diff --git a/templates/terraform/encoders/backend_service.go.erb b/templates/terraform/encoders/backend_service.go.erb
index db47dca273af..e2c1b46a5de4 100644
--- a/templates/terraform/encoders/backend_service.go.erb
+++ b/templates/terraform/encoders/backend_service.go.erb
@@ -43,8 +43,12 @@ for _, backendRaw := range backends {
 	if !ok {
 		continue
 	}
-	if strings.Contains(backendGroup.(string), "global/networkEndpointGroups") {
-		// Remove `max_utilization` from any backend that belongs to a global NEG. This field
+	match, err := regexp.MatchString("projects/(?P<project>[^/]+)/regions/(?P<region>[^/]+)/networkEndpointGroups/(?P<name>[^/]+)", backendGroup.(string))
+	if err != nil {
+		return nil, err
+	}
+	if match || strings.Contains(backendGroup.(string), "global/networkEndpointGroups") {
+		// Remove `max_utilization` from any backend that belongs to a serverless NEG. This field
 		// has a default value and causes API validation errors
 		backend["maxUtilization"] = nil
 	}
diff --git a/third_party/terraform/tests/resource_compute_backend_service_test.go.erb b/third_party/terraform/tests/resource_compute_backend_service_test.go.erb
index 336aefee11b4..bb4397641125 100644
--- a/third_party/terraform/tests/resource_compute_backend_service_test.go.erb
+++ b/third_party/terraform/tests/resource_compute_backend_service_test.go.erb
@@ -653,6 +653,30 @@ func TestAccComputeBackendService_trafficDirectorUpdateFull(t *testing.T) {
 }
 <% end -%>
 
+<% unless version == 'ga' -%>
+func TestAccComputeBackendService_regionNegBackend(t *testing.T) {
+	t.Parallel()
+
+	suffix := randString(t, 10)
+
+	vcrTest(t, resource.TestCase{
+		PreCheck:     func() { testAccPreCheck(t) },
+		Providers:    testAccProviders,
+		CheckDestroy: testAccCheckComputeBackendServiceDestroyProducer(t),
+		Steps: []resource.TestStep{
+			{
+				Config: testAccComputeBackendService_regionNegBackend(suffix),
+			},
+			{
+				ResourceName:      "google_compute_backend_service.backend",
+				ImportState:       true,
+				ImportStateVerify: true,
+			},
+		},
+	})
+}
+<% end -%>
+
 func testAccComputeBackendService_trafficDirectorBasic(serviceName, checkName string) string {
 	return fmt.Sprintf(`
 resource "google_compute_backend_service" "foobar" {
@@ -1508,3 +1532,47 @@ resource "google_compute_http_health_check" "zero" {
 }
 `, serviceName, sampleRate, checkName)
 }
+
+<% unless version == 'ga' -%>
+func testAccComputeBackendService_regionNegBackend(suffix string) string {
+	return fmt.Sprintf(`
+resource "google_compute_backend_service" "backend" {
+  name                            = "backend%s"
+  enable_cdn                      = true
+  connection_draining_timeout_sec = 10
+ 
+  backend {
+    group = google_compute_region_network_endpoint_group.cloudrun_neg.id
+  }
+}
+
+resource "google_compute_region_network_endpoint_group" "cloudrun_neg" {
+  name                  = "cloudrun-neg%s"
+  network_endpoint_type = "SERVERLESS"
+  region                = "us-central1"
+  cloud_run {
+    service = google_cloud_run_service.cloudrun_neg.name
+  }
+}
+
+resource "google_cloud_run_service" "cloudrun_neg" {
+  name     = "cloudrun-neg%s"
+  location = "us-central1"
+
+  template {
+    spec {
+      containers {
+        image = "gcr.io/cloudrun/hello"
+      }
+    }
+  }
+
+  traffic {
+    percent         = 100
+    latest_revision = true
+  }
+}
+
+`, suffix, suffix, suffix)
+}
+<% end -%>