diff --git a/lib/shared/addon/components/cluster-driver/driver-gke/component.js b/lib/shared/addon/components/cluster-driver/driver-gke/component.js
index 7000a10082..d1a7910392 100644
--- a/lib/shared/addon/components/cluster-driver/driver-gke/component.js
+++ b/lib/shared/addon/components/cluster-driver/driver-gke/component.js
@@ -242,9 +242,6 @@ export default Component.extend(ClusterDriver, {
           }
         }
 
-        if (isEmpty(config.kubernetesVersion)) {
-          set(this, 'config.kubernetesVersion', versions?.defaultClusterVersion);
-        }
 
         cb(true);
       }).catch((err) => {
@@ -275,6 +272,14 @@ export default Component.extend(ClusterDriver, {
     },
   },
 
+  versionChoicesChanged: observer('versionChoices.[]', 'config.kubernetesVersion', 'versions.{validMasterVersions,channels}', function(){
+    const { config, versionChoices } = this;
+
+    if (isEmpty(config.kubernetesVersion)) {
+      set(this, 'config.kubernetesVersion', versionChoices[0].value);
+    }
+  }),
+
   networkPolicyEnabledChanged: observer('config.networkPolicyEnabled', function() {
     if (get(this, 'isNew') && get(this, 'config.networkPolicyEnabled')) {
       set(this, 'config.clusterAddons.networkPolicyConfig', true);
@@ -860,9 +865,7 @@ export default Component.extend(ClusterDriver, {
       }
     }
 
-    if (isEmpty(initialVersion)) {
-      initialVersion = validMasterVersions[0];
-    }
+
 
     if (this.editing && !validMasterVersions.includes(initialVersion)) {
       validMasterVersions.unshift(initialVersion);
@@ -871,6 +874,11 @@ export default Component.extend(ClusterDriver, {
     Semver.rsort(validMasterVersions, { includePrerelease: true });
     const versionChoices = this.serviceVersions.parseCloudProviderVersionChoicesV2(validMasterVersions.slice(), initialVersion, mode, null, false, MINIMUM_VERSION);
 
+    if (isEmpty(initialVersion)) {
+      initialVersion = versionChoices[0]?.value;
+    }
+
+
     if (this.editing) {
       try {
         const initialSem = Semver.parse(initialVersion, { includePrerelease: true });
diff --git a/lib/shared/addon/components/gke-node-pool-row/component.js b/lib/shared/addon/components/gke-node-pool-row/component.js
index b5851d6f0f..af2f70d8c6 100644
--- a/lib/shared/addon/components/gke-node-pool-row/component.js
+++ b/lib/shared/addon/components/gke-node-pool-row/component.js
@@ -27,15 +27,12 @@ export default Component.extend({
   nodeVersions:            null,
   clusterVersion:          null,
   upgradeVersion:          false,
+  originalPoolVersion:     null,
 
   init() {
     this._super(...arguments);
 
-    const {
-      nodePool,
-      clusterVersion,
-      defaultClusterVersion
-    } = this;
+    const { nodePool } = this;
 
     setProperties(this, {
       scopeConfig:            {},
@@ -54,8 +51,8 @@ export default Component.extend({
         }
       }
 
-      if (isEmpty(nodePool?.version) && !isEmpty(clusterVersion)) {
-        set(this, 'nodePool.version', defaultClusterVersion);
+      if (nodePool.version){
+        set(this, 'originalPoolVersion', nodePool.version)
       }
     } else {
       setProperties(this, {
@@ -87,15 +84,6 @@ export default Component.extend({
     this.send('updateScopes');
   }),
 
-  editingUpdateNodeVersion: observer('isNewNodePool', 'clusterVersion', function() {
-    const { isNewNodePool, clusterVersion } = this;
-    const nodeVersion    = get(this, 'nodePool.version');
-
-    if (isNewNodePool && clusterVersion !== nodeVersion) {
-      set(this, 'nodePool.version', clusterVersion);
-    }
-  }),
-
   autoscalingChanged: observer('nodePool.autoscaling.enabled', function() {
     if (this.isDestroyed || this.isDestroying) {
       return;
@@ -124,6 +112,31 @@ export default Component.extend({
     }
   }),
 
+  // if true, set np.version to latest version <= cp version
+  // if false, revert np.version
+  upgradeVersionChanged: observer('upgradeVersion', 'maxAvailableVersion', function()  {
+    const {
+      upgradeVersion, originalPoolVersion, nodePool, maxAvailableVersion
+    } = this
+
+    if (upgradeVersion){
+      set(nodePool, 'version', maxAvailableVersion)
+    } else {
+      set(nodePool, 'version', originalPoolVersion)
+    }
+  }),
+
+  // if the pool is new, keep version in sync with cp version
+  clusterVersionChanged: on('init', observer('clusterVersion', 'maxAvailableVersion', function(){
+    const {
+      maxAvailableVersion, isNewNodePool, nodePool
+    } = this;
+
+    if (isNewNodePool && maxAvailableVersion !== nodePool.version){
+      set(nodePool, 'version', maxAvailableVersion)
+    }
+  })),
+
   scopeConfigChanged: on('init', observer('scopeConfig', function() {
     if (this.isDestroyed || this.isDestroying) {
       return;
@@ -181,26 +194,43 @@ export default Component.extend({
     return '';
   }),
 
-  upgradeAvailable: computed('clusterVersion', 'mode', 'nodePool.version', 'defaultClusterVersion', function() {
-    const { clusterVersion, defaultClusterVersion } = this;
-    const nodeVersion = get(this, 'nodePool.version');
+  clusterWillUpgrade: computed('clusterVersion', 'originalClusterVersion', function(){
+    const { clusterVersion, originalClusterVersion } = this;
 
-    if (isEmpty(clusterVersion) || isEmpty(nodeVersion)) {
-      return false;
-    }
+    return !!clusterVersion && !!originalClusterVersion && clusterVersion !== originalClusterVersion
+  }),
 
-    const nodeIsLess = Semver.lt(nodeVersion, clusterVersion, { includePrerelease: true });
-    const clusterVersionIsAlsoTheMaxVersion = clusterVersion === defaultClusterVersion;
+  isNewNodePool: computed('nodePool.isNew', function() {
+    return this?.nodePool?.isNew ? true : false;
+  }),
 
-    if (nodeIsLess && clusterVersionIsAlsoTheMaxVersion) {
-      return true;
-    }
+  /**
+   * This property is used to show/hide a np version upgrade checkbox
+   * when the box is checked the np is upgraded to latest node version that is <= cp version
+   * with new node pools, the version is always kept in sync with the cp version so no checkbox shown
+   */
+  upgradeAvailable: computed('isNewNodePool', 'clusterWillUpgrade', function(){
+    const { isNewNodePool, clusterWillUpgrade } = this;
 
-    return false;
+    return !isNewNodePool && clusterWillUpgrade
   }),
 
-  isNewNodePool: computed('nodePool.isNew', function() {
-    return this?.nodePool?.isNew ? true : false;
+
+  // GCP api provides a separate list of versions for node pools, which can be upgraded to anything <= control plane version
+  maxAvailableVersion: computed('clusterVersion', 'nodeVersions.[]', function() {
+    const { clusterVersion, nodeVersions } = this;
+
+    const availableVersions = nodeVersions.filter((nv) => {
+      try {
+        const lteCP = Semver.lte(nv, clusterVersion, { includePreRelease: true })
+
+        return lteCP
+      } catch {
+        return
+      }
+    })
+
+    return availableVersions[0]
   }),
 
   editedMachineChoice: computed('nodePool.config.machineType', 'machineChoices', function() {
@@ -221,14 +251,4 @@ export default Component.extend({
     return out.sortBy('sortName')
   }),
 
-
-  shouldUpgradeVersion: on('init', observer('upgradeVersion', 'clusterVersion', function() {
-    const { upgradeVersion, clusterVersion } = this;
-    const nodeVersion    = get(this, 'nodePool.version');
-
-    if (upgradeVersion && clusterVersion !== nodeVersion) {
-      set(this, 'nodePool.version', clusterVersion);
-    }
-  })),
-
 });
diff --git a/lib/shared/addon/components/gke-node-pool-row/template.hbs b/lib/shared/addon/components/gke-node-pool-row/template.hbs
index 1a0bc372e1..6f87b6b8aa 100644
--- a/lib/shared/addon/components/gke-node-pool-row/template.hbs
+++ b/lib/shared/addon/components/gke-node-pool-row/template.hbs
@@ -19,11 +19,6 @@
       <label class="acc-label">
         {{t "clusterNew.googlegke.masterVersion.label"}}
       </label>
-      {{!-- <NewSelect
-        @classNames="form-control"
-        @content={{versionChoices}}
-        @value={{mut nodePool.version}}
-      /> --}}
       {{#if upgradeAvailable}}
         <div class="checkbox form-control-static">
           <label class="acc-label">
@@ -34,8 +29,8 @@
             />
             {{t
               "nodeGroupRow.version.upgrade"
-              from=nodePool.version
-              version=clusterVersion
+              from=originalPoolVersion
+              version=maxAvailableVersion
             }}
           </label>
         </div>