diff --git a/internal/services/cosmos/cosmosdb_postgresql_cluster_resource.go b/internal/services/cosmos/cosmosdb_postgresql_cluster_resource.go
index 57fb801cd897..ba8cb8467efc 100644
--- a/internal/services/cosmos/cosmosdb_postgresql_cluster_resource.go
+++ b/internal/services/cosmos/cosmosdb_postgresql_cluster_resource.go
@@ -142,6 +142,7 @@ func (r CosmosDbPostgreSQLClusterResource) Arguments() map[string]*pluginsdk.Sch
 				"11.1",
 				"11.2",
 				"11.3",
+				"12.1",
 			}, false),
 		},
 
@@ -289,6 +290,7 @@ func (r CosmosDbPostgreSQLClusterResource) Arguments() map[string]*pluginsdk.Sch
 				"13",
 				"14",
 				"15",
+				"16",
 			}, false),
 		},
 
diff --git a/internal/services/cosmos/cosmosdb_postgresql_cluster_resource_test.go b/internal/services/cosmos/cosmosdb_postgresql_cluster_resource_test.go
index 4d35e0416d0e..74f24cb79655 100644
--- a/internal/services/cosmos/cosmosdb_postgresql_cluster_resource_test.go
+++ b/internal/services/cosmos/cosmosdb_postgresql_cluster_resource_test.go
@@ -226,7 +226,7 @@ resource "azurerm_cosmosdb_postgresql_cluster" "test" {
   coordinator_vcore_count         = 4
   node_count                      = 2
 
-  citus_version                        = "11.3"
+  citus_version                        = "12.1"
   coordinator_public_ip_access_enabled = false
   ha_enabled                           = true
   coordinator_server_edition           = "MemoryOptimized"
@@ -239,7 +239,7 @@ resource "azurerm_cosmosdb_postgresql_cluster" "test" {
 
   node_public_ip_access_enabled = true
   node_server_edition           = "GeneralPurpose"
-  sql_version                   = "15"
+  sql_version                   = "16"
   preferred_primary_zone        = 2
   node_storage_quota_in_mb      = 262144
   node_vcores                   = 4
diff --git a/website/docs/r/cosmosdb_postgresql_cluster.html.markdown b/website/docs/r/cosmosdb_postgresql_cluster.html.markdown
index ba6f155555b1..a2d8e8c0fa85 100644
--- a/website/docs/r/cosmosdb_postgresql_cluster.html.markdown
+++ b/website/docs/r/cosmosdb_postgresql_cluster.html.markdown
@@ -49,7 +49,7 @@ The following arguments are supported:
 
 * `node_count` - (Required) The worker node count of the Azure Cosmos DB for PostgreSQL Cluster. Possible value is between `0` and `20` except `1`.
 
-* `citus_version` - (Optional) The citus extension version on the Azure Cosmos DB for PostgreSQL Cluster. Possible values are `8.3`, `9.0`, `9.1`, `9.2`, `9.3`, `9.4`, `9.5`, `10.0`, `10.1`, `10.2`, `11.0`, `11.1`, `11.2` and `11.3`.
+* `citus_version` - (Optional) The citus extension version on the Azure Cosmos DB for PostgreSQL Cluster. Possible values are `8.3`, `9.0`, `9.1`, `9.2`, `9.3`, `9.4`, `9.5`, `10.0`, `10.1`, `10.2`, `11.0`, `11.1`, `11.2`, `11.3` and `12.1`.
 
 * `coordinator_public_ip_access_enabled` - (Optional) Is public access enabled on coordinator? Defaults to `true`.
 
@@ -77,7 +77,7 @@ The following arguments are supported:
 
 * `source_resource_id` - (Optional) The resource ID of the source Azure Cosmos DB for PostgreSQL cluster for read replica clusters. Changing this forces a new resource to be created.
 
-* `sql_version` - (Optional) The major PostgreSQL version on the Azure Cosmos DB for PostgreSQL cluster. Possible values are `11`, `12`, `13`, `14` and `15`.
+* `sql_version` - (Optional) The major PostgreSQL version on the Azure Cosmos DB for PostgreSQL cluster. Possible values are `11`, `12`, `13`, `14`, `15` and `16`.
 
 * `tags` - (Optional) A mapping of tags which should be assigned to the Azure Cosmos DB for PostgreSQL Cluster.