diff --git a/.gitignore b/.gitignore
index 3fd3e8204..2e7b525af 100644
--- a/.gitignore
+++ b/.gitignore
@@ -16,3 +16,5 @@ key.json
 terraform-ls.tf
 bundle.zip
 .DS_Store
+**/packer_cache
+**/*.pkrvars.hcl
\ No newline at end of file
diff --git a/CHANGELOG.md b/CHANGELOG.md
index 5200ed198..dd4d3ac62 100644
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -4,6 +4,8 @@ All notable changes to this project will be documented in this file.
 
 ## [Unreleased]
 
+- new cloud operations example showing how to deploy infrastructure for [Compute Engine image builder based on Hashicorp Packer](./cloud-operations/packer-image-builder)
+
 ## [6.0.0] - 2021-10-04
 
 - new `apigee-organization` and `apigee-x-instance`
diff --git a/README.md b/README.md
index 8bf4734e9..31da84e3b 100644
--- a/README.md
+++ b/README.md
@@ -19,7 +19,7 @@ Currently available examples:
 - **foundations** - [single level hierarchy](./foundations/environments/) (environments), [multiple level hierarchy](./foundations/business-units/) (business units + environments)
 - **networking** - [hub and spoke via peering](./networking/hub-and-spoke-peering/), [hub and spoke via VPN](./networking/hub-and-spoke-vpn/), [DNS and Google Private Access for on-premises](./networking/onprem-google-access-dns/), [Shared VPC with GKE support](./networking/shared-vpc-gke/), [ILB as next hop](./networking/ilb-next-hop), [PSC for on-premises Cloud Function invocation](./networking/private-cloud-function-from-onprem/), [decentralized firewall](./networking/decentralized-firewall)
 - **data solutions** - [GCE/GCS CMEK via centralized Cloud KMS](./data-solutions/cmek-via-centralized-kms/), [Cloud Storage to Bigquery with Cloud Dataflow](./data-solutions/gcs-to-bq-with-dataflow/)
-- **cloud operations** - [Resource tracking and remediation via Cloud Asset feeds](.//cloud-operations/asset-inventory-feed-remediation), [Granular Cloud DNS IAM via Service Directory](./cloud-operations/dns-fine-grained-iam), [Granular Cloud DNS IAM for Shared VPC](./cloud-operations/dns-shared-vpc), [Compute Engine quota monitoring](./cloud-operations/quota-monitoring), [Scheduled Cloud Asset Inventory Export to Bigquery](./cloud-operations/scheduled-asset-inventory-export-bq)
+- **cloud operations** - [Resource tracking and remediation via Cloud Asset feeds](.//cloud-operations/asset-inventory-feed-remediation), [Granular Cloud DNS IAM via Service Directory](./cloud-operations/dns-fine-grained-iam), [Granular Cloud DNS IAM for Shared VPC](./cloud-operations/dns-shared-vpc), [Compute Engine quota monitoring](./cloud-operations/quota-monitoring), [Scheduled Cloud Asset Inventory Export to Bigquery](./cloud-operations/scheduled-asset-inventory-export-bq), [Packer image builder](./cloud-operations/packer-image-builder)
 - **third party solutions** - [OpenShift cluster on Shared VPC](./third-party-solutions/openshift)
 
 For more information see the README files in the [foundations](./foundations/), [networking](./networking/), [data solutions](./data-solutions/) and [cloud operations](./cloud-operations/) folders.
diff --git a/cloud-operations/packer-image-builder/packer/build.auto.pkrvars.hcl b/cloud-operations/packer-image-builder/packer/build.auto.pkrvars.hcl
deleted file mode 100755
index 84d11ea5f..000000000
--- a/cloud-operations/packer-image-builder/packer/build.auto.pkrvars.hcl
+++ /dev/null
@@ -1,8 +0,0 @@
-# Packer variables file template.
-# Used by Terraform to generate Packer variable file.
-project_id         = "mstefaniak-service"
-compute_zone       = "europe-central2-a"
-builder_sa         = "image-builder@mstefaniak-service.iam.gserviceaccount.com"
-compute_sa         = "image-builder-vm@mstefaniak-service.iam.gserviceaccount.com"
-compute_subnetwork = "image-builder"
-use_iap            = true
\ No newline at end of file