diff --git a/modules/compute/container_group/managed_identities.tf b/modules/compute/container_group/managed_identities.tf
index f7be6f24d9..91db5fe397 100644
--- a/modules/compute/container_group/managed_identities.tf
+++ b/modules/compute/container_group/managed_identities.tf
@@ -3,19 +3,24 @@
 #
 
 locals {
+  // Adjusted to handle direct identity ID if provided 
+  managed_direct_identity = try(var.settings.identity.id != null ? [var.settings.identity.id] : [], [])
+
   managed_local_identities = flatten([
     for managed_identity_key in try(var.settings.identity.managed_identity_keys, []) : [
-      var.combined_resources.managed_identities[var.client_config.landingzone_key][managed_identity_key].id
+      try(var.combined_resources.managed_identities[var.client_config.landingzone_key][managed_identity_key].id, null)
     ]
   ])
 
   managed_remote_identities = flatten([
     for lz_key, value in try(var.settings.identity.remote, []) : [
-      for managed_identity_key in value.managed_identity_keys : [
-        var.combined_resources.managed_identities[lz_key][managed_identity_key].id
+      for managed_identity_key in try(value.managed_identity_keys, []) : [
+        try(var.combined_resources.managed_identities[lz_key][managed_identity_key].id, null)
       ]
     ]
   ])
 
-  managed_identities = concat(local.managed_local_identities, local.managed_remote_identities)
+  // Include the direct identity ID in the final list
+  managed_identities = concat(local.managed_direct_identity, local.managed_local_identities, local.managed_remote_identities)
 }
+