diff --git a/MIGRATION_GUIDE.md b/MIGRATION_GUIDE.md
index 623fb30116..34b969e451 100644
--- a/MIGRATION_GUIDE.md
+++ b/MIGRATION_GUIDE.md
@@ -4,6 +4,12 @@ This document is meant to help you migrate your Terraform config to the new newe
 describe deprecations or breaking changes and help you to change your configuration to keep the same (or similar) behavior
 across different versions.
 
+## v0.86.0 ➞ v0.87.0
+### snowflake_failover_group resource changes
+#### *(bug fix)* ACCOUNT PARAMETERS is returned as PARAMETERS from SHOW FAILOVER GROUPS
+Longer context in [#2517](https://github.com/Snowflake-Labs/terraform-provider-snowflake/issues/2517).
+After this change, one apply may be required to update the state correctly for failover group resources using `ACCOUNT PARAMETERS`.
+
 ## v0.85.0 ➞ v0.86.0
 ### snowflake_table_constraint resource changes
 
diff --git a/pkg/datasources/failover_groups_acceptance_test.go b/pkg/datasources/failover_groups_acceptance_test.go
index 5cae6d843f..9ac62729b3 100644
--- a/pkg/datasources/failover_groups_acceptance_test.go
+++ b/pkg/datasources/failover_groups_acceptance_test.go
@@ -6,8 +6,11 @@ import (
 	"strings"
 	"testing"
 
+	acc "github.com/Snowflake-Labs/terraform-provider-snowflake/pkg/acceptance"
+
 	"github.com/hashicorp/terraform-plugin-testing/helper/acctest"
 	"github.com/hashicorp/terraform-plugin-testing/helper/resource"
+	"github.com/hashicorp/terraform-plugin-testing/tfversion"
 )
 
 func TestAcc_FailoverGroups(t *testing.T) {
@@ -18,18 +21,21 @@ func TestAcc_FailoverGroups(t *testing.T) {
 
 	name := strings.ToUpper(acctest.RandStringFromCharSet(10, acctest.CharSetAlpha))
 	resource.ParallelTest(t, resource.TestCase{
-		Providers:    providers(),
+		ProtoV6ProviderFactories: acc.TestAccProtoV6ProviderFactories,
+		PreCheck:                 func() { acc.TestAccPreCheck(t) },
+		TerraformVersionChecks: []tfversion.TerraformVersionCheck{
+			tfversion.RequireAbove(tfversion.Version1_5_0),
+		},
 		CheckDestroy: nil,
 		Steps: []resource.TestStep{
 			{
 				Config: failoverGroupsConfig(name, accountName),
 				Check: resource.ComposeTestCheckFunc(
-					resource.TestCheckResourceAttr("snowflake_failover_groups.d", "failover_groups.#", "1"),
-					resource.TestCheckResourceAttr("snowflake_failover_groups.d", "failover_groups.0.name", name),
-					resource.TestCheckResourceAttr("snowflake_failover_groups.d", "failover_groups.0.object_types.#", "1"),
-					resource.TestCheckResourceAttr("snowflake_failover_groups.d", "failover_groups.0.object_types.0", "ROLES"),
-					resource.TestCheckResourceAttr("snowflake_failover_groups.d", "failover_groups.0.allowed_accounts.#", "1"),
-					resource.TestCheckResourceAttr("snowflake_failover_groups.d", "failover_groups.0.allowed_accounts.0", accountName),
+					resource.TestCheckResourceAttr("data.snowflake_failover_groups.d", "failover_groups.#", "1"),
+					resource.TestCheckResourceAttr("data.snowflake_failover_groups.d", "failover_groups.0.object_types.#", "1"),
+					resource.TestCheckResourceAttr("data.snowflake_failover_groups.d", "failover_groups.0.object_types.0", "ROLES"),
+					resource.TestCheckResourceAttr("data.snowflake_failover_groups.d", "failover_groups.0.allowed_accounts.#", "1"),
+					resource.TestCheckResourceAttr("data.snowflake_failover_groups.d", "failover_groups.0.allowed_accounts.0", accountName),
 				),
 			},
 		},
diff --git a/pkg/resources/failover_group_acceptance_test.go b/pkg/resources/failover_group_acceptance_test.go
index ee77f72b90..df6903024c 100644
--- a/pkg/resources/failover_group_acceptance_test.go
+++ b/pkg/resources/failover_group_acceptance_test.go
@@ -7,8 +7,10 @@ import (
 	"testing"
 
 	acc "github.com/Snowflake-Labs/terraform-provider-snowflake/pkg/acceptance"
+
 	"github.com/hashicorp/terraform-plugin-testing/helper/acctest"
 	"github.com/hashicorp/terraform-plugin-testing/helper/resource"
+	"github.com/hashicorp/terraform-plugin-testing/tfversion"
 )
 
 func TestAcc_FailoverGroupBasic(t *testing.T) {
@@ -19,8 +21,11 @@ func TestAcc_FailoverGroupBasic(t *testing.T) {
 	}
 	accountName := os.Getenv("SNOWFLAKE_BUSINESS_CRITICAL_ACCOUNT")
 	resource.Test(t, resource.TestCase{
-		Providers:    acc.TestAccProviders(),
-		PreCheck:     func() { acc.TestAccPreCheck(t) },
+		ProtoV6ProviderFactories: acc.TestAccProtoV6ProviderFactories,
+		PreCheck:                 func() { acc.TestAccPreCheck(t) },
+		TerraformVersionChecks: []tfversion.TerraformVersionCheck{
+			tfversion.RequireAbove(tfversion.Version1_5_0),
+		},
 		CheckDestroy: nil,
 		Steps: []resource.TestStep{
 			{
@@ -54,8 +59,11 @@ func TestAcc_FailoverGroupRemoveObjectTypes(t *testing.T) {
 	}
 	accountName := os.Getenv("SNOWFLAKE_BUSINESS_CRITICAL_ACCOUNT")
 	resource.Test(t, resource.TestCase{
-		Providers:    acc.TestAccProviders(),
-		PreCheck:     func() { acc.TestAccPreCheck(t) },
+		ProtoV6ProviderFactories: acc.TestAccProtoV6ProviderFactories,
+		PreCheck:                 func() { acc.TestAccPreCheck(t) },
+		TerraformVersionChecks: []tfversion.TerraformVersionCheck{
+			tfversion.RequireAbove(tfversion.Version1_5_0),
+		},
 		CheckDestroy: nil,
 		Steps: []resource.TestStep{
 			{
@@ -92,8 +100,11 @@ func TestAcc_FailoverGroupInterval(t *testing.T) {
 	}
 	accountName := os.Getenv("SNOWFLAKE_BUSINESS_CRITICAL_ACCOUNT")
 	resource.Test(t, resource.TestCase{
-		Providers:    acc.TestAccProviders(),
-		PreCheck:     func() { acc.TestAccPreCheck(t) },
+		ProtoV6ProviderFactories: acc.TestAccProtoV6ProviderFactories,
+		PreCheck:                 func() { acc.TestAccPreCheck(t) },
+		TerraformVersionChecks: []tfversion.TerraformVersionCheck{
+			tfversion.RequireAbove(tfversion.Version1_5_0),
+		},
 		CheckDestroy: nil,
 		Steps: []resource.TestStep{
 			{
@@ -180,11 +191,42 @@ func TestAcc_FailoverGroupInterval(t *testing.T) {
 	})
 }
 
+func TestAcc_FailoverGroup_issue2517(t *testing.T) {
+	randomCharacters := strings.ToUpper(acctest.RandStringFromCharSet(10, acctest.CharSetAlpha))
+
+	if _, ok := os.LookupEnv("SNOWFLAKE_BUSINESS_CRITICAL_ACCOUNT"); !ok {
+		t.Skip("Skipping TestAcc_FailoverGroup since not a business critical account")
+	}
+	accountName := os.Getenv("SNOWFLAKE_BUSINESS_CRITICAL_ACCOUNT")
+	resource.Test(t, resource.TestCase{
+		ProtoV6ProviderFactories: acc.TestAccProtoV6ProviderFactories,
+		PreCheck:                 func() { acc.TestAccPreCheck(t) },
+		TerraformVersionChecks: []tfversion.TerraformVersionCheck{
+			tfversion.RequireAbove(tfversion.Version1_5_0),
+		},
+		CheckDestroy: nil,
+		Steps: []resource.TestStep{
+			{
+				Config: failoverGroupWithAccountParameters(randomCharacters, accountName, acc.TestDatabaseName),
+				Check: resource.ComposeTestCheckFunc(
+					resource.TestCheckResourceAttr("snowflake_failover_group.fg", "name", randomCharacters),
+					resource.TestCheckResourceAttr("snowflake_failover_group.fg", "object_types.#", "5"),
+					resource.TestCheckResourceAttr("snowflake_failover_group.fg", "allowed_accounts.#", "1"),
+					resource.TestCheckResourceAttr("snowflake_failover_group.fg", "allowed_databases.#", "1"),
+					resource.TestCheckResourceAttr("snowflake_failover_group.fg", "allowed_integration_types.#", "1"),
+					resource.TestCheckResourceAttr("snowflake_failover_group.fg", "replication_schedule.0.cron.0.expression", "0 0 10-20 * TUE,THU"),
+					resource.TestCheckResourceAttr("snowflake_failover_group.fg", "replication_schedule.0.cron.0.time_zone", "UTC"),
+				),
+			},
+		},
+	})
+}
+
 func failoverGroupBasic(randomCharacters, accountName, databaseName string) string {
 	return fmt.Sprintf(`
 resource "snowflake_failover_group" "fg" {
 	name = "%s"
-	object_types = ["WAREHOUSES","DATABASES", "INTEGRATIONS", "ROLES"]
+	object_types = ["WAREHOUSES", "DATABASES", "INTEGRATIONS", "ROLES"]
 	allowed_accounts= ["%s"]
 	allowed_databases = ["%s"]
 	allowed_integration_types = ["SECURITY INTEGRATIONS"]
@@ -244,3 +286,21 @@ resource "snowflake_failover_group" "fg" {
 }
 `, randomCharacters, accountName, databaseName, expression)
 }
+
+func failoverGroupWithAccountParameters(randomCharacters, accountName, databaseName string) string {
+	return fmt.Sprintf(`
+resource "snowflake_failover_group" "fg" {
+	name = "%s"
+	object_types = ["ACCOUNT PARAMETERS", "WAREHOUSES", "DATABASES", "INTEGRATIONS", "ROLES"]
+	allowed_accounts= ["%s"]
+	allowed_databases = ["%s"]
+	allowed_integration_types = ["SECURITY INTEGRATIONS"]
+	replication_schedule {
+		cron {
+			expression = "0 0 10-20 * TUE,THU"
+			time_zone = "UTC"
+		}
+	}
+}
+`, randomCharacters, accountName, databaseName)
+}
diff --git a/pkg/sdk/failover_groups.go b/pkg/sdk/failover_groups.go
index aea3f32185..1e71f35036 100644
--- a/pkg/sdk/failover_groups.go
+++ b/pkg/sdk/failover_groups.go
@@ -410,7 +410,12 @@ func (row failoverGroupDBRow) convert() *FailoverGroup {
 	ots := strings.Split(row.ObjectTypes, ",")
 	pluralObjectTypes := make([]PluralObjectType, 0, len(ots))
 	for _, ot := range ots {
-		pluralObjectTypes = append(pluralObjectTypes, PluralObjectType(strings.TrimSpace(ot)))
+		pot := PluralObjectType(strings.TrimSpace(ot))
+		if pot == PluralObjectTypeParameters {
+			pluralObjectTypes = append(pluralObjectTypes, PluralObjectType("ACCOUNT PARAMETERS"))
+		} else {
+			pluralObjectTypes = append(pluralObjectTypes, pot)
+		}
 	}
 	its := strings.Split(row.AllowedIntegrationTypes, ",")
 	allowedIntegrationTypes := make([]IntegrationType, 0, len(its))