diff --git a/.circleci/config.yml b/.circleci/config.yml
index e3778ecf6a..9dd997cdf0 100644
--- a/.circleci/config.yml
+++ b/.circleci/config.yml
@@ -16,7 +16,7 @@ jobs:
         # We do this instead of setting --default-tf-version because setting
         # that flag starts the download asynchronously so we'd have a race
         # condition.
-        TERRAFORM_VERSION: 1.0.5
+        TERRAFORM_VERSION: 1.0.6
     steps:
     - checkout
     - run: make build-service
diff --git a/Dockerfile b/Dockerfile
index 35fe3cf006..0d161ed2a1 100644
--- a/Dockerfile
+++ b/Dockerfile
@@ -2,7 +2,7 @@
 FROM ghcr.io/runatlantis/atlantis-base:2021.06.22
 
 # install terraform binaries
-ENV DEFAULT_TERRAFORM_VERSION=1.0.5
+ENV DEFAULT_TERRAFORM_VERSION=1.0.6
 
 # In the official Atlantis image we only have the latest of each Terraform version.
 RUN AVAILABLE_TERRAFORM_VERSIONS="0.8.8 0.9.11 0.10.8 0.11.15 0.12.31 0.13.7 0.14.11 0.15.5 ${DEFAULT_TERRAFORM_VERSION}" && \
diff --git a/testing/Dockerfile b/testing/Dockerfile
index aacf341032..2dfdd21d30 100644
--- a/testing/Dockerfile
+++ b/testing/Dockerfile
@@ -5,7 +5,7 @@
 FROM circleci/golang:1.17
 
 # Install Terraform
-ENV TERRAFORM_VERSION=1.0.5
+ENV TERRAFORM_VERSION=1.0.6
 RUN curl -LOks https://releases.hashicorp.com/terraform/${TERRAFORM_VERSION}/terraform_${TERRAFORM_VERSION}_linux_amd64.zip && \
     sudo mkdir -p /usr/local/bin/tf/versions/${TERRAFORM_VERSION} && \
     sudo unzip terraform_${TERRAFORM_VERSION}_linux_amd64.zip -d /usr/local/bin/tf/versions/${TERRAFORM_VERSION} && \