diff --git a/sky/clouds/gcp.py b/sky/clouds/gcp.py
index 7e7dacc539f..94add7fce7d 100644
--- a/sky/clouds/gcp.py
+++ b/sky/clouds/gcp.py
@@ -509,6 +509,10 @@ def make_deploy_resources_variables(
             ('gcp', 'managed_instance_group'), None)
         use_mig = managed_instance_group_config is not None
         resources_vars['gcp_use_managed_instance_group'] = use_mig
+        # Convert boolean to 0 or 1 in string, as GCP does not support boolean
+        # value in labels for TPU VM APIs.
+        resources_vars['gcp_use_managed_instance_group_value'] = str(
+            int(use_mig))
         if use_mig:
             resources_vars.update(managed_instance_group_config)
         return resources_vars
diff --git a/sky/templates/gcp-ray.yml.j2 b/sky/templates/gcp-ray.yml.j2
index 51a7b332a72..f4ec10a697d 100644
--- a/sky/templates/gcp-ray.yml.j2
+++ b/sky/templates/gcp-ray.yml.j2
@@ -80,7 +80,7 @@ available_node_types:
       {%- for label_key, label_value in labels.items() %}
         {{ label_key }}: {{ label_value|tojson }}
       {%- endfor %}
-        managed-instance-group: {{ gcp_use_managed_instance_group }}
+        use-managed-instance-group: {{ gcp_use_managed_instance_group_value|tojson }}
       {%- if gcp_use_managed_instance_group %}
       managed-instance-group:
         run_duration: {{ run_duration }}