diff --git a/pkg/iac/scanners/terraform/parser/evaluator.go b/pkg/iac/scanners/terraform/parser/evaluator.go
index 1dea2e9473a3..a203451245ff 100644
--- a/pkg/iac/scanners/terraform/parser/evaluator.go
+++ b/pkg/iac/scanners/terraform/parser/evaluator.go
@@ -3,7 +3,6 @@ package parser
 import (
 	"context"
 	"errors"
-	"fmt"
 	"io/fs"
 	"reflect"
 	"time"
@@ -148,7 +147,8 @@ func (e *evaluator) EvaluateAll(ctx context.Context) (terraform.Modules, map[str
 		}
 	}
 
-	// expand out resources and modules via count (not a typo, we do this twice so every order is processed)
+	// expand out resources and modules via count, for-each and dynamic
+	// (not a typo, we do this twice so every order is processed)
 	e.blocks = e.expandBlocks(e.blocks)
 	e.blocks = e.expandBlocks(e.blocks)
 
@@ -204,7 +204,7 @@ func (e *evaluator) isModuleLocal() bool {
 }
 
 func (e *evaluator) expandBlocks(blocks terraform.Blocks) terraform.Blocks {
-	return e.expandDynamicBlocks(e.expandBlockForEaches(e.expandBlockCounts(blocks))...)
+	return e.expandDynamicBlocks(e.expandBlockForEaches(e.expandBlockCounts(blocks), false)...)
 }
 
 func (e *evaluator) expandDynamicBlocks(blocks ...*terraform.Block) terraform.Blocks {
@@ -219,80 +219,49 @@ func (e *evaluator) expandDynamicBlock(b *terraform.Block) {
 		e.expandDynamicBlock(sub)
 	}
 	for _, sub := range b.AllBlocks().OfType("dynamic") {
+		if sub.IsExpanded() {
+			continue
+		}
 		blockName := sub.TypeLabel()
-		expanded := e.expandBlockForEaches(terraform.Blocks{sub})
+		expanded := e.expandBlockForEaches(terraform.Blocks{sub}, true)
 		for _, ex := range expanded {
 			if content := ex.GetBlock("content"); content.IsNotNil() {
 				_ = e.expandDynamicBlocks(content)
 				b.InjectBlock(content, blockName)
 			}
 		}
+		sub.MarkExpanded()
 	}
 }
 
-func validateForEachArg(arg cty.Value) error {
-	if arg.IsNull() {
-		return errors.New("arg is null")
-	}
-
-	ty := arg.Type()
-
-	if !arg.IsKnown() || ty.Equals(cty.DynamicPseudoType) || arg.LengthInt() == 0 {
-		return nil
-	}
-
-	if !(ty.IsSetType() || ty.IsObjectType() || ty.IsMapType()) {
-		return fmt.Errorf("%s type is not supported: arg is not set or map", ty.FriendlyName())
-	}
-
-	if ty.IsSetType() {
-		if !ty.ElementType().Equals(cty.String) {
-			return errors.New("arg is not set of strings")
-		}
-
-		it := arg.ElementIterator()
-		for it.Next() {
-			key, _ := it.Element()
-			if key.IsNull() {
-				return errors.New("arg is set of strings, but contains null")
-			}
-
-			if !key.IsKnown() {
-				return errors.New("arg is set of strings, but contains unknown value")
-			}
-		}
-	}
-
-	return nil
-}
-
 func isBlockSupportsForEachMetaArgument(block *terraform.Block) bool {
 	return slices.Contains([]string{"module", "resource", "data", "dynamic"}, block.Type())
 }
 
-func (e *evaluator) expandBlockForEaches(blocks terraform.Blocks) terraform.Blocks {
+func (e *evaluator) expandBlockForEaches(blocks terraform.Blocks, isDynamic bool) terraform.Blocks {
 	var forEachFiltered terraform.Blocks
 
 	for _, block := range blocks {
 
 		forEachAttr := block.GetAttribute("for_each")
 
-		if forEachAttr.IsNil() || block.IsCountExpanded() || !isBlockSupportsForEachMetaArgument(block) {
+		if forEachAttr.IsNil() || block.IsExpanded() || !isBlockSupportsForEachMetaArgument(block) {
 			forEachFiltered = append(forEachFiltered, block)
 			continue
 		}
 
 		forEachVal := forEachAttr.Value()
 
-		if err := validateForEachArg(forEachVal); err != nil {
-			e.debug.Log(`"for_each" argument is invalid: %s`, err.Error())
+		if forEachVal.IsNull() || !forEachVal.IsKnown() || !forEachAttr.IsIterable() {
 			continue
 		}
 
 		clones := make(map[string]cty.Value)
 		_ = forEachAttr.Each(func(key cty.Value, val cty.Value) {
 
-			if !key.Type().Equals(cty.String) {
+			// instances are identified by a map key (or set member) from the value provided to for_each
+			idx, err := convert.Convert(key, cty.String)
+			if err != nil {
 				e.debug.Log(
 					`Invalid "for-each" argument: map key (or set value) is not a string, but %s`,
 					key.Type().FriendlyName(),
@@ -300,22 +269,34 @@ func (e *evaluator) expandBlockForEaches(blocks terraform.Blocks) terraform.Bloc
 				return
 			}
 
-			clone := block.Clone(key)
+			// if the argument is a collection but not a map, then the resource identifier
+			// is the value of the collection. The exception is the use of for-each inside a dynamic block,
+			// because in this case the collection element may not be a primitive value.
+			if (forEachVal.Type().IsCollectionType() || forEachVal.Type().IsTupleType()) &&
+				!forEachVal.Type().IsMapType() && !isDynamic {
+				stringVal, err := convert.Convert(val, cty.String)
+				if err != nil {
+					e.debug.Log("Failed to convert for-each arg %v to string", val)
+					return
+				}
+				idx = stringVal
+			}
+
+			clone := block.Clone(idx)
 
 			ctx := clone.Context()
 
 			e.copyVariables(block, clone)
 
-			ctx.SetByDot(key, "each.key")
+			ctx.SetByDot(idx, "each.key")
 			ctx.SetByDot(val, "each.value")
-
-			ctx.Set(key, block.TypeLabel(), "key")
+			ctx.Set(idx, block.TypeLabel(), "key")
 			ctx.Set(val, block.TypeLabel(), "value")
 
 			forEachFiltered = append(forEachFiltered, clone)
 
 			values := clone.Values()
-			clones[key.AsString()] = values
+			clones[idx.AsString()] = values
 			e.ctx.SetByDot(values, clone.GetMetadata().Reference())
 		})
 
@@ -341,7 +322,7 @@ func (e *evaluator) expandBlockCounts(blocks terraform.Blocks) terraform.Blocks
 	var countFiltered terraform.Blocks
 	for _, block := range blocks {
 		countAttr := block.GetAttribute("count")
-		if countAttr.IsNil() || block.IsCountExpanded() || !isBlockSupportsCountMetaArgument(block) {
+		if countAttr.IsNil() || block.IsExpanded() || !isBlockSupportsCountMetaArgument(block) {
 			countFiltered = append(countFiltered, block)
 			continue
 		}
diff --git a/pkg/iac/scanners/terraform/parser/evaluator_test.go b/pkg/iac/scanners/terraform/parser/evaluator_test.go
deleted file mode 100644
index 8d3ef7b0f6e0..000000000000
--- a/pkg/iac/scanners/terraform/parser/evaluator_test.go
+++ /dev/null
@@ -1,94 +0,0 @@
-package parser
-
-import (
-	"testing"
-
-	"github.com/stretchr/testify/assert"
-	"github.com/zclconf/go-cty/cty"
-)
-
-func TestValidateForEachArg(t *testing.T) {
-	tests := []struct {
-		name          string
-		arg           cty.Value
-		expectedError string
-	}{
-		{
-			name: "empty set",
-			arg:  cty.SetValEmpty(cty.String),
-		},
-		{
-			name: "set of strings",
-			arg:  cty.SetVal([]cty.Value{cty.StringVal("val1"), cty.StringVal("val2")}),
-		},
-		{
-			name:          "set of non-strings",
-			arg:           cty.SetVal([]cty.Value{cty.NumberIntVal(1), cty.NumberIntVal(2)}),
-			expectedError: "is not set of strings",
-		},
-		{
-			name:          "set with null",
-			arg:           cty.SetVal([]cty.Value{cty.StringVal("val1"), cty.NullVal(cty.String)}),
-			expectedError: "arg is set of strings, but contains null",
-		},
-		{
-			name:          "set with unknown",
-			arg:           cty.SetVal([]cty.Value{cty.StringVal("val1"), cty.UnknownVal(cty.String)}),
-			expectedError: "arg is set of strings, but contains unknown",
-		},
-		{
-			name:          "set with unknown",
-			arg:           cty.SetVal([]cty.Value{cty.StringVal("val1"), cty.UnknownVal(cty.String)}),
-			expectedError: "arg is set of strings, but contains unknown",
-		},
-		{
-			name: "non empty map",
-			arg: cty.MapVal(map[string]cty.Value{
-				"val1": cty.StringVal("..."),
-				"val2": cty.StringVal("..."),
-			}),
-		},
-		{
-			name: "map with unknown",
-			arg: cty.MapVal(map[string]cty.Value{
-				"val1": cty.UnknownVal(cty.String),
-				"val2": cty.StringVal("..."),
-			}),
-		},
-		{
-			name: "empty obj",
-			arg:  cty.EmptyObjectVal,
-		},
-		{
-			name: "obj with strings",
-			arg: cty.ObjectVal(map[string]cty.Value{
-				"val1": cty.StringVal("..."),
-				"val2": cty.StringVal("..."),
-			}),
-		},
-		{
-			name:          "null",
-			arg:           cty.NullVal(cty.Set(cty.String)),
-			expectedError: "arg is null",
-		},
-		{
-			name: "unknown",
-			arg:  cty.UnknownVal(cty.Set(cty.String)),
-		},
-		{
-			name: "dynamic",
-			arg:  cty.DynamicVal,
-		},
-	}
-
-	for _, tt := range tests {
-		t.Run(tt.name, func(t *testing.T) {
-			err := validateForEachArg(tt.arg)
-			if tt.expectedError != "" && err != nil {
-				assert.ErrorContains(t, err, tt.expectedError)
-				return
-			}
-			assert.NoError(t, err)
-		})
-	}
-}
diff --git a/pkg/iac/scanners/terraform/parser/parser_test.go b/pkg/iac/scanners/terraform/parser/parser_test.go
index 926d9e56603d..c8c6d727c112 100644
--- a/pkg/iac/scanners/terraform/parser/parser_test.go
+++ b/pkg/iac/scanners/terraform/parser/parser_test.go
@@ -8,6 +8,7 @@ import (
 
 	"github.com/aquasecurity/trivy/internal/testutil"
 	"github.com/aquasecurity/trivy/pkg/iac/scanners/options"
+	"github.com/aquasecurity/trivy/pkg/iac/terraform"
 	"github.com/stretchr/testify/assert"
 	"github.com/stretchr/testify/require"
 	"github.com/zclconf/go-cty/cty"
@@ -904,6 +905,91 @@ data "http" "example" {
 }
 
 func TestForEach(t *testing.T) {
+	tests := []struct {
+		name               string
+		src                string
+		expectedBucketName string
+		expectedNameLabel  string
+	}{
+		{
+			name: "arg is set and ref to each.key",
+			src: `locals {
+	buckets = ["bucket1"]
+}
+
+resource "aws_s3_bucket" "this" {
+	for_each = toset(local.buckets)
+	bucket = each.key
+}`,
+			expectedBucketName: "bucket1",
+			expectedNameLabel:  `this["bucket1"]`,
+		},
+		{
+			name: "arg is set and ref to each.value",
+			src: `locals {
+	buckets = ["bucket1"]
+}
+
+resource "aws_s3_bucket" "this" {
+	for_each = toset(local.buckets)
+	bucket = each.value
+}`,
+			expectedBucketName: "bucket1",
+			expectedNameLabel:  `this["bucket1"]`,
+		},
+		{
+			name: "arg is map and ref to each.key",
+			src: `locals {
+	buckets = {
+		bucket1key = "bucket1value"
+	}
+}
+
+resource "aws_s3_bucket" "this" {
+	for_each = local.buckets
+	bucket = each.key
+}`,
+			expectedBucketName: "bucket1key",
+			expectedNameLabel:  `this["bucket1key"]`,
+		},
+		{
+			name: "arg is map and ref to each.value",
+			src: `locals {
+	buckets = {
+		bucket1key = "bucket1value"
+	}
+}
+
+resource "aws_s3_bucket" "this" {
+	for_each = local.buckets
+	bucket = each.value
+}`,
+			expectedBucketName: "bucket1value",
+			expectedNameLabel:  `this["bucket1key"]`,
+		},
+	}
+
+	for _, tt := range tests {
+		t.Run(tt.name, func(t *testing.T) {
+			modules := parse(t, map[string]string{
+				"main.tf": tt.src,
+			})
+			require.Len(t, modules, 1)
+
+			buckets := modules.GetResourcesByType("aws_s3_bucket")
+			assert.Len(t, buckets, 1)
+
+			bucket := buckets[0]
+			bucketName := bucket.GetAttribute("bucket").Value().AsString()
+			assert.Equal(t, tt.expectedBucketName, bucketName)
+
+			assert.Equal(t, tt.expectedNameLabel, bucket.NameLabel())
+		})
+	}
+
+}
+
+func TestForEachCountExpanded(t *testing.T) {
 
 	tests := []struct {
 		name          string
@@ -919,6 +1005,18 @@ func TestForEach(t *testing.T) {
 resource "aws_s3_bucket" "this" {
   for_each = local.buckets
   bucket = each.key
+}`,
+			expectedCount: 2,
+		},
+		{
+			name: "arg is empty list",
+			source: `locals {
+  buckets = []
+}
+
+resource "aws_s3_bucket" "this" {
+  for_each = local.buckets
+  bucket   = each.value
 }`,
 			expectedCount: 0,
 		},
@@ -929,8 +1027,34 @@ resource "aws_s3_bucket" "this" {
 }
 
 resource "aws_s3_bucket" "this" {
-  for_each = loca.buckets
+  for_each = local.buckets
+  bucket = each.key
+}`,
+			expectedCount: 0,
+		},
+		{
+			name: "argument set with the same values",
+			source: `locals {
+  buckets = ["true", "true"]
+}
+
+resource "aws_s3_bucket" "this" {
+  for_each = toset(local.buckets)
   bucket = each.key
+}`,
+			expectedCount: 1,
+		},
+		{
+			name: "arg is non-valid set",
+			source: `locals {
+  buckets = [{
+    bucket1key = "bucket1value"
+  }]
+}
+
+resource "aws_s3_bucket" "this" {
+	for_each = toset(local.buckets)
+	bucket = each.value
 }`,
 			expectedCount: 0,
 		},
@@ -961,18 +1085,25 @@ resource "aws_s3_bucket" "this" {
 }`,
 			expectedCount: 2,
 		},
+		{
+			name: "arg is empty map",
+			source: `locals {
+	buckets = {}
+}
+resource "aws_s3_bucket" "this" {
+	for_each = local.buckets
+	bucket   = each.value
+}
+		`,
+			expectedCount: 0,
+		},
 	}
 
 	for _, tt := range tests {
 		t.Run(tt.name, func(t *testing.T) {
-			fs := testutil.CreateFS(t, map[string]string{
+			modules := parse(t, map[string]string{
 				"main.tf": tt.source,
 			})
-			parser := New(fs, "", OptionStopOnHCLError(true))
-			require.NoError(t, parser.ParseFS(context.TODO(), "."))
-
-			modules, _, err := parser.EvaluateAll(context.TODO())
-			assert.NoError(t, err)
 			assert.Len(t, modules, 1)
 
 			bucketBlocks := modules.GetResourcesByType("aws_s3_bucket")
@@ -1139,3 +1270,165 @@ func TestForEachWithObjectsOfDifferentTypes(t *testing.T) {
 	assert.NoError(t, err)
 	assert.Len(t, modules, 1)
 }
+
+func TestDynamicBlocks(t *testing.T) {
+	t.Run("arg is list of int", func(t *testing.T) {
+		modules := parse(t, map[string]string{
+			"main.tf": `
+resource "aws_security_group" "sg-webserver" {
+  vpc_id = "1111"
+  dynamic "ingress" {
+    for_each = [80, 443]
+    content {
+      from_port   = ingress.value
+      to_port     = ingress.value
+      protocol    = "tcp"
+      cidr_blocks = ["0.0.0.0/0"]
+    }
+  }
+}
+`,
+		})
+		require.Len(t, modules, 1)
+
+		secGroups := modules.GetResourcesByType("aws_security_group")
+		assert.Len(t, secGroups, 1)
+		ingressBlocks := secGroups[0].GetBlocks("ingress")
+		assert.Len(t, ingressBlocks, 2)
+
+		var inboundPorts []int
+		for _, ingress := range ingressBlocks {
+			fromPort := ingress.GetAttribute("from_port").AsIntValueOrDefault(-1, ingress).Value()
+			inboundPorts = append(inboundPorts, fromPort)
+		}
+
+		assert.True(t, compareSets([]int{80, 443}, inboundPorts))
+	})
+
+	t.Run("empty for-each", func(t *testing.T) {
+		modules := parse(t, map[string]string{
+			"main.tf": `
+resource "aws_lambda_function" "analyzer" {
+  dynamic "vpc_config" {
+    for_each = []
+    content {}
+  }
+}
+`,
+		})
+		require.Len(t, modules, 1)
+
+		functions := modules.GetResourcesByType("aws_lambda_function")
+		assert.Len(t, functions, 1)
+		vpcConfigs := functions[0].GetBlocks("vpc_config")
+		assert.Empty(t, vpcConfigs)
+	})
+
+	t.Run("arg is list of bool", func(t *testing.T) {
+		modules := parse(t, map[string]string{
+			"main.tf": `
+resource "aws_lambda_function" "analyzer" {
+  dynamic "vpc_config" {
+    for_each = [true]
+    content {}
+  }
+}
+`,
+		})
+		require.Len(t, modules, 1)
+
+		functions := modules.GetResourcesByType("aws_lambda_function")
+		assert.Len(t, functions, 1)
+		vpcConfigs := functions[0].GetBlocks("vpc_config")
+		assert.Len(t, vpcConfigs, 1)
+	})
+
+	t.Run("arg is list of objects", func(t *testing.T) {
+		modules := parse(t, map[string]string{
+			"main.tf": `locals {
+  cluster_network_policy = [{
+    enabled = true
+  }]
+}
+
+resource "google_container_cluster" "primary" {
+  name = "test"
+
+  dynamic "network_policy" {
+    for_each = local.cluster_network_policy
+
+    content {
+      enabled = network_policy.value.enabled
+    }
+  }
+}`,
+		})
+		require.Len(t, modules, 1)
+
+		clusters := modules.GetResourcesByType("google_container_cluster")
+		assert.Len(t, clusters, 1)
+
+		networkPolicies := clusters[0].GetBlocks("network_policy")
+		assert.Len(t, networkPolicies, 1)
+
+		enabled := networkPolicies[0].GetAttribute("enabled")
+		assert.True(t, enabled.Value().True())
+	})
+
+	t.Run("nested dynamic", func(t *testing.T) {
+		modules := parse(t, map[string]string{
+			"main.tf": `
+resource "test_block" "this" {
+  name     = "name"
+  location = "loc"
+  dynamic "env" {
+	for_each = ["1", "2"]
+	content {
+	  dynamic "value_source" {
+		for_each = [true, true]
+		content {}
+	  }
+	}
+  }
+}`,
+		})
+		require.Len(t, modules, 1)
+
+		testResources := modules.GetResourcesByType("test_block")
+		assert.Len(t, testResources, 1)
+		envs := testResources[0].GetBlocks("env")
+		assert.Len(t, envs, 2)
+
+		var sources []*terraform.Block
+		for _, env := range envs {
+			sources = append(sources, env.GetBlocks("value_source")...)
+		}
+		assert.Len(t, sources, 4)
+	})
+}
+
+func parse(t *testing.T, files map[string]string) terraform.Modules {
+	fs := testutil.CreateFS(t, files)
+	parser := New(fs, "", OptionStopOnHCLError(true))
+	require.NoError(t, parser.ParseFS(context.TODO(), "."))
+
+	modules, _, err := parser.EvaluateAll(context.TODO())
+	require.NoError(t, err)
+
+	return modules
+}
+
+func compareSets(a []int, b []int) bool {
+	m := make(map[int]bool)
+	for _, el := range a {
+		m[el] = true
+	}
+
+	for _, el := range b {
+		if !m[el] {
+			return false
+		}
+	}
+
+	return true
+}
diff --git a/pkg/iac/terraform/block.go b/pkg/iac/terraform/block.go
index bfab10bf316c..6807fddd0f7d 100644
--- a/pkg/iac/terraform/block.go
+++ b/pkg/iac/terraform/block.go
@@ -145,11 +145,11 @@ func (b *Block) InjectBlock(block *Block, name string) {
 	b.childBlocks = append(b.childBlocks, block)
 }
 
-func (b *Block) MarkCountExpanded() {
+func (b *Block) MarkExpanded() {
 	b.expanded = true
 }
 
-func (b *Block) IsCountExpanded() bool {
+func (b *Block) IsExpanded() bool {
 	return b.expanded
 }
 
@@ -187,7 +187,7 @@ func (b *Block) Clone(index cty.Value) *Block {
 	}
 	indexVal, _ := gocty.ToCtyValue(index, cty.Number)
 	clone.context.SetByDot(indexVal, "count.index")
-	clone.MarkCountExpanded()
+	clone.MarkExpanded()
 	b.cloneIndex++
 	return clone
 }