The Terraform MCP Server is a Model Context Protocol (MCP)
server that integrates seamlessly with Terraform Registry and HCP Terraform APIs, enabling advanced
automation and interaction capabilities for Infrastructure as Code (IaC) development.
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
OTel metrics for monitoring tool usage: Integration with open telemetry meters to track tool-call volume, latency and failures in Streamable HTTP mode. Also exposes default http server metrics when this feature is enabled
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
Ensure Docker is installed and running to use the server in a containerized environment.
Install an AI assistant that supports the Model Context Protocol (MCP).
Command Line Options
Environment Variables:
Variable
Description
Default
TFE_ADDRESS
Sets the Terraform Enterprise/HCP Terraform address for API calls. Must include the protocol (e.g., https://app.terraform.io). In streamable-http mode this is the only way to set the address; it cannot be supplied by clients via header or query parameter.
Optional
TFE_TOKEN
Terraform Enterprise API token
"" (empty)
TF_MCP_QUERY_WORKSPACE
Proposed source workspace used by Search/query tools unless the user supplies an explicit workspace override. The agent confirms the resolved source before the query workflow. Independent of the import destination.
Unset; falls back to TF_WORKSPACE
TF_MCP_IMPORT_WORKSPACE
Proposed import destination used by import tools unless the user supplies an explicit target override. The agent must always present and confirm the target before calling an import tool. Separate from the query workspace.
Unset; falls back to TF_WORKSPACE
TF_WORKSPACE
Fallback source-workspace default when TF_MCP_QUERY_WORKSPACE is unset and fallback import-target default when TF_MCP_IMPORT_WORKSPACE is unset. Neither use replaces agent confirmation.
Unset
TF_CLOUD_ORGANIZATION
Proposed Search source organization used when no explicit organization override is supplied. The agent confirms the resolved source before the query workflow.
Unset
TF_MCP_SHARED_SECRET
Shared secret sent as the X-Tf-Mcp-Secret header on requests to HCP Terraform / TFE, used to identify requests originating from a hosted MCP deployment. Should only be used over TLS.
"" (empty)
TFE_SKIP_TLS_VERIFY
Skip HCP Terraform or Terraform Enterprise TLS verification
Logging format: text or json (overrides --log-format flag)
text
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_REDIRECT_ROOT_URL
URL to redirect requests to / to
""
MCP_KEEP_ALIVE
Keep-alive interval for SSE connections (e.g., 30s, 1m). 0 to disable
0
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
MCP_ORGANIZATION_ALLOWLIST
CSV list of HCP Terraform organization names allowed to access the HTTP server
"" (empty)
MCP_FORWARD_CLIENT_IP
Forward the client IP to HCP Terraform / TFE via X-Forwarded-For. Set to true to enable
false
MCP_REMOTE_IP_METHOD
How the client IP is sourced when forwarding is enabled: RemoteAddr (direct connection only), X-Real-IP, or X-Forwarded-For
RemoteAddr
MCP_XFF_TRUSTED_HOPS
Number of trusted proxy hops counted from the right of the X-Forwarded-For chain. Only used when MCP_REMOTE_IP_METHOD=X-Forwarded-For
0
MCP_PPROF_ADDR
Address to serve Go pprof profiling endpoints on, like 127.0.0.1:6060. Off when unset. See Profiling
"" (empty)
ENABLE_TF_OPERATIONS
Enable tools that require explicit approval
false
OTEL_METRICS_ENABLED
Enable tools and server metrics using otel
false
OTEL_METRICS_SERVICE_VERSION
Version of the terraform-mcp-server sending metrics, which is used to set metric attributes. It also helps track metrics across different deployments
latest
OTEL_METRICS_SERVICE_NAME
Identifies the source of the metrics (e.g., "terraform-mcp-server")
terraform-mcp-server
OTEL_METRICS_EXPORT_INTERVAL
Controls the frequency of metric flushes
2
OTEL_METRICS_ENDPOINT
URL of your OTel Collector or backend
localhost:4318
INSTANA_ENABLED
Enable Instana instrumentation (metrics and HTTP request tracing) for the streamable-http server. Requires an Instana agent that is reachable by the server.
false
INSTANA_SERVICE_NAME
If Instana instrumentation is enabled, the service name to use for the MCP server
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 inaccurate 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).
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.
For security, avoid hardcoding your credentials, create or update ~/.gemini/.env (where ~ is your home or project directory) for storing HCP Terraform or Terraform Enterprise credentials
More about using and adding MCP servers in OpenCode user documentation. Add the server to your project opencode.json or the global ~/.config/opencode/opencode.json.
When a tool fails because of an HCP Terraform or TFE API response we can identify, the error text starts with a code and the result's _meta carries the code and HTTP status:
The resource doesn't exist, or the token can't see it
conflict
409
The workspace is locked, not locked, or can't be safely deleted
Other failures, like network errors or validation errors from the API, don't get a code.
These are normal tool results, so the HTTP status is still 200. A missing token doesn't get a code since it fails before calling the API. To reject requests without a token with an HTTP 401, set MCP_REQUIRE_TOKEN=true.
Two kinds of metrics are collected.
First, standard HTTP server metrics are added by wrapping the HTTP mux with otelhttp.NewHandler(...). This emits:
http.server.request.body.size
http.server.response.body.size
http.server.request.duration
Second, the MCP server records custom tool metrics around tool execution using MCP hooks (BeforeCallTool / AfterCallTool). These emit:
mcp_tool_calls_total
mcp_tool_errors_total
mcp_tool_duration_seconds
mcp_client_type_total
mcp_org_tool_calls_total
Tool Filtering
Control which tools are available using --toolsets (groups) or --tools (individual):
## Enable tool groups (default: registry)
terraform-mcp-server --toolsets=registry,terraform
## Enable specific tools only
terraform-mcp-server --tools=search_provider_docs,get_provider_details,list_workspaces
Available toolsets: registry, registry-private, terraform, all, default. See pkg/toolsets/mapping.go for individual tool names. Cannot use both flags together.
Search Toolset
Search tools resolve a proposed source from explicit arguments first, then server-configured query defaults. Without an override, the source workspace uses TF_MCP_QUERY_WORKSPACE, then TF_WORKSPACE, and the source organization uses TF_CLOUD_ORGANIZATION. Import tools independently resolve a proposed target workspace from an explicit argument, then TF_MCP_IMPORT_WORKSPACE, then TF_WORKSPACE; they never use TF_MCP_QUERY_WORKSPACE as the target default. The target organization uses an explicit argument, then TF_CLOUD_ORGANIZATION, and must still match the QueryRun source organization. Overrides apply independently to each field. If either field was omitted, present and confirm the complete resolved pair before continuing. Empty and whitespace-only values are treated as unset. No TF_MCP_ORGANIZATION variable is used.
On a remote server, these environment variables are server-wide defaults shared by all users of that server. Explicit terraform_org_name and workspace_name arguments override the corresponding defaults for that request; they do not change the server configuration or other users' requests. organization_name is not accepted as a Search tool input alias.
When either scope field is omitted, the Mark3Labs route returns a normal, non-error JSON result with status (input_required), proposed_scope, and missing_inputs before tool-handler client acquisition or scoped API access. The agent presents the complete proposal, obtains confirmation or corrections, and retries with explicit terraform_org_name and workspace_name. The official SDK route requests the same complete pair through CallToolResult.InputRequests. Both routes require explicit scope on the continued call and make no scoped API request while requesting input.
Source confirmation and query execution approval: Before provider discovery for a new query, the agent confirms the resolved source organization and workspace. Before calling execute_search_query, the agent separately summarizes that source and the query selections (provider, resource types, and filters, if any), explains that execution starts a query run without creating or modifying infrastructure, and waits for user approval. If the source or query selections change, approval must be obtained again. This is agent-driven guidance, not a server-enforced approval parameter or status; clients calling the tool directly are not blocked by an approval check.
Pass workspace variables to the MCP server process, for example through the environment settings in OpenCode's JSON/JSONC configuration or an equivalent MCP-client configuration. A container or remote deployment must receive them in its own environment. The server does not read client configuration files or inherit the agent's separate shell environment. When import is requested, the agent always asks for and confirms the target organization, target workspace, and existing local configuration directory. A query default or configured import default never authorizes that target. After confirmation, pass the complete target explicitly to prepare_import and verify_import_plan. The read-only import tools do not upload configuration, create a speculative Run, apply an import, or modify infrastructure.
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
Organization Allowlist: Set MCP_ORGANIZATION_ALLOWLIST or --organization-allowlist to a CSV list of allowed HCP Terraform organization names
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
Token Passthrough for Centralized Deployments
When running the MCP server centrally (StreamableHTTP mode) for multiple users, each user can pass their own Terraform token via HTTP headers for RBAC enforcement. This allows a single server instance to serve multiple users with different permissions.
When MCP_ORGANIZATION_ALLOWLIST or --organization-allowlist is configured, the allowlist must be a CSV list of HCP Terraform organization names. The server requires Authorization: Bearer <token> and rejects requests unless that token can access at least one organization in the CSV allowlist. The bearer token takes precedence if the request also includes a TFE_TOKEN header, ensuring the token validated by the allowlist is the token used for Terraform API requests. Organization name matching is case-insensitive. If the configured CSV value parses to zero organization names, the server exits with a malformed organization allowlist error.
Client IP Forwarding
When running the MCP server centrally behind a proxy or load balancer, you can forward the originating client's IP to HCP Terraform / TFE via the X-Forwarded-For header. This is off by default and must be enabled with MCP_FORWARD_CLIENT_IP=true.
When enabled, the server sources the client IP according to MCP_REMOTE_IP_METHOD:
Method
Behavior
RemoteAddr (default)
Uses only the address of the direct TCP connection. Ignores X-Forwarded-For and X-Real-IP.
X-Real-IP
Uses the X-Real-IP header if it is a valid IP, otherwise falls back to RemoteAddr.
X-Forwarded-For
Uses the X-Forwarded-For header, selecting the entry MCP_XFF_TRUSTED_HOPS positions from the right. Falls back to RemoteAddr if the value is missing or invalid.
Trust model
X-Forwarded-For and X-Real-IP are set by clients and intermediary proxies, so they can be spoofed unless a trusted proxy in front of the server overwrites them. For this reason the default is RemoteAddr, which trusts only the peer the server is directly connected to. Only enable X-Real-IP or X-Forwarded-For when the server sits behind a proxy you control that sets these headers. Some load balancers, including AWS Application Load Balancers, do not set X-Real-IP, so with those the header comes straight from the client and should not be used.
Trusted hops
When using X-Forwarded-For, set MCP_XFF_TRUSTED_HOPS to the number of proxies you operate in front of the server. Each proxy appends the address it received the request from, not its own address, so the client IP is the entry that many positions from the right. Everything to the left of it was sent by the client and can be spoofed.
For example, behind a single load balancer such as an AWS ALB, set MCP_XFF_TRUSTED_HOPS=1. A header of 198.51.100.7 resolves to 198.51.100.7, and a header of 1.2.3.4, 198.51.100.7, where the client sent 1.2.3.4 itself, also resolves to 198.51.100.7. With MCP_XFF_TRUSTED_HOPS=2 and 1.2.3.4, 198.51.100.7, 10.0.0.5, the server selects 198.51.100.7. If the hop count is greater than the number of entries, or the selected entry is not a valid IP, the server falls back to RemoteAddr.
Setting the hop count too high will trust a client-supplied value; setting it too low will select an address from your own infrastructure. Set it to the exact number of proxies you run.
Limitations
If a request carries multiple X-Forwarded-For headers, the server joins them in order before selecting an entry. X-Forwarded-For header.
IPv4 and IPv6 addresses are both supported. Values that are not valid IPs are rejected and the server falls back to RemoteAddr.
Migrating from earlier versions
Earlier versions used the leftmost X-Forwarded-For value when the header was present, with no configuration. This was insecure, since the leftmost value is the most easily spoofed. The default is now RemoteAddr. If you run the server behind a proxy and rely on X-Forwarded-For being forwarded to HCP Terraform / TFE, set MCP_REMOTE_IP_METHOD=X-Forwarded-For and MCP_XFF_TRUSTED_HOPS to the number of proxies you operate.
Supported Headers
Header
Description
TFE_TOKEN
Terraform API token
Authorization: Bearer <token>
Alternative method using standard Bearer auth
Example: curl
## Using TFE_TOKEN header
curl -X POST http://localhost:8080/mcp \
-H "Content-Type: application/json" \
-H "TFE_TOKEN: your-user-token" \
-d '{"jsonrpc":"2.0","id":1,"method":"initialize",...}'
## Using Authorization Bearer header
curl -X POST http://localhost:8080/mcp \
-H "Content-Type: application/json" \
-H "Authorization: Bearer your-user-token" \
-d '{"jsonrpc":"2.0","id":1,"method":"initialize",...}'
Request IDs
In streamable-http mode every request gets its own correlation ID. The server sends it as the X-Request-Id header on its calls to HCP Terraform / TFE and the public registry, returns it to the client in the X-Request-Id response header, and logs it as request_id on tool calls. In stdio mode each tool call gets its own ID. The server always generates the ID itself, so an X-Request-Id sent by the client is ignored.
Security Considerations
TFE_ADDRESS cannot be set by clients. In streamable-http mode the Terraform address is sourced only from the server-side TFE_ADDRESS environment variable (or the default). Requests that attempt to set TFE_ADDRESS via HTTP header or query parameter are rejected with a 403. This prevents a client from redirecting requests, and the Authorization token, to a malicious server.
TFE_SKIP_TLS_VERIFY cannot be set by clients. In streamable-http mode it is read only from the server-side environment variable. If a client sends it as a header or query parameter it is ignored and a warning is logged, so a client cannot turn off certificate verification on the server's calls to HCP Terraform / TFE.
Hosted deployment identification: setting TF_MCP_SHARED_SECRET sends that value as the X-Tf-Mcp-Secret header on every HCP Terraform / TFE request, letting the backend identify requests from a known hosted deployment (e.g. to apply IP allowlists). It is a static secret sent in a header, so only use it over TLS and treat the value as a credential.
Never pass tokens in query parameters - the server will reject such requests with a 400 error.
Always use TLS (MCP_TLS_CERT_FILE/MCP_TLS_KEY_FILE) when deploying centrally to protect tokens in transit.
Configure MCP_ALLOWED_ORIGINS to restrict which clients can connect.
Centralized Deployment Example
## Start server centrally (no token set server-side)
docker run -p 8080:8080 \
-e TRANSPORT_MODE=streamable-http \
-e TRANSPORT_HOST=0.0.0.0 \
-e TFE_ADDRESS=https://tfe.company.com \
-e MCP_TLS_CERT_FILE=/certs/server.pem \
-e MCP_TLS_KEY_FILE=/certs/server-key.pem \
-e MCP_ALLOWED_ORIGINS=https://ide.company.com \
-e MCP_ORGANIZATION_ALLOWLIST=team-alpha,team-beta \
-v /path/to/certs:/certs \
hashicorp/terraform-mcp-server:1.4.1
Users then connect with their individual tokens passed via headers, enabling per-user RBAC enforcement.
Profiling
Set MCP_PPROF_ADDR to serve Go's pprof endpoints on a separate port from the MCP server. It's off by default and works in every transport mode.
## 30 second CPU profile
go tool pprof http://127.0.0.1:6060/debug/pprof/profile?seconds=30
## memory in use right now
go tool pprof http://127.0.0.1:6060/debug/pprof/heap
## every goroutine and what it's doing
curl http://127.0.0.1:6060/debug/pprof/goroutine?debug=1
http://127.0.0.1:6060/debug/pprof/ lists everything you can grab. Profiles show the server's internals, so keep it on loopback, the server logs a warning if it's bound to anything else. In Kubernetes, bind it to 127.0.0.1 and use kubectl port-forward pod/<pod> 6060:6060 to get to it.
Troubleshooting
Corporate Proxy / TLS Inspection (Zscaler, etc.)
If you're behind a corporate proxy that performs TLS inspection (like Zscaler Internet Access), you may see certificate errors:
tls: failed to verify certificate: x509: certificate signed by unknown authority
Solution: Mount your corporate CA certificate into the container:
For bug reports and feature requests, please open an issue on GitHub.
For general questions and discussions, open a GitHub Discussion.
At a glance
Category
Coding
Pricing model
Free
Best for
ai-agents, mcp-server, infrastructure
What is Terraform MCP Server? Terraform MCP Server is a coding tool listed on Scriptiii AI Tools. HashiCorp MCP server for Terraform Registry data, providers, modules and HCP Terraform workflows. Pricing: Free. Free to use. Best for: ai-agents, mcp-server, infrastructure.
Questions & answers
Everything you need to know about Terraform MCP Server
What is Terraform MCP Server?
Terraform MCP Server is a coding tool. HashiCorp MCP server for Terraform Registry data, providers, modules and HCP Terraform workflows.
What does Terraform MCP Server cost?
Free. Free to use.
What is Terraform MCP Server best for?
ai-agents, mcp-server, infrastructure. It is filed under Coding.