Terraform MCP Server

The Terraform MCP Server is a Model Context Protocol (MCP) server that provides seamless integration with Terraform Registry APIs, enabling advanced automation and interaction capabilities for Infrastructure as Code (IaC) development.

Features

• Dual Transport Support: Both Stdio and StreamableHTTP transports with configurable endpoints
• Terraform Registry Integration: Direct integration with public Terraform Registry APIs for providers, modules, and policies
• HCP Terraform & Terraform Enterprise Support: Full workspace management, organization/project listing, and private registry access
• Workspace Operations: Create, update, delete workspaces with support for variables, tags, and run management

Security Note: At this stage, the MCP server is intended for local use only. If using the StreamableHTTP transport, always configure the MCP_ALLOWED_ORIGINS environment variable to restrict access to trusted origins only. This helps prevent DNS rebinding attacks and other cross-origin vulnerabilities.

Security Note: Depending on the query, the MCP server may expose certain Terraform data to the MCP client and LLM. Do not use the MCP server with untrusted MCP clients or LLMs.

Legal Note: Your use of a third party MCP Client/LLM is subject solely to the terms of use for such MCP/LLM, and IBM is not responsible for the performance of such third party tools. IBM expressly disclaims any and all warranties and liability for third party MCP Clients/LLMs, and may not be able to provide support to resolve issues which are caused by the third party tools.

Caution: The outputs and recommendations provided by the MCP server are generated dynamically and may vary based on the query, model, and the connected MCP client. Users should thoroughly review all outputs/recommendations to ensure they align with their organization’s security best practices, cost-efficiency goals, and compliance requirements before implementation.

Prerequisites

1. Ensure Docker is installed and running to use the server in a containerized environment.
2. Install an AI assistant that supports the Model Context Protocol (MCP).

Command Line Options

Environment Variables:

Variable	Description	Default
TFE_ADDRESS	HCP Terraform or TFE address	"https://app.terraform.io"
TFE_TOKEN	Terraform Enterprise API token	"" (empty)
TFE_SKIP_TLS_VERIFY	Skip HCP Terraform or Terraform Enterprise TLS verification	false
TRANSPORT_MODE	Set to streamable-http to enable HTTP transport (legacy http value still supported)	stdio
TRANSPORT_HOST	Host to bind the HTTP server	127.0.0.1
TRANSPORT_PORT	HTTP server port	8080
MCP_ENDPOINT	HTTP server endpoint path	/mcp
MCP_SESSION_MODE	Session mode: stateful or stateless	stateful
MCP_ALLOWED_ORIGINS	Comma-separated list of allowed origins for CORS	"" (empty)
MCP_CORS_MODE	CORS mode: strict, development, or disabled	strict
MCP_TLS_CERT_FILE	Path to TLS cert file, required for non-localhost deployment (e.g. /path/to/cert.pem)	"" (empty)
MCP_TLS_KEY_FILE	Path to TLS key file, required for non-localhost deployment (e.g. /path/to/key.pem)	"" (empty)
MCP_RATE_LIMIT_GLOBAL	Global rate limit (format: rps:burst)	10:20
MCP_RATE_LIMIT_SESSION	Per-session rate limit (format: rps:burst)	5:10
ENABLE_TF_OPERATIONS	Enable tools that require explicit approval	false

# Stdio mode
terraform-mcp-server stdio [--log-file /path/to/log]

# StreamableHTTP mode
terraform-mcp-server streamable-http [--transport-port 8080] [--transport-host 127.0.0.1] [--mcp-endpoint /mcp] [--log-file /path/to/log]

Instructions

Default instructions for the MCP server is located in cmd/terraform-mcp-server/instructions.md, if those do not seem appropriate for your organization's Terraform practices or if the MCP server is producing inccurate responses, please replace them with your own instructions and rebuild the container or binary. An example of such instruction is located in instructions/example-mcp-instructions.md

AGENTS.md essentially behaves as READMEs for coding agents: a dedicated, predictable place to provide the context and instructions to help AI coding agents work on your project. One AGENTS.md file works with different coding agents. An example of such instruction is located in instructions/example-AGENTS.md, in order to use it commit a file name AGENTS.md to the directory where your Terraform configurations reside.

Installation

Usage with Visual Studio Code

Add the following JSON block to your User Settings (JSON) file in VS Code. You can do this by pressing Ctrl + Shift + P and typing Preferences: Open User Settings (JSON).

More about using MCP server tools in VS Code's agent mode documentation.

Version 0.3.0+ or greater

Version 0.2.3 or lower

{ "mcp": { "servers": { "terraform": { "command": "docker", "args": [ "run", "-i", "--rm", "-e", "${input:tfe_token}", "-e", "${input:tfe_hostname}", "hashicorp/terraform-mcp-server:0.3.0" ] } }, "inputs": [ { "type": "promptString", "id": "tfe_token", "description": "Terraform API Token", "password": true }, { "type": "promptString", "id": "tfe_hostname", "description": "Terraform Hostname", "password": false } ] } }

{ "mcp": { "servers": { "terraform": { "command": "docker", "args": [ "run", "-i", "--rm", "hashicorp/terraform-mcp-server:0.2.3" ] } } } }

Optionally, you can add a similar example (i.e. without the mcp key) to a file called .vscode/mcp.json in your workspace. This will allow you to share the configuration with others.

Version 0.3.0+ or greater

Version 0.2.3 or lower

{ "servers": { "terraform": { "command": "docker", "args": [ "run", "-i", "--rm", "-e", "${input:tfe_token}", "-e", "${input:tfe_hostname}", "hashicorp/terraform-mcp-server:0.3.0" ] } }, "inputs": [ { "type": "promptString", "id": "tfe_token", "description": "Terraform API Token", "password": true }, { "type": "promptString", "id": "tfe_hostname", "description": "Terraform hostname", "password": false } ] }

{ "servers": { "terraform": { "command": "docker", "args": [ "run", "-i", "--rm", "hashicorp/terraform-mcp-server:0.2.3" ] } } }

Usage with Cursor

Add this to your Cursor config (~/.cursor/mcp.json) or via Settings → Cursor Settings → MCP:

Version 0.3.0+ or greater	Version 0.2.3 or lower
{ "servers": { "terraform": { "command": "docker", "args": [ "run", "-i", "--rm", "-e", "<<PASTE_TFE_HOSTNAME_HERE>>", "-e", "<<PASTE_TFE_TOKEN_HERE>>", "hashicorp/terraform-mcp-server:0.3.0" ] } } }	{ "servers": { "terraform": { "command": "docker", "args": [ "run", "-i", "--rm", "hashicorp/terraform-mcp-server:0.2.3" ] } } }

Usage with Claude Desktop / Amazon Q Developer / Amazon Q CLI

More about using MCP server tools in Claude Desktop user documentation. Read more about using MCP server in Amazon Q from the documentation.

Version 0.3.0+ or greater	Version 0.2.3 or lower
{ "mcpServers": { "terraform": { "command": "docker", "args": [ "run", "-i", "--rm", "-e", "<<PASTE_TFE_HOSTNAME_HERE>>", "-e", "<<PASTE_TFE_TOKEN_HERE>>", "hashicorp/terraform-mcp-server:0.3.0" ] } } }	{ "mcpServers": { "terraform": { "command": "docker", "args": [ "run", "-i", "--rm", "hashicorp/terraform-mcp-server:0.2.3" ] } } }

Usage with Claude Code

More about using and adding MCP server tools in Claude Code user documentation

Local (stdio) Transport

claude mcp add terraform -s user -t stdio -- docker run -i --rm hashicorp/terraform-mcp-server

Remote (streamable-http) Transport

# Run server (example)
docker run -p 8080:8080 --rm -e TRANSPORT_MODE=streamable-http -e TRANSPORT_HOST=0.0.0.0 hashicorp/terraform-mcp-server

# Add to Claude Code
claude mcp add --transport http terraform http://localhost:8080/mcp

Install from source

Use the latest release version:

go install github.com/hashicorp/terraform-mcp-server/cmd/terraform-mcp-server@latest

Use the main branch:

go install github.com/hashicorp/terraform-mcp-server/cmd/terraform-mcp-server@main

Version 0.3.0+ or greater	Version 0.2.3 or lower
{ "mcp": { "servers": { "terraform": { "type": "stdio", "command": "/path/to/terraform-mcp-server", "env": { "TFE_TOKEN": "<<TFE_TOKEN_HERE>>" }, } } } }	{ "mcp": { "servers": { "terraform": { "type": "stdio", "command": "/path/to/terraform-mcp-server" } } } }

Building the Docker Image locally

Before using the server, you need to build the Docker image locally:

1. Clone the repository:

git clone https://github.com/hashicorp/terraform-mcp-server.git
cd terraform-mcp-server

2. Build the Docker image:

make docker-build

3. This will create a local Docker image that you can use in the following configuration.

# Run in stdio mode
docker run -i --rm terraform-mcp-server:dev

# Run in streamable-http mode
docker run -p 8080:8080 --rm -e TRANSPORT_MODE=streamable-http -e TRANSPORT_HOST=0.0.0.0 terraform-mcp-server:dev

Note: When running in Docker, you should set TRANSPORT_HOST=0.0.0.0 to allow connections from outside the container.

4. (Optional) Test connection in http mode

# Test the connection
curl http://localhost:8080/health

5. You can use it on your AI assistant as follow:

{
  "mcpServers": {
    "terraform": {
      "command": "docker",
      "args": [
        "run",
        "-i",
        "--rm",
        "terraform-mcp-server:dev"
      ]
    }
  }
}

Available Tools

Check out available tools here 🔗

Available Resources

Check out available resources here 🔗

Transport Support

The Terraform MCP Server supports multiple transport protocols:

1. Stdio Transport (Default)

Standard input/output communication using JSON-RPC messages. Ideal for local development and direct integration with MCP clients.

2. StreamableHTTP Transport

Modern HTTP-based transport supporting both direct HTTP requests and Server-Sent Events (SSE) streams. This is the recommended transport for remote/distributed setups.

Features:

• Endpoint: http://{hostname}:8080/mcp
• Health Check: http://{hostname}:8080/health
• Environment Configuration: Set TRANSPORT_MODE=http or TRANSPORT_PORT=8080 to enable

Session Modes

The Terraform MCP Server supports two session modes when using the StreamableHTTP transport:

• Stateful Mode (Default): Maintains session state between requests, enabling context-aware operations.
• Stateless Mode: Each request is processed independently without maintaining session state, which can be useful for high-availability deployments or when using load balancers.

To enable stateless mode, set the environment variable:

export MCP_SESSION_MODE=stateless

Development

Prerequisites

• Go (check go.mod file for specific version)
• Docker (optional, for container builds)

Available Make Commands

Command	Description
make build	Build the binary
make test	Run all tests
make test-e2e	Run end-to-end tests
make docker-build	Build Docker image
make run-http	Run HTTP server locally
make docker-run-http	Run HTTP server in Docker
make test-http	Test HTTP health endpoint
make clean	Remove build artifacts
make help	Show all available commands

Contributing

1. Fork the repository
2. Create your feature branch
3. Make your changes
4. Run tests
5. Submit a pull request

License

This project is licensed under the terms of the MPL-2.0 open source license. Please refer to LICENSE file for the full terms.

Security

For security issues, please contact [email protected] or follow our security policy.

Support

For bug reports and feature requests, please open an issue on GitHub.

For general questions and discussions, open a GitHub Discussion.