diff --git a/cli/azd/.vscode/cspell.yaml b/cli/azd/.vscode/cspell.yaml
index e4891ef19be..39c3852e7a3 100644
--- a/cli/azd/.vscode/cspell.yaml
+++ b/cli/azd/.vscode/cspell.yaml
@@ -141,6 +141,9 @@ overrides:
     words:
       - GHSA
       - gjrc
+  - filename: pkg/apphost/generate.go
+    words:
+      - alue
 ignorePaths:
   - "**/*_test.go"
   - "**/mock*.go"
diff --git a/cli/azd/pkg/apphost/generate.go b/cli/azd/pkg/apphost/generate.go
index e7e06c9dfb2..5fad0082bce 100644
--- a/cli/azd/pkg/apphost/generate.go
+++ b/cli/azd/pkg/apphost/generate.go
@@ -346,6 +346,10 @@ func BicepTemplate(name string, manifest *Manifest, options AppHostOptions) (*me
 			// Note: azd is not checking or validating that Default.Generate and Default.Value are not both set.
 			// The AppHost prevents this from happening by not allowing both to be set at the same time.
 		}
+		if parameter.scope != nil {
+			metadataType = azure.AzdMetadataTypeResourceGroup
+			parameterMetadata = "{}"
+		}
 		input := genInput{Name: key, Secret: parameter.Secret, Type: parameter.Type, Value: parameterDefaultValue}
 		parameters = append(parameters, autoGenInput{
 			genInput:       input,
@@ -677,7 +681,7 @@ func (b *infraGenerator) LoadManifest(m *Manifest) error {
 			if err := b.addInputParameter(name, comp); err != nil {
 				return fmt.Errorf("adding bicep parameter from resource %s (%s): %w", name, comp.Type, err)
 			}
-		case "azure.bicep.v0":
+		case "azure.bicep.v0", "azure.bicep.v1":
 			if err := b.addBicep(name, comp); err != nil {
 				return fmt.Errorf("adding bicep resource %s: %w", name, err)
 			}
@@ -827,7 +831,18 @@ func (b *infraGenerator) addBicep(name string, comp *Resource) error {
 		stringParams["location"] = "location"
 	}
 
-	b.bicepContext.BicepModules[name] = genBicepModules{Path: *comp.Path, Params: stringParams}
+	bicepScope := defaultBicepModuleScope
+	if comp.Scope != nil {
+		if comp.Scope.ResourceGroup == nil {
+			return fmt.Errorf("bicep resource %s has a scope without a resource group", name)
+		}
+		paramValue, _, err := injectValueForBicepParameter(name, "scope", *comp.Scope.ResourceGroup)
+		if err != nil {
+			return err
+		}
+		bicepScope = paramValue
+	}
+	b.bicepContext.BicepModules[name] = genBicepModules{Path: *comp.Path, Params: stringParams, Scope: bicepScope}
 	return nil
 }
 
@@ -846,6 +861,8 @@ const (
 	knownInjectedValueLogAnalytics     string = "resources.outputs.AZURE_LOG_ANALYTICS_WORKSPACE_ID"
 	knownInjectedValueContainerEnvName string = "resources.outputs.AZURE_CONTAINER_APPS_ENVIRONMENT_NAME"
 	knownInjectedValueContainerEnvId   string = "resources.outputs.AZURE_CONTAINER_APPS_ENVIRONMENT_ID"
+
+	defaultBicepModuleScope string = "rg"
 )
 
 // injectValueForBicepParameter checks for aspire-manifest and azd conventions rules for auto injecting values for
@@ -1138,6 +1155,7 @@ func (b *infraGenerator) addDaprStateStoreComponent(name string) {
 var singleQuotedStringRegex = regexp.MustCompile(`'[^']*'`)
 var propertyNameRegex = regexp.MustCompile(`'([^']*)':`)
 var jsonSimpleKeyRegex = regexp.MustCompile(`"([a-zA-Z0-9]*)":`)
+var resourceValueOnlyRefRegex = regexp.MustCompile(`^"{([a-zA-Z0-9\-]+)\.[vV]alue}"$`)
 
 type ingressDetails struct {
 	// aca ingress definition
@@ -1284,38 +1302,32 @@ func (b *infraGenerator) Compile() error {
 
 	for moduleName, module := range b.bicepContext.BicepModules {
 		for paramName, paramValue := range module.Params {
-			// bicep uses ' instead of " for strings, so we need to replace all " with '
-			singleQuoted := strings.ReplaceAll(paramValue, "\"", "'")
-
-			var evaluationError error
-			evaluatedString := singleQuotedStringRegex.ReplaceAllStringFunc(singleQuoted, func(s string) string {
-				evaluatedString, err := EvalString(s, func(s string) (string, error) {
-					return b.evalBindingRef(s, inputEmitTypeBicep)
-				})
-				if err != nil {
-					evaluationError = fmt.Errorf("evaluating bicep module %s parameter %s: %w", moduleName, paramName, err)
+			value, err := b.resolveBicepReference(paramValue)
+			if err != nil {
+				return fmt.Errorf(
+					"resolving bicep module %s, param: %s, reference %s: %w", moduleName, paramName, paramValue, err)
+			}
+			module.Params[paramName] = value
+		}
+		if module.Scope != defaultBicepModuleScope {
+			rgScope := "resourceGroup"
+			if matches := resourceValueOnlyRefRegex.FindStringSubmatch(module.Scope); len(matches) == 2 {
+				manifestResourceName := matches[1]
+				// Check if the scope is an input
+				input, hasInput := b.bicepContext.InputParameters[manifestResourceName]
+				if hasInput {
+					input.scope = &rgScope
+					b.bicepContext.InputParameters[manifestResourceName] = input
 				}
-				return evaluatedString
-			})
-			if evaluationError != nil {
-				return evaluationError
 			}
-
-			// quick check to know if evaluatedString is only holding one only reference. If so, we don't need to use
-			// the form of '%{ref}' and we can directly use ref alone.
-			if isComplexExp, val := isComplexExpression(evaluatedString); !isComplexExp {
-				module.Params[paramName] = val
-				continue
+			scope, err := b.resolveBicepReference(module.Scope)
+			if err != nil {
+				return fmt.Errorf("resolving bicep module %s scope %s: %w", moduleName, module.Scope, err)
 			}
-
-			// Property names that are valid identifiers should be declared without quotation marks and accessed
-			// using dot notation.
-			evaluatedString = propertyNameRegex.ReplaceAllString(evaluatedString, "${1}:")
-
-			// restore double {{ }} to single { } for bicep output
-			// we used double only during the evaluation to scape single brackets
-			module.Params[paramName] = strings.ReplaceAll(strings.ReplaceAll(evaluatedString, "'{{", "${"), "}}'", "}")
+			scope = fmt.Sprintf("%s(%s)", rgScope, scope)
+			module.Scope = scope
 		}
+		b.bicepContext.BicepModules[moduleName] = module
 	}
 
 	for _, kv := range b.bicepContext.KeyVaults {
@@ -1328,6 +1340,40 @@ func (b *infraGenerator) Compile() error {
 	return nil
 }
 
+// resolve a reference for bicep types. The reference can be from a parameter or from the scope
+func (b *infraGenerator) resolveBicepReference(ref string) (string, error) {
+	// bicep uses ' instead of " for strings, so we need to replace all " with '
+	singleQuoted := strings.ReplaceAll(ref, "\"", "'")
+
+	var evaluationError error
+	evaluatedString := singleQuotedStringRegex.ReplaceAllStringFunc(singleQuoted, func(s string) string {
+		evaluatedString, err := EvalString(s, func(s string) (string, error) {
+			return b.evalBindingRef(s, inputEmitTypeBicep)
+		})
+		if err != nil {
+			evaluationError = err
+		}
+		return evaluatedString
+	})
+	if evaluationError != nil {
+		return "", evaluationError
+	}
+
+	// quick check to know if evaluatedString is only holding one only reference. If so, we don't need to use
+	// the form of '%{ref}' and we can directly use ref alone.
+	if isComplexExp, val := isComplexExpression(evaluatedString); !isComplexExp {
+		return val, nil
+	}
+
+	// Property names that are valid identifiers should be declared without quotation marks and accessed
+	// using dot notation.
+	evaluatedString = propertyNameRegex.ReplaceAllString(evaluatedString, "${1}:")
+
+	// restore double {{ }} to single { } for bicep output
+	// we used double only during the evaluation to scape single brackets
+	return strings.ReplaceAll(strings.ReplaceAll(evaluatedString, "'{{", "${"), "}}'", "}"), nil
+}
+
 // isComplexExpression checks if the evaluatedString is in the form of '{{ expr }}' or if it is a complex expression like
 // 'foo {{ expr }} bar {{ expr2 }}' and returns true if it is a complex expression.
 // When the expression is not complex, it returns false and the evaluatedString without the special characters.
@@ -1561,7 +1607,7 @@ func (b infraGenerator) evalBindingRef(v string, emitType inputEmitType) (string
 				fmt.Errorf("malformed binding expression, expected "+
 					"bindings.<binding-name>.[scheme|protocol|transport|external|host|targetPort|port|url] but was: %s", v)
 		}
-	case targetType == "azure.bicep.v0":
+	case targetType == "azure.bicep.v0" || targetType == "azure.bicep.v1":
 		if !strings.HasPrefix(prop, "outputs.") && !strings.HasPrefix(prop, "secretOutputs") {
 			return "", fmt.Errorf("unsupported property referenced in binding expression: %s for %s", prop, targetType)
 		}
diff --git a/cli/azd/pkg/apphost/generate_types.go b/cli/azd/pkg/apphost/generate_types.go
index 6f49f6a862c..d9d40718862 100644
--- a/cli/azd/pkg/apphost/generate_types.go
+++ b/cli/azd/pkg/apphost/generate_types.go
@@ -128,6 +128,7 @@ type genOutputParameter struct {
 type genBicepModules struct {
 	Path   string
 	Params map[string]string
+	Scope  string
 }
 
 type genBicepTemplateContext struct {
diff --git a/cli/azd/pkg/apphost/manifest.go b/cli/azd/pkg/apphost/manifest.go
index f7007e0f77b..b93ddb84ec9 100644
--- a/cli/azd/pkg/apphost/manifest.go
+++ b/cli/azd/pkg/apphost/manifest.go
@@ -100,6 +100,14 @@ type Resource struct {
 
 	// project.v1 and container.v1 uses deployment when the AppHost owns the ACA bicep definitions.
 	Deployment *DeploymentMetadata `json:"deployment,omitempty"`
+
+	// Present on bicep modules to control the scope of the module.
+	Scope *BicepModuleScope `json:"scope,omitempty"`
+}
+
+// BicepModuleScope is the scope of a bicep module.
+type BicepModuleScope struct {
+	ResourceGroup *string `json:"resourceGroup,omitempty"`
 }
 
 type DeploymentMetadata struct {
@@ -182,6 +190,9 @@ type Input struct {
 	Type    string        `json:"type"`
 	Secret  bool          `json:"secret"`
 	Default *InputDefault `json:"default,omitempty"`
+	// When the input is used to set a bicep module scope, the scope is set here.
+	// This allows generation to add azdMetadata to the bicep parameter.
+	scope *string
 }
 
 type InputDefaultGenerate struct {
@@ -242,7 +253,7 @@ func ManifestFromAppHost(
 
 	for resourceName, res := range manifest.Resources {
 		if res.Path != nil {
-			if res.Type == "azure.bicep.v0" {
+			if res.Type == "azure.bicep.v0" || res.Type == "azure.bicep.v1" {
 				e := manifest.BicepFiles.MkdirAll(resourceName, osutil.PermissionDirectory)
 				if e != nil {
 					return nil, e
@@ -271,9 +282,9 @@ func ManifestFromAppHost(
 		}
 
 		if res.Deployment != nil {
-			if res.Deployment.Type != "azure.bicep.v0" {
+			if res.Deployment.Type != "azure.bicep.v0" && res.Deployment.Type != "azure.bicep.v1" {
 				return nil, fmt.Errorf(
-					"unexpected deployment type %q. Supported types: [azure.bicep.v0]", res.Deployment.Type)
+					"unexpected deployment type %q. Supported types: [azure.bicep.v0, azure.bicep.v1]", res.Deployment.Type)
 			}
 			// use a folder with the name of the resource
 			e := manifest.BicepFiles.MkdirAll(resourceName, osutil.PermissionDirectory)
diff --git a/cli/azd/pkg/apphost/testdata/TestAspireBicepGeneration-main.bicep.snap b/cli/azd/pkg/apphost/testdata/TestAspireBicepGeneration-main.bicep.snap
index 75b66a11166..b4c15a95f0a 100644
--- a/cli/azd/pkg/apphost/testdata/TestAspireBicepGeneration-main.bicep.snap
+++ b/cli/azd/pkg/apphost/testdata/TestAspireBicepGeneration-main.bicep.snap
@@ -16,6 +16,12 @@ param administrator_login string
 @secure()
 param administratorLoginPassword string
 param parameter string
+@metadata({azd: {
+  type: 'resourceGroup'
+  config: {}
+  }
+})
+param rg_scope string
 
 var tags = {
   'azd-env-name': environmentName
@@ -85,7 +91,7 @@ module sql 'sql/aspire.hosting.azure.bicep.sql.bicep' = {
 }
 module test 'test/test.bicep' = {
   name: 'test'
-  scope: rg
+  scope: resourceGroup(rg_scope)
   params: {
     host: 'frontend.internal.${resources.outputs.AZURE_CONTAINER_APPS_ENVIRONMENT_DEFAULT_DOMAIN}'
     location: location
diff --git a/cli/azd/pkg/apphost/testdata/TestAspireBicepGeneration-main.parameters.json.snap b/cli/azd/pkg/apphost/testdata/TestAspireBicepGeneration-main.parameters.json.snap
index ac0fdf332ab..ead0ea0b8c7 100644
--- a/cli/azd/pkg/apphost/testdata/TestAspireBicepGeneration-main.parameters.json.snap
+++ b/cli/azd/pkg/apphost/testdata/TestAspireBicepGeneration-main.parameters.json.snap
@@ -14,6 +14,9 @@
       "parameter": {
         "value": "${AZURE_PARAMETER}"
       },
+      "rg_scope": {
+        "value": "${AZURE_RG_SCOPE}"
+      },
       "environmentName": {
         "value": "${AZURE_ENV_NAME}"
       },
diff --git a/cli/azd/pkg/apphost/testdata/aspire-bicep.json b/cli/azd/pkg/apphost/testdata/aspire-bicep.json
index 9096222670b..9d137090fc2 100644
--- a/cli/azd/pkg/apphost/testdata/aspire-bicep.json
+++ b/cli/azd/pkg/apphost/testdata/aspire-bicep.json
@@ -8,8 +8,16 @@
           }
         }
       },
+      "rg-scope": {
+        "type": "parameter.v0",
+        "value": "{rg-scope.inputs.value}",
+        "inputs": {
+          "value": {
+          }
+        }
+      },
       "test": {
-        "type": "azure.bicep.v0",
+        "type": "azure.bicep.v1",
         "path": "test.bicep",
         "params": {
           "test": "{parameter.value}",
@@ -19,6 +27,9 @@
             "one",
             "two"
           ]
+        },
+        "scope": {
+          "resourceGroup": "{rg-scope.value}"
         }
       },
       "administrator-login": {
diff --git a/cli/azd/pkg/azure/arm_template.go b/cli/azd/pkg/azure/arm_template.go
index ce97b814ebe..4a1bc7cf990 100644
--- a/cli/azd/pkg/azure/arm_template.go
+++ b/cli/azd/pkg/azure/arm_template.go
@@ -138,6 +138,7 @@ const AzdMetadataTypeLocation AzdMetadataType = "location"
 const AzdMetadataTypeGenerate AzdMetadataType = "generate"
 const AzdMetadataTypeGenerateOrManual AzdMetadataType = "generateOrManual"
 const AzdMetadataTypeNeedForDeploy AzdMetadataType = "needForDeploy"
+const AzdMetadataTypeResourceGroup AzdMetadataType = "resourceGroup"
 
 type AzdMetadata struct {
 	Type               *AzdMetadataType `json:"type,omitempty"`
diff --git a/cli/azd/pkg/infra/provisioning/bicep/bicep_provider.go b/cli/azd/pkg/infra/provisioning/bicep/bicep_provider.go
index 056960462b8..989c6f01f49 100644
--- a/cli/azd/pkg/infra/provisioning/bicep/bicep_provider.go
+++ b/cli/azd/pkg/infra/provisioning/bicep/bicep_provider.go
@@ -164,7 +164,7 @@ func (p *BicepProvider) EnsureEnv(ctx context.Context) error {
 
 	if scope == azure.DeploymentScopeResourceGroup {
 		if p.env.Getenv(environment.ResourceGroupEnvVarName) == "" {
-			rgName, err := p.prompters.PromptResourceGroup(ctx)
+			rgName, err := p.prompters.PromptResourceGroup(ctx, prompt.PromptResourceOptions{})
 			if err != nil {
 				return err
 			}
diff --git a/cli/azd/pkg/infra/provisioning/bicep/prompt.go b/cli/azd/pkg/infra/provisioning/bicep/prompt.go
index 2d067677b17..6799b24d5a0 100644
--- a/cli/azd/pkg/infra/provisioning/bicep/prompt.go
+++ b/cli/azd/pkg/infra/provisioning/bicep/prompt.go
@@ -15,6 +15,7 @@ import (
 	"github.com/azure/azure-dev/cli/azd/pkg/input"
 	"github.com/azure/azure-dev/cli/azd/pkg/output"
 	"github.com/azure/azure-dev/cli/azd/pkg/password"
+	"github.com/azure/azure-dev/cli/azd/pkg/prompt"
 
 	"github.com/azure/azure-dev/cli/azd/pkg/infra/provisioning"
 )
@@ -102,6 +103,19 @@ func (p *BicepProvider) promptForParameter(
 			return nil, err
 		}
 		value = location
+	} else if paramType == provisioning.ParameterTypeString &&
+		azdMetadata.Type != nil &&
+		*azdMetadata.Type == azure.AzdMetadataTypeResourceGroup {
+
+		p.console.Message(ctx, fmt.Sprintf(
+			"Parameter %s requires an %s resource group.", output.WithUnderline("%s", key), output.WithBold("existing")))
+		rgName, err := p.prompters.PromptResourceGroup(ctx, prompt.PromptResourceOptions{
+			DisableCreateNew: true,
+		})
+		if err != nil {
+			return nil, err
+		}
+		value = rgName
 	} else if paramType == provisioning.ParameterTypeString &&
 		azdMetadata.Type != nil &&
 		*azdMetadata.Type == azure.AzdMetadataTypeGenerateOrManual {
diff --git a/cli/azd/pkg/prompt/prompter.go b/cli/azd/pkg/prompt/prompter.go
index e6a80a5937b..e49fce5a027 100644
--- a/cli/azd/pkg/prompt/prompter.go
+++ b/cli/azd/pkg/prompt/prompter.go
@@ -34,7 +34,7 @@ type Prompter interface {
 		msg string,
 		filter LocationFilterPredicate,
 		defaultLocation *string) (string, error)
-	PromptResourceGroup(ctx context.Context) (string, error)
+	PromptResourceGroup(ctx context.Context, options PromptResourceOptions) (string, error)
 	PromptResourceGroupFrom(
 		ctx context.Context, subscriptionId string, location string, options PromptResourceGroupFromOptions) (string, error)
 }
@@ -122,7 +122,11 @@ func (p *DefaultPrompter) PromptLocation(
 	return loc, nil
 }
 
-func (p *DefaultPrompter) PromptResourceGroup(ctx context.Context) (string, error) {
+type PromptResourceOptions struct {
+	DisableCreateNew bool
+}
+
+func (p *DefaultPrompter) PromptResourceGroup(ctx context.Context, options PromptResourceOptions) (string, error) {
 	return p.PromptResourceGroupFrom(
 		ctx,
 		p.env.GetSubscriptionId(),
@@ -131,7 +135,8 @@ func (p *DefaultPrompter) PromptResourceGroup(ctx context.Context) (string, erro
 			Tags: map[string]string{
 				azure.TagKeyAzdEnvName: p.env.Name(),
 			},
-			DefaultName: fmt.Sprintf("rg-%s", p.env.Name()),
+			DefaultName:      fmt.Sprintf("rg-%s", p.env.Name()),
+			DisableCreateNew: options.DisableCreateNew,
 		})
 }
 
@@ -140,6 +145,7 @@ type PromptResourceGroupFromOptions struct {
 	DefaultName           string
 	NewResourceGroupHelp  string
 	PickResourceGroupHelp string
+	DisableCreateNew      bool
 }
 
 func (p *DefaultPrompter) PromptResourceGroupFrom(
@@ -154,10 +160,17 @@ func (p *DefaultPrompter) PromptResourceGroupFrom(
 		return strings.Compare(a.Name, b.Name)
 	})
 
-	choices := make([]string, len(groups)+1)
-	choices[0] = "Create a new resource group"
+	canCreateNeResourceGroup := !options.DisableCreateNew
+
+	choices := make([]string, len(groups))
+	canCreateOverride := 0
+	if canCreateNeResourceGroup {
+		choices = make([]string, len(groups)+1)
+		choices[0] = "Create a new resource group"
+		canCreateOverride = 1
+	}
 	for idx, group := range groups {
-		choices[idx+1] = fmt.Sprintf("%d. %s", idx+1, group.Name)
+		choices[idx+canCreateOverride] = fmt.Sprintf("%d. %s", idx+1, group.Name)
 	}
 
 	choice, err := p.console.Select(ctx, input.ConsoleOptions{
@@ -169,6 +182,10 @@ func (p *DefaultPrompter) PromptResourceGroupFrom(
 		return "", fmt.Errorf("selecting resource group: %w", err)
 	}
 
+	if !canCreateNeResourceGroup {
+		return groups[choice].Name, nil
+	}
+
 	if choice > 0 {
 		return groups[choice-1].Name, nil
 	}
diff --git a/cli/azd/resources/apphost/templates/main.bicept b/cli/azd/resources/apphost/templates/main.bicept
index a4c77e4ce77..5fce7d3f1c7 100644
--- a/cli/azd/resources/apphost/templates/main.bicept
+++ b/cli/azd/resources/apphost/templates/main.bicept
@@ -54,7 +54,7 @@ module resources 'resources.bicep' = {
 {{ range $name, $module := .BicepModules }}
 module {{bicepParameterName $name}} '{{ fixBackSlash $module.Path }}' = {
   name: '{{$name}}'
-  scope: rg
+  scope: {{$module.Scope}}
   params: {
 {{- range $param, $value := $module.Params}}
     {{$param}}: {{$value}}