diff --git a/public/app/plugins/datasource/grafana-azure-monitor-datasource/azure_log_analytics/azure_log_analytics_datasource.ts b/public/app/plugins/datasource/grafana-azure-monitor-datasource/azure_log_analytics/azure_log_analytics_datasource.ts
index 91e31c7614f..be06ac3e498 100644
--- a/public/app/plugins/datasource/grafana-azure-monitor-datasource/azure_log_analytics/azure_log_analytics_datasource.ts
+++ b/public/app/plugins/datasource/grafana-azure-monitor-datasource/azure_log_analytics/azure_log_analytics_datasource.ts
@@ -20,7 +20,7 @@ import { Observable, from } from 'rxjs';
 import { mergeMap } from 'rxjs/operators';
 import { getAuthType, getAzureCloud, getAzurePortalUrl } from '../credentials';
 import { isGUIDish } from '../components/ResourcePicker/utils';
-import { routeNames } from '../utils/common';
+import { interpolateVariable, routeNames } from '../utils/common';
 
 interface AdhocQuery {
   datasourceId: number;
@@ -118,7 +118,7 @@ export default class AzureLogAnalyticsDatasource extends DataSourceWithBackend<
       workspace = this.firstWorkspace;
     }
 
-    const query = templateSrv.replace(item.query, scopedVars, this.interpolateVariable);
+    const query = templateSrv.replace(item.query, scopedVars, interpolateVariable);
 
     return {
       refId: target.refId,
@@ -272,7 +272,7 @@ export default class AzureLogAnalyticsDatasource extends DataSourceWithBackend<
 
   private buildQuery(query: string, options: any, workspace: string): AdhocQuery[] {
     const querystringBuilder = new LogAnalyticsQuerystringBuilder(
-      getTemplateSrv().replace(query, {}, this.interpolateVariable),
+      getTemplateSrv().replace(query, {}, interpolateVariable),
       options,
       'TimeGenerated'
     );
@@ -293,29 +293,6 @@ export default class AzureLogAnalyticsDatasource extends DataSourceWithBackend<
     return queries;
   }
 
-  interpolateVariable(value: string, variable: { multi: any; includeAll: any }) {
-    if (typeof value === 'string') {
-      if (variable.multi || variable.includeAll) {
-        return "'" + value + "'";
-      } else {
-        return value;
-      }
-    }
-
-    if (typeof value === 'number') {
-      return value;
-    }
-
-    const quotedValues = map(value, (val) => {
-      if (typeof value === 'number') {
-        return value;
-      }
-
-      return "'" + val + "'";
-    });
-    return quotedValues.join(',');
-  }
-
   async getDefaultOrFirstSubscription(): Promise<string | undefined> {
     if (this.defaultSubscriptionId) {
       return this.defaultSubscriptionId;
diff --git a/public/app/plugins/datasource/grafana-azure-monitor-datasource/azure_resource_graph/azure_resource_graph_datasource.test.ts b/public/app/plugins/datasource/grafana-azure-monitor-datasource/azure_resource_graph/azure_resource_graph_datasource.test.ts
index 875f6f63c41..d98ec160af9 100644
--- a/public/app/plugins/datasource/grafana-azure-monitor-datasource/azure_resource_graph/azure_resource_graph_datasource.test.ts
+++ b/public/app/plugins/datasource/grafana-azure-monitor-datasource/azure_resource_graph/azure_resource_graph_datasource.test.ts
@@ -2,9 +2,6 @@ import { TemplateSrv } from 'app/features/templating/template_srv';
 import { backendSrv } from 'app/core/services/backend_srv';
 import AzureResourceGraphDatasource from './azure_resource_graph_datasource';
 import { CustomVariableModel, initialVariableModelState, VariableHide } from 'app/features/variables/types';
-import { initialCustomVariableModelState } from 'app/features/variables/custom/reducer';
-
-const templateSrv = new TemplateSrv();
 
 const single: CustomVariableModel = {
   ...initialVariableModelState,
@@ -38,7 +35,30 @@ const multi: CustomVariableModel = {
   type: 'custom',
 };
 
-templateSrv.init([single, multi]);
+const subs: CustomVariableModel = {
+  ...initialVariableModelState,
+  id: 'subs',
+  name: 'subs',
+  index: 3,
+  current: { value: ['sub-foo', 'sub-baz'], text: 'sub-foo + sub-baz', selected: true },
+  options: [
+    { selected: true, value: 'sub-foo', text: 'sub-foo' },
+    { selected: false, value: 'sub-bar', text: 'sub-bar' },
+    { selected: true, value: 'sub-baz', text: 'sub-baz' },
+  ],
+  multi: true,
+  includeAll: false,
+  query: '',
+  hide: VariableHide.dontHide,
+  type: 'custom',
+};
+
+const templateSrv = new TemplateSrv({
+  getVariables: () => [subs, single, multi],
+  getVariableWithName: jest.fn(),
+  getFilteredVariables: jest.fn(),
+});
+templateSrv.init([subs, single, multi]);
 
 jest.mock('app/core/services/backend_srv');
 jest.mock('@grafana/runtime', () => ({
@@ -77,7 +97,7 @@ describe('AzureResourceGraphDatasource', () => {
         azureResourceGraph: { query: 'Resources | var1-foo', resultFormat: 'table' },
         queryType: 'Azure Resource Graph',
         refId: undefined,
-        subscriptions: undefined,
+        subscriptions: [],
       });
     });
 
@@ -95,53 +115,27 @@ describe('AzureResourceGraphDatasource', () => {
         },
         queryType: 'Azure Resource Graph',
         refId: undefined,
-        subscriptions: undefined,
+        subscriptions: [],
       });
     });
   });
 
-  describe('When interpolating variables', () => {
-    beforeEach(() => {
-      ctx.variable = { ...initialCustomVariableModelState };
-    });
-
-    describe('and value is a string', () => {
-      it('should return an unquoted value', () => {
-        expect(ctx.ds.interpolateVariable('abc', ctx.variable)).toEqual('abc');
-      });
-    });
-
-    describe('and value is a number', () => {
-      it('should return an unquoted value', () => {
-        expect(ctx.ds.interpolateVariable(1000, ctx.variable)).toEqual(1000);
-      });
-    });
-
-    describe('and value is an array of strings', () => {
-      it('should return comma separated quoted values', () => {
-        expect(ctx.ds.interpolateVariable(['a', 'b', 'c'], ctx.variable)).toEqual("'a','b','c'");
-      });
-    });
-
-    describe('and variable allows multi-value and value is a string', () => {
-      it('should return a quoted value', () => {
-        ctx.variable.multi = true;
-        expect(ctx.ds.interpolateVariable('abc', ctx.variable)).toEqual("'abc'");
-      });
-    });
-
-    describe('and variable contains single quote', () => {
-      it('should return a quoted value', () => {
-        ctx.variable.multi = true;
-        expect(ctx.ds.interpolateVariable("a'bc", ctx.variable)).toEqual("'a'bc'");
-      });
-    });
-
-    describe('and variable allows all and value is a string', () => {
-      it('should return a quoted value', () => {
-        ctx.variable.includeAll = true;
-        expect(ctx.ds.interpolateVariable('abc', ctx.variable)).toEqual("'abc'");
-      });
+  it('should apply subscription variable', () => {
+    const target = {
+      subscriptions: ['$subs'],
+      azureResourceGraph: {
+        query: 'resources | where $__contains(name, $var3)',
+        resultFormat: '',
+      },
+    };
+    expect(ctx.ds.applyTemplateVariables(target)).toStrictEqual({
+      azureResourceGraph: {
+        query: `resources | where $__contains(name, 'var3-foo','var3-baz')`,
+        resultFormat: 'table',
+      },
+      queryType: 'Azure Resource Graph',
+      refId: undefined,
+      subscriptions: ['sub-foo', 'sub-baz'],
     });
   });
 });
diff --git a/public/app/plugins/datasource/grafana-azure-monitor-datasource/azure_resource_graph/azure_resource_graph_datasource.ts b/public/app/plugins/datasource/grafana-azure-monitor-datasource/azure_resource_graph/azure_resource_graph_datasource.ts
index 4ac37c91bd3..e768b9d2d77 100644
--- a/public/app/plugins/datasource/grafana-azure-monitor-datasource/azure_resource_graph/azure_resource_graph_datasource.ts
+++ b/public/app/plugins/datasource/grafana-azure-monitor-datasource/azure_resource_graph/azure_resource_graph_datasource.ts
@@ -3,6 +3,7 @@ import _ from 'lodash';
 import { AzureMonitorQuery, AzureDataSourceJsonData, AzureQueryType } from '../types';
 import { ScopedVars } from '@grafana/data';
 import { getTemplateSrv, DataSourceWithBackend } from '@grafana/runtime';
+import { interpolateVariable } from '../utils/common';
 
 export default class AzureResourceGraphDatasource extends DataSourceWithBackend<
   AzureMonitorQuery,
@@ -19,39 +20,26 @@ export default class AzureResourceGraphDatasource extends DataSourceWithBackend<
     }
 
     const templateSrv = getTemplateSrv();
-    const query = templateSrv.replace(item.query, scopedVars, this.interpolateVariable);
+    const variableNames = templateSrv.getVariables().map((v) => `$${v.name}`);
+    const subscriptionVar = _.find(target.subscriptions, (sub) => _.includes(variableNames, sub));
+    const interpolatedSubscriptions = templateSrv
+      .replace(subscriptionVar, scopedVars, (v: any) => v)
+      .split(',')
+      .filter((v) => v.length > 0);
+    const subscriptions = [
+      ...interpolatedSubscriptions,
+      ..._.filter(target.subscriptions, (sub) => !_.includes(variableNames, sub)),
+    ];
+    const query = templateSrv.replace(item.query, scopedVars, interpolateVariable);
 
     return {
       refId: target.refId,
       queryType: AzureQueryType.AzureResourceGraph,
-      subscriptions: target.subscriptions,
+      subscriptions,
       azureResourceGraph: {
         resultFormat: 'table',
         query,
       },
     };
   }
-
-  interpolateVariable(value: string, variable: { multi: any; includeAll: any }) {
-    if (typeof value === 'string') {
-      if (variable.multi || variable.includeAll) {
-        return "'" + value + "'";
-      } else {
-        return value;
-      }
-    }
-
-    if (typeof value === 'number') {
-      return value;
-    }
-
-    const quotedValues = _.map(value, (val) => {
-      if (typeof value === 'number') {
-        return value;
-      }
-
-      return "'" + val + "'";
-    });
-    return quotedValues.join(',');
-  }
 }
diff --git a/public/app/plugins/datasource/grafana-azure-monitor-datasource/components/SubscriptionField.tsx b/public/app/plugins/datasource/grafana-azure-monitor-datasource/components/SubscriptionField.tsx
index bb462ca5312..af76717593c 100644
--- a/public/app/plugins/datasource/grafana-azure-monitor-datasource/components/SubscriptionField.tsx
+++ b/public/app/plugins/datasource/grafana-azure-monitor-datasource/components/SubscriptionField.tsx
@@ -69,7 +69,7 @@ const SubscriptionField: React.FC<SubscriptionFieldProps> = ({
       <MultiSelect
         menuShouldPortal
         isClearable
-        value={findOptions(subscriptions, query.subscriptions)}
+        value={findOptions([...subscriptions, ...variableOptionGroup.options], query.subscriptions)}
         inputId="azure-monitor-subscriptions-field"
         onChange={onSubscriptionsChange}
         options={options}
diff --git a/public/app/plugins/datasource/grafana-azure-monitor-datasource/utils/common.test.ts b/public/app/plugins/datasource/grafana-azure-monitor-datasource/utils/common.test.ts
index d0093a106cd..e16c273a14b 100644
--- a/public/app/plugins/datasource/grafana-azure-monitor-datasource/utils/common.test.ts
+++ b/public/app/plugins/datasource/grafana-azure-monitor-datasource/utils/common.test.ts
@@ -1,4 +1,5 @@
-import { hasOption } from './common';
+import { initialCustomVariableModelState } from 'app/features/variables/custom/reducer';
+import { hasOption, interpolateVariable } from './common';
 
 describe('AzureMonitor: hasOption', () => {
   it('can find an option in flat array', () => {
@@ -40,3 +41,44 @@ describe('AzureMonitor: hasOption', () => {
     expect(hasOption(options, 'c-b')).toBeTruthy();
   });
 });
+
+describe('When interpolating variables', () => {
+  describe('and value is a string', () => {
+    it('should return an unquoted value', () => {
+      expect(interpolateVariable('abc', initialCustomVariableModelState)).toEqual('abc');
+    });
+  });
+
+  describe('and value is a number', () => {
+    it('should return an unquoted value', () => {
+      expect(interpolateVariable(1000, initialCustomVariableModelState)).toEqual(1000);
+    });
+  });
+
+  describe('and value is an array of strings', () => {
+    it('should return comma separated quoted values', () => {
+      expect(interpolateVariable(['a', 'b', 'c'], initialCustomVariableModelState)).toEqual("'a','b','c'");
+    });
+  });
+
+  describe('and variable allows multi-value and value is a string', () => {
+    it('should return a quoted value', () => {
+      const variable = { ...initialCustomVariableModelState, multi: true };
+      expect(interpolateVariable('abc', variable)).toEqual("'abc'");
+    });
+  });
+
+  describe('and variable contains single quote', () => {
+    it('should return a quoted value', () => {
+      const variable = { ...initialCustomVariableModelState, multi: true };
+      expect(interpolateVariable("a'bc", variable)).toEqual("'a'bc'");
+    });
+  });
+
+  describe('and variable allows all and value is a string', () => {
+    it('should return a quoted value', () => {
+      const variable = { ...initialCustomVariableModelState, includeAll: true };
+      expect(interpolateVariable('abc', variable)).toEqual("'abc'");
+    });
+  });
+});
diff --git a/public/app/plugins/datasource/grafana-azure-monitor-datasource/utils/common.ts b/public/app/plugins/datasource/grafana-azure-monitor-datasource/utils/common.ts
index 1a131605813..9bcfae999d6 100644
--- a/public/app/plugins/datasource/grafana-azure-monitor-datasource/utils/common.ts
+++ b/public/app/plugins/datasource/grafana-azure-monitor-datasource/utils/common.ts
@@ -1,3 +1,4 @@
+import { map } from 'lodash';
 import { rangeUtil } from '@grafana/data';
 import TimegrainConverter from '../time_grain_converter';
 import { AzureMonitorOption } from '../types';
@@ -36,3 +37,26 @@ export const routeNames = {
   appInsights: 'appinsights',
   resourceGraph: 'resourcegraph',
 };
+
+export function interpolateVariable(value: any, variable: { multi: any; includeAll: any }) {
+  if (typeof value === 'string') {
+    if (variable.multi || variable.includeAll) {
+      return "'" + value + "'";
+    } else {
+      return value;
+    }
+  }
+
+  if (typeof value === 'number') {
+    return value;
+  }
+
+  const quotedValues = map(value, (val) => {
+    if (typeof value === 'number') {
+      return value;
+    }
+
+    return "'" + val + "'";
+  });
+  return quotedValues.join(',');
+}