diff --git a/mmv1/products/tpuv2/Vm.yaml b/mmv1/products/tpuv2/Vm.yaml
index 11b88461a83e..ac58ca1a0cda 100644
--- a/mmv1/products/tpuv2/Vm.yaml
+++ b/mmv1/products/tpuv2/Vm.yaml
@@ -26,6 +26,9 @@ update_url: projects/{{project}}/locations/{{zone}}/nodes/{{name}}
 update_verb: :PATCH
 update_mask: true
 autogen_async: true
+custom_diff: [
+  'acceleratorTypeCustomizeDiff',
+]
 async: !ruby/object:Api::OpAsync
   operation: !ruby/object:Api::OpAsync::Operation
     path: 'name'
@@ -86,10 +89,13 @@ properties:
       Runtime version for the TPU.
   - !ruby/object:Api::Type::String
     name: 'acceleratorType'
+    default_from_api: true
     immutable: true
-    default_value: 'v2-8'
+    conflicts:
+      - accelerator_config
     description: |
-      TPU accelerator type for the TPU. If not specified, this defaults to 'v2-8'.
+      TPU accelerator type for the TPU. `accelerator_type` cannot be used at the same time as
+      `accelerator_config`. If neither is specified, `accelerator_type` defaults to 'v2-8'.
   - !ruby/object:Api::Type::String
     name: 'description'
     description: |
@@ -219,6 +225,32 @@ properties:
         required: true
         description: |
           Defines whether the instance has Secure Boot enabled.
+  - !ruby/object:Api::Type::NestedObject
+    name: 'acceleratorConfig'
+    default_from_api: true
+    immutable: true
+    conflicts:
+      - accelerator_type
+    description: |
+      The AccleratorConfig for the TPU Node. `accelerator_config` cannot be used at the same time
+      as `accelerator_type`. If neither is specified, `accelerator_type` defaults to 'v2-8'.
+    properties:
+      - !ruby/object:Api::Type::Enum
+        name: 'type'
+        immutable: true
+        required: true
+        description: |
+          Type of TPU.
+        values:
+          - 'V2'
+          - 'V3'
+          - 'V4'
+      - !ruby/object:Api::Type::String
+        name: 'topology'
+        immutable: true
+        required: true
+        description: |
+          Topology of TPU in chips.
   - !ruby/object:Api::Type::KeyValueLabels
     name: 'labels'
     description: Resource labels to represent user-provided metadata.
diff --git a/mmv1/templates/terraform/constants/tpu_vm.go.erb b/mmv1/templates/terraform/constants/tpu_vm.go.erb
index f88ad694f977..d985d189243a 100644
--- a/mmv1/templates/terraform/constants/tpu_vm.go.erb
+++ b/mmv1/templates/terraform/constants/tpu_vm.go.erb
@@ -29,3 +29,18 @@ func normalizeScopes(scopes []string) []string {
 	}
 	return result
 }
+
+// For backwards compatibility, we need to maintain original behavior where `accelerator_type`
+// defaults "v2-8" when nothing is set. However, if the newly introduced `accelerator_config` field
+// is set, then use that value instead of the `accelerator_type` default.
+func acceleratorTypeCustomizeDiff(_ context.Context, diff *schema.ResourceDiff, v interface{}) error {
+	_, isTypeSet := diff.GetOk("accelerator_type")
+	_, isConfigSet := diff.GetOk("accelerator_config")
+	if !isTypeSet && !isConfigSet {
+		if err := diff.SetNew("accelerator_type", "v2-8"); err != nil {
+			return err
+		}
+	}
+
+	return nil	
+}
diff --git a/mmv1/templates/terraform/examples/tpu_v2_vm_full.tf.erb b/mmv1/templates/terraform/examples/tpu_v2_vm_full.tf.erb
index 1aaf276c3ebb..38c2f5f288d5 100644
--- a/mmv1/templates/terraform/examples/tpu_v2_vm_full.tf.erb
+++ b/mmv1/templates/terraform/examples/tpu_v2_vm_full.tf.erb
@@ -14,7 +14,11 @@ resource "google_tpu_v2_vm" "<%= ctx[:primary_resource_id] %>" {
   description = "Text description of the TPU."
 
   runtime_version  = "tpu-vm-tf-2.13.0"
-  accelerator_type = "v2-8"
+
+  accelerator_config {
+    type     = "V2"
+    topology = "2x2"
+  }
 
   cidr_block = "10.0.0.0/29"