diff --git a/pkgs/misc/vscode-extensions/terraform/default.nix b/pkgs/misc/vscode-extensions/terraform/default.nix
index 44e2bdb1005c..90ea121850d2 100644
--- a/pkgs/misc/vscode-extensions/terraform/default.nix
+++ b/pkgs/misc/vscode-extensions/terraform/default.nix
@@ -3,13 +3,13 @@ vscode-utils.buildVscodeMarketplaceExtension rec {
   mktplcRef = {
     name = "terraform";
     publisher = "hashicorp";
-    version = "2.11.0";
+    version = "2.12.0";
   };
 
   vsix = fetchurl {
     name = "${mktplcRef.publisher}-${mktplcRef.name}.zip";
     url = "https://github.com/hashicorp/vscode-terraform/releases/download/v${mktplcRef.version}/${mktplcRef.name}-${mktplcRef.version}.vsix";
-    sha256 = "0wqdya353b415qxs8jczmis3q6d8fddv1pdd8jdd0w64s1ibv3sy";
+    sha256 = "1r12yxpf0wlh7vdxpj04356zlgxmlwz9apdlxnv5ay056a2a8k3a";
   };
 
   patches = [ ./fix-terraform-ls.patch ];