diff --git a/source/extensions/omni.isaac.lab/omni/isaac/lab/envs/mdp/events.py b/source/extensions/omni.isaac.lab/omni/isaac/lab/envs/mdp/events.py
index a931498a83..8f2d737eb7 100644
--- a/source/extensions/omni.isaac.lab/omni/isaac/lab/envs/mdp/events.py
+++ b/source/extensions/omni.isaac.lab/omni/isaac/lab/envs/mdp/events.py
@@ -24,7 +24,7 @@
 import omni.isaac.lab.sim as sim_utils
 import omni.isaac.lab.utils.math as math_utils
 from omni.isaac.lab.actuators import ImplicitActuator
-from omni.isaac.lab.assets import Articulation, RigidObject
+from omni.isaac.lab.assets import Articulation, DeformableObject, RigidObject
 from omni.isaac.lab.managers import SceneEntityCfg
 from omni.isaac.lab.terrains import TerrainImporter
 
@@ -824,6 +824,48 @@ def reset_joints_by_offset(
     asset.write_joint_state_to_sim(joint_pos, joint_vel, env_ids=env_ids)
 
 
+def reset_nodal_state_uniform(
+    env: ManagerBasedEnv,
+    env_ids: torch.Tensor,
+    position_range: dict[str, tuple[float, float]],
+    velocity_range: dict[str, tuple[float, float]],
+    asset_cfg: SceneEntityCfg = SceneEntityCfg("robot"),
+):
+    """Reset the asset nodal state to a random position and velocity uniformly within the given ranges.
+
+    This function randomizes the nodal position and velocity of the asset.
+
+    * It samples the root position from the given ranges and adds them to the default nodal position, before setting
+      them into the physics simulation.
+    * It samples the root velocity from the given ranges and sets them into the physics simulation.
+
+    The function takes a dictionary of position and velocity ranges for each axis. The keys of the
+    dictionary are ``x``, ``y``, ``z``. The values are tuples of the form ``(min, max)``.
+    If the dictionary does not contain a key, the position or velocity is set to zero for that axis.
+    """
+    # extract the used quantities (to enable type-hinting)
+    asset: DeformableObject = env.scene[asset_cfg.name]
+    # get default root state
+    nodal_state = asset.data.default_nodal_state_w[env_ids].clone()
+
+    # position
+    range_list = [position_range.get(key, (0.0, 0.0)) for key in ["x", "y", "z"]]
+    ranges = torch.tensor(range_list, device=asset.device)
+    rand_samples = math_utils.sample_uniform(ranges[:, 0], ranges[:, 1], (len(env_ids), 1, 3), device=asset.device)
+
+    nodal_state[..., :3] += rand_samples
+
+    # velocities
+    range_list = [velocity_range.get(key, (0.0, 0.0)) for key in ["x", "y", "z"]]
+    ranges = torch.tensor(range_list, device=asset.device)
+    rand_samples = math_utils.sample_uniform(ranges[:, 0], ranges[:, 1], (len(env_ids), 1, 3), device=asset.device)
+
+    nodal_state[..., 3:] += rand_samples
+
+    # set into the physics simulation
+    asset.write_nodal_state_to_sim(nodal_state, env_ids=env_ids)
+
+
 def reset_scene_to_default(env: ManagerBasedEnv, env_ids: torch.Tensor):
     """Reset the scene to the default state specified in the scene configuration."""
     # rigid bodies
@@ -845,6 +887,11 @@ def reset_scene_to_default(env: ManagerBasedEnv, env_ids: torch.Tensor):
         default_joint_vel = articulation_asset.data.default_joint_vel[env_ids].clone()
         # set into the physics simulation
         articulation_asset.write_joint_state_to_sim(default_joint_pos, default_joint_vel, env_ids=env_ids)
+    # deformable objects
+    for deformable_object in env.scene.deformable_objects.values():
+        # obtain default and set into the physics simulation
+        nodal_state = deformable_object.data.default_nodal_state_w[env_ids].clone()
+        deformable_object.write_nodal_state_to_sim(nodal_state, env_ids=env_ids)
 
 
 """
diff --git a/source/extensions/omni.isaac.lab_tasks/omni/isaac/lab_tasks/manager_based/manipulation/lift/config/franka/ik_abs_env_cfg.py b/source/extensions/omni.isaac.lab_tasks/omni/isaac/lab_tasks/manager_based/manipulation/lift/config/franka/ik_abs_env_cfg.py
index 67c008527a..e8e87e36df 100644
--- a/source/extensions/omni.isaac.lab_tasks/omni/isaac/lab_tasks/manager_based/manipulation/lift/config/franka/ik_abs_env_cfg.py
+++ b/source/extensions/omni.isaac.lab_tasks/omni/isaac/lab_tasks/manager_based/manipulation/lift/config/franka/ik_abs_env_cfg.py
@@ -6,10 +6,14 @@
 from omni.isaac.lab.assets import DeformableObjectCfg
 from omni.isaac.lab.controllers.differential_ik_cfg import DifferentialIKControllerCfg
 from omni.isaac.lab.envs.mdp.actions.actions_cfg import DifferentialInverseKinematicsActionCfg
+from omni.isaac.lab.managers import EventTermCfg as EventTerm
+from omni.isaac.lab.managers import SceneEntityCfg
 from omni.isaac.lab.sim.spawners import UsdFileCfg
 from omni.isaac.lab.utils import configclass
 from omni.isaac.lab.utils.assets import ISAACLAB_NUCLEUS_DIR
 
+import omni.isaac.lab_tasks.manager_based.manipulation.lift.mdp as mdp
+
 from . import joint_pos_env_cfg
 
 ##
@@ -18,6 +22,11 @@
 from omni.isaac.lab_assets.franka import FRANKA_PANDA_HIGH_PD_CFG  # isort: skip
 
 
+##
+# Rigid object lift environment.
+##
+
+
 @configclass
 class FrankaCubeLiftEnvCfg(joint_pos_env_cfg.FrankaCubeLiftEnvCfg):
     def __post_init__(self):
@@ -50,6 +59,11 @@ def __post_init__(self):
         self.observations.policy.enable_corruption = False
 
 
+##
+# Deformable object lift environment.
+##
+
+
 @configclass
 class FrankaTeddyBearLiftEnvCfg(FrankaCubeLiftEnvCfg):
     def __post_init__(self):
@@ -58,7 +72,7 @@ def __post_init__(self):
 
         self.scene.object = DeformableObjectCfg(
             prim_path="{ENV_REGEX_NS}/Object",
-            init_state=DeformableObjectCfg.InitialStateCfg(pos=[0.5, 0, 0.05], rot=[0.707, 0, 0, 0.707]),
+            init_state=DeformableObjectCfg.InitialStateCfg(pos=(0.5, 0, 0.05), rot=(0.707, 0, 0, 0.707)),
             spawn=UsdFileCfg(
                 usd_path=f"{ISAACLAB_NUCLEUS_DIR}/Objects/Teddy_Bear/teddy_bear.usd",
                 scale=(0.01, 0.01, 0.01),
@@ -70,11 +84,27 @@ def __post_init__(self):
         self.scene.robot.actuators["panda_hand"].stiffness = 40.0
         self.scene.robot.actuators["panda_hand"].damping = 10.0
 
-        # Remove all the terms for the lift_teddy_bear_sm demo
+        # Disable replicate physics as it doesn't work for deformable objects
+        # FIXME: This should be fixed by the PhysX replication system.
+        self.scene.replicate_physics = False
+
+        # Set events for the specific object type (deformable cube)
+        self.events.reset_object_position = EventTerm(
+            func=mdp.reset_nodal_state_uniform,
+            mode="reset",
+            params={
+                "position_range": {"x": (-0.1, 0.1), "y": (-0.25, 0.25), "z": (0.0, 0.0)},
+                "velocity_range": {},
+                "asset_cfg": SceneEntityCfg("object"),
+            },
+        )
+
+        # Remove all the terms for the state machine demo
+        # TODO: Computing the root pose of deformable object from nodal positions is expensive.
+        #       We need to fix that part before enabling these terms for the training.
         self.terminations.object_dropping = None
         self.rewards.reaching_object = None
         self.rewards.lifting_object = None
         self.rewards.object_goal_tracking = None
         self.rewards.object_goal_tracking_fine_grained = None
-        self.events.reset_object_position = None
         self.observations.policy.object_position = None
diff --git a/source/extensions/omni.isaac.lab_tasks/omni/isaac/lab_tasks/manager_based/manipulation/lift/lift_env_cfg.py b/source/extensions/omni.isaac.lab_tasks/omni/isaac/lab_tasks/manager_based/manipulation/lift/lift_env_cfg.py
index 6015fbd19e..6a3a078cb5 100644
--- a/source/extensions/omni.isaac.lab_tasks/omni/isaac/lab_tasks/manager_based/manipulation/lift/lift_env_cfg.py
+++ b/source/extensions/omni.isaac.lab_tasks/omni/isaac/lab_tasks/manager_based/manipulation/lift/lift_env_cfg.py
@@ -6,7 +6,7 @@
 from dataclasses import MISSING
 
 import omni.isaac.lab.sim as sim_utils
-from omni.isaac.lab.assets import ArticulationCfg, AssetBaseCfg, RigidObjectCfg
+from omni.isaac.lab.assets import ArticulationCfg, AssetBaseCfg, DeformableObjectCfg, RigidObjectCfg
 from omni.isaac.lab.envs import ManagerBasedRLEnvCfg
 from omni.isaac.lab.managers import CurriculumTermCfg as CurrTerm
 from omni.isaac.lab.managers import EventTermCfg as EventTerm
@@ -40,7 +40,7 @@ class ObjectTableSceneCfg(InteractiveSceneCfg):
     # end-effector sensor: will be populated by agent env cfg
     ee_frame: FrameTransformerCfg = MISSING
     # target object: will be populated by agent env cfg
-    object: RigidObjectCfg = MISSING
+    object: RigidObjectCfg | DeformableObjectCfg = MISSING
 
     # Table
     table = AssetBaseCfg(
@@ -88,7 +88,7 @@ class ActionsCfg:
     """Action specifications for the MDP."""
 
     # will be set by agent env cfg
-    arm_action: mdp.JointPositionActionCfg = MISSING
+    arm_action: mdp.JointPositionActionCfg | mdp.DifferentialInverseKinematicsActionCfg = MISSING
     gripper_action: mdp.BinaryJointPositionActionCfg = MISSING