Skip to main content
Terragrunt enhances Terraform by introducing a hierarchical project layout and workflow automation. This structured approach helps you manage complexity, centralize state, eliminate duplication, and maintain consistency across environments—all while fostering better team collaboration.

​
At a Glance

ChallengeImpactTerragrunt Feature
Configuration ComplexityHard to scale and navigate large configsModular folder structure & nesting
Remote State ManagementState drift and conflictsAutomated backend configuration (S3/Azure/GCS)
Code DuplicationMaintenance overheadDRY inheritance with include & dependency
Environment ConsistencyDrift between dev/staging/prodEnvironment-specific folder layouts
Collaboration & VersioningMerge conflicts & upgrade challengesIsolated workflows & semantic versioning support

​
1. Configuration Complexity

As Terraform codebases grow, navigating dozens of .tf files and interdependent modules becomes challenging. Terragrunt enforces a clear directory hierarchy: 
infrastructure/
├─ live/
│  ├─ dev/
│  │  └─ terragrunt.hcl
│  ├─ staging/
│  │  └─ terragrunt.hcl
│  └─ prod/
│     └─ terragrunt.hcl
└─ modules/
   ├─ vpc/
   │  └─ main.tf
   └─ app/
      └─ main.tf
This layout makes it easy to locate code, define dependencies, and scale as your team grows.

​
2. Remote State Management

Managing Terraform state across multiple environments and engineers introduces risk of state drift. Terragrunt automates backend setup in your terragrunt.hcl: 
remote_state {
  backend = "s3"
  config = {
    bucket = "my-terraform-state"
    key    = "${path_relative_to_include()}/terraform.tfstate"
    region = "us-east-1"
  }
}
With a centralized and versioned state, everyone works from the same source of truth.

​
3. Code Duplication

Repeating provider, backend, and variable definitions for each environment leads to errors and maintenance pain. Terragrunt’s DRY approach allows you to share common configuration: 
# live/common.hcl
include {
  path = find_in_parent_folders()
}

inputs = {
  project = "my-app"
}
Then inherit in each environment: 
# live/dev/terragrunt.hcl
include { path = "../common.hcl" }
inputs = { environment = "dev" }
Use dependency blocks to pass outputs between modules, further reducing repetition.

​
4. Environment Consistency

Differences between dev, staging, and prod can cause unexpected behavior. By defining environment-specific variables and settings in separate folders, Terragrunt ensures each stage uses the intended configuration: 
live/
└─ prod/
   └─ terragrunt.hcl  # Overrides common inputs with production values

​
5. Collaboration and Versioning

Multiple engineers working on the same Terraform code can collide on merges or apply the wrong versions of modules. Terragrunt addresses this by:
  • Isolated apply/plan contexts per environment
  • Support for semantic versioning of modules
  • Encouraging small, incremental changes
This leads to safer upgrades and clearer audit trails.
The image lists five problems that Terragrunt solves: configuration complexity, state management challenges, code duplication, consistency across platforms, and collaboration and versioning.

​
References

Watch Video