurerm_subnet" "test" {
+    name = "acctsub-%d"
+    resource_group_name = "${azurerm_resource_group.test.name}"
+    virtual_network_name = "${azurerm_virtual_network.test.name}"
+    address_prefix = "10.0.2.0/24"
+}
+
+resource "azurerm_network_interface" "test" {
+    name = "acctni-%d"
+    location = "West US 2"
+    resource_group_name = "${azurerm_resource_group.test.name}"
+
+    ip_configuration {
+    	name = "testconfiguration1"
+    	subnet_id = "${azurerm_subnet.test.id}"
+    	private_ip_address_allocation = "dynamic"
+    }
+}
+
+resource "azurerm_virtual_machine" "test" {
+    name = "acctvm-%d"
+    location = "West US 2"
+    resource_group_name = "${azurerm_resource_group.test.name}"
+    network_interface_ids = ["${azurerm_network_interface.test.id}"]
+    vm_size = "Standard_D1_v2"
+
+    storage_image_reference {
+	publisher = "Canonical"
+	offer = "UbuntuServer"
+	sku = "14.04.2-LTS"
+	version = "latest"
+    }
+
+    storage_os_disk {
+        name = "osd-%d"
+        caching = "ReadWrite"
+        create_option = "FromImage"
+        disk_size_gb = "10"
+        managed_disk_type = "Standard_LRS"
+    }
+
+    storage_data_disk {
+        name = "mydatadisk1"
+        caching = "ReadWrite"
+        create_option = "Empty"
+        disk_size_gb = "45"
+        managed_disk_type = "Standard_LRS"
+        lun = "0"
+    }
+
+    storage_data_disk {
+        name = "mydatadisk1"
+        vhd_uri = "should_cause_conflict"
+        caching = "ReadWrite"
+        create_option = "Empty"
+        disk_size_gb = "45"
+        managed_disk_type = "Standard_LRS"
+        lun = "1"
+    }
+
+    os_profile {
+	computer_name = "hn%d"
+	admin_username = "testadmin"
+	admin_password = "Password1234!"
+    }
+
+    os_profile_linux_config {
+	disable_password_authentication = false
+    }
+
+    tags {
+    	environment = "Production"
+    	cost-center = "Ops"
+    }
+}
+`