diff --git a/pkg/hashicorp/tfregistry/handlers.go b/pkg/hashicorp/tfregistry/handlers.go
index 72a8aa1..975922b 100644
--- a/pkg/hashicorp/tfregistry/handlers.go
+++ b/pkg/hashicorp/tfregistry/handlers.go
@@ -213,3 +213,127 @@ func ModuleDetails(registryClient *http.Client, logger *log.Logger) (tool mcp.To
 			}
 		}
 }
+
+func SearchPolicies(registryClient *http.Client, logger *log.Logger) (tool mcp.Tool, handler server.ToolHandlerFunc) {
+	return mcp.NewTool("searchPolicies",
+			mcp.WithDescription(`Searches for Terraform policies based on a query string. This tool returns a list of matching policies, which can be used to retrieve detailed policy information using the 'policyDetails' tool. 
+			You MUST call this function before 'providerDetails' to obtain a valid terraformPolicyID.
+			When selecting the best match, consider: - Name similarity to the query - Title relevance - Verification status (verified) - Download counts (popularity) Return the selected policyID and explain your choice. 
+			If there are multiple good matches, mention this but proceed with the most relevant one. If no policies were found, reattempt the search with a new policyQuery.`),
+			mcp.WithTitleAnnotation("Search and match Terraform policies based on name and relevance"),
+			mcp.WithOpenWorldHintAnnotation(true),
+			mcp.WithString("policyQuery",
+				mcp.Required(),
+				mcp.Description("The query to search for Terraform modules."),
+			),
+		), func(ctx context.Context, request mcp.CallToolRequest) (*mcp.CallToolResult, error) {
+			var terraformPolicies TerraformPolicyList
+			policyQuery := request.Params.Arguments["policyQuery"]
+			if pq, ok := policyQuery.(string); !ok {
+				return nil, logAndReturnError(logger, "error finding the policy based on that name;", nil)
+			} else {
+
+				// static list of 100 is fine for now
+				policyResp, err := sendRegistryCall(registryClient, "GET", "policies?page%5Bsize%5D=100&include=latest-version", logger, "v2")
+				if err != nil {
+					return nil, logAndReturnError(logger, "Failed to fetch policies: registry API did not return a successful response", err)
+				}
+
+				err = json.Unmarshal(policyResp, &terraformPolicies)
+				if err != nil {
+					return nil, logAndReturnError(nil, "unmarshalling policy list", err)
+				}
+
+				var builder strings.Builder
+				builder.WriteString(fmt.Sprintf("Matching Terraform Policies for query: %s\n\n", pq))
+				builder.WriteString("Each result includes:\n- terraformPolicyID: Unique identifier to be used with policyDetails tool\n- Name: Policy name\n- Title: Policy description\n- Downloads: Policy downloads\n---\n\n")
+
+				contentAvailable := false
+				for _, policy := range terraformPolicies.Data {
+					if strings.Contains(strings.ToLower(policy.Attributes.Name), strings.ToLower(pq)) ||
+						strings.Contains(strings.ToLower(policy.Attributes.Title), strings.ToLower(pq)) {
+						contentAvailable = true
+						ID := strings.ReplaceAll(policy.Relationships.LatestVersion.Links.Related, "/v2/", "")
+						builder.WriteString(fmt.Sprintf(
+							"- terraformPolicyID: %s\n- Name: %s\n- Title: %s\n- Downloads: %d\n---\n",
+							ID,
+							policy.Attributes.Name,
+							policy.Attributes.Title,
+							policy.Attributes.Downloads,
+						))
+					}
+				}
+
+				policyData := builder.String()
+				if !contentAvailable {
+					policyData = fmt.Sprintf("No policies found matching the query: %s. Try a different policyQuery.", pq)
+				}
+
+				return mcp.NewToolResultText(policyData), nil
+			}
+		}
+}
+
+func PolicyDetails(registryClient *http.Client, logger *log.Logger) (tool mcp.Tool, handler server.ToolHandlerFunc) {
+	return mcp.NewTool("policyDetails",
+			mcp.WithDescription(`Fetches up-to-date documentation for a specific policy from the Terraform registry. You must call 'searchPolicies' first to obtain the exact terraformPolicyID required to use this tool.`),
+			mcp.WithTitleAnnotation("Fetch detailed Terraform policy documentation using a terraformPolicyID"),
+			mcp.WithOpenWorldHintAnnotation(true),
+			mcp.WithString("terraformPolicyID",
+				mcp.Required(),
+				mcp.Description("Matching terraformPolicyID retrieved from the 'searchPolicies' tool (e.g., 'policies/hashicorp/CIS-Policy-Set-for-AWS-Terraform/1.0.1')"),
+			),
+		), func(ctx context.Context, request mcp.CallToolRequest) (*mcp.CallToolResult, error) {
+			terraformPolicyID, ok := request.Params.Arguments["terraformPolicyID"].(string)
+			if !ok || terraformPolicyID == "" {
+				return nil, logAndReturnError(logger, "terraformPolicyID is required and must be a string, it is fetched by running the searchPolicies tool", nil)
+			}
+
+			policyResp, err := sendRegistryCall(registryClient, "GET", fmt.Sprintf("%s?include=policies,policy-modules,policy-library", terraformPolicyID), logger, "v2")
+			if err != nil {
+				return nil, logAndReturnError(logger, "Failed to fetch policy details: registry API did not return a successful response", err)
+			}
+
+			var policyDetails TerraformPolicyDetails
+			if err := json.Unmarshal(policyResp, &policyDetails); err != nil {
+				return nil, logAndReturnError(logger, fmt.Sprintf("error unmarshalling policy details for %s", terraformPolicyID), err)
+			}
+
+			readme := extractReadme(policyDetails.Data.Attributes.Readme)
+			var builder strings.Builder
+			builder.WriteString(fmt.Sprintf("## Policy details about %s \n\n%s", terraformPolicyID, readme))
+			policyList := ""
+			moduleList := ""
+			for _, policy := range policyDetails.Included {
+				if policy.Type == "policy-modules" {
+					moduleList += fmt.Sprintf(`
+module "%s" {
+	source = "https://registry.terraform.io/v2%s/policy-module/%s.sentinel?checksum=sha256:%s"
+}
+					`, policy.Attributes.Name, terraformPolicyID, policy.Attributes.Name, policy.Attributes.Shasum)
+				}
+
+				if policy.Type == "policies" {
+					policyList += fmt.Sprintf("- POLICY_NAME: %s\n- POLICY_CHECKSUM: sha256:%s\n", policy.Attributes.Name, policy.Attributes.Shasum)
+					policyList += "\n---\n"
+				}
+			}
+			builder.WriteString("---\n")
+			builder.WriteString("## Usage\n\n")
+			builder.WriteString("Generate the content for a HashiCorp Configuration Language (HCL) file named policies.hcl. This file should define a set of policies. For each policy provided, create a distinct policy block using the following template.\n")
+			builder.WriteString("\n```hcl\n")
+			builder.WriteString(moduleList)
+			builder.WriteString(fmt.Sprintf(`
+policy "<<POLICY_NAME>>" {
+	source = "https://registry.terraform.io/v2%s/policy/<<POLICY_NAME>>.sentinel?checksum=<<POLICY_CHECKSUM>>"
+	enforcement_level = "advisory"
+}
+			`, terraformPolicyID))
+			builder.WriteString("\n```\n")
+			builder.WriteString(fmt.Sprintf("Available policies with SHA for %s are: \n\n", terraformPolicyID))
+			builder.WriteString(policyList)
+
+			policyData := builder.String()
+			return mcp.NewToolResultText(policyData), nil
+		}
+}
diff --git a/pkg/hashicorp/tfregistry/tools.go b/pkg/hashicorp/tfregistry/tools.go
index bb01f60..5d18b90 100644
--- a/pkg/hashicorp/tfregistry/tools.go
+++ b/pkg/hashicorp/tfregistry/tools.go
@@ -15,4 +15,6 @@ func InitTools(hcServer *server.MCPServer, registryClient *http.Client, logger *
 	hcServer.AddTool(GetProviderDocs(registryClient, logger))
 	hcServer.AddTool(SearchModules(registryClient, logger))
 	hcServer.AddTool(ModuleDetails(registryClient, logger))
+	hcServer.AddTool(SearchPolicies(registryClient, logger))
+	hcServer.AddTool(PolicyDetails(registryClient, logger))
 }
diff --git a/pkg/hashicorp/tfregistry/types.go b/pkg/hashicorp/tfregistry/types.go
index c533203..e5c0835 100644
--- a/pkg/hashicorp/tfregistry/types.go
+++ b/pkg/hashicorp/tfregistry/types.go
@@ -309,3 +309,122 @@ type ProviderDocData struct {
 		Self string `json:"self"`
 	} `json:"links"`
 }
+
+type TerraformPolicyList struct {
+	Data []struct {
+		Type       string `json:"type"`
+		ID         string `json:"id"`
+		Attributes struct {
+			Downloads int    `json:"downloads"`
+			FullName  string `json:"full-name"`
+			Ingress   string `json:"ingress"`
+			Name      string `json:"name"`
+			Namespace string `json:"namespace"`
+			OwnerName string `json:"owner-name"`
+			Source    string `json:"source"`
+			Title     string `json:"title"`
+			Verified  bool   `json:"verified"`
+		} `json:"attributes"`
+		Relationships struct {
+			LatestVersion struct {
+				Data struct {
+					ID   string `json:"id"`
+					Type string `json:"type"`
+				} `json:"data"`
+				Links struct {
+					Related string `json:"related"`
+				} `json:"links"`
+			} `json:"latest-version"`
+		} `json:"relationships"`
+		Links struct {
+			Self string `json:"self"`
+		} `json:"links"`
+	} `json:"data"`
+	Included []struct {
+		Type       string `json:"type"`
+		ID         string `json:"id"`
+		Attributes struct {
+			Description string    `json:"description"`
+			Downloads   int       `json:"downloads"`
+			PublishedAt time.Time `json:"published-at"`
+			Readme      string    `json:"readme"`
+			Source      string    `json:"source"`
+			Tag         string    `json:"tag"`
+			Version     string    `json:"version"`
+		} `json:"attributes"`
+		Links struct {
+			Self string `json:"self"`
+		} `json:"links"`
+	} `json:"included"`
+	Links struct {
+		First string `json:"first"`
+		Last  string `json:"last"`
+		Next  any    `json:"next"`
+		Prev  any    `json:"prev"`
+	} `json:"links"`
+	Meta struct {
+		Pagination struct {
+			PageSize    int `json:"page-size"`
+			CurrentPage int `json:"current-page"`
+			NextPage    any `json:"next-page"`
+			PrevPage    any `json:"prev-page"`
+			TotalPages  int `json:"total-pages"`
+			TotalCount  int `json:"total-count"`
+		} `json:"pagination"`
+	} `json:"meta"`
+}
+
+type TerraformPolicyDetails struct {
+	Data struct {
+		Type       string `json:"type"`
+		ID         string `json:"id"`
+		Attributes struct {
+			Description string    `json:"description"`
+			Downloads   int       `json:"downloads"`
+			PublishedAt time.Time `json:"published-at"`
+			Readme      string    `json:"readme"`
+			Source      string    `json:"source"`
+			Tag         string    `json:"tag"`
+			Version     string    `json:"version"`
+		} `json:"attributes"`
+		Relationships struct {
+			Policies struct {
+				Data []struct {
+					Type string `json:"type"`
+					ID   string `json:"id"`
+				} `json:"data"`
+			} `json:"policies"`
+			PolicyLibrary struct {
+				Data struct {
+					Type string `json:"type"`
+					ID   string `json:"id"`
+				} `json:"data"`
+			} `json:"policy-library"`
+			PolicyModules struct {
+				Data []struct {
+					Type string `json:"type"`
+					ID   string `json:"id"`
+				} `json:"data"`
+			} `json:"policy-modules"`
+		} `json:"relationships"`
+		Links struct {
+			Self string `json:"self"`
+		} `json:"links"`
+	} `json:"data"`
+	Included []struct {
+		Type       string `json:"type"`
+		ID         string `json:"id"`
+		Attributes struct {
+			Description string `json:"description"`
+			Downloads   int    `json:"downloads"`
+			FullName    string `json:"full-name"`
+			Name        string `json:"name"`
+			Shasum      string `json:"shasum"`
+			ShasumType  string `json:"shasum-type"`
+			Title       string `json:"title"`
+		} `json:"attributes"`
+		Links struct {
+			Self string `json:"self"`
+		} `json:"links"`
+	} `json:"included"`
+}
diff --git a/pkg/hashicorp/tfregistry/utils.go b/pkg/hashicorp/tfregistry/utils.go
index 37af8fa..ca77de1 100644
--- a/pkg/hashicorp/tfregistry/utils.go
+++ b/pkg/hashicorp/tfregistry/utils.go
@@ -522,3 +522,25 @@ func isV2ProviderDataType(dataType string) bool {
 	v2Categories := []string{"guides", "functions", "overview"}
 	return slices.Contains(v2Categories, dataType)
 }
+
+func extractReadme(readme string) string {
+	if readme == "" {
+		return ""
+	}
+
+	extractedReadme := ""
+	headerFound := false
+	strArr := strings.Split(readme, "\n")
+	for _, str := range strArr {
+		if strings.Contains(str, "#") {
+			if headerFound {
+				return extractedReadme
+			}
+			headerFound = true
+		}
+		extractedReadme += str + "\n"
+	}
+
+	extractedReadme = strings.TrimSuffix(extractedReadme, "\n")
+	return extractedReadme
+}
diff --git a/pkg/hashicorp/tfregistry/utils_test.go b/pkg/hashicorp/tfregistry/utils_test.go
index 62bbc44..54b97ea 100644
--- a/pkg/hashicorp/tfregistry/utils_test.go
+++ b/pkg/hashicorp/tfregistry/utils_test.go
@@ -351,3 +351,56 @@ func TestIsV2ProviderDataType(t *testing.T) {
 		}
 	}
 }
+
+func TestExtractReadme(t *testing.T) {
+	tests := []struct {
+		name     string
+		readme   string
+		expected string
+	}{
+		{
+			name:     "SingleSection",
+			readme:   "# Title\nSome content here.",
+			expected: "# Title\nSome content here.",
+		},
+		{
+			name:     "TwoSections",
+			readme:   "# Title\nSome content here.\n# Section2\nMore content.",
+			expected: "# Title\nSome content here.\n",
+		},
+		{
+			name:     "NoHash",
+			readme:   "No hash at all",
+			expected: "No hash at all",
+		},
+		{
+			name:     "MultipleHashes",
+			readme:   "# First\nContent1\n# Second\nContent2\n# Third\nContent3",
+			expected: "# First\nContent1\n",
+		},
+		{
+			name:     "HashAtEnd",
+			readme:   "Some intro\n# OnlySection",
+			expected: "Some intro\n# OnlySection",
+		},
+		{
+			name:     "HashWithoutNextLine",
+			readme:   "Some intro\n# OnlySection ## More Content",
+			expected: "Some intro\n# OnlySection ## More Content",
+		},
+		{
+			name:     "EmptyString",
+			readme:   "",
+			expected: "",
+		},
+	}
+
+	for _, tc := range tests {
+		t.Run(tc.name, func(t *testing.T) {
+			result := extractReadme(tc.readme)
+			if result != tc.expected {
+				t.Errorf("extractReadme(%q) = %q; want %q", tc.readme, result, tc.expected)
+			}
+		})
+	}
+}