diff --git a/agent_starter_pack/cli/commands/setup_cicd.py b/agent_starter_pack/cli/commands/setup_cicd.py
index 0a7143f2..8d0ef57a 100644
--- a/agent_starter_pack/cli/commands/setup_cicd.py
+++ b/agent_starter_pack/cli/commands/setup_cicd.py
@@ -372,7 +372,7 @@ def setup_terraform_backend(
     # Ensure bucket exists
     try:
         result = run_command(
-            ["gsutil", "ls", "-b", f"gs://{bucket_name}"],
+            ["gcloud", "storage", "buckets", "describe", f"gs://{bucket_name}"],
             check=False,
             capture_output=True,
         )
@@ -381,11 +381,28 @@ def setup_terraform_backend(
             console.print(f"\n📦 Creating Terraform state bucket: {bucket_name}")
             # Create bucket
             run_command(
-                ["gsutil", "mb", "-p", project_id, "-l", region, f"gs://{bucket_name}"]
+                [
+                    "gcloud",
+                    "storage",
+                    "buckets",
+                    "create",
+                    f"gs://{bucket_name}",
+                    f"--project={project_id}",
+                    f"--location={region}",
+                ]
             )
 
             # Enable versioning
-            run_command(["gsutil", "versioning", "set", "on", f"gs://{bucket_name}"])
+            run_command(
+                [
+                    "gcloud",
+                    "storage",
+                    "buckets",
+                    "update",
+                    f"gs://{bucket_name}",
+                    "--versioning",
+                ]
+            )
     except subprocess.CalledProcessError as e:
         console.print(f"\n❌ Failed to setup state bucket: {e}")
         raise
diff --git a/agent_starter_pack/cli/utils/cicd.py b/agent_starter_pack/cli/utils/cicd.py
index 781e7100..1781c815 100644
--- a/agent_starter_pack/cli/utils/cicd.py
+++ b/agent_starter_pack/cli/utils/cicd.py
@@ -783,7 +783,7 @@ def setup_terraform_state(self, project_dir: Path, env: Environment) -> None:
         # Ensure bucket exists and is accessible
         try:
             result = run_command(
-                ["gsutil", "ls", "-b", f"gs://{bucket_name}"],
+                ["gcloud", "storage", "buckets", "describe", f"gs://{bucket_name}"],
                 check=False,
                 capture_output=True,
             )
@@ -792,18 +792,25 @@ def setup_terraform_state(self, project_dir: Path, env: Environment) -> None:
                 print(f"\n📦 Creating Terraform state bucket: {bucket_name}")
                 run_command(
                     [
-                        "gsutil",
-                        "mb",
-                        "-p",
-                        self.config.cicd_project_id,
-                        "-l",
-                        self.config.region,
+                        "gcloud",
+                        "storage",
+                        "buckets",
+                        "create",
                         f"gs://{bucket_name}",
+                        f"--project={self.config.cicd_project_id}",
+                        f"--location={self.config.region}",
                     ]
                 )
 
                 run_command(
-                    ["gsutil", "versioning", "set", "on", f"gs://{bucket_name}"]
+                    [
+                        "gcloud",
+                        "storage",
+                        "buckets",
+                        "update",
+                        f"gs://{bucket_name}",
+                        "--versioning",
+                    ]
                 )
         except subprocess.CalledProcessError as e:
             print(f"\n❌ Failed to setup state bucket: {e}")
diff --git a/tests/cli/commands/test_setup_cicd.py b/tests/cli/commands/test_setup_cicd.py
index 4801918c..4bd9e364 100644
--- a/tests/cli/commands/test_setup_cicd.py
+++ b/tests/cli/commands/test_setup_cicd.py
@@ -307,11 +307,11 @@ def run_command_side_effect(*args: Any, **kwargs: Any) -> MagicMock:
                 mock_response.stdout = '{"isEmpty": true}'
                 mock_response.returncode = 0
                 print("Mocking repository view command")
-            # Mock gsutil commands
-            elif "gsutil" in command:
+            # Mock gcloud storage commands
+            elif "gcloud" in command and "storage" in command:
                 mock_response.stdout = ""
                 mock_response.returncode = 0
-                print("Mocking gsutil command")
+                print("Mocking gcloud storage command")
             # Mock git init
             elif "git" in command and "init" in command:
                 mock_response.stdout = ""