diff --git a/pipelines/resource_pipeline.go b/pipelines/resource_pipeline.go
index ac18eef8ff..dc25e6266c 100644
--- a/pipelines/resource_pipeline.go
+++ b/pipelines/resource_pipeline.go
@@ -230,6 +230,11 @@ func (Pipeline) CustomizeSchema(s *common.CustomizableSchema) *common.Customizab
 	s.SchemaPath("edition").SetCustomSuppressDiff(common.EqualFoldDiffSuppress)
 	s.SchemaPath("storage").SetCustomSuppressDiff(suppressStorageDiff)
 
+	// As of 6th Nov 2024, the DLT API only normalizes the catalog name when creating
+	// a pipeline. So we only ignore the equal fold diff for the catalog name and not other
+	// UC resources like target, schema or ingestion_definition.connection_name.
+	s.SchemaPath("catalog").SetCustomSuppressDiff(common.EqualFoldDiffSuppress)
+
 	// Deprecated fields
 	s.SchemaPath("cluster", "init_scripts", "dbfs").SetDeprecated(clusters.DbfsDeprecationWarning)
 	s.SchemaPath("library", "whl").SetDeprecated("The 'whl' field is deprecated")