diff --git a/README.md b/README.md
index e71b99e..cdec846 100644
--- a/README.md
+++ b/README.md
@@ -43,6 +43,7 @@ module "db" {
 ## Examples
 
 - [PostgreSQL](examples/postgres): A simple example with VPC and PostgreSQL cluster.
+- [PostgreSQL Serverless V2](examples/postgresql-serverlessv2): A simple example with VPC and PostgreSQL Serverless V2 cluster.
 - [MySQL](examples/mysql): A simple example with VPC and MySQL cluster.
 - [Production](examples/production): A production ready PostgreSQL cluster with enhanced monitoring, autoscaling and cloudwatch alarms.
 
@@ -60,13 +61,13 @@ terraform-docs md ./ | cat -s | perl -e "print reverse(<>)" | tail -n +2 | perl
 
 | Name | Version |
 |------|---------|
-| <a name="requirement_aws"></a> [aws](#requirement\_aws) | >= 3.63.0 |
+| <a name="requirement_aws"></a> [aws](#requirement\_aws) | >= 4.12.1 |
 
 ## Providers
 
 | Name | Version |
 |------|---------|
-| <a name="provider_aws"></a> [aws](#provider\_aws) | >= 3.63.0 |
+| <a name="provider_aws"></a> [aws](#provider\_aws) | >= 4.12.1 |
 | <a name="provider_random"></a> [random](#provider\_random) | n/a |
 
 ## Modules
@@ -138,6 +139,7 @@ No modules.
 | <a name="input_deletion_protection"></a> [deletion\_protection](#input\_deletion\_protection) | The database can't be deleted when this value is set to true. | `bool` | `true` | no |
 | <a name="input_enabled_cloudwatch_logs_exports"></a> [enabled\_cloudwatch\_logs\_exports](#input\_enabled\_cloudwatch\_logs\_exports) | Set of log types to export to cloudwatch. If omitted, no logs will be exported. The following log types are supported: audit, error, general, slowquery, postgresql (PostgreSQL). | `list(any)` | `[]` | no |
 | <a name="input_engine"></a> [engine](#input\_engine) | Aurora database engine type, currently aurora, aurora-mysql or aurora-postgresql | `string` | `"aurora"` | no |
+| <a name="input_engine_mode"></a> [engine\_mode](#input\_engine\_mode) | Aurora database engine mode. | `string` | `"provisioned"` | no |
 | <a name="input_engine_version"></a> [engine\_version](#input\_engine\_version) | Aurora database engine version. | `string` | `"5.6.10a"` | no |
 | <a name="input_extra_security_groups"></a> [extra\_security\_groups](#input\_extra\_security\_groups) | A list of Security Group IDs to add to the cluster | `list` | `[]` | no |
 | <a name="input_final_snapshot_identifier_prefix"></a> [final\_snapshot\_identifier\_prefix](#input\_final\_snapshot\_identifier\_prefix) | The prefix name to use when creating a final snapshot on cluster destroy, appends a random 8 digits to name to ensure it's unique too. | `string` | `"final-"` | no |
@@ -168,6 +170,8 @@ No modules.
 | <a name="input_route53_record_ttl"></a> [route53\_record\_ttl](#input\_route53\_record\_ttl) | TTL of route53 record. Only used if route53\_zone\_id is passed also | `string` | `60` | no |
 | <a name="input_route53_zone_id"></a> [route53\_zone\_id](#input\_route53\_zone\_id) | If specified a route53 record will be created | `string` | `""` | no |
 | <a name="input_security_group_name_prefix"></a> [security\_group\_name\_prefix](#input\_security\_group\_name\_prefix) | Prefix for security group name | `string` | `"aurora-"` | no |
+| <a name="input_serverlessv2_max_capacity"></a> [serverlessv2\_max\_capacity](#input\_serverlessv2\_max\_capacity) | Maximum capacity for an Aurora DB cluster in provisioned(serverless v2) DB engine mode | `number` | `1` | no |
+| <a name="input_serverlessv2_min_capacity"></a> [serverlessv2\_min\_capacity](#input\_serverlessv2\_min\_capacity) | Minimum capacity for an Aurora DB cluster in provisioned(serverless v2) DB engine mode | `number` | `0.5` | no |
 | <a name="input_skip_final_snapshot"></a> [skip\_final\_snapshot](#input\_skip\_final\_snapshot) | Should a final snapshot be created on cluster destroy | `bool` | `false` | no |
 | <a name="input_snapshot_identifier"></a> [snapshot\_identifier](#input\_snapshot\_identifier) | DB snapshot to create this database from | `string` | `""` | no |
 | <a name="input_storage_encrypted"></a> [storage\_encrypted](#input\_storage\_encrypted) | Specifies whether the underlying storage layer should be encrypted | `bool` | `false` | no |
diff --git a/examples/postgresql-serverlessv2/README.md b/examples/postgresql-serverlessv2/README.md
new file mode 100644
index 0000000..beec765
--- /dev/null
+++ b/examples/postgresql-serverlessv2/README.md
@@ -0,0 +1,9 @@
+# A simple example
+
+This example will show the bare minimum parameters to create a Serverless V2 PostgreSQL Aurora cluster.
+
+In general setup of the PostgreSQL serverless v2 cluster is very similar to creation of a regular PostgreSQL cluster.
+The only crucial differences are the following:
+* `engine_mode` needs to be specified and set to `provisioned`
+* `instance_type` is to be set to `db.serverless`
+* Scaling params are to be set in `serverlessv2_min_capacity` and `serverlessv2_max_capacity` params. 
\ No newline at end of file
diff --git a/examples/postgresql-serverlessv2/main.tf b/examples/postgresql-serverlessv2/main.tf
new file mode 100644
index 0000000..206488c
--- /dev/null
+++ b/examples/postgresql-serverlessv2/main.tf
@@ -0,0 +1,76 @@
+provider "aws" {
+  region = "eu-west-1"
+}
+
+data "aws_availability_zones" "available" {}
+
+module "aurora" {
+  source                          = "../../"
+  name                            = "aurora-example-postgresql"
+  engine                          = "aurora-postgresql"
+  engine_mode                     = "provisioned"
+  engine_version                  = "16.4"
+  subnet_ids                      = ["${module.vpc.database_subnets}"]
+  vpc_id                          = "${module.vpc.vpc_id}"
+  replica_count                   = 1
+  instance_type                   = "db.serverless"
+  apply_immediately               = true
+  skip_final_snapshot             = true
+  db_parameter_group_name         = "${aws_db_parameter_group.aurora_db_postgres164_parameter_group.id}"
+  db_cluster_parameter_group_name = "${aws_rds_cluster_parameter_group.aurora_cluster_postgres164_parameter_group.id}"
+  serverlessv2_min_capacity       = 0.5
+  serverlessv2_max_capacity       = 2
+}
+
+resource "aws_db_parameter_group" "aurora_db_postgres164_parameter_group" {
+  name        = "test-aurora-db-postgres164-parameter-group"
+  family      = "aurora-postgresql16.4"
+  description = "test-aurora-db-postgres164-parameter-group"
+}
+
+resource "aws_rds_cluster_parameter_group" "aurora_cluster_postgres164_parameter_group" {
+  name        = "test-aurora-postgres164-cluster-parameter-group"
+  family      = "aurora-postgresql16.4"
+  description = "test-aurora-postgres164-cluster-parameter-group"
+}
+
+resource "aws_security_group" "app_servers" {
+  name        = "app-servers"
+  description = "For application servers"
+  vpc_id      = "${module.vpc.vpc_id}"
+}
+
+resource "aws_security_group_rule" "allow_access" {
+  type                     = "ingress"
+  from_port                = "${module.aurora.cluster_port}"
+  to_port                  = "${module.aurora.cluster_port}"
+  protocol                 = "tcp"
+  source_security_group_id = "${aws_security_group.app_servers.id}"
+  security_group_id        = "${module.aurora.security_group_id}"
+}
+
+module "vpc" {
+  source  = "terraform-aws-modules/vpc/aws"
+  version = "1.46.0"
+  name    = "example-postgres"
+  cidr    = "10.0.0.0/16"
+  azs     = ["${data.aws_availability_zones.available.names}"]
+
+  private_subnets = [
+    "10.0.1.0/24",
+    "10.0.2.0/24",
+    "10.0.3.0/25",
+  ]
+
+  public_subnets = [
+    "10.0.4.0/24",
+    "10.0.5.0/24",
+    "10.0.6.0/25",
+  ]
+
+  database_subnets = [
+    "10.0.7.0/24",
+    "10.0.8.0/24",
+    "10.0.9.0/25",
+  ]
+}
diff --git a/main.tf b/main.tf
index bd4447c..b9c842c 100644
--- a/main.tf
+++ b/main.tf
@@ -46,6 +46,7 @@ resource "aws_rds_cluster" "main" {
   cluster_identifier               = "${var.identifier_prefix}${var.name}"
   engine                           = var.engine
   engine_version                   = var.engine_version
+  engine_mode                      = var.engine_mode
   kms_key_id                       = var.kms_key_id
   master_username                  = var.username
   master_password                  = local.master_password
@@ -71,6 +72,14 @@ resource "aws_rds_cluster" "main" {
     update = var.update_timeout
     delete = var.delete_timeout
   }
+
+  dynamic "serverlessv2_scaling_configuration" {
+    for_each = var.instance_type == "db.serverless" ? [1] : []
+    content {
+      max_capacity = var.serverlessv2_max_capacity
+      min_capacity = var.serverlessv2_min_capacity
+    }
+  }
 }
 
 resource "aws_rds_cluster_instance" "instance" {
diff --git a/variables.tf b/variables.tf
index 907a1e0..87b4efa 100644
--- a/variables.tf
+++ b/variables.tf
@@ -199,6 +199,11 @@ variable "engine_version" {
   default     = "5.6.10a"
 }
 
+variable "engine_mode" {
+  description = "Aurora database engine mode."
+  default     = "provisioned"
+}
+
 variable "replica_autoscaling" {
   type        = string
   default     = false
@@ -357,3 +362,15 @@ variable "cloudwatch_log_group_retention_in_days" {
   type        = number
   default     = 1
 }
+
+variable "serverlessv2_min_capacity" {
+  description = "Minimum capacity for an Aurora DB cluster in provisioned (serverless v2) DB engine mode"
+  type        = number
+  default     = 0.5
+}
+
+variable "serverlessv2_max_capacity" {
+  description = "Maximum capacity for an Aurora DB cluster in provisioned (serverless v2) DB engine mode"
+  type        = number
+  default     = 1
+}
diff --git a/versions.tf b/versions.tf
index 851b378..fc68dbe 100644
--- a/versions.tf
+++ b/versions.tf
@@ -2,7 +2,7 @@ terraform {
   required_providers {
     aws = {
       source  = "hashicorp/aws"
-      version = ">= 3.63.0"
+      version = ">= 4.12.1"
     }
   }
 }