diff --git a/action.yml b/action.yml
index f42ae74..c7287e8 100644
--- a/action.yml
+++ b/action.yml
@@ -58,7 +58,7 @@ runs:
           - ${{ inputs.atmos-gitops-config-path }}
 
     - name: Install Terraform
-      uses: hashicorp/setup-terraform@v2
+      uses: hashicorp/setup-terraform@v3
       with:
         terraform_version:  ${{ steps.config.outputs.terraform-version }}
         terraform_wrapper: false