diff --git a/azuredevops/internal/acceptancetests/resource_build_folder_permissions_test.go b/azuredevops/internal/acceptancetests/resource_build_folder_permissions_test.go
index f37640ba8..1a5918f2b 100644
--- a/azuredevops/internal/acceptancetests/resource_build_folder_permissions_test.go
+++ b/azuredevops/internal/acceptancetests/resource_build_folder_permissions_test.go
@@ -15,7 +15,16 @@ import (
 
 func hclBuildFolderPermissions(projectName string, path string, permissions map[string]string) string {
 	rootPermissions := datahelper.JoinMap(permissions, "=", "\n")
-	description := "Integration Test Folder"
+	var requiredResources string
+	var pathArgument string
+	if path != `\\` {
+		pathArgument = `azuredevops_build_folder.test_folder.path`
+		description := "Integration Test Folder"
+		requiredResources = testutils.HclBuildFolder(projectName, path, description)
+	} else {
+		pathArgument = `"\\"`
+		requiredResources = testutils.HclProjectResource(projectName)
+	}
 
 	return fmt.Sprintf(`
 %s
@@ -28,21 +37,22 @@ data "azuredevops_group" "tf-project-readers" {
 resource "azuredevops_build_folder_permissions" "permissions" {
 	project_id  = azuredevops_project.project.id
 	principal   = data.azuredevops_group.tf-project-readers.id
-	path        = azuredevops_build_folder.test_folder.path
+	path        = %s
 
 	permissions = {
 		%s
 	}
 }
 `,
-		testutils.HclBuildFolder(projectName, path, description),
+		requiredResources,
+		pathArgument,
 		rootPermissions,
 	)
 }
 
 func TestAccBuildFolderPermissions_SetPermissions(t *testing.T) {
 	projectName := testutils.GenerateResourceName()
-	config := hclBuildFolderPermissions(projectName, `\test-folder`, map[string]string{
+	permissions := map[string]string{
 		"ViewBuilds":                 "Allow",
 		"EditBuildQuality":           "Allow",
 		"RetainIndefinitely":         "Allow",
@@ -57,27 +67,35 @@ func TestAccBuildFolderPermissions_SetPermissions(t *testing.T) {
 		"EditBuildDefinition":        "Allow",
 		"DeleteBuildDefinition":      "Deny",
 		"AdministerBuildPermissions": "NotSet",
-	})
+	}
+	configFolder := hclBuildFolderPermissions(projectName, `\test-folder`, permissions)
+	configRootFolder := hclBuildFolderPermissions(projectName, `\\`, permissions)
 	tfNodeRoot := "azuredevops_build_folder_permissions.permissions"
 
+	testFunc := resource.ComposeTestCheckFunc(
+		testutils.CheckProjectExists(projectName),
+		resource.TestCheckResourceAttrSet(tfNodeRoot, "project_id"),
+		resource.TestCheckResourceAttrSet(tfNodeRoot, "principal"),
+		resource.TestCheckResourceAttrSet(tfNodeRoot, "path"),
+		resource.TestCheckResourceAttr(tfNodeRoot, "permissions.%", "14"),
+		resource.TestCheckResourceAttr(tfNodeRoot, "permissions.ViewBuilds", "allow"),
+		resource.TestCheckResourceAttr(tfNodeRoot, "permissions.DeleteBuilds", "deny"),
+		resource.TestCheckResourceAttr(tfNodeRoot, "permissions.DeleteBuildDefinition", "deny"),
+		resource.TestCheckResourceAttr(tfNodeRoot, "permissions.AdministerBuildPermissions", "notset"),
+	)
+
 	resource.ParallelTest(t, resource.TestCase{
 		PreCheck:     func() { testutils.PreCheck(t, nil) },
 		Providers:    testutils.GetProviders(),
 		CheckDestroy: testutils.CheckProjectDestroyed,
 		Steps: []resource.TestStep{
 			{
-				Config: config,
-				Check: resource.ComposeTestCheckFunc(
-					testutils.CheckProjectExists(projectName),
-					resource.TestCheckResourceAttrSet(tfNodeRoot, "project_id"),
-					resource.TestCheckResourceAttrSet(tfNodeRoot, "principal"),
-					resource.TestCheckResourceAttrSet(tfNodeRoot, "path"),
-					resource.TestCheckResourceAttr(tfNodeRoot, "permissions.%", "14"),
-					resource.TestCheckResourceAttr(tfNodeRoot, "permissions.ViewBuilds", "allow"),
-					resource.TestCheckResourceAttr(tfNodeRoot, "permissions.DeleteBuilds", "deny"),
-					resource.TestCheckResourceAttr(tfNodeRoot, "permissions.DeleteBuildDefinition", "deny"),
-					resource.TestCheckResourceAttr(tfNodeRoot, "permissions.AdministerBuildPermissions", "notset"),
-				),
+				Config: configFolder,
+				Check:  testFunc,
+			},
+			{
+				Config: configRootFolder,
+				Check:  testFunc,
 			},
 		},
 	})
diff --git a/azuredevops/internal/service/permissions/resource_build_folder_permissions.go b/azuredevops/internal/service/permissions/resource_build_folder_permissions.go
index e373b8607..7ecfab62e 100644
--- a/azuredevops/internal/service/permissions/resource_build_folder_permissions.go
+++ b/azuredevops/internal/service/permissions/resource_build_folder_permissions.go
@@ -121,7 +121,7 @@ func createBuildFolderToken(d *schema.ResourceData, clients *client.AggregatedCl
 
 		aclToken = fmt.Sprintf("%s/%s", projectID.(string), transformedPath)
 	} else {
-		aclToken = fmt.Sprintf("%s/%s", projectID.(string), *Folder.Path)
+		aclToken = fmt.Sprintf("%s", projectID.(string))
 	}
 
 	return aclToken, nil
diff --git a/azuredevops/internal/service/permissions/resource_build_folder_permissions_test.go b/azuredevops/internal/service/permissions/resource_build_folder_permissions_test.go
index 2665837fb..4b951c435 100644
--- a/azuredevops/internal/service/permissions/resource_build_folder_permissions_test.go
+++ b/azuredevops/internal/service/permissions/resource_build_folder_permissions_test.go
@@ -62,7 +62,7 @@ func TestBuildFolderPermissions_CreateBuildFolderToken(t *testing.T) {
 	token, err = createBuildFolderToken(d, clients)
 	assert.NotEmpty(t, token)
 	assert.Nil(t, err)
-	assert.Equal(t, "9083e944-8e9e-405e-960a-c80180aa71e6/\\", token)
+	assert.Equal(t, "9083e944-8e9e-405e-960a-c80180aa71e6", token)
 
 	d = getBuildFolderPermissionsResource(t, "", "")
 	token, err = createBuildFolderToken(d, clients)
diff --git a/website/docs/r/build_folder_permissions.html.markdown b/website/docs/r/build_folder_permissions.html.markdown
index a47d68fce..d90831c60 100644
--- a/website/docs/r/build_folder_permissions.html.markdown
+++ b/website/docs/r/build_folder_permissions.html.markdown
@@ -12,6 +12,7 @@ Manages permissions for a Build Folder
 ~> **Note** Permissions can be assigned to group principals and not to single user principals.
 
 ## Example Usage
+### Set specific folder permissions
 
 ```hcl
 resource "azuredevops_project" "example" {
@@ -56,6 +57,31 @@ resource "azuredevops_build_folder_permissions" "example" {
   }
 }
 ```
+### Set root folder permissions
+```hcl
+resource "azuredevops_project" "example" {
+  name               = "Example Project"
+  work_item_template = "Agile"
+  version_control    = "Git"
+  visibility         = "private"
+  description        = "Managed by Terraform"
+}
+
+data "azuredevops_group" "example-readers" {
+  project_id = azuredevops_project.example.id
+  name       = "Readers"
+}
+
+resource "azuredevops_build_folder_permissions" "example" {
+  project_id = azuredevops_project.example.id
+  path       = "\\"
+  principal  = data.azuredevops_group.example-readers.id
+
+  permissions = {
+    "RetainIndefinitely": "Allow"
+  }
+}
+```
 
 ## Argument Reference