diff --git a/bundle/config/bundle.go b/bundle/config/bundle.go
index 78648dfd..f533c4d1 100644
--- a/bundle/config/bundle.go
+++ b/bundle/config/bundle.go
@@ -38,8 +38,11 @@ type Bundle struct {
 	// Annotated readonly as this should be set at the target level.
 	Mode Mode `json:"mode,omitempty" bundle:"readonly"`
 
-	// Overrides the compute used for jobs and other supported assets.
-	ComputeID string `json:"compute_id,omitempty"`
+	// DEPRECATED: Overrides the compute used for jobs and other supported assets.
+	ComputeId string `json:"compute_id,omitempty"`
+
+	// Overrides the cluster used for jobs and other supported assets.
+	ClusterId string `json:"cluster_id,omitempty"`
 
 	// Deployment section specifies deployment related configuration for bundle
 	Deployment Deployment `json:"deployment,omitempty"`
diff --git a/bundle/config/mutator/apply_presets.go b/bundle/config/mutator/apply_presets.go
index 28d015c1..27af82e5 100644
--- a/bundle/config/mutator/apply_presets.go
+++ b/bundle/config/mutator/apply_presets.go
@@ -160,6 +160,21 @@ func (m *applyPresets) Apply(ctx context.Context, b *bundle.Bundle) diag.Diagnos
 		// the Databricks UI and via the SQL API.
 	}
 
+	// Clusters: Prefix, Tags
+	for _, c := range r.Clusters {
+		c.ClusterName = prefix + c.ClusterName
+		if c.CustomTags == nil {
+			c.CustomTags = make(map[string]string)
+		}
+		for _, tag := range tags {
+			normalisedKey := b.Tagging.NormalizeKey(tag.Key)
+			normalisedValue := b.Tagging.NormalizeValue(tag.Value)
+			if _, ok := c.CustomTags[normalisedKey]; !ok {
+				c.CustomTags[normalisedKey] = normalisedValue
+			}
+		}
+	}
+
 	return nil
 }
 
diff --git a/bundle/config/mutator/compute_id_compat.go b/bundle/config/mutator/compute_id_compat.go
new file mode 100644
index 00000000..3afe02e9
--- /dev/null
+++ b/bundle/config/mutator/compute_id_compat.go
@@ -0,0 +1,87 @@
+package mutator
+
+import (
+	"context"
+
+	"github.com/databricks/cli/bundle"
+	"github.com/databricks/cli/libs/diag"
+	"github.com/databricks/cli/libs/dyn"
+)
+
+type computeIdToClusterId struct{}
+
+func ComputeIdToClusterId() bundle.Mutator {
+	return &computeIdToClusterId{}
+}
+
+func (m *computeIdToClusterId) Name() string {
+	return "ComputeIdToClusterId"
+}
+
+func (m *computeIdToClusterId) Apply(ctx context.Context, b *bundle.Bundle) diag.Diagnostics {
+	var diags diag.Diagnostics
+
+	// The "compute_id" key is set; rewrite it to "cluster_id".
+	err := b.Config.Mutate(func(v dyn.Value) (dyn.Value, error) {
+		v, d := rewriteComputeIdToClusterId(v, dyn.NewPath(dyn.Key("bundle")))
+		diags = diags.Extend(d)
+
+		// Check if the "compute_id" key is set in any target overrides.
+		return dyn.MapByPattern(v, dyn.NewPattern(dyn.Key("targets"), dyn.AnyKey()), func(p dyn.Path, v dyn.Value) (dyn.Value, error) {
+			v, d := rewriteComputeIdToClusterId(v, dyn.Path{})
+			diags = diags.Extend(d)
+			return v, nil
+		})
+	})
+
+	diags = diags.Extend(diag.FromErr(err))
+	return diags
+}
+
+func rewriteComputeIdToClusterId(v dyn.Value, p dyn.Path) (dyn.Value, diag.Diagnostics) {
+	var diags diag.Diagnostics
+	computeIdPath := p.Append(dyn.Key("compute_id"))
+	computeId, err := dyn.GetByPath(v, computeIdPath)
+
+	// If the "compute_id" key is not set, we don't need to do anything.
+	if err != nil {
+		return v, nil
+	}
+
+	if computeId.Kind() == dyn.KindInvalid {
+		return v, nil
+	}
+
+	diags = diags.Append(diag.Diagnostic{
+		Severity:  diag.Warning,
+		Summary:   "compute_id is deprecated, please use cluster_id instead",
+		Locations: computeId.Locations(),
+		Paths:     []dyn.Path{computeIdPath},
+	})
+
+	clusterIdPath := p.Append(dyn.Key("cluster_id"))
+	nv, err := dyn.SetByPath(v, clusterIdPath, computeId)
+	if err != nil {
+		return dyn.InvalidValue, diag.FromErr(err)
+	}
+	// Drop the "compute_id" key.
+	vout, err := dyn.Walk(nv, func(p dyn.Path, v dyn.Value) (dyn.Value, error) {
+		switch len(p) {
+		case 0:
+			return v, nil
+		case 1:
+			if p[0] == dyn.Key("compute_id") {
+				return v, dyn.ErrDrop
+			}
+			return v, nil
+		case 2:
+			if p[1] == dyn.Key("compute_id") {
+				return v, dyn.ErrDrop
+			}
+		}
+		return v, dyn.ErrSkip
+	})
+
+	diags = diags.Extend(diag.FromErr(err))
+	return vout, diags
+}
diff --git a/bundle/config/mutator/compute_id_compate_test.go b/bundle/config/mutator/compute_id_compate_test.go
new file mode 100644
index 00000000..e59d37e3
--- /dev/null
+++ b/bundle/config/mutator/compute_id_compate_test.go
@@ -0,0 +1,57 @@
+package mutator_test
+
+import (
+	"context"
+	"testing"
+
+	"github.com/databricks/cli/bundle"
+	"github.com/databricks/cli/bundle/config"
+	"github.com/databricks/cli/bundle/config/mutator"
+	"github.com/databricks/cli/libs/diag"
+	"github.com/stretchr/testify/assert"
+)
+
+func TestComputeIdToClusterId(t *testing.T) {
+	b := &bundle.Bundle{
+		Config: config.Root{
+			Bundle: config.Bundle{
+				ComputeId: "compute-id",
+			},
+		},
+	}
+
+	diags := bundle.Apply(context.Background(), b, mutator.ComputeIdToClusterId())
+	assert.NoError(t, diags.Error())
+	assert.Equal(t, "compute-id", b.Config.Bundle.ClusterId)
+	assert.Empty(t, b.Config.Bundle.ComputeId)
+
+	assert.Len(t, diags, 1)
+	assert.Equal(t, "compute_id is deprecated, please use cluster_id instead", diags[0].Summary)
+	assert.Equal(t, diag.Warning, diags[0].Severity)
+}
+
+func TestComputeIdToClusterIdInTargetOverride(t *testing.T) {
+	b := &bundle.Bundle{
+		Config: config.Root{
+			Targets: map[string]*config.Target{
+				"dev": {
+					ComputeId: "compute-id-dev",
+				},
+			},
+		},
+	}
+
+	diags := bundle.Apply(context.Background(), b, mutator.ComputeIdToClusterId())
+	assert.NoError(t, diags.Error())
+	assert.Empty(t, b.Config.Targets["dev"].ComputeId)
+
+	diags = diags.Extend(bundle.Apply(context.Background(), b, mutator.SelectTarget("dev")))
+	assert.NoError(t, diags.Error())
+
+	assert.Equal(t, "compute-id-dev", b.Config.Bundle.ClusterId)
+	assert.Empty(t, b.Config.Bundle.ComputeId)
+
+	assert.Len(t, diags, 1)
+	assert.Equal(t, "compute_id is deprecated, please use cluster_id instead", diags[0].Summary)
+	assert.Equal(t, diag.Warning, diags[0].Severity)
+}
diff --git a/bundle/config/mutator/mutator.go b/bundle/config/mutator/mutator.go
index 0458beff..faf50ae6 100644
--- a/bundle/config/mutator/mutator.go
+++ b/bundle/config/mutator/mutator.go
@@ -23,6 +23,7 @@ func DefaultMutators() []bundle.Mutator {
 		VerifyCliVersion(),
 
 		EnvironmentsToTargets(),
+		ComputeIdToClusterId(),
 		InitializeVariables(),
 		DefineDefaultTarget(),
 		LoadGitDetails(),
diff --git a/bundle/config/mutator/override_compute.go b/bundle/config/mutator/override_compute.go
index 73fbad36..5700cdf2 100644
--- a/bundle/config/mutator/override_compute.go
+++ b/bundle/config/mutator/override_compute.go
@@ -39,22 +39,22 @@ func overrideJobCompute(j *resources.Job, compute string) {
 
 func (m *overrideCompute) Apply(ctx context.Context, b *bundle.Bundle) diag.Diagnostics {
 	if b.Config.Bundle.Mode != config.Development {
-		if b.Config.Bundle.ComputeID != "" {
+		if b.Config.Bundle.ClusterId != "" {
 			return diag.Errorf("cannot override compute for an target that does not use 'mode: development'")
 		}
 		return nil
 	}
 	if v := env.Get(ctx, "DATABRICKS_CLUSTER_ID"); v != "" {
-		b.Config.Bundle.ComputeID = v
+		b.Config.Bundle.ClusterId = v
 	}
 
-	if b.Config.Bundle.ComputeID == "" {
+	if b.Config.Bundle.ClusterId == "" {
 		return nil
 	}
 
 	r := b.Config.Resources
 	for i := range r.Jobs {
-		overrideJobCompute(r.Jobs[i], b.Config.Bundle.ComputeID)
+		overrideJobCompute(r.Jobs[i], b.Config.Bundle.ClusterId)
 	}
 
 	return nil
diff --git a/bundle/config/mutator/override_compute_test.go b/bundle/config/mutator/override_compute_test.go
index 152ee543..369447d7 100644
--- a/bundle/config/mutator/override_compute_test.go
+++ b/bundle/config/mutator/override_compute_test.go
@@ -20,7 +20,7 @@ func TestOverrideDevelopment(t *testing.T) {
 		Config: config.Root{
 			Bundle: config.Bundle{
 				Mode:      config.Development,
-				ComputeID: "newClusterID",
+				ClusterId: "newClusterID",
 			},
 			Resources: config.Resources{
 				Jobs: map[string]*resources.Job{
@@ -144,7 +144,7 @@ func TestOverrideProduction(t *testing.T) {
 	b := &bundle.Bundle{
 		Config: config.Root{
 			Bundle: config.Bundle{
-				ComputeID: "newClusterID",
+				ClusterId: "newClusterID",
 			},
 			Resources: config.Resources{
 				Jobs: map[string]*resources.Job{
diff --git a/bundle/config/mutator/process_target_mode_test.go b/bundle/config/mutator/process_target_mode_test.go
index 42f1929c..b0eb57ee 100644
--- a/bundle/config/mutator/process_target_mode_test.go
+++ b/bundle/config/mutator/process_target_mode_test.go
@@ -13,6 +13,7 @@ import (
 	"github.com/databricks/cli/libs/tags"
 	sdkconfig "github.com/databricks/databricks-sdk-go/config"
 	"github.com/databricks/databricks-sdk-go/service/catalog"
+	"github.com/databricks/databricks-sdk-go/service/compute"
 	"github.com/databricks/databricks-sdk-go/service/iam"
 	"github.com/databricks/databricks-sdk-go/service/jobs"
 	"github.com/databricks/databricks-sdk-go/service/ml"
@@ -119,6 +120,9 @@ func mockBundle(mode config.Mode) *bundle.Bundle {
 				Schemas: map[string]*resources.Schema{
 					"schema1": {CreateSchema: &catalog.CreateSchema{Name: "schema1"}},
 				},
+				Clusters: map[string]*resources.Cluster{
+					"cluster1": {ClusterSpec: &compute.ClusterSpec{ClusterName: "cluster1", SparkVersion: "13.2.x", NumWorkers: 1}},
+				},
 			},
 		},
 		// Use AWS implementation for testing.
@@ -177,6 +181,9 @@ func TestProcessTargetModeDevelopment(t *testing.T) {
 
 	// Schema 1
 	assert.Equal(t, "dev_lennart_schema1", b.Config.Resources.Schemas["schema1"].Name)
+
+	// Clusters
+	assert.Equal(t, "[dev lennart] cluster1", b.Config.Resources.Clusters["cluster1"].ClusterName)
 }
 
 func TestProcessTargetModeDevelopmentTagNormalizationForAws(t *testing.T) {
@@ -281,6 +288,7 @@ func TestProcessTargetModeDefault(t *testing.T) {
 	assert.Equal(t, "servingendpoint1", b.Config.Resources.ModelServingEndpoints["servingendpoint1"].Name)
 	assert.Equal(t, "registeredmodel1", b.Config.Resources.RegisteredModels["registeredmodel1"].Name)
 	assert.Equal(t, "qualityMonitor1", b.Config.Resources.QualityMonitors["qualityMonitor1"].TableName)
+	assert.Equal(t, "cluster1", b.Config.Resources.Clusters["cluster1"].ClusterName)
 }
 
 func TestProcessTargetModeProduction(t *testing.T) {
@@ -312,6 +320,7 @@ func TestProcessTargetModeProduction(t *testing.T) {
 	b.Config.Resources.Experiments["experiment2"].Permissions = permissions
 	b.Config.Resources.Models["model1"].Permissions = permissions
 	b.Config.Resources.ModelServingEndpoints["servingendpoint1"].Permissions = permissions
+	b.Config.Resources.Clusters["cluster1"].Permissions = permissions
 
 	diags = validateProductionMode(context.Background(), b, false)
 	require.NoError(t, diags.Error())
@@ -322,6 +331,7 @@ func TestProcessTargetModeProduction(t *testing.T) {
 	assert.Equal(t, "servingendpoint1", b.Config.Resources.ModelServingEndpoints["servingendpoint1"].Name)
 	assert.Equal(t, "registeredmodel1", b.Config.Resources.RegisteredModels["registeredmodel1"].Name)
 	assert.Equal(t, "qualityMonitor1", b.Config.Resources.QualityMonitors["qualityMonitor1"].TableName)
+	assert.Equal(t, "cluster1", b.Config.Resources.Clusters["cluster1"].ClusterName)
 }
 
 func TestProcessTargetModeProductionOkForPrincipal(t *testing.T) {
diff --git a/bundle/config/mutator/run_as_test.go b/bundle/config/mutator/run_as_test.go
index e6cef9ba..abeea45d 100644
--- a/bundle/config/mutator/run_as_test.go
+++ b/bundle/config/mutator/run_as_test.go
@@ -32,6 +32,7 @@ func allResourceTypes(t *testing.T) []string {
 	// the dyn library gives us the correct list of all resources supported. Please
 	// also update this check when adding a new resource
 	require.Equal(t, []string{
+		"clusters",
 		"experiments",
 		"jobs",
 		"model_serving_endpoints",
@@ -133,6 +134,7 @@ func TestRunAsErrorForUnsupportedResources(t *testing.T) {
 	// some point in the future. These resources are (implicitly) on the deny list, since
 	// they are not on the allow list below.
 	allowList := []string{
+		"clusters",
 		"jobs",
 		"models",
 		"registered_models",
diff --git a/bundle/config/resources.go b/bundle/config/resources.go
index 22d69ffb..a3afb7fc 100644
--- a/bundle/config/resources.go
+++ b/bundle/config/resources.go
@@ -19,6 +19,7 @@ type Resources struct {
 	RegisteredModels      map[string]*resources.RegisteredModel      `json:"registered_models,omitempty"`
 	QualityMonitors       map[string]*resources.QualityMonitor       `json:"quality_monitors,omitempty"`
 	Schemas               map[string]*resources.Schema               `json:"schemas,omitempty"`
+	Clusters              map[string]*resources.Cluster              `json:"clusters,omitempty"`
 }
 
 type ConfigResource interface {
diff --git a/bundle/config/resources/clusters.go b/bundle/config/resources/clusters.go
new file mode 100644
index 00000000..63234566
--- /dev/null
+++ b/bundle/config/resources/clusters.go
@@ -0,0 +1,39 @@
+package resources
+
+import (
+	"context"
+
+	"github.com/databricks/cli/libs/log"
+	"github.com/databricks/databricks-sdk-go"
+	"github.com/databricks/databricks-sdk-go/marshal"
+	"github.com/databricks/databricks-sdk-go/service/compute"
+)
+
+type Cluster struct {
+	ID             string         `json:"id,omitempty" bundle:"readonly"`
+	Permissions    []Permission   `json:"permissions,omitempty"`
+	ModifiedStatus ModifiedStatus `json:"modified_status,omitempty" bundle:"internal"`
+
+	*compute.ClusterSpec
+}
+
+func (s *Cluster) UnmarshalJSON(b []byte) error {
+	return marshal.Unmarshal(b, s)
+}
+
+func (s Cluster) MarshalJSON() ([]byte, error) {
+	return marshal.Marshal(s)
+}
+
+func (s *Cluster) Exists(ctx context.Context, w *databricks.WorkspaceClient, id string) (bool, error) {
+	_, err := w.Clusters.GetByClusterId(ctx, id)
+	if err != nil {
+		log.Debugf(ctx, "cluster %s does not exist", id)
+		return false, err
+	}
+	return true, nil
+}
+
+func (s *Cluster) TerraformResourceName() string {
+	return "databricks_cluster"
+}
diff --git a/bundle/config/root.go b/bundle/config/root.go
index 884c2e1c..92d834f0 100644
--- a/bundle/config/root.go
+++ b/bundle/config/root.go
@@ -366,9 +366,9 @@ func (r *Root) MergeTargetOverrides(name string) error {
 		}
 	}
 
-	// Merge `compute_id`. This field must be overwritten if set, not merged.
-	if v := target.Get("compute_id"); v.Kind() != dyn.KindInvalid {
-		root, err = dyn.SetByPath(root, dyn.NewPath(dyn.Key("bundle"), dyn.Key("compute_id")), v)
+	// Merge `cluster_id`. This field must be overwritten if set, not merged.
+	if v := target.Get("cluster_id"); v.Kind() != dyn.KindInvalid {
+		root, err = dyn.SetByPath(root, dyn.NewPath(dyn.Key("bundle"), dyn.Key("cluster_id")), v)
 		if err != nil {
 			return err
 		}
diff --git a/bundle/config/target.go b/bundle/config/target.go
index fc6ba7b5..fae9c940 100644
--- a/bundle/config/target.go
+++ b/bundle/config/target.go
@@ -24,8 +24,11 @@ type Target struct {
 	// name prefix of deployed resources.
 	Presets Presets `json:"presets,omitempty"`
 
-	// Overrides the compute used for jobs and other supported assets.
-	ComputeID string `json:"compute_id,omitempty"`
+	// DEPRECATED: Overrides the compute used for jobs and other supported assets.
+	ComputeId string `json:"compute_id,omitempty"`
+
+	// Overrides the cluster used for jobs and other supported assets.
+	ClusterId string `json:"cluster_id,omitempty"`
 
 	Bundle *Bundle `json:"bundle,omitempty"`
 
diff --git a/bundle/deploy/files/upload.go b/bundle/deploy/files/upload.go
index 2c126623..77b83611 100644
--- a/bundle/deploy/files/upload.go
+++ b/bundle/deploy/files/upload.go
@@ -8,9 +8,12 @@ import (
 	"github.com/databricks/cli/libs/cmdio"
 	"github.com/databricks/cli/libs/diag"
 	"github.com/databricks/cli/libs/log"
+	"github.com/databricks/cli/libs/sync"
 )
 
-type upload struct{}
+type upload struct {
+	outputHandler sync.OutputHandler
+}
 
 func (m *upload) Name() string {
 	return "files.Upload"
@@ -18,11 +21,18 @@ func (m *upload) Name() string {
 
 func (m *upload) Apply(ctx context.Context, b *bundle.Bundle) diag.Diagnostics {
 	cmdio.LogString(ctx, fmt.Sprintf("Uploading bundle files to %s...", b.Config.Workspace.FilePath))
-	sync, err := GetSync(ctx, bundle.ReadOnly(b))
+	opts, err := GetSyncOptions(ctx, bundle.ReadOnly(b))
 	if err != nil {
 		return diag.FromErr(err)
 	}
 
+	opts.OutputHandler = m.outputHandler
+	sync, err := sync.New(ctx, *opts)
+	if err != nil {
+		return diag.FromErr(err)
+	}
+	defer sync.Close()
+
 	b.Files, err = sync.RunOnce(ctx)
 	if err != nil {
 		return diag.FromErr(err)
@@ -32,6 +42,6 @@ func (m *upload) Apply(ctx context.Context, b *bundle.Bundle) diag.Diagnostics {
 	return nil
 }
 
-func Upload() bundle.Mutator {
-	return &upload{}
+func Upload(outputHandler sync.OutputHandler) bundle.Mutator {
+	return &upload{outputHandler}
 }
diff --git a/bundle/deploy/terraform/convert.go b/bundle/deploy/terraform/convert.go
index f13c241c..5a548e3b 100644
--- a/bundle/deploy/terraform/convert.go
+++ b/bundle/deploy/terraform/convert.go
@@ -231,6 +231,13 @@ func BundleToTerraform(config *config.Root) *schema.Root {
 		tfroot.Resource.QualityMonitor[k] = &dst
 	}
 
+	for k, src := range config.Resources.Clusters {
+		noResources = false
+		var dst schema.ResourceCluster
+		conv(src, &dst)
+		tfroot.Resource.Cluster[k] = &dst
+	}
+
 	// We explicitly set "resource" to nil to omit it from a JSON encoding.
 	// This is required because the terraform CLI requires >= 1 resources defined
 	// if the "resource" property is used in a .tf.json file.
@@ -394,6 +401,16 @@ func TerraformToBundle(state *resourcesState, config *config.Root) error {
 				}
 				cur.ID = instance.Attributes.ID
 				config.Resources.Schemas[resource.Name] = cur
+			case "databricks_cluster":
+				if config.Resources.Clusters == nil {
+					config.Resources.Clusters = make(map[string]*resources.Cluster)
+				}
+				cur := config.Resources.Clusters[resource.Name]
+				if cur == nil {
+					cur = &resources.Cluster{ModifiedStatus: resources.ModifiedStatusDeleted}
+				}
+				cur.ID = instance.Attributes.ID
+				config.Resources.Clusters[resource.Name] = cur
 			case "databricks_permissions":
 			case "databricks_grants":
 				// Ignore; no need to pull these back into the configuration.
@@ -443,6 +460,11 @@ func TerraformToBundle(state *resourcesState, config *config.Root) error {
 			src.ModifiedStatus = resources.ModifiedStatusCreated
 		}
 	}
+	for _, src := range config.Resources.Clusters {
+		if src.ModifiedStatus == "" && src.ID == "" {
+			src.ModifiedStatus = resources.ModifiedStatusCreated
+		}
+	}
 
 	return nil
 }
diff --git a/bundle/deploy/terraform/convert_test.go b/bundle/deploy/terraform/convert_test.go
index e4ef6114..4c6866d9 100644
--- a/bundle/deploy/terraform/convert_test.go
+++ b/bundle/deploy/terraform/convert_test.go
@@ -663,6 +663,14 @@ func TestTerraformToBundleEmptyLocalResources(t *testing.T) {
 					{Attributes: stateInstanceAttributes{ID: "1"}},
 				},
 			},
+			{
+				Type: "databricks_cluster",
+				Mode: "managed",
+				Name: "test_cluster",
+				Instances: []stateResourceInstance{
+					{Attributes: stateInstanceAttributes{ID: "1"}},
+				},
+			},
 		},
 	}
 	err := TerraformToBundle(&tfState, &config)
@@ -692,6 +700,9 @@ func TestTerraformToBundleEmptyLocalResources(t *testing.T) {
 	assert.Equal(t, "1", config.Resources.Schemas["test_schema"].ID)
 	assert.Equal(t, resources.ModifiedStatusDeleted, config.Resources.Schemas["test_schema"].ModifiedStatus)
 
+	assert.Equal(t, "1", config.Resources.Clusters["test_cluster"].ID)
+	assert.Equal(t, resources.ModifiedStatusDeleted, config.Resources.Clusters["test_cluster"].ModifiedStatus)
+
 	AssertFullResourceCoverage(t, &config)
 }
 
@@ -754,6 +765,13 @@ func TestTerraformToBundleEmptyRemoteResources(t *testing.T) {
 					},
 				},
 			},
+			Clusters: map[string]*resources.Cluster{
+				"test_cluster": {
+					ClusterSpec: &compute.ClusterSpec{
+						ClusterName: "test_cluster",
+					},
+				},
+			},
 		},
 	}
 	var tfState = resourcesState{
@@ -786,6 +804,9 @@ func TestTerraformToBundleEmptyRemoteResources(t *testing.T) {
 	assert.Equal(t, "", config.Resources.Schemas["test_schema"].ID)
 	assert.Equal(t, resources.ModifiedStatusCreated, config.Resources.Schemas["test_schema"].ModifiedStatus)
 
+	assert.Equal(t, "", config.Resources.Clusters["test_cluster"].ID)
+	assert.Equal(t, resources.ModifiedStatusCreated, config.Resources.Clusters["test_cluster"].ModifiedStatus)
+
 	AssertFullResourceCoverage(t, &config)
 }
 
@@ -888,6 +909,18 @@ func TestTerraformToBundleModifiedResources(t *testing.T) {
 					},
 				},
 			},
+			Clusters: map[string]*resources.Cluster{
+				"test_cluster": {
+					ClusterSpec: &compute.ClusterSpec{
+						ClusterName: "test_cluster",
+					},
+				},
+				"test_cluster_new": {
+					ClusterSpec: &compute.ClusterSpec{
+						ClusterName: "test_cluster_new",
+					},
+				},
+			},
 		},
 	}
 	var tfState = resourcesState{
@@ -1020,6 +1053,22 @@ func TestTerraformToBundleModifiedResources(t *testing.T) {
 					{Attributes: stateInstanceAttributes{ID: "2"}},
 				},
 			},
+			{
+				Type: "databricks_cluster",
+				Mode: "managed",
+				Name: "test_cluster",
+				Instances: []stateResourceInstance{
+					{Attributes: stateInstanceAttributes{ID: "1"}},
+				},
+			},
+			{
+				Type: "databricks_cluster",
+				Mode: "managed",
+				Name: "test_cluster_old",
+				Instances: []stateResourceInstance{
+					{Attributes: stateInstanceAttributes{ID: "2"}},
+				},
+			},
 		},
 	}
 	err := TerraformToBundle(&tfState, &config)
@@ -1081,6 +1130,13 @@ func TestTerraformToBundleModifiedResources(t *testing.T) {
 	assert.Equal(t, "", config.Resources.Schemas["test_schema_new"].ID)
 	assert.Equal(t, resources.ModifiedStatusCreated, config.Resources.Schemas["test_schema_new"].ModifiedStatus)
 
+	assert.Equal(t, "1", config.Resources.Clusters["test_cluster"].ID)
+	assert.Equal(t, "", config.Resources.Clusters["test_cluster"].ModifiedStatus)
+	assert.Equal(t, "2", config.Resources.Clusters["test_cluster_old"].ID)
+	assert.Equal(t, resources.ModifiedStatusDeleted, config.Resources.Clusters["test_cluster_old"].ModifiedStatus)
+	assert.Equal(t, "", config.Resources.Clusters["test_cluster_new"].ID)
+	assert.Equal(t, resources.ModifiedStatusCreated, config.Resources.Clusters["test_cluster_new"].ModifiedStatus)
+
 	AssertFullResourceCoverage(t, &config)
 }
 
diff --git a/bundle/deploy/terraform/interpolate.go b/bundle/deploy/terraform/interpolate.go
index faa098e1..12894c68 100644
--- a/bundle/deploy/terraform/interpolate.go
+++ b/bundle/deploy/terraform/interpolate.go
@@ -58,6 +58,8 @@ func (m *interpolateMutator) Apply(ctx context.Context, b *bundle.Bundle) diag.D
 				path = dyn.NewPath(dyn.Key("databricks_quality_monitor")).Append(path[2:]...)
 			case dyn.Key("schemas"):
 				path = dyn.NewPath(dyn.Key("databricks_schema")).Append(path[2:]...)
+			case dyn.Key("clusters"):
+				path = dyn.NewPath(dyn.Key("databricks_cluster")).Append(path[2:]...)
 			default:
 				// Trigger "key not found" for unknown resource types.
 				return dyn.GetByPath(root, path)
diff --git a/bundle/deploy/terraform/interpolate_test.go b/bundle/deploy/terraform/interpolate_test.go
index 5ceb243b..630a904a 100644
--- a/bundle/deploy/terraform/interpolate_test.go
+++ b/bundle/deploy/terraform/interpolate_test.go
@@ -31,6 +31,7 @@ func TestInterpolate(t *testing.T) {
 								"other_model_serving":    "${resources.model_serving_endpoints.other_model_serving.id}",
 								"other_registered_model": "${resources.registered_models.other_registered_model.id}",
 								"other_schema":           "${resources.schemas.other_schema.id}",
+								"other_cluster":          "${resources.clusters.other_cluster.id}",
 							},
 							Tasks: []jobs.Task{
 								{
@@ -67,6 +68,7 @@ func TestInterpolate(t *testing.T) {
 	assert.Equal(t, "${databricks_model_serving.other_model_serving.id}", j.Tags["other_model_serving"])
 	assert.Equal(t, "${databricks_registered_model.other_registered_model.id}", j.Tags["other_registered_model"])
 	assert.Equal(t, "${databricks_schema.other_schema.id}", j.Tags["other_schema"])
+	assert.Equal(t, "${databricks_cluster.other_cluster.id}", j.Tags["other_cluster"])
 
 	m := b.Config.Resources.Models["my_model"]
 	assert.Equal(t, "my_model", m.Model.Name)
diff --git a/bundle/deploy/terraform/tfdyn/convert_cluster.go b/bundle/deploy/terraform/tfdyn/convert_cluster.go
new file mode 100644
index 00000000..f25f09ea
--- /dev/null
+++ b/bundle/deploy/terraform/tfdyn/convert_cluster.go
@@ -0,0 +1,52 @@
+package tfdyn
+
+import (
+	"context"
+	"fmt"
+
+	"github.com/databricks/cli/bundle/internal/tf/schema"
+	"github.com/databricks/cli/libs/dyn"
+	"github.com/databricks/cli/libs/dyn/convert"
+	"github.com/databricks/cli/libs/log"
+	"github.com/databricks/databricks-sdk-go/service/compute"
+)
+
+func convertClusterResource(ctx context.Context, vin dyn.Value) (dyn.Value, error) {
+	// Normalize the output value to the target schema.
+	vout, diags := convert.Normalize(compute.ClusterSpec{}, vin)
+	for _, diag := range diags {
+		log.Debugf(ctx, "cluster normalization diagnostic: %s", diag.Summary)
+	}
+
+	return vout, nil
+}
+
+type clusterConverter struct{}
+
+func (clusterConverter) Convert(ctx context.Context, key string, vin dyn.Value, out *schema.Resources) error {
+	vout, err := convertClusterResource(ctx, vin)
+	if err != nil {
+		return err
+	}
+
+	// We always set no_wait as it allows DABs not to wait for cluster to be started.
+	vout, err = dyn.Set(vout, "no_wait", dyn.V(true))
+	if err != nil {
+		return err
+	}
+
+	// Add the converted resource to the output.
+	out.Cluster[key] = vout.AsAny()
+
+	// Configure permissions for this resource.
+	if permissions := convertPermissionsResource(ctx, vin); permissions != nil {
+		permissions.JobId = fmt.Sprintf("${databricks_cluster.%s.id}", key)
+		out.Permissions["cluster_"+key] = permissions
+	}
+
+	return nil
+}
+
+func init() {
+	registerConverter("clusters", clusterConverter{})
+}
diff --git a/bundle/deploy/terraform/tfdyn/convert_cluster_test.go b/bundle/deploy/terraform/tfdyn/convert_cluster_test.go
new file mode 100644
index 00000000..e7d2542f
--- /dev/null
+++ b/bundle/deploy/terraform/tfdyn/convert_cluster_test.go
@@ -0,0 +1,97 @@
+package tfdyn
+
+import (
+	"context"
+	"testing"
+
+	"github.com/databricks/cli/bundle/config/resources"
+	"github.com/databricks/cli/bundle/internal/tf/schema"
+	"github.com/databricks/cli/libs/dyn"
+	"github.com/databricks/cli/libs/dyn/convert"
+	"github.com/databricks/databricks-sdk-go/service/compute"
+	"github.com/stretchr/testify/assert"
+	"github.com/stretchr/testify/require"
+)
+
+func TestConvertCluster(t *testing.T) {
+	var src = resources.Cluster{
+		ClusterSpec: &compute.ClusterSpec{
+			NumWorkers:   3,
+			SparkVersion: "13.3.x-scala2.12",
+			ClusterName:  "cluster",
+			SparkConf: map[string]string{
+				"spark.executor.memory": "2g",
+			},
+			AwsAttributes: &compute.AwsAttributes{
+				Availability: "ON_DEMAND",
+			},
+			AzureAttributes: &compute.AzureAttributes{
+				Availability: "SPOT",
+			},
+			DataSecurityMode: "USER_ISOLATION",
+			NodeTypeId:       "m5.xlarge",
+			Autoscale: &compute.AutoScale{
+				MinWorkers: 1,
+				MaxWorkers: 10,
+			},
+		},
+
+		Permissions: []resources.Permission{
+			{
+				Level:    "CAN_RUN",
+				UserName: "jack@gmail.com",
+			},
+			{
+				Level:                "CAN_MANAGE",
+				ServicePrincipalName: "sp",
+			},
+		},
+	}
+
+	vin, err := convert.FromTyped(src, dyn.NilValue)
+	require.NoError(t, err)
+
+	ctx := context.Background()
+	out := schema.NewResources()
+	err = clusterConverter{}.Convert(ctx, "my_cluster", vin, out)
+	require.NoError(t, err)
+
+	cluster := out.Cluster["my_cluster"]
+	assert.Equal(t, map[string]any{
+		"num_workers":   int64(3),
+		"spark_version": "13.3.x-scala2.12",
+		"cluster_name":  "cluster",
+		"spark_conf": map[string]any{
+			"spark.executor.memory": "2g",
+		},
+		"aws_attributes": map[string]any{
+			"availability": "ON_DEMAND",
+		},
+		"azure_attributes": map[string]any{
+			"availability": "SPOT",
+		},
+		"data_security_mode": "USER_ISOLATION",
+		"no_wait":            true,
+		"node_type_id":       "m5.xlarge",
+		"autoscale": map[string]any{
+			"min_workers": int64(1),
+			"max_workers": int64(10),
+		},
+	}, cluster)
+
+	// Assert equality on the permissions
+	assert.Equal(t, &schema.ResourcePermissions{
+		JobId: "${databricks_cluster.my_cluster.id}",
+		AccessControl: []schema.ResourcePermissionsAccessControl{
+			{
+				PermissionLevel: "CAN_RUN",
+				UserName:        "jack@gmail.com",
+			},
+			{
+				PermissionLevel:      "CAN_MANAGE",
+				ServicePrincipalName: "sp",
+			},
+		},
+	}, out.Permissions["cluster_my_cluster"])
+
+}
diff --git a/bundle/phases/deploy.go b/bundle/phases/deploy.go
index 49544227..097c561e 100644
--- a/bundle/phases/deploy.go
+++ b/bundle/phases/deploy.go
@@ -18,6 +18,7 @@ import (
 	"github.com/databricks/cli/bundle/python"
 	"github.com/databricks/cli/bundle/scripts"
 	"github.com/databricks/cli/libs/cmdio"
+	"github.com/databricks/cli/libs/sync"
 	terraformlib "github.com/databricks/cli/libs/terraform"
 	tfjson "github.com/hashicorp/terraform-json"
 )
@@ -128,7 +129,7 @@ properties such as the 'catalog' or 'storage' are changed:`
 }
 
 // The deploy phase deploys artifacts and resources.
-func Deploy() bundle.Mutator {
+func Deploy(outputHandler sync.OutputHandler) bundle.Mutator {
 	// Core mutators that CRUD resources and modify deployment state. These
 	// mutators need informed consent if they are potentially destructive.
 	deployCore := bundle.Defer(
@@ -157,7 +158,7 @@ func Deploy() bundle.Mutator {
 				libraries.ExpandGlobReferences(),
 				libraries.Upload(),
 				python.TransformWheelTask(),
-				files.Upload(),
+				files.Upload(outputHandler),
 				deploy.StateUpdate(),
 				deploy.StatePush(),
 				permissions.ApplyWorkspaceRootPermissions(),
diff --git a/bundle/tests/clusters/databricks.yml b/bundle/tests/clusters/databricks.yml
new file mode 100644
index 00000000..1074462a
--- /dev/null
+++ b/bundle/tests/clusters/databricks.yml
@@ -0,0 +1,36 @@
+bundle:
+  name: clusters
+
+workspace:
+  host: https://acme.cloud.databricks.com/
+
+resources:
+  clusters:
+    foo:
+      cluster_name: foo
+      num_workers: 2
+      node_type_id: "i3.xlarge"
+      autoscale:
+        min_workers: 2
+        max_workers: 7
+      spark_version: "13.3.x-scala2.12"
+      spark_conf:
+        "spark.executor.memory": "2g"
+
+targets:
+  default:
+
+  development:
+    resources:
+      clusters:
+        foo:
+          cluster_name: foo-override
+          num_workers: 3
+          node_type_id: "m5.xlarge"
+          autoscale:
+            min_workers: 1
+            max_workers: 3
+          spark_version: "15.2.x-scala2.12"
+          spark_conf:
+            "spark.executor.memory": "4g"
+            "spark.executor.memory2": "4g"
diff --git a/bundle/tests/clusters_test.go b/bundle/tests/clusters_test.go
new file mode 100644
index 00000000..def8a2a3
--- /dev/null
+++ b/bundle/tests/clusters_test.go
@@ -0,0 +1,36 @@
+package config_tests
+
+import (
+	"testing"
+
+	"github.com/stretchr/testify/assert"
+)
+
+func TestClusters(t *testing.T) {
+	b := load(t, "./clusters")
+	assert.Equal(t, "clusters", b.Config.Bundle.Name)
+
+	cluster := b.Config.Resources.Clusters["foo"]
+	assert.Equal(t, "foo", cluster.ClusterName)
+	assert.Equal(t, "13.3.x-scala2.12", cluster.SparkVersion)
+	assert.Equal(t, "i3.xlarge", cluster.NodeTypeId)
+	assert.Equal(t, 2, cluster.NumWorkers)
+	assert.Equal(t, "2g", cluster.SparkConf["spark.executor.memory"])
+	assert.Equal(t, 2, cluster.Autoscale.MinWorkers)
+	assert.Equal(t, 7, cluster.Autoscale.MaxWorkers)
+}
+
+func TestClustersOverride(t *testing.T) {
+	b := loadTarget(t, "./clusters", "development")
+	assert.Equal(t, "clusters", b.Config.Bundle.Name)
+
+	cluster := b.Config.Resources.Clusters["foo"]
+	assert.Equal(t, "foo-override", cluster.ClusterName)
+	assert.Equal(t, "15.2.x-scala2.12", cluster.SparkVersion)
+	assert.Equal(t, "m5.xlarge", cluster.NodeTypeId)
+	assert.Equal(t, 3, cluster.NumWorkers)
+	assert.Equal(t, "4g", cluster.SparkConf["spark.executor.memory"])
+	assert.Equal(t, "4g", cluster.SparkConf["spark.executor.memory2"])
+	assert.Equal(t, 1, cluster.Autoscale.MinWorkers)
+	assert.Equal(t, 3, cluster.Autoscale.MaxWorkers)
+}
diff --git a/cmd/bundle/deploy.go b/cmd/bundle/deploy.go
index 1166875a..f1c85cb3 100644
--- a/cmd/bundle/deploy.go
+++ b/cmd/bundle/deploy.go
@@ -10,6 +10,7 @@ import (
 	"github.com/databricks/cli/cmd/bundle/utils"
 	"github.com/databricks/cli/cmd/root"
 	"github.com/databricks/cli/libs/diag"
+	"github.com/databricks/cli/libs/sync"
 	"github.com/spf13/cobra"
 )
 
@@ -23,13 +24,19 @@ func newDeployCommand() *cobra.Command {
 	var force bool
 	var forceLock bool
 	var failOnActiveRuns bool
-	var computeID string
+	var clusterId string
 	var autoApprove bool
+	var verbose bool
 	cmd.Flags().BoolVar(&force, "force", false, "Force-override Git branch validation.")
 	cmd.Flags().BoolVar(&forceLock, "force-lock", false, "Force acquisition of deployment lock.")
 	cmd.Flags().BoolVar(&failOnActiveRuns, "fail-on-active-runs", false, "Fail if there are running jobs or pipelines in the deployment.")
-	cmd.Flags().StringVarP(&computeID, "compute-id", "c", "", "Override compute in the deployment with the given compute ID.")
+	cmd.Flags().StringVar(&clusterId, "compute-id", "", "Override cluster in the deployment with the given compute ID.")
+	cmd.Flags().StringVarP(&clusterId, "cluster-id", "c", "", "Override cluster in the deployment with the given cluster ID.")
 	cmd.Flags().BoolVar(&autoApprove, "auto-approve", false, "Skip interactive approvals that might be required for deployment.")
+	cmd.Flags().MarkDeprecated("compute-id", "use --cluster-id instead")
+	cmd.Flags().BoolVar(&verbose, "verbose", false, "Enable verbose output.")
+	// Verbose flag currently only affects file sync output, it's used by the vscode extension
+	cmd.Flags().MarkHidden("verbose")
 
 	cmd.RunE = func(cmd *cobra.Command, args []string) error {
 		ctx := cmd.Context()
@@ -42,7 +49,10 @@ func newDeployCommand() *cobra.Command {
 				b.AutoApprove = autoApprove
 
 				if cmd.Flag("compute-id").Changed {
-					b.Config.Bundle.ComputeID = computeID
+					b.Config.Bundle.ClusterId = clusterId
+				}
+				if cmd.Flag("cluster-id").Changed {
+					b.Config.Bundle.ClusterId = clusterId
 				}
 				if cmd.Flag("fail-on-active-runs").Changed {
 					b.Config.Bundle.Deployment.FailOnActiveRuns = failOnActiveRuns
@@ -51,11 +61,18 @@ func newDeployCommand() *cobra.Command {
 				return nil
 			})
 
+			var outputHandler sync.OutputHandler
+			if verbose {
+				outputHandler = func(ctx context.Context, c <-chan sync.Event) {
+					sync.TextOutput(ctx, c, cmd.OutOrStdout())
+				}
+			}
+
 			diags = diags.Extend(
 				bundle.Apply(ctx, b, bundle.Seq(
 					phases.Initialize(),
 					phases.Build(),
-					phases.Deploy(),
+					phases.Deploy(outputHandler),
 				)),
 			)
 		}
diff --git a/cmd/bundle/run.go b/cmd/bundle/run.go
index 63458f85..9ef5eb8f 100644
--- a/cmd/bundle/run.go
+++ b/cmd/bundle/run.go
@@ -55,13 +55,7 @@ task or a Python wheel task, the second example applies.
 			return diags.Error()
 		}
 
-		diags = bundle.Apply(ctx, b, bundle.Seq(
-			phases.Initialize(),
-			terraform.Interpolate(),
-			terraform.Write(),
-			terraform.StatePull(),
-			terraform.Load(terraform.ErrorOnEmptyState),
-		))
+		diags = bundle.Apply(ctx, b, phases.Initialize())
 		if err := diags.Error(); err != nil {
 			return err
 		}
@@ -84,6 +78,16 @@ task or a Python wheel task, the second example applies.
 			return fmt.Errorf("expected a KEY of the resource to run")
 		}
 
+		diags = bundle.Apply(ctx, b, bundle.Seq(
+			terraform.Interpolate(),
+			terraform.Write(),
+			terraform.StatePull(),
+			terraform.Load(terraform.ErrorOnEmptyState),
+		))
+		if err := diags.Error(); err != nil {
+			return err
+		}
+
 		runner, err := run.Find(b, args[0])
 		if err != nil {
 			return err
diff --git a/cmd/sync/sync.go b/cmd/sync/sync.go
index 23a4c018..2092d9e3 100644
--- a/cmd/sync/sync.go
+++ b/cmd/sync/sync.go
@@ -6,7 +6,6 @@ import (
 	"fmt"
 	"io"
 	"path/filepath"
-	stdsync "sync"
 	"time"
 
 	"github.com/databricks/cli/bundle"
@@ -46,6 +45,21 @@ func (f *syncFlags) syncOptionsFromArgs(cmd *cobra.Command, args []string) (*syn
 		return nil, flag.ErrHelp
 	}
 
+	var outputFunc func(context.Context, <-chan sync.Event, io.Writer)
+	switch f.output {
+	case flags.OutputText:
+		outputFunc = sync.TextOutput
+	case flags.OutputJSON:
+		outputFunc = sync.JsonOutput
+	}
+
+	var outputHandler sync.OutputHandler
+	if outputFunc != nil {
+		outputHandler = func(ctx context.Context, events <-chan sync.Event) {
+			outputFunc(ctx, events, cmd.OutOrStdout())
+		}
+	}
+
 	opts := sync.SyncOptions{
 		LocalRoot: vfs.MustNew(args[0]),
 		Paths:     []string{"."},
@@ -62,6 +76,8 @@ func (f *syncFlags) syncOptionsFromArgs(cmd *cobra.Command, args []string) (*syn
 		// exist and add it to the `.gitignore` file in the root.
 		SnapshotBasePath: filepath.Join(args[0], ".databricks"),
 		WorkspaceClient:  root.WorkspaceClient(cmd.Context()),
+
+		OutputHandler: outputHandler,
 	}
 	return &opts, nil
 }
@@ -118,23 +134,7 @@ func New() *cobra.Command {
 		if err != nil {
 			return err
 		}
-
-		var outputFunc func(context.Context, <-chan sync.Event, io.Writer)
-		switch f.output {
-		case flags.OutputText:
-			outputFunc = textOutput
-		case flags.OutputJSON:
-			outputFunc = jsonOutput
-		}
-
-		var wg stdsync.WaitGroup
-		if outputFunc != nil {
-			wg.Add(1)
-			go func() {
-				defer wg.Done()
-				outputFunc(ctx, s.Events(), cmd.OutOrStdout())
-			}()
-		}
+		defer s.Close()
 
 		if f.watch {
 			err = s.RunContinuous(ctx)
@@ -142,8 +142,6 @@ func New() *cobra.Command {
 			_, err = s.RunOnce(ctx)
 		}
 
-		s.Close()
-		wg.Wait()
 		return err
 	}
 
diff --git a/internal/bundle/bundles/clusters/databricks_template_schema.json b/internal/bundle/bundles/clusters/databricks_template_schema.json
new file mode 100644
index 00000000..c1c5cf12
--- /dev/null
+++ b/internal/bundle/bundles/clusters/databricks_template_schema.json
@@ -0,0 +1,16 @@
+{
+    "properties": {
+        "unique_id": {
+            "type": "string",
+            "description": "Unique ID for job name"
+        },
+        "spark_version": {
+            "type": "string",
+            "description": "Spark version used for job cluster"
+        },
+        "node_type_id": {
+            "type": "string",
+            "description": "Node type id for job cluster"
+        }
+    }
+}
diff --git a/internal/bundle/bundles/clusters/template/databricks.yml.tmpl b/internal/bundle/bundles/clusters/template/databricks.yml.tmpl
new file mode 100644
index 00000000..e0d6320a
--- /dev/null
+++ b/internal/bundle/bundles/clusters/template/databricks.yml.tmpl
@@ -0,0 +1,24 @@
+bundle:
+  name: basic
+
+workspace:
+  root_path: "~/.bundle/{{.unique_id}}"
+
+resources:
+  clusters:
+    test_cluster:
+      cluster_name: "test-cluster-{{.unique_id}}"
+      spark_version: "{{.spark_version}}"
+      node_type_id: "{{.node_type_id}}"
+      num_workers: 2
+      spark_conf:
+        "spark.executor.memory": "2g"
+
+  jobs:
+    foo:
+      name: test-job-with-cluster-{{.unique_id}}
+      tasks:
+        - task_key: my_notebook_task
+          existing_cluster_id: "${resources.clusters.test_cluster.cluster_id}"
+          spark_python_task:
+            python_file: ./hello_world.py
diff --git a/internal/bundle/bundles/clusters/template/hello_world.py b/internal/bundle/bundles/clusters/template/hello_world.py
new file mode 100644
index 00000000..f301245e
--- /dev/null
+++ b/internal/bundle/bundles/clusters/template/hello_world.py
@@ -0,0 +1 @@
+print("Hello World!")
diff --git a/internal/bundle/clusters_test.go b/internal/bundle/clusters_test.go
new file mode 100644
index 00000000..a961f3ea
--- /dev/null
+++ b/internal/bundle/clusters_test.go
@@ -0,0 +1,56 @@
+package bundle
+
+import (
+	"fmt"
+	"testing"
+
+	"github.com/databricks/cli/internal"
+	"github.com/databricks/cli/internal/acc"
+	"github.com/databricks/cli/internal/testutil"
+	"github.com/databricks/cli/libs/env"
+	"github.com/databricks/databricks-sdk-go/service/compute"
+	"github.com/google/uuid"
+	"github.com/stretchr/testify/require"
+)
+
+func TestAccDeployBundleWithCluster(t *testing.T) {
+	ctx, wt := acc.WorkspaceTest(t)
+
+	if testutil.IsAWSCloud(wt.T) {
+		t.Skip("Skipping test for AWS cloud because it is not permitted to create clusters")
+	}
+
+	nodeTypeId := internal.GetNodeTypeId(env.Get(ctx, "CLOUD_ENV"))
+	uniqueId := uuid.New().String()
+	root, err := initTestTemplate(t, ctx, "clusters", map[string]any{
+		"unique_id":     uniqueId,
+		"node_type_id":  nodeTypeId,
+		"spark_version": defaultSparkVersion,
+	})
+	require.NoError(t, err)
+
+	t.Cleanup(func() {
+		err = destroyBundle(t, ctx, root)
+		require.NoError(t, err)
+
+		cluster, err := wt.W.Clusters.GetByClusterName(ctx, fmt.Sprintf("test-cluster-%s", uniqueId))
+		if err != nil {
+			require.ErrorContains(t, err, "does not exist")
+		} else {
+			require.Contains(t, []compute.State{compute.StateTerminated, compute.StateTerminating}, cluster.State)
+		}
+
+	})
+
+	err = deployBundle(t, ctx, root)
+	require.NoError(t, err)
+
+	// Cluster should exists after bundle deployment
+	cluster, err := wt.W.Clusters.GetByClusterName(ctx, fmt.Sprintf("test-cluster-%s", uniqueId))
+	require.NoError(t, err)
+	require.NotNil(t, cluster)
+
+	out, err := runResource(t, ctx, root, "foo")
+	require.NoError(t, err)
+	require.Contains(t, out, "Hello World!")
+}
diff --git a/internal/testutil/cloud.go b/internal/testutil/cloud.go
index e547069f..ba5b75ec 100644
--- a/internal/testutil/cloud.go
+++ b/internal/testutil/cloud.go
@@ -49,3 +49,7 @@ func GetCloud(t *testing.T) Cloud {
 	}
 	return -1
 }
+
+func IsAWSCloud(t *testing.T) bool {
+	return GetCloud(t) == AWS
+}
diff --git a/libs/git/repository_test.go b/libs/git/repository_test.go
index a28038ee..93d9a03d 100644
--- a/libs/git/repository_test.go
+++ b/libs/git/repository_test.go
@@ -209,7 +209,26 @@ func TestRepositoryGitConfigWhenNotARepo(t *testing.T) {
 }
 
 func TestRepositoryOriginUrlRemovesUserCreds(t *testing.T) {
-	repo := newTestRepository(t)
-	repo.addOriginUrl("https://username:token@github.com/databricks/foobar.git")
-	repo.assertOriginUrl("https://github.com/databricks/foobar.git")
+	tcases := []struct {
+		url      string
+		expected string
+	}{
+		{
+			url:      "https://username:token@github.com/databricks/foobar.git",
+			expected: "https://github.com/databricks/foobar.git",
+		},
+		{
+			// Note: The token is still considered and parsed as a username here.
+			// However credentials integrations by Git providers like GitHub
+			// allow for setting a PAT token as a username.
+			url:      "https://token@github.com/databricks/foobar.git",
+			expected: "https://github.com/databricks/foobar.git",
+		},
+	}
+
+	for _, tc := range tcases {
+		repo := newTestRepository(t)
+		repo.addOriginUrl(tc.url)
+		repo.assertOriginUrl(tc.expected)
+	}
 }
diff --git a/cmd/sync/output.go b/libs/sync/output.go
similarity index 83%
rename from cmd/sync/output.go
rename to libs/sync/output.go
index 2785343f..c01b25ef 100644
--- a/cmd/sync/output.go
+++ b/libs/sync/output.go
@@ -5,12 +5,10 @@ import (
 	"context"
 	"encoding/json"
 	"io"
-
-	"github.com/databricks/cli/libs/sync"
 )
 
 // Read synchronization events and write them as JSON to the specified writer (typically stdout).
-func jsonOutput(ctx context.Context, ch <-chan sync.Event, w io.Writer) {
+func JsonOutput(ctx context.Context, ch <-chan Event, w io.Writer) {
 	enc := json.NewEncoder(w)
 	for {
 		select {
@@ -31,7 +29,7 @@ func jsonOutput(ctx context.Context, ch <-chan sync.Event, w io.Writer) {
 }
 
 // Read synchronization events and write them as text to the specified writer (typically stdout).
-func textOutput(ctx context.Context, ch <-chan sync.Event, w io.Writer) {
+func TextOutput(ctx context.Context, ch <-chan Event, w io.Writer) {
 	bw := bufio.NewWriter(w)
 
 	for {
diff --git a/libs/sync/sync.go b/libs/sync/sync.go
index 9eaebf2a..cc9c7394 100644
--- a/libs/sync/sync.go
+++ b/libs/sync/sync.go
@@ -3,6 +3,7 @@ package sync
 import (
 	"context"
 	"fmt"
+	stdsync "sync"
 	"time"
 
 	"github.com/databricks/cli/libs/filer"
@@ -15,6 +16,8 @@ import (
 	"github.com/databricks/databricks-sdk-go/service/iam"
 )
 
+type OutputHandler func(context.Context, <-chan Event)
+
 type SyncOptions struct {
 	LocalRoot vfs.Path
 	Paths     []string
@@ -34,6 +37,8 @@ type SyncOptions struct {
 	CurrentUser *iam.User
 
 	Host string
+
+	OutputHandler OutputHandler
 }
 
 type Sync struct {
@@ -49,6 +54,10 @@ type Sync struct {
 	// Synchronization progress events are sent to this event notifier.
 	notifier EventNotifier
 	seq      int
+
+	// WaitGroup is automatically created when an output handler is provided in the SyncOptions.
+	// Close call is required to ensure the output handler goroutine handles all events in time.
+	outputWaitGroup *stdsync.WaitGroup
 }
 
 // New initializes and returns a new [Sync] instance.
@@ -106,31 +115,41 @@ func New(ctx context.Context, opts SyncOptions) (*Sync, error) {
 		return nil, err
 	}
 
+	var notifier EventNotifier
+	var outputWaitGroup = &stdsync.WaitGroup{}
+	if opts.OutputHandler != nil {
+		ch := make(chan Event, MaxRequestsInFlight)
+		notifier = &ChannelNotifier{ch}
+		outputWaitGroup.Add(1)
+		go func() {
+			defer outputWaitGroup.Done()
+			opts.OutputHandler(ctx, ch)
+		}()
+	} else {
+		notifier = &NopNotifier{}
+	}
+
 	return &Sync{
 		SyncOptions: &opts,
 
-		fileSet:        fileSet,
-		includeFileSet: includeFileSet,
-		excludeFileSet: excludeFileSet,
-		snapshot:       snapshot,
-		filer:          filer,
-		notifier:       &NopNotifier{},
-		seq:            0,
+		fileSet:         fileSet,
+		includeFileSet:  includeFileSet,
+		excludeFileSet:  excludeFileSet,
+		snapshot:        snapshot,
+		filer:           filer,
+		notifier:        notifier,
+		outputWaitGroup: outputWaitGroup,
+		seq:             0,
 	}, nil
 }
 
-func (s *Sync) Events() <-chan Event {
-	ch := make(chan Event, MaxRequestsInFlight)
-	s.notifier = &ChannelNotifier{ch}
-	return ch
-}
-
 func (s *Sync) Close() {
 	if s.notifier == nil {
 		return
 	}
 	s.notifier.Close()
 	s.notifier = nil
+	s.outputWaitGroup.Wait()
 }
 
 func (s *Sync) notifyStart(ctx context.Context, d diff) {
diff --git a/libs/template/templates/default-python/template/{{.project_name}}/resources/{{.project_name}}_pipeline.yml.tmpl b/libs/template/templates/default-python/template/{{.project_name}}/resources/{{.project_name}}_pipeline.yml.tmpl
index 4b8f74d1..bf469046 100644
--- a/libs/template/templates/default-python/template/{{.project_name}}/resources/{{.project_name}}_pipeline.yml.tmpl
+++ b/libs/template/templates/default-python/template/{{.project_name}}/resources/{{.project_name}}_pipeline.yml.tmpl
@@ -3,6 +3,12 @@ resources:
   pipelines:
     {{.project_name}}_pipeline:
       name: {{.project_name}}_pipeline
+      {{- if eq default_catalog ""}}
+      ## Specify the 'catalog' field to configure this pipeline to make use of Unity Catalog:
+      # catalog: catalog_name
+      {{- else}}
+      catalog: {{default_catalog}}
+      {{- end}}
       target: {{.project_name}}_${bundle.environment}
       libraries:
         - notebook: