diff --git a/pkg/config/resource.go b/pkg/config/resource.go
index f45a2f96..12c6173a 100644
--- a/pkg/config/resource.go
+++ b/pkg/config/resource.go
@@ -532,10 +532,28 @@ func (m SchemaElementOptions) AddToObservation(el string) bool {
 	return m[el] != nil && m[el].AddToObservation
 }
 
+// SetEmbeddedObject sets the EmbeddedObject for the specified key.
+func (m SchemaElementOptions) SetEmbeddedObject(el string) {
+	if m[el] == nil {
+		m[el] = &SchemaElementOption{}
+	}
+	m[el].EmbeddedObject = true
+}
+
+// EmbeddedObject returns true if the schema element at the specified path
+// should be generated as an embedded object.
+func (m SchemaElementOptions) EmbeddedObject(el string) bool {
+	return m[el] != nil && m[el].EmbeddedObject
+}
+
 // SchemaElementOption represents configuration options on a schema element.
 type SchemaElementOption struct {
 	// AddToObservation is set to true if the field represented by
 	// a schema element is to be added to the generated CRD type's
 	// Observation type.
 	AddToObservation bool
+	// EmbeddedObject  is set to true if the field represented by
+	// a schema element is to be embedded into its parent instead of being
+	// generated as a single element list.
+	EmbeddedObject bool
 }
diff --git a/pkg/types/builder.go b/pkg/types/builder.go
index 9d11e1be..f61e79e3 100644
--- a/pkg/types/builder.go
+++ b/pkg/types/builder.go
@@ -206,7 +206,7 @@ func (g *Builder) AddToBuilder(typeNames *TypeNames, r *resource) (*types.Named,
 	return paramType, obsType, initType
 }
 
-func (g *Builder) buildSchema(f *Field, cfg *config.Resource, names []string, r *resource) (types.Type, types.Type, error) { //nolint:gocyclo
+func (g *Builder) buildSchema(f *Field, cfg *config.Resource, names []string, cpath string, r *resource) (types.Type, types.Type, error) { //nolint:gocyclo
 	switch f.Schema.Type {
 	case schema.TypeBool:
 		return types.NewPointer(types.Universe.Lookup("bool").Type()), nil, nil
@@ -272,9 +272,16 @@ func (g *Builder) buildSchema(f *Field, cfg *config.Resource, names []string, r
 				// that can go under spec. This check prevents the elimination of fields in parameter type, by checking
 				// whether the schema in observation type has nested parameter (spec) fields.
 				if paramType.Underlying().String() != emptyStruct {
-					field := types.NewField(token.NoPos, g.Package, f.Name.Camel, types.NewSlice(paramType), false)
-					r.addParameterField(f, field)
-					r.addInitField(f, field, g, nil)
+					var tParam, tInit types.Type
+					if cfg.SchemaElementOptions.EmbeddedObject(cpath) {
+						tParam = types.NewPointer(paramType)
+						tInit = types.NewPointer(initType)
+					} else {
+						tParam = types.NewSlice(paramType)
+						tInit = types.NewSlice(initType)
+					}
+					r.addParameterField(f, types.NewField(token.NoPos, g.Package, f.Name.Camel, tParam, false))
+					r.addInitField(f, types.NewField(token.NoPos, g.Package, f.Name.Camel, tInit, false), g, nil)
 				}
 			default:
 				if paramType == nil {
@@ -285,7 +292,13 @@ func (g *Builder) buildSchema(f *Field, cfg *config.Resource, names []string, r
 				// This check prevents the elimination of fields in observation type, by checking whether the schema in
 				// parameter type has nested observation (status) fields.
 				if obsType.Underlying().String() != emptyStruct {
-					field := types.NewField(token.NoPos, g.Package, f.Name.Camel, types.NewSlice(obsType), false)
+					var t types.Type
+					if cfg.SchemaElementOptions.EmbeddedObject(cpath) {
+						t = types.NewPointer(obsType)
+					} else {
+						t = types.NewSlice(obsType)
+					}
+					field := types.NewField(token.NoPos, g.Package, f.Name.Camel, t, false)
 					r.addObservationField(f, field)
 				}
 			}
@@ -298,6 +311,10 @@ func (g *Builder) buildSchema(f *Field, cfg *config.Resource, names []string, r
 			return nil, nil, errors.Errorf("element type of %s should be either schema.Resource or schema.Schema", fieldPath(names))
 		}
 
+		// if the singleton list is to be replaced by an embedded object
+		if cfg.SchemaElementOptions.EmbeddedObject(cpath) {
+			return types.NewPointer(elemType), types.NewPointer(initElemType), nil
+		}
 		// NOTE(muvaf): Maps and slices are already pointers, so we don't need to
 		// wrap them even if they are optional.
 		if f.Schema.Type == schema.TypeMap {
diff --git a/pkg/types/conversion/tfjson/tfjson.go b/pkg/types/conversion/tfjson/tfjson.go
index 2e6ef4e2..3fe37df6 100644
--- a/pkg/types/conversion/tfjson/tfjson.go
+++ b/pkg/types/conversion/tfjson/tfjson.go
@@ -94,7 +94,7 @@ func tfJSONBlockTypeToV2Schema(nb *tfjson.SchemaBlockType) *schemav2.Schema { //
 		v2sch.Computed = true
 	}
 
-	switch nb.NestingMode {
+	switch nb.NestingMode { //nolint:exhaustive
 	case tfjson.SchemaNestingModeSet:
 		v2sch.Type = schemav2.TypeSet
 	case tfjson.SchemaNestingModeList:
diff --git a/pkg/types/field.go b/pkg/types/field.go
index 2e6fc2dc..1200b90a 100644
--- a/pkg/types/field.go
+++ b/pkg/types/field.go
@@ -154,7 +154,7 @@ func NewField(g *Builder, cfg *config.Resource, r *resource, sch *schema.Schema,
 		}
 	}
 
-	fieldType, initType, err := g.buildSchema(f, cfg, names, r)
+	fieldType, initType, err := g.buildSchema(f, cfg, names, fieldPath(append(tfPath, snakeFieldName)), r)
 	if err != nil {
 		return nil, errors.Wrapf(err, "cannot infer type from schema of field %s", f.Name.Snake)
 	}