diff --git a/sdk/storage/azdatalake/CHANGELOG.md b/sdk/storage/azdatalake/CHANGELOG.md
index 3a8572fe917e..e3f976bc186b 100644
--- a/sdk/storage/azdatalake/CHANGELOG.md
+++ b/sdk/storage/azdatalake/CHANGELOG.md
@@ -1,5 +1,16 @@
 # Release History
 
+## 1.1.0-beta.2 (Unreleased)
+
+### Features Added
+* HNS Encryption Scope support
+
+### Breaking Changes
+
+### Bugs Fixed
+
+### Other Changes
+
 ## 1.1.0-beta.1 (2024-01-10)
 
 ### Features Added
diff --git a/sdk/storage/azdatalake/assets.json b/sdk/storage/azdatalake/assets.json
index 81645a340794..71e63fe6e1e3 100644
--- a/sdk/storage/azdatalake/assets.json
+++ b/sdk/storage/azdatalake/assets.json
@@ -2,5 +2,5 @@
   "AssetsRepo": "Azure/azure-sdk-assets",
   "AssetsRepoPrefixPath": "go",
   "TagPrefix": "go/storage/azdatalake",
-  "Tag": "go/storage/azdatalake_7a31b2404b"
+  "Tag": "go/storage/azdatalake_9248522dce"
 }
diff --git a/sdk/storage/azdatalake/filesystem/client_test.go b/sdk/storage/azdatalake/filesystem/client_test.go
index a1f42713d8cd..1b5ecc4b2639 100644
--- a/sdk/storage/azdatalake/filesystem/client_test.go
+++ b/sdk/storage/azdatalake/filesystem/client_test.go
@@ -102,8 +102,9 @@ func (s *RecordedTestSuite) TestCreateFilesystemWithOptions() {
 	metadata := map[string]*string{"foo": &testStr, "bar": &testStr}
 	access := filesystem.FileSystem
 	opts := filesystem.CreateOptions{
-		Metadata: metadata,
-		Access:   &access,
+		Metadata:     metadata,
+		Access:       &access,
+		CPKScopeInfo: &testcommon.TestCPKScopeInfo,
 	}
 	fsClient, err := testcommon.GetFileSystemClient(filesystemName, s.T(), testcommon.TestAccountDatalake, nil)
 	_require.NoError(err)
@@ -116,6 +117,7 @@ func (s *RecordedTestSuite) TestCreateFilesystemWithOptions() {
 	_require.NoError(err)
 	_require.NotNil(props.Metadata)
 	_require.Equal(*props.PublicAccess, filesystem.FileSystem)
+	_require.Equal(props.DefaultEncryptionScope, &testcommon.TestEncryptionScope)
 }
 
 func (s *RecordedTestSuite) TestCreateFilesystemWithFileAccess() {
@@ -262,6 +264,34 @@ func (s *RecordedTestSuite) TestFilesystemGetPropertiesWithLease() {
 	_require.NoError(err)
 }
 
+func (s *RecordedTestSuite) TestFilesystemGetPropertiesDefaultEncryptionScopeAndOverride() {
+	_require := require.New(s.T())
+	testName := s.T().Name()
+
+	filesystemName := testcommon.GenerateFileSystemName(testName)
+	fsClient, err := testcommon.GetFileSystemClient(filesystemName, s.T(), testcommon.TestAccountDatalake, nil)
+	_require.NoError(err)
+	defer testcommon.DeleteFileSystem(context.Background(), _require, fsClient)
+
+	testStr := "hello"
+	metadata := map[string]*string{"foo": &testStr, "bar": &testStr}
+	access := filesystem.FileSystem
+
+	opts := filesystem.CreateOptions{
+		Metadata:     metadata,
+		Access:       &access,
+		CPKScopeInfo: &testcommon.TestCPKScopeInfo,
+	}
+	_, err = fsClient.Create(context.Background(), &opts)
+	_require.NoError(err)
+
+	resp, err := fsClient.GetProperties(context.Background(), nil)
+	_require.NoError(err)
+	_require.Equal(resp.DenyEncryptionScopeOverride, to.Ptr(false))
+	_require.Equal(resp.DefaultEncryptionScope, &testcommon.TestEncryptionScope)
+
+}
+
 func (s *RecordedTestSuite) TestFilesystemDelete() {
 	_require := require.New(s.T())
 	testName := s.T().Name()
diff --git a/sdk/storage/azdatalake/internal/testcommon/clients_auth.go b/sdk/storage/azdatalake/internal/testcommon/clients_auth.go
index 7a45a06c5385..db202ebf0909 100644
--- a/sdk/storage/azdatalake/internal/testcommon/clients_auth.go
+++ b/sdk/storage/azdatalake/internal/testcommon/clients_auth.go
@@ -12,6 +12,7 @@ import (
 	"fmt"
 	"github.com/Azure/azure-sdk-for-go/sdk/azcore/policy"
 	"github.com/Azure/azure-sdk-for-go/sdk/azidentity"
+	"github.com/Azure/azure-sdk-for-go/sdk/storage/azblob/container"
 	"testing"
 	"time"
 
@@ -63,6 +64,11 @@ var (
 		EncryptionKeySHA256: &testEncryptedHash,
 		EncryptionAlgorithm: &testEncryptionAlgorithm,
 	}
+	TestEncryptionScope = "datalaketestencryptionscope"
+	TestCPKScopeInfo    = container.CPKScopeInfo{
+		DefaultEncryptionScope:         &TestEncryptionScope,
+		PreventEncryptionScopeOverride: to.Ptr(false),
+	}
 )
 
 var BasicHeaders = file.HTTPHeaders{
diff --git a/sdk/storage/azdatalake/service/client_test.go b/sdk/storage/azdatalake/service/client_test.go
index 8720bba2980f..271c3c214ba5 100644
--- a/sdk/storage/azdatalake/service/client_test.go
+++ b/sdk/storage/azdatalake/service/client_test.go
@@ -92,6 +92,35 @@ func (s *ServiceUnrecordedTestsSuite) TestServiceClientFromConnectionString() {
 	defer testcommon.DeleteFileSystem(context.Background(), _require, fsClient)
 }
 
+func (s *ServiceRecordedTestsSuite) TestCreateFilesystemsWithOptions() {
+	_require := require.New(s.T())
+	testName := s.T().Name()
+	svcClient, err := testcommon.GetServiceClientFromConnectionString(s.T(), testcommon.TestAccountDefault, nil)
+	_require.NoError(err)
+	md := map[string]*string{
+		"foo": to.Ptr("foovalue"),
+		"bar": to.Ptr("barvalue"),
+	}
+	cpkScopeInfo := &testcommon.TestCPKScopeInfo
+
+	fsName := testcommon.GenerateFileSystemName(testName)
+	fsClient := testcommon.ServiceGetFileSystemClient(fsName, svcClient)
+
+	_, err = fsClient.Create(context.Background(), &filesystem.CreateOptions{Metadata: md, CPKScopeInfo: cpkScopeInfo})
+	defer func(fsClient *filesystem.Client, ctx context.Context, options *filesystem.DeleteOptions) {
+		_, err := fsClient.Delete(ctx, options)
+		if err != nil {
+			_require.NoError(err)
+		}
+	}(fsClient, context.Background(), nil)
+
+	_require.NoError(err)
+	resp, err := fsClient.GetProperties(context.Background(), nil)
+
+	_require.NoError(err)
+	_require.Equal(resp.DefaultEncryptionScope, &testcommon.TestEncryptionScope)
+}
+
 func (s *ServiceRecordedTestsSuite) TestSetPropertiesLogging() {
 	_require := require.New(s.T())
 	svcClient, err := testcommon.GetServiceClient(s.T(), testcommon.TestAccountDefault, nil)