diff --git a/apis/rds/v1beta1/zz_clusterinstance_terraformed.go b/apis/rds/v1beta1/zz_clusterinstance_terraformed.go
index 9439a70fd0..ca6f546759 100755
--- a/apis/rds/v1beta1/zz_clusterinstance_terraformed.go
+++ b/apis/rds/v1beta1/zz_clusterinstance_terraformed.go
@@ -118,6 +118,9 @@ func (tr *ClusterInstance) LateInitialize(attrs []byte) (bool, error) {
 		return false, errors.Wrap(err, "failed to unmarshal Terraform state parameters for late-initialization")
 	}
 	opts := []resource.GenericLateInitializerOption{resource.WithZeroValueJSONOmitEmptyFilter(resource.CNameWildcard)}
+	opts = append(opts, resource.WithNameFilter("DBParameterGroupName"))
+	opts = append(opts, resource.WithNameFilter("EngineVersion"))
+	opts = append(opts, resource.WithNameFilter("PreferredBackupWindow"))
 
 	li := resource.NewGenericLateInitializer(opts...)
 	return li.LateInitialize(&tr.Spec.ForProvider, params)
diff --git a/config/rds/config.go b/config/rds/config.go
index 11d1751ebc..03927b2094 100644
--- a/config/rds/config.go
+++ b/config/rds/config.go
@@ -112,6 +112,9 @@ func Configure(p *config.Provider) {
 		delete(r.References, "engine")
 		delete(r.References, "engine_version")
 		r.UseAsync = true
+		r.LateInitializer = config.LateInitializer{
+			IgnoredFields: []string{"engine_version", "db_parameter_group_name", "preferred_backup_window"},
+		}
 	})
 	p.AddResourceConfigurator("aws_db_instance", func(r *config.Resource) {
 		r.References["db_subnet_group_name"] = config.Reference{
diff --git a/examples/rds/v1beta1/clusterinstance.yaml b/examples/rds/v1beta1/clusterinstance.yaml
index 9bd0629e80..937d6b5836 100644
--- a/examples/rds/v1beta1/clusterinstance.yaml
+++ b/examples/rds/v1beta1/clusterinstance.yaml
@@ -18,9 +18,6 @@ spec:
         testing.upbound.io/example-name: example-ci
     engine: aurora-postgresql
     instanceClass: db.r5.large
-    dbParameterGroupNameSelector:
-      matchLabels:
-        testing.upbound.io/example-name: example-ci
 
 ---
 
@@ -36,6 +33,11 @@ spec:
   forProvider:
     region: us-west-1
     engine: aurora-postgresql
+    engineVersion: "15.6"
+    dbClusterParameterGroupNameSelector:
+      matchLabels:
+        testing.upbound.io/example-name: example-ci
+    preferredBackupWindow: "04:00-05:00"
     masterUsername: cpadmin
     masterPasswordSecretRef:
       name: sample-cluster-password
@@ -60,19 +62,18 @@ stringData:
 ---
 
 apiVersion: rds.aws.upbound.io/v1beta1
-kind: ParameterGroup
+kind: ClusterParameterGroup
 metadata:
   annotations:
     meta.upbound.io/example-id: rds/v1beta1/clusterinstance
   labels:
     testing.upbound.io/example-name: example-ci
-  name: example-parametergroup-ci
+  name: example-clusterparametergroup-ci
 spec:
   forProvider:
     region: us-west-1
+    description: RDS default cluster parameter group
     family: aurora-postgresql15
-    description: example
     parameter:
-      - name: application_name
-        value: "example"
-        applyMethod: immediate
+      - name: apg_plan_mgmt.capture_plan_baselines
+        value: "manual"