diff --git a/.changelog/8923.txt b/.changelog/8923.txt
new file mode 100644
index 0000000000..cd6c057a18
--- /dev/null
+++ b/.changelog/8923.txt
@@ -0,0 +1,3 @@
+```release-note:bug
+secretmanager: replaced the panic block with an error in import function of `google_secret_manager_secret_version` resource
+```
diff --git a/google-beta/services/secretmanager/resource_secret_manager_secret_version.go b/google-beta/services/secretmanager/resource_secret_manager_secret_version.go
index a9df17e163..42f582a5e6 100644
--- a/google-beta/services/secretmanager/resource_secret_manager_secret_version.go
+++ b/google-beta/services/secretmanager/resource_secret_manager_secret_version.go
@@ -357,7 +357,7 @@ func resourceSecretManagerSecretVersionImport(d *schema.ResourceData, meta inter
 
 	parts := secretRegex.FindStringSubmatch(name)
 	if len(parts) != 2 {
-		panic(fmt.Sprintf("Version name does not fit the format `projects/{{project}}/secrets/{{secret}}/versions/{{version}}`"))
+		return nil, fmt.Errorf("Version name does not fit the format `projects/{{project}}/secrets/{{secret}}/versions/{{version}}`")
 	}
 	if err := d.Set("secret", parts[1]); err != nil {
 		return nil, fmt.Errorf("Error setting secret: %s", err)