diff --git a/apisix/cli/ngx_tpl.lua b/apisix/cli/ngx_tpl.lua
index d5d03bad0ae9..fdb8fe07e2e2 100644
--- a/apisix/cli/ngx_tpl.lua
+++ b/apisix/cli/ngx_tpl.lua
@@ -73,6 +73,7 @@ lua {
     {% if status then %}
     lua_shared_dict status-report {* meta.lua_shared_dict["status-report"] *};
     {% end %}
+    lua_shared_dict nacos 10m;
 }
 
 {% if enabled_stream_plugins["prometheus"] and not enable_http then %}
diff --git a/apisix/discovery/nacos/factory.lua b/apisix/discovery/nacos/factory.lua
new file mode 100644
index 000000000000..7b21b0f54940
--- /dev/null
+++ b/apisix/discovery/nacos/factory.lua
@@ -0,0 +1,303 @@
+--
+-- Licensed to the Apache Software Foundation (ASF) under one or more
+-- contributor license agreements.  See the NOTICE file distributed with
+-- this work for additional information regarding copyright ownership.
+-- The ASF licenses this file to You under the Apache License, Version 2.0
+-- (the "License"); you may not use this file except in compliance with
+-- the License.  You may obtain a copy of the License at
+--
+--     http://www.apache.org/licenses/LICENSE-2.0
+--
+-- Unless required by applicable law or agreed to in writing, software
+-- distributed under the License is distributed on an "AS IS" BASIS,
+-- WITHOUT WARRANTIES OR CONDITIONS OF ANY KIND, either express or implied.
+-- See the License for the specific language governing permissions and
+-- limitations under the License.
+--
+
+local require            = require
+local core               = require("apisix.core")
+local http               = require('resty.http')
+local ngx                = ngx
+local ngx_re             = require('ngx.re')
+local utils              = require("apisix.discovery.nacos.utils")
+local string             = string
+local string_sub         = string.sub
+local str_find           = core.string.find
+local ngx_timer_at       = ngx.timer.at
+local math_random        = math.random
+local ipairs             = ipairs
+local pairs              = pairs
+local shdict_name        = "nacos"
+
+local nacos_dict          = ngx.shared[shdict_name]
+local NACOS_LOGIN_PATH    = "/auth/login"
+local NACOS_INSTANCE_PATH = "/ns/instance/list"
+local _M = {}
+
+
+local function _request(method, uri, params, headers, body, options)
+    local url = uri
+    if params ~= nil and params ~= {} then
+        url = uri .. "?" .. ngx.encode_args(params)
+    end
+    local httpc = http.new()
+    local timeout = options and options.timeout or {}
+    local connect_timeout = timeout.connect and timeout.connect * 1000 or 2000
+    local read_timeout = timeout.read and timeout.read * 1000 or 2000
+    local write_timeout = timeout.write and timeout.write * 1000 or 5000
+
+    httpc:set_timeouts(connect_timeout, read_timeout, write_timeout )
+    local res, err = httpc:request_uri(url, {
+        method = method,
+        headers = headers,
+        body = body,
+        ssl_verify = true,
+    })
+
+    if not res then
+        return nil, err
+    end
+
+    if not res.body or res.status ~= 200 then
+        return nil, 'status = ' .. res.status
+    end
+
+    core.log.info("request to nacos, uri: ", url, "response: ", res.body)
+
+    local data, err = core.json.decode(res.body)
+    if not data then
+        return nil, err
+    end
+
+    return data
+end
+
+
+local function get_base_uri(hosts)
+    local host = hosts
+    -- TODO Add health check to get healthy nodes.
+    local url = host[math_random(#host)]
+    local auth_idx = core.string.rfind_char(url, '@')
+    local username, password
+    if auth_idx then
+        local protocol_idx = str_find(url, '://')
+        local protocol = string_sub(url, 1, protocol_idx + 2)
+        local user_and_password = string_sub(url, protocol_idx + 3, auth_idx - 1)
+        local arr = ngx_re.split(user_and_password, ':')
+        if #arr == 2 then
+            username = arr[1]
+            password = arr[2]
+        end
+        local other = string_sub(url, auth_idx + 1)
+        url = protocol .. other
+    end
+    return url, username, password
+end
+
+local function request_login(self, host, username, password)
+    local params = {
+        username = username,
+        password = password,
+    }
+    -- backward compat: NACOS_LOGIN_PATH starts with "/" so
+    -- we need to remove the last "/" from prefix
+    if string_sub(self.config.prefix, -1) == "/" then
+        self.config.prefix = string_sub(self.config.prefix, 1, -2)
+    end
+    local uri = host .. self.config.prefix .. NACOS_LOGIN_PATH
+
+    local headers = {
+        ["Content-Type"] ="application/x-www-form-urlencoded"
+    }
+
+    local resp, err = _request("POST", uri, params, headers, nil, {timeout=self.config.timeout})
+    if not resp then
+        core.log.error("failed to fetch token from nacos, uri: ", uri, " err: ", err)
+        return ""
+    end
+    return resp.accessToken
+end
+
+
+local function request_instance_list(self, params, host)
+    -- backward compat: NACOS_INSTANCE_PATH starts with "/" so
+    -- we need to remove the last "/" from prefix
+    if string_sub(self.config.prefix, -1) == "/" then
+        self.config.prefix = string_sub(self.config.prefix, 1, -2)
+    end
+    local uri = host .. self.config.prefix .. NACOS_INSTANCE_PATH
+
+    local resp, err = _request("GET", uri, params)
+    if not resp then
+        core.log.error("failed to fetch instances list from nacos, uri: ", uri, " err: ", err)
+        return {}
+    end
+    return resp.hosts or {}
+end
+
+local function is_grpc(scheme)
+    return scheme == "grpc" or scheme == "grpcs"
+end
+
+
+local function fetch_instances(self, serv)
+    local config = self.config
+
+    local params = {
+        namespaceId = serv.namespace_id or "",
+        groupName = serv.group_name or "DEFAULT_GROUP",
+        serviceName = serv.name,
+        healthyOnly = "true"
+    }
+
+    local auth = config.auth or {}
+    -- for backward compat:
+    -- In older method, we passed username and password inside of host
+    -- In new method its passed separately
+    local username, password, host
+    if config.old_conf then
+        -- extract username and password from host
+        host, username, password = get_base_uri(config.hosts)
+    else
+        host = config.hosts[math_random(#config.hosts)]
+        if (auth.username and auth.username ~= "") and (auth.password and auth.password ~= "") then
+            username = auth.username
+            password = auth.password
+         end
+    end
+    if username and username ~= "" and password and password ~= "" then
+        local token = request_login(self, host, username, password)
+        params["accessToken"] = token
+    end
+
+    if auth.token and auth.token ~= "" then
+        params["accessToken"] = auth.token
+    end
+
+    if (auth.access_key and auth.access_key ~= "") and
+       (auth.secret_key and auth.secret_key ~= "") then
+       local ak, data, signature = utils.generate_signature(serv.group_name,
+                                  serv.name, auth.access_key, auth.secret_key)
+       params["ak"] = ak
+       params["data"] = data
+       params["signature"] = signature
+    end
+
+    local instances = request_instance_list(self, params, host)
+    local nodes = {}
+    for _, instance in ipairs(instances) do
+        local node = {
+            host = instance.ip,
+            port = instance.port,
+            weight = instance.weight or self.config.default_weight,
+            metadata = instance.metadata,
+        }
+        -- docs: https://github.com/yidongnan/grpc-spring-boot-starter/pull/496
+        if is_grpc(instance.scheme) and instance.metadata and instance.metadata.gRPC_port then
+            node.port = host.metadata.gRPC_port
+        end
+        core.table.insert(nodes, node)
+    end
+    return nodes
+end
+
+local curr_services_in_use
+local function fetch_full_registry(self)
+    return function (premature)
+        if premature then
+            return
+        end
+
+        local config = self.config
+        local services_in_use = utils.get_nacos_services(config.id)
+        local service_names = {}
+        for _, serv in ipairs(services_in_use) do
+            if self.stop_flag then
+                core.log.error("nacos client is exited, id: ", config.id)
+                return
+            end
+            local key = utils.generate_key(serv.id, serv.namespace_id,
+                                          serv.group_name, serv.name)
+            service_names[key] = true
+            local nodes = self:fetch_instances(serv)
+            if #nodes > 0 then
+                local content = core.json.encode(nodes)
+                local key = key
+                nacos_dict:set(key, content)
+             end
+        end
+        -- delete unused service names
+        if not curr_services_in_use then
+            curr_services_in_use = {}
+        end
+        if not curr_services_in_use[config.id] then
+            curr_services_in_use[config.id] = {}
+        end
+        for name in pairs(service_names) do
+            curr_services_in_use[config.id][name] = true
+        end
+        for name in pairs(curr_services_in_use[config.id]) do
+            if not service_names[name] then
+                nacos_dict:delete(name)
+                curr_services_in_use[config.id][name] = nil
+            end
+        end
+        ngx_timer_at(self.config.fetch_interval, self:fetch_full_registry())
+    end
+end
+
+
+local function stop(self)
+    self.stop_flag = true
+
+    if self.checker then
+        self.checker:clear()
+    end
+end
+
+
+local function start(self)
+    ngx_timer_at(0, self:fetch_full_registry())
+end
+
+
+function _M.new(config)
+    local version = ngx.md5(core.json.encode(config, true))
+
+    local client = {
+        id = config.id,
+        version = version,
+        config = config,
+        stop_flag = false,
+
+        start = start,
+        stop = stop,
+        fetch_instances = fetch_instances,
+        fetch_full_registry = fetch_full_registry,
+    }
+
+    if config.check then
+        local health_check = require("resty.healthcheck")
+        local checker = health_check.new({
+            name = config.id,
+            shm_name = "nacos",
+            checks = config.check
+        })
+
+        local ok, err = checker:add_target(config.check.active.host,
+                               config.check.active.port, nil, false)
+        if not ok then
+            core.log.error("failed to add health check target",
+                          core.json.encode(config), " err: ", err)
+        else
+            core.log.info("success to add health checker, id ", config.id,
+                         " host ", config.check.active.host, " port ", config.check.active.port)
+            client.checker = checker
+        end
+    end
+
+    return client
+end
+
+return _M
diff --git a/apisix/discovery/nacos/init.lua b/apisix/discovery/nacos/init.lua
index 86e9d4125a83..cc0d5427d829 100644
--- a/apisix/discovery/nacos/init.lua
+++ b/apisix/discovery/nacos/init.lua
@@ -15,410 +15,147 @@
 -- limitations under the License.
 --
 
-local require            = require
-local local_conf         = require('apisix.core.config_local').local_conf()
-local http               = require('resty.http')
-local core               = require('apisix.core')
-local ipairs             = ipairs
-local type               = type
-local math               = math
-local math_random        = math.random
-local ngx                = ngx
-local ngx_re             = require('ngx.re')
-local ngx_timer_at       = ngx.timer.at
-local ngx_timer_every    = ngx.timer.every
-local string             = string
-local string_sub         = string.sub
-local str_byte           = string.byte
-local str_find           = core.string.find
-local log                = core.log
+local core          = require("apisix.core")
+local nacos_factory = require("apisix.discovery.nacos.factory")
+local utils         = require("apisix.discovery.nacos.utils")
+local process       = require("ngx.process")
+local ipairs        = ipairs
+local require       = require
+local table         = require("apisix.core.table")
+local pcall         = pcall
+local ngx           = ngx
+
+local shdict_name = "nacos"
+
+local nacos_dict    = ngx.shared[shdict_name]
+local OLD_CONFIG_ID = utils.old_config_id
+local _M            = {}
 
-local default_weight
-local applications
-local auth_path = 'auth/login'
-local instance_list_path = 'ns/instance/list?healthyOnly=true&serviceName='
-local default_namespace_id = "public"
-local default_group_name = "DEFAULT_GROUP"
-local access_key
-local secret_key
-
-local events
-local events_list
-
-
-local _M = {}
-
-local function discovery_nacos_callback(data, event, source, pid)
-    applications = data
-    log.notice("update local variable application, event is: ", event,
-               "source: ", source, "server pid:", pid,
-               ", application: ", core.json.encode(applications, true))
-end
-
-
-local function request(request_uri, path, body, method, basic_auth)
-    local url = request_uri .. path
-    log.info('request url:', url)
-    local headers = {}
-    headers['Accept'] = 'application/json'
-
-    if basic_auth then
-        headers['Authorization'] = basic_auth
-    end
+function _M.nodes(service_name, discovery_args)
+    local ns_id = discovery_args and discovery_args.namespace_id or utils.default_namespace_id
+    local group_name = discovery_args and discovery_args.group_name or utils.default_group_name
+    local id = discovery_args and discovery_args.id or OLD_CONFIG_ID
+    local key = utils.generate_key(id,
+                                   ns_id,
+                                   group_name,
+                                   service_name)
+    local value = nacos_dict:get(key)
+    local nodes = {}
+    if not value then
+        -- maximum waiting time: 5 seconds
+        local waiting_time = 5
+        local step = 0.1
+        local logged = false
+        while not value and waiting_time > 0 do
+            if not logged then
+                logged = true
+            end
 
-    if body and 'table' == type(body) then
-        local err
-        body, err = core.json.encode(body)
-        if not body then
-            return nil, 'invalid body : ' .. err
+            ngx.sleep(step)
+            waiting_time = waiting_time - step
+            value = nacos_dict:get(key)
         end
-        headers['Content-Type'] = 'application/json'
-    end
-
-    local httpc = http.new()
-    local timeout = local_conf.discovery.nacos.timeout
-    local connect_timeout = timeout.connect
-    local send_timeout = timeout.send
-    local read_timeout = timeout.read
-    log.info('connect_timeout:', connect_timeout, ', send_timeout:', send_timeout,
-             ', read_timeout:', read_timeout)
-    httpc:set_timeouts(connect_timeout, send_timeout, read_timeout)
-    local res, err = httpc:request_uri(url, {
-        method = method,
-        headers = headers,
-        body = body,
-        ssl_verify = true,
-    })
-    if not res then
-        return nil, err
-    end
-
-    if not res.body or res.status ~= 200 then
-        return nil, 'status = ' .. res.status
-    end
-
-    local json_str = res.body
-    local data, err = core.json.decode(json_str)
-    if not data then
-        return nil, err
     end
-    return data
-end
-
-
-local function get_url(request_uri, path)
-    return request(request_uri, path, nil, 'GET', nil)
-end
-
-
-local function post_url(request_uri, path, body)
-    return request(request_uri, path, body, 'POST', nil)
-end
-
-
-local function get_token_param(base_uri, username, password)
-    if not username or not password then
-        return ''
+    if not value then
+        core.log.error("nacos service not found: ", service_name)
+        return nodes
     end
 
-    local args = { username = username, password = password}
-    local data, err = post_url(base_uri, auth_path .. '?' .. ngx.encode_args(args), nil)
-    if err then
-        log.error('nacos login fail:', username, ' ', password, ' desc:', err)
-        return nil, err
-    end
-    return '&accessToken=' .. data.accessToken
-end
+    nodes = core.json.decode(value)
 
-
-local function get_namespace_param(namespace_id)
-    local param = ''
-    if namespace_id then
-        local args = {namespaceId = namespace_id}
-        param = '&' .. ngx.encode_args(args)
-    end
-    return param
-end
-
-
-local function get_group_name_param(group_name)
-    local param = ''
-    if group_name then
-        local args = {groupName = group_name}
-        param = '&' .. ngx.encode_args(args)
-    end
-    return param
-end
-
-
-local function get_signed_param(group_name, service_name)
-    local param = ''
-    if access_key ~= '' and secret_key ~= '' then
-        local str_to_sign = ngx.now() * 1000 .. '@@' .. group_name .. '@@' .. service_name
-        local args = {
-            ak = access_key,
-            data = str_to_sign,
-            signature = ngx.encode_base64(ngx.hmac_sha1(secret_key, str_to_sign))
-        }
-        param = '&' .. ngx.encode_args(args)
-    end
-    return param
-end
-
-
-local function get_base_uri()
-    local host = local_conf.discovery.nacos.host
-    -- TODO Add health check to get healthy nodes.
-    local url = host[math_random(#host)]
-    local auth_idx = core.string.rfind_char(url, '@')
-    local username, password
-    if auth_idx then
-        local protocol_idx = str_find(url, '://')
-        local protocol = string_sub(url, 1, protocol_idx + 2)
-        local user_and_password = string_sub(url, protocol_idx + 3, auth_idx - 1)
-        local arr = ngx_re.split(user_and_password, ':')
-        if #arr == 2 then
-            username = arr[1]
-            password = arr[2]
+    local res = {}
+    for _, node in ipairs(nodes) do
+        if discovery_args then
+            if utils.match_metdata(node.metadata, discovery_args.metadata) then
+                core.table.insert(res, node)
+            end
+        else
+            core.table.insert(res, node)
         end
-        local other = string_sub(url, auth_idx + 1)
-        url = protocol .. other
-    end
-
-    if local_conf.discovery.nacos.prefix then
-        url = url .. local_conf.discovery.nacos.prefix
     end
 
-    if str_byte(url, #url) ~= str_byte('/') then
-        url = url .. '/'
-    end
-
-    return url, username, password
+    core.log.info("nacos service_name: ", service_name, " nodes: ", core.json.encode(res))
+    return res
 end
 
-
-local function de_duplication(services, namespace_id, group_name, service_name, scheme)
-    for _, service in ipairs(services) do
-        if service.namespace_id == namespace_id and service.group_name == group_name
-                and service.service_name == service_name and service.scheme == scheme then
-            return true
-        end
-    end
-    return false
+local function generate_new_config_from_old(discovery_conf)
+    local config = {
+        id = OLD_CONFIG_ID,
+        hosts = discovery_conf.host,
+        prefix = discovery_conf.prefix,
+        fetch_interval = discovery_conf.fetch_interval,
+        auth = {
+            access_key = discovery_conf.access_key,
+            secret_key = discovery_conf.secret_key,
+        },
+        default_weight = discovery_conf.weight,
+        timeout = discovery_conf.timeout,
+        old_conf = true
+    }
+    return {config}
 end
 
+function _M.init_worker()
+    local local_conf = require("apisix.core.config_local").local_conf(true)
+    local discovery_conf = local_conf.discovery and local_conf.discovery.nacos or {}
 
-local function iter_and_add_service(services, values)
-    if not values then
+    if process.type() ~= "privileged agent" then
         return
     end
 
-    for _, value in core.config_util.iterate_values(values) do
-        local conf = value.value
-        if not conf then
-            goto CONTINUE
-        end
-
-        local up
-        if conf.upstream then
-            up = conf.upstream
-        else
-            up = conf
-        end
-
-        local namespace_id = (up.discovery_args and up.discovery_args.namespace_id)
-                             or default_namespace_id
-
-        local group_name = (up.discovery_args and up.discovery_args.group_name)
-                           or default_group_name
-
-        local dup = de_duplication(services, namespace_id, group_name,
-                up.service_name, up.scheme)
-        if dup then
-            goto CONTINUE
-        end
-
-        if up.discovery_type == 'nacos' then
-            core.table.insert(services, {
-                service_name = up.service_name,
-                namespace_id = namespace_id,
-                group_name = group_name,
-                scheme = up.scheme,
-            })
-        end
-        ::CONTINUE::
+    -- support old way
+    if discovery_conf.host then
+        discovery_conf = generate_new_config_from_old(discovery_conf)
     end
-end
-
-
-local function get_nacos_services()
-    local services = {}
-
-    -- here we use lazy load to work around circle dependency
-    local get_upstreams = require('apisix.upstream').upstreams
-    local get_routes = require('apisix.router').http_routes
-    local get_stream_routes = require('apisix.router').stream_routes
-    local get_services = require('apisix.http.service').services
-    local values = get_upstreams()
-    iter_and_add_service(services, values)
-    values = get_routes()
-    iter_and_add_service(services, values)
-    values = get_services()
-    iter_and_add_service(services, values)
-    values = get_stream_routes()
-    iter_and_add_service(services, values)
-    return services
-end
-
-local function is_grpc(scheme)
-    if scheme == 'grpc' or scheme == 'grpcs' then
-        return true
+    for _, val in ipairs(discovery_conf) do
+        local new_client = nacos_factory.new(val)
+        new_client:start()
     end
-
-    return false
 end
 
 
-local function fetch_full_registry(premature)
-    if premature then
-        return
-    end
+-- Now we use control plane to list the services
+function _M.list_all_services()
+    return {}
+end
 
-    local up_apps = {}
-    local base_uri, username, password = get_base_uri()
-    local token_param, err = get_token_param(base_uri, username, password)
-    if err then
-        log.error('get_token_param error:', err)
-        if not applications then
-            applications = up_apps
-        end
-        return
-    end
 
-    local infos = get_nacos_services()
-    if #infos == 0 then
-        applications = up_apps
-        return
-    end
+local cjson = require "cjson"
 
-    for _, service_info in ipairs(infos) do
-        local data, err
-        local namespace_id = service_info.namespace_id
-        local group_name = service_info.group_name
-        local scheme = service_info.scheme or ''
-        local namespace_param = get_namespace_param(service_info.namespace_id)
-        local group_name_param = get_group_name_param(service_info.group_name)
-        local signature_param = get_signed_param(service_info.group_name, service_info.service_name)
-        local query_path = instance_list_path .. service_info.service_name
-                           .. token_param .. namespace_param .. group_name_param
-                           .. signature_param
-        data, err = get_url(base_uri, query_path)
-        if err then
-            log.error('get_url:', query_path, ' err:', err)
-            goto CONTINUE
-        end
-
-        if not up_apps[namespace_id] then
-            up_apps[namespace_id] = {}
-        end
+function _M.dump_data()
+    local applications = {}
+    local keys = nacos_dict:get_keys() or {}
 
-        if not up_apps[namespace_id][group_name] then
-            up_apps[namespace_id][group_name] = {}
+    for _, key in ipairs(keys) do
+        local parts = {}
+        for part in key:gmatch("[^/]+") do
+            table.insert(parts, part)
         end
 
-        for _, host in ipairs(data.hosts) do
-            local nodes = up_apps[namespace_id]
-                [group_name][service_info.service_name]
-            if not nodes then
-                nodes = {}
-                up_apps[namespace_id]
-                    [group_name][service_info.service_name] = nodes
-            end
-
-            local node = {
-                host = host.ip,
-                port = host.port,
-                weight = host.weight or default_weight,
-            }
-
-            -- docs: https://github.com/yidongnan/grpc-spring-boot-starter/pull/496
-            if is_grpc(scheme) and host.metadata and host.metadata.gRPC_port then
-                node.port = host.metadata.gRPC_port
+        if #parts == 4 then
+            local id, namespace_id,
+                  group_name, service_name = parts[1], parts[2], parts[3], parts[4]
+            local data_str = nacos_dict:get(key)
+
+            if data_str and data_str ~= "" then
+                -- Decode JSON string to Lua table
+                local success, data = pcall(cjson.decode, data_str)
+                if success then
+                    applications[id] = applications[id] or {}
+                    applications[id][namespace_id] = applications[id][namespace_id] or {}
+                    applications[id][namespace_id][group_name] = applications[id]
+                                                                 [namespace_id][group_name] or {}
+                    applications[id][namespace_id][group_name][service_name] = data
+                else
+                    ngx.log(ngx.ERR, "failed to decode data for key ", key, ": ", data)
+                end
             end
-
-            core.table.insert(nodes, node)
-        end
-
-        ::CONTINUE::
-    end
-    local new_apps_md5sum = ngx.md5(core.json.encode(up_apps))
-    local old_apps_md5sum = ngx.md5(core.json.encode(applications))
-    if new_apps_md5sum == old_apps_md5sum then
-        return
-    end
-    applications = up_apps
-    local ok, err = events:post(events_list._source, events_list.updating,
-                                applications)
-    if not ok then
-        log.error("post_event failure with ", events_list._source,
-                  ", update application error: ", err)
-    end
-end
-
-
-function _M.nodes(service_name, discovery_args)
-    local namespace_id = discovery_args and
-            discovery_args.namespace_id or default_namespace_id
-    local group_name = discovery_args
-            and discovery_args.group_name or default_group_name
-
-    local logged = false
-    -- maximum waiting time: 5 seconds
-    local waiting_time = 5
-    local step = 0.1
-    while not applications and waiting_time > 0 do
-        if not logged then
-            log.warn('wait init')
-            logged = true
         end
-        ngx.sleep(step)
-        waiting_time = waiting_time - step
     end
 
-    if not applications or not applications[namespace_id]
-        or not applications[namespace_id][group_name]
-    then
-        return nil
-    end
-    return applications[namespace_id][group_name][service_name]
+    return {
+        services = applications
+    }
 end
 
-
-function _M.init_worker()
-    events = require("apisix.events")
-    events_list = events:event_list("discovery_nacos_update_application",
-                                    "updating")
-
-    if 0 ~= ngx.worker.id() then
-        events:register(discovery_nacos_callback, events_list._source,
-                        events_list.updating)
-        return
-    end
-
-    default_weight = local_conf.discovery.nacos.weight
-    log.info('default_weight:', default_weight)
-    local fetch_interval = local_conf.discovery.nacos.fetch_interval
-    log.info('fetch_interval:', fetch_interval)
-    access_key = local_conf.discovery.nacos.access_key
-    secret_key = local_conf.discovery.nacos.secret_key
-    ngx_timer_at(0, fetch_full_registry)
-    ngx_timer_every(fetch_interval, fetch_full_registry)
-end
-
-
-function _M.dump_data()
-    return {config = local_conf.discovery.nacos, services = applications or {}}
-end
-
-
 return _M
diff --git a/apisix/discovery/nacos/schema.lua b/apisix/discovery/nacos/schema.lua
index 294048736e58..d63d3b3fdaf6 100644
--- a/apisix/discovery/nacos/schema.lua
+++ b/apisix/discovery/nacos/schema.lua
@@ -19,41 +19,106 @@ local prefix_pattern = [[^[\/a-zA-Z0-9-_.]+$]]
 
 
 return {
-    type = 'object',
-    properties = {
-        host = {
-            type = 'array',
-            minItems = 1,
-            items = {
-                type = 'string',
-                pattern = host_pattern,
-                minLength = 2,
-                maxLength = 100,
-            },
-        },
-        fetch_interval = {type = 'integer', minimum = 1, default = 30},
-        prefix = {
-            type = 'string',
-            pattern = prefix_pattern,
-            maxLength = 100,
-            default = '/nacos/v1/'
-        },
-        weight = {type = 'integer', minimum = 1, default = 100},
-        timeout = {
+    oneOf = {
+        -- Legacy object format
+        {
             type = 'object',
             properties = {
-                connect = {type = 'integer', minimum = 1, default = 2000},
-                send = {type = 'integer', minimum = 1, default = 2000},
-                read = {type = 'integer', minimum = 1, default = 5000},
+                host = {
+                    type = 'array',
+                    minItems = 1,
+                    items = {
+                        type = 'string',
+                        pattern = host_pattern,
+                        minLength = 2,
+                        maxLength = 100,
+                    },
+                },
+                fetch_interval = {type = 'integer', minimum = 1, default = 30},
+                prefix = {
+                    type = 'string',
+                    pattern = prefix_pattern,
+                    maxLength = 100,
+                    default = '/nacos/v1/'
+                },
+                weight = {type = 'integer', minimum = 1, default = 100},
+                timeout = {
+                    type = 'object',
+                    properties = {
+                        connect = {type = 'integer', minimum = 1, default = 2000},
+                        send = {type = 'integer', minimum = 1, default = 2000},
+                        read = {type = 'integer', minimum = 1, default = 5000},
+                    },
+                    default = {
+                        connect = 2000,
+                        send = 2000,
+                        read = 5000,
+                    }
+                },
+                access_key = {type = 'string', default = ''},
+                secret_key = {type = 'string', default = ''},
             },
-            default = {
-                connect = 2000,
-                send = 2000,
-                read = 5000,
-            }
+            required = {'host'},
+            additionalProperties = false
         },
-        access_key = {type = 'string', default = ''},
-        secret_key = {type = 'string', default = ''},
-    },
-    required = {'host'}
+        -- New array format
+        {
+            type = 'array',
+            minItems = 1,
+            items = {
+                type = 'object',
+                properties = {
+                    id = {
+                        type = 'string',
+                        minLength = 1,
+                        maxLength = 50,
+                        pattern = '^[a-zA-Z0-9_-]+$'
+                    },
+                    hosts = {
+                        type = 'array',
+                        minItems = 1,
+                        items = {
+                            type = 'string',
+                            pattern = host_pattern,
+                            minLength = 2,
+                            maxLength = 100,
+                        },
+                    },
+                    prefix = {
+                        type = 'string',
+                        pattern = prefix_pattern,
+                        maxLength = 100,
+                        default = '/nacos/v1/'
+                    },
+                    fetch_interval = {type = 'integer', minimum = 1, default = 30},
+                    default_weight = {type = 'integer', minimum = 1, default = 100},
+                    timeout = {
+                        type = 'object',
+                        properties = {
+                            connect = {type = 'integer', minimum = 1, default = 2000},
+                            send = {type = 'integer', minimum = 1, default = 2000},
+                            read = {type = 'integer', minimum = 1, default = 5000},
+                        },
+                        default = {
+                            connect = 2000,
+                            send = 2000,
+                            read = 5000,
+                        }
+                    },
+                    auth = {
+                        type = 'object',
+                        properties = {
+                            username = {type = 'string', default = ''},
+                            password = {type = 'string', default = ''},
+                            access_key = {type = 'string', default = ''},
+                            secret_key = {type = 'string', default = ''},
+                        },
+                        default = {}
+                    }
+                },
+                required = {'id', 'hosts'},
+                additionalProperties = false
+            }
+        }
+    }
 }
diff --git a/apisix/discovery/nacos/utils.lua b/apisix/discovery/nacos/utils.lua
new file mode 100644
index 000000000000..d9d8ded2feaf
--- /dev/null
+++ b/apisix/discovery/nacos/utils.lua
@@ -0,0 +1,196 @@
+--
+-- Licensed to the Apache Software Foundation (ASF) under one or more
+-- contributor license agreements.  See the NOTICE file distributed with
+-- this work for additional information regarding copyright ownership.
+-- The ASF licenses this file to You under the Apache License, Version 2.0
+-- (the "License"); you may not use this file except in compliance with
+-- the License.  You may obtain a copy of the License at
+--
+--     http://www.apache.org/licenses/LICENSE-2.0
+--
+-- Unless required by applicable law or agreed to in writing, software
+-- distributed under the License is distributed on an "AS IS" BASIS,
+-- WITHOUT WARRANTIES OR CONDITIONS OF ANY KIND, either express or implied.
+-- See the License for the specific language governing permissions and
+-- limitations under the License.
+--
+
+local core                 = require("apisix.core")
+local ngx                  = ngx
+local ipairs               = ipairs
+local require              = require
+local pairs                = pairs
+local str_format           = string.format
+local OLD_CONFIG_ID        = "0"
+local default_namespace_id = "public"
+local default_group_name   = "DEFAULT_GROUP"
+local _M = {
+  old_config_id = OLD_CONFIG_ID,
+  default_namespace_id = default_namespace_id,
+  default_group_name = default_group_name,
+}
+
+local function parse_service_name(service_name)
+    -- support old data
+    -- NOTE: If old service_name contains "/", it will be parsed as
+    -- registry_id/namespace_id/group_name/service_name
+    -- and termed invalid
+    if not service_name:find("/") then
+         return OLD_CONFIG_ID, "", "",  service_name
+    end
+    local pattern = "^(.*)/(.*)/(.*)/(.*)$" -- registry_id/namespace_id/group_name/service_name
+    local match = ngx.re.match(service_name, pattern, "jo")
+    if not match then
+        core.log.error("get unexpected upstream service_name: ", service_name)
+        return ""
+    end
+
+    return match[1], match[2], match[3], match[4]
+end
+
+_M.parse_service_name = parse_service_name
+
+local function de_duplication(services, namespace_id, group_name, service_name, scheme)
+    for _, service in ipairs(services) do
+        if service.namespace_id == namespace_id and service.group_name == group_name
+                and service.service_name == service_name and service.scheme == scheme then
+            return true
+        end
+    end
+    return false
+end
+
+local function iter_and_add_service(services, hash, id, values)
+    if not values then
+        return
+    end
+
+    for _, value in core.config_util.iterate_values(values) do
+        local conf = value.value
+        if not conf then
+            goto CONTINUE
+        end
+
+        local upstream
+        if conf.upstream then
+            upstream = conf.upstream
+        else
+            upstream = conf
+        end
+
+        if upstream.discovery_type ~= "nacos" then
+            goto CONTINUE
+        end
+
+        if hash[upstream.service_name] then
+            goto CONTINUE
+        end
+
+        local service_registry_id, namespace_id,
+              group_name, name = parse_service_name(upstream.service_name)
+        if service_registry_id ~= id then
+            goto CONTINUE
+        end
+
+        if not namespace_id or namespace_id == "" then
+            namespace_id = upstream.discovery_args and upstream.discovery_args.namespace_id
+                           or default_namespace_id
+        end
+        if not group_name or group_name == "" then
+            group_name = upstream.discovery_args and upstream.discovery_args.group_name
+                         or default_group_name
+        end
+        local dup = de_duplication(services, namespace_id, group_name,
+        upstream.service_name, upstream.scheme)
+        if dup then
+            goto CONTINUE
+        end
+        core.table.insert(services, {
+            name = name,
+            namespace_id = namespace_id,
+            group_name = group_name,
+            service_name = upstream.service_name,
+            scheme = upstream.scheme,
+            id = id,
+        })
+
+        ::CONTINUE::
+    end
+end
+
+function _M.generate_key(id, ns_id, group_name, service_name)
+    -- new data expects service_name to be in the format and
+    -- will use that as key directly
+    if service_name:find("/") then
+        return service_name
+   end
+    return str_format("%s/%s/%s/%s", id, ns_id, group_name, service_name)
+end
+
+function _M.get_nacos_services(service_registry_id)
+    local services = {}
+    local services_hash = {}
+
+    -- here we use lazy load to work around circle dependency
+    local get_upstreams = require('apisix.upstream').upstreams
+    local get_routes = require('apisix.router').http_routes
+    local get_stream_routes = require('apisix.router').stream_routes
+    local get_services = require('apisix.http.service').services
+    local values = get_upstreams()
+    iter_and_add_service(services, services_hash, service_registry_id, values)
+    values = get_routes()
+    iter_and_add_service(services, services_hash, service_registry_id, values)
+    values = get_services()
+    iter_and_add_service(services, services_hash, service_registry_id, values)
+    values = get_stream_routes()
+    iter_and_add_service(services, services_hash, service_registry_id, values)
+    return services
+end
+
+
+function _M.generate_signature(group_name, service_name, access_key, secret_key)
+    local str_to_sign = ngx.now() * 1000 .. '@@' .. group_name .. '@@' .. service_name
+    return access_key, str_to_sign, ngx.encode_base64(ngx.hmac_sha1(secret_key, str_to_sign))
+end
+
+
+function _M.generate_request_params(params)
+    if params == nil then
+        return ""
+    end
+
+    local args = ""
+    local first = false
+    for k, v in pairs(params) do
+        if not first then
+            args = str_format("%s&%s=%s", args, k, v)
+        else
+            first = true
+            args = str_format("%s=%s", k, v)
+        end
+    end
+
+    return args
+end
+
+
+function _M.match_metdata(node_metadata, upstream_metadata)
+    if upstream_metadata == nil then
+        return true
+    end
+
+    if not node_metadata then
+        node_metadata = {}
+    end
+
+    for k, v in pairs(upstream_metadata) do
+        if not node_metadata[k] or node_metadata[k] ~= v then
+            return false
+        end
+    end
+
+    return true
+end
+
+
+return _M
diff --git a/docs/en/latest/discovery/nacos.md b/docs/en/latest/discovery/nacos.md
index 5ebbcee46b49..1f47185bd801 100644
--- a/docs/en/latest/discovery/nacos.md
+++ b/docs/en/latest/discovery/nacos.md
@@ -29,8 +29,16 @@ The performance of this module needs to be improved:
 
 ### Configuration for Nacos
 
+```yaml title="conf/config.yaml"
+Nacos can be configured in two ways: single instance or multi-instance.
+```
+
 Add following configuration in `conf/config.yaml` :
 
+### Single Instance method
+
+The below is a single nacos instance method that is also supported.
+
 ```yaml
 discovery:
   nacos:
@@ -56,11 +64,44 @@ discovery:
       - "http://192.168.33.1:8848"
 ```
 
+#### Multi Instance method
+
+```yaml
+discovery:
+  nacos:
+    - id: "nacos-cluster-1"            # Unique ID for this Nacos cluster (required)
+      hosts:                           # List of Nacos hosts (required)
+        - "http://${host1}:${port1}"
+      prefix: "/nacos/v1/"             # API prefix
+      fetch_interval: 30               # default 30 sec
+      default_weight: 100               # default 100
+      auth:                            # Authentication credentials
+        username: username
+        password: password
+      timeout:
+        connect: 2000                  # default 2000 ms
+        send: 2000                     # default 2000 ms
+        read: 5000                     # default 5000 ms
+    - id: "nacos-cluster-2"            # Unique ID for this Nacos cluster (required)
+      hosts:                           # List of Nacos hosts (required)
+        - "http://${host2}:${port2}"
+      prefix: "/nacos/v1/"             # API prefix
+      fetch_interval: 30               # default 30 sec
+      default_weight: 100               # default 100
+      auth:                            # Authentication credentials
+        username: username2
+        password: password2
+      timeout:
+        connect: 2000                  # default 2000 ms
+        send: 2000                     # default 2000 ms
+        read: 5000                     # default 5000 ms
+```
+
 ### Upstream setting
 
 #### L7
 
-Here is an example of routing a request with an URI of "/nacos/*" to a service which named "http://192.168.33.1:8848/nacos/v1/ns/instance/list?serviceName=APISIX-NACOS" and use nacos discovery client in the registry:
+The following is an example of routing requests matching the URI `/nacos/*` to a service at `http://192.168.33.1:8848/nacos/v1/ns/instance/list?serviceName=APISIX-NACOS`, configured with the ID `nacos-cluster-1` and using the Nacos discovery client in the registry.”
 
 :::note
 You can fetch the `admin_key` from `config.yaml` and save to an environment variable with the following command:
@@ -79,6 +120,9 @@ $ curl http://127.0.0.1:9180/apisix/admin/routes/1 -H "X-API-KEY: $admin_key" -X
         "service_name": "APISIX-NACOS",
         "type": "roundrobin",
         "discovery_type": "nacos"
+        "discovery_args":{
+          "id": "nacos-cluster-1"
+        }
     }
 }'
 ```
@@ -100,7 +144,10 @@ The formatted response as below:
         "scheme": "http",
         "service_name": "APISIX-NACOS",
         "type": "roundrobin",
-        "discovery_type": "nacos"
+        "discovery_type": "nacos",
+        "discovery_args":{
+          "id": "nacos-cluster-1"
+        }
       },
       "priority": 0,
       "uri": "\/nacos\/*"
@@ -130,6 +177,7 @@ $ curl http://127.0.0.1:9180/apisix/admin/stream_routes/1 -H "X-API-KEY: $admin_
 
 | Name         | Type   | Requirement | Default | Valid | Description                                                  |
 | ------------ | ------ | ----------- | ------- | ----- | ------------------------------------------------------------ |
+| id | string | optional    | "0"     |       | (Used in multi instance mode)This parameter is used to specify the unique ID of a nacos instance. |
 | namespace_id | string | optional    | public     |       | This parameter is used to specify the namespace of the corresponding service |
 | group_name   | string | optional    | DEFAULT_GROUP       |       | This parameter is used to specify the group of the corresponding service |
 
diff --git a/t/APISIX.pm b/t/APISIX.pm
index 69f4b6fb18ac..035a661f921c 100644
--- a/t/APISIX.pm
+++ b/t/APISIX.pm
@@ -277,6 +277,7 @@ lua {
     lua_shared_dict prometheus-metrics 15m;
     lua_shared_dict standalone-config 10m;
     lua_shared_dict status-report 1m;
+    lua_shared_dict nacos 10m;
 }
 _EOC_
     }
diff --git a/t/cli/test_validate_config.sh b/t/cli/test_validate_config.sh
index 0f8a09a43c2d..598d12b74189 100755
--- a/t/cli/test_validate_config.sh
+++ b/t/cli/test_validate_config.sh
@@ -28,7 +28,9 @@ discovery:
 ' > conf/config.yaml
 
 out=$(make init 2>&1 || true)
-if ! echo "$out" | grep 'property "host" validation failed: wrong type: expected array, got string'; then
+
+if ! echo "$out" | grep 'invalid discovery nacos configuration: value should match only one schema, but matches none'; then
+cat  logs/error.log
     echo "failed: should check discovery schema during init"
     exit 1
 fi
diff --git a/t/discovery/nacos-multi-cluster.t b/t/discovery/nacos-multi-cluster.t
new file mode 100644
index 000000000000..29b5d580496e
--- /dev/null
+++ b/t/discovery/nacos-multi-cluster.t
@@ -0,0 +1,959 @@
+#
+# Licensed to the Apache Software Foundation (ASF) under one or more
+# contributor license agreements.  See the NOTICE file distributed with
+# this work for additional information regarding copyright ownership.
+# The ASF licenses this file to You under the Apache License, Version 2.0
+# (the "License"); you may not use this file except in compliance with
+# the License.  You may obtain a copy of the License at
+#
+#     http://www.apache.org/licenses/LICENSE-2.0
+#
+# Unless required by applicable law or agreed to in writing, software
+# distributed under the License is distributed on an "AS IS" BASIS,
+# WITHOUT WARRANTIES OR CONDITIONS OF ANY KIND, either express or implied.
+# See the License for the specific language governing permissions and
+# limitations under the License.
+#
+use t::APISIX 'no_plan';
+
+repeat_each(1);
+log_level('info');
+worker_connections(256);
+no_root_location();
+no_shuffle();
+workers(4);
+
+our $yaml_config = <<_EOC_;
+apisix:
+  node_listen: 1984
+deployment:
+  role: data_plane
+  role_data_plane:
+    config_provider: yaml
+discovery:
+  nacos:
+    - id: "0"
+      hosts:
+      - "http://127.0.0.1:8858"
+      prefix: "/nacos/v1/"
+      fetch_interval: 1
+      default_weight: 1
+      timeout:
+        connect: 2000
+        send: 2000
+        read: 5000
+
+_EOC_
+
+our $yaml_auth_config = <<_EOC_;
+apisix:
+  node_listen: 1984
+deployment:
+  role: data_plane
+  role_data_plane:
+    config_provider: yaml
+discovery:
+  nacos:
+    - id: "0"
+      hosts:
+      - "http://127.0.0.1:8858"
+      prefix: "/nacos/v1/"
+      fetch_interval: 1
+      default_weight: 1
+      auth:
+        username: nacos
+        password: nacos
+      timeout:
+        connect: 2000
+        send: 2000
+        read: 5000
+
+_EOC_
+
+run_tests();
+
+__DATA__
+
+=== TEST 1: get APISIX-NACOS info from NACOS - no auth
+--- yaml_config eval: $::yaml_config
+--- apisix_yaml
+routes:
+  -
+    uri: /hello
+    upstream:
+      service_name: APISIX-NACOS
+      discovery_type: nacos
+      type: roundrobin
+#END
+--- pipelined_requests eval
+[
+    "GET /hello",
+    "GET /hello",
+]
+--- response_body_like eval
+[
+    qr/server [1-2]/,
+    qr/server [1-2]/,
+]
+--- no_error_log
+[error, error]
+
+
+
+=== TEST 2: error service_name name - no auth
+--- yaml_config eval: $::yaml_config
+--- apisix_yaml
+routes:
+  -
+    uri: /hello
+    upstream:
+      service_name: APISIX-NACOS-DEMO
+      discovery_type: nacos
+      type: roundrobin
+
+#END
+--- request
+GET /hello
+--- error_code: 503
+--- error_log
+no valid upstream node
+--- timeout: 10
+
+
+
+=== TEST 3: get APISIX-NACOS info from NACOS - auth
+--- yaml_config eval: $::yaml_auth_config
+--- apisix_yaml
+routes:
+  -
+    uri: /hello
+    upstream:
+      service_name: APISIX-NACOS
+      discovery_type: nacos
+      type: roundrobin
+
+#END
+--- pipelined_requests eval
+[
+    "GET /hello",
+    "GET /hello",
+]
+--- response_body_like eval
+[
+    qr/server [1-2]/,
+    qr/server [1-2]/,
+]
+--- no_error_log
+[error, error]
+--- timeout: 10
+
+
+
+=== TEST 4: error service_name name - auth
+--- yaml_config eval: $::yaml_auth_config
+--- apisix_yaml
+routes:
+  -
+    uri: /hello
+    upstream:
+      service_name: APISIX-NACOS-DEMO
+      discovery_type: nacos
+      type: roundrobin
+
+#END
+--- request
+GET /hello
+--- error_code: 503
+--- error_log
+no valid upstream node
+--- timeout: 10
+
+
+
+=== TEST 5: get APISIX-NACOS info from NACOS - configured in services
+--- yaml_config eval: $::yaml_config
+--- apisix_yaml
+routes:
+  -
+    uri: /hello
+    service_id: 1
+services:
+  -
+    id: 1
+    upstream:
+      service_name: APISIX-NACOS
+      discovery_type: nacos
+      type: roundrobin
+#END
+--- pipelined_requests eval
+[
+    "GET /hello",
+    "GET /hello",
+]
+--- response_body_like eval
+[
+    qr/server [1-2]/,
+    qr/server [1-2]/,
+]
+--- timeout: 10
+
+
+
+=== TEST 6: get APISIX-NACOS info from NACOS - configured in upstreams + etcd
+--- extra_yaml_config
+discovery:
+  nacos:
+      host:
+        - "http://127.0.0.1:8858"
+      fetch_interval: 1
+--- config
+    location /t {
+        content_by_lua_block {
+            local t = require("lib.test_admin").test
+            local code, body = t('/apisix/admin/upstreams/1',
+                 ngx.HTTP_PUT,
+                 [[{
+                    "service_name": "APISIX-NACOS",
+                    "discovery_type": "nacos",
+                    "type": "roundrobin"
+                }]]
+                )
+
+            if code >= 300 then
+                ngx.status = code
+                ngx.say(body)
+                return
+            end
+
+            local code, body = t('/apisix/admin/routes/1',
+                 ngx.HTTP_PUT,
+                 [[{
+                    "uri": "/hello",
+                    "upstream_id": 1
+                }]]
+                )
+
+            if code >= 300 then
+                ngx.status = code
+            end
+
+            ngx.say(body)
+        }
+    }
+--- request
+GET /t
+--- response_body
+passed
+--- timeout: 10
+
+
+
+=== TEST 7: hit
+--- extra_yaml_config
+discovery:
+  nacos:
+      host:
+        - "http://127.0.0.1:8858"
+      fetch_interval: 1
+--- pipelined_requests eval
+[
+    "GET /hello",
+    "GET /hello",
+]
+--- response_body_like eval
+[
+    qr/server [1-2]/,
+    qr/server [1-2]/,
+]
+--- timeout: 10
+
+
+
+=== TEST 8: get APISIX-NACOS info from NACOS - no auth with namespace
+--- yaml_config eval: $::yaml_config
+--- apisix_yaml
+routes:
+  -
+    uri: /hello
+    upstream:
+      service_name: APISIX-NACOS
+      discovery_type: nacos
+      type: roundrobin
+      discovery_args:
+        namespace_id: test_ns
+#END
+--- pipelined_requests eval
+[
+    "GET /hello",
+    "GET /hello",
+]
+--- response_body_like eval
+[
+    qr/server [1-2]/,
+    qr/server [1-2]/,
+]
+--- timeout: 10
+
+
+
+=== TEST 9: error namespace_id - no auth
+--- yaml_config eval: $::yaml_config
+--- apisix_yaml
+routes:
+  -
+    uri: /hello
+    upstream:
+      service_name: APISIX-NACOS-DEMO
+      discovery_type: nacos
+      type: roundrobin
+      discovery_args:
+        namespace_id: err_ns
+#END
+--- request
+GET /hello
+--- error_code: 503
+--- error_log
+no valid upstream node
+--- timeout: 10
+
+
+
+=== TEST 10: get APISIX-NACOS info from NACOS - configured in services with namespace
+--- yaml_config eval: $::yaml_config
+--- apisix_yaml
+routes:
+  -
+    uri: /hello
+    service_id: 1
+services:
+  -
+    id: 1
+    upstream:
+      service_name: APISIX-NACOS
+      discovery_type: nacos
+      type: roundrobin
+      discovery_args:
+        namespace_id: test_ns
+#END
+--- pipelined_requests eval
+[
+    "GET /hello",
+    "GET /hello",
+]
+--- response_body_like eval
+[
+    qr/server [1-2]/,
+    qr/server [1-2]/,
+]
+--- timeout: 10
+
+
+
+=== TEST 11: get APISIX-NACOS info from NACOS - configured in upstreams + etcd with namespace
+--- extra_yaml_config
+discovery:
+  nacos:
+      host:
+        - "http://127.0.0.1:8858"
+      fetch_interval: 1
+--- config
+    location /t {
+        content_by_lua_block {
+            local t = require("lib.test_admin").test
+            local code, body = t('/apisix/admin/upstreams/1',
+                 ngx.HTTP_PUT,
+                 [[{
+                    "service_name": "APISIX-NACOS",
+                    "discovery_type": "nacos",
+                    "type": "roundrobin",
+                    "discovery_args": {
+                      "namespace_id": "test_ns"
+                    }
+                }]]
+                )
+
+            if code >= 300 then
+                ngx.status = code
+                ngx.say(body)
+                return
+            end
+
+            local code, body = t('/apisix/admin/routes/1',
+                 ngx.HTTP_PUT,
+                 [[{
+                    "uri": "/hello",
+                    "upstream_id": 1
+                }]]
+                )
+
+            if code >= 300 then
+                ngx.status = code
+            end
+
+            ngx.say(body)
+        }
+    }
+--- request
+GET /t
+--- response_body
+passed
+--- timeout: 10
+
+
+
+=== TEST 12: hit with namespace
+--- extra_yaml_config
+discovery:
+  nacos:
+      host:
+        - "http://127.0.0.1:8858"
+      fetch_interval: 1
+--- pipelined_requests eval
+[
+    "GET /hello",
+    "GET /hello",
+]
+--- response_body_like eval
+[
+    qr/server [1-2]/,
+    qr/server [1-2]/,
+]
+--- timeout: 10
+
+
+
+=== TEST 13: get APISIX-NACOS info from NACOS - no auth with group_name
+--- yaml_config eval: $::yaml_config
+--- apisix_yaml
+routes:
+  -
+    uri: /hello
+    upstream:
+      service_name: APISIX-NACOS
+      discovery_type: nacos
+      type: roundrobin
+      discovery_args:
+        group_name: test_group
+#END
+--- pipelined_requests eval
+[
+    "GET /hello",
+    "GET /hello",
+]
+--- response_body_like eval
+[
+    qr/server [1-2]/,
+    qr/server [1-2]/,
+]
+--- timeout: 10
+
+
+
+=== TEST 14: error group_name - no auth
+--- yaml_config eval: $::yaml_config
+--- apisix_yaml
+routes:
+  -
+    uri: /hello
+    upstream:
+      service_name: APISIX-NACOS-DEMO
+      discovery_type: nacos
+      type: roundrobin
+      discovery_args:
+        group_name: err_group_name
+#END
+--- request
+GET /hello
+--- error_code: 503
+--- error_log
+no valid upstream node
+--- timeout: 10
+
+
+
+=== TEST 15: get APISIX-NACOS info from NACOS - configured in services with group_name
+--- yaml_config eval: $::yaml_config
+--- apisix_yaml
+routes:
+  -
+    uri: /hello
+    service_id: 1
+services:
+  -
+    id: 1
+    upstream:
+      service_name: APISIX-NACOS
+      discovery_type: nacos
+      type: roundrobin
+      discovery_args:
+        group_name: test_group
+#END
+--- pipelined_requests eval
+[
+    "GET /hello",
+    "GET /hello",
+]
+--- response_body_like eval
+[
+    qr/server [1-2]/,
+    qr/server [1-2]/,
+]
+--- timeout: 10
+
+
+
+=== TEST 16: get APISIX-NACOS info from NACOS - configured in upstreams + etcd with group_name
+--- extra_yaml_config
+discovery:
+  nacos:
+      host:
+        - "http://127.0.0.1:8858"
+      fetch_interval: 1
+--- config
+    location /t {
+        content_by_lua_block {
+            local t = require("lib.test_admin").test
+            local code, body = t('/apisix/admin/upstreams/1',
+                 ngx.HTTP_PUT,
+                 [[{
+                    "service_name": "APISIX-NACOS",
+                    "discovery_type": "nacos",
+                    "type": "roundrobin",
+                    "discovery_args": {
+                      "group_name": "test_group"
+                    }
+                }]]
+                )
+
+            if code >= 300 then
+                ngx.status = code
+                ngx.say(body)
+                return
+            end
+
+            local code, body = t('/apisix/admin/routes/1',
+                 ngx.HTTP_PUT,
+                 [[{
+                    "uri": "/hello",
+                    "upstream_id": 1
+                }]]
+                )
+
+            if code >= 300 then
+                ngx.status = code
+            end
+
+            ngx.say(body)
+        }
+    }
+--- request
+GET /t
+--- response_body
+passed
+--- timeout: 10
+
+
+
+=== TEST 17: hit with group_name
+--- extra_yaml_config
+discovery:
+  nacos:
+      host:
+        - "http://127.0.0.1:8858"
+      fetch_interval: 1
+--- pipelined_requests eval
+[
+    "GET /hello",
+    "GET /hello",
+]
+--- response_body_like eval
+[
+    qr/server [1-2]/,
+    qr/server [1-2]/,
+]
+--- timeout: 10
+
+
+
+=== TEST 18: get APISIX-NACOS info from NACOS - no auth with namespace_id and group_name
+--- yaml_config eval: $::yaml_config
+--- apisix_yaml
+routes:
+  -
+    uri: /hello
+    upstream:
+      service_name: APISIX-NACOS
+      discovery_type: nacos
+      type: roundrobin
+      discovery_args:
+        namespace_id: test_ns
+        group_name: test_group
+#END
+--- pipelined_requests eval
+[
+    "GET /hello",
+    "GET /hello",
+]
+--- response_body_like eval
+[
+    qr/server [1-2]/,
+    qr/server [1-2]/,
+]
+--- timeout: 10
+
+
+
+=== TEST 19: error group_name and correct namespace_id - no auth
+--- yaml_config eval: $::yaml_config
+--- apisix_yaml
+routes:
+  -
+    uri: /hello
+    upstream:
+      service_name: APISIX-NACOS-DEMO
+      discovery_type: nacos
+      type: roundrobin
+      discovery_args:
+        namespace_id: test_ns
+        group_name: err_group_name
+#END
+--- request
+GET /hello
+--- error_code: 503
+--- error_log
+no valid upstream node
+--- timeout: 10
+
+
+
+=== TEST 20: error namespace_id and correct group_name - no auth
+--- yaml_config eval: $::yaml_config
+--- apisix_yaml
+routes:
+  -
+    uri: /hello
+    upstream:
+      service_name: APISIX-NACOS-DEMO
+      discovery_type: nacos
+      type: roundrobin
+      discovery_args:
+        namespace_id: err_ns
+        group_name: test_group
+#END
+--- request
+GET /hello
+--- error_code: 503
+--- error_log
+no valid upstream node
+--- timeout: 10
+
+
+
+=== TEST 21: error namespace_id and error group_name - no auth
+--- yaml_config eval: $::yaml_config
+--- apisix_yaml
+routes:
+  -
+    uri: /hello
+    upstream:
+      service_name: APISIX-NACOS-DEMO
+      discovery_type: nacos
+      type: roundrobin
+      discovery_args:
+        namespace_id: err_ns
+        group_name: err_group_name
+#END
+--- request
+GET /hello
+--- error_code: 503
+--- error_log
+no valid upstream node
+--- timeout: 10
+
+
+
+=== TEST 22: get APISIX-NACOS info from NACOS - configured in services with namespace_id and group_name
+--- yaml_config eval: $::yaml_config
+--- apisix_yaml
+routes:
+  -
+    uri: /hello
+    service_id: 1
+services:
+  -
+    id: 1
+    upstream:
+      service_name: APISIX-NACOS
+      discovery_type: nacos
+      type: roundrobin
+      discovery_args:
+        namespace_id: test_ns
+        group_name: test_group
+#END
+--- pipelined_requests eval
+[
+    "GET /hello",
+    "GET /hello",
+]
+--- response_body_like eval
+[
+    qr/server [1-2]/,
+    qr/server [1-2]/,
+]
+--- timeout: 10
+
+
+
+=== TEST 23: get APISIX-NACOS info from NACOS - configured in upstreams + etcd with namespace_id and group_name
+--- extra_yaml_config
+discovery:
+  nacos:
+      host:
+        - "http://127.0.0.1:8858"
+      fetch_interval: 1
+--- config
+    location /t {
+        content_by_lua_block {
+            local t = require("lib.test_admin").test
+            local code, body = t('/apisix/admin/upstreams/1',
+                 ngx.HTTP_PUT,
+                 [[{
+                    "service_name": "APISIX-NACOS",
+                    "discovery_type": "nacos",
+                    "type": "roundrobin",
+                    "discovery_args": {
+                      "namespace_id": "test_ns",
+                      "group_name": "test_group"
+                    }
+                }]]
+                )
+
+            if code >= 300 then
+                ngx.status = code
+                ngx.say(body)
+                return
+            end
+
+            local code, body = t('/apisix/admin/routes/1',
+                 ngx.HTTP_PUT,
+                 [[{
+                    "uri": "/hello",
+                    "upstream_id": 1
+                }]]
+                )
+
+            if code >= 300 then
+                ngx.status = code
+            end
+
+            ngx.say(body)
+        }
+    }
+--- request
+GET /t
+--- response_body
+passed
+--- timeout: 10
+
+
+
+=== TEST 24: hit with namespace_id and group_name
+--- extra_yaml_config
+discovery:
+  nacos:
+      host:
+        - "http://127.0.0.1:8858"
+      fetch_interval: 1
+--- pipelined_requests eval
+[
+    "GET /hello",
+    "GET /hello",
+]
+--- response_body_like eval
+[
+    qr/server [1-2]/,
+    qr/server [1-2]/,
+]
+--- timeout: 10
+
+
+
+=== TEST 25: same namespace_id and service_name, different group_name
+--- extra_yaml_config
+discovery:
+  nacos:
+      host:
+        - "http://127.0.0.1:8858"
+      fetch_interval: 1
+--- config
+    location /t {
+        content_by_lua_block {
+            local t = require("lib.test_admin").test
+
+           -- use nacos-service5
+            local code, body = t('/apisix/admin/routes/1',
+                 ngx.HTTP_PUT,
+                 [[{
+                    "uri": "/hello",
+                    "upstream": {
+                        "service_name": "APISIX-NACOS",
+                        "discovery_type": "nacos",
+                        "type": "roundrobin",
+                        "discovery_args": {
+                          "namespace_id": "test_ns",
+                          "group_name": "test_group"
+                        }
+                    }
+                }]]
+                )
+
+            if code >= 300 then
+                ngx.status = code
+            end
+
+            -- use nacos-service6
+            local code, body = t('/apisix/admin/routes/2',
+                 ngx.HTTP_PUT,
+                 [[{
+                    "uri": "/hello1",
+                    "upstream": {
+                        "service_name": "APISIX-NACOS",
+                        "discovery_type": "nacos",
+                        "type": "roundrobin",
+                        "discovery_args": {
+                          "namespace_id": "test_ns",
+                          "group_name": "test_group2"
+                        }
+                    },
+                    "plugins": {
+                        "proxy-rewrite": {
+                            "uri": "/hello"
+                        }
+                    }
+                }]]
+                )
+
+            if code >= 300 then
+                ngx.status = code
+            end
+
+            ngx.sleep(1.5)
+
+            local http = require "resty.http"
+            local httpc = http.new()
+            local uri1 = "http://127.0.0.1:" .. ngx.var.server_port .. "/hello"
+            local res, err = httpc:request_uri(uri1, { method = "GET"})
+            if err then
+                ngx.log(ngx.ERR, err)
+                ngx.status = res.status
+                return
+            end
+            ngx.say(res.body)
+
+            local uri2 = "http://127.0.0.1:" .. ngx.var.server_port .. "/hello1"
+            res, err = httpc:request_uri(uri2, { method = "GET"})
+            if err then
+                ngx.log(ngx.ERR, err)
+                ngx.status = res.status
+                return
+            end
+            ngx.say(res.body)
+        }
+    }
+--- request
+GET /t
+--- response_body
+server 1
+server 3
+--- timeout: 10
+
+
+
+=== TEST 26: same group_name and service_name, different namespace_id
+--- extra_yaml_config
+discovery:
+  nacos:
+      host:
+        - "http://127.0.0.1:8858"
+      fetch_interval: 1
+--- config
+    location /t {
+        content_by_lua_block {
+            local t = require("lib.test_admin").test
+
+           -- use nacos-service5
+            local code, body = t('/apisix/admin/routes/1',
+                 ngx.HTTP_PUT,
+                 [[{
+                    "uri": "/hello",
+                    "upstream": {
+                        "service_name": "APISIX-NACOS",
+                        "discovery_type": "nacos",
+                        "type": "roundrobin",
+                        "discovery_args": {
+                          "namespace_id": "test_ns",
+                          "group_name": "test_group"
+                        }
+                    }
+                }]]
+                )
+
+            if code >= 300 then
+                ngx.status = code
+            end
+
+            -- use nacos-service7
+            local code, body = t('/apisix/admin/routes/2',
+                 ngx.HTTP_PUT,
+                 [[{
+                    "uri": "/hello1",
+                    "upstream": {
+                        "service_name": "APISIX-NACOS",
+                        "discovery_type": "nacos",
+                        "type": "roundrobin",
+                        "discovery_args": {
+                          "namespace_id": "test_ns2",
+                          "group_name": "test_group"
+                        }
+                    },
+                    "plugins": {
+                        "proxy-rewrite": {
+                            "uri": "/hello"
+                        }
+                    }
+                }]]
+                )
+
+            if code >= 300 then
+                ngx.status = code
+            end
+
+            ngx.sleep(1.5)
+
+            local http = require "resty.http"
+            local httpc = http.new()
+            local uri1 = "http://127.0.0.1:" .. ngx.var.server_port .. "/hello"
+            local res, err = httpc:request_uri(uri1, { method = "GET"})
+            if err then
+                ngx.log(ngx.ERR, err)
+                ngx.status = res.status
+                return
+            end
+            ngx.say(res.body)
+
+            local uri2 = "http://127.0.0.1:" .. ngx.var.server_port .. "/hello1"
+            res, err = httpc:request_uri(uri2, { method = "GET"})
+            if err then
+                ngx.log(ngx.ERR, err)
+                ngx.status = res.status
+                return
+            end
+            ngx.say(res.body)
+        }
+    }
+--- request
+GET /t
+--- response_body
+server 1
+server 4
+--- timeout: 10
diff --git a/t/discovery/nacos-multi-cluster2.t b/t/discovery/nacos-multi-cluster2.t
new file mode 100644
index 000000000000..d38f53efe3cd
--- /dev/null
+++ b/t/discovery/nacos-multi-cluster2.t
@@ -0,0 +1,133 @@
+#
+# Licensed to the Apache Software Foundation (ASF) under one or more
+# contributor license agreements.  See the NOTICE file distributed with
+# this work for additional information regarding copyright ownership.
+# The ASF licenses this file to You under the Apache License, Version 2.0
+# (the "License"); you may not use this file except in compliance with
+# the License.  You may obtain a copy of the License at
+#
+#     http://www.apache.org/licenses/LICENSE-2.0
+#
+# Unless required by applicable law or agreed to in writing, software
+# distributed under the License is distributed on an "AS IS" BASIS,
+# WITHOUT WARRANTIES OR CONDITIONS OF ANY KIND, either express or implied.
+# See the License for the specific language governing permissions and
+# limitations under the License.
+#
+use t::APISIX 'no_plan';
+
+repeat_each(1);
+log_level('info');
+worker_connections(256);
+no_root_location();
+no_shuffle();
+workers(4);
+
+our $yaml_config = <<_EOC_;
+apisix:
+  node_listen: 1984
+deployment:
+  role: data_plane
+  role_data_plane:
+    config_provider: yaml
+discovery:
+  nacos:
+    - id: "svc1"
+      hosts:
+      - "http://127.0.0.1:8858"
+      prefix: "/nacos/v1/"
+      fetch_interval: 1
+      default_weight: 1
+      timeout:
+        connect: 2000
+        send: 2000
+        read: 5000
+    - id: "svc2"
+      hosts:
+      - "http://127.0.0.1:8858"
+      prefix: "/nacos/v1/"
+      fetch_interval: 1
+      default_weight: 1
+      timeout:
+        connect: 2000
+        send: 2000
+        read: 5000
+
+_EOC_
+
+our $yaml_auth_config = <<_EOC_;
+apisix:
+  node_listen: 1984
+deployment:
+  role: data_plane
+  role_data_plane:
+    config_provider: yaml
+discovery:
+  nacos:
+    - id: "svc1"
+      hosts:
+      - "http://127.0.0.1:8858"
+      prefix: "/nacos/v1/"
+      fetch_interval: 1
+      default_weight: 1
+      auth:
+        username: nacos
+        password: nacos
+      timeout:
+        connect: 2000
+        send: 2000
+        read: 5000
+    - id: "svc2"
+      hosts:
+      - "http://127.0.0.1:8858"
+      prefix: "/nacos/v1/"
+      fetch_interval: 1
+      default_weight: 1
+      auth:
+        username: nacos
+        password: nacos
+      timeout:
+        connect: 2000
+        send: 2000
+        read: 5000
+
+_EOC_
+
+run_tests();
+
+__DATA__
+
+=== TEST 1: get APISIX-NACOS info from NACOS - no auth
+--- yaml_config eval: $::yaml_config
+--- apisix_yaml
+routes:
+  -
+    uri: /hello
+    upstream:
+      service_name: svc1/public/DEFAULT_GROUP/APISIX-NACOS
+      discovery_type: nacos
+      type: roundrobin
+      discovery_args:
+        id: svc1
+  -
+    uri: /hello2
+    upstream:
+      service_name: svc2/public/DEFAULT_GROUP/APISIX-NACOS
+      discovery_type: nacos
+      type: roundrobin
+      discovery_args:
+        id: svc2
+#END
+--- pipelined_requests eval
+[
+    "GET /hello",
+    "GET /hello",
+]
+--- response_body_like eval
+[
+    qr/server [1-2]/,
+    qr/server [1-2]/,
+]
+--- no_error_log
+[error, error]
+--- timeout: 10
diff --git a/t/discovery/nacos.t b/t/discovery/nacos.t
index 9af1ee14a814..77f694530a78 100644
--- a/t/discovery/nacos.t
+++ b/t/discovery/nacos.t
@@ -65,6 +65,12 @@ discovery:
 
 _EOC_
 
+add_block_preprocessor(sub {
+    my ($block) = @_;
+    $block->set_value("timeout", "10");
+
+});
+
 run_tests();
 
 __DATA__
diff --git a/t/discovery/nacos2.t b/t/discovery/nacos2.t
index e7dc8f97318a..0278edc76b47 100644
--- a/t/discovery/nacos2.t
+++ b/t/discovery/nacos2.t
@@ -24,6 +24,7 @@ add_block_preprocessor(sub {
     if (!$block->request) {
         $block->set_value("request", "GET /t");
     }
+    $block->set_value("timeout", "10");
 });
 
 run_tests();
@@ -83,7 +84,7 @@ GET /hello
 --- response_body_like eval
 qr/server [1-2]/
 --- error_log
-err:status = 502
+err: status = 502
 
 
 
@@ -308,7 +309,7 @@ discovery:
 
             local body = json_decode(res.body)
             local services = body.services
-            local service = services["public"]["DEFAULT_GROUP"]["APISIX-NACOS"]
+            local service = services["0"]["public"]["DEFAULT_GROUP"]["APISIX-NACOS"]
             local number = table.getn(service)
             ngx.say(number)
         }
diff --git a/t/discovery/nacos3.t b/t/discovery/nacos3.t
index c71259386c7e..41050c7ea0df 100644
--- a/t/discovery/nacos3.t
+++ b/t/discovery/nacos3.t
@@ -26,6 +26,7 @@ add_block_preprocessor(sub {
     if (!$block->request) {
         $block->set_value("request", "GET /t");
     }
+    $block->set_value("timeout", "10");
 });
 
 our $yaml_config = <<_EOC_;
diff --git a/t/discovery/stream/nacos.t b/t/discovery/stream/nacos.t
index 1a1053cfdffd..bb8106fb06db 100644
--- a/t/discovery/stream/nacos.t
+++ b/t/discovery/stream/nacos.t
@@ -50,6 +50,7 @@ add_block_preprocessor(sub {
     if (!$block->stream_request) {
         $block->set_value("stream_request", "GET /hello HTTP/1.1\r\nHost: 127.0.0.1:1985\r\nConnection: close\r\n\r\n");
     }
+    $block->set_value("timeout", "10");
 
 });