diff --git a/docs/data-sources/observability_instance.md b/docs/data-sources/observability_instance.md
index dd6c9e64..0f70fe8c 100644
--- a/docs/data-sources/observability_instance.md
+++ b/docs/data-sources/observability_instance.md
@@ -52,7 +52,7 @@ data "stackit_observability_instance" "example" {
 - `otlp_traces_url` (String)
 - `parameters` (Map of String) Additional parameters.
 - `plan_id` (String) The Observability plan ID.
-- `plan_name` (String) Specifies the Observability plan. E.g. `Monitoring-Medium-EU01`.
+- `plan_name` (String) Specifies the Observability plan. E.g. `Observability-Monitoring-Medium-EU01`.
 - `targets_url` (String) Specifies Targets URL.
 - `zipkin_spans_url` (String)
 
diff --git a/docs/guides/vault_secrets_manager.md b/docs/guides/vault_secrets_manager.md
index 0cdb807d..f89cb1b2 100644
--- a/docs/guides/vault_secrets_manager.md
+++ b/docs/guides/vault_secrets_manager.md
@@ -57,7 +57,7 @@ This guide outlines the process of utilizing the [HashiCorp Vault provider](http
    resource "stackit_observability_instance" "example" {
      project_id = "xxxxxxxx-xxxx-xxxx-xxxx-xxxxxxxxxxxx"
      name       = "example-instance"
-     plan_name  = "Monitoring-Medium-EU01"
+     plan_name  = "Observability-Monitoring-Medium-EU01"
    }
     ```
 
diff --git a/docs/resources/observability_instance.md b/docs/resources/observability_instance.md
index e7b4eb36..f137dacc 100644
--- a/docs/resources/observability_instance.md
+++ b/docs/resources/observability_instance.md
@@ -16,7 +16,7 @@ Observability instance resource schema. Must have a `region` specified in the pr
 resource "stackit_observability_instance" "example" {
   project_id                             = "xxxxxxxx-xxxx-xxxx-xxxx-xxxxxxxxxxxx"
   name                                   = "example-instance"
-  plan_name                              = "Monitoring-Medium-EU01"
+  plan_name                              = "Observability-Monitoring-Medium-EU01"
   acl                                    = ["1.1.1.1/32", "2.2.2.2/32"]
   metrics_retention_days                 = 7
   metrics_retention_days_5m_downsampling = 30
@@ -30,7 +30,7 @@ resource "stackit_observability_instance" "example" {
 ### Required
 
 - `name` (String) The name of the Observability instance.
-- `plan_name` (String) Specifies the Observability plan. E.g. `Monitoring-Medium-EU01`.
+- `plan_name` (String) Specifies the Observability plan. E.g. `Observability-Monitoring-Medium-EU01`.
 - `project_id` (String) STACKIT project ID to which the instance is associated.
 
 ### Optional
diff --git a/examples/resources/stackit_observability_instance/resource.tf b/examples/resources/stackit_observability_instance/resource.tf
index fe3677a6..825b2348 100644
--- a/examples/resources/stackit_observability_instance/resource.tf
+++ b/examples/resources/stackit_observability_instance/resource.tf
@@ -1,7 +1,7 @@
 resource "stackit_observability_instance" "example" {
   project_id                             = "xxxxxxxx-xxxx-xxxx-xxxx-xxxxxxxxxxxx"
   name                                   = "example-instance"
-  plan_name                              = "Monitoring-Medium-EU01"
+  plan_name                              = "Observability-Monitoring-Medium-EU01"
   acl                                    = ["1.1.1.1/32", "2.2.2.2/32"]
   metrics_retention_days                 = 7
   metrics_retention_days_5m_downsampling = 30
diff --git a/stackit/internal/services/observability/instance/datasource.go b/stackit/internal/services/observability/instance/datasource.go
index 271b89ab..b51faa57 100644
--- a/stackit/internal/services/observability/instance/datasource.go
+++ b/stackit/internal/services/observability/instance/datasource.go
@@ -107,7 +107,7 @@ func (d *instanceDataSource) Schema(_ context.Context, _ datasource.SchemaReques
 				},
 			},
 			"plan_name": schema.StringAttribute{
-				Description: "Specifies the Observability plan. E.g. `Monitoring-Medium-EU01`.",
+				Description: "Specifies the Observability plan. E.g. `Observability-Monitoring-Medium-EU01`.",
 				Computed:    true,
 				Validators: []validator.String{
 					stringvalidator.LengthAtLeast(1),
diff --git a/stackit/internal/services/observability/instance/resource.go b/stackit/internal/services/observability/instance/resource.go
index 315f793e..cce1fb7e 100644
--- a/stackit/internal/services/observability/instance/resource.go
+++ b/stackit/internal/services/observability/instance/resource.go
@@ -418,7 +418,7 @@ func (r *instanceResource) Schema(_ context.Context, _ resource.SchemaRequest, r
 				},
 			},
 			"plan_name": schema.StringAttribute{
-				Description: "Specifies the Observability plan. E.g. `Monitoring-Medium-EU01`.",
+				Description: "Specifies the Observability plan. E.g. `Observability-Monitoring-Medium-EU01`.",
 				Required:    true,
 				Validators: []validator.String{
 					stringvalidator.LengthAtLeast(1),
diff --git a/templates/guides/vault_secrets_manager.md.tmpl b/templates/guides/vault_secrets_manager.md.tmpl
index 0cdb807d..f89cb1b2 100644
--- a/templates/guides/vault_secrets_manager.md.tmpl
+++ b/templates/guides/vault_secrets_manager.md.tmpl
@@ -57,7 +57,7 @@ This guide outlines the process of utilizing the [HashiCorp Vault provider](http
    resource "stackit_observability_instance" "example" {
      project_id = "xxxxxxxx-xxxx-xxxx-xxxx-xxxxxxxxxxxx"
      name       = "example-instance"
-     plan_name  = "Monitoring-Medium-EU01"
+     plan_name  = "Observability-Monitoring-Medium-EU01"
    }
     ```