diff --git a/README.md b/README.md
index 12abefd..f5a1c48 100644
--- a/README.md
+++ b/README.md
@@ -86,6 +86,19 @@ under `machines ssh` and `machines executions`.
 
 The generated contract is defined by the [OpenAPI snapshot](https://storage.googleapis.com/stainless-sdk-openapi-specs/dedalus-labs/dedalus-c0e28b234478af75f61bcf42f5f32818d96ec93b1d8239fa0ff1c801c0e4b64f.yml).
 
+### Selecting the create API
+
+`dedalus machines create` uses `/v1/machines` by default. To request controller
+placement from a server that supports `/v2/machines`, select v2 explicitly:
+
+```sh
+dedalus machines create --api-version v2 --vcpu 2 --memory-mib 4096 --storage-gib 20
+```
+
+The request body and authentication are unchanged. V2 returns acceptance before
+the Machine is running. Use the existing retrieve and lifecycle commands for the
+returned Machine. An unavailable v2 endpoint returns an error without retrying v1.
+
 ### Running commands on a machine
 
 `exec` is an alias for `executions`. Pass the executable and its arguments after
diff --git a/pkg/cmd/create_version_test.go b/pkg/cmd/create_version_test.go
new file mode 100644
index 0000000..b8157d0
--- /dev/null
+++ b/pkg/cmd/create_version_test.go
@@ -0,0 +1,85 @@
+// @custom start
+// Copyright (c) 2026 Dedalus Labs, Inc. All rights reserved.
+
+package cmd
+
+import (
+	"encoding/json"
+	"net/http"
+	"net/http/httptest"
+	"os/exec"
+	"path/filepath"
+	"runtime"
+	"strings"
+	"sync/atomic"
+	"testing"
+
+	"github.com/stretchr/testify/assert"
+	"github.com/stretchr/testify/require"
+)
+
+// A create selects exactly one API version, preserving its body and credentials.
+// Invalid versions send nothing. An unavailable v2 never triggers a v1 create.
+func TestCreateAPIVersion(t *testing.T) {
+	binary := filepath.Join(t.TempDir(), "dedalus")
+	if runtime.GOOS == "windows" {
+		binary += ".exe"
+	}
+	output, err := exec.Command("go", "build", "-o", binary, "../../cmd/dedalus").CombinedOutput()
+	require.NoError(t, err, "%s", output)
+	for _, test := range []struct {
+		name, version, prefix, stdin, path, errorText string
+		status, requests                              int
+	}{
+		{name: "default", path: "/v1/machines", status: 202, requests: 1},
+		{name: "explicit v1", version: "v1", path: "/v1/machines", status: 202, requests: 1},
+		{name: "v2", version: "v2", path: "/v2/machines", status: 202, requests: 1},
+		{name: "v2 gateway prefix", version: "v2", prefix: "/dcs", path: "/dcs/v2/machines", status: 202, requests: 1},
+		{name: "v2 piped body", version: "v2", stdin: `{"vcpu":2,"memory_mib":2048,"storage_gib":20,"autosleep":"never"}`, path: "/v2/machines", status: 202, requests: 1},
+		{name: "invalid", version: "v3", errorText: "api-version must be v1 or v2"},
+		{name: "v2 unavailable", version: "v2", path: "/v2/machines", status: 404, requests: 1, errorText: "404"},
+	} {
+		t.Run(test.name, func(t *testing.T) {
+			var calls atomic.Int32
+			server := httptest.NewServer(http.HandlerFunc(func(w http.ResponseWriter, r *http.Request) {
+				calls.Add(1)
+				assert.Equal(t, http.MethodPost, r.Method)
+				assert.Equal(t, test.path, r.URL.Path)
+				assert.Equal(t, "Bearer test-key", r.Header.Get("Authorization"))
+				var body map[string]any
+				assert.NoError(t, json.NewDecoder(r.Body).Decode(&body))
+				assert.Equal(t, map[string]any{"vcpu": float64(2), "memory_mib": float64(2048), "storage_gib": float64(20), "autosleep": "never"}, body)
+				w.Header().Set("Content-Type", "application/json")
+				if test.status == 0 {
+					t.Error("invalid version reached the API")
+					w.WriteHeader(http.StatusBadRequest)
+					return
+				}
+				w.WriteHeader(test.status)
+				_, err := w.Write([]byte(`{"machine_id":"dm-test","phase":"pending"}`))
+				assert.NoError(t, err)
+			}))
+			defer server.Close()
+			args := []string{"--base-url", server.URL + test.prefix, "--api-key", "test-key", "machines", "create"}
+			if test.version != "" {
+				args = append(args, "--api-version", test.version)
+			}
+			if test.stdin == "" {
+				args = append(args, "--vcpu", "2", "--memory-mib", "2048", "--storage-gib", "20", "--autosleep", "never")
+			}
+			command := exec.Command(binary, args...)
+			command.Stdin = strings.NewReader(test.stdin)
+			output, err := command.CombinedOutput()
+			if test.errorText != "" {
+				require.Error(t, err, "%s", output)
+				require.Contains(t, string(output), test.errorText)
+			} else {
+				require.NoError(t, err, "%s", output)
+				require.Contains(t, string(output), "dm-test")
+			}
+			require.Equal(t, int32(test.requests), calls.Load())
+		})
+	}
+}
+
+// @custom end
diff --git a/pkg/cmd/machine.go b/pkg/cmd/machine.go
index 73259d3..af125e1 100644
--- a/pkg/cmd/machine.go
+++ b/pkg/cmd/machine.go
@@ -19,6 +19,19 @@ var machinesCreate = cli.Command{
 	Usage:   "Create machine",
 	Suggest: true,
 	Flags: []cli.Flag{
+		// @custom start
+		&cli.StringFlag{
+			Name:  "api-version",
+			Usage: "Create endpoint version: v1 or v2 (controller placement)",
+			Value: "v1",
+			Validator: func(version string) error {
+				if version != "v1" && version != "v2" {
+					return fmt.Errorf("api-version must be v1 or v2")
+				}
+				return nil
+			},
+		},
+		// @custom end
 		&requestflag.Flag[string]{
 			Name:     "autosleep",
 			Usage:    `Idle window before autosleep. Accepts fixed duration units like 30s, 30m, 2h, 7d3h4s, or 1w3d, raw seconds ("1800"), or never to disable.`,
@@ -187,8 +200,10 @@ func handleMachinesCreate(ctx context.Context, cmd *cli.Command) error {
 	params := dedalus.MachineNewParams{}
 
 	var res []byte
-	options = append(options, option.WithResponseBodyInto(&res))
-	_, err = client.Machines.New(ctx, params, options...)
+	// @custom start
+	// Use the selected endpoint with the existing body, transport, and errors.
+	err = client.Post(ctx, cmd.String("api-version")+"/machines", params, &res, options...)
+	// @custom end
 	if err != nil {
 		return err
 	}