diff --git a/website/docs/r/virtual_machine.html.markdown b/website/docs/r/virtual_machine.html.markdown
index 0213d772c971..cf4019d33250 100644
--- a/website/docs/r/virtual_machine.html.markdown
+++ b/website/docs/r/virtual_machine.html.markdown
@@ -10,7 +10,7 @@ description: |-
 
 Create a virtual machine.
 
-## Example Usage with Managed Disks (Recommended)
+## Example Usage with Managed Disks and Azure Platform Images (Recommended)
 
 ```hcl
 resource "azurerm_resource_group" "test" {
@@ -113,6 +113,116 @@ resource "azurerm_virtual_machine" "test" {
 }
 ```
 
+## Example Usage with Managed Disks and Custom Images (Recommended)
+
+```hcl
+#Assume that custom image has been already created in the 'customimage' resource group
+data "azurerm_resource_group" "image" {
+  name = "customimage"
+}
+
+data "azurerm_image" "image" {
+  name                = "myCustomImage"
+  resource_group_name = "${data.azurerm_resource_group.image.name}"
+}
+
+resource "azurerm_resource_group" "test" {
+  name     = "acctestrg"
+  location = "West US 2"
+}
+
+resource "azurerm_virtual_network" "test" {
+  name                = "acctvn"
+  address_space       = ["10.0.0.0/16"]
+  location            = "${azurerm_resource_group.test.location}"
+  resource_group_name = "${azurerm_resource_group.test.name}"
+}
+
+resource "azurerm_subnet" "test" {
+  name                 = "acctsub"
+  resource_group_name  = "${azurerm_resource_group.test.name}"
+  virtual_network_name = "${azurerm_virtual_network.test.name}"
+  address_prefix       = "10.0.2.0/24"
+}
+
+resource "azurerm_network_interface" "test" {
+  name                = "acctni"
+  location            = "${azurerm_resource_group.test.location}"
+  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_managed_disk" "test" {
+  name                 = "datadisk_existing"
+  location             = "${azurerm_resource_group.test.location}"
+  resource_group_name  = "${azurerm_resource_group.test.name}"
+  storage_account_type = "Standard_LRS"
+  create_option        = "Empty"
+  disk_size_gb         = "1023"
+}
+
+resource "azurerm_virtual_machine" "test" {
+  name                  = "acctvm"
+  location              = "${azurerm_resource_group.test.location}"
+  resource_group_name   = "${azurerm_resource_group.test.name}"
+  network_interface_ids = ["${azurerm_network_interface.test.id}"]
+  vm_size               = "Standard_DS1_v2"
+
+  # Uncomment this line to delete the OS disk automatically when deleting the VM
+  # delete_os_disk_on_termination = true
+
+  # Uncomment this line to delete the data disks automatically when deleting the VM
+  # delete_data_disks_on_termination = true
+
+  storage_profile_image_reference {
+    id="${data.azurerm_image.image.id}"
+  }
+
+  storage_os_disk {
+    name              = "myosdisk1"
+    caching           = "ReadWrite"
+    create_option     = "FromImage"
+    managed_disk_type = "Standard_LRS"
+  }
+
+  # Optional data disks
+  storage_data_disk {
+    name              = "datadisk_new"
+    managed_disk_type = "Standard_LRS"
+    create_option     = "Empty"
+    lun               = 0
+    disk_size_gb      = "1023"
+  }
+
+  storage_data_disk {
+    name            = "${azurerm_managed_disk.test.name}"
+    managed_disk_id = "${azurerm_managed_disk.test.id}"
+    create_option   = "Attach"
+    lun             = 1
+    disk_size_gb    = "${azurerm_managed_disk.test.disk_size_gb}"
+  }
+
+  os_profile {
+    computer_name  = "hostname"
+    admin_username = "testadmin"
+    admin_password = "Password1234!"
+  }
+
+  os_profile_linux_config {
+    disable_password_authentication = false
+  }
+
+  tags {
+    environment = "staging"
+  }
+}
+```
+
 ## Example Usage with Unmanaged Disks
 
 ```hcl