diff --git a/.changelog/12077.txt b/.changelog/12077.txt
new file mode 100644
index 00000000000..76c898b3793
--- /dev/null
+++ b/.changelog/12077.txt
@@ -0,0 +1,3 @@
+```release-note:enhancement
+sql: removed the client-side default of `ENTERPRISE` for `edition` in `google_sql_database_instance` so that `edition` is determined by the API when unset. This will cause new instances to use `ENTERPRISE_PLUS` as the default for POSTGRES_16.
+```
\ No newline at end of file
diff --git a/google/services/sql/resource_sql_database_instance.go b/google/services/sql/resource_sql_database_instance.go
index fc16b917167..c9f03c31c94 100644
--- a/google/services/sql/resource_sql_database_instance.go
+++ b/google/services/sql/resource_sql_database_instance.go
@@ -179,7 +179,7 @@ func ResourceSqlDatabaseInstance() *schema.Resource {
 						"edition": {
 							Type:         schema.TypeString,
 							Optional:     true,
-							Default:      "ENTERPRISE",
+							Computed:     true,
 							ValidateFunc: validation.StringInSlice([]string{"ENTERPRISE", "ENTERPRISE_PLUS"}, false),
 							Description:  `The edition of the instance, can be ENTERPRISE or ENTERPRISE_PLUS.`,
 						},
diff --git a/google/services/sql/resource_sql_database_instance_test.go b/google/services/sql/resource_sql_database_instance_test.go
index 40aee1731fc..01c892b9656 100644
--- a/google/services/sql/resource_sql_database_instance_test.go
+++ b/google/services/sql/resource_sql_database_instance_test.go
@@ -1598,6 +1598,32 @@ func TestAccSQLDatabaseInstance_DenyMaintenancePeriod(t *testing.T) {
 	})
 }
 
+func TestAccSQLDatabaseInstance_DefaultEdition(t *testing.T) {
+	t.Parallel()
+	databaseName := "tf-test-" + acctest.RandString(t, 10)
+	databaseVersion := "POSTGRES_16"
+	enterprisePlusTier := "db-perf-optimized-N-2"
+	acctest.VcrTest(t, resource.TestCase{
+		PreCheck:                 func() { acctest.AccTestPreCheck(t) },
+		ProtoV5ProviderFactories: acctest.ProtoV5ProviderFactories(t),
+		CheckDestroy:             testAccSqlDatabaseInstanceDestroyProducer(t),
+		Steps: []resource.TestStep{
+			{
+				Config: testGoogleSqlDatabaseInstance_DefaultEdition(databaseName, databaseVersion, enterprisePlusTier),
+				Check: resource.ComposeAggregateTestCheckFunc(
+					resource.TestCheckResourceAttr("google_sql_database_instance.instance", "settings.0.edition", "ENTERPRISE_PLUS"),
+				),
+			},
+			{
+				ResourceName:            "google_sql_database_instance.instance",
+				ImportState:             true,
+				ImportStateVerify:       true,
+				ImportStateVerifyIgnore: []string{"deletion_protection"},
+			},
+		},
+	})
+}
+
 func TestAccSqlDatabaseInstance_Edition(t *testing.T) {
 	t.Parallel()
 	enterprisePlusName := "tf-test-enterprise-plus" + acctest.RandString(t, 10)
@@ -1757,7 +1783,7 @@ func TestAccSqlDatabaseInstance_Postgres_Edition_Upgrade(t *testing.T) {
 		CheckDestroy:             testAccSqlDatabaseInstanceDestroyProducer(t),
 		Steps: []resource.TestStep{
 			{
-				Config: testGoogleSqlDatabaseInstance_EditionConfig_noEdition(editionUpgrade, enterpriseTier),
+				Config: testGoogleSqlDatabaseInstance_EditionConfig(editionUpgrade, enterpriseTier, "ENTERPRISE"),
 				Check: resource.ComposeAggregateTestCheckFunc(
 					resource.TestCheckResourceAttr("google_sql_database_instance.instance", "settings.0.edition", "ENTERPRISE"),
 				),
@@ -1807,7 +1833,7 @@ func TestAccSqlDatabaseInstance_Edition_Downgrade(t *testing.T) {
 				ImportStateVerifyIgnore: []string{"deletion_protection"},
 			},
 			{
-				Config: testGoogleSqlDatabaseInstance_EditionConfig_noEdition(editionDowngrade, enterpriseTier),
+				Config: testGoogleSqlDatabaseInstance_EditionConfig(editionDowngrade, enterpriseTier, "ENTERPRISE"),
 				Check: resource.ComposeAggregateTestCheckFunc(
 					resource.TestCheckResourceAttr("google_sql_database_instance.instance", "settings.0.edition", "ENTERPRISE"),
 				),
@@ -2683,6 +2709,19 @@ resource "google_sql_database_instance" "instance" {
 }`, databaseName, endDate, startDate, time)
 }
 
+func testGoogleSqlDatabaseInstance_DefaultEdition(databaseName, databaseVersion, tier string) string {
+	return fmt.Sprintf(`
+resource "google_sql_database_instance" "instance" {
+  name             = "%s"
+  region           = "us-east1"
+  database_version    = "%s"
+  deletion_protection = false
+  settings {
+    tier = "%s"
+  }
+}`, databaseName, databaseVersion, tier)
+}
+
 func testGoogleSqlDatabaseInstance_EditionConfig_noEdition(databaseName, tier string) string {
 	return fmt.Sprintf(`
 
@@ -2693,9 +2732,6 @@ resource "google_sql_database_instance" "instance" {
   deletion_protection = false
   settings {
     tier = "%s"
-     backup_configuration {
-      transaction_log_retention_days = 7
-     }    
   }
 }`, databaseName, tier)
 }
@@ -2711,6 +2747,9 @@ resource "google_sql_database_instance" "instance" {
   settings {
     tier = "%s"
     edition = "%s"
+    backup_configuration {
+	  transaction_log_retention_days = 7
+    }
   }
 }`, databaseName, tier, edition)
 }