diff --git a/docs/resources/connection.md b/docs/resources/connection.md
index 176e3e17..4175c754 100644
--- a/docs/resources/connection.md
+++ b/docs/resources/connection.md
@@ -77,6 +77,15 @@ resource "auth0_connection" "my_connection" {
         max = 40
       }
     }
+    
+    authentication_methods {
+      passkey {
+        enabled = true
+      }
+      password {
+        enabled = true
+      }
+    }
 
     mfa {
       active                 = true
@@ -635,15 +644,6 @@ resource "auth0_connection" "okta" {
         "family_name" : "$${context.tokenset.family_name}"
       })
     }
-    
-    authentication_methods {
-      passkey {
-        enabled = true
-      }
-      password {
-        enabled = true
-      }
-    }
   }
 }
 ```
@@ -781,6 +781,7 @@ Optional:
 - `userinfo_scope` (String) This property defines the scopes that Auth0 sends to the IdP’s UserInfo endpoint when requested.
 
 <a id="nestedblock--authentication-methods"></a>
+### Nested Schema for `options.authentication_methods`
 Required:
 
 - `password` (Map) Enables or disables password authentication (see [below for nested schema](#nestedblock--authentication-method))
@@ -788,6 +789,7 @@ Required:
 
 
 <a id="nestedblock--authentication-method"></a>
+### Nested Schema for `options.authentication_methods.*`
 Required:
 
 - `enabled` (Boolean) Enables the authentication method
diff --git a/internal/auth0/connection/resource_test.go b/internal/auth0/connection/resource_test.go
index b5135581..1acd7f7c 100644
--- a/internal/auth0/connection/resource_test.go
+++ b/internal/auth0/connection/resource_test.go
@@ -2611,3 +2611,103 @@ EOF
 	}
 }
 `
+
+const testConnectionAuthenticationMethods = `
+resource "auth0_connection" "my_connection" {
+  name                 = "Example-Connection"
+  is_domain_connection = true
+  strategy             = "auth0"
+  metadata = {
+    key1 = "foo"
+    key2 = "bar"
+  }
+
+  options {
+    password_policy                = "excellent"
+    brute_force_protection         = true
+    strategy_version               = 2
+    enabled_database_customization = true
+    import_mode                    = false
+    requires_username              = true
+    disable_signup                 = false
+    custom_scripts = {
+      get_user = <<EOF
+        function getByEmail(email, callback) {
+          return callback(new Error("Whoops!"));
+        }
+      EOF
+    }
+    configuration = {
+      foo = "bar"
+      bar = "baz"
+    }
+    upstream_params = jsonencode({
+      "screen_name" : {
+        "alias" : "login_hint"
+      }
+    })
+
+    password_history {
+      enable = true
+      size   = 3
+    }
+
+    password_no_personal_info {
+      enable = true
+    }
+
+    password_dictionary {
+      enable     = true
+      dictionary = ["password", "admin", "1234"]
+    }
+
+    password_complexity_options {
+      min_length = 12
+    }
+
+    validation {
+      username {
+        min = 10
+        max = 40
+      }
+    }
+
+	authentication_methods {
+      passkey {
+        enabled = true
+      }
+      password {
+        enabled = true
+      }
+    }
+
+    mfa {
+      active                 = true
+      return_enroll_settings = true
+    }
+  }
+}
+`
+
+func TestAuthenticationMethods(t *testing.T) {
+	acctest.Test(t, resource.TestCase{
+		Steps: []resource.TestStep{
+			{
+				Config: acctest.ParseTestName(testConnectionPingFederateConfigCreate, t.Name()),
+				Check: resource.ComposeTestCheckFunc(
+					resource.TestCheckResourceAttr("auth0_connection.my_connection", "options.#", "1"),
+					resource.TestCheckResourceAttr("auth0_connection.my_connection", "options.0.authentication_methods.passkey.enabled", true),
+					resource.TestCheckResourceAttr("auth0_connection.my_connection", "options.0.authentication_methods.password.enabled", true),
+				),
+			},
+			{
+				Config: acctest.ParseTestName(testConnectionPingFederateConfigUpdate, t.Name()),
+				Check: resource.ComposeTestCheckFunc(
+					resource.TestCheckResourceAttr("auth0_connection.my_connection", "options.#", "1"),
+					resource.TestCheckResourceAttr("auth0_connection.my_connection", "options.0.authentication_methods.passkey.enabled", true),
+					resource.TestCheckResourceAttr("auth0_connection.my_connection", "options.0.authentication_methods.password.enabled", true),
+				),
+			},
+		},
+	})
+}