diff --git a/gitlab/resource_gitlab_project_cluster.go b/gitlab/resource_gitlab_project_cluster.go
index 0759fc67f..e30b3f8ee 100644
--- a/gitlab/resource_gitlab_project_cluster.go
+++ b/gitlab/resource_gitlab_project_cluster.go
@@ -40,6 +40,12 @@ func resourceGitlabProjectCluster() *schema.Resource {
 				Default:  true,
 				ForceNew: true,
 			},
+			"managed": {
+				Type:     schema.TypeBool,
+				Optional: true,
+				Default:  true,
+				ForceNew: true,
+			},
 			"created_at": {
 				Type:     schema.TypeString,
 				Computed: true,
@@ -113,6 +119,7 @@ func resourceGitlabProjectClusterCreate(d *schema.ResourceData, meta interface{}
 	options := &gitlab.AddClusterOptions{
 		Name:               gitlab.String(d.Get("name").(string)),
 		Enabled:            gitlab.Bool(d.Get("enabled").(bool)),
+		Managed:            gitlab.Bool(d.Get("managed").(bool)),
 		PlatformKubernetes: &pk,
 	}
 
diff --git a/gitlab/resource_gitlab_project_cluster_test.go b/gitlab/resource_gitlab_project_cluster_test.go
index 0fb839e3d..e5eebf9b7 100644
--- a/gitlab/resource_gitlab_project_cluster_test.go
+++ b/gitlab/resource_gitlab_project_cluster_test.go
@@ -21,7 +21,22 @@ func TestAccGitlabProjectCluster_basic(t *testing.T) {
 		Steps: []resource.TestStep{
 			// Create a project and cluster with default options
 			{
-				Config: testAccGitlabProjectClusterConfig(rInt),
+				Config: testAccGitlabProjectClusterConfig(rInt, true),
+				Check: resource.ComposeTestCheckFunc(
+					testAccCheckGitlabProjectClusterExists("gitlab_project_cluster.foo", &cluster),
+					testAccCheckGitlabProjectClusterAttributes(&cluster, &testAccGitlabProjectClusterExpectedAttributes{
+						Name:                        fmt.Sprintf("foo-cluster-%d", rInt),
+						Domain:                      "example.com",
+						EnvironmentScope:            "*",
+						KubernetesApiURL:            "https://123.123.123",
+						KubernetesCACert:            projectClusterFakeCert,
+						KubernetesAuthorizationType: "abac",
+					}),
+				),
+			},
+			// create an unmanaged cluster
+			{
+				Config: testAccGitlabProjectClusterConfig(rInt, false),
 				Check: resource.ComposeTestCheckFunc(
 					testAccCheckGitlabProjectClusterExists("gitlab_project_cluster.foo", &cluster),
 					testAccCheckGitlabProjectClusterAttributes(&cluster, &testAccGitlabProjectClusterExpectedAttributes{
@@ -79,13 +94,13 @@ func TestAccGitlabProjectCluster_import(t *testing.T) {
 		CheckDestroy: testAccCheckGitlabProjectClusterDestroy,
 		Steps: []resource.TestStep{
 			{
-				Config: testAccGitlabProjectClusterConfig(rInt),
+				Config: testAccGitlabProjectClusterConfig(rInt, true),
 			},
 			{
 				ResourceName:            "gitlab_project_cluster.foo",
 				ImportState:             true,
 				ImportStateVerify:       true,
-				ImportStateVerifyIgnore: []string{"enabled", "kubernetes_token"},
+				ImportStateVerifyIgnore: []string{"enabled", "kubernetes_token", "managed"},
 			},
 		},
 	})
@@ -187,7 +202,12 @@ func testAccCheckGitlabProjectClusterAttributes(cluster *gitlab.ProjectCluster,
 	}
 }
 
-func testAccGitlabProjectClusterConfig(rInt int) string {
+func testAccGitlabProjectClusterConfig(rInt int, managed bool) string {
+	m := "false"
+	if managed {
+		m = "true"
+	}
+
 	return fmt.Sprintf(`
 variable "cert" {
   default = <<EOF
@@ -208,12 +228,13 @@ resource gitlab_project_cluster "foo" {
   project                       = "${gitlab_project.foo.id}"
   name                          = "foo-cluster-%d"
   domain                        = "example.com"
+  managed                       = "%s"
   kubernetes_api_url            = "https://123.123.123"
   kubernetes_token              = "some-token"
   kubernetes_ca_cert            = "${trimspace(var.cert)}"
   kubernetes_authorization_type = "abac"
 }
-`, projectClusterFakeCert, rInt, rInt)
+`, projectClusterFakeCert, rInt, rInt, m)
 }
 
 func testAccGitlabProjectClusterUpdateConfig(rInt int, authType string) string {
diff --git a/website/docs/r/project_cluster.html.markdown b/website/docs/r/project_cluster.html.markdown
index db522f49c..fd0f79e70 100644
--- a/website/docs/r/project_cluster.html.markdown
+++ b/website/docs/r/project_cluster.html.markdown
@@ -44,16 +44,18 @@ The following arguments are supported:
 
 * `domain` - (Optional, string) The base domain of the cluster.
 
-* `enabled` - (Optional, boolean) Determines if cluster is active or not. Defaults to `true`.
+* `enabled` - (Optional, boolean) Determines if cluster is active or not. Defaults to `true`. This attribute cannot be read.
+
+* `managed` - (Optional, boolean) Determines if cluster is managed by gitlab or not. Defaults to `true`. This attribute cannot be read.
 
 * `kubernetes_api_url` - (Required, string) The URL to access the Kubernetes API.
 
 * `kubernetes_token` - (Required, string) The token to authenticate against Kubernetes.
- 
+
 * `kubernetes_ca_cert` - (Optional, string) TLS certificate (needed if API is using a self-signed TLS certificate).
- 
+
 * `kubernetes_namespace` - (Optional, string) The unique namespace related to the project.
- 
+
 * `kubernetes_authorization_type` - (Optional, string) The cluster authorization type. Valid values are `rbac`, `abac`, `unknown_authorization`. Defaults to `rbac`.
 
 * `environment_scope` - (Optional, string) The associated environment to the cluster. Defaults to `*`.