diff --git a/CHANGELOG.md b/CHANGELOG.md
index b592d266c..b688ef8c6 100644
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -4,6 +4,7 @@
 - [Fix bug where Debug/Trace level logs from TrackTrace API were not emitted to Application Insights](https://github.com/microsoft/ApplicationInsights-dotnet/pull/3121/changes)
 - [Fix Track API calls to not mutate the passed in dictionary if it is readonly](https://github.com/microsoft/ApplicationInsights-dotnet/pull/3119)
 - [Fix `NullReferenceException` in `TelemetryClient.Flush()` and `FlushAsync()` when called from DI scenarios](https://github.com/microsoft/ApplicationInsights-dotnet/pull/3125)
+- [Fix `ApplicationVersion` ignored: `ApplicationInsightsServiceOptions.ApplicationVersion` is now applied as `service.version` on the OpenTelemetry Resource for both AspNetCore and WorkerService packages](https://github.com/microsoft/ApplicationInsights-dotnet/pull/3124)
 
 ## Version 3.0.0
 - [Replaced `netstandard2.0` with `net8.0` target framework in `Microsoft.ApplicationInsights.NLogTarget` package.](https://github.com/microsoft/ApplicationInsights-dotnet/pull/3102)
diff --git a/NETCORE/src/Microsoft.ApplicationInsights.AspNetCore/Extensions/ApplicationInsightsExtensions.cs b/NETCORE/src/Microsoft.ApplicationInsights.AspNetCore/Extensions/ApplicationInsightsExtensions.cs
index cf68a1026..def7a8e63 100644
--- a/NETCORE/src/Microsoft.ApplicationInsights.AspNetCore/Extensions/ApplicationInsightsExtensions.cs
+++ b/NETCORE/src/Microsoft.ApplicationInsights.AspNetCore/Extensions/ApplicationInsightsExtensions.cs
@@ -133,6 +133,7 @@ internal static IOpenTelemetryBuilder UseApplicationInsightsTelemetry(this IOpen
                 })
                 .AddAzureAppServiceDetector()
                 .AddAzureVMDetector()
+                .AddDetector(sp => new ApplicationVersionResourceDetector(sp.GetRequiredService<IOptions<ApplicationInsightsServiceOptions>>().Value.ApplicationVersion))
                 .AddDetector(sp => new AspNetCoreEnvironmentResourceDetector(sp.GetService<IConfiguration>()));
 
             builder.ConfigureResource(configureResource);
diff --git a/NETCORE/src/Microsoft.ApplicationInsights.WorkerService/ApplicationInsightsExtensions.cs b/NETCORE/src/Microsoft.ApplicationInsights.WorkerService/ApplicationInsightsExtensions.cs
index 106002ee3..805c95b14 100644
--- a/NETCORE/src/Microsoft.ApplicationInsights.WorkerService/ApplicationInsightsExtensions.cs
+++ b/NETCORE/src/Microsoft.ApplicationInsights.WorkerService/ApplicationInsightsExtensions.cs
@@ -129,7 +129,8 @@ internal static IOpenTelemetryBuilder UseApplicationInsightsTelemetry(this IOpen
                     new KeyValuePair<string, object>("telemetry.distro.version", VersionUtils.GetVersion(typeof(ApplicationInsightsExtensions))),
                 })
                 .AddAzureAppServiceDetector()
-                .AddAzureVMDetector();
+                .AddAzureVMDetector()
+                .AddDetector(sp => new ApplicationVersionResourceDetector(sp.GetRequiredService<IOptions<ApplicationInsightsServiceOptions>>().Value.ApplicationVersion));
 
             builder.ConfigureResource(configureResource);
 
diff --git a/NETCORE/src/Shared/ApplicationVersionResourceDetector.cs b/NETCORE/src/Shared/ApplicationVersionResourceDetector.cs
new file mode 100644
index 000000000..221fd092f
--- /dev/null
+++ b/NETCORE/src/Shared/ApplicationVersionResourceDetector.cs
@@ -0,0 +1,30 @@
+#if AI_ASPNETCORE_WEB
+namespace Microsoft.ApplicationInsights.AspNetCore
+#else
+namespace Microsoft.ApplicationInsights.WorkerService
+#endif
+{
+    using System.Collections.Generic;
+    using Microsoft.ApplicationInsights.Internal;
+    using OpenTelemetry.Resources;
+
+    /// <summary>
+    /// Resource detector that adds the application version as a service.version resource attribute.
+    /// </summary>
+    internal class ApplicationVersionResourceDetector : IResourceDetector
+    {
+        private readonly string applicationVersion;
+
+        public ApplicationVersionResourceDetector(string applicationVersion)
+        {
+            this.applicationVersion = applicationVersion;
+        }
+
+        public Resource Detect()
+        {
+            return string.IsNullOrWhiteSpace(this.applicationVersion)
+                ? Resource.Empty
+                : new Resource([new KeyValuePair<string, object>(SemanticConventions.AttributeServiceVersion, this.applicationVersion)]);
+        }
+    }
+}
diff --git a/NETCORE/src/Shared/Shared.projitems b/NETCORE/src/Shared/Shared.projitems
index 789859897..71ae50527 100644
--- a/NETCORE/src/Shared/Shared.projitems
+++ b/NETCORE/src/Shared/Shared.projitems
@@ -10,6 +10,7 @@
   </PropertyGroup>
   <ItemGroup>
     <Compile Include="$(MSBuildThisFileDirectory)ActivityFilterProcessor.cs" />
+    <Compile Include="$(MSBuildThisFileDirectory)ApplicationVersionResourceDetector.cs" />
     <Compile Include="$(MSBuildThisFileDirectory)Extensions\ApplicationInsightsExtensions.cs" />
     <Compile Include="$(MSBuildThisFileDirectory)Extensions\ApplicationInsightsServiceOptions.cs" />
     <Compile Include="$(MSBuildThisFileDirectory)Internals\ApplicationNameProvider.cs" />
diff --git a/NETCORE/test/Shared/ConfigurationTests.cs b/NETCORE/test/Shared/ConfigurationTests.cs
index 7e44ced7e..99f675a54 100644
--- a/NETCORE/test/Shared/ConfigurationTests.cs
+++ b/NETCORE/test/Shared/ConfigurationTests.cs
@@ -1,5 +1,6 @@
 using System;
 using System.IO;
+using System.Linq;
 using Azure.Monitor.OpenTelemetry.Exporter;
 using Microsoft.Extensions.Configuration;
 using Microsoft.Extensions.DependencyInjection;
@@ -100,6 +101,31 @@ public void ReadsApplicationVersionFromApplicationInsightsSectionInConfig()
             Assert.Equal("1.0.0", options.ApplicationVersion);
         }
 
+        [Theory]
+        [InlineData("2.5.0", "2.5.0")]
+        [InlineData(null, null)]
+        [InlineData("", null)]
+        [InlineData("   ", null)]
+        public void ApplicationVersionResourceDetectorReturnsExpectedResource(string inputVersion, string expectedVersion)
+        {
+            // ARRANGE & ACT
+            var detector = new ApplicationVersionResourceDetector(inputVersion);
+            var resource = detector.Detect();
+
+            // VALIDATE
+            if (expectedVersion == null)
+            {
+                Assert.Equal(OpenTelemetry.Resources.Resource.Empty, resource);
+            }
+            else
+            {
+                Assert.NotEqual(OpenTelemetry.Resources.Resource.Empty, resource);
+                var attributes = resource.Attributes.ToDictionary(kvp => kvp.Key, kvp => kvp.Value);
+                Assert.True(attributes.ContainsKey("service.version"));
+                Assert.Equal(expectedVersion, attributes["service.version"]);
+            }
+        }
+
         [Fact]
         public void ConfigurationFlowsFromApplicationInsightsSectionToAzureMonitorExporter()
         {