diff --git a/castai/sdk/api.gen.go b/castai/sdk/api.gen.go
index 4342bfaa..41883823 100644
--- a/castai/sdk/api.gen.go
+++ b/castai/sdk/api.gen.go
@@ -2010,6 +2010,8 @@ type NodetemplatesV1TemplateConstraints struct {
 	// - Use Resource URI/FQDN of the sole tenancy node group as the name (example: /projects/test-123/zones/europe-west1b/nodeGroups/test-node-group).
 	// - The GKE cluster must use Shared VPC (https://cloud.google.com/vpc/docs/shared-vpc).
 	// - The sole tenancy node group must be shared with the GKE cluster's project or organization.
+	// - The CAST's service account must have the necessary permissions to create and operate instances
+	//   on the sole tenancy node group's project.
 	DedicatedNodeAffinity *[]NodetemplatesV1TemplateConstraintsDedicatedNodeAffinity `json:"dedicatedNodeAffinity,omitempty"`
 
 	// Enable/disable spot diversity policy. When enabled, autoscaler will try to balance between diverse and cost optimal instance types.
diff --git a/examples/eks/eks_cluster_access_entries/README.MD b/examples/eks/eks_cluster_access_entries/README.MD
new file mode 100644
index 00000000..ba36f213
--- /dev/null
+++ b/examples/eks/eks_cluster_access_entries/README.MD
@@ -0,0 +1,32 @@
+## EKS and CAST AI example with Access entries as way of auth (Phase 2)
+
+Following this example shows how to onboard an EKS cluster to CAST AI with CAST AI managed IAM policies.
+
+IAM policies in the example are created by [castai/eks-iam-role/castai module](https://github.com/castai/terraform-castai-eks-role-iam).
+
+Example configuration should be analysed in the following order:
+1. Create VPC - `vpc.tf`
+2. Create EKS cluster - `eks.tf`
+3. Create IAM and other CAST AI related resources to connect EKS cluster to CAST AI (In Phase 2)- `castai.tf`
+
+# Usage
+1. Rename `tf.vars.example` to `tf.vars`
+2. Update `tf.vars` file with your cluster name, cluster region and CAST AI API token
+3. Initialize Terraform. Under example root folder run:
+```
+terraform init
+```
+4. Run Terraform apply:
+```
+terraform apply -var-file=tf.vars
+```
+5. To destroy resources created by this example:
+```
+terraform destroy -var-file=tf.vars
+```
+
+> **Note**
+>
+> Cluster access mode should be either `EKS API and ConfigMap` or `EKS API` in case of existing cluster.
+
+Please refer to this guide if you run into any issues https://docs.cast.ai/docs/terraform-troubleshooting
diff --git a/examples/eks/eks_cluster_access_entries/castai.tf b/examples/eks/eks_cluster_access_entries/castai.tf
new file mode 100644
index 00000000..506884d1
--- /dev/null
+++ b/examples/eks/eks_cluster_access_entries/castai.tf
@@ -0,0 +1,85 @@
+# 3. Connect EKS cluster to CAST AI.
+
+locals {
+  role_name = "castai-eks-role"
+}
+
+# Configure Data sources and providers required for CAST AI connection.
+data "aws_caller_identity" "current" {}
+
+resource "castai_eks_user_arn" "castai_user_arn" {
+  cluster_id = castai_eks_clusterid.cluster_id.id
+}
+
+provider "castai" {
+  api_url   = var.castai_api_url
+  api_token = var.castai_api_token
+}
+
+provider "helm" {
+  kubernetes {
+    host                   = module.eks.cluster_endpoint
+    cluster_ca_certificate = base64decode(module.eks.cluster_certificate_authority_data)
+    exec {
+      api_version = "client.authentication.k8s.io/v1beta1"
+      command     = "aws"
+      # This requires the awscli to be installed locally where Terraform is executed.
+      args = ["eks", "get-token", "--cluster-name", module.eks.cluster_name, "--region", var.cluster_region]
+    }
+  }
+}
+
+# Create AWS IAM policies and a user to connect to CAST AI.
+module "castai-eks-role-iam" {
+  source = "castai/eks-role-iam/castai"
+
+  aws_account_id     = data.aws_caller_identity.current.account_id
+  aws_cluster_region = var.cluster_region
+  aws_cluster_name   = var.cluster_name
+  aws_cluster_vpc_id = module.vpc.vpc_id
+
+  castai_user_arn = castai_eks_user_arn.castai_user_arn.arn
+
+  create_iam_resources_per_cluster = true
+}
+
+# Configure EKS cluster connection using CAST AI eks-cluster module.
+resource "castai_eks_clusterid" "cluster_id" {
+  account_id   = data.aws_caller_identity.current.account_id
+  region       = var.cluster_region
+  cluster_name = var.cluster_name
+}
+
+module "castai-eks-cluster" {
+  source                 = "castai/eks-cluster/castai"
+  api_url                = var.castai_api_url
+  castai_api_token       = var.castai_api_token
+  grpc_url               = var.castai_grpc_url
+  wait_for_cluster_ready = true
+
+  aws_account_id     = data.aws_caller_identity.current.account_id
+  aws_cluster_region = var.cluster_region
+  aws_cluster_name   = module.eks.cluster_name
+
+  aws_assume_role_arn        = module.castai-eks-role-iam.role_arn
+  delete_nodes_on_disconnect = var.delete_nodes_on_disconnect
+
+  default_node_configuration = module.castai-eks-cluster.castai_node_configurations["default"]
+
+  node_configurations = {
+    default = {
+      subnets = module.vpc.private_subnets
+      tags    = var.tags
+      security_groups = [
+        module.eks.cluster_security_group_id,
+        module.eks.node_security_group_id,
+        aws_security_group.additional.id,
+      ]
+      instance_profile_arn = module.castai-eks-role-iam.instance_profile_arn
+    }
+  }
+
+  // depends_on helps Terraform with creating proper dependencies graph in case of resource creation and in this case destroy.
+  // module "castai-eks-cluster" has to be destroyed before module "castai-eks-role-iam".
+  depends_on = [module.castai-eks-role-iam]
+}
diff --git a/examples/eks/eks_cluster_access_entries/eks.tf b/examples/eks/eks_cluster_access_entries/eks.tf
new file mode 100644
index 00000000..b4ed05ee
--- /dev/null
+++ b/examples/eks/eks_cluster_access_entries/eks.tf
@@ -0,0 +1,74 @@
+# 2. Create EKS cluster.
+module "eks" {
+  source       = "terraform-aws-modules/eks/aws"
+  version      = "20.8.3"
+  putin_khuylo = true
+
+  cluster_name                   = var.cluster_name
+  cluster_version                = var.cluster_version
+  cluster_endpoint_public_access = true
+
+  cluster_addons = {
+    coredns = {
+      most_recent = true
+    }
+    kube-proxy = {
+      most_recent = true
+    }
+    vpc-cni = {
+      most_recent = true
+    }
+  }
+
+  vpc_id     = module.vpc.vpc_id
+  subnet_ids = module.vpc.private_subnets
+
+  authentication_mode = "API_AND_CONFIG_MAP"
+
+  self_managed_node_groups = {
+    node_group_1 = {
+      name          = "${var.cluster_name}-ng-1"
+      instance_type = "m5.large"
+      max_size      = 5
+      min_size      = 2
+      desired_size  = 2
+    }
+  }
+
+  eks_managed_node_groups = {
+    node_group_spot = {
+      name         = "${var.cluster_name}-spot"
+      min_size     = 1
+      max_size     = 10
+      desired_size = 1
+
+      instance_types = ["t3.large"]
+      capacity_type  = "SPOT"
+
+      update_config = {
+        max_unavailable_percentage = 50 # or set `max_unavailable`
+      }
+    }
+  }
+}
+
+# Example additional security group.
+resource "aws_security_group" "additional" {
+  name_prefix = "${var.cluster_name}-additional"
+  vpc_id      = module.vpc.vpc_id
+
+  ingress {
+    from_port = 22
+    to_port   = 22
+    protocol  = "tcp"
+    cidr_blocks = [
+      "10.0.0.0/8",
+    ]
+  }
+}
+
+resource "aws_eks_access_entry" "access_entry" {
+  cluster_name  = var.cluster_name
+  principal_arn = module.castai-eks-role-iam.instance_profile_role_arn
+  type          = "EC2_LINUX"
+}
\ No newline at end of file
diff --git a/examples/eks/eks_cluster_access_entries/providers.tf b/examples/eks/eks_cluster_access_entries/providers.tf
new file mode 100644
index 00000000..2a9bec45
--- /dev/null
+++ b/examples/eks/eks_cluster_access_entries/providers.tf
@@ -0,0 +1,15 @@
+# Following providers required by EKS and VPC modules.
+provider "aws" {
+  region = var.cluster_region
+}
+
+provider "kubernetes" {
+  host                   = module.eks.cluster_endpoint
+  cluster_ca_certificate = base64decode(module.eks.cluster_certificate_authority_data)
+  exec {
+    api_version = "client.authentication.k8s.io/v1beta1"
+    command     = "aws"
+    # This requires the awscli to be installed locally where Terraform is executed
+    args = ["eks", "get-token", "--cluster-name", module.eks.cluster_name, "--region", var.cluster_region]
+  }
+}
diff --git a/examples/eks/eks_cluster_access_entries/tf.vars.example b/examples/eks/eks_cluster_access_entries/tf.vars.example
new file mode 100644
index 00000000..4becba44
--- /dev/null
+++ b/examples/eks/eks_cluster_access_entries/tf.vars.example
@@ -0,0 +1,3 @@
+cluster_name     = "<place-holder>"
+cluster_region   = "<place-holder>"
+castai_api_token = "<place-holder>"
diff --git a/examples/eks/eks_cluster_access_entries/variables.tf b/examples/eks/eks_cluster_access_entries/variables.tf
new file mode 100644
index 00000000..6f46cd82
--- /dev/null
+++ b/examples/eks/eks_cluster_access_entries/variables.tf
@@ -0,0 +1,46 @@
+# EKS module variables.
+variable "cluster_name" {
+  type        = string
+  description = "EKS cluster name in AWS account."
+}
+
+variable "cluster_version" {
+  type        = string
+  description = "EKS cluster name version."
+  default     = "1.27"
+}
+
+variable "cluster_region" {
+  type        = string
+  description = "AWS Region in which EKS cluster and supporting resources will be created."
+}
+
+variable "castai_api_url" {
+  type        = string
+  description = "URL of alternative CAST AI API to be used during development or testing"
+  default     = "https://api.cast.ai"
+}
+
+# Variables required for connecting EKS cluster to CAST AI.
+variable "castai_api_token" {
+  type        = string
+  description = "CAST AI API token created in console.cast.ai API Access keys section"
+}
+
+variable "castai_grpc_url" {
+  type        = string
+  description = "CAST AI gRPC URL"
+  default     = "grpc.cast.ai:443"
+}
+
+variable "delete_nodes_on_disconnect" {
+  type        = bool
+  description = "Optional parameter, if set to true - CAST AI provisioned nodes will be deleted from cloud on cluster disconnection. For production use it is recommended to set it to false."
+  default     = true
+}
+
+variable "tags" {
+  type        = map(any)
+  description = "Optional tags for new cluster nodes. This parameter applies only to new nodes - tags for old nodes are not reconciled."
+  default     = {}
+}
diff --git a/examples/eks/eks_cluster_access_entries/versions.tf b/examples/eks/eks_cluster_access_entries/versions.tf
new file mode 100644
index 00000000..70ee4499
--- /dev/null
+++ b/examples/eks/eks_cluster_access_entries/versions.tf
@@ -0,0 +1,17 @@
+terraform {
+  required_providers {
+    castai = {
+      source = "castai/castai"
+    }
+    kubernetes = {
+      source = "hashicorp/kubernetes"
+    }
+    helm = {
+      source = "hashicorp/helm"
+    }
+    aws = {
+      source = "hashicorp/aws"
+    }
+  }
+  required_version = ">= 0.13"
+}
diff --git a/examples/eks/eks_cluster_access_entries/vpc.tf b/examples/eks/eks_cluster_access_entries/vpc.tf
new file mode 100644
index 00000000..358552a5
--- /dev/null
+++ b/examples/eks/eks_cluster_access_entries/vpc.tf
@@ -0,0 +1,32 @@
+# 1. Create VPC.
+data "aws_availability_zones" "available" {}
+
+module "vpc" {
+  source  = "terraform-aws-modules/vpc/aws"
+  version = "5.0.0"
+
+  name = var.cluster_name
+  cidr = "10.0.0.0/16"
+
+  azs             = data.aws_availability_zones.available.names
+  private_subnets = ["10.0.1.0/24", "10.0.2.0/24", "10.0.3.0/24"]
+  public_subnets  = ["10.0.4.0/24", "10.0.5.0/24", "10.0.6.0/24"]
+
+  enable_nat_gateway     = true
+  single_nat_gateway     = true
+  one_nat_gateway_per_az = false
+
+  tags = {
+    "kubernetes.io/cluster/${var.cluster_name}" = "shared"
+  }
+
+  public_subnet_tags = {
+    "kubernetes.io/cluster/${var.cluster_name}" = "shared"
+    "kubernetes.io/role/elb"                    = 1
+  }
+
+  private_subnet_tags = {
+    "kubernetes.io/cluster/${var.cluster_name}" = "shared"
+    "kubernetes.io/role/internal-elb"           = 1
+  }
+}