This ultimate interview prep guide covers Terraform basics and advanced scenarios, including HCL syntax, Terraform modules, state management, and real-world examples for DevOps engineers in 2025.
Optimized for “Terraform DevOps interview”, this article includes:
- HCL code snippets
- Tips on securing state files
- Links to live job opportunities at www.clouddevopsjobs.com
- A YouTube Short suggestion to boost engagement
Introduction: Why Terraform Is Critical in DevOps Roles in 2025
With multi-cloud environments becoming standard, Terraform remains the most adopted Infrastructure as Code (IaC) tool. Whether you’re applying for a DevOps, SRE, or platform engineering role — Terraform expertise is expected.
This guide contains 30 Terraform interview questions to help you prep confidently in 2025.
Section 1: Terraform Basics
1. What is Terraform?
Terraform is an open-source IaC tool by HashiCorp. It lets you define and provision infrastructure using HCL (HashiCorp Configuration Language) across multiple providers.
2. What are the key components of a Terraform configuration?
- Providers
- Resources
- Variables
- Outputs
- Modules
- State
3. What is a Terraform provider?
Providers are plugins that let Terraform interact with external APIs (AWS, Azure, GCP, Kubernetes, etc.).
hclCopyEditprovider "aws" {
region = "us-west-2"
}
4. How do you define a simple AWS S3 bucket in Terraform?
hCopyEditresource "aws_s3_bucket" "my_bucket" {
bucket = "my-unique-bucket-2025"
acl = "private"
}
5. What is terraform init used for?
Initializes the working directory by downloading provider plugins and preparing backends.
Section 2: Intermediate Terraform Topics
6. What is a Terraform module?
Reusable blocks of Terraform code for DRY (Don’t Repeat Yourself) practices.
hclCopyEditmodule "vpc" {
source = "./modules/vpc"
cidr_block = "10.0.0.0/16"
}
7. Difference between terraform plan and terraform apply?
terraform plan: Shows what changes Terraform will maketerraform apply: Executes those changes
8. How do you pass variables into Terraform?
hclCopyEditvariable "region" {
default = "us-east-1"
}
provider "aws" {
region = var.region
}
Override using terraform.tfvars or CLI args.
9. What is a data source in Terraform?
hclCopyEditdata "aws_ami" "ubuntu" {
most_recent = true
owners = ["099720109477"]
filter {
name = "name"
values = ["ubuntu/images/hvm-ssd/ubuntu-focal*"]
}
}
Data sources fetch read-only data from providers.
10. What is Terraform output and why is it used?
hclCopyEditoutput "bucket_name" {
value = aws_s3_bucket.my_bucket.id
}
Outputs expose infrastructure values to users or other configurations.
Section 3: Terraform State and Backend Management
11. What is the Terraform state file?terraform.tfstate tracks current infrastructure state for change detection.
12. How do you manage Terraform state securely?
- Use remote backends (e.g., S3 + DynamoDB lock)
- Enable encryption & versioning
- Use role-based access control (RBAC)
13. What is a backend in Terraform?
Controls how state is loaded/stored. Examples:
local(default)s3,gcs,azurerm,remote, etc.
14. Example: Configuring S3 remote backend with locking
hclCopyEditterraform {
backend "s3" {
bucket = "my-tf-state"
key = "prod/terraform.tfstate"
region = "us-west-2"
dynamodb_table = "tf-locks"
encrypt = true
}
}
15. What happens if two users run Terraform at the same time?
Without backend locking (e.g., DynamoDB), state corruption may occur.
Section 4: Terraform CLI & Workflows
16. Difference between terraform destroy and terraform taint?
destroy: Deletes all resourcestaint: Marks a specific resource for recreation
bashCopyEditterraform taint aws_instance.my_vm
17. How do you import existing infrastructure into Terraform?
bashCopyEditterraform import aws_instance.my_vm i-0123456789abcdef0
18. What is terraform validate used for?
Checks syntax and configuration structure.
19. What does terraform fmt do?
Formats .tf files to canonical HCL style.
20. How do you use workspaces in Terraform?
bashCopyEditterraform workspace new staging
terraform workspace select prod
Use workspaces to manage multiple environments.
Section 5: Advanced Terraform + Real-World Scenarios
21. How do you handle secrets in Terraform?
- Never hardcode secrets
- Use environment variables
- Integrate with Vault, AWS Secrets Manager, or Azure Key Vault
22. Terraform Cloud vs Terraform Enterprise
Provides:
- Remote state
- Team collaboration
- Policy enforcement (Sentinel)
- Secure execution environments
23. What are dynamic blocks in Terraform?
hclCopyEditdynamic "tag" {
for_each = var.tags
content {
key = tag.key
value = tag.value
}
}
Used for conditional logic in resources/attributes.
24. What is Sentinel?
A policy-as-code framework for compliance in Terraform Cloud/Enterprise.
25. Terraform vs CloudFormation
| Feature | Terraform | CloudFormation |
|---|---|---|
| Multi-Cloud | ✅ Yes | ❌ AWS-only |
| Language | HCL | JSON/YAML |
| Community | Open-source | AWS-focused |
| Testing | 3rd-party tools | Limited support |
Section 6: Scenario-Based Terraform Interview Questions
26. How would you build a reusable VPC module?
- Create
main.tf,variables.tf,outputs.tf - Parameterize region, CIDRs, subnets
- Use
moduleblock to reuse in environments
27. You manually deleted a resource. What happens?
Terraform will detect it on plan and may recreate it unless removed from code.
28. How do you handle multiple cloud providers?
hclCopyEditprovider "aws" {
region = "us-east-1"
}
provider "google" {
project = "my-gcp-project"
}
Use alias for multiple accounts.
29. How do you test Terraform modules?
terraform validateterraform planwith test vars- Use Terratest, Kitchen-Terraform, GitHub Actions for CI
30. Best Practices for Terraform
- Use modules and version control
- Secure state files
- Lock versions of providers/modules
- Use
terraform-docs - Apply RBAC with least privilege
YouTube Short Suggestion
Embed:
“Intro to Terraform in 60 Seconds”
A short video explaining providers, resources, and HCL basics to boost engagement and SEO.
Bonus Download: AWS S3 + Remote Backend Template
Grab a ready-made .tf config with:
- Encrypted S3 bucket
- Remote backend with locking
- Tags, versioning, and outputs
Download: clouddevopsjobs.com/resources
Find Terraform DevOps Jobs
Explore active roles like:
- Terraform DevOps Engineer
- Infrastructure as Code Specialist
- AWS Platform Engineer
- Multi-Cloud Automation Architect
Apply now: www.clouddevopsjobs.com
Final Thoughts
If you’re prepping for a Terraform interview, this guide helps you showcase:
- Real-world IaC experience
- Mastery of HCL and modules
- Secure and scalable infrastructure management
Share this guide on X/Twitter with #Terraform #DevOpsInterview #IaC2025
Recommend to your team as a prep checklist or onboarding resource.



