diff --git a/docs/resources/cluster_aks.md b/docs/resources/cluster_aks.md
index 6c281a41..d56c46cc 100644
--- a/docs/resources/cluster_aks.md
+++ b/docs/resources/cluster_aks.md
@@ -228,7 +228,8 @@ Optional:
 
 - `cluster_uids` (Set of String) The list of cluster UIDs to include in the backup. If `include_all_clusters` is set to `true`, then all clusters will be included.
 - `include_all_clusters` (Boolean) Whether to include all clusters in the backup. If set to false, only the clusters specified in `cluster_uids` will be included.
-- `include_cluster_resources` (Boolean) Whether to include the cluster resources in the backup. If set to false, only the cluster configuration and disks will be backed up. (Note: Starting with Palette version 4.6, the `include_cluster_resources` attribute will be changed to a string type, supporting the values `always`, `never`, and `auto`.)
+- `include_cluster_resources` (Boolean) Indicates whether to include cluster resources in the backup. If set to false, only the cluster configuration and disks will be backed up. (Note: Starting with Palette version 4.6, the include_cluster_resources attribute will be deprecated, and a new attribute, include_cluster_resources_mode, will be introduced.)
+- `include_cluster_resources_mode` (String) Specifies whether to include the cluster resources in the backup. Supported values are `always`, `never`, and `auto`.
 - `include_disks` (Boolean) Whether to include the disks in the backup. If set to false, only the cluster configuration will be backed up.
 - `namespaces` (Set of String) The list of Kubernetes namespaces to include in the backup. If not specified, all namespaces will be included.
 
diff --git a/docs/resources/cluster_aws.md b/docs/resources/cluster_aws.md
index 3c022ea9..9707e999 100644
--- a/docs/resources/cluster_aws.md
+++ b/docs/resources/cluster_aws.md
@@ -255,7 +255,8 @@ Optional:
 
 - `cluster_uids` (Set of String) The list of cluster UIDs to include in the backup. If `include_all_clusters` is set to `true`, then all clusters will be included.
 - `include_all_clusters` (Boolean) Whether to include all clusters in the backup. If set to false, only the clusters specified in `cluster_uids` will be included.
-- `include_cluster_resources` (Boolean) Whether to include the cluster resources in the backup. If set to false, only the cluster configuration and disks will be backed up. (Note: Starting with Palette version 4.6, the `include_cluster_resources` attribute will be changed to a string type, supporting the values `always`, `never`, and `auto`.)
+- `include_cluster_resources` (Boolean) Indicates whether to include cluster resources in the backup. If set to false, only the cluster configuration and disks will be backed up. (Note: Starting with Palette version 4.6, the include_cluster_resources attribute will be deprecated, and a new attribute, include_cluster_resources_mode, will be introduced.)
+- `include_cluster_resources_mode` (String) Specifies whether to include the cluster resources in the backup. Supported values are `always`, `never`, and `auto`.
 - `include_disks` (Boolean) Whether to include the disks in the backup. If set to false, only the cluster configuration will be backed up.
 - `namespaces` (Set of String) The list of Kubernetes namespaces to include in the backup. If not specified, all namespaces will be included.
 
diff --git a/docs/resources/cluster_azure.md b/docs/resources/cluster_azure.md
index d2f5c97e..74ea77f4 100644
--- a/docs/resources/cluster_azure.md
+++ b/docs/resources/cluster_azure.md
@@ -237,7 +237,8 @@ Optional:
 
 - `cluster_uids` (Set of String) The list of cluster UIDs to include in the backup. If `include_all_clusters` is set to `true`, then all clusters will be included.
 - `include_all_clusters` (Boolean) Whether to include all clusters in the backup. If set to false, only the clusters specified in `cluster_uids` will be included.
-- `include_cluster_resources` (Boolean) Whether to include the cluster resources in the backup. If set to false, only the cluster configuration and disks will be backed up. (Note: Starting with Palette version 4.6, the `include_cluster_resources` attribute will be changed to a string type, supporting the values `always`, `never`, and `auto`.)
+- `include_cluster_resources` (Boolean) Indicates whether to include cluster resources in the backup. If set to false, only the cluster configuration and disks will be backed up. (Note: Starting with Palette version 4.6, the include_cluster_resources attribute will be deprecated, and a new attribute, include_cluster_resources_mode, will be introduced.)
+- `include_cluster_resources_mode` (String) Specifies whether to include the cluster resources in the backup. Supported values are `always`, `never`, and `auto`.
 - `include_disks` (Boolean) Whether to include the disks in the backup. If set to false, only the cluster configuration will be backed up.
 - `namespaces` (Set of String) The list of Kubernetes namespaces to include in the backup. If not specified, all namespaces will be included.
 
diff --git a/docs/resources/cluster_custom_cloud.md b/docs/resources/cluster_custom_cloud.md
index 88d9732c..af88c0bc 100644
--- a/docs/resources/cluster_custom_cloud.md
+++ b/docs/resources/cluster_custom_cloud.md
@@ -220,7 +220,8 @@ Optional:
 
 - `cluster_uids` (Set of String) The list of cluster UIDs to include in the backup. If `include_all_clusters` is set to `true`, then all clusters will be included.
 - `include_all_clusters` (Boolean) Whether to include all clusters in the backup. If set to false, only the clusters specified in `cluster_uids` will be included.
-- `include_cluster_resources` (Boolean) Whether to include the cluster resources in the backup. If set to false, only the cluster configuration and disks will be backed up. (Note: Starting with Palette version 4.6, the `include_cluster_resources` attribute will be changed to a string type, supporting the values `always`, `never`, and `auto`.)
+- `include_cluster_resources` (Boolean) Indicates whether to include cluster resources in the backup. If set to false, only the cluster configuration and disks will be backed up. (Note: Starting with Palette version 4.6, the include_cluster_resources attribute will be deprecated, and a new attribute, include_cluster_resources_mode, will be introduced.)
+- `include_cluster_resources_mode` (String) Specifies whether to include the cluster resources in the backup. Supported values are `always`, `never`, and `auto`.
 - `include_disks` (Boolean) Whether to include the disks in the backup. If set to false, only the cluster configuration will be backed up.
 - `namespaces` (Set of String) The list of Kubernetes namespaces to include in the backup. If not specified, all namespaces will be included.
 
diff --git a/docs/resources/cluster_edge_native.md b/docs/resources/cluster_edge_native.md
index f287fd28..9f5633fd 100644
--- a/docs/resources/cluster_edge_native.md
+++ b/docs/resources/cluster_edge_native.md
@@ -200,7 +200,8 @@ Optional:
 
 - `cluster_uids` (Set of String) The list of cluster UIDs to include in the backup. If `include_all_clusters` is set to `true`, then all clusters will be included.
 - `include_all_clusters` (Boolean) Whether to include all clusters in the backup. If set to false, only the clusters specified in `cluster_uids` will be included.
-- `include_cluster_resources` (Boolean) Whether to include the cluster resources in the backup. If set to false, only the cluster configuration and disks will be backed up. (Note: Starting with Palette version 4.6, the `include_cluster_resources` attribute will be changed to a string type, supporting the values `always`, `never`, and `auto`.)
+- `include_cluster_resources` (Boolean) Indicates whether to include cluster resources in the backup. If set to false, only the cluster configuration and disks will be backed up. (Note: Starting with Palette version 4.6, the include_cluster_resources attribute will be deprecated, and a new attribute, include_cluster_resources_mode, will be introduced.)
+- `include_cluster_resources_mode` (String) Specifies whether to include the cluster resources in the backup. Supported values are `always`, `never`, and `auto`.
 - `include_disks` (Boolean) Whether to include the disks in the backup. If set to false, only the cluster configuration will be backed up.
 - `namespaces` (Set of String) The list of Kubernetes namespaces to include in the backup. If not specified, all namespaces will be included.
 
diff --git a/docs/resources/cluster_edge_vsphere.md b/docs/resources/cluster_edge_vsphere.md
index 8508a137..65ea25af 100644
--- a/docs/resources/cluster_edge_vsphere.md
+++ b/docs/resources/cluster_edge_vsphere.md
@@ -156,7 +156,8 @@ Optional:
 
 - `cluster_uids` (Set of String) The list of cluster UIDs to include in the backup. If `include_all_clusters` is set to `true`, then all clusters will be included.
 - `include_all_clusters` (Boolean) Whether to include all clusters in the backup. If set to false, only the clusters specified in `cluster_uids` will be included.
-- `include_cluster_resources` (Boolean) Whether to include the cluster resources in the backup. If set to false, only the cluster configuration and disks will be backed up. (Note: Starting with Palette version 4.6, the `include_cluster_resources` attribute will be changed to a string type, supporting the values `always`, `never`, and `auto`.)
+- `include_cluster_resources` (Boolean) Indicates whether to include cluster resources in the backup. If set to false, only the cluster configuration and disks will be backed up. (Note: Starting with Palette version 4.6, the include_cluster_resources attribute will be deprecated, and a new attribute, include_cluster_resources_mode, will be introduced.)
+- `include_cluster_resources_mode` (String) Specifies whether to include the cluster resources in the backup. Supported values are `always`, `never`, and `auto`.
 - `include_disks` (Boolean) Whether to include the disks in the backup. If set to false, only the cluster configuration will be backed up.
 - `namespaces` (Set of String) The list of Kubernetes namespaces to include in the backup. If not specified, all namespaces will be included.
 
diff --git a/docs/resources/cluster_eks.md b/docs/resources/cluster_eks.md
index 565b0d5f..634f32c7 100644
--- a/docs/resources/cluster_eks.md
+++ b/docs/resources/cluster_eks.md
@@ -219,7 +219,8 @@ Optional:
 
 - `cluster_uids` (Set of String) The list of cluster UIDs to include in the backup. If `include_all_clusters` is set to `true`, then all clusters will be included.
 - `include_all_clusters` (Boolean) Whether to include all clusters in the backup. If set to false, only the clusters specified in `cluster_uids` will be included.
-- `include_cluster_resources` (Boolean) Whether to include the cluster resources in the backup. If set to false, only the cluster configuration and disks will be backed up. (Note: Starting with Palette version 4.6, the `include_cluster_resources` attribute will be changed to a string type, supporting the values `always`, `never`, and `auto`.)
+- `include_cluster_resources` (Boolean) Indicates whether to include cluster resources in the backup. If set to false, only the cluster configuration and disks will be backed up. (Note: Starting with Palette version 4.6, the include_cluster_resources attribute will be deprecated, and a new attribute, include_cluster_resources_mode, will be introduced.)
+- `include_cluster_resources_mode` (String) Specifies whether to include the cluster resources in the backup. Supported values are `always`, `never`, and `auto`.
 - `include_disks` (Boolean) Whether to include the disks in the backup. If set to false, only the cluster configuration will be backed up.
 - `namespaces` (Set of String) The list of Kubernetes namespaces to include in the backup. If not specified, all namespaces will be included.
 
diff --git a/docs/resources/cluster_gcp.md b/docs/resources/cluster_gcp.md
index 1bc5d4da..65331782 100644
--- a/docs/resources/cluster_gcp.md
+++ b/docs/resources/cluster_gcp.md
@@ -189,7 +189,8 @@ Optional:
 
 - `cluster_uids` (Set of String) The list of cluster UIDs to include in the backup. If `include_all_clusters` is set to `true`, then all clusters will be included.
 - `include_all_clusters` (Boolean) Whether to include all clusters in the backup. If set to false, only the clusters specified in `cluster_uids` will be included.
-- `include_cluster_resources` (Boolean) Whether to include the cluster resources in the backup. If set to false, only the cluster configuration and disks will be backed up. (Note: Starting with Palette version 4.6, the `include_cluster_resources` attribute will be changed to a string type, supporting the values `always`, `never`, and `auto`.)
+- `include_cluster_resources` (Boolean) Indicates whether to include cluster resources in the backup. If set to false, only the cluster configuration and disks will be backed up. (Note: Starting with Palette version 4.6, the include_cluster_resources attribute will be deprecated, and a new attribute, include_cluster_resources_mode, will be introduced.)
+- `include_cluster_resources_mode` (String) Specifies whether to include the cluster resources in the backup. Supported values are `always`, `never`, and `auto`.
 - `include_disks` (Boolean) Whether to include the disks in the backup. If set to false, only the cluster configuration will be backed up.
 - `namespaces` (Set of String) The list of Kubernetes namespaces to include in the backup. If not specified, all namespaces will be included.
 
diff --git a/docs/resources/cluster_gke.md b/docs/resources/cluster_gke.md
index e8caa13a..c28a89da 100644
--- a/docs/resources/cluster_gke.md
+++ b/docs/resources/cluster_gke.md
@@ -170,7 +170,8 @@ Optional:
 
 - `cluster_uids` (Set of String) The list of cluster UIDs to include in the backup. If `include_all_clusters` is set to `true`, then all clusters will be included.
 - `include_all_clusters` (Boolean) Whether to include all clusters in the backup. If set to false, only the clusters specified in `cluster_uids` will be included.
-- `include_cluster_resources` (Boolean) Whether to include the cluster resources in the backup. If set to false, only the cluster configuration and disks will be backed up. (Note: Starting with Palette version 4.6, the `include_cluster_resources` attribute will be changed to a string type, supporting the values `always`, `never`, and `auto`.)
+- `include_cluster_resources` (Boolean) Indicates whether to include cluster resources in the backup. If set to false, only the cluster configuration and disks will be backed up. (Note: Starting with Palette version 4.6, the include_cluster_resources attribute will be deprecated, and a new attribute, include_cluster_resources_mode, will be introduced.)
+- `include_cluster_resources_mode` (String) Specifies whether to include the cluster resources in the backup. Supported values are `always`, `never`, and `auto`.
 - `include_disks` (Boolean) Whether to include the disks in the backup. If set to false, only the cluster configuration will be backed up.
 - `namespaces` (Set of String) The list of Kubernetes namespaces to include in the backup. If not specified, all namespaces will be included.
 
diff --git a/docs/resources/cluster_maas.md b/docs/resources/cluster_maas.md
index 7350d112..4a75bbde 100644
--- a/docs/resources/cluster_maas.md
+++ b/docs/resources/cluster_maas.md
@@ -236,7 +236,8 @@ Optional:
 
 - `cluster_uids` (Set of String) The list of cluster UIDs to include in the backup. If `include_all_clusters` is set to `true`, then all clusters will be included.
 - `include_all_clusters` (Boolean) Whether to include all clusters in the backup. If set to false, only the clusters specified in `cluster_uids` will be included.
-- `include_cluster_resources` (Boolean) Whether to include the cluster resources in the backup. If set to false, only the cluster configuration and disks will be backed up. (Note: Starting with Palette version 4.6, the `include_cluster_resources` attribute will be changed to a string type, supporting the values `always`, `never`, and `auto`.)
+- `include_cluster_resources` (Boolean) Indicates whether to include cluster resources in the backup. If set to false, only the cluster configuration and disks will be backed up. (Note: Starting with Palette version 4.6, the include_cluster_resources attribute will be deprecated, and a new attribute, include_cluster_resources_mode, will be introduced.)
+- `include_cluster_resources_mode` (String) Specifies whether to include the cluster resources in the backup. Supported values are `always`, `never`, and `auto`.
 - `include_disks` (Boolean) Whether to include the disks in the backup. If set to false, only the cluster configuration will be backed up.
 - `namespaces` (Set of String) The list of Kubernetes namespaces to include in the backup. If not specified, all namespaces will be included.
 
diff --git a/docs/resources/cluster_openstack.md b/docs/resources/cluster_openstack.md
index c62cd4bd..2ceb6a6f 100644
--- a/docs/resources/cluster_openstack.md
+++ b/docs/resources/cluster_openstack.md
@@ -194,7 +194,8 @@ Optional:
 
 - `cluster_uids` (Set of String) The list of cluster UIDs to include in the backup. If `include_all_clusters` is set to `true`, then all clusters will be included.
 - `include_all_clusters` (Boolean) Whether to include all clusters in the backup. If set to false, only the clusters specified in `cluster_uids` will be included.
-- `include_cluster_resources` (Boolean) Whether to include the cluster resources in the backup. If set to false, only the cluster configuration and disks will be backed up. (Note: Starting with Palette version 4.6, the `include_cluster_resources` attribute will be changed to a string type, supporting the values `always`, `never`, and `auto`.)
+- `include_cluster_resources` (Boolean) Indicates whether to include cluster resources in the backup. If set to false, only the cluster configuration and disks will be backed up. (Note: Starting with Palette version 4.6, the include_cluster_resources attribute will be deprecated, and a new attribute, include_cluster_resources_mode, will be introduced.)
+- `include_cluster_resources_mode` (String) Specifies whether to include the cluster resources in the backup. Supported values are `always`, `never`, and `auto`.
 - `include_disks` (Boolean) Whether to include the disks in the backup. If set to false, only the cluster configuration will be backed up.
 - `namespaces` (Set of String) The list of Kubernetes namespaces to include in the backup. If not specified, all namespaces will be included.
 
diff --git a/docs/resources/cluster_tke.md b/docs/resources/cluster_tke.md
index 609abce1..c98d3a65 100644
--- a/docs/resources/cluster_tke.md
+++ b/docs/resources/cluster_tke.md
@@ -126,7 +126,8 @@ Optional:
 
 - `cluster_uids` (Set of String) The list of cluster UIDs to include in the backup. If `include_all_clusters` is set to `true`, then all clusters will be included.
 - `include_all_clusters` (Boolean) Whether to include all clusters in the backup. If set to false, only the clusters specified in `cluster_uids` will be included.
-- `include_cluster_resources` (Boolean) Whether to include the cluster resources in the backup. If set to false, only the cluster configuration and disks will be backed up. (Note: Starting with Palette version 4.6, the `include_cluster_resources` attribute will be changed to a string type, supporting the values `always`, `never`, and `auto`.)
+- `include_cluster_resources` (Boolean) Indicates whether to include cluster resources in the backup. If set to false, only the cluster configuration and disks will be backed up. (Note: Starting with Palette version 4.6, the include_cluster_resources attribute will be deprecated, and a new attribute, include_cluster_resources_mode, will be introduced.)
+- `include_cluster_resources_mode` (String) Specifies whether to include the cluster resources in the backup. Supported values are `always`, `never`, and `auto`.
 - `include_disks` (Boolean) Whether to include the disks in the backup. If set to false, only the cluster configuration will be backed up.
 - `namespaces` (Set of String) The list of Kubernetes namespaces to include in the backup. If not specified, all namespaces will be included.
 
diff --git a/docs/resources/cluster_vsphere.md b/docs/resources/cluster_vsphere.md
index 5b194726..de286868 100644
--- a/docs/resources/cluster_vsphere.md
+++ b/docs/resources/cluster_vsphere.md
@@ -160,7 +160,8 @@ Optional:
 
 - `cluster_uids` (Set of String) The list of cluster UIDs to include in the backup. If `include_all_clusters` is set to `true`, then all clusters will be included.
 - `include_all_clusters` (Boolean) Whether to include all clusters in the backup. If set to false, only the clusters specified in `cluster_uids` will be included.
-- `include_cluster_resources` (Boolean) Whether to include the cluster resources in the backup. If set to false, only the cluster configuration and disks will be backed up. (Note: Starting with Palette version 4.6, the `include_cluster_resources` attribute will be changed to a string type, supporting the values `always`, `never`, and `auto`.)
+- `include_cluster_resources` (Boolean) Indicates whether to include cluster resources in the backup. If set to false, only the cluster configuration and disks will be backed up. (Note: Starting with Palette version 4.6, the include_cluster_resources attribute will be deprecated, and a new attribute, include_cluster_resources_mode, will be introduced.)
+- `include_cluster_resources_mode` (String) Specifies whether to include the cluster resources in the backup. Supported values are `always`, `never`, and `auto`.
 - `include_disks` (Boolean) Whether to include the disks in the backup. If set to false, only the cluster configuration will be backed up.
 - `namespaces` (Set of String) The list of Kubernetes namespaces to include in the backup. If not specified, all namespaces will be included.
 
diff --git a/docs/resources/virtual_cluster.md b/docs/resources/virtual_cluster.md
index f8ee1870..2037f2ff 100644
--- a/docs/resources/virtual_cluster.md
+++ b/docs/resources/virtual_cluster.md
@@ -100,7 +100,8 @@ Optional:
 
 - `cluster_uids` (Set of String) The list of cluster UIDs to include in the backup. If `include_all_clusters` is set to `true`, then all clusters will be included.
 - `include_all_clusters` (Boolean) Whether to include all clusters in the backup. If set to false, only the clusters specified in `cluster_uids` will be included.
-- `include_cluster_resources` (Boolean) Whether to include the cluster resources in the backup. If set to false, only the cluster configuration and disks will be backed up. (Note: Starting with Palette version 4.6, the `include_cluster_resources` attribute will be changed to a string type, supporting the values `always`, `never`, and `auto`.)
+- `include_cluster_resources` (Boolean) Indicates whether to include cluster resources in the backup. If set to false, only the cluster configuration and disks will be backed up. (Note: Starting with Palette version 4.6, the include_cluster_resources attribute will be deprecated, and a new attribute, include_cluster_resources_mode, will be introduced.)
+- `include_cluster_resources_mode` (String) Specifies whether to include the cluster resources in the backup. Supported values are `always`, `never`, and `auto`.
 - `include_disks` (Boolean) Whether to include the disks in the backup. If set to false, only the cluster configuration will be backed up.
 - `namespaces` (Set of String) The list of Kubernetes namespaces to include in the backup. If not specified, all namespaces will be included.
 
diff --git a/docs/resources/workspace.md b/docs/resources/workspace.md
index 6da5e9fb..bcdfccd0 100644
--- a/docs/resources/workspace.md
+++ b/docs/resources/workspace.md
@@ -140,7 +140,8 @@ Optional:
 
 - `cluster_uids` (Set of String) The list of cluster UIDs to include in the backup. If `include_all_clusters` is set to `true`, then all clusters will be included.
 - `include_all_clusters` (Boolean) Whether to include all clusters in the backup. If set to false, only the clusters specified in `cluster_uids` will be included.
-- `include_cluster_resources` (Boolean) Whether to include the cluster resources in the backup. If set to false, only the cluster configuration and disks will be backed up. (Note: Starting with Palette version 4.6, the `include_cluster_resources` attribute will be changed to a string type, supporting the values `always`, `never`, and `auto`.)
+- `include_cluster_resources` (Boolean) Indicates whether to include cluster resources in the backup. If set to false, only the cluster configuration and disks will be backed up. (Note: Starting with Palette version 4.6, the include_cluster_resources attribute will be deprecated, and a new attribute, include_cluster_resources_mode, will be introduced.)
+- `include_cluster_resources_mode` (String) Specifies whether to include the cluster resources in the backup. Supported values are `always`, `never`, and `auto`.
 - `include_disks` (Boolean) Whether to include the disks in the backup. If set to false, only the cluster configuration will be backed up.
 - `namespaces` (Set of String) The list of Kubernetes namespaces to include in the backup. If not specified, all namespaces will be included.
 
diff --git a/spectrocloud/cluster_common_policies.go b/spectrocloud/cluster_common_policies.go
index 88d8324a..7b08cdb8 100644
--- a/spectrocloud/cluster_common_policies.go
+++ b/spectrocloud/cluster_common_policies.go
@@ -2,10 +2,10 @@ package spectrocloud
 
 import (
 	"errors"
-
 	"github.com/hashicorp/terraform-plugin-sdk/v2/helper/schema"
 	"github.com/spectrocloud/palette-sdk-go/api/models"
 	"github.com/spectrocloud/palette-sdk-go/client"
+	"strings"
 )
 
 func toPolicies(d *schema.ResourceData) *models.V1SpectroClusterPolicies {
@@ -28,18 +28,29 @@ func toBackupPolicy(d *schema.ResourceData) *models.V1ClusterBackupConfig {
 			}
 		}
 
-		include := true
-		if policy["include_cluster_resources"] != nil {
-			include = policy["include_cluster_resources"].(bool)
+		// Extract and process the policy settings
+		includeClusterResourceMode := models.V1IncludeClusterResourceMode("Auto") // Default value
+		if policy["include_cluster_resources_mode"] != "" {
+			if v, ok := policy["include_cluster_resources_mode"].(string); ok {
+				includeClusterResourceMode = convertIncludeResourceMode(v)
+			}
+		} else if policy["include_cluster_resources"] != nil {
+			if include, ok := policy["include_cluster_resources"].(bool); ok {
+				if include {
+					includeClusterResourceMode = convertIncludeResourceMode("Always")
+				} else {
+					includeClusterResourceMode = convertIncludeResourceMode("Never")
+				}
+			}
 		}
 
 		return &models.V1ClusterBackupConfig{
-			BackupLocationUID:       policy["backup_location_id"].(string),
-			BackupPrefix:            policy["prefix"].(string),
-			DurationInHours:         int64(policy["expiry_in_hour"].(int)),
-			IncludeAllDisks:         policy["include_disks"].(bool),
-			IncludeClusterResources: include,
-			Namespaces:              namespaces,
+			BackupLocationUID:          policy["backup_location_id"].(string),
+			BackupPrefix:               policy["prefix"].(string),
+			DurationInHours:            int64(policy["expiry_in_hour"].(int)),
+			IncludeAllDisks:            policy["include_disks"].(bool),
+			IncludeClusterResourceMode: includeClusterResourceMode,
+			Namespaces:                 namespaces,
 			Schedule: &models.V1ClusterFeatureSchedule{
 				ScheduledRunTime: policy["schedule"].(string),
 			},
@@ -48,6 +59,18 @@ func toBackupPolicy(d *schema.ResourceData) *models.V1ClusterBackupConfig {
 	return nil
 }
 
+func convertIncludeResourceMode(m string) (mode models.V1IncludeClusterResourceMode) {
+	switch strings.ToLower(m) {
+	case "always":
+		return models.V1IncludeClusterResourceMode("Always")
+	case "never":
+		return models.V1IncludeClusterResourceMode("Never")
+	case "auto":
+		return models.V1IncludeClusterResourceMode("Auto")
+	}
+	return ""
+}
+
 func flattenBackupPolicy(policy *models.V1ClusterBackupConfig) []interface{} {
 	result := make([]interface{}, 0, 1)
 	data := make(map[string]interface{})
@@ -57,11 +80,16 @@ func flattenBackupPolicy(policy *models.V1ClusterBackupConfig) []interface{} {
 	data["namespaces"] = policy.Namespaces
 	data["expiry_in_hour"] = policy.DurationInHours
 	data["include_disks"] = policy.IncludeAllDisks
-	data["include_cluster_resources"] = policy.IncludeClusterResources
+	data["include_cluster_resources"] = flattenIncludeResourceMode(policy.IncludeClusterResourceMode)
+	data["include_cluster_resources_mode"] = policy.IncludeClusterResourceMode
 	result = append(result, data)
 	return result
 }
 
+func flattenIncludeResourceMode(m models.V1IncludeClusterResourceMode) bool {
+	return m == models.V1IncludeClusterResourceMode("Always")
+}
+
 func updateBackupPolicy(c *client.V1Client, d *schema.ResourceData) error {
 	if policy := toBackupPolicy(d); policy != nil {
 		//clusterContext := d.Get("context").(string)
diff --git a/spectrocloud/cluster_policies_test.go b/spectrocloud/cluster_policies_test.go
index 64d605ef..e4bf4908 100644
--- a/spectrocloud/cluster_policies_test.go
+++ b/spectrocloud/cluster_policies_test.go
@@ -76,13 +76,14 @@ func TestFlattenBackupPolicy(t *testing.T) {
 
 	expected := []interface{}{
 		map[string]interface{}{
-			"schedule":                  "daily",
-			"backup_location_id":        "location-123",
-			"prefix":                    "backup-prefix",
-			"namespaces":                []string{"namespace1", "namespace2"},
-			"expiry_in_hour":            int64(24),
-			"include_disks":             true,
-			"include_cluster_resources": true,
+			"schedule":                       "daily",
+			"backup_location_id":             "location-123",
+			"prefix":                         "backup-prefix",
+			"namespaces":                     []string{"namespace1", "namespace2"},
+			"expiry_in_hour":                 int64(24),
+			"include_disks":                  true,
+			"include_cluster_resources":      false,
+			"include_cluster_resources_mode": models.V1IncludeClusterResourceMode(""),
 		},
 	}
 
@@ -112,12 +113,13 @@ func TestToBackupPolicy(t *testing.T) {
 	result := toBackupPolicy(resourceData)
 
 	expected := &models.V1ClusterBackupConfig{
-		BackupLocationUID:       "location-123",
-		BackupPrefix:            "backup-prefix",
-		DurationInHours:         24,
-		IncludeAllDisks:         true,
-		IncludeClusterResources: true,
-		Namespaces:              []string{"namespace1"},
+		BackupLocationUID:          "location-123",
+		BackupPrefix:               "backup-prefix",
+		DurationInHours:            24,
+		IncludeAllDisks:            true,
+		IncludeClusterResources:    false,
+		IncludeClusterResourceMode: models.V1IncludeClusterResourceMode("Always"),
+		Namespaces:                 []string{"namespace1"},
 		Schedule: &models.V1ClusterFeatureSchedule{
 			ScheduledRunTime: "daily",
 		},
@@ -192,12 +194,13 @@ func TestToPolicies(t *testing.T) {
 
 	expected := &models.V1SpectroClusterPolicies{
 		BackupPolicy: &models.V1ClusterBackupConfig{
-			BackupLocationUID:       "location-123",
-			BackupPrefix:            "backup-prefix",
-			DurationInHours:         24,
-			IncludeAllDisks:         true,
-			IncludeClusterResources: true,
-			Namespaces:              []string{"namespace1"},
+			BackupLocationUID:          "location-123",
+			BackupPrefix:               "backup-prefix",
+			DurationInHours:            24,
+			IncludeAllDisks:            true,
+			IncludeClusterResources:    false,
+			IncludeClusterResourceMode: models.V1IncludeClusterResourceMode("Always"),
+			Namespaces:                 []string{"namespace1"},
 			Schedule: &models.V1ClusterFeatureSchedule{
 				ScheduledRunTime: "daily",
 			},
diff --git a/spectrocloud/schemas/backup_policy.go b/spectrocloud/schemas/backup_policy.go
index 77d981d2..d337b449 100644
--- a/spectrocloud/schemas/backup_policy.go
+++ b/spectrocloud/schemas/backup_policy.go
@@ -1,6 +1,9 @@
 package schemas
 
-import "github.com/hashicorp/terraform-plugin-sdk/v2/helper/schema"
+import (
+	"github.com/hashicorp/terraform-plugin-sdk/v2/helper/schema"
+	"github.com/hashicorp/terraform-plugin-sdk/v2/helper/validation"
+)
 
 func BackupPolicySchema() *schema.Schema {
 	return &schema.Schema{
@@ -40,7 +43,13 @@ func BackupPolicySchema() *schema.Schema {
 					Type:        schema.TypeBool,
 					Optional:    true,
 					Default:     true,
-					Description: "Whether to include the cluster resources in the backup. If set to false, only the cluster configuration and disks will be backed up. (Note: Starting with Palette version 4.6, the `include_cluster_resources` attribute will be changed to a string type, supporting the values `always`, `never`, and `auto`.)",
+					Description: "Indicates whether to include cluster resources in the backup. If set to false, only the cluster configuration and disks will be backed up. (Note: Starting with Palette version 4.6, the include_cluster_resources attribute will be deprecated, and a new attribute, include_cluster_resources_mode, will be introduced.)",
+				},
+				"include_cluster_resources_mode": {
+					Type:         schema.TypeString,
+					Optional:     true,
+					Description:  "Specifies whether to include the cluster resources in the backup. Supported values are `always`, `never`, and `auto`.",
+					ValidateFunc: validation.StringInSlice([]string{"always", "never", "auto"}, false),
 				},
 				"namespaces": {
 					Type:     schema.TypeSet,