diff --git a/castai/resource_node_configuration.go b/castai/resource_node_configuration.go
index 2a09c9a58..4cc24b1d4 100644
--- a/castai/resource_node_configuration.go
+++ b/castai/resource_node_configuration.go
@@ -1016,8 +1016,8 @@ func toAKSSConfig(obj map[string]interface{}) *sdk.NodeconfigV1AKSConfig {
 		out.OsDiskType = toAKSOSDiskType(v)
 	}
 
-	if v, ok := obj[FieldNodeConfigurationAKSEphemeralOSDisk].([]any); ok {
-		out.OsDiskEphemeral = toAKSEphemeralOSDisk(v)
+	if v, ok := obj[FieldNodeConfigurationAKSEphemeralOSDisk].([]any); ok && len(v) > 0 {
+		out.OsDiskEphemeral = toAKSEphemeralOSDisk(v[0])
 	}
 
 	if v, ok := obj[FieldNodeConfigurationAKSImageFamily].(string); ok {
@@ -1031,16 +1031,11 @@ func toAKSSConfig(obj map[string]interface{}) *sdk.NodeconfigV1AKSConfig {
 	return out
 }
 
-func toAKSEphemeralOSDisk(objs []any) *sdk.NodeconfigV1AKSConfigOsDiskEphemeral {
-	if objs == nil {
-		return nil
-	}
-
-	if len(objs) != 1 {
+func toAKSEphemeralOSDisk(obj any) *sdk.NodeconfigV1AKSConfigOsDiskEphemeral {
+	if obj == nil {
 		return nil
 	}
 
-	obj := objs[0]
 	osDisk := &sdk.NodeconfigV1AKSConfigOsDiskEphemeral{}
 
 	if v, ok := obj.(map[string]any)["placement"].(string); ok && v != "" {
diff --git a/examples/aks/aks_cluster_autoscaler_policies/castai.tf b/examples/aks/aks_cluster_autoscaler_policies/castai.tf
index b29c309db..0b59097ce 100644
--- a/examples/aks/aks_cluster_autoscaler_policies/castai.tf
+++ b/examples/aks/aks_cluster_autoscaler_policies/castai.tf
@@ -50,6 +50,9 @@ module "castai-aks-cluster" {
       subnets           = [azurerm_subnet.internal.id]
       tags              = var.tags
       max_pods_per_node = 40
+      aks_ephemeral_os_disk = {
+        placement = "cacheDisk"
+      }
     }
   }
 
diff --git a/examples/aks/aks_cluster_autoscaler_policies/versions.tf b/examples/aks/aks_cluster_autoscaler_policies/versions.tf
index 9c3f0a05a..58a93ef75 100644
--- a/examples/aks/aks_cluster_autoscaler_policies/versions.tf
+++ b/examples/aks/aks_cluster_autoscaler_policies/versions.tf
@@ -8,6 +8,7 @@ terraform {
     }
     castai = {
       source = "castai/castai"
+      version = "7.20.1"
     }
   }
   required_version = ">= 0.13"