diff --git a/CHANGELOG.md b/CHANGELOG.md
index f0a698066b..ce7e9958d2 100644
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -97,7 +97,8 @@
   * Major changes to the export process where resource instances will now be assigned a meaningful nam
     that will follow the ResourceName-PrimaryKey convention.
   * Added a fix making sure that the progress bar "Scanning dependencies" is no longer displayed after the operation is completed.
-
+  * Changed configuration drift reporting to event log to include the instance name as the source.
+    FIXES [#2981](https://github.com/microsoft/Microsoft365DSC/issues/2981)
 
 # 1.23.322.1
 
diff --git a/Modules/Microsoft365DSC/Modules/M365DSCLogEngine.psm1 b/Modules/Microsoft365DSC/Modules/M365DSCLogEngine.psm1
index ca64bc02be..8a26608e57 100644
--- a/Modules/Microsoft365DSC/Modules/M365DSCLogEngine.psm1
+++ b/Modules/Microsoft365DSC/Modules/M365DSCLogEngine.psm1
@@ -691,14 +691,13 @@ function Get-M365DSCCurrentResourceInstanceNameFromLogs
         [System.String]
         $ResourceName
     )
-
     try
     {
-        $allEvents = Get-WinEvent -LogName "Microsoft-windows-dsc/operational" -MaxEvents 25
+        $allEvents = Get-WinEvent -LogName "Microsoft-windows-dsc/operational" -MaxEvents 10
         foreach ($event in $allEvents)
         {
             $message = $event.Message
-            $stringToFind = "Resource execution sequence :: [$ResourceName]"
+            $stringToFind = "Resource execution sequence :: [$($ResourceName.Split('_')[1])]"
             $start = $message.IndexOf($stringToFind)
             if ($start -ge 0)
             {
@@ -717,6 +716,7 @@ function Get-M365DSCCurrentResourceInstanceNameFromLogs
 Export-ModuleMember -Function @(
     'Add-M365DSCEvent',
     'Export-M365DSCDiagnosticData',
+    'Get-M365DSCCurrentResourceInstanceNameFromLogs',
     'New-M365DSCLogEntry',
     'Get-M365DSCNotificationEndPointRegistration',
     'New-M365DSCNotificationEndPointRegistration',
diff --git a/Modules/Microsoft365DSC/Modules/M365DSCUtil.psm1 b/Modules/Microsoft365DSC/Modules/M365DSCUtil.psm1
index 364c7e227b..525aa027d7 100644
--- a/Modules/Microsoft365DSC/Modules/M365DSCUtil.psm1
+++ b/Modules/Microsoft365DSC/Modules/M365DSCUtil.psm1
@@ -861,7 +861,7 @@ function Test-M365DSCParameterState
             $currentInstanceName = $Source
         }
         $EventMessage = "<M365DSCEvent>`r`n"
-        $EventMessage += "    <ConfigurationDrift Source=`"$Source`">`r`n"
+        $EventMessage += "    <ConfigurationDrift Source=`"$Source`" InstanceName=`"$currentInstanceName`">`r`n"
 
         $EventMessage += "        <ParametersNotInDesiredState>`r`n"
         foreach ($key in $DriftedParameters.Keys)