Terraform MCP Server for VS Code: Setup & Config

What you can do with Terraform in VS Code

Choose it for Terraform Registry research and platform workspace operations through one MCP integration.

• Look up provider and module information while drafting Terraform configuration.
• Manage Terraform workspaces, variables, tags, and runs.

Before you start: Terraform in VS Code

• Docker installed and running
• An MCP-compatible assistant

This command is the README's local Claude Code Docker launch. HCP Terraform or Enterprise access additionally uses TFE_ADDRESS and TFE_TOKEN, which must be forwarded into the container as shown in the README's client-specific examples. Public Registry use and platform access are distinct configurations.

Terraform VS Code configuration

1. Choose VS Code configuration scope

   For Terraform MCP Server, open Workspace: .vscode/mcp.json. Merge into servers; preserve existing inputs.

2. Add Terraform MCP Server to VS Code

   Use the terraform-mcp-server entry below in servers. Keep Terraform MCP Server's documented stdio connection fields and your other VS Code entries.

3. Check Terraform MCP Server in VS Code

   Terraform MCP Server: Start in VS Code’s MCP controls; inspect output and trust prompts.

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

Terraform tools available to VS Code

Terraform's stored tool list documents 2 tools; compare it with VS Code's connected tool list, because the stored list is not a live check.

search_providers

Look for search_providers among VS Code's agent-mode tools after starting Terraform through the MCP controls.

Search Terraform providers; named in the README's tool-filtering example.

get_provider_details

Look for get_provider_details among VS Code's agent-mode tools after starting Terraform through the MCP controls.

Terraform: full stored tool descriptions

Troubleshooting Terraform in VS Code

• Make docker and a running Docker engine available in the workspace, container, or remote environment hosting Terraform MCP Server. Start through VS Code's MCP controls; inspect output and trust prompts.
• Terraform MCP Server uses stdio here: VS Code must keep the configured process running; protocol output belongs on stdout and diagnostics on stderr.
• Known limitation: Connected clients and models may receive sensitive Terraform data.
• Known limitation: Write-capable platform operations need deliberate permission and tool configuration.
• Known limitation: The complete tool catalog is linked externally rather than included in the supplied README.
• General VS Code troubleshooting lives in the /clients/vscode guide.

Frequently asked questions