diff --git a/pkg/types/builder.go b/pkg/types/builder.go
index b6dcd9f9..e73c12ae 100644
--- a/pkg/types/builder.go
+++ b/pkg/types/builder.go
@@ -18,6 +18,7 @@ import (
 
 	"github.com/crossplane/upjet/pkg/config"
 	"github.com/crossplane/upjet/pkg/schema/traverser"
+	conversiontfjson "github.com/crossplane/upjet/pkg/types/conversion/tfjson"
 )
 
 const (
@@ -216,7 +217,7 @@ func (g *Builder) buildSchema(f *Field, cfg *config.Resource, names []string, cp
 		return types.NewPointer(types.Universe.Lookup("int64").Type()), nil, nil
 	case schema.TypeString:
 		return types.NewPointer(types.Universe.Lookup("string").Type()), nil, nil
-	case schema.TypeMap, schema.TypeList, schema.TypeSet:
+	case schema.TypeMap, schema.TypeList, schema.TypeSet, conversiontfjson.SchemaTypeObject:
 		names = append(names, f.Name.Camel)
 		if f.Schema.Type != schema.TypeMap {
 			// We don't want to have a many-to-many relationship in case of a Map, since we use SecretReference as
@@ -312,7 +313,7 @@ func (g *Builder) buildSchema(f *Field, cfg *config.Resource, names []string, cp
 		}
 
 		// if the singleton list is to be replaced by an embedded object
-		if cfg.SchemaElementOptions.EmbeddedObject(cpath) {
+		if cfg.SchemaElementOptions.EmbeddedObject(cpath) || f.Schema.Type == conversiontfjson.SchemaTypeObject {
 			return types.NewPointer(elemType), types.NewPointer(initElemType), nil
 		}
 		// NOTE(muvaf): Maps and slices are already pointers, so we don't need to
diff --git a/pkg/types/conversion/tfjson/tfjson.go b/pkg/types/conversion/tfjson/tfjson.go
index dac92bfb..3009ef2a 100644
--- a/pkg/types/conversion/tfjson/tfjson.go
+++ b/pkg/types/conversion/tfjson/tfjson.go
@@ -11,6 +11,11 @@ import (
 	"github.com/zclconf/go-cty/cty"
 )
 
+// SchemaTypeObject is the exported version of schema.typeObject to support
+// nested types.
+// TODO:remove once not dependent of terrafom sdkv2 schema
+const SchemaTypeObject = schemav2.ValueType(9)
+
 // GetV2ResourceMap converts input resource schemas with
 // "terraform-json" representation to terraform-plugin-sdk representation which
 // is what Upjet expects today.
@@ -93,7 +98,7 @@ func tfJSONNestedAttributeTypeToV2Schema(na *tfjson.SchemaNestedAttributeType) *
 	case tfjson.SchemaNestingModeMap:
 		v2sch.Type = schemav2.TypeMap
 	case tfjson.SchemaNestingModeSingle:
-		v2sch.Type = schemav2.TypeList
+		v2sch.Type = SchemaTypeObject
 		v2sch.MinItems = 0
 		v2sch.Required = hasNestedAttributeRequiredChild(na)
 		v2sch.Optional = !v2sch.Required