diff --git a/pkg/iac/scanners/terraform/parser/evaluator.go b/pkg/iac/scanners/terraform/parser/evaluator.go
index 1fe9a72fdcac..0185d3fb62a8 100644
--- a/pkg/iac/scanners/terraform/parser/evaluator.go
+++ b/pkg/iac/scanners/terraform/parser/evaluator.go
@@ -54,6 +54,7 @@ func newEvaluator(
 	logger debug.Logger,
 	allowDownloads bool,
 	skipCachedModules bool,
+	moduleVariables cty.Value,
 ) *evaluator {
 
 	// create a context to store variables and make functions available
@@ -61,6 +62,8 @@ func newEvaluator(
 		Functions: Functions(target, modulePath),
 	}, nil)
 
+	ctx.Set(moduleVariables, "module")
+
 	// these variables are made available by terraform to each module
 	ctx.SetByDot(cty.StringVal(workspace), "terraform.workspace")
 	ctx.SetByDot(cty.StringVal(projectRootPath), "path.root")
@@ -156,8 +159,15 @@ func (e *evaluator) EvaluateAll(ctx context.Context) (terraform.Modules, map[str
 	parseDuration += time.Since(start)
 
 	e.debug.Log("Starting submodule evaluation...")
+
+	moduleDefinitions, err := sortModuleDefinitions(e.loadModules(ctx))
+	if err != nil {
+		e.debug.Log("Modules have a cyclic dependency, so some `count`, `for_each` and `dynamic` expressions may not be evaluated.")
+	}
+
 	var modules terraform.Modules
-	for _, definition := range e.loadModules(ctx) {
+	for _, definition := range moduleDefinitions {
+		definition.Parser.moduleVariables = e.ctx.Get("module")
 		submodules, outputs, err := definition.Parser.EvaluateAll(ctx)
 		if err != nil {
 			e.debug.Log("Failed to evaluate submodule '%s': %s.", definition.Name, err)
diff --git a/pkg/iac/scanners/terraform/parser/load_module.go b/pkg/iac/scanners/terraform/parser/load_module.go
index 461d7a7a1a56..f4d2101e47f1 100644
--- a/pkg/iac/scanners/terraform/parser/load_module.go
+++ b/pkg/iac/scanners/terraform/parser/load_module.go
@@ -2,11 +2,13 @@ package parser
 
 import (
 	"context"
+	"errors"
 	"fmt"
 	"io/fs"
 	"path"
 	"strings"
 
+	"github.com/samber/lo"
 	"github.com/zclconf/go-cty/cty"
 
 	"github.com/aquasecurity/trivy/pkg/iac/scanners/terraform/parser/resolvers"
@@ -153,3 +155,104 @@ func (e *evaluator) loadExternalModule(ctx context.Context, b *terraform.Block,
 		External:   true,
 	}, nil
 }
+
+func sortModuleDefinitions(modules []*ModuleDefinition) ([]*ModuleDefinition, error) {
+	graph := buildModuleDefinitionsGraph(modules)
+
+	if graph.hasCycle() {
+		return modules, errors.New("graph is cyclical")
+	}
+
+	sortedDefNames := graph.sort()
+
+	defsMap := lo.SliceToMap(modules, func(definition *ModuleDefinition) (string, *ModuleDefinition) {
+		return definition.Name, definition
+	})
+
+	return lo.FilterMap(sortedDefNames, func(defName string, _ int) (*ModuleDefinition, bool) {
+		val, exists := defsMap[defName]
+		return val, exists
+	}), nil
+}
+
+type moduleDefinitionsGraph map[string][]string
+
+func buildModuleDefinitionsGraph(modules []*ModuleDefinition) moduleDefinitionsGraph {
+	graph := lo.SliceToMap(modules, func(definition *ModuleDefinition) (string, []string) {
+		return definition.Name, nil
+	})
+
+	for _, def := range modules {
+		for _, ref := range def.Definition.AllReferences() {
+			if ref.BlockType() != terraform.TypeModule {
+				continue
+			}
+
+			referencedModule := ref.TypeLabel()
+			if referencedModule != "" {
+				graph[def.Name] = append(graph[def.Name], referencedModule)
+			}
+		}
+	}
+
+	return graph
+}
+
+func (g moduleDefinitionsGraph) hasCycle() bool {
+	visited := make(map[string]bool)
+	recStack := make(map[string]bool)
+
+	var dfs func(string) bool
+	dfs = func(node string) bool {
+		visited[node] = true
+		recStack[node] = true
+
+		for _, neighbor := range g[node] {
+			if visited[neighbor] && recStack[neighbor] {
+				return true
+			}
+			if !visited[neighbor] && dfs(neighbor) {
+				return true
+			}
+		}
+
+		recStack[node] = false
+		return false
+	}
+
+	for node := range g {
+		if dfs(node) {
+			return true
+		}
+	}
+
+	return false
+}
+
+func (g moduleDefinitionsGraph) sort() []string {
+	var (
+		visited = make(map[string]bool)
+		stack   = make([]string, 0, len(g))
+		dfs     func(n string)
+	)
+
+	dfs = func(n string) {
+		if visited[n] {
+			return
+		}
+
+		visited[n] = true
+
+		for _, neighbor := range g[n] {
+			dfs(neighbor)
+		}
+
+		stack = append(stack, n)
+	}
+
+	for node := range g {
+		dfs(node)
+	}
+
+	return stack
+}
diff --git a/pkg/iac/scanners/terraform/parser/parser.go b/pkg/iac/scanners/terraform/parser/parser.go
index e09e9e621ef4..95a5245e2eea 100644
--- a/pkg/iac/scanners/terraform/parser/parser.go
+++ b/pkg/iac/scanners/terraform/parser/parser.go
@@ -64,6 +64,7 @@ type Parser struct {
 	fsMap             map[string]fs.FS
 	skipRequired      bool
 	configsFS         fs.FS
+	moduleVariables   cty.Value
 }
 
 func (p *Parser) SetDebugWriter(writer io.Writer) {
@@ -310,6 +311,7 @@ func (p *Parser) EvaluateAll(ctx context.Context) (terraform.Modules, cty.Value,
 		p.debug.Extend("evaluator"),
 		p.allowDownloads,
 		p.skipCachedModules,
+		p.moduleVariables,
 	)
 	modules, fsMap, parseDuration := evaluator.EvaluateAll(ctx)
 	p.metrics.Counts.Modules = len(modules)
diff --git a/pkg/iac/scanners/terraform/parser/parser_test.go b/pkg/iac/scanners/terraform/parser/parser_test.go
index 12594841251b..bce91d21522f 100644
--- a/pkg/iac/scanners/terraform/parser/parser_test.go
+++ b/pkg/iac/scanners/terraform/parser/parser_test.go
@@ -1497,6 +1497,76 @@ resource "test_block" "this" {
 	})
 }
 
+func TestModuleRefersToOutputOfAnotherModule(t *testing.T) {
+	files := map[string]string{
+		"main.tf": `
+module "module2" {
+	source = "./modules/foo"
+}
+
+module "module1" {
+	source = "./modules/bar"
+	test_var = module.module2.test_out
+}
+`,
+		"modules/foo/main.tf": `
+output "test_out" {
+	value = "test_value"
+}
+`,
+		"modules/bar/main.tf": `
+variable "test_var" {}
+
+resource "test_resource" "this" {
+	dynamic "dynamic_block" {
+		for_each = [var.test_var]
+		content {
+			some_attr = dynamic_block.value
+		}
+	}
+}
+`,
+	}
+
+	modules := parse(t, files)
+	require.Len(t, modules, 3)
+
+	resources := modules.GetResourcesByType("test_resource")
+	require.Len(t, resources, 1)
+
+	attr, _ := resources[0].GetNestedAttribute("dynamic_block.some_attr")
+	require.NotNil(t, attr)
+
+	assert.Equal(t, "test_value", attr.GetRawValue())
+}
+
+func TestModuleRefersToModuleThatDoesNotExist(t *testing.T) {
+	files := map[string]string{
+		"main.tf": `
+module "module2" {
+	source = "./modules/foo"
+}
+
+module "module1" {
+	source = "./modules/bar"
+	test_var = module.module22.test_out
+}
+`,
+		"modules/foo/main.tf": `
+output "test_out" {
+	value = "test_value"
+}
+`,
+		"modules/bar/main.tf": `
+variable "test_var" {}
+
+resource "test_resource" "this" {}
+`,
+	}
+
+	parse(t, files)
+}
+
 func parse(t *testing.T, files map[string]string) terraform.Modules {
 	fs := testutil.CreateFS(t, files)
 	parser := New(fs, "", OptionStopOnHCLError(true))
diff --git a/pkg/iac/terraform/block.go b/pkg/iac/terraform/block.go
index 6807fddd0f7d..8c1c43842fb2 100644
--- a/pkg/iac/terraform/block.go
+++ b/pkg/iac/terraform/block.go
@@ -31,6 +31,15 @@ type Block struct {
 	reference    Reference
 }
 
+func (b Block) AllReferences() []*Reference {
+	var references []*Reference
+	for _, attr := range b.attributes {
+		references = append(references, attr.AllReferences()...)
+	}
+
+	return references
+}
+
 func NewBlock(hclBlock *hcl.Block, ctx *context.Context, moduleBlock *Block, parentBlock *Block, moduleSource string,
 	moduleFS fs.FS, index ...cty.Value) *Block {
 	if ctx == nil {