diff --git a/pkg/config/provider.go b/pkg/config/provider.go
index 73e7c941..1384167e 100644
--- a/pkg/config/provider.go
+++ b/pkg/config/provider.go
@@ -90,7 +90,10 @@ type Provider struct {
 	SkipList []string
 
 	// MainTemplate is the template string to be used to render the
-	// provider subpackage main program.
+	// provider subpackage main program. If this is set, the generated provider
+	// is broken up into subpackage families partitioned across the API groups.
+	// A monolithic provider is also generated to
+	// ensure backwards-compatibility.
 	MainTemplate string
 
 	// skippedResourceNames is a list of Terraform resource names
diff --git a/pkg/pipeline/run.go b/pkg/pipeline/run.go
index 0d8f5c72..e4d2ac4b 100644
--- a/pkg/pipeline/run.go
+++ b/pkg/pipeline/run.go
@@ -22,6 +22,14 @@ type terraformedInput struct {
 	ParametersTypeName string
 }
 
+const (
+	// TODO: we should be careful that there may also exist short groups with
+	// these names. We can consider making these configurable by the provider
+	// maintainer.
+	configPackageName   = "config"
+	monolithPackageName = "monolith"
+)
+
 // Run runs the Upjet code generation pipelines.
 func Run(pc *config.Provider, rootDir string) { // nolint:gocyclo
 	// Note(turkenh): nolint reasoning - this is the main function of the code
@@ -58,12 +66,9 @@ func Run(pc *config.Provider, rootDir string) { // nolint:gocyclo
 	// Add ProviderConfig controller package to the list of controller packages.
 	controllerPkgMap := make(map[string][]string)
 	for _, p := range pc.BasePackages.Controller {
-		tokens := strings.Split(p, "/")
-		group := tokens[len(tokens)-1]
-		if group == "providerconfig" {
-			group = pc.ShortName
-		}
-		controllerPkgMap[group] = append(controllerPkgMap[group], filepath.Join(pc.ModulePath, p))
+		path := filepath.Join(pc.ModulePath, p)
+		controllerPkgMap[configPackageName] = append(controllerPkgMap[configPackageName], path)
+		controllerPkgMap[monolithPackageName] = append(controllerPkgMap[monolithPackageName], path)
 	}
 	count := 0
 	for group, versions := range resourcesGroups {
@@ -94,6 +99,7 @@ func Run(pc *config.Provider, rootDir string) { // nolint:gocyclo
 				}
 				sGroup := strings.Split(group, ".")[0]
 				controllerPkgMap[sGroup] = append(controllerPkgMap[sGroup], ctrlPkgPath)
+				controllerPkgMap[monolithPackageName] = append(controllerPkgMap[monolithPackageName], ctrlPkgPath)
 				if err := exampleGen.Generate(group, version, resources[name]); err != nil {
 					panic(errors.Wrapf(err, "cannot generate example manifest for resource %s", name))
 				}
diff --git a/pkg/pipeline/setup.go b/pkg/pipeline/setup.go
index 96d179b3..55ef131d 100644
--- a/pkg/pipeline/setup.go
+++ b/pkg/pipeline/setup.go
@@ -6,6 +6,7 @@ package pipeline
 
 import (
 	"fmt"
+	"log"
 	"os"
 	"path/filepath"
 	"sort"
@@ -35,35 +36,45 @@ type SetupGenerator struct {
 	ModulePath         string
 }
 
-// Generate writes the setup file with the content produced using given
-// list of version packages.
-
+// Generate writes the setup file and the corresponding provider main file
+// using the given list of version packages.
 func (sg *SetupGenerator) Generate(versionPkgMap map[string][]string, mainTemplate string) error {
-	t, err := template.New("main").Parse(mainTemplate)
-	if err != nil {
-		return errors.Wrap(err, "failed to parse provider main program template")
+	var t *template.Template
+	if len(mainTemplate) != 0 {
+		tmpl, err := template.New("main").Parse(mainTemplate)
+		if err != nil {
+			return errors.Wrap(err, "failed to parse the provider main program template")
+		}
+		t = tmpl
+	}
+	if t == nil {
+		return errors.Wrap(sg.generate("", versionPkgMap[monolithPackageName]), "failed to generate the controller setup file")
 	}
 	for g, versionPkgList := range versionPkgMap {
 		if err := sg.generate(g, versionPkgList); err != nil {
-			return errors.Wrapf(err, "failed to generate controller setup file for group: %s", g)
+			return errors.Wrapf(err, "failed to generate the controller setup file for group: %s", g)
 		}
-		if err := writeMainProgram(sg.ProviderPath, g, t); err != nil {
+		if err := generateProviderMain(sg.ProviderPath, g, t); err != nil {
 			return errors.Wrapf(err, "failed to write main program for group: %s", g)
 		}
 	}
 	return nil
 }
 
-func writeMainProgram(providerPath, group string, t *template.Template) error {
+func generateProviderMain(providerPath, group string, t *template.Template) error {
 	f := filepath.Join(providerPath, group)
-	if err := os.MkdirAll(f, 0755); err != nil {
+	if err := os.MkdirAll(f, 0750); err != nil {
 		return errors.Wrapf(err, "failed to mkdir provider main program path: %s", f)
 	}
-	m, err := os.OpenFile(filepath.Join(f, "main.go"), os.O_WRONLY|os.O_CREATE, 0755)
+	m, err := os.OpenFile(filepath.Join(filepath.Clean(f), "zz_main.go"), os.O_WRONLY|os.O_CREATE|os.O_TRUNC, 0600)
 	if err != nil {
 		return errors.Wrap(err, "failed to open provider main program file")
 	}
-	defer m.Close()
+	defer func() {
+		if err := m.Close(); err != nil {
+			log.Fatalf("Failed to close the templated main %q: %s", f, err.Error())
+		}
+	}()
 	if err := t.Execute(m, map[string]any{
 		"Group": group,
 	}); err != nil {
@@ -82,10 +93,19 @@ func (sg *SetupGenerator) generate(group string, versionPkgList []string) error
 	for i, pkgPath := range versionPkgList {
 		aliases[i] = setupFile.Imports.UsePackage(pkgPath)
 	}
+	g := ""
+	if len(group) != 0 {
+		g = "_" + group
+	}
 	vars := map[string]any{
 		"Aliases": aliases,
-		"Group":   group,
+		"Group":   g,
+	}
+	filePath := ""
+	if len(group) == 0 {
+		filePath = filepath.Join(sg.LocalDirectoryPath, "zz_setup.go")
+	} else {
+		filePath = filepath.Join(sg.LocalDirectoryPath, fmt.Sprintf("zz_%s_setup.go", group))
 	}
-	filePath := filepath.Join(sg.LocalDirectoryPath, fmt.Sprintf("zz_%s_setup.go", group))
 	return errors.Wrap(setupFile.Write(filePath, vars, os.ModePerm), "cannot write setup file")
 }
diff --git a/pkg/pipeline/templates/setup.go.tmpl b/pkg/pipeline/templates/setup.go.tmpl
index 4a49ebc4..72b9f5a4 100644
--- a/pkg/pipeline/templates/setup.go.tmpl
+++ b/pkg/pipeline/templates/setup.go.tmpl
@@ -12,9 +12,9 @@ import (
 	{{ .Imports }}
 )
 
-// Setup_{{ .Group }} creates all controllers with the supplied logger and adds them to
+// Setup{{ .Group }} creates all controllers with the supplied logger and adds them to
 // the supplied manager.
-func Setup_{{ .Group }}(mgr ctrl.Manager, o controller.Options) error {
+func Setup{{ .Group }}(mgr ctrl.Manager, o controller.Options) error {
 	for _, setup := range []func(ctrl.Manager, controller.Options) error{
 		{{- range $alias := .Aliases }}
 		{{ $alias }}Setup,