diff --git a/locals.role_assignments.tf b/locals.role_assignments.tf
index 5576d0171..86bfe1fa5 100644
--- a/locals.role_assignments.tf
+++ b/locals.role_assignments.tf
@@ -37,3 +37,11 @@ locals {
     (role.role_assignment_id) => role.role_assignment_config
   }
 }
+
+# The following locals is required to resolve bug as per https://github.com/Azure/terraform-azurerm-caf-enterprise-scale/issues/794
+# This locals is used by resource "azurerm_role_assignment" "private_dns_zone_contributor_connectivity"
+# in resources.role_assignments.tf to determine if the connectivity management group exists
+
+locals {
+  connectivity_mg_exists = length([for k, v in local.es_landing_zones_map : v if(v.id == "${var.root_id}-connectivity")]) > 0
+}
\ No newline at end of file
diff --git a/resources.role_assignments.tf b/resources.role_assignments.tf
index 8d72e1746..e25e4944b 100644
--- a/resources.role_assignments.tf
+++ b/resources.role_assignments.tf
@@ -97,3 +97,21 @@ resource "time_sleep" "after_azurerm_role_assignment" {
   create_duration  = local.create_duration_delay["after_azurerm_role_assignment"]
   destroy_duration = local.destroy_duration_delay["after_azurerm_role_assignment"]
 }
+
+# Role Assignment required to resolve bug as per https://github.com/Azure/terraform-azurerm-caf-enterprise-scale/issues/794
+# Role assignment will add "Private DNS Zone Contributor" role def for the policy assignment's Managed Identity
+# on the connectivity management group
+resource "azurerm_role_assignment" "private_dns_zone_contributor_connectivity" {
+  for_each             = local.connectivity_mg_exists ? { for k, v in azurerm_management_group_policy_assignment.enterprise_scale : k => v if endswith(k, "Deploy-Private-DNS-Zones") } : {}
+  role_definition_name = "Private DNS Zone Contributor"
+  scope                = "/providers/Microsoft.Management/managementGroups/${var.root_id}-connectivity"
+  principal_id         = each.value.identity[0].principal_id
+
+  depends_on = [
+    time_sleep.after_azurerm_management_group,
+    time_sleep.after_azurerm_policy_definition,
+    time_sleep.after_azurerm_policy_set_definition,
+    time_sleep.after_azurerm_policy_assignment,
+    azurerm_role_assignment.policy_assignment,
+  ]
+}
\ No newline at end of file
diff --git a/tests/modules/test_002_add_custom_core/baseline_values.json b/tests/modules/test_002_add_custom_core/baseline_values.json
index 68c58bf2a..6231be947 100644
--- a/tests/modules/test_002_add_custom_core/baseline_values.json
+++ b/tests/modules/test_002_add_custom_core/baseline_values.json
@@ -7645,6 +7645,44 @@
               ]
             }
           },
+          {
+            "address": "module.test_core.azurerm_role_assignment.private_dns_zone_contributor_connectivity[\"/providers/Microsoft.Management/managementGroups/root-id-1-corp/providers/Microsoft.Authorization/policyAssignments/Deploy-Private-DNS-Zones\"]",
+            "mode": "managed",
+            "type": "azurerm_role_assignment",
+            "name": "private_dns_zone_contributor_connectivity",
+            "index": "/providers/Microsoft.Management/managementGroups/root-id-1-corp/providers/Microsoft.Authorization/policyAssignments/Deploy-Private-DNS-Zones",
+            "provider_name": "registry.terraform.io/hashicorp/azurerm",
+            "schema_version": 0,
+            "values": {
+              "condition": null,
+              "condition_version": null,
+              "delegated_managed_identity_resource_id": null,
+              "description": null,
+              "role_definition_name": "Private DNS Zone Contributor",
+              "scope": "/providers/Microsoft.Management/managementGroups/root-id-1-connectivity",
+              "timeouts": null
+            },
+            "sensitive_values": {}
+          },
+          {
+            "address": "module.test_core.azurerm_role_assignment.private_dns_zone_contributor_connectivity[\"/providers/Microsoft.Management/managementGroups/root-id-1-demo-corp/providers/Microsoft.Authorization/policyAssignments/Deploy-Private-DNS-Zones\"]",
+            "mode": "managed",
+            "type": "azurerm_role_assignment",
+            "name": "private_dns_zone_contributor_connectivity",
+            "index": "/providers/Microsoft.Management/managementGroups/root-id-1-demo-corp/providers/Microsoft.Authorization/policyAssignments/Deploy-Private-DNS-Zones",
+            "provider_name": "registry.terraform.io/hashicorp/azurerm",
+            "schema_version": 0,
+            "values": {
+              "condition": null,
+              "condition_version": null,
+              "delegated_managed_identity_resource_id": null,
+              "description": null,
+              "role_definition_name": "Private DNS Zone Contributor",
+              "scope": "/providers/Microsoft.Management/managementGroups/root-id-1-connectivity",
+              "timeouts": null
+            },
+            "sensitive_values": {}
+          },
           {
             "address": "module.test_core.azurerm_role_definition.enterprise_scale[\"/providers/Microsoft.Authorization/roleDefinitions/07824e45-af54-586f-a5f0-4bb8676cb3a2\"]",
             "mode": "managed",
diff --git a/tests/modules/test_003_add_mgmt_conn/baseline_values.json b/tests/modules/test_003_add_mgmt_conn/baseline_values.json
index f9ec94704..e67f1c531 100644
--- a/tests/modules/test_003_add_mgmt_conn/baseline_values.json
+++ b/tests/modules/test_003_add_mgmt_conn/baseline_values.json
@@ -13330,6 +13330,25 @@
               ]
             }
           },
+          {
+            "address": "module.test_core.azurerm_role_assignment.private_dns_zone_contributor_connectivity[\"/providers/Microsoft.Management/managementGroups/root-id-1-corp/providers/Microsoft.Authorization/policyAssignments/Deploy-Private-DNS-Zones\"]",
+            "mode": "managed",
+            "type": "azurerm_role_assignment",
+            "name": "private_dns_zone_contributor_connectivity",
+            "index": "/providers/Microsoft.Management/managementGroups/root-id-1-corp/providers/Microsoft.Authorization/policyAssignments/Deploy-Private-DNS-Zones",
+            "provider_name": "registry.terraform.io/hashicorp/azurerm",
+            "schema_version": 0,
+            "values": {
+              "condition": null,
+              "condition_version": null,
+              "delegated_managed_identity_resource_id": null,
+              "description": null,
+              "role_definition_name": "Private DNS Zone Contributor",
+              "scope": "/providers/Microsoft.Management/managementGroups/root-id-1-connectivity",
+              "timeouts": null
+            },
+            "sensitive_values": {}
+          },
           {
             "address": "module.test_core.azurerm_role_definition.enterprise_scale[\"/providers/Microsoft.Authorization/roleDefinitions/07824e45-af54-586f-a5f0-4bb8676cb3a2\"]",
             "mode": "managed",