diff --git a/test/e2e/upgrade.go b/test/e2e/upgrade.go
index d22ea710a429..52ac59d9ef39 100644
--- a/test/e2e/upgrade.go
+++ b/test/e2e/upgrade.go
@@ -60,6 +60,8 @@ func runSimpleUpgradeFlowWorkerNodeVersionForBareMetal(test *framework.ClusterE2
 	test.ValidateHardwareDecommissioned()
 }
 
+// runInPlaceUpgradeFlow makes use of the new ValidateClusterState method instead of ValidateCluster, but we should incorporate this
+// in runSimpleUpgradeFlow itself.
 func runInPlaceUpgradeFlow(test *framework.ClusterE2ETest, clusterOpts ...framework.ClusterE2ETestOpt) {
 	test.CreateCluster()
 	test.UpgradeClusterWithNewConfig(clusterOpts)
diff --git a/test/e2e/vsphere_test.go b/test/e2e/vsphere_test.go
index 94cf831a70b1..989af4fa7657 100644
--- a/test/e2e/vsphere_test.go
+++ b/test/e2e/vsphere_test.go
@@ -2723,6 +2723,66 @@ func TestVSphereKubernetes129Ubuntu2004To2204Upgrade(t *testing.T) {
 	)
 }
 
+func TestVSphereKubernetes127UbuntuTo128InPlaceUpgradeCPOnly(t *testing.T) {
+	provider := framework.NewVSphere(t, framework.WithUbuntu127())
+	kube127 := v1alpha1.Kube127
+	kube128 := v1alpha1.Kube128
+	test := framework.NewClusterE2ETest(
+		t,
+		provider,
+		framework.WithEnvVar(features.VSphereInPlaceEnvVar, "true"),
+	).WithClusterConfig(
+		api.ClusterToConfigFiller(
+			api.WithKubernetesVersion(kube127),
+			api.WithControlPlaneCount(1),
+			api.WithWorkerNodeCount(1),
+			api.WithWorkerKubernetesVersion(nodeGroupLabel1, &kube127),
+			api.WithStackedEtcdTopology(),
+			api.WithInPlaceUpgradeStrategy(),
+		),
+		api.VSphereToConfigFiller(
+			api.RemoveEtcdVsphereMachineConfig(),
+		),
+		provider.WithKubeVersionAndOS(v1alpha1.Kube127, framework.Ubuntu2004, nil),
+	)
+	runInPlaceUpgradeFlow(
+		test,
+		framework.WithClusterUpgrade(api.WithKubernetesVersion(kube128)),
+		provider.WithProviderUpgrade(provider.Ubuntu128TemplateForMachineConfig(providers.GetControlPlaneNodeName(test.ClusterName))),
+	)
+}
+
+func TestVSphereKubernetes127UbuntuTo128InPlaceUpgradeWorkerOnly(t *testing.T) {
+	provider := framework.NewVSphere(t, framework.WithUbuntu127())
+	kube127 := v1alpha1.Kube127
+	kube128 := v1alpha1.Kube128
+	test := framework.NewClusterE2ETest(
+		t,
+		provider,
+		framework.WithEnvVar(features.VSphereInPlaceEnvVar, "true"),
+	).WithClusterConfig(
+		api.ClusterToConfigFiller(
+			api.WithKubernetesVersion(kube128),
+			api.WithControlPlaneCount(1),
+			api.WithWorkerNodeCount(1),
+			api.WithWorkerKubernetesVersion(nodeGroupLabel1, &kube127),
+			api.WithStackedEtcdTopology(),
+			api.WithInPlaceUpgradeStrategy(),
+		),
+		api.VSphereToConfigFiller(
+			api.RemoveEtcdVsphereMachineConfig(),
+		),
+	)
+	test.UpdateClusterConfig(
+		provider.WithKubeVersionAndOSMachineConfig(providers.GetControlPlaneNodeName(test.ClusterName), kube128, framework.Ubuntu2004),
+	)
+	runInPlaceUpgradeFlow(
+		test,
+		framework.WithClusterUpgrade(api.WithWorkerKubernetesVersion(nodeGroupLabel1, &kube128)),
+		provider.WithProviderUpgrade(provider.Ubuntu128Template()), // this will just set everything to 1.28 as expected
+	)
+}
+
 func TestVSphereKubernetes127UbuntuTo128UpgradeCiliumPolicyEnforcementMode(t *testing.T) {
 	provider := framework.NewVSphere(t, framework.WithUbuntu127())
 	test := framework.NewClusterE2ETest(
diff --git a/test/framework/vsphere.go b/test/framework/vsphere.go
index 013304a61c8c..6e4b9ec28c06 100644
--- a/test/framework/vsphere.go
+++ b/test/framework/vsphere.go
@@ -385,6 +385,16 @@ func (v *VSphere) WithKubeVersionAndOS(kubeVersion anywherev1.KubernetesVersion,
 	)
 }
 
+// WithKubeVersionAndOSMachineConfig returns a cluster config filler that sets the cluster kube version and the right template for a specific
+// vsphere machine config.
+func (v *VSphere) WithKubeVersionAndOSMachineConfig(name string, kubeVersion anywherev1.KubernetesVersion, os OS) api.ClusterConfigFiller {
+	return api.JoinClusterConfigFillers(
+		api.VSphereToConfigFiller(
+			v.templateForKubeVersionAndOSMachineConfig(name, kubeVersion, os),
+		),
+	)
+}
+
 // WithUbuntu125 returns a cluster config filler that sets the kubernetes version of the cluster to 1.25
 // as well as the right ubuntu template and osFamily for all VSphereMachineConfigs.
 func (v *VSphere) WithUbuntu125() api.ClusterConfigFiller {
@@ -452,6 +462,12 @@ func (v *VSphere) templateForKubeVersionAndOS(kubeVersion anywherev1.KubernetesV
 	return api.WithTemplateForAllMachines(template)
 }
 
+// templateForKubeVersionAndOSMachineConfig returns a vSphere filler for the given OS and Kubernetes version for a specific machine config.
+func (v *VSphere) templateForKubeVersionAndOSMachineConfig(name string, kubeVersion anywherev1.KubernetesVersion, os OS) api.VSphereFiller {
+	template := v.templateForDevRelease(kubeVersion, os)
+	return api.WithMachineTemplate(name, template)
+}
+
 // Ubuntu125Template returns vsphere filler for 1.25 Ubuntu.
 func (v *VSphere) Ubuntu125Template() api.VSphereFiller {
 	return v.templateForKubeVersionAndOS(anywherev1.Kube125, Ubuntu2004, nil)
@@ -477,6 +493,11 @@ func (v *VSphere) Ubuntu129Template() api.VSphereFiller {
 	return v.templateForKubeVersionAndOS(anywherev1.Kube129, Ubuntu2004, nil)
 }
 
+// Ubuntu128TemplateForMachineConfig returns vsphere filler for 1.28 Ubuntu for a specific machine config.
+func (v *VSphere) Ubuntu128TemplateForMachineConfig(name string) api.VSphereFiller {
+	return v.templateForKubeVersionAndOSMachineConfig(name, anywherev1.Kube128, Ubuntu2004)
+}
+
 // Ubuntu2204Kubernetes126Template returns vsphere filler for 1.26 Ubuntu 22.04.
 func (v *VSphere) Ubuntu2204Kubernetes126Template() api.VSphereFiller {
 	return v.templateForKubeVersionAndOS(anywherev1.Kube126, Ubuntu2204, nil)