diff --git a/src/lightning_app/CHANGELOG.md b/src/lightning_app/CHANGELOG.md
index 1888fef86a5ae..2daf86b101fe2 100644
--- a/src/lightning_app/CHANGELOG.md
+++ b/src/lightning_app/CHANGELOG.md
@@ -31,6 +31,7 @@ The format is based on [Keep a Changelog](http://keepachangelog.com/en/1.0.0/).
 ### Changed
 
 - Improved the show logs command to be standalone and re-usable ([#15343](https://github.com/Lightning-AI/lightning/pull/15343)
+- Removed the `--instance-types` option when creating clusters ([#15314](https://github.com/Lightning-AI/lightning/pull/15314))
 
 ### Fixed
 
diff --git a/src/lightning_app/cli/cmd_clusters.py b/src/lightning_app/cli/cmd_clusters.py
index 0cff6eb83a854..4bb8b1fdb793f 100644
--- a/src/lightning_app/cli/cmd_clusters.py
+++ b/src/lightning_app/cli/cmd_clusters.py
@@ -15,7 +15,6 @@
     V1ClusterState,
     V1ClusterType,
     V1CreateClusterRequest,
-    V1InstanceSpec,
     V1KubernetesClusterDriver,
 )
 from rich.console import Console
@@ -86,7 +85,6 @@ def create(
         role_arn: str = None,
         region: str = "us-east-1",
         external_id: str = None,
-        instance_types: List[str] = [],
         edit_before_creation: bool = False,
         wait: bool = False,
     ) -> None:
@@ -98,7 +96,6 @@ def create(
             role_arn: AWS IAM Role ARN used to provision resources
             region: AWS region containing compute resources
             external_id: AWS IAM Role external ID
-            instance_types: AWS instance types supported by the cluster
             edit_before_creation: Enables interactive editing of requests before submitting it to Lightning AI.
             wait: Waits for the cluster to be in a RUNNING state. Only use this for debugging.
         """
@@ -119,7 +116,6 @@ def create(
                             region=region,
                             role_arn=role_arn,
                             external_id=external_id,
-                            instance_types=[V1InstanceSpec(name=x) for x in instance_types],
                         )
                     )
                 ),
diff --git a/src/lightning_app/cli/lightning_cli_create.py b/src/lightning_app/cli/lightning_cli_create.py
index 49628dab02dea..34c5d356f4989 100644
--- a/src/lightning_app/cli/lightning_cli_create.py
+++ b/src/lightning_app/cli/lightning_cli_create.py
@@ -27,14 +27,6 @@ def create() -> None:
     help="AWS region that is used to host the associated resources.",
     hidden=True,
 )
-@click.option(
-    "--instance-types",
-    "instance_types",
-    type=str,
-    required=False,
-    default=None,
-    help="Instance types that you want to support, for computer jobs within the cluster.",
-)
 @click.option(
     "--enable-performance",
     "enable_performance",
@@ -66,7 +58,6 @@ def create_cluster(
     role_arn: str,
     external_id: str,
     provider: str,
-    instance_types: str,
     edit_before_creation: bool,
     enable_performance: bool,
     wait: bool,
@@ -82,7 +73,6 @@ def create_cluster(
         region=region,
         role_arn=role_arn,
         external_id=external_id,
-        instance_types=instance_types.split(",") if instance_types is not None else [],
         edit_before_creation=edit_before_creation,
         cost_savings=not enable_performance,
         wait=wait,
diff --git a/tests/tests_app/cli/test_cli.py b/tests/tests_app/cli/test_cli.py
index 513a7e7d54d12..044b8542da073 100644
--- a/tests/tests_app/cli/test_cli.py
+++ b/tests/tests_app/cli/test_cli.py
@@ -99,17 +99,13 @@ def test_main_lightning_cli_help():
 @mock.patch("lightning_cloud.login.Auth.authenticate", MagicMock())
 @mock.patch("lightning_app.cli.cmd_clusters.AWSClusterManager.create")
 @pytest.mark.parametrize(
-    "extra_arguments,expected_instance_types,expected_cost_savings_mode",
+    "extra_arguments,expected_cost_savings_mode",
     [
-        (["--instance-types", "t3.xlarge"], ["t3.xlarge"], True),
-        (["--instance-types", "t3.xlarge,t3.2xlarge"], ["t3.xlarge", "t3.2xlarge"], True),
-        ([], [], True),
-        (["--enable-performance"], [], False),
+        ([], True),
+        (["--enable-performance"], False),
     ],
 )
-def test_create_cluster(
-    create_command: mock.MagicMock, extra_arguments, expected_instance_types, expected_cost_savings_mode
-):
+def test_create_cluster(create_command: mock.MagicMock, extra_arguments, expected_cost_savings_mode):
     runner = CliRunner()
     runner.invoke(
         create_cluster,
@@ -130,7 +126,6 @@ def test_create_cluster(
         region="us-east-1",
         role_arn="arn:aws:iam::1234567890:role/lai-byoc",
         external_id="dummy",
-        instance_types=expected_instance_types,
         edit_before_creation=False,
         cost_savings=expected_cost_savings_mode,
         wait=False,
diff --git a/tests/tests_app/cli/test_cmd_clusters.py b/tests/tests_app/cli/test_cmd_clusters.py
index 3063ffe742cb1..92df6c172c9f0 100644
--- a/tests/tests_app/cli/test_cmd_clusters.py
+++ b/tests/tests_app/cli/test_cmd_clusters.py
@@ -13,7 +13,6 @@
     V1ClusterStatus,
     V1ClusterType,
     V1CreateClusterRequest,
-    V1InstanceSpec,
     V1KubernetesClusterDriver,
     V1ListClustersResponse,
 )
@@ -43,7 +42,6 @@ def test_create_cluster(api: mock.MagicMock):
         cluster_name="test-7",
         external_id="dummy",
         role_arn="arn:aws:iam::1234567890:role/lai-byoc",
-        instance_types=["t2.small"],
         region="us-west-2",
     )
 
@@ -59,7 +57,6 @@ def test_create_cluster(api: mock.MagicMock):
                             region="us-west-2",
                             role_arn="arn:aws:iam::1234567890:role/lai-byoc",
                             external_id="dummy",
-                            instance_types=[V1InstanceSpec(name="t2.small")],
                         )
                     )
                 ),