diff --git a/pkgs/misc/vscode-extensions/terraform/default.nix b/pkgs/misc/vscode-extensions/terraform/default.nix
index 39dd6f90b80a..edde0d945d03 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 = "2.7.0";
+    version = "2.8.0";
   };
 
   vsix = fetchurl {
     name = "${mktplcRef.publisher}-${mktplcRef.name}.zip";
     url = "https://github.com/hashicorp/vscode-terraform/releases/download/v${mktplcRef.version}/terraform-${mktplcRef.version}.vsix";
-    sha256 = "0lpsng7rd88ppjybmypzw42czr6swwin5cyl78v36z3wjwqx26xp";
+    sha256 = "1ns40xaswqhngprlpf3ck59mj3kcxngr4jk0wkf16j3cvvskn0yy";
   };
 
   patches = [ ./fix-terraform-ls.patch ];