diff --git a/docs/resources/vm.md b/docs/resources/vm.md
index 79f46fa..a5d16d5 100644
--- a/docs/resources/vm.md
+++ b/docs/resources/vm.md
@@ -36,7 +36,7 @@ locals {
 }
 
 resource "hypercore_vm" "empty-vm" {
-  group       = "my-group"
+  tags        = ["my-group"]
   name        = "empty-vm"
   description = "some description"
 
@@ -49,7 +49,7 @@ data "hypercore_vms" "clone_source_vm" {
 }
 
 resource "hypercore_vm" "myvm" {
-  group       = "my-group"
+  tags        = ["my-group"]
   name        = local.vm_name
   description = "some description"
 
@@ -71,7 +71,7 @@ resource "hypercore_vm" "myvm" {
 }
 
 resource "hypercore_vm" "import-from-smb" {
-  group       = "my-group"
+  tags        = ["my-group"]
   name        = "imported-vm"
   description = "some description"
 
@@ -104,10 +104,10 @@ output "vm_uuid" {
 - `affinity_strategy` (Object) VM node affinity. (see [below for nested schema](#nestedatt--affinity_strategy))
 - `clone` (Object) Clone options if the VM is being created as a clone. The `source_vm_uuid` is the UUID of the VM used for cloning, <br>`user_data` and `meta_data` are used for the cloud init data. (see [below for nested schema](#nestedatt--clone))
 - `description` (String) Description of this VM
-- `group` (String) Group/tag to create this VM in
 - `import` (Attributes) Options for importing a VM through a SMB server or some other HTTP location. <br>Use server, username, password for SMB or http_uri for some other HTTP location. Parameters path and file_name are always **required** (see [below for nested schema](#nestedatt--import))
 - `memory` (Number) Memory (RAM) size in `MiB`: If the cloned VM was already created <br>and it's memory was modified, the cloned VM will be rebooted (either gracefully or forcefully)
 - `snapshot_schedule_uuid` (String) UUID of the snapshot schedule to create automatic snapshots
+- `tags` (List of String) List of tags to create this VM in
 - `vcpu` (Number) Number of CPUs on this VM. If the cloned VM was already created and it's <br>`VCPU` was modified, the cloned VM will be rebooted (either gracefully or forcefully)
 
 ### Read-Only
diff --git a/examples/resources/hypercore_vm/resource.tf b/examples/resources/hypercore_vm/resource.tf
index 900b614..cc30b8a 100644
--- a/examples/resources/hypercore_vm/resource.tf
+++ b/examples/resources/hypercore_vm/resource.tf
@@ -5,7 +5,7 @@ locals {
 }
 
 resource "hypercore_vm" "empty-vm" {
-  group       = "my-group"
+  tags        = ["my-group"]
   name        = "empty-vm"
   description = "some description"
 
@@ -18,7 +18,7 @@ data "hypercore_vms" "clone_source_vm" {
 }
 
 resource "hypercore_vm" "myvm" {
-  group       = "my-group"
+  tags        = ["my-group"]
   name        = local.vm_name
   description = "some description"
 
@@ -40,7 +40,7 @@ resource "hypercore_vm" "myvm" {
 }
 
 resource "hypercore_vm" "import-from-smb" {
-  group       = "my-group"
+  tags        = ["my-group"]
   name        = "imported-vm"
   description = "some description"
 
diff --git a/internal/provider/hypercore_vm_resource.go b/internal/provider/hypercore_vm_resource.go
index d82da03..9d391d8 100644
--- a/internal/provider/hypercore_vm_resource.go
+++ b/internal/provider/hypercore_vm_resource.go
@@ -8,6 +8,7 @@ import (
 	"fmt"
 	"os"
 	"strconv"
+	"strings"
 	"time"
 
 	"github.com/hashicorp/terraform-plugin-framework/attr"
@@ -39,7 +40,7 @@ type HypercoreVMResource struct {
 
 // HypercoreVMResourceModel describes the resource data model.
 type HypercoreVMResourceModel struct {
-	Group                types.String          `tfsdk:"group"`
+	Tags                 types.List            `tfsdk:"tags"`
 	Name                 types.String          `tfsdk:"name"`
 	Description          types.String          `tfsdk:"description"`
 	VCPU                 types.Int32           `tfsdk:"vcpu"`
@@ -91,8 +92,9 @@ HC_VM_SHUTDOWN_TIMEOUT can be changed via environ.
 The provider will currently try to shutdown VM only before VM delete.`,
 
 		Attributes: map[string]schema.Attribute{
-			"group": schema.StringAttribute{
-				MarkdownDescription: "Group/tag to create this VM in",
+			"tags": schema.ListAttribute{
+				ElementType:         types.StringType,
+				MarkdownDescription: "List of tags to create this VM in",
 				Optional:            true,
 			},
 			"name": schema.StringAttribute{
@@ -240,23 +242,20 @@ func getVMStruct(data *HypercoreVMResourceModel, vmDescription *string, vmTags *
 	return vmStruct
 }
 
-func validateParameters(data *HypercoreVMResourceModel) (*string, *[]string) {
+func validateParameters(data *HypercoreVMResourceModel, ctx context.Context) (*string, *[]string, diag.Diagnostics) {
 	var tags *[]string
 	var description *string
 
-	if data.Group.ValueString() == "" {
-		tags = nil
-	} else {
-		t := []string{data.Group.ValueString()}
-		tags = &t
-	}
+	tflog.Debug(ctx, "TTRT Loading tags")
+	diags := data.Tags.ElementsAs(ctx, &tags, false)
+	tflog.Debug(ctx, fmt.Sprintf("TTRT Tags: %v", tags))
 
 	if data.Description.ValueString() == "" {
 		description = nil
 	} else {
 		description = data.Description.ValueStringPointer()
 	}
-	return description, tags
+	return description, tags, diags
 }
 func isHTTPImport(data *HypercoreVMResourceModel) bool {
 	// Check if HTTP URI is being used for VM import
@@ -285,6 +284,7 @@ func (r *HypercoreVMResource) handleCloneLogic(data *HypercoreVMResourceModel, c
 	data.Id = types.StringValue(vmNew.UUID)
 	tflog.Info(ctx, fmt.Sprintf("Changed: %t, Was VM Rebooted: %t, Diff: %v", changed, vmWasRebooted, vmDiff))
 }
+
 func (r *HypercoreVMResource) handleImportFromSMBLogic(data *HypercoreVMResourceModel, ctx context.Context, resp *resource.CreateResponse, vmNew *utils.VM, path string, fileName string) {
 	smbServer, smbUsername, smbPassword := data.Import.Server.ValueString(), data.Import.Username.ValueString(), data.Import.Password.ValueString()
 	errorDiagnostic := utils.ValidateSMB(smbServer, smbUsername, smbPassword)
@@ -299,6 +299,7 @@ func (r *HypercoreVMResource) handleImportFromSMBLogic(data *HypercoreVMResource
 	data.Id = types.StringValue(vmNew.UUID)
 	tflog.Info(ctx, fmt.Sprintf("Changed: %t, Was VM Rebooted: %t, Diff: %v", changed, vmWasRebooted, vmDiff))
 }
+
 func (r *HypercoreVMResource) handleImportFromURILogic(data *HypercoreVMResourceModel, ctx context.Context, resp *resource.CreateResponse, vmNew *utils.VM, path string, fileName string) {
 	httpUri := data.Import.HTTPUri.ValueString()
 	errorDiagnostic := utils.ValidateHTTP(httpUri, path)
@@ -313,6 +314,7 @@ func (r *HypercoreVMResource) handleImportFromURILogic(data *HypercoreVMResource
 	data.Id = types.StringValue(vmNew.UUID)
 	tflog.Info(ctx, fmt.Sprintf("Changed: %t, Was VM Rebooted: %t, Diff: %v", changed, vmWasRebooted, vmDiff))
 }
+
 func (r *HypercoreVMResource) doCreateLogic(data *HypercoreVMResourceModel, ctx context.Context, resp *resource.CreateResponse, description *string, tags *[]string) {
 	vmNew := getVMStruct(data, description, tags)
 	// Chose which VM create logic we're going with (clone, import, from scratch)
@@ -354,7 +356,11 @@ func (r *HypercoreVMResource) Create(ctx context.Context, req resource.CreateReq
 	}
 
 	// Validate parameters TODO: Add other inputs here from schema if validation is needed
-	description, tags := validateParameters(&data)
+	description, tags, diags := validateParameters(&data, ctx)
+	if diags.HasError() {
+		resp.Diagnostics.Append(diags.Errors()...)
+		return
+	}
 
 	// Right now handles import or clone TODO: Add other VM create options here
 	r.doCreateLogic(&data, ctx, resp, description, tags)
@@ -398,7 +404,23 @@ func (r *HypercoreVMResource) Read(ctx context.Context, req resource.ReadRequest
 
 	data.Name = types.StringValue(utils.AnyToString(hc3_vm["name"]))
 	data.Description = types.StringValue(utils.AnyToString(hc3_vm["description"]))
-	// data.Group TODO - replace "group" string with "tags" list of strings
+
+	// Read tags from the hc3 api
+	//     - hc3Tags = "tag1,tag2,..."
+	//     - tfTags = hc3Tags -> ["tag1", "tag2", ...]
+	hc3Tags := utils.AnyToString(hc3_vm["tags"])
+	goTagsList := strings.Split(hc3Tags, ",")
+	tfTagsValues := make([]attr.Value, len(goTagsList))
+	for i, tag := range goTagsList {
+		tfTagsValues[i] = types.StringValue(tag)
+	}
+
+	var diags diag.Diagnostics
+	data.Tags, diags = types.ListValue(types.StringType, tfTagsValues)
+	if diags.HasError() {
+		resp.Diagnostics.Append(diags.Errors()...)
+		return
+	}
 
 	// NOTE: power state not needed here anymore because of the hypercore_vm_power_state resource
 	// hc3_power_state := utils.AnyToString(hc3_vm["state"])
@@ -494,7 +516,16 @@ func (r *HypercoreVMResource) Update(ctx context.Context, req resource.UpdateReq
 		updatePayload["affinityStrategy"] = affinityStrategy
 	}
 
-	taskTag, _ := restClient.UpdateRecord( /**/
+	// update tags: ["tag1", "tag2", ...] -> "tag1,tag2,..."
+	var tagsList []string
+	diags := data.Tags.ElementsAs(ctx, &tagsList, false)
+	if diags.HasError() {
+		resp.Diagnostics.Append(diags.Errors()...)
+		return
+	}
+	updatePayload["tags"] = utils.TagsListToCommaString(tagsList)
+
+	taskTag, _ := restClient.UpdateRecord(
 		fmt.Sprintf("/rest/v1/VirDomain/%s", vm_uuid),
 		updatePayload,
 		-1,
diff --git a/internal/provider/tests/acceptance/hypercore_vm_resource__snapshot_schedule__acc_test.go b/internal/provider/tests/acceptance/hypercore_vm_resource__snapshot_schedule__acc_test.go
index 14d2a76..7d9d155 100644
--- a/internal/provider/tests/acceptance/hypercore_vm_resource__snapshot_schedule__acc_test.go
+++ b/internal/provider/tests/acceptance/hypercore_vm_resource__snapshot_schedule__acc_test.go
@@ -21,7 +21,8 @@ func TestAccHypercoreVMResourceSnapshotSchedule(t *testing.T) {
 				Check: resource.ComposeAggregateTestCheckFunc(
 					resource.TestCheckResourceAttr("hypercore_vm.test", "description", "testtf-vm-description"),
 					resource.TestCheckResourceAttr("hypercore_vm.test", "memory", "4096"),
-					resource.TestCheckResourceAttr("hypercore_vm.test", "group", "testtf"),
+					resource.TestCheckResourceAttr("hypercore_vm.test", "tags.#", "1"),
+					resource.TestCheckResourceAttr("hypercore_vm.test", "tags.0", "testtf"),
 					resource.TestCheckNoResourceAttr("hypercore_vm.test", "clone"),
 					resource.TestCheckResourceAttr("hypercore_vm.test", "name", "testtf-vm"),
 					resource.TestCheckResourceAttr("hypercore_vm.test", "vcpu", "4"),
@@ -62,7 +63,8 @@ func TestAccHypercoreVMResourceSnapshotSchedule(t *testing.T) {
 				Check: resource.ComposeAggregateTestCheckFunc(
 					resource.TestCheckResourceAttr("hypercore_vm.test", "name", "testtf-vm"),
 					resource.TestCheckResourceAttr("hypercore_vm.test", "description", "testtf-vm-description"),
-					resource.TestCheckResourceAttr("hypercore_vm.test", "group", "testtf"),
+					resource.TestCheckResourceAttr("hypercore_vm.test", "tags.#", "1"),
+					resource.TestCheckResourceAttr("hypercore_vm.test", "tags.1", "testtf"),
 					resource.TestCheckNoResourceAttr("hypercore_vm.test", "clone"),
 					resource.TestCheckResourceAttr("hypercore_vm.test", "vcpu", "4"),
 					resource.TestCheckResourceAttr("hypercore_vm.test", "memory", "4096"),
@@ -92,7 +94,7 @@ func testConfig_NoSnapshotScheduleUUID(vm_name string) string {
 	return fmt.Sprintf(`
 resource "hypercore_vm" "test" {
   name = %[1]q
-  group = "testtf"
+  tags = ["testtf"]
   vcpu = 4
   memory = 4096
   description = "testtf-vm-description"
diff --git a/internal/provider/tests/acceptance/hypercore_vm_resource_clone_acc_test.go b/internal/provider/tests/acceptance/hypercore_vm_resource_clone_acc_test.go
index 163cadd..5777ed5 100644
--- a/internal/provider/tests/acceptance/hypercore_vm_resource_clone_acc_test.go
+++ b/internal/provider/tests/acceptance/hypercore_vm_resource_clone_acc_test.go
@@ -23,7 +23,9 @@ func TestAccHypercoreVMResourceClone(t *testing.T) {
 				Check: resource.ComposeAggregateTestCheckFunc(
 					resource.TestCheckResourceAttr("hypercore_vm.test", "description", "testtf-vm-description"),
 					resource.TestCheckResourceAttr("hypercore_vm.test", "memory", "4096"),
-					resource.TestCheckResourceAttr("hypercore_vm.test", "group", "testtf"),
+					resource.TestCheckResourceAttr("hypercore_vm.test", "tags.#", "2"),
+					resource.TestCheckResourceAttr("hypercore_vm.test", "tags.0", "testtf-tag-1"),
+					resource.TestCheckResourceAttr("hypercore_vm.test", "tags.1", "testtf-tag-2"),
 					resource.TestCheckResourceAttr("hypercore_vm.test", "clone.meta_data", ""),
 					resource.TestCheckResourceAttr("hypercore_vm.test", "clone.user_data", ""),
 					resource.TestCheckResourceAttr("hypercore_vm.test", "clone.source_vm_uuid", source_vm_uuid),
@@ -69,7 +71,9 @@ func TestAccHypercoreVMResourceClone(t *testing.T) {
 				Check: resource.ComposeAggregateTestCheckFunc(
 					resource.TestCheckResourceAttr("hypercore_vm.test", "name", "testtf-vm"),
 					resource.TestCheckResourceAttr("hypercore_vm.test", "description", "testtf-vm-description"),
-					resource.TestCheckResourceAttr("hypercore_vm.test", "group", "testtf"),
+					resource.TestCheckResourceAttr("hypercore_vm.test", "tags.#", "2"),
+					resource.TestCheckResourceAttr("hypercore_vm.test", "tags.0", "testtf-tag-1"),
+					resource.TestCheckResourceAttr("hypercore_vm.test", "tags.1", "testtf-tag-2"),
 					resource.TestCheckResourceAttr("hypercore_vm.test", "vcpu", "4"),
 					resource.TestCheckResourceAttr("hypercore_vm.test", "memory", "4096"),
 					// resource.TestCheckResourceAttr("hypercore_vm.test", "power_state", requested_power_state),
@@ -108,7 +112,10 @@ func testAccHypercoreVMResourceCloneConfig(vm_name string) string {
 	return fmt.Sprintf(`
 resource "hypercore_vm" "test" {
   name = %[1]q
-  group = "testtf"
+  tags = [
+    "testtf-tag-1",
+    "testtf-tag-2",
+  ]
   vcpu = 4
   memory = 4096
   description = "testtf-vm-description"
diff --git a/internal/provider/tests/acceptance/hypercore_vm_resource_import_acc_test.go b/internal/provider/tests/acceptance/hypercore_vm_resource_import_acc_test.go
index 517a051..01613ab 100644
--- a/internal/provider/tests/acceptance/hypercore_vm_resource_import_acc_test.go
+++ b/internal/provider/tests/acceptance/hypercore_vm_resource_import_acc_test.go
@@ -21,7 +21,8 @@ func TestAccHypercoreVMResourceImport(t *testing.T) {
 				Check: resource.ComposeAggregateTestCheckFunc(
 					resource.TestCheckResourceAttr("hypercore_vm.test", "description", "imported-vm"),
 					resource.TestCheckResourceAttr("hypercore_vm.test", "memory", "4096"),
-					resource.TestCheckResourceAttr("hypercore_vm.test", "group", "Xlabintegrationtest"),
+					resource.TestCheckResourceAttr("hypercore_vm.test", "tags.#", "1"),
+					resource.TestCheckResourceAttr("hypercore_vm.test", "tags.0", "Xlabintegrationtest"),
 					resource.TestCheckResourceAttr("hypercore_vm.test", "name", "imported_vm_integration"),
 					resource.TestCheckResourceAttr("hypercore_vm.test", "vcpu", "4"),
 				),
@@ -34,7 +35,7 @@ func testAccHypercoreVMResourceImportConfig(vm_name string) string {
 	return fmt.Sprintf(`
 resource "hypercore_vm" "test" {
   name = %[1]q
-  group = "Xlabintegrationtest"
+  tags = ["Xlabintegrationtest"]
   vcpu = 4
   memory = 4096
   description = "imported-vm"
diff --git a/internal/utils/helper.go b/internal/utils/helper.go
index d9567dd..25057b1 100644
--- a/internal/utils/helper.go
+++ b/internal/utils/helper.go
@@ -106,7 +106,7 @@ func jsonObjectToTaskTag(jsonObj any) *TaskTag {
 	return taskTag
 }
 
-func tagsListToCommaString(tags []string) string {
+func TagsListToCommaString(tags []string) string {
 	tagsHyp := ""
 	for _, tag := range tags {
 		tagsHyp += tag + ","
diff --git a/internal/utils/vm.go b/internal/utils/vm.go
index a1f2633..eabba4d 100644
--- a/internal/utils/vm.go
+++ b/internal/utils/vm.go
@@ -468,7 +468,7 @@ func (vc *VM) BuildUpdatePayload(changedParams map[string]bool) map[string]any {
 		updatePayload["description"] = *vc.description
 	}
 	if changed, ok := changedParams["tags"]; ok && changed {
-		updatePayload["tags"] = tagsListToCommaString(*vc.tags)
+		updatePayload["tags"] = TagsListToCommaString(*vc.tags)
 	}
 	if changed, ok := changedParams["memory"]; ok && changed {
 		vcMemoryBytes := *vc.memory * 1024 * 1024 // MB to B
@@ -505,7 +505,7 @@ func (vc *VM) BuildImportTemplate() map[string]any {
 		importTemplate["description"] = *vc.description
 	}
 	if vc.tags != nil {
-		importTemplate["tags"] = tagsListToCommaString(*vc.tags)
+		importTemplate["tags"] = TagsListToCommaString(*vc.tags)
 	}
 	if vc.memory != nil {
 		vcMemoryBytes := *vc.memory * 1024 * 1024 // MB to B
diff --git a/local/main.tf b/local/main.tf
index 14209ce..b84ebd2 100644
--- a/local/main.tf
+++ b/local/main.tf
@@ -10,38 +10,26 @@ terraform {
 }
 
 locals {
-  vm_name = "testtf-remove-running"
-  src_vm_name = "testtf-src-empty"
+  vm_name     = "testtf-ana-tags-2"
+  src_vm_name = "ana"
 }
 
 provider "hypercore" {}
 
-data "hypercore_vms" "no-such-vm" {
-  name = "no-such-vm"
+data "hypercore_vms" "src_empty" {
+  name = local.src_vm_name
 }
 
-# resource "hypercore_vm" "vm_on" {
-#   group       = "testtf"
-#   name        = local.vm_name
-#   description = "VM created from scratch"
-#   vcpu        = 1
-#   memory      = 1234  # MiB
-
-#   # clone = {
-#   #   source_vm_uuid = data.hypercore_vm.src_empty.vms.0.uuid
-#   #   meta_data = ""
-#   #   user_data = ""
-#   # }
-# }
-
-# resource "hypercore_vm_power_state" "vm_on" {
-#   vm_uuid = hypercore_vm.vm_on.id
-#   state = "SHUTOFF"  // RUNNING SHUTOFF
-# }
-
-# output "vm_on_uuid" {
-#   value = hypercore_vm.vm_on.id
-# }
-# output "power_state" {
-#   value = hypercore_vm_power_state.vm_on.state
-# }
+resource "hypercore_vm" "vm_on" {
+  tags        = ["ana-tftag2"]
+  name        = local.vm_name
+  description = "VM created from scratch"
+  vcpu        = 1
+  memory      = 1234 # MiB
+
+  clone = {
+    source_vm_uuid = data.hypercore_vms.src_empty.vms.0.uuid
+    meta_data      = ""
+    user_data      = ""
+  }
+}