diff --git a/nsxt/provider.go b/nsxt/provider.go
index 66e28d00d..89a2815fc 100644
--- a/nsxt/provider.go
+++ b/nsxt/provider.go
@@ -1231,9 +1231,35 @@ func getContextDataFromSchema(d *schema.ResourceData) (string, string) {
 	return "", ""
 }
 
+func getContextDataFromParentPath(parentPath string) (string, string) {
+	segments := strings.Split(parentPath, "/")
+	var projectID, vpcID string
+	if len(segments) > 4 && segments[1] == "orgs" && segments[3] == "projects" {
+		projectID = segments[4]
+
+		if len(segments) > 6 && segments[5] == "vpcs" {
+			vpcID = segments[6]
+		}
+	}
+	return projectID, vpcID
+}
+
 func getSessionContext(d *schema.ResourceData, m interface{}) tf_api.SessionContext {
+	return getSessionContextHelper(d, m, "")
+}
+
+func getParentContext(d *schema.ResourceData, m interface{}, parentPath string) tf_api.SessionContext {
+	return getSessionContextHelper(d, m, parentPath)
+}
+
+func getSessionContextHelper(d *schema.ResourceData, m interface{}, parentPath string) tf_api.SessionContext {
 	var clientType tf_api.ClientType
-	projectID, vpcID := getContextDataFromSchema(d)
+	var projectID, vpcID string
+	if parentPath == "" {
+		projectID, vpcID = getContextDataFromSchema(d)
+	} else {
+		projectID, vpcID = getContextDataFromParentPath(parentPath)
+	}
 	if projectID != "" {
 		clientType = tf_api.Multitenancy
 		if vpcID != "" {
diff --git a/nsxt/resource_nsxt_policy_security_policy_rule.go b/nsxt/resource_nsxt_policy_security_policy_rule.go
index 5fb03b322..083bf55b7 100644
--- a/nsxt/resource_nsxt_policy_security_policy_rule.go
+++ b/nsxt/resource_nsxt_policy_security_policy_rule.go
@@ -25,7 +25,7 @@ func resourceNsxtPolicySecurityPolicyRule() *schema.Resource {
 		Importer: &schema.ResourceImporter{
 			State: nsxtSecurityPolicyRuleImporter,
 		},
-		Schema: getSecurityPolicyAndGatewayRuleSchema(false, false, true, true),
+		Schema: getSecurityPolicyAndGatewayRuleSchema(false, false, false, true),
 	}
 }
 
@@ -38,7 +38,7 @@ func resourceNsxtPolicySecurityPolicyRuleCreate(d *schema.ResourceData, m interf
 	policyID := getPolicyIDFromPath(policyPath)
 
 	// Initialize resource Id and verify this ID is not yet used
-	id, err := getOrGenerateID2(d, m, resourceNsxtPolicySecurityPolicyRuleExistsPartial(policyPath))
+	id, err := getOrGenerateID2(d, m, resourceNsxtPolicySecurityPolicyRuleExistsPartial(d, m, policyPath))
 	if err != nil {
 		return err
 	}
@@ -124,9 +124,12 @@ func securityPolicyRuleSchemaToModel(d *schema.ResourceData, id string) model.Ru
 	}
 }
 
-func resourceNsxtPolicySecurityPolicyRuleExistsPartial(policyPath string) func(sessionContext utl.SessionContext, id string, connector client.Connector) (bool, error) {
+func resourceNsxtPolicySecurityPolicyRuleExistsPartial(d *schema.ResourceData, m interface{}, policyPath string) func(sessionContext utl.SessionContext, id string, connector client.Connector) (bool, error) {
+	// we need to take context from the parent rather than from resource context clause,
+	// which does not exist for policy rule resource
+	parentContext := getParentContext(d, m, policyPath)
 	return func(sessionContext utl.SessionContext, id string, connector client.Connector) (bool, error) {
-		return resourceNsxtPolicySecurityPolicyRuleExists(sessionContext, id, policyPath, connector)
+		return resourceNsxtPolicySecurityPolicyRuleExists(parentContext, id, policyPath, connector)
 	}
 }
 
diff --git a/nsxt/resource_nsxt_policy_security_policy_rule_test.go b/nsxt/resource_nsxt_policy_security_policy_rule_test.go
index 34bfb3ff1..77f4b5d4a 100644
--- a/nsxt/resource_nsxt_policy_security_policy_rule_test.go
+++ b/nsxt/resource_nsxt_policy_security_policy_rule_test.go
@@ -58,7 +58,7 @@ func testAccResourceNsxtPolicySecurityPolicyRuleBasic(t *testing.T, withContext
 		Steps: []resource.TestStep{
 			{
 				Config: testAccNsxtPolicySecurityPolicyRuleDeps(withContext, policyName, locked) +
-					testAccNsxtPolicySecurityPolicyRuleTemplate("test", name, action, direction, proto, seqNum),
+					testAccNsxtPolicySecurityPolicyRuleTemplate("test", name, action, direction, proto, seqNum, false),
 				Check: resource.ComposeTestCheckFunc(
 					testAccNsxtPolicySecurityPolicyExists(policyResourceName, defaultDomain),
 					resource.TestCheckResourceAttr(policyResourceName, "display_name", policyName),
@@ -75,7 +75,7 @@ func testAccResourceNsxtPolicySecurityPolicyRuleBasic(t *testing.T, withContext
 			{
 				// Update Policy and Rule at the same time
 				Config: testAccNsxtPolicySecurityPolicyRuleDeps(withContext, updatedPolicyName, updatedLocked) +
-					testAccNsxtPolicySecurityPolicyRuleTemplate("test", updatedName, updatedAction, updatedDirection, updatedProto, updatedSeqNum),
+					testAccNsxtPolicySecurityPolicyRuleTemplate("test", updatedName, updatedAction, updatedDirection, updatedProto, updatedSeqNum, false),
 				Check: resource.ComposeTestCheckFunc(
 					testAccNsxtPolicySecurityPolicyExists(policyResourceName, defaultDomain),
 					resource.TestCheckResourceAttr(policyResourceName, "display_name", updatedPolicyName),
@@ -92,8 +92,8 @@ func testAccResourceNsxtPolicySecurityPolicyRuleBasic(t *testing.T, withContext
 			{
 				// Update Policy and append another Rule at the same time
 				Config: testAccNsxtPolicySecurityPolicyRuleDeps(withContext, policyName, locked) +
-					testAccNsxtPolicySecurityPolicyRuleTemplate("test", updatedName, updatedAction, updatedDirection, updatedProto, updatedSeqNum) +
-					testAccNsxtPolicySecurityPolicyRuleTemplate("test2", appendRuleName, action, direction, proto, seqNum),
+					testAccNsxtPolicySecurityPolicyRuleTemplate("test", updatedName, updatedAction, updatedDirection, updatedProto, updatedSeqNum, false) +
+					testAccNsxtPolicySecurityPolicyRuleTemplate("test2", appendRuleName, action, direction, proto, seqNum, true),
 				Check: resource.ComposeTestCheckFunc(
 					testAccNsxtPolicySecurityPolicyExists(policyResourceName, defaultDomain),
 					resource.TestCheckResourceAttr(policyResourceName, "display_name", policyName),
@@ -117,7 +117,7 @@ func testAccResourceNsxtPolicySecurityPolicyRuleBasic(t *testing.T, withContext
 			{
 				// Update Policy and delete one of its Rule at the same time
 				Config: testAccNsxtPolicySecurityPolicyRuleDeps(withContext, updatedPolicyName, updatedLocked) +
-					testAccNsxtPolicySecurityPolicyRuleTemplate("test", updatedName, updatedAction, updatedDirection, updatedProto, updatedSeqNum),
+					testAccNsxtPolicySecurityPolicyRuleTemplate("test", updatedName, updatedAction, updatedDirection, updatedProto, updatedSeqNum, false),
 				Check: resource.ComposeTestCheckFunc(
 					testAccNsxtPolicySecurityPolicyExists(policyResourceName, defaultDomain),
 					resource.TestCheckResourceAttr(policyResourceName, "display_name", updatedPolicyName),
@@ -152,7 +152,7 @@ func TestAccResourceNsxtPolicySecurityPolicyRule_importBasic(t *testing.T) {
 		Steps: []resource.TestStep{
 			{
 				Config: testAccNsxtPolicySecurityPolicyRuleDeps(false, "policyName", "true") +
-					testAccNsxtPolicySecurityPolicyRuleTemplate("test", name, "ALLOW", "IN", "IPV4", "1"),
+					testAccNsxtPolicySecurityPolicyRuleTemplate("test", name, "ALLOW", "IN", "IPV4", "1", false),
 			},
 			{
 				ResourceName:      testResourceName,
@@ -180,7 +180,7 @@ func TestAccResourceNsxtPolicySecurityPolicyRule_importBasic_multitenancy(t *tes
 		Steps: []resource.TestStep{
 			{
 				Config: testAccNsxtPolicySecurityPolicyRuleDeps(true, "policyName", "true") +
-					testAccNsxtPolicySecurityPolicyRuleTemplate("test", name, "ALLOW", "IN", "IPV4", "1"),
+					testAccNsxtPolicySecurityPolicyRuleTemplate("test", name, "ALLOW", "IN", "IPV4", "1", false),
 			},
 			{
 				ResourceName:      testResourceName,
@@ -267,9 +267,14 @@ resource "nsxt_policy_parent_security_policy" "policy1" {
 }`, context, displayName, locked)
 }
 
-func testAccNsxtPolicySecurityPolicyRuleTemplate(resourceName, displayName, action, direction, ipVersion, seqNum string) string {
+func testAccNsxtPolicySecurityPolicyRuleTemplate(resourceName, displayName, action, direction, ipVersion, seqNum string, withID bool) string {
+	idString := ""
+	if withID {
+		idString = fmt.Sprintf(`nsx_id = "%s"`, displayName)
+	}
 	return fmt.Sprintf(`
 resource "nsxt_policy_security_policy_rule" "%s" {
+%s
   display_name    = "%s"
   policy_path     = nsxt_policy_parent_security_policy.policy1.path
   action          = "%s"
@@ -281,5 +286,5 @@ resource "nsxt_policy_security_policy_rule" "%s" {
     scope = "color"
     tag   = "orange"
   }
-}`, resourceName, displayName, action, direction, ipVersion, seqNum)
+}`, resourceName, idString, displayName, action, direction, ipVersion, seqNum)
 }