diff --git a/cmd/apply.go b/cmd/apply.go
index 3a50ddf..1493841 100644
--- a/cmd/apply.go
+++ b/cmd/apply.go
@@ -10,7 +10,8 @@ import (
 	"path/filepath"
 	"strings"
 
-	"edp.buildth.ing/DevFW-CICD/edge-connect-client/internal/apply"
+	applyv1 "edp.buildth.ing/DevFW-CICD/edge-connect-client/internal/apply/v1"
+	applyv2 "edp.buildth.ing/DevFW-CICD/edge-connect-client/internal/apply/v2"
 	"edp.buildth.ing/DevFW-CICD/edge-connect-client/internal/config"
 	"github.com/spf13/cobra"
 )
@@ -67,22 +68,27 @@ func runApply(configPath string, isDryRun bool, autoApprove bool) error {
 
 	fmt.Printf("✅ Configuration loaded successfully: %s\n", cfg.Metadata.Name)
 
-	// Step 3: Validate API version (apply only supports v2)
+	// Step 3: Determine API version and create appropriate client
 	apiVersion := getAPIVersion()
+
+	// Step 4-6: Execute deployment based on API version
 	if apiVersion == "v1" {
-		return fmt.Errorf("apply command only supports API v2. The v1 API does not support the advanced deployment features required by this command. Please use --api-version v2 or remove the api_version setting")
+		return runApplyV1(cfg, manifestContent, isDryRun, autoApprove)
 	}
+	return runApplyV2(cfg, manifestContent, isDryRun, autoApprove)
+}
 
-	// Step 4: Create EdgeConnect client (v2 only)
-	client := newSDKClientV2()
+func runApplyV1(cfg *config.EdgeConnectConfig, manifestContent string, isDryRun bool, autoApprove bool) error {
+	// Create v1 client
+	client := newSDKClientV1()
 
-	// Step 5: Create deployment planner
-	planner := apply.NewPlanner(client)
+	// Create deployment planner
+	planner := applyv1.NewPlanner(client)
 
-	// Step 6: Generate deployment plan
+	// Generate deployment plan
 	fmt.Println("🔍 Analyzing current state and generating deployment plan...")
 
-	planOptions := apply.DefaultPlanOptions()
+	planOptions := applyv1.DefaultPlanOptions()
 	planOptions.DryRun = isDryRun
 
 	result, err := planner.PlanWithOptions(context.Background(), cfg, planOptions)
@@ -90,7 +96,7 @@ func runApply(configPath string, isDryRun bool, autoApprove bool) error {
 		return fmt.Errorf("failed to generate deployment plan: %w", err)
 	}
 
-	// Step 6: Display plan summary
+	// Display plan summary
 	fmt.Println("\n📋 Deployment Plan:")
 	fmt.Println(strings.Repeat("=", 50))
 	fmt.Println(result.Plan.Summary)
@@ -104,13 +110,13 @@ func runApply(configPath string, isDryRun bool, autoApprove bool) error {
 		}
 	}
 
-	// Step 7: If dry-run, stop here
+	// If dry-run, stop here
 	if isDryRun {
 		fmt.Println("\n🔍 Dry-run complete. No changes were made.")
 		return nil
 	}
 
-	// Step 8: Confirm deployment (in non-dry-run mode)
+	// Confirm deployment
 	if result.Plan.TotalActions == 0 {
 		fmt.Println("\n✅ No changes needed. Resources are already in desired state.")
 		return nil
@@ -124,16 +130,112 @@ func runApply(configPath string, isDryRun bool, autoApprove bool) error {
 		return nil
 	}
 
-	// Step 9: Execute deployment
+	// Execute deployment
 	fmt.Println("\n🚀 Starting deployment...")
 
-	manager := apply.NewResourceManager(client, apply.WithLogger(log.Default()))
+	manager := applyv1.NewResourceManager(client, applyv1.WithLogger(log.Default()))
 	deployResult, err := manager.ApplyDeployment(context.Background(), result.Plan, cfg, manifestContent)
 	if err != nil {
 		return fmt.Errorf("deployment failed: %w", err)
 	}
 
-	// Step 10: Display results
+	// Display results
+	return displayDeploymentResults(deployResult)
+}
+
+func runApplyV2(cfg *config.EdgeConnectConfig, manifestContent string, isDryRun bool, autoApprove bool) error {
+	// Create v2 client
+	client := newSDKClientV2()
+
+	// Create deployment planner
+	planner := applyv2.NewPlanner(client)
+
+	// Generate deployment plan
+	fmt.Println("🔍 Analyzing current state and generating deployment plan...")
+
+	planOptions := applyv2.DefaultPlanOptions()
+	planOptions.DryRun = isDryRun
+
+	result, err := planner.PlanWithOptions(context.Background(), cfg, planOptions)
+	if err != nil {
+		return fmt.Errorf("failed to generate deployment plan: %w", err)
+	}
+
+	// Display plan summary
+	fmt.Println("\n📋 Deployment Plan:")
+	fmt.Println(strings.Repeat("=", 50))
+	fmt.Println(result.Plan.Summary)
+	fmt.Println(strings.Repeat("=", 50))
+
+	// Display warnings if any
+	if len(result.Warnings) > 0 {
+		fmt.Println("\n⚠️  Warnings:")
+		for _, warning := range result.Warnings {
+			fmt.Printf("   • %s\n", warning)
+		}
+	}
+
+	// If dry-run, stop here
+	if isDryRun {
+		fmt.Println("\n🔍 Dry-run complete. No changes were made.")
+		return nil
+	}
+
+	// Confirm deployment
+	if result.Plan.TotalActions == 0 {
+		fmt.Println("\n✅ No changes needed. Resources are already in desired state.")
+		return nil
+	}
+
+	fmt.Printf("\nThis will perform %d actions. Estimated time: %v\n",
+		result.Plan.TotalActions, result.Plan.EstimatedDuration)
+
+	if !autoApprove && !confirmDeployment() {
+		fmt.Println("Deployment cancelled.")
+		return nil
+	}
+
+	// Execute deployment
+	fmt.Println("\n🚀 Starting deployment...")
+
+	manager := applyv2.NewResourceManager(client, applyv2.WithLogger(log.Default()))
+	deployResult, err := manager.ApplyDeployment(context.Background(), result.Plan, cfg, manifestContent)
+	if err != nil {
+		return fmt.Errorf("deployment failed: %w", err)
+	}
+
+	// Display results
+	return displayDeploymentResults(deployResult)
+}
+
+type deploymentResult interface {
+	IsSuccess() bool
+	GetDuration() string
+	GetCompletedActions() []actionResult
+	GetFailedActions() []actionResult
+	GetError() error
+}
+
+type actionResult interface {
+	GetType() string
+	GetTarget() string
+	GetError() error
+}
+
+func displayDeploymentResults(result interface{}) error {
+	// Use reflection or type assertion to handle both v1 and v2 result types
+	// For now, we'll use a simple approach that works with both
+	switch r := result.(type) {
+	case *applyv1.ExecutionResult:
+		return displayDeploymentResultsV1(r)
+	case *applyv2.ExecutionResult:
+		return displayDeploymentResultsV2(r)
+	default:
+		return fmt.Errorf("unknown deployment result type")
+	}
+}
+
+func displayDeploymentResultsV1(deployResult *applyv1.ExecutionResult) error {
 	if deployResult.Success {
 		fmt.Printf("\n✅ Deployment completed successfully in %v\n", deployResult.Duration)
 		if len(deployResult.CompletedActions) > 0 {
@@ -155,7 +257,31 @@ func runApply(configPath string, isDryRun bool, autoApprove bool) error {
 		}
 		return fmt.Errorf("deployment failed with %d failed actions", len(deployResult.FailedActions))
 	}
+	return nil
+}
 
+func displayDeploymentResultsV2(deployResult *applyv2.ExecutionResult) error {
+	if deployResult.Success {
+		fmt.Printf("\n✅ Deployment completed successfully in %v\n", deployResult.Duration)
+		if len(deployResult.CompletedActions) > 0 {
+			fmt.Println("\nCompleted actions:")
+			for _, action := range deployResult.CompletedActions {
+				fmt.Printf("   ✅ %s %s\n", action.Type, action.Target)
+			}
+		}
+	} else {
+		fmt.Printf("\n❌ Deployment failed after %v\n", deployResult.Duration)
+		if deployResult.Error != nil {
+			fmt.Printf("Error: %v\n", deployResult.Error)
+		}
+		if len(deployResult.FailedActions) > 0 {
+			fmt.Println("\nFailed actions:")
+			for _, action := range deployResult.FailedActions {
+				fmt.Printf("   ❌ %s %s: %v\n", action.Type, action.Target, action.Error)
+			}
+		}
+		return fmt.Errorf("deployment failed with %d failed actions", len(deployResult.FailedActions))
+	}
 	return nil
 }
 
diff --git a/internal/apply/v1/manager.go b/internal/apply/v1/manager.go
new file mode 100644
index 0000000..a0668e8
--- /dev/null
+++ b/internal/apply/v1/manager.go
@@ -0,0 +1,286 @@
+// ABOUTME: Resource management for EdgeConnect apply command with deployment execution and rollback
+// ABOUTME: Handles actual deployment operations, manifest processing, and error recovery with parallel execution
+package v1
+
+import (
+	"context"
+	"fmt"
+	"time"
+
+	"edp.buildth.ing/DevFW-CICD/edge-connect-client/internal/config"
+	"edp.buildth.ing/DevFW-CICD/edge-connect-client/sdk/edgeconnect"
+)
+
+// ResourceManagerInterface defines the interface for resource management
+type ResourceManagerInterface interface {
+	// ApplyDeployment executes a deployment plan
+	ApplyDeployment(ctx context.Context, plan *DeploymentPlan, config *config.EdgeConnectConfig, manifestContent string) (*ExecutionResult, error)
+
+	// RollbackDeployment attempts to rollback a failed deployment
+	RollbackDeployment(ctx context.Context, result *ExecutionResult) error
+
+	// ValidatePrerequisites checks if deployment prerequisites are met
+	ValidatePrerequisites(ctx context.Context, plan *DeploymentPlan) error
+}
+
+// EdgeConnectResourceManager implements resource management for EdgeConnect
+type EdgeConnectResourceManager struct {
+	client         EdgeConnectClientInterface
+	parallelLimit  int
+	rollbackOnFail bool
+	logger         Logger
+	strategyConfig StrategyConfig
+}
+
+// Logger interface for deployment logging
+type Logger interface {
+	Printf(format string, v ...interface{})
+}
+
+// ResourceManagerOptions configures the resource manager behavior
+type ResourceManagerOptions struct {
+	// ParallelLimit controls how many operations run concurrently
+	ParallelLimit int
+
+	// RollbackOnFail automatically rolls back on deployment failure
+	RollbackOnFail bool
+
+	// Logger for deployment operations
+	Logger Logger
+
+	// Timeout for individual operations
+	OperationTimeout time.Duration
+
+	// StrategyConfig for deployment strategies
+	StrategyConfig StrategyConfig
+}
+
+// DefaultResourceManagerOptions returns sensible defaults
+func DefaultResourceManagerOptions() ResourceManagerOptions {
+	return ResourceManagerOptions{
+		ParallelLimit:    5, // Conservative parallel limit
+		RollbackOnFail:   true,
+		OperationTimeout: 2 * time.Minute,
+		StrategyConfig:   DefaultStrategyConfig(),
+	}
+}
+
+// NewResourceManager creates a new EdgeConnect resource manager
+func NewResourceManager(client EdgeConnectClientInterface, opts ...func(*ResourceManagerOptions)) ResourceManagerInterface {
+	options := DefaultResourceManagerOptions()
+	for _, opt := range opts {
+		opt(&options)
+	}
+
+	return &EdgeConnectResourceManager{
+		client:         client,
+		parallelLimit:  options.ParallelLimit,
+		rollbackOnFail: options.RollbackOnFail,
+		logger:         options.Logger,
+		strategyConfig: options.StrategyConfig,
+	}
+}
+
+// WithParallelLimit sets the parallel execution limit
+func WithParallelLimit(limit int) func(*ResourceManagerOptions) {
+	return func(opts *ResourceManagerOptions) {
+		opts.ParallelLimit = limit
+	}
+}
+
+// WithRollbackOnFail enables/disables automatic rollback
+func WithRollbackOnFail(rollback bool) func(*ResourceManagerOptions) {
+	return func(opts *ResourceManagerOptions) {
+		opts.RollbackOnFail = rollback
+	}
+}
+
+// WithLogger sets a logger for deployment operations
+func WithLogger(logger Logger) func(*ResourceManagerOptions) {
+	return func(opts *ResourceManagerOptions) {
+		opts.Logger = logger
+	}
+}
+
+// WithStrategyConfig sets the strategy configuration
+func WithStrategyConfig(config StrategyConfig) func(*ResourceManagerOptions) {
+	return func(opts *ResourceManagerOptions) {
+		opts.StrategyConfig = config
+	}
+}
+
+// ApplyDeployment executes a deployment plan using deployment strategies
+func (rm *EdgeConnectResourceManager) ApplyDeployment(ctx context.Context, plan *DeploymentPlan, config *config.EdgeConnectConfig, manifestContent string) (*ExecutionResult, error) {
+	rm.logf("Starting deployment: %s", plan.ConfigName)
+
+	// Step 1: Validate prerequisites
+	if err := rm.ValidatePrerequisites(ctx, plan); err != nil {
+		result := &ExecutionResult{
+			Plan:             plan,
+			CompletedActions: []ActionResult{},
+			FailedActions:    []ActionResult{},
+			Error:            fmt.Errorf("prerequisites validation failed: %w", err),
+			Duration:         0,
+		}
+		return result, err
+	}
+
+	// Step 2: Determine deployment strategy
+	strategyName := DeploymentStrategy(config.Spec.GetDeploymentStrategy())
+	rm.logf("Using deployment strategy: %s", strategyName)
+
+	// Step 3: Create strategy executor
+	strategyConfig := rm.strategyConfig
+	strategyConfig.ParallelOperations = rm.parallelLimit > 1
+
+	factory := NewStrategyFactory(rm.client, strategyConfig, rm.logger)
+	strategy, err := factory.CreateStrategy(strategyName)
+	if err != nil {
+		result := &ExecutionResult{
+			Plan:             plan,
+			CompletedActions: []ActionResult{},
+			FailedActions:    []ActionResult{},
+			Error:            fmt.Errorf("failed to create deployment strategy: %w", err),
+			Duration:         0,
+		}
+		return result, err
+	}
+
+	// Step 4: Validate strategy can handle this deployment
+	if err := strategy.Validate(plan); err != nil {
+		result := &ExecutionResult{
+			Plan:             plan,
+			CompletedActions: []ActionResult{},
+			FailedActions:    []ActionResult{},
+			Error:            fmt.Errorf("strategy validation failed: %w", err),
+			Duration:         0,
+		}
+		return result, err
+	}
+
+	// Step 5: Execute the deployment strategy
+	rm.logf("Estimated deployment duration: %v", strategy.EstimateDuration(plan))
+	result, err := strategy.Execute(ctx, plan, config, manifestContent)
+
+	// Step 6: Handle rollback if needed
+	if err != nil && rm.rollbackOnFail && result != nil {
+		rm.logf("Deployment failed, attempting rollback...")
+		if rollbackErr := rm.RollbackDeployment(ctx, result); rollbackErr != nil {
+			rm.logf("Rollback failed: %v", rollbackErr)
+		} else {
+			result.RollbackPerformed = true
+			result.RollbackSuccess = true
+		}
+	}
+
+	if result != nil && result.Success {
+		rm.logf("Deployment completed successfully in %v", result.Duration)
+	}
+
+	return result, err
+}
+
+// ValidatePrerequisites checks if deployment prerequisites are met
+func (rm *EdgeConnectResourceManager) ValidatePrerequisites(ctx context.Context, plan *DeploymentPlan) error {
+	rm.logf("Validating deployment prerequisites for: %s", plan.ConfigName)
+
+	// Check if we have any actions to perform
+	if plan.IsEmpty() {
+		return fmt.Errorf("deployment plan is empty - no actions to perform")
+	}
+
+	// Validate that we have required client capabilities
+	if rm.client == nil {
+		return fmt.Errorf("EdgeConnect client is not configured")
+	}
+
+	rm.logf("Prerequisites validation passed")
+	return nil
+}
+
+// RollbackDeployment attempts to rollback a failed deployment
+func (rm *EdgeConnectResourceManager) RollbackDeployment(ctx context.Context, result *ExecutionResult) error {
+	rm.logf("Starting rollback for deployment: %s", result.Plan.ConfigName)
+
+	rollbackErrors := []error{}
+
+	// Rollback completed instances (in reverse order)
+	for i := len(result.CompletedActions) - 1; i >= 0; i-- {
+		action := result.CompletedActions[i]
+
+		switch action.Type {
+		case ActionCreate:
+			if err := rm.rollbackCreateAction(ctx, action, result.Plan); err != nil {
+				rollbackErrors = append(rollbackErrors, fmt.Errorf("failed to rollback %s: %w", action.Target, err))
+			} else {
+				rm.logf("Successfully rolled back: %s", action.Target)
+			}
+		}
+	}
+
+	if len(rollbackErrors) > 0 {
+		return fmt.Errorf("rollback encountered %d errors: %v", len(rollbackErrors), rollbackErrors)
+	}
+
+	rm.logf("Rollback completed successfully")
+	return nil
+}
+
+// rollbackCreateAction rolls back a CREATE action by deleting the resource
+func (rm *EdgeConnectResourceManager) rollbackCreateAction(ctx context.Context, action ActionResult, plan *DeploymentPlan) error {
+	if action.Type != ActionCreate {
+		return nil
+	}
+
+	// Determine if this is an app or instance rollback based on the target name
+	isInstance := false
+	for _, instanceAction := range plan.InstanceActions {
+		if instanceAction.InstanceName == action.Target {
+			isInstance = true
+			break
+		}
+	}
+
+	if isInstance {
+		return rm.rollbackInstance(ctx, action, plan)
+	} else {
+		return rm.rollbackApp(ctx, action, plan)
+	}
+}
+
+// rollbackApp deletes an application that was created
+func (rm *EdgeConnectResourceManager) rollbackApp(ctx context.Context, action ActionResult, plan *DeploymentPlan) error {
+	appKey := edgeconnect.AppKey{
+		Organization: plan.AppAction.Desired.Organization,
+		Name:         plan.AppAction.Desired.Name,
+		Version:      plan.AppAction.Desired.Version,
+	}
+
+	return rm.client.DeleteApp(ctx, appKey, plan.AppAction.Desired.Region)
+}
+
+// rollbackInstance deletes an instance that was created
+func (rm *EdgeConnectResourceManager) rollbackInstance(ctx context.Context, action ActionResult, plan *DeploymentPlan) error {
+	// Find the instance action to get the details
+	for _, instanceAction := range plan.InstanceActions {
+		if instanceAction.InstanceName == action.Target {
+			instanceKey := edgeconnect.AppInstanceKey{
+				Organization: plan.AppAction.Desired.Organization,
+				Name:         instanceAction.InstanceName,
+				CloudletKey: edgeconnect.CloudletKey{
+					Organization: instanceAction.Target.CloudletOrg,
+					Name:         instanceAction.Target.CloudletName,
+				},
+			}
+			return rm.client.DeleteAppInstance(ctx, instanceKey, instanceAction.Target.Region)
+		}
+	}
+	return fmt.Errorf("instance action not found for rollback: %s", action.Target)
+}
+
+// logf logs a message if a logger is configured
+func (rm *EdgeConnectResourceManager) logf(format string, v ...interface{}) {
+	if rm.logger != nil {
+		rm.logger.Printf("[ResourceManager] "+format, v...)
+	}
+}
diff --git a/internal/apply/v1/manager_test.go b/internal/apply/v1/manager_test.go
new file mode 100644
index 0000000..9ed3cac
--- /dev/null
+++ b/internal/apply/v1/manager_test.go
@@ -0,0 +1,497 @@
+// ABOUTME: Comprehensive tests for EdgeConnect resource manager with deployment scenarios
+// ABOUTME: Tests deployment execution, rollback functionality, and error handling with mock clients
+package v1
+
+import (
+	"context"
+	"fmt"
+	"os"
+	"path/filepath"
+	"testing"
+	"time"
+
+	"edp.buildth.ing/DevFW-CICD/edge-connect-client/internal/config"
+	"edp.buildth.ing/DevFW-CICD/edge-connect-client/sdk/edgeconnect"
+	"github.com/stretchr/testify/assert"
+	"github.com/stretchr/testify/mock"
+	"github.com/stretchr/testify/require"
+)
+
+// MockResourceClient extends MockEdgeConnectClient with resource management methods
+type MockResourceClient struct {
+	MockEdgeConnectClient
+}
+
+func (m *MockResourceClient) CreateApp(ctx context.Context, input *edgeconnect.NewAppInput) error {
+	args := m.Called(ctx, input)
+	return args.Error(0)
+}
+
+func (m *MockResourceClient) CreateAppInstance(ctx context.Context, input *edgeconnect.NewAppInstanceInput) error {
+	args := m.Called(ctx, input)
+	return args.Error(0)
+}
+
+func (m *MockResourceClient) DeleteApp(ctx context.Context, appKey edgeconnect.AppKey, region string) error {
+	args := m.Called(ctx, appKey, region)
+	return args.Error(0)
+}
+
+func (m *MockResourceClient) UpdateApp(ctx context.Context, input *edgeconnect.UpdateAppInput) error {
+	args := m.Called(ctx, input)
+	return args.Error(0)
+}
+
+func (m *MockResourceClient) UpdateAppInstance(ctx context.Context, input *edgeconnect.UpdateAppInstanceInput) error {
+	args := m.Called(ctx, input)
+	return args.Error(0)
+}
+
+func (m *MockResourceClient) DeleteAppInstance(ctx context.Context, instanceKey edgeconnect.AppInstanceKey, region string) error {
+	args := m.Called(ctx, instanceKey, region)
+	return args.Error(0)
+}
+
+// TestLogger implements Logger interface for testing
+type TestLogger struct {
+	messages []string
+}
+
+func (l *TestLogger) Printf(format string, v ...interface{}) {
+	l.messages = append(l.messages, fmt.Sprintf(format, v...))
+}
+
+func TestNewResourceManager(t *testing.T) {
+	mockClient := &MockResourceClient{}
+	manager := NewResourceManager(mockClient)
+
+	assert.NotNil(t, manager)
+	assert.IsType(t, &EdgeConnectResourceManager{}, manager)
+}
+
+func TestDefaultResourceManagerOptions(t *testing.T) {
+	opts := DefaultResourceManagerOptions()
+
+	assert.Equal(t, 5, opts.ParallelLimit)
+	assert.True(t, opts.RollbackOnFail)
+	assert.Equal(t, 2*time.Minute, opts.OperationTimeout)
+}
+
+func TestWithOptions(t *testing.T) {
+	mockClient := &MockResourceClient{}
+	logger := &TestLogger{}
+
+	manager := NewResourceManager(mockClient,
+		WithParallelLimit(10),
+		WithRollbackOnFail(false),
+		WithLogger(logger),
+	)
+
+	// Cast to implementation to check options were applied
+	impl := manager.(*EdgeConnectResourceManager)
+	assert.Equal(t, 10, impl.parallelLimit)
+	assert.False(t, impl.rollbackOnFail)
+	assert.Equal(t, logger, impl.logger)
+}
+
+func createTestDeploymentPlan() *DeploymentPlan {
+	return &DeploymentPlan{
+		ConfigName: "test-deployment",
+		AppAction: AppAction{
+			Type: ActionCreate,
+			Desired: &AppState{
+				Name:         "test-app",
+				Version:      "1.0.0",
+				Organization: "testorg",
+				Region:       "US",
+			},
+		},
+		InstanceActions: []InstanceAction{
+			{
+				Type: ActionCreate,
+				Target: config.InfraTemplate{
+					Region:       "US",
+					CloudletOrg:  "cloudletorg",
+					CloudletName: "cloudlet1",
+					FlavorName:   "small",
+				},
+				Desired: &InstanceState{
+					Name:    "test-app-1.0.0-instance",
+					AppName: "test-app",
+				},
+				InstanceName: "test-app-1.0.0-instance",
+			},
+		},
+	}
+}
+
+func createTestManagerConfig(t *testing.T) *config.EdgeConnectConfig {
+	// Create temporary manifest file
+	tempDir := t.TempDir()
+	manifestFile := filepath.Join(tempDir, "test-manifest.yaml")
+	manifestContent := "apiVersion: v1\nkind: Pod\nmetadata:\n  name: test\n"
+	err := os.WriteFile(manifestFile, []byte(manifestContent), 0644)
+	require.NoError(t, err)
+
+	return &config.EdgeConnectConfig{
+		Kind: "edgeconnect-deployment",
+		Metadata: config.Metadata{
+			Name:         "test-app",
+			AppVersion:   "1.0.0",
+			Organization: "testorg",
+		},
+		Spec: config.Spec{
+			K8sApp: &config.K8sApp{
+				ManifestFile: manifestFile,
+			},
+			InfraTemplate: []config.InfraTemplate{
+				{
+					Region:       "US",
+					CloudletOrg:  "cloudletorg",
+					CloudletName: "cloudlet1",
+					FlavorName:   "small",
+				},
+			},
+			Network: &config.NetworkConfig{
+				OutboundConnections: []config.OutboundConnection{
+					{
+						Protocol:     "tcp",
+						PortRangeMin: 80,
+						PortRangeMax: 80,
+						RemoteCIDR:   "0.0.0.0/0",
+					},
+				},
+			},
+		},
+	}
+}
+
+// createTestStrategyConfig returns a fast configuration for tests
+func createTestStrategyConfig() StrategyConfig {
+	return StrategyConfig{
+		MaxRetries:         0, // No retries for fast tests
+		HealthCheckTimeout: 1 * time.Millisecond,
+		ParallelOperations: false, // Sequential for predictable tests
+		RetryDelay:         0,     // No delay
+	}
+}
+
+func TestApplyDeploymentSuccess(t *testing.T) {
+	mockClient := &MockResourceClient{}
+	logger := &TestLogger{}
+	manager := NewResourceManager(mockClient, WithLogger(logger), WithStrategyConfig(createTestStrategyConfig()))
+
+	plan := createTestDeploymentPlan()
+	config := createTestManagerConfig(t)
+
+	// Mock successful operations
+	mockClient.On("CreateApp", mock.Anything, mock.AnythingOfType("*edgeconnect.NewAppInput")).
+		Return(nil)
+	mockClient.On("CreateAppInstance", mock.Anything, mock.AnythingOfType("*edgeconnect.NewAppInstanceInput")).
+		Return(nil)
+
+	ctx := context.Background()
+	result, err := manager.ApplyDeployment(ctx, plan, config, "test manifest content")
+
+	require.NoError(t, err)
+	require.NotNil(t, result)
+	assert.True(t, result.Success)
+	assert.Len(t, result.CompletedActions, 2) // 1 app + 1 instance
+	assert.Len(t, result.FailedActions, 0)
+	assert.False(t, result.RollbackPerformed)
+	assert.Greater(t, result.Duration, time.Duration(0))
+
+	// Check that operations were logged
+	assert.Greater(t, len(logger.messages), 0)
+
+	mockClient.AssertExpectations(t)
+}
+
+func TestApplyDeploymentAppFailure(t *testing.T) {
+	mockClient := &MockResourceClient{}
+	logger := &TestLogger{}
+	manager := NewResourceManager(mockClient, WithLogger(logger), WithStrategyConfig(createTestStrategyConfig()))
+
+	plan := createTestDeploymentPlan()
+	config := createTestManagerConfig(t)
+
+	// Mock app creation failure - deployment should stop here
+	mockClient.On("CreateApp", mock.Anything, mock.AnythingOfType("*edgeconnect.NewAppInput")).
+		Return(&edgeconnect.APIError{StatusCode: 500, Messages: []string{"Server error"}})
+
+	ctx := context.Background()
+	result, err := manager.ApplyDeployment(ctx, plan, config, "test manifest content")
+
+	require.Error(t, err)
+	require.NotNil(t, result)
+	assert.False(t, result.Success)
+	assert.Len(t, result.CompletedActions, 0)
+	assert.Len(t, result.FailedActions, 1)
+	assert.Contains(t, err.Error(), "Server error")
+
+	mockClient.AssertExpectations(t)
+}
+
+func TestApplyDeploymentInstanceFailureWithRollback(t *testing.T) {
+	mockClient := &MockResourceClient{}
+	logger := &TestLogger{}
+	manager := NewResourceManager(mockClient, WithLogger(logger), WithRollbackOnFail(true), WithStrategyConfig(createTestStrategyConfig()))
+
+	plan := createTestDeploymentPlan()
+	config := createTestManagerConfig(t)
+
+	// Mock successful app creation but failed instance creation
+	mockClient.On("CreateApp", mock.Anything, mock.AnythingOfType("*edgeconnect.NewAppInput")).
+		Return(nil)
+	mockClient.On("CreateAppInstance", mock.Anything, mock.AnythingOfType("*edgeconnect.NewAppInstanceInput")).
+		Return(&edgeconnect.APIError{StatusCode: 500, Messages: []string{"Instance creation failed"}})
+
+	// Mock rollback operations
+	mockClient.On("DeleteApp", mock.Anything, mock.AnythingOfType("edgeconnect.AppKey"), "US").
+		Return(nil)
+
+	ctx := context.Background()
+	result, err := manager.ApplyDeployment(ctx, plan, config, "test manifest content")
+
+	require.Error(t, err)
+	require.NotNil(t, result)
+	assert.False(t, result.Success)
+	assert.Len(t, result.CompletedActions, 1) // App was created
+	assert.Len(t, result.FailedActions, 1)    // Instance failed
+	assert.True(t, result.RollbackPerformed)
+	assert.True(t, result.RollbackSuccess)
+	assert.Contains(t, err.Error(), "failed to create instance")
+
+	mockClient.AssertExpectations(t)
+}
+
+func TestApplyDeploymentNoActions(t *testing.T) {
+	mockClient := &MockResourceClient{}
+	manager := NewResourceManager(mockClient)
+
+	// Create empty plan
+	plan := &DeploymentPlan{
+		ConfigName: "empty-plan",
+		AppAction:  AppAction{Type: ActionNone},
+	}
+	config := createTestManagerConfig(t)
+
+	ctx := context.Background()
+	result, err := manager.ApplyDeployment(ctx, plan, config, "test manifest content")
+
+	require.Error(t, err)
+	require.NotNil(t, result)
+	assert.Contains(t, err.Error(), "deployment plan is empty")
+
+	mockClient.AssertNotCalled(t, "CreateApp")
+	mockClient.AssertNotCalled(t, "CreateAppInstance")
+}
+
+func TestApplyDeploymentMultipleInstances(t *testing.T) {
+	mockClient := &MockResourceClient{}
+	logger := &TestLogger{}
+	manager := NewResourceManager(mockClient, WithLogger(logger), WithParallelLimit(2), WithStrategyConfig(createTestStrategyConfig()))
+
+	// Create plan with multiple instances
+	plan := &DeploymentPlan{
+		ConfigName: "multi-instance",
+		AppAction: AppAction{
+			Type: ActionCreate,
+			Desired: &AppState{
+				Name:         "test-app",
+				Version:      "1.0.0",
+				Organization: "testorg",
+				Region:       "US",
+			},
+		},
+		InstanceActions: []InstanceAction{
+			{
+				Type: ActionCreate,
+				Target: config.InfraTemplate{
+					Region:       "US",
+					CloudletOrg:  "cloudletorg1",
+					CloudletName: "cloudlet1",
+					FlavorName:   "small",
+				},
+				Desired:      &InstanceState{Name: "instance1"},
+				InstanceName: "instance1",
+			},
+			{
+				Type: ActionCreate,
+				Target: config.InfraTemplate{
+					Region:       "EU",
+					CloudletOrg:  "cloudletorg2",
+					CloudletName: "cloudlet2",
+					FlavorName:   "medium",
+				},
+				Desired:      &InstanceState{Name: "instance2"},
+				InstanceName: "instance2",
+			},
+		},
+	}
+
+	config := createTestManagerConfig(t)
+
+	// Mock successful operations
+	mockClient.On("CreateApp", mock.Anything, mock.AnythingOfType("*edgeconnect.NewAppInput")).
+		Return(nil)
+	mockClient.On("CreateAppInstance", mock.Anything, mock.AnythingOfType("*edgeconnect.NewAppInstanceInput")).
+		Return(nil)
+
+	ctx := context.Background()
+	result, err := manager.ApplyDeployment(ctx, plan, config, "test manifest content")
+
+	require.NoError(t, err)
+	require.NotNil(t, result)
+	assert.True(t, result.Success)
+	assert.Len(t, result.CompletedActions, 3) // 1 app + 2 instances
+	assert.Len(t, result.FailedActions, 0)
+
+	mockClient.AssertExpectations(t)
+}
+
+func TestValidatePrerequisites(t *testing.T) {
+	mockClient := &MockResourceClient{}
+	manager := NewResourceManager(mockClient)
+
+	tests := []struct {
+		name    string
+		plan    *DeploymentPlan
+		wantErr bool
+		errMsg  string
+	}{
+		{
+			name: "valid plan",
+			plan: &DeploymentPlan{
+				ConfigName: "test",
+				AppAction:  AppAction{Type: ActionCreate, Desired: &AppState{}},
+			},
+			wantErr: false,
+		},
+		{
+			name: "empty plan",
+			plan: &DeploymentPlan{
+				ConfigName: "test",
+				AppAction:  AppAction{Type: ActionNone},
+			},
+			wantErr: true,
+			errMsg:  "deployment plan is empty",
+		},
+	}
+
+	for _, tt := range tests {
+		t.Run(tt.name, func(t *testing.T) {
+			ctx := context.Background()
+			err := manager.ValidatePrerequisites(ctx, tt.plan)
+
+			if tt.wantErr {
+				assert.Error(t, err)
+				if tt.errMsg != "" {
+					assert.Contains(t, err.Error(), tt.errMsg)
+				}
+			} else {
+				assert.NoError(t, err)
+			}
+		})
+	}
+}
+
+func TestRollbackDeployment(t *testing.T) {
+	mockClient := &MockResourceClient{}
+	logger := &TestLogger{}
+	manager := NewResourceManager(mockClient, WithLogger(logger), WithStrategyConfig(createTestStrategyConfig()))
+
+	// Create result with completed actions
+	plan := createTestDeploymentPlan()
+	result := &ExecutionResult{
+		Plan: plan,
+		CompletedActions: []ActionResult{
+			{
+				Type:    ActionCreate,
+				Target:  "test-app",
+				Success: true,
+			},
+			{
+				Type:    ActionCreate,
+				Target:  "test-app-1.0.0-instance",
+				Success: true,
+			},
+		},
+		FailedActions: []ActionResult{},
+	}
+
+	// Mock rollback operations
+	mockClient.On("DeleteAppInstance", mock.Anything, mock.AnythingOfType("edgeconnect.AppInstanceKey"), "US").
+		Return(nil)
+	mockClient.On("DeleteApp", mock.Anything, mock.AnythingOfType("edgeconnect.AppKey"), "US").
+		Return(nil)
+
+	ctx := context.Background()
+	err := manager.RollbackDeployment(ctx, result)
+
+	require.NoError(t, err)
+	mockClient.AssertExpectations(t)
+
+	// Check rollback was logged
+	assert.Greater(t, len(logger.messages), 0)
+}
+
+func TestRollbackDeploymentFailure(t *testing.T) {
+	mockClient := &MockResourceClient{}
+	manager := NewResourceManager(mockClient)
+
+	plan := createTestDeploymentPlan()
+	result := &ExecutionResult{
+		Plan: plan,
+		CompletedActions: []ActionResult{
+			{
+				Type:    ActionCreate,
+				Target:  "test-app",
+				Success: true,
+			},
+		},
+	}
+
+	// Mock rollback failure
+	mockClient.On("DeleteApp", mock.Anything, mock.AnythingOfType("edgeconnect.AppKey"), "US").
+		Return(&edgeconnect.APIError{StatusCode: 500, Messages: []string{"Delete failed"}})
+
+	ctx := context.Background()
+	err := manager.RollbackDeployment(ctx, result)
+
+	require.Error(t, err)
+	assert.Contains(t, err.Error(), "rollback encountered")
+	mockClient.AssertExpectations(t)
+}
+
+func TestConvertNetworkRules(t *testing.T) {
+	network := &config.NetworkConfig{
+		OutboundConnections: []config.OutboundConnection{
+			{
+				Protocol:     "tcp",
+				PortRangeMin: 80,
+				PortRangeMax: 80,
+				RemoteCIDR:   "0.0.0.0/0",
+			},
+			{
+				Protocol:     "tcp",
+				PortRangeMin: 443,
+				PortRangeMax: 443,
+				RemoteCIDR:   "10.0.0.0/8",
+			},
+		},
+	}
+
+	rules := convertNetworkRules(network)
+	require.Len(t, rules, 2)
+
+	assert.Equal(t, "tcp", rules[0].Protocol)
+	assert.Equal(t, 80, rules[0].PortRangeMin)
+	assert.Equal(t, 80, rules[0].PortRangeMax)
+	assert.Equal(t, "0.0.0.0/0", rules[0].RemoteCIDR)
+
+	assert.Equal(t, "tcp", rules[1].Protocol)
+	assert.Equal(t, 443, rules[1].PortRangeMin)
+	assert.Equal(t, 443, rules[1].PortRangeMax)
+	assert.Equal(t, "10.0.0.0/8", rules[1].RemoteCIDR)
+}
diff --git a/internal/apply/v1/planner.go b/internal/apply/v1/planner.go
new file mode 100644
index 0000000..33b8d9c
--- /dev/null
+++ b/internal/apply/v1/planner.go
@@ -0,0 +1,555 @@
+// ABOUTME: Deployment planner for EdgeConnect apply command with intelligent state comparison
+// ABOUTME: Analyzes desired vs current state to generate optimal deployment plans with minimal API calls
+package v1
+
+import (
+	"context"
+	"crypto/sha256"
+	"fmt"
+	"io"
+	"os"
+	"strings"
+	"time"
+
+	"edp.buildth.ing/DevFW-CICD/edge-connect-client/internal/config"
+	"edp.buildth.ing/DevFW-CICD/edge-connect-client/sdk/edgeconnect"
+)
+
+// EdgeConnectClientInterface defines the methods needed for deployment planning
+type EdgeConnectClientInterface interface {
+	ShowApp(ctx context.Context, appKey edgeconnect.AppKey, region string) (edgeconnect.App, error)
+	CreateApp(ctx context.Context, input *edgeconnect.NewAppInput) error
+	UpdateApp(ctx context.Context, input *edgeconnect.UpdateAppInput) error
+	DeleteApp(ctx context.Context, appKey edgeconnect.AppKey, region string) error
+	ShowAppInstance(ctx context.Context, instanceKey edgeconnect.AppInstanceKey, region string) (edgeconnect.AppInstance, error)
+	CreateAppInstance(ctx context.Context, input *edgeconnect.NewAppInstanceInput) error
+	UpdateAppInstance(ctx context.Context, input *edgeconnect.UpdateAppInstanceInput) error
+	DeleteAppInstance(ctx context.Context, instanceKey edgeconnect.AppInstanceKey, region string) error
+}
+
+// Planner defines the interface for deployment planning
+type Planner interface {
+	// Plan analyzes the configuration and current state to generate a deployment plan
+	Plan(ctx context.Context, config *config.EdgeConnectConfig) (*PlanResult, error)
+
+	// PlanWithOptions allows customization of planning behavior
+	PlanWithOptions(ctx context.Context, config *config.EdgeConnectConfig, opts PlanOptions) (*PlanResult, error)
+}
+
+// PlanOptions provides configuration for the planning process
+type PlanOptions struct {
+	// DryRun indicates this is a planning-only operation
+	DryRun bool
+
+	// Force indicates to proceed even with warnings
+	Force bool
+
+	// SkipStateCheck bypasses current state queries (useful for testing)
+	SkipStateCheck bool
+
+	// ParallelQueries enables parallel state fetching
+	ParallelQueries bool
+
+	// Timeout for API operations
+	Timeout time.Duration
+}
+
+// DefaultPlanOptions returns sensible default planning options
+func DefaultPlanOptions() PlanOptions {
+	return PlanOptions{
+		DryRun:          false,
+		Force:           false,
+		SkipStateCheck:  false,
+		ParallelQueries: true,
+		Timeout:         30 * time.Second,
+	}
+}
+
+// EdgeConnectPlanner implements the Planner interface for EdgeConnect
+type EdgeConnectPlanner struct {
+	client EdgeConnectClientInterface
+}
+
+// NewPlanner creates a new EdgeConnect deployment planner
+func NewPlanner(client EdgeConnectClientInterface) Planner {
+	return &EdgeConnectPlanner{
+		client: client,
+	}
+}
+
+// Plan analyzes the configuration and generates a deployment plan
+func (p *EdgeConnectPlanner) Plan(ctx context.Context, config *config.EdgeConnectConfig) (*PlanResult, error) {
+	return p.PlanWithOptions(ctx, config, DefaultPlanOptions())
+}
+
+// PlanWithOptions generates a deployment plan with custom options
+func (p *EdgeConnectPlanner) PlanWithOptions(ctx context.Context, config *config.EdgeConnectConfig, opts PlanOptions) (*PlanResult, error) {
+	startTime := time.Now()
+	var warnings []string
+
+	// Create the deployment plan structure
+	plan := &DeploymentPlan{
+		ConfigName: config.Metadata.Name,
+		CreatedAt:  startTime,
+		DryRun:     opts.DryRun,
+	}
+
+	// Step 1: Plan application state
+	appAction, appWarnings, err := p.planAppAction(ctx, config, opts)
+	if err != nil {
+		return &PlanResult{Error: err}, err
+	}
+	plan.AppAction = *appAction
+	warnings = append(warnings, appWarnings...)
+
+	// Step 2: Plan instance actions
+	instanceActions, instanceWarnings, err := p.planInstanceActions(ctx, config, opts)
+	if err != nil {
+		return &PlanResult{Error: err}, err
+	}
+	plan.InstanceActions = instanceActions
+	warnings = append(warnings, instanceWarnings...)
+
+	// Step 3: Calculate plan metadata
+	p.calculatePlanMetadata(plan)
+
+	// Step 4: Generate summary
+	plan.Summary = plan.GenerateSummary()
+
+	// Step 5: Validate the plan
+	if err := plan.Validate(); err != nil {
+		return &PlanResult{Error: fmt.Errorf("invalid deployment plan: %w", err)}, err
+	}
+
+	return &PlanResult{
+		Plan:     plan,
+		Warnings: warnings,
+	}, nil
+}
+
+// planAppAction determines what action needs to be taken for the application
+func (p *EdgeConnectPlanner) planAppAction(ctx context.Context, config *config.EdgeConnectConfig, opts PlanOptions) (*AppAction, []string, error) {
+	var warnings []string
+
+	// Build desired app state
+	desired := &AppState{
+		Name:         config.Metadata.Name,
+		Version:      config.Metadata.AppVersion,
+		Organization: config.Metadata.Organization, // Use first infra template for org
+		Region:       config.Spec.InfraTemplate[0].Region,       // Use first infra template for region
+		Exists:       false,                                     // Will be set based on current state
+	}
+
+	if config.Spec.IsK8sApp() {
+		desired.AppType = AppTypeK8s
+	} else {
+		desired.AppType = AppTypeDocker
+	}
+
+	// Extract outbound connections from config
+	if config.Spec.Network != nil {
+		desired.OutboundConnections = make([]SecurityRule, len(config.Spec.Network.OutboundConnections))
+		for i, conn := range config.Spec.Network.OutboundConnections {
+			desired.OutboundConnections[i] = SecurityRule{
+				Protocol:     conn.Protocol,
+				PortRangeMin: conn.PortRangeMin,
+				PortRangeMax: conn.PortRangeMax,
+				RemoteCIDR:   conn.RemoteCIDR,
+			}
+		}
+	}
+
+	// Calculate manifest hash
+	manifestHash, err := p.calculateManifestHash(config.Spec.GetManifestFile())
+	if err != nil {
+		return nil, warnings, fmt.Errorf("failed to calculate manifest hash: %w", err)
+	}
+	desired.ManifestHash = manifestHash
+
+	action := &AppAction{
+		Type:         ActionNone,
+		Desired:      desired,
+		ManifestHash: manifestHash,
+		Reason:       "No action needed",
+	}
+
+	// Skip state check if requested (useful for testing)
+	if opts.SkipStateCheck {
+		action.Type = ActionCreate
+		action.Reason = "Creating app (state check skipped)"
+		action.Changes = []string{"Create new application"}
+		return action, warnings, nil
+	}
+
+	// Query current app state
+	current, err := p.getCurrentAppState(ctx, desired, opts.Timeout)
+	if err != nil {
+		// If app doesn't exist, we need to create it
+		if isResourceNotFoundError(err) {
+			action.Type = ActionCreate
+			action.Reason = "Application does not exist"
+			action.Changes = []string{"Create new application"}
+			return action, warnings, nil
+		}
+		return nil, warnings, fmt.Errorf("failed to query current app state: %w", err)
+	}
+
+	action.Current = current
+
+	// Compare current vs desired state
+	changes, manifestChanged := p.compareAppStates(current, desired)
+	action.ManifestChanged = manifestChanged
+
+	if len(changes) > 0 {
+		action.Type = ActionUpdate
+		action.Changes = changes
+		action.Reason = "Application configuration has changed"
+		fmt.Printf("Changes: %v\n", changes)
+
+		if manifestChanged {
+			warnings = append(warnings, "Manifest file has changed - instances may need to be recreated")
+		}
+	}
+
+	return action, warnings, nil
+}
+
+// planInstanceActions determines what actions need to be taken for instances
+func (p *EdgeConnectPlanner) planInstanceActions(ctx context.Context, config *config.EdgeConnectConfig, opts PlanOptions) ([]InstanceAction, []string, error) {
+	var actions []InstanceAction
+	var warnings []string
+
+	for _, infra := range config.Spec.InfraTemplate {
+		instanceName := getInstanceName(config.Metadata.Name, config.Metadata.AppVersion)
+
+		desired := &InstanceState{
+			Name:         instanceName,
+			AppVersion:   config.Metadata.AppVersion,
+			Organization: config.Metadata.Organization,
+			Region:       infra.Region,
+			CloudletOrg:  infra.CloudletOrg,
+			CloudletName: infra.CloudletName,
+			FlavorName:   infra.FlavorName,
+			Exists:       false,
+		}
+
+		action := &InstanceAction{
+			Type:         ActionNone,
+			Target:       infra,
+			Desired:      desired,
+			InstanceName: instanceName,
+			Reason:       "No action needed",
+		}
+
+		// Skip state check if requested
+		if opts.SkipStateCheck {
+			action.Type = ActionCreate
+			action.Reason = "Creating instance (state check skipped)"
+			action.Changes = []string{"Create new instance"}
+			actions = append(actions, *action)
+			continue
+		}
+
+		// Query current instance state
+		current, err := p.getCurrentInstanceState(ctx, desired, opts.Timeout)
+		if err != nil {
+			// If instance doesn't exist, we need to create it
+			if isResourceNotFoundError(err) {
+				action.Type = ActionCreate
+				action.Reason = "Instance does not exist"
+				action.Changes = []string{"Create new instance"}
+				actions = append(actions, *action)
+				continue
+			}
+			return nil, warnings, fmt.Errorf("failed to query current instance state: %w", err)
+		}
+
+		action.Current = current
+
+		// Compare current vs desired state
+		changes := p.compareInstanceStates(current, desired)
+		if len(changes) > 0 {
+			action.Type = ActionUpdate
+			action.Changes = changes
+			action.Reason = "Instance configuration has changed"
+		}
+
+		actions = append(actions, *action)
+	}
+
+	return actions, warnings, nil
+}
+
+// getCurrentAppState queries the current state of an application
+func (p *EdgeConnectPlanner) getCurrentAppState(ctx context.Context, desired *AppState, timeout time.Duration) (*AppState, error) {
+	timeoutCtx, cancel := context.WithTimeout(ctx, timeout)
+	defer cancel()
+
+	appKey := edgeconnect.AppKey{
+		Organization: desired.Organization,
+		Name:         desired.Name,
+		Version:      desired.Version,
+	}
+
+	app, err := p.client.ShowApp(timeoutCtx, appKey, desired.Region)
+	if err != nil {
+		return nil, err
+	}
+
+	current := &AppState{
+		Name:         app.Key.Name,
+		Version:      app.Key.Version,
+		Organization: app.Key.Organization,
+		Region:       desired.Region,
+		Exists:       true,
+		LastUpdated:  time.Now(), // EdgeConnect doesn't provide this, so use current time
+	}
+
+	// Calculate current manifest hash
+	hasher := sha256.New()
+	hasher.Write([]byte(app.DeploymentManifest))
+	current.ManifestHash = fmt.Sprintf("%x", hasher.Sum(nil))
+
+	// Note: EdgeConnect API doesn't currently support annotations for manifest hash tracking
+	// This would be implemented when the API supports it
+
+	// Determine app type based on deployment type
+	if app.Deployment == "kubernetes" {
+		current.AppType = AppTypeK8s
+	} else {
+		current.AppType = AppTypeDocker
+	}
+
+	// Extract outbound connections from the app
+	current.OutboundConnections = make([]SecurityRule, len(app.RequiredOutboundConnections))
+	for i, conn := range app.RequiredOutboundConnections {
+		current.OutboundConnections[i] = SecurityRule{
+			Protocol:     conn.Protocol,
+			PortRangeMin: conn.PortRangeMin,
+			PortRangeMax: conn.PortRangeMax,
+			RemoteCIDR:   conn.RemoteCIDR,
+		}
+	}
+
+	return current, nil
+}
+
+// getCurrentInstanceState queries the current state of an application instance
+func (p *EdgeConnectPlanner) getCurrentInstanceState(ctx context.Context, desired *InstanceState, timeout time.Duration) (*InstanceState, error) {
+	timeoutCtx, cancel := context.WithTimeout(ctx, timeout)
+	defer cancel()
+
+	instanceKey := edgeconnect.AppInstanceKey{
+		Organization: desired.Organization,
+		Name:         desired.Name,
+		CloudletKey: edgeconnect.CloudletKey{
+			Organization: desired.CloudletOrg,
+			Name:         desired.CloudletName,
+		},
+	}
+
+	instance, err := p.client.ShowAppInstance(timeoutCtx, instanceKey, desired.Region)
+	if err != nil {
+		return nil, err
+	}
+
+	current := &InstanceState{
+		Name:         instance.Key.Name,
+		AppName:      instance.AppKey.Name,
+		AppVersion:   instance.AppKey.Version,
+		Organization: instance.Key.Organization,
+		Region:       desired.Region,
+		CloudletOrg:  instance.Key.CloudletKey.Organization,
+		CloudletName: instance.Key.CloudletKey.Name,
+		FlavorName:   instance.Flavor.Name,
+		State:        instance.State,
+		PowerState:   instance.PowerState,
+		Exists:       true,
+		LastUpdated:  time.Now(), // EdgeConnect doesn't provide this
+	}
+
+	return current, nil
+}
+
+// compareAppStates compares current and desired app states and returns changes
+func (p *EdgeConnectPlanner) compareAppStates(current, desired *AppState) ([]string, bool) {
+	var changes []string
+	manifestChanged := false
+
+	// Compare manifest hash - only if both states have hash values
+	// Since EdgeConnect API doesn't support annotations yet, skip manifest hash comparison for now
+	// This would be implemented when the API supports manifest hash tracking
+	if current.ManifestHash != "" && desired.ManifestHash != "" && current.ManifestHash != desired.ManifestHash {
+		changes = append(changes, fmt.Sprintf("Manifest hash changed: %s -> %s", current.ManifestHash, desired.ManifestHash))
+		manifestChanged = true
+	}
+
+	// Compare app type
+	if current.AppType != desired.AppType {
+		changes = append(changes, fmt.Sprintf("App type changed: %s -> %s", current.AppType, desired.AppType))
+	}
+
+	// Compare outbound connections
+	outboundChanges := p.compareOutboundConnections(current.OutboundConnections, desired.OutboundConnections)
+	if len(outboundChanges) > 0 {
+		sb:= strings.Builder{}
+		sb.WriteString("Outbound connections changed:\n")
+		for _, change := range outboundChanges {
+			sb.WriteString(change)
+			sb.WriteString("\n")
+		}
+		changes = append(changes, sb.String())
+	}
+
+	return changes, manifestChanged
+}
+
+// compareOutboundConnections compares two sets of outbound connections for equality
+func (p *EdgeConnectPlanner) compareOutboundConnections(current, desired []SecurityRule) []string {
+	var changes []string
+	makeMap := func(rules []SecurityRule) map[string]SecurityRule {
+		m := make(map[string]SecurityRule, len(rules))
+		for _, r := range rules {
+			key := fmt.Sprintf("%s:%d-%d:%s",
+				strings.ToLower(r.Protocol),
+				r.PortRangeMin,
+				r.PortRangeMax,
+				r.RemoteCIDR,
+			)
+			m[key] = r
+		}
+		return m
+	}
+
+	currentMap := makeMap(current)
+	desiredMap := makeMap(desired)
+
+	// Find added and modified rules
+	for key, rule := range desiredMap {
+		if _, exists := currentMap[key]; !exists {
+			changes = append(changes, fmt.Sprintf("  - Added outbound connection: %s %d-%d to %s", rule.Protocol, rule.PortRangeMin, rule.PortRangeMax, rule.RemoteCIDR))
+		}
+	}
+
+	// Find removed rules
+	for key, rule := range currentMap {
+		if _, exists := desiredMap[key]; !exists {
+			changes = append(changes, fmt.Sprintf("  - Removed outbound connection: %s %d-%d to %s", rule.Protocol, rule.PortRangeMin, rule.PortRangeMax, rule.RemoteCIDR))
+		}
+	}
+
+	return changes
+}
+
+// compareInstanceStates compares current and desired instance states and returns changes
+func (p *EdgeConnectPlanner) compareInstanceStates(current, desired *InstanceState) []string {
+	var changes []string
+
+	if current.FlavorName != desired.FlavorName {
+		changes = append(changes, fmt.Sprintf("Flavor changed: %s -> %s", current.FlavorName, desired.FlavorName))
+	}
+
+	if current.CloudletName != desired.CloudletName {
+		changes = append(changes, fmt.Sprintf("Cloudlet changed: %s -> %s", current.CloudletName, desired.CloudletName))
+	}
+
+	if current.CloudletOrg != desired.CloudletOrg {
+		changes = append(changes, fmt.Sprintf("Cloudlet org changed: %s -> %s", current.CloudletOrg, desired.CloudletOrg))
+	}
+
+	return changes
+}
+
+// calculateManifestHash computes the SHA256 hash of a manifest file
+func (p *EdgeConnectPlanner) calculateManifestHash(manifestPath string) (string, error) {
+	if manifestPath == "" {
+		return "", nil
+	}
+
+	file, err := os.Open(manifestPath)
+	if err != nil {
+		return "", fmt.Errorf("failed to open manifest file: %w", err)
+	}
+	defer file.Close()
+
+	hasher := sha256.New()
+	if _, err := io.Copy(hasher, file); err != nil {
+		return "", fmt.Errorf("failed to hash manifest file: %w", err)
+	}
+
+	return fmt.Sprintf("%x", hasher.Sum(nil)), nil
+}
+
+// calculatePlanMetadata computes metadata for the deployment plan
+func (p *EdgeConnectPlanner) calculatePlanMetadata(plan *DeploymentPlan) {
+	totalActions := 0
+
+	if plan.AppAction.Type != ActionNone {
+		totalActions++
+	}
+
+	for _, action := range plan.InstanceActions {
+		if action.Type != ActionNone {
+			totalActions++
+		}
+	}
+
+	plan.TotalActions = totalActions
+
+	// Estimate duration based on action types and counts
+	plan.EstimatedDuration = p.estimateDeploymentDuration(plan)
+}
+
+// estimateDeploymentDuration provides a rough estimate of deployment time
+func (p *EdgeConnectPlanner) estimateDeploymentDuration(plan *DeploymentPlan) time.Duration {
+	var duration time.Duration
+
+	// App operations
+	if plan.AppAction.Type == ActionCreate {
+		duration += 30 * time.Second
+	} else if plan.AppAction.Type == ActionUpdate {
+		duration += 15 * time.Second
+	}
+
+	// Instance operations (can be done in parallel)
+	instanceDuration := time.Duration(0)
+	for _, action := range plan.InstanceActions {
+		if action.Type == ActionCreate {
+			instanceDuration = max(instanceDuration, 2*time.Minute)
+		} else if action.Type == ActionUpdate {
+			instanceDuration = max(instanceDuration, 1*time.Minute)
+		}
+	}
+
+	duration += instanceDuration
+
+	// Add buffer time
+	duration += 30 * time.Second
+
+	return duration
+}
+
+// isResourceNotFoundError checks if an error indicates a resource was not found
+func isResourceNotFoundError(err error) bool {
+	if err == nil {
+		return false
+	}
+
+	errStr := strings.ToLower(err.Error())
+	return strings.Contains(errStr, "not found") ||
+		strings.Contains(errStr, "does not exist") ||
+		strings.Contains(errStr, "404")
+}
+
+// max returns the larger of two durations
+func max(a, b time.Duration) time.Duration {
+	if a > b {
+		return a
+	}
+	return b
+}
+
+// getInstanceName generates the instance name following the pattern: appName-appVersion-instance
+func getInstanceName(appName, appVersion string) string {
+	return fmt.Sprintf("%s-%s-instance", appName, appVersion)
+}
diff --git a/internal/apply/v1/planner_test.go b/internal/apply/v1/planner_test.go
new file mode 100644
index 0000000..8c1e48a
--- /dev/null
+++ b/internal/apply/v1/planner_test.go
@@ -0,0 +1,663 @@
+// ABOUTME: Comprehensive tests for EdgeConnect deployment planner with mock scenarios
+// ABOUTME: Tests planning logic, state comparison, and various deployment scenarios
+package v1
+
+import (
+	"context"
+	"os"
+	"path/filepath"
+	"testing"
+	"time"
+
+	"edp.buildth.ing/DevFW-CICD/edge-connect-client/internal/config"
+	"edp.buildth.ing/DevFW-CICD/edge-connect-client/sdk/edgeconnect"
+	"github.com/stretchr/testify/assert"
+	"github.com/stretchr/testify/mock"
+	"github.com/stretchr/testify/require"
+)
+
+// MockEdgeConnectClient is a mock implementation of the EdgeConnect client
+type MockEdgeConnectClient struct {
+	mock.Mock
+}
+
+func (m *MockEdgeConnectClient) ShowApp(ctx context.Context, appKey edgeconnect.AppKey, region string) (edgeconnect.App, error) {
+	args := m.Called(ctx, appKey, region)
+	if args.Get(0) == nil {
+		return edgeconnect.App{}, args.Error(1)
+	}
+	return args.Get(0).(edgeconnect.App), args.Error(1)
+}
+
+func (m *MockEdgeConnectClient) ShowAppInstance(ctx context.Context, instanceKey edgeconnect.AppInstanceKey, region string) (edgeconnect.AppInstance, error) {
+	args := m.Called(ctx, instanceKey, region)
+	if args.Get(0) == nil {
+		return edgeconnect.AppInstance{}, args.Error(1)
+	}
+	return args.Get(0).(edgeconnect.AppInstance), args.Error(1)
+}
+
+func (m *MockEdgeConnectClient) CreateApp(ctx context.Context, input *edgeconnect.NewAppInput) error {
+	args := m.Called(ctx, input)
+	return args.Error(0)
+}
+
+func (m *MockEdgeConnectClient) CreateAppInstance(ctx context.Context, input *edgeconnect.NewAppInstanceInput) error {
+	args := m.Called(ctx, input)
+	return args.Error(0)
+}
+
+func (m *MockEdgeConnectClient) DeleteApp(ctx context.Context, appKey edgeconnect.AppKey, region string) error {
+	args := m.Called(ctx, appKey, region)
+	return args.Error(0)
+}
+
+func (m *MockEdgeConnectClient) UpdateApp(ctx context.Context, input *edgeconnect.UpdateAppInput) error {
+	args := m.Called(ctx, input)
+	return args.Error(0)
+}
+
+func (m *MockEdgeConnectClient) UpdateAppInstance(ctx context.Context, input *edgeconnect.UpdateAppInstanceInput) error {
+	args := m.Called(ctx, input)
+	return args.Error(0)
+}
+
+func (m *MockEdgeConnectClient) DeleteAppInstance(ctx context.Context, instanceKey edgeconnect.AppInstanceKey, region string) error {
+	args := m.Called(ctx, instanceKey, region)
+	return args.Error(0)
+}
+
+func (m *MockEdgeConnectClient) ShowApps(ctx context.Context, appKey edgeconnect.AppKey, region string) ([]edgeconnect.App, error) {
+	args := m.Called(ctx, appKey, region)
+	if args.Get(0) == nil {
+		return nil, args.Error(1)
+	}
+	return args.Get(0).([]edgeconnect.App), args.Error(1)
+}
+
+func (m *MockEdgeConnectClient) ShowAppInstances(ctx context.Context, instanceKey edgeconnect.AppInstanceKey, region string) ([]edgeconnect.AppInstance, error) {
+	args := m.Called(ctx, instanceKey, region)
+	if args.Get(0) == nil {
+		return nil, args.Error(1)
+	}
+	return args.Get(0).([]edgeconnect.AppInstance), args.Error(1)
+}
+
+func TestNewPlanner(t *testing.T) {
+	mockClient := &MockEdgeConnectClient{}
+	planner := NewPlanner(mockClient)
+
+	assert.NotNil(t, planner)
+	assert.IsType(t, &EdgeConnectPlanner{}, planner)
+}
+
+func TestDefaultPlanOptions(t *testing.T) {
+	opts := DefaultPlanOptions()
+
+	assert.False(t, opts.DryRun)
+	assert.False(t, opts.Force)
+	assert.False(t, opts.SkipStateCheck)
+	assert.True(t, opts.ParallelQueries)
+	assert.Equal(t, 30*time.Second, opts.Timeout)
+}
+
+func createTestConfig(t *testing.T) *config.EdgeConnectConfig {
+	// Create temporary manifest file
+	tempDir := t.TempDir()
+	manifestFile := filepath.Join(tempDir, "test-manifest.yaml")
+	manifestContent := "apiVersion: v1\nkind: Pod\nmetadata:\n  name: test\n"
+	err := os.WriteFile(manifestFile, []byte(manifestContent), 0644)
+	require.NoError(t, err)
+
+	return &config.EdgeConnectConfig{
+		Kind: "edgeconnect-deployment",
+		Metadata: config.Metadata{
+			Name:         "test-app",
+			AppVersion:   "1.0.0",
+			Organization: "testorg",
+		},
+		Spec: config.Spec{
+			K8sApp: &config.K8sApp{
+				ManifestFile: manifestFile,
+			},
+			InfraTemplate: []config.InfraTemplate{
+				{
+					Region:       "US",
+					CloudletOrg:  "TestCloudletOrg",
+					CloudletName: "TestCloudlet",
+					FlavorName:   "small",
+				},
+			},
+			Network: &config.NetworkConfig{
+				OutboundConnections: []config.OutboundConnection{
+					{
+						Protocol:     "tcp",
+						PortRangeMin: 80,
+						PortRangeMax: 80,
+						RemoteCIDR:   "0.0.0.0/0",
+					},
+				},
+			},
+		},
+	}
+}
+
+func TestPlanNewDeployment(t *testing.T) {
+	mockClient := &MockEdgeConnectClient{}
+	planner := NewPlanner(mockClient)
+	testConfig := createTestConfig(t)
+
+	// Mock API calls to return "not found" errors
+	mockClient.On("ShowApp", mock.Anything, mock.AnythingOfType("edgeconnect.AppKey"), "US").
+		Return(nil, &edgeconnect.APIError{StatusCode: 404, Messages: []string{"App not found"}})
+
+	mockClient.On("ShowAppInstance", mock.Anything, mock.AnythingOfType("edgeconnect.AppInstanceKey"), "US").
+		Return(nil, &edgeconnect.APIError{StatusCode: 404, Messages: []string{"Instance not found"}})
+
+	ctx := context.Background()
+	result, err := planner.Plan(ctx, testConfig)
+
+	require.NoError(t, err)
+	require.NotNil(t, result)
+	require.NotNil(t, result.Plan)
+	require.NoError(t, result.Error)
+
+	plan := result.Plan
+	assert.Equal(t, "test-app", plan.ConfigName)
+	assert.Equal(t, ActionCreate, plan.AppAction.Type)
+	assert.Equal(t, "Application does not exist", plan.AppAction.Reason)
+
+	require.Len(t, plan.InstanceActions, 1)
+	assert.Equal(t, ActionCreate, plan.InstanceActions[0].Type)
+	assert.Equal(t, "Instance does not exist", plan.InstanceActions[0].Reason)
+
+	assert.Equal(t, 2, plan.TotalActions) // 1 app + 1 instance
+	assert.False(t, plan.IsEmpty())
+
+	mockClient.AssertExpectations(t)
+}
+
+func TestPlanExistingDeploymentNoChanges(t *testing.T) {
+	mockClient := &MockEdgeConnectClient{}
+	planner := NewPlanner(mockClient)
+	testConfig := createTestConfig(t)
+
+	// Note: We would calculate expected manifest hash here when API supports it
+
+	// Mock existing app with same manifest hash and outbound connections
+	manifestContent := "apiVersion: v1\nkind: Pod\nmetadata:\n  name: test\n"
+	existingApp := &edgeconnect.App{
+		Key: edgeconnect.AppKey{
+			Organization: "testorg",
+			Name:         "test-app",
+			Version:      "1.0.0",
+		},
+		Deployment:         "kubernetes",
+		DeploymentManifest: manifestContent,
+		RequiredOutboundConnections: []edgeconnect.SecurityRule{
+			{
+				Protocol:     "tcp",
+				PortRangeMin: 80,
+				PortRangeMax: 80,
+				RemoteCIDR:   "0.0.0.0/0",
+			},
+		},
+		// Note: Manifest hash tracking would be implemented when API supports annotations
+	}
+
+	// Mock existing instance
+	existingInstance := &edgeconnect.AppInstance{
+		Key: edgeconnect.AppInstanceKey{
+			Organization: "testorg",
+			Name:         "test-app-1.0.0-instance",
+			CloudletKey: edgeconnect.CloudletKey{
+				Organization: "TestCloudletOrg",
+				Name:         "TestCloudlet",
+			},
+		},
+		AppKey: edgeconnect.AppKey{
+			Organization: "testorg",
+			Name:         "test-app",
+			Version:      "1.0.0",
+		},
+		Flavor: edgeconnect.Flavor{
+			Name: "small",
+		},
+		State:      "Ready",
+		PowerState: "PowerOn",
+	}
+
+	mockClient.On("ShowApp", mock.Anything, mock.AnythingOfType("edgeconnect.AppKey"), "US").
+		Return(*existingApp, nil)
+
+	mockClient.On("ShowAppInstance", mock.Anything, mock.AnythingOfType("edgeconnect.AppInstanceKey"), "US").
+		Return(*existingInstance, nil)
+
+	ctx := context.Background()
+	result, err := planner.Plan(ctx, testConfig)
+
+	require.NoError(t, err)
+	require.NotNil(t, result)
+	require.NotNil(t, result.Plan)
+
+	plan := result.Plan
+	assert.Equal(t, ActionNone, plan.AppAction.Type)
+	assert.Len(t, plan.InstanceActions, 1)
+	assert.Equal(t, ActionNone, plan.InstanceActions[0].Type)
+	assert.Equal(t, 0, plan.TotalActions)
+	assert.True(t, plan.IsEmpty())
+	assert.Contains(t, plan.Summary, "No changes required")
+
+	mockClient.AssertExpectations(t)
+}
+
+func TestPlanWithOptions(t *testing.T) {
+	mockClient := &MockEdgeConnectClient{}
+	planner := NewPlanner(mockClient)
+	testConfig := createTestConfig(t)
+
+	opts := PlanOptions{
+		DryRun:         true,
+		SkipStateCheck: true,
+		Timeout:        10 * time.Second,
+	}
+
+	ctx := context.Background()
+	result, err := planner.PlanWithOptions(ctx, testConfig, opts)
+
+	require.NoError(t, err)
+	require.NotNil(t, result)
+	require.NotNil(t, result.Plan)
+
+	plan := result.Plan
+	assert.True(t, plan.DryRun)
+	assert.Equal(t, ActionCreate, plan.AppAction.Type)
+	assert.Contains(t, plan.AppAction.Reason, "state check skipped")
+
+	// No API calls should be made when SkipStateCheck is true
+	mockClient.AssertNotCalled(t, "ShowApp")
+	mockClient.AssertNotCalled(t, "ShowAppInstance")
+}
+
+func TestPlanMultipleInfrastructures(t *testing.T) {
+	mockClient := &MockEdgeConnectClient{}
+	planner := NewPlanner(mockClient)
+	testConfig := createTestConfig(t)
+
+	// Add a second infrastructure target
+	testConfig.Spec.InfraTemplate = append(testConfig.Spec.InfraTemplate, config.InfraTemplate{
+		Region:       "EU",
+		CloudletOrg:  "EUCloudletOrg",
+		CloudletName: "EUCloudlet",
+		FlavorName:   "medium",
+	})
+
+	// Mock API calls to return "not found" errors
+	mockClient.On("ShowApp", mock.Anything, mock.AnythingOfType("edgeconnect.AppKey"), "US").
+		Return(nil, &edgeconnect.APIError{StatusCode: 404, Messages: []string{"App not found"}})
+
+	mockClient.On("ShowAppInstance", mock.Anything, mock.AnythingOfType("edgeconnect.AppInstanceKey"), "US").
+		Return(nil, &edgeconnect.APIError{StatusCode: 404, Messages: []string{"Instance not found"}})
+
+	mockClient.On("ShowAppInstance", mock.Anything, mock.AnythingOfType("edgeconnect.AppInstanceKey"), "EU").
+		Return(nil, &edgeconnect.APIError{StatusCode: 404, Messages: []string{"Instance not found"}})
+
+	ctx := context.Background()
+	result, err := planner.Plan(ctx, testConfig)
+
+	require.NoError(t, err)
+	require.NotNil(t, result)
+	require.NotNil(t, result.Plan)
+
+	plan := result.Plan
+	assert.Equal(t, ActionCreate, plan.AppAction.Type)
+
+	// Should have 2 instance actions, one for each infrastructure
+	require.Len(t, plan.InstanceActions, 2)
+	assert.Equal(t, ActionCreate, plan.InstanceActions[0].Type)
+	assert.Equal(t, ActionCreate, plan.InstanceActions[1].Type)
+
+	assert.Equal(t, 3, plan.TotalActions) // 1 app + 2 instances
+
+	// Test cloudlet and region aggregation
+	cloudlets := plan.GetTargetCloudlets()
+	regions := plan.GetTargetRegions()
+	assert.Len(t, cloudlets, 2)
+	assert.Len(t, regions, 2)
+
+	mockClient.AssertExpectations(t)
+}
+
+func TestCalculateManifestHash(t *testing.T) {
+	planner := &EdgeConnectPlanner{}
+	tempDir := t.TempDir()
+
+	// Create test file
+	testFile := filepath.Join(tempDir, "test.yaml")
+	content := "test content for hashing"
+	err := os.WriteFile(testFile, []byte(content), 0644)
+	require.NoError(t, err)
+
+	hash1, err := planner.calculateManifestHash(testFile)
+	require.NoError(t, err)
+	assert.NotEmpty(t, hash1)
+	assert.Len(t, hash1, 64) // SHA256 hex string length
+
+	// Same content should produce same hash
+	hash2, err := planner.calculateManifestHash(testFile)
+	require.NoError(t, err)
+	assert.Equal(t, hash1, hash2)
+
+	// Different content should produce different hash
+	err = os.WriteFile(testFile, []byte("different content"), 0644)
+	require.NoError(t, err)
+
+	hash3, err := planner.calculateManifestHash(testFile)
+	require.NoError(t, err)
+	assert.NotEqual(t, hash1, hash3)
+
+	// Empty file path should return empty hash
+	hash4, err := planner.calculateManifestHash("")
+	require.NoError(t, err)
+	assert.Empty(t, hash4)
+
+	// Non-existent file should return error
+	_, err = planner.calculateManifestHash("/non/existent/file")
+	assert.Error(t, err)
+}
+
+func TestCompareAppStates(t *testing.T) {
+	planner := &EdgeConnectPlanner{}
+
+	current := &AppState{
+		Name:         "test-app",
+		Version:      "1.0.0",
+		AppType:      AppTypeK8s,
+		ManifestHash: "old-hash",
+	}
+
+	desired := &AppState{
+		Name:         "test-app",
+		Version:      "1.0.0",
+		AppType:      AppTypeK8s,
+		ManifestHash: "new-hash",
+	}
+
+	changes, manifestChanged := planner.compareAppStates(current, desired)
+	assert.Len(t, changes, 1)
+	assert.True(t, manifestChanged)
+	assert.Contains(t, changes[0], "Manifest hash changed")
+
+	// Test no changes
+	desired.ManifestHash = "old-hash"
+	changes, manifestChanged = planner.compareAppStates(current, desired)
+	assert.Empty(t, changes)
+	assert.False(t, manifestChanged)
+
+	// Test app type change
+	desired.AppType = AppTypeDocker
+	changes, manifestChanged = planner.compareAppStates(current, desired)
+	assert.Len(t, changes, 1)
+	assert.False(t, manifestChanged)
+	assert.Contains(t, changes[0], "App type changed")
+}
+
+func TestCompareAppStatesOutboundConnections(t *testing.T) {
+	planner := &EdgeConnectPlanner{}
+
+	// Test with no outbound connections
+	current := &AppState{
+		Name:                "test-app",
+		Version:             "1.0.0",
+		AppType:             AppTypeK8s,
+		OutboundConnections: nil,
+	}
+
+	desired := &AppState{
+		Name:                "test-app",
+		Version:             "1.0.0",
+		AppType:             AppTypeK8s,
+		OutboundConnections: nil,
+	}
+
+	changes, _ := planner.compareAppStates(current, desired)
+	assert.Empty(t, changes, "No changes expected when both have no outbound connections")
+
+	// Test adding outbound connections
+	desired.OutboundConnections = []SecurityRule{
+		{
+			Protocol:     "tcp",
+			PortRangeMin: 80,
+			PortRangeMax: 80,
+			RemoteCIDR:   "0.0.0.0/0",
+		},
+	}
+
+	changes, _ = planner.compareAppStates(current, desired)
+	assert.Len(t, changes, 1)
+	assert.Contains(t, changes[0], "Outbound connections changed")
+
+	// Test identical outbound connections
+	current.OutboundConnections = []SecurityRule{
+		{
+			Protocol:     "tcp",
+			PortRangeMin: 80,
+			PortRangeMax: 80,
+			RemoteCIDR:   "0.0.0.0/0",
+		},
+	}
+
+	changes, _ = planner.compareAppStates(current, desired)
+	assert.Empty(t, changes, "No changes expected when outbound connections are identical")
+
+	// Test different outbound connections (different port)
+	desired.OutboundConnections[0].PortRangeMin = 443
+	desired.OutboundConnections[0].PortRangeMax = 443
+
+	changes, _ = planner.compareAppStates(current, desired)
+	assert.Len(t, changes, 1)
+	assert.Contains(t, changes[0], "Outbound connections changed")
+
+	// Test same connections but different order (should be considered equal)
+	current.OutboundConnections = []SecurityRule{
+		{
+			Protocol:     "tcp",
+			PortRangeMin: 80,
+			PortRangeMax: 80,
+			RemoteCIDR:   "0.0.0.0/0",
+		},
+		{
+			Protocol:     "tcp",
+			PortRangeMin: 443,
+			PortRangeMax: 443,
+			RemoteCIDR:   "0.0.0.0/0",
+		},
+	}
+
+	desired.OutboundConnections = []SecurityRule{
+		{
+			Protocol:     "tcp",
+			PortRangeMin: 443,
+			PortRangeMax: 443,
+			RemoteCIDR:   "0.0.0.0/0",
+		},
+		{
+			Protocol:     "tcp",
+			PortRangeMin: 80,
+			PortRangeMax: 80,
+			RemoteCIDR:   "0.0.0.0/0",
+		},
+	}
+
+	changes, _ = planner.compareAppStates(current, desired)
+	assert.Empty(t, changes, "No changes expected when outbound connections are same but in different order")
+
+	// Test removing outbound connections
+	desired.OutboundConnections = nil
+
+	changes, _ = planner.compareAppStates(current, desired)
+	assert.Len(t, changes, 1)
+	assert.Contains(t, changes[0], "Outbound connections changed")
+}
+
+func TestCompareInstanceStates(t *testing.T) {
+	planner := &EdgeConnectPlanner{}
+
+	current := &InstanceState{
+		Name:         "test-instance",
+		FlavorName:   "small",
+		CloudletName: "oldcloudlet",
+		CloudletOrg:  "oldorg",
+	}
+
+	desired := &InstanceState{
+		Name:         "test-instance",
+		FlavorName:   "medium",
+		CloudletName: "newcloudlet",
+		CloudletOrg:  "neworg",
+	}
+
+	changes := planner.compareInstanceStates(current, desired)
+	assert.Len(t, changes, 3)
+	assert.Contains(t, changes[0], "Flavor changed")
+	assert.Contains(t, changes[1], "Cloudlet changed")
+	assert.Contains(t, changes[2], "Cloudlet org changed")
+
+	// Test no changes
+	desired.FlavorName = "small"
+	desired.CloudletName = "oldcloudlet"
+	desired.CloudletOrg = "oldorg"
+	changes = planner.compareInstanceStates(current, desired)
+	assert.Empty(t, changes)
+}
+
+func TestDeploymentPlanMethods(t *testing.T) {
+	plan := &DeploymentPlan{
+		ConfigName: "test-plan",
+		AppAction: AppAction{
+			Type:    ActionCreate,
+			Desired: &AppState{Name: "test-app"},
+		},
+		InstanceActions: []InstanceAction{
+			{
+				Type: ActionCreate,
+				Target: config.InfraTemplate{
+					CloudletOrg:  "org1",
+					CloudletName: "cloudlet1",
+					Region:       "US",
+				},
+				InstanceName: "instance1",
+				Desired:      &InstanceState{Name: "instance1"},
+			},
+			{
+				Type: ActionUpdate,
+				Target: config.InfraTemplate{
+					CloudletOrg:  "org2",
+					CloudletName: "cloudlet2",
+					Region:       "EU",
+				},
+				InstanceName: "instance2",
+				Desired:      &InstanceState{Name: "instance2"},
+			},
+		},
+	}
+
+	// Test IsEmpty
+	assert.False(t, plan.IsEmpty())
+
+	// Test GetTargetCloudlets
+	cloudlets := plan.GetTargetCloudlets()
+	assert.Len(t, cloudlets, 2)
+	assert.Contains(t, cloudlets, "org1:cloudlet1")
+	assert.Contains(t, cloudlets, "org2:cloudlet2")
+
+	// Test GetTargetRegions
+	regions := plan.GetTargetRegions()
+	assert.Len(t, regions, 2)
+	assert.Contains(t, regions, "US")
+	assert.Contains(t, regions, "EU")
+
+	// Test GenerateSummary
+	summary := plan.GenerateSummary()
+	assert.Contains(t, summary, "test-plan")
+	assert.Contains(t, summary, "CREATE application")
+	assert.Contains(t, summary, "CREATE 1 instance")
+	assert.Contains(t, summary, "UPDATE 1 instance")
+
+	// Test Validate
+	err := plan.Validate()
+	assert.NoError(t, err)
+
+	// Test validation failure
+	plan.AppAction.Desired = nil
+	err = plan.Validate()
+	assert.Error(t, err)
+	assert.Contains(t, err.Error(), "must have desired state")
+}
+
+func TestEstimateDeploymentDuration(t *testing.T) {
+	planner := &EdgeConnectPlanner{}
+
+	plan := &DeploymentPlan{
+		AppAction: AppAction{Type: ActionCreate},
+		InstanceActions: []InstanceAction{
+			{Type: ActionCreate},
+			{Type: ActionUpdate},
+		},
+	}
+
+	duration := planner.estimateDeploymentDuration(plan)
+	assert.Greater(t, duration, time.Duration(0))
+	assert.Less(t, duration, 10*time.Minute) // Reasonable upper bound
+
+	// Test with no actions
+	emptyPlan := &DeploymentPlan{
+		AppAction:       AppAction{Type: ActionNone},
+		InstanceActions: []InstanceAction{},
+	}
+
+	emptyDuration := planner.estimateDeploymentDuration(emptyPlan)
+	assert.Greater(t, emptyDuration, time.Duration(0))
+	assert.Less(t, emptyDuration, duration) // Should be less than plan with actions
+}
+
+func TestIsResourceNotFoundError(t *testing.T) {
+	tests := []struct {
+		name     string
+		err      error
+		expected bool
+	}{
+		{"nil error", nil, false},
+		{"not found error", &edgeconnect.APIError{StatusCode: 404, Messages: []string{"Resource not found"}}, true},
+		{"does not exist error", &edgeconnect.APIError{Messages: []string{"App does not exist"}}, true},
+		{"404 in message", &edgeconnect.APIError{Messages: []string{"HTTP 404 error"}}, true},
+		{"other error", &edgeconnect.APIError{StatusCode: 500, Messages: []string{"Server error"}}, false},
+	}
+
+	for _, tt := range tests {
+		t.Run(tt.name, func(t *testing.T) {
+			result := isResourceNotFoundError(tt.err)
+			assert.Equal(t, tt.expected, result)
+		})
+	}
+}
+
+func TestPlanErrorHandling(t *testing.T) {
+	mockClient := &MockEdgeConnectClient{}
+	planner := NewPlanner(mockClient)
+	testConfig := createTestConfig(t)
+
+	// Mock API call to return a non-404 error
+	mockClient.On("ShowApp", mock.Anything, mock.AnythingOfType("edgeconnect.AppKey"), "US").
+		Return(nil, &edgeconnect.APIError{StatusCode: 500, Messages: []string{"Server error"}})
+
+	ctx := context.Background()
+	result, err := planner.Plan(ctx, testConfig)
+
+	assert.Error(t, err)
+	assert.NotNil(t, result)
+	assert.NotNil(t, result.Error)
+	assert.Contains(t, err.Error(), "failed to query current app state")
+
+	mockClient.AssertExpectations(t)
+}
diff --git a/internal/apply/strategy.go b/internal/apply/v1/strategy.go
similarity index 99%
rename from internal/apply/strategy.go
rename to internal/apply/v1/strategy.go
index 8d32d2e..44f2471 100644
--- a/internal/apply/strategy.go
+++ b/internal/apply/v1/strategy.go
@@ -1,6 +1,6 @@
 // ABOUTME: Deployment strategy framework for EdgeConnect apply command
 // ABOUTME: Defines interfaces and types for different deployment strategies (recreate, blue-green, rolling)
-package apply
+package v1
 
 import (
 	"context"
diff --git a/internal/apply/v1/strategy_recreate.go b/internal/apply/v1/strategy_recreate.go
new file mode 100644
index 0000000..1f6f121
--- /dev/null
+++ b/internal/apply/v1/strategy_recreate.go
@@ -0,0 +1,548 @@
+// ABOUTME: Recreate deployment strategy implementation for EdgeConnect
+// ABOUTME: Handles delete-all, update-app, create-all deployment pattern with retries and parallel execution
+package v1
+
+import (
+	"context"
+	"errors"
+	"fmt"
+	"strings"
+	"sync"
+	"time"
+
+	"edp.buildth.ing/DevFW-CICD/edge-connect-client/internal/config"
+	"edp.buildth.ing/DevFW-CICD/edge-connect-client/sdk/edgeconnect"
+)
+
+// RecreateStrategy implements the recreate deployment strategy
+type RecreateStrategy struct {
+	client EdgeConnectClientInterface
+	config StrategyConfig
+	logger Logger
+}
+
+// NewRecreateStrategy creates a new recreate strategy executor
+func NewRecreateStrategy(client EdgeConnectClientInterface, config StrategyConfig, logger Logger) *RecreateStrategy {
+	return &RecreateStrategy{
+		client: client,
+		config: config,
+		logger: logger,
+	}
+}
+
+// GetName returns the strategy name
+func (r *RecreateStrategy) GetName() DeploymentStrategy {
+	return StrategyRecreate
+}
+
+// Validate checks if the recreate strategy can be used for this deployment
+func (r *RecreateStrategy) Validate(plan *DeploymentPlan) error {
+	// Recreate strategy can be used for any deployment
+	// No specific constraints for recreate
+	return nil
+}
+
+// EstimateDuration estimates the time needed for recreate deployment
+func (r *RecreateStrategy) EstimateDuration(plan *DeploymentPlan) time.Duration {
+	var duration time.Duration
+
+	// Delete phase - estimate based on number of instances
+	instanceCount := len(plan.InstanceActions)
+	if instanceCount > 0 {
+		deleteTime := time.Duration(instanceCount) * 30 * time.Second
+		if r.config.ParallelOperations {
+			deleteTime = 30 * time.Second // Parallel deletion
+		}
+		duration += deleteTime
+	}
+
+	// App update phase
+	if plan.AppAction.Type == ActionUpdate {
+		duration += 30 * time.Second
+	}
+
+	// Create phase - estimate based on number of instances
+	if instanceCount > 0 {
+		createTime := time.Duration(instanceCount) * 2 * time.Minute
+		if r.config.ParallelOperations {
+			createTime = 2 * time.Minute // Parallel creation
+		}
+		duration += createTime
+	}
+
+	// Health check time
+	duration += r.config.HealthCheckTimeout
+
+	// Add retry buffer (potential retries)
+	retryBuffer := time.Duration(r.config.MaxRetries) * r.config.RetryDelay
+	duration += retryBuffer
+
+	return duration
+}
+
+// Execute runs the recreate deployment strategy
+func (r *RecreateStrategy) Execute(ctx context.Context, plan *DeploymentPlan, config *config.EdgeConnectConfig, manifestContent string) (*ExecutionResult, error) {
+	startTime := time.Now()
+	r.logf("Starting recreate deployment strategy for: %s", plan.ConfigName)
+
+	result := &ExecutionResult{
+		Plan:             plan,
+		CompletedActions: []ActionResult{},
+		FailedActions:    []ActionResult{},
+	}
+
+	// Phase 1: Delete all existing instances
+	if err := r.deleteInstancesPhase(ctx, plan, config, result); err != nil {
+		result.Error = err
+		result.Duration = time.Since(startTime)
+		return result, err
+	}
+
+	// Phase 2: Delete existing app (if updating)
+	if err := r.deleteAppPhase(ctx, plan, config, result); err != nil {
+		result.Error = err
+		result.Duration = time.Since(startTime)
+		return result, err
+	}
+
+	// Phase 3: Create/recreate application
+	if err := r.createAppPhase(ctx, plan, config, manifestContent, result); err != nil {
+		result.Error = err
+		result.Duration = time.Since(startTime)
+		return result, err
+	}
+
+	// Phase 4: Create new instances
+	if err := r.createInstancesPhase(ctx, plan, config, result); err != nil {
+		result.Error = err
+		result.Duration = time.Since(startTime)
+		return result, err
+	}
+
+	// Phase 5: Health check (wait for instances to be ready)
+	if err := r.healthCheckPhase(ctx, plan, result); err != nil {
+		result.Error = err
+		result.Duration = time.Since(startTime)
+		return result, err
+	}
+
+	result.Success = len(result.FailedActions) == 0
+	result.Duration = time.Since(startTime)
+
+	if result.Success {
+		r.logf("Recreate deployment completed successfully in %v", result.Duration)
+	} else {
+		r.logf("Recreate deployment failed with %d failed actions", len(result.FailedActions))
+	}
+
+	return result, result.Error
+}
+
+// deleteInstancesPhase deletes all existing instances
+func (r *RecreateStrategy) deleteInstancesPhase(ctx context.Context, plan *DeploymentPlan, config *config.EdgeConnectConfig, result *ExecutionResult) error {
+	r.logf("Phase 1: Deleting existing instances")
+
+	// Only delete instances that exist (have ActionUpdate or ActionNone type)
+	instancesToDelete := []InstanceAction{}
+	for _, action := range plan.InstanceActions {
+		if action.Type == ActionUpdate || action.Type == ActionNone {
+			// Convert to delete action
+			deleteAction := action
+			deleteAction.Type = ActionDelete
+			deleteAction.Reason = "Recreate strategy: deleting for recreation"
+			instancesToDelete = append(instancesToDelete, deleteAction)
+		}
+	}
+
+	if len(instancesToDelete) == 0 {
+		r.logf("No existing instances to delete")
+		return nil
+	}
+
+	deleteResults := r.executeInstanceActionsWithRetry(ctx, instancesToDelete, "delete", config)
+
+	for _, deleteResult := range deleteResults {
+		if deleteResult.Success {
+			result.CompletedActions = append(result.CompletedActions, deleteResult)
+			r.logf("Deleted instance: %s", deleteResult.Target)
+		} else {
+			result.FailedActions = append(result.FailedActions, deleteResult)
+			return fmt.Errorf("failed to delete instance %s: %w", deleteResult.Target, deleteResult.Error)
+		}
+	}
+
+	r.logf("Phase 1 complete: deleted %d instances", len(deleteResults))
+	return nil
+}
+
+// deleteAppPhase deletes the existing app (if updating)
+func (r *RecreateStrategy) deleteAppPhase(ctx context.Context, plan *DeploymentPlan, config *config.EdgeConnectConfig, result *ExecutionResult) error {
+	if plan.AppAction.Type != ActionUpdate {
+		r.logf("Phase 2: No app deletion needed (new app)")
+		return nil
+	}
+
+	r.logf("Phase 2: Deleting existing application")
+
+	appKey := edgeconnect.AppKey{
+		Organization: plan.AppAction.Desired.Organization,
+		Name:         plan.AppAction.Desired.Name,
+		Version:      plan.AppAction.Desired.Version,
+	}
+
+	if err := r.client.DeleteApp(ctx, appKey, plan.AppAction.Desired.Region); err != nil {
+		result.FailedActions = append(result.FailedActions, ActionResult{
+			Type:    ActionDelete,
+			Target:  plan.AppAction.Desired.Name,
+			Success: false,
+			Error:   err,
+		})
+		return fmt.Errorf("failed to delete app: %w", err)
+	}
+
+	result.CompletedActions = append(result.CompletedActions, ActionResult{
+		Type:    ActionDelete,
+		Target:  plan.AppAction.Desired.Name,
+		Success: true,
+		Details: fmt.Sprintf("Deleted app %s", plan.AppAction.Desired.Name),
+	})
+
+	r.logf("Phase 2 complete: deleted existing application")
+	return nil
+}
+
+// createAppPhase creates the application (always create since we deleted it first)
+func (r *RecreateStrategy) createAppPhase(ctx context.Context, plan *DeploymentPlan, config *config.EdgeConnectConfig, manifestContent string, result *ExecutionResult) error {
+	if plan.AppAction.Type == ActionNone {
+		r.logf("Phase 3: No app creation needed")
+		return nil
+	}
+
+	r.logf("Phase 3: Creating application")
+
+	// Always use create since recreate strategy deletes first
+	createAction := plan.AppAction
+	createAction.Type = ActionCreate
+	createAction.Reason = "Recreate strategy: creating app"
+
+	appResult := r.executeAppActionWithRetry(ctx, createAction, config, manifestContent)
+
+	if appResult.Success {
+		result.CompletedActions = append(result.CompletedActions, appResult)
+		r.logf("Phase 3 complete: app created successfully")
+		return nil
+	} else {
+		result.FailedActions = append(result.FailedActions, appResult)
+		return fmt.Errorf("failed to create app: %w", appResult.Error)
+	}
+}
+
+// createInstancesPhase creates new instances
+func (r *RecreateStrategy) createInstancesPhase(ctx context.Context, plan *DeploymentPlan, config *config.EdgeConnectConfig, result *ExecutionResult) error {
+	r.logf("Phase 4: Creating new instances")
+
+	// Convert all instance actions to create
+	instancesToCreate := []InstanceAction{}
+	for _, action := range plan.InstanceActions {
+		createAction := action
+		createAction.Type = ActionCreate
+		createAction.Reason = "Recreate strategy: creating new instance"
+		instancesToCreate = append(instancesToCreate, createAction)
+	}
+
+	if len(instancesToCreate) == 0 {
+		r.logf("No instances to create")
+		return nil
+	}
+
+	createResults := r.executeInstanceActionsWithRetry(ctx, instancesToCreate, "create", config)
+
+	for _, createResult := range createResults {
+		if createResult.Success {
+			result.CompletedActions = append(result.CompletedActions, createResult)
+			r.logf("Created instance: %s", createResult.Target)
+		} else {
+			result.FailedActions = append(result.FailedActions, createResult)
+			return fmt.Errorf("failed to create instance %s: %w", createResult.Target, createResult.Error)
+		}
+	}
+
+	r.logf("Phase 4 complete: created %d instances", len(createResults))
+	return nil
+}
+
+// healthCheckPhase waits for instances to become ready
+func (r *RecreateStrategy) healthCheckPhase(ctx context.Context, plan *DeploymentPlan, result *ExecutionResult) error {
+	if len(plan.InstanceActions) == 0 {
+		return nil
+	}
+
+	r.logf("Phase 5: Performing health checks")
+
+	// TODO: Implement actual health checks by querying instance status
+	// For now, skip waiting in tests/mock environments
+	r.logf("Phase 5 complete: health check passed (no wait)")
+	return nil
+}
+
+// executeInstanceActionsWithRetry executes instance actions with retry logic
+func (r *RecreateStrategy) executeInstanceActionsWithRetry(ctx context.Context, actions []InstanceAction, operation string, config *config.EdgeConnectConfig) []ActionResult {
+	results := make([]ActionResult, len(actions))
+
+	if r.config.ParallelOperations && len(actions) > 1 {
+		// Parallel execution
+		var wg sync.WaitGroup
+		semaphore := make(chan struct{}, 5) // Limit concurrency
+
+		for i, action := range actions {
+			wg.Add(1)
+			go func(index int, instanceAction InstanceAction) {
+				defer wg.Done()
+				semaphore <- struct{}{}
+				defer func() { <-semaphore }()
+
+				results[index] = r.executeInstanceActionWithRetry(ctx, instanceAction, operation, config)
+			}(i, action)
+		}
+		wg.Wait()
+	} else {
+		// Sequential execution
+		for i, action := range actions {
+			results[i] = r.executeInstanceActionWithRetry(ctx, action, operation, config)
+		}
+	}
+
+	return results
+}
+
+// executeInstanceActionWithRetry executes a single instance action with retry logic
+func (r *RecreateStrategy) executeInstanceActionWithRetry(ctx context.Context, action InstanceAction, operation string, config *config.EdgeConnectConfig) ActionResult {
+	startTime := time.Now()
+	result := ActionResult{
+		Type:   action.Type,
+		Target: action.InstanceName,
+	}
+
+	var lastErr error
+	for attempt := 0; attempt <= r.config.MaxRetries; attempt++ {
+		if attempt > 0 {
+			r.logf("Retrying %s for instance %s (attempt %d/%d)", operation, action.InstanceName, attempt, r.config.MaxRetries)
+			select {
+			case <-time.After(r.config.RetryDelay):
+			case <-ctx.Done():
+				result.Error = ctx.Err()
+				result.Duration = time.Since(startTime)
+				return result
+			}
+		}
+
+		var success bool
+		var err error
+
+		switch action.Type {
+		case ActionDelete:
+			success, err = r.deleteInstance(ctx, action)
+		case ActionCreate:
+			success, err = r.createInstance(ctx, action, config)
+		default:
+			err = fmt.Errorf("unsupported action type: %s", action.Type)
+		}
+
+		if success {
+			result.Success = true
+			result.Details = fmt.Sprintf("Successfully %sd instance %s", strings.ToLower(string(action.Type)), action.InstanceName)
+			result.Duration = time.Since(startTime)
+			return result
+		}
+
+		lastErr = err
+
+		// Check if error is retryable (don't retry 4xx client errors)
+		if !isRetryableError(err) {
+			r.logf("Failed to %s instance %s: %v (non-retryable error, giving up)", operation, action.InstanceName, err)
+			result.Error = fmt.Errorf("non-retryable error: %w", err)
+			result.Duration = time.Since(startTime)
+			return result
+		}
+
+		if attempt < r.config.MaxRetries {
+			r.logf("Failed to %s instance %s: %v (will retry)", operation, action.InstanceName, err)
+		}
+	}
+
+	result.Error = fmt.Errorf("failed after %d attempts: %w", r.config.MaxRetries+1, lastErr)
+	result.Duration = time.Since(startTime)
+	return result
+}
+
+// executeAppActionWithRetry executes app action with retry logic
+func (r *RecreateStrategy) executeAppActionWithRetry(ctx context.Context, action AppAction, config *config.EdgeConnectConfig, manifestContent string) ActionResult {
+	startTime := time.Now()
+	result := ActionResult{
+		Type:   action.Type,
+		Target: action.Desired.Name,
+	}
+
+	var lastErr error
+	for attempt := 0; attempt <= r.config.MaxRetries; attempt++ {
+		if attempt > 0 {
+			r.logf("Retrying app update (attempt %d/%d)", attempt, r.config.MaxRetries)
+			select {
+			case <-time.After(r.config.RetryDelay):
+			case <-ctx.Done():
+				result.Error = ctx.Err()
+				result.Duration = time.Since(startTime)
+				return result
+			}
+		}
+
+		success, err := r.updateApplication(ctx, action, config, manifestContent)
+		if success {
+			result.Success = true
+			result.Details = fmt.Sprintf("Successfully updated application %s", action.Desired.Name)
+			result.Duration = time.Since(startTime)
+			return result
+		}
+
+		lastErr = err
+
+		// Check if error is retryable (don't retry 4xx client errors)
+		if !isRetryableError(err) {
+			r.logf("Failed to update app: %v (non-retryable error, giving up)", err)
+			result.Error = fmt.Errorf("non-retryable error: %w", err)
+			result.Duration = time.Since(startTime)
+			return result
+		}
+
+		if attempt < r.config.MaxRetries {
+			r.logf("Failed to update app: %v (will retry)", err)
+		}
+	}
+
+	result.Error = fmt.Errorf("failed after %d attempts: %w", r.config.MaxRetries+1, lastErr)
+	result.Duration = time.Since(startTime)
+	return result
+}
+
+// deleteInstance deletes an instance (reuse existing logic from manager.go)
+func (r *RecreateStrategy) deleteInstance(ctx context.Context, action InstanceAction) (bool, error) {
+	instanceKey := edgeconnect.AppInstanceKey{
+		Organization: action.Desired.Organization,
+		Name:         action.InstanceName,
+		CloudletKey: edgeconnect.CloudletKey{
+			Organization: action.Target.CloudletOrg,
+			Name:         action.Target.CloudletName,
+		},
+	}
+
+	err := r.client.DeleteAppInstance(ctx, instanceKey, action.Target.Region)
+	if err != nil {
+		return false, fmt.Errorf("failed to delete instance: %w", err)
+	}
+
+	return true, nil
+}
+
+// createInstance creates an instance (extracted from manager.go logic)
+func (r *RecreateStrategy) createInstance(ctx context.Context, action InstanceAction, config *config.EdgeConnectConfig) (bool, error) {
+	instanceInput := &edgeconnect.NewAppInstanceInput{
+		Region: action.Target.Region,
+		AppInst: edgeconnect.AppInstance{
+			Key: edgeconnect.AppInstanceKey{
+				Organization: action.Desired.Organization,
+				Name:         action.InstanceName,
+				CloudletKey: edgeconnect.CloudletKey{
+					Organization: action.Target.CloudletOrg,
+					Name:         action.Target.CloudletName,
+				},
+			},
+			AppKey: edgeconnect.AppKey{
+				Organization: action.Desired.Organization,
+				Name:         config.Metadata.Name,
+				Version:      config.Metadata.AppVersion,
+			},
+			Flavor: edgeconnect.Flavor{
+				Name: action.Target.FlavorName,
+			},
+		},
+	}
+
+	// Create the instance
+	if err := r.client.CreateAppInstance(ctx, instanceInput); err != nil {
+		return false, fmt.Errorf("failed to create instance: %w", err)
+	}
+
+	r.logf("Successfully created instance: %s on %s:%s",
+		action.InstanceName, action.Target.CloudletOrg, action.Target.CloudletName)
+
+	return true, nil
+}
+
+// updateApplication creates/recreates an application (always uses CreateApp since we delete first)
+func (r *RecreateStrategy) updateApplication(ctx context.Context, action AppAction, config *config.EdgeConnectConfig, manifestContent string) (bool, error) {
+	// Build the app create input - always create since recreate strategy deletes first
+	appInput := &edgeconnect.NewAppInput{
+		Region: action.Desired.Region,
+		App: edgeconnect.App{
+			Key: edgeconnect.AppKey{
+				Organization: action.Desired.Organization,
+				Name:         action.Desired.Name,
+				Version:      action.Desired.Version,
+			},
+			Deployment:          config.GetDeploymentType(),
+			ImageType:           "ImageTypeDocker",
+			ImagePath:           config.GetImagePath(),
+			AllowServerless:     true,
+			DefaultFlavor:       edgeconnect.Flavor{Name: config.Spec.InfraTemplate[0].FlavorName},
+			ServerlessConfig:    struct{}{},
+			DeploymentManifest:  manifestContent,
+			DeploymentGenerator: "kubernetes-basic",
+		},
+	}
+
+	// Add network configuration if specified
+	if config.Spec.Network != nil {
+		appInput.App.RequiredOutboundConnections = convertNetworkRules(config.Spec.Network)
+	}
+
+	// Create the application (recreate strategy always creates from scratch)
+	if err := r.client.CreateApp(ctx, appInput); err != nil {
+		return false, fmt.Errorf("failed to create application: %w", err)
+	}
+
+	r.logf("Successfully created application: %s/%s version %s",
+		action.Desired.Organization, action.Desired.Name, action.Desired.Version)
+
+	return true, nil
+}
+
+// logf logs a message if a logger is configured
+func (r *RecreateStrategy) logf(format string, v ...interface{}) {
+	if r.logger != nil {
+		r.logger.Printf("[RecreateStrategy] "+format, v...)
+	}
+}
+
+// isRetryableError determines if an error should be retried
+// Returns false for client errors (4xx), true for server errors (5xx) and other transient errors
+func isRetryableError(err error) bool {
+	if err == nil {
+		return false
+	}
+
+	// Check if it's an APIError with a status code
+	var apiErr *edgeconnect.APIError
+	if errors.As(err, &apiErr) {
+		// Don't retry client errors (4xx)
+		if apiErr.StatusCode >= 400 && apiErr.StatusCode < 500 {
+			return false
+		}
+		// Retry server errors (5xx)
+		if apiErr.StatusCode >= 500 {
+			return true
+		}
+	}
+
+	// Retry all other errors (network issues, timeouts, etc.)
+	return true
+}
diff --git a/internal/apply/v1/types.go b/internal/apply/v1/types.go
new file mode 100644
index 0000000..223fa74
--- /dev/null
+++ b/internal/apply/v1/types.go
@@ -0,0 +1,462 @@
+// ABOUTME: Deployment planning types for EdgeConnect apply command with state management
+// ABOUTME: Defines structures for deployment plans, actions, and state comparison results
+package v1
+
+import (
+	"fmt"
+	"strings"
+	"time"
+
+	"edp.buildth.ing/DevFW-CICD/edge-connect-client/internal/config"
+	"edp.buildth.ing/DevFW-CICD/edge-connect-client/sdk/edgeconnect"
+)
+
+// SecurityRule defines network access rules (alias to SDK type for consistency)
+type SecurityRule = edgeconnect.SecurityRule
+
+// ActionType represents the type of action to be performed
+type ActionType string
+
+const (
+	// ActionCreate indicates a resource needs to be created
+	ActionCreate ActionType = "CREATE"
+	// ActionUpdate indicates a resource needs to be updated
+	ActionUpdate ActionType = "UPDATE"
+	// ActionNone indicates no action is needed
+	ActionNone ActionType = "NONE"
+	// ActionDelete indicates a resource needs to be deleted (for rollback scenarios)
+	ActionDelete ActionType = "DELETE"
+)
+
+// String returns the string representation of ActionType
+func (a ActionType) String() string {
+	return string(a)
+}
+
+// DeploymentPlan represents the complete deployment plan for a configuration
+type DeploymentPlan struct {
+	// ConfigName is the name from metadata
+	ConfigName string
+
+	// AppAction defines what needs to be done with the application
+	AppAction AppAction
+
+	// InstanceActions defines what needs to be done with each instance
+	InstanceActions []InstanceAction
+
+	// Summary provides a human-readable summary of the plan
+	Summary string
+
+	// TotalActions is the count of all actions that will be performed
+	TotalActions int
+
+	// EstimatedDuration is the estimated time to complete the deployment
+	EstimatedDuration time.Duration
+
+	// CreatedAt timestamp when the plan was created
+	CreatedAt time.Time
+
+	// DryRun indicates if this is a dry-run plan
+	DryRun bool
+}
+
+// AppAction represents an action to be performed on an application
+type AppAction struct {
+	// Type of action to perform
+	Type ActionType
+
+	// Current state of the app (nil if doesn't exist)
+	Current *AppState
+
+	// Desired state of the app
+	Desired *AppState
+
+	// Changes describes what will change
+	Changes []string
+
+	// Reason explains why this action is needed
+	Reason string
+
+	// ManifestHash is the hash of the current manifest file
+	ManifestHash string
+
+	// ManifestChanged indicates if the manifest content has changed
+	ManifestChanged bool
+}
+
+// InstanceAction represents an action to be performed on an application instance
+type InstanceAction struct {
+	// Type of action to perform
+	Type ActionType
+
+	// Target infrastructure where the instance will be deployed
+	Target config.InfraTemplate
+
+	// Current state of the instance (nil if doesn't exist)
+	Current *InstanceState
+
+	// Desired state of the instance
+	Desired *InstanceState
+
+	// Changes describes what will change
+	Changes []string
+
+	// Reason explains why this action is needed
+	Reason string
+
+	// InstanceName is the generated name for this instance
+	InstanceName string
+
+	// Dependencies lists other instances this depends on
+	Dependencies []string
+}
+
+// AppState represents the current state of an application
+type AppState struct {
+	// Name of the application
+	Name string
+
+	// Version of the application
+	Version string
+
+	// Organization that owns the app
+	Organization string
+
+	// Region where the app is deployed
+	Region string
+
+	// ManifestHash is the stored hash of the manifest file
+	ManifestHash string
+
+	// LastUpdated timestamp when the app was last modified
+	LastUpdated time.Time
+
+	// Exists indicates if the app currently exists
+	Exists bool
+
+	// AppType indicates whether this is a k8s or docker app
+	AppType AppType
+
+	// OutboundConnections contains the required outbound network connections
+	OutboundConnections []SecurityRule
+}
+
+// InstanceState represents the current state of an application instance
+type InstanceState struct {
+	// Name of the instance
+	Name string
+
+	// AppName that this instance belongs to
+	AppName string
+
+	// AppVersion of the associated app
+	AppVersion string
+
+	// Organization that owns the instance
+	Organization string
+
+	// Region where the instance is deployed
+	Region string
+
+	// CloudletOrg that hosts the cloudlet
+	CloudletOrg string
+
+	// CloudletName where the instance is running
+	CloudletName string
+
+	// FlavorName used for the instance
+	FlavorName string
+
+	// State of the instance (e.g., "Ready", "Pending", "Error")
+	State string
+
+	// PowerState of the instance
+	PowerState string
+
+	// LastUpdated timestamp when the instance was last modified
+	LastUpdated time.Time
+
+	// Exists indicates if the instance currently exists
+	Exists bool
+}
+
+// AppType represents the type of application
+type AppType string
+
+const (
+	// AppTypeK8s represents a Kubernetes application
+	AppTypeK8s AppType = "k8s"
+	// AppTypeDocker represents a Docker application
+	AppTypeDocker AppType = "docker"
+)
+
+// String returns the string representation of AppType
+func (a AppType) String() string {
+	return string(a)
+}
+
+// DeploymentSummary provides a high-level overview of the deployment plan
+type DeploymentSummary struct {
+	// TotalActions is the total number of actions to be performed
+	TotalActions int
+
+	// ActionCounts breaks down actions by type
+	ActionCounts map[ActionType]int
+
+	// EstimatedDuration for the entire deployment
+	EstimatedDuration time.Duration
+
+	// ResourceSummary describes the resources involved
+	ResourceSummary ResourceSummary
+
+	// Warnings about potential issues
+	Warnings []string
+}
+
+// ResourceSummary provides details about resources in the deployment
+type ResourceSummary struct {
+	// AppsToCreate number of apps that will be created
+	AppsToCreate int
+
+	// AppsToUpdate number of apps that will be updated
+	AppsToUpdate int
+
+	// InstancesToCreate number of instances that will be created
+	InstancesToCreate int
+
+	// InstancesToUpdate number of instances that will be updated
+	InstancesToUpdate int
+
+	// CloudletsAffected number of unique cloudlets involved
+	CloudletsAffected int
+
+	// RegionsAffected number of unique regions involved
+	RegionsAffected int
+}
+
+// PlanResult represents the result of a deployment planning operation
+type PlanResult struct {
+	// Plan is the generated deployment plan
+	Plan *DeploymentPlan
+
+	// Error if planning failed
+	Error error
+
+	// Warnings encountered during planning
+	Warnings []string
+}
+
+// ExecutionResult represents the result of executing a deployment plan
+type ExecutionResult struct {
+	// Plan that was executed
+	Plan *DeploymentPlan
+
+	// Success indicates if the deployment was successful
+	Success bool
+
+	// CompletedActions lists actions that were successfully completed
+	CompletedActions []ActionResult
+
+	// FailedActions lists actions that failed
+	FailedActions []ActionResult
+
+	// Error that caused the deployment to fail (if any)
+	Error error
+
+	// Duration taken to execute the plan
+	Duration time.Duration
+
+	// RollbackPerformed indicates if rollback was executed
+	RollbackPerformed bool
+
+	// RollbackSuccess indicates if rollback was successful
+	RollbackSuccess bool
+}
+
+// ActionResult represents the result of executing a single action
+type ActionResult struct {
+	// Type of action that was attempted
+	Type ActionType
+
+	// Target describes what was being acted upon
+	Target string
+
+	// Success indicates if the action succeeded
+	Success bool
+
+	// Error if the action failed
+	Error error
+
+	// Duration taken to complete the action
+	Duration time.Duration
+
+	// Details provides additional information about the action
+	Details string
+}
+
+// IsEmpty returns true if the deployment plan has no actions to perform
+func (dp *DeploymentPlan) IsEmpty() bool {
+	if dp.AppAction.Type != ActionNone {
+		return false
+	}
+
+	for _, action := range dp.InstanceActions {
+		if action.Type != ActionNone {
+			return false
+		}
+	}
+
+	return true
+}
+
+// HasErrors returns true if the plan contains any error conditions
+func (dp *DeploymentPlan) HasErrors() bool {
+	// Check for conflicting actions or invalid states
+	return false // Implementation would check for various error conditions
+}
+
+// GetTargetCloudlets returns a list of unique cloudlets that will be affected
+func (dp *DeploymentPlan) GetTargetCloudlets() []string {
+	cloudletSet := make(map[string]bool)
+	var cloudlets []string
+
+	for _, action := range dp.InstanceActions {
+		if action.Type != ActionNone {
+			key := fmt.Sprintf("%s:%s", action.Target.CloudletOrg, action.Target.CloudletName)
+			if !cloudletSet[key] {
+				cloudletSet[key] = true
+				cloudlets = append(cloudlets, key)
+			}
+		}
+	}
+
+	return cloudlets
+}
+
+// GetTargetRegions returns a list of unique regions that will be affected
+func (dp *DeploymentPlan) GetTargetRegions() []string {
+	regionSet := make(map[string]bool)
+	var regions []string
+
+	for _, action := range dp.InstanceActions {
+		if action.Type != ActionNone && !regionSet[action.Target.Region] {
+			regionSet[action.Target.Region] = true
+			regions = append(regions, action.Target.Region)
+		}
+	}
+
+	return regions
+}
+
+// GenerateSummary creates a human-readable summary of the deployment plan
+func (dp *DeploymentPlan) GenerateSummary() string {
+	if dp.IsEmpty() {
+		return "No changes required - configuration matches current state"
+	}
+
+	var sb strings.Builder
+	sb.WriteString(fmt.Sprintf("Deployment plan for '%s':\n", dp.ConfigName))
+
+	// App actions
+	if dp.AppAction.Type != ActionNone {
+		sb.WriteString(fmt.Sprintf("- %s application '%s'\n", dp.AppAction.Type, dp.AppAction.Desired.Name))
+		if len(dp.AppAction.Changes) > 0 {
+			for _, change := range dp.AppAction.Changes {
+				sb.WriteString(fmt.Sprintf("  - %s\n", change))
+			}
+		}
+	}
+
+	// Instance actions
+	createCount := 0
+	updateActions := []InstanceAction{}
+	for _, action := range dp.InstanceActions {
+		switch action.Type {
+		case ActionCreate:
+			createCount++
+		case ActionUpdate:
+			updateActions = append(updateActions, action)
+		}
+	}
+
+	if createCount > 0 {
+		sb.WriteString(fmt.Sprintf("- CREATE %d instance(s) across %d cloudlet(s)\n", createCount, len(dp.GetTargetCloudlets())))
+	}
+
+	if len(updateActions) > 0 {
+		sb.WriteString(fmt.Sprintf("- UPDATE %d instance(s)\n", len(updateActions)))
+		for _, action := range updateActions {
+			if len(action.Changes) > 0 {
+				sb.WriteString(fmt.Sprintf("  - Instance '%s':\n", action.InstanceName))
+				for _, change := range action.Changes {
+					sb.WriteString(fmt.Sprintf("    - %s\n", change))
+				}
+			}
+		}
+	}
+
+	sb.WriteString(fmt.Sprintf("Estimated duration: %s", dp.EstimatedDuration.String()))
+
+	return sb.String()
+}
+
+// Validate checks if the deployment plan is valid and safe to execute
+func (dp *DeploymentPlan) Validate() error {
+	if dp.ConfigName == "" {
+		return fmt.Errorf("deployment plan must have a config name")
+	}
+
+	// Validate app action
+	if dp.AppAction.Type != ActionNone && dp.AppAction.Desired == nil {
+		return fmt.Errorf("app action of type %s must have desired state", dp.AppAction.Type)
+	}
+
+	// Validate instance actions
+	for i, action := range dp.InstanceActions {
+		if action.Type != ActionNone {
+			if action.Desired == nil {
+				return fmt.Errorf("instance action %d of type %s must have desired state", i, action.Type)
+			}
+			if action.InstanceName == "" {
+				return fmt.Errorf("instance action %d must have an instance name", i)
+			}
+		}
+	}
+
+	return nil
+}
+
+// Clone creates a deep copy of the deployment plan
+func (dp *DeploymentPlan) Clone() *DeploymentPlan {
+	clone := &DeploymentPlan{
+		ConfigName:        dp.ConfigName,
+		Summary:           dp.Summary,
+		TotalActions:      dp.TotalActions,
+		EstimatedDuration: dp.EstimatedDuration,
+		CreatedAt:         dp.CreatedAt,
+		DryRun:            dp.DryRun,
+		AppAction:         dp.AppAction, // Struct copy is sufficient for this use case
+	}
+
+	// Deep copy instance actions
+	clone.InstanceActions = make([]InstanceAction, len(dp.InstanceActions))
+	copy(clone.InstanceActions, dp.InstanceActions)
+
+	return clone
+}
+
+// convertNetworkRules converts config network rules to EdgeConnect SecurityRules
+func convertNetworkRules(network *config.NetworkConfig) []edgeconnect.SecurityRule {
+	rules := make([]edgeconnect.SecurityRule, len(network.OutboundConnections))
+
+	for i, conn := range network.OutboundConnections {
+		rules[i] = edgeconnect.SecurityRule{
+			Protocol:     conn.Protocol,
+			PortRangeMin: conn.PortRangeMin,
+			PortRangeMax: conn.PortRangeMax,
+			RemoteCIDR:   conn.RemoteCIDR,
+		}
+	}
+
+	return rules
+}
diff --git a/internal/apply/manager.go b/internal/apply/v2/manager.go
similarity index 99%
rename from internal/apply/manager.go
rename to internal/apply/v2/manager.go
index 3e6d837..fc1b483 100644
--- a/internal/apply/manager.go
+++ b/internal/apply/v2/manager.go
@@ -1,6 +1,6 @@
 // ABOUTME: Resource management for EdgeConnect apply command with deployment execution and rollback
 // ABOUTME: Handles actual deployment operations, manifest processing, and error recovery with parallel execution
-package apply
+package v2
 
 import (
 	"context"
diff --git a/internal/apply/manager_test.go b/internal/apply/v2/manager_test.go
similarity index 99%
rename from internal/apply/manager_test.go
rename to internal/apply/v2/manager_test.go
index f2135b5..68c60fd 100644
--- a/internal/apply/manager_test.go
+++ b/internal/apply/v2/manager_test.go
@@ -1,6 +1,6 @@
 // ABOUTME: Comprehensive tests for EdgeConnect resource manager with deployment scenarios
 // ABOUTME: Tests deployment execution, rollback functionality, and error handling with mock clients
-package apply
+package v2
 
 import (
 	"context"
diff --git a/internal/apply/planner.go b/internal/apply/v2/planner.go
similarity index 99%
rename from internal/apply/planner.go
rename to internal/apply/v2/planner.go
index d4f3e82..52de1ee 100644
--- a/internal/apply/planner.go
+++ b/internal/apply/v2/planner.go
@@ -1,6 +1,6 @@
 // ABOUTME: Deployment planner for EdgeConnect apply command with intelligent state comparison
 // ABOUTME: Analyzes desired vs current state to generate optimal deployment plans with minimal API calls
-package apply
+package v2
 
 import (
 	"context"
diff --git a/internal/apply/planner_test.go b/internal/apply/v2/planner_test.go
similarity index 99%
rename from internal/apply/planner_test.go
rename to internal/apply/v2/planner_test.go
index 6f7c39b..fe56871 100644
--- a/internal/apply/planner_test.go
+++ b/internal/apply/v2/planner_test.go
@@ -1,6 +1,6 @@
 // ABOUTME: Comprehensive tests for EdgeConnect deployment planner with mock scenarios
 // ABOUTME: Tests planning logic, state comparison, and various deployment scenarios
-package apply
+package v2
 
 import (
 	"context"
diff --git a/internal/apply/v2/strategy.go b/internal/apply/v2/strategy.go
new file mode 100644
index 0000000..6a1661a
--- /dev/null
+++ b/internal/apply/v2/strategy.go
@@ -0,0 +1,106 @@
+// ABOUTME: Deployment strategy framework for EdgeConnect apply command
+// ABOUTME: Defines interfaces and types for different deployment strategies (recreate, blue-green, rolling)
+package v2
+
+import (
+	"context"
+	"fmt"
+	"time"
+
+	"edp.buildth.ing/DevFW-CICD/edge-connect-client/internal/config"
+)
+
+// DeploymentStrategy represents the type of deployment strategy
+type DeploymentStrategy string
+
+const (
+	// StrategyRecreate deletes all instances, updates app, then creates new instances
+	StrategyRecreate DeploymentStrategy = "recreate"
+
+	// StrategyBlueGreen creates new instances alongside old ones, then switches traffic (future)
+	StrategyBlueGreen DeploymentStrategy = "blue-green"
+
+	// StrategyRolling updates instances one by one with health checks (future)
+	StrategyRolling DeploymentStrategy = "rolling"
+)
+
+// DeploymentStrategyExecutor defines the interface that all deployment strategies must implement
+type DeploymentStrategyExecutor interface {
+	// Execute runs the deployment strategy
+	Execute(ctx context.Context, plan *DeploymentPlan, config *config.EdgeConnectConfig, manifestContent string) (*ExecutionResult, error)
+
+	// Validate checks if the strategy can be used for this deployment
+	Validate(plan *DeploymentPlan) error
+
+	// EstimateDuration provides time estimate for this strategy
+	EstimateDuration(plan *DeploymentPlan) time.Duration
+
+	// GetName returns the strategy name
+	GetName() DeploymentStrategy
+}
+
+// StrategyConfig holds configuration for deployment strategies
+type StrategyConfig struct {
+	// MaxRetries is the number of times to retry failed operations
+	MaxRetries int
+
+	// HealthCheckTimeout is the maximum time to wait for health checks
+	HealthCheckTimeout time.Duration
+
+	// ParallelOperations enables parallel execution of operations
+	ParallelOperations bool
+
+	// RetryDelay is the delay between retry attempts
+	RetryDelay time.Duration
+}
+
+// DefaultStrategyConfig returns sensible defaults for strategy configuration
+func DefaultStrategyConfig() StrategyConfig {
+	return StrategyConfig{
+		MaxRetries:         5,                // Retry 5 times
+		HealthCheckTimeout: 5 * time.Minute,  // Max 5 mins health check
+		ParallelOperations: true,             // Parallel execution
+		RetryDelay:         10 * time.Second, // 10s between retries
+	}
+}
+
+// StrategyFactory creates deployment strategy executors
+type StrategyFactory struct {
+	config StrategyConfig
+	client EdgeConnectClientInterface
+	logger Logger
+}
+
+// NewStrategyFactory creates a new strategy factory
+func NewStrategyFactory(client EdgeConnectClientInterface, config StrategyConfig, logger Logger) *StrategyFactory {
+	return &StrategyFactory{
+		config: config,
+		client: client,
+		logger: logger,
+	}
+}
+
+// CreateStrategy creates the appropriate strategy executor based on the deployment strategy
+func (f *StrategyFactory) CreateStrategy(strategy DeploymentStrategy) (DeploymentStrategyExecutor, error) {
+	switch strategy {
+	case StrategyRecreate:
+		return NewRecreateStrategy(f.client, f.config, f.logger), nil
+	case StrategyBlueGreen:
+		// TODO: Implement blue-green strategy
+		return nil, fmt.Errorf("blue-green strategy not yet implemented")
+	case StrategyRolling:
+		// TODO: Implement rolling strategy
+		return nil, fmt.Errorf("rolling strategy not yet implemented")
+	default:
+		return nil, fmt.Errorf("unknown deployment strategy: %s", strategy)
+	}
+}
+
+// GetAvailableStrategies returns a list of all available strategies
+func (f *StrategyFactory) GetAvailableStrategies() []DeploymentStrategy {
+	return []DeploymentStrategy{
+		StrategyRecreate,
+		// StrategyBlueGreen, // TODO: Enable when implemented
+		// StrategyRolling,   // TODO: Enable when implemented
+	}
+}
diff --git a/internal/apply/strategy_recreate.go b/internal/apply/v2/strategy_recreate.go
similarity index 99%
rename from internal/apply/strategy_recreate.go
rename to internal/apply/v2/strategy_recreate.go
index dc44784..739a454 100644
--- a/internal/apply/strategy_recreate.go
+++ b/internal/apply/v2/strategy_recreate.go
@@ -1,6 +1,6 @@
 // ABOUTME: Recreate deployment strategy implementation for EdgeConnect
 // ABOUTME: Handles delete-all, update-app, create-all deployment pattern with retries and parallel execution
-package apply
+package v2
 
 import (
 	"context"
diff --git a/internal/apply/types.go b/internal/apply/v2/types.go
similarity index 99%
rename from internal/apply/types.go
rename to internal/apply/v2/types.go
index 279832a..90b7956 100644
--- a/internal/apply/types.go
+++ b/internal/apply/v2/types.go
@@ -1,6 +1,6 @@
 // ABOUTME: Deployment planning types for EdgeConnect apply command with state management
 // ABOUTME: Defines structures for deployment plans, actions, and state comparison results
-package apply
+package v2
 
 import (
 	"fmt"