diff --git a/examples/terraform/.test.sh b/examples/terraform/.test.sh
index 73726b66d..699b88b6a 100755
--- a/examples/terraform/.test.sh
+++ b/examples/terraform/.test.sh
@@ -1,3 +1,3 @@
 #!/usr/bin/env bash
 set -ex
-terraform --version | grep "1.5.6"
+terraform --version | grep "1.8.4"
diff --git a/examples/terraform/devenv.nix b/examples/terraform/devenv.nix
index 5789790c5..be7acf2d3 100644
--- a/examples/terraform/devenv.nix
+++ b/examples/terraform/devenv.nix
@@ -1,11 +1,8 @@
 { pkgs, ... }:
 
 {
-  # For versions >= 1.6.0 open a shell by running the following command:
-  #
-  # env NIXPKGS_ALLOW_UNFREE=1 devenv --impure shell
   languages.terraform = {
     enable = true;
-    version = "1.5.6";
+    version = "1.8.4";
   };
 }
diff --git a/templates/terraform/.envrc b/templates/terraform/.envrc
index b351dff3d..ac18306bf 100644
--- a/templates/terraform/.envrc
+++ b/templates/terraform/.envrc
@@ -2,9 +2,8 @@ if ! has nix_direnv_version || ! nix_direnv_version 2.2.1; then
   source_url "https://raw.githubusercontent.com/nix-community/nix-direnv/2.2.1/direnvrc" "sha256-zelF0vLbEl5uaqrfIzbgNzJWGmLzCmYAkInj/LNxvKs="
 fi
 
-nix_direnv_watch_file devenv.nix
-nix_direnv_watch_file devenv.lock
-nix_direnv_watch_file devenv.yaml
+nix_direnv_watch_file flake.nix
+nix_direnv_watch_file flake.lock
 if ! use flake . --impure
 then
   echo "devenv could not be built. The devenv environment was not loaded. Make the necessary changes to devenv.nix and hit enter to try again." >&2
diff --git a/templates/terraform/flake.nix b/templates/terraform/flake.nix
index a5c0ed05e..0ee96c84a 100644
--- a/templates/terraform/flake.nix
+++ b/templates/terraform/flake.nix
@@ -1,25 +1,36 @@
 {
   inputs = {
+    devenv.inputs.nixpkgs.follows = "nixpkgs";
     devenv.url = "github:cachix/devenv";
-    flake-utils.url = "github:numtide/flake-utils";
-    nixpkgs.url = "nixpkgs/nixos-23.05";
+    nixpkgs-terraform.url = "github:stackbuilders/nixpkgs-terraform";
+    nixpkgs.url = "github:cachix/devenv-nixpkgs/rolling";
+    systems.url = "github:nix-systems/default";
   };
 
-  outputs = { self, devenv, flake-utils, nixpkgs }@inputs:
-    flake-utils.lib.eachDefaultSystem (system:
-      let
-        pkgs = nixpkgs.legacyPackages.${system};
-      in
-      {
-        devShells.default = devenv.lib.mkShell {
-          inherit inputs pkgs;
-          modules = [{
-            env.AWS_PROFILE = "<profile>";
+  nixConfig = {
+    extra-substituters = "https://devenv.cachix.org https://nixpkgs-terraform.cachix.org";
+    extra-trusted-public-keys = "devenv.cachix.org-1:w1cLUi8dv3hnoSPGAuibQv+f9TZLr6cv/Hm9XgU50cw= nixpkgs-terraform.cachix.org-1:8Sit092rIdAVENA3ZVeH9hzSiqI/jng6JiCrQ1Dmusw=";
+  };
 
-            languages.terraform.enable = true;
+  outputs = { self, devenv, nixpkgs, systems, ... }@inputs:
+    let
+      forEachSystem = nixpkgs.lib.genAttrs (import systems);
+    in
+    {
+      devShells = forEachSystem (system:
+        let
+          pkgs = nixpkgs.legacyPackages.${system};
+        in
+        {
+          default = devenv.lib.mkShell {
+            inherit inputs pkgs;
+            modules = [{
+              languages.terraform.enable = true;
+              languages.terraform.version = "1.8.4";
 
-            pre-commit.hooks.terraform-format.enable = true;
-          }];
-        };
-      });
+              pre-commit.hooks.terraform-format.enable = true;
+            }];
+          };
+        });
+    };
 }