diff --git a/pkg/iac/terraform/resource_block.go b/pkg/iac/terraform/resource_block.go
index 339843423112..abce0fcb040e 100644
--- a/pkg/iac/terraform/resource_block.go
+++ b/pkg/iac/terraform/resource_block.go
@@ -3,7 +3,6 @@ package terraform
 import (
 	"bytes"
 	"fmt"
-	"regexp"
 	"strings"
 	"text/template"
 )
@@ -106,19 +105,14 @@ func renderPrimitive(val any) string {
 func parseStringPrimitive(input string) string {
 	// we must escape templating
 	// ref: https://developer.hashicorp.com/terraform/language/expressions/strings#escape-sequences-1
-	r := regexp.MustCompile(`((\$|\%)\{.+\})`)
-	ff := r.ReplaceAllStringFunc(input, func(s string) string {
-		s = strings.Replace(s, "$", "$$", 1)
-		s = strings.Replace(s, "%", "%%", 1)
-		return s
-	})
-	if strings.Contains(ff, "\n") {
+	input = escapeSpecialSequences(input)
+	if strings.Contains(input, "\n") {
 		return fmt.Sprintf(`<<EOF
 		%s
 		EOF
-		`, ff)
+		`, input)
 	}
-	return fmt.Sprintf("%q", ff)
+	return fmt.Sprintf("%q", input)
 }
 
 func isMapSlice(vars []any) bool {
@@ -171,3 +165,29 @@ func renderMap(val map[string]any) string {
 	result = fmt.Sprintf("%s}", result)
 	return result
 }
+
+func escapeSpecialSequences(input string) string {
+	var sb strings.Builder
+	sb.Grow(len(input))
+	for i, r := range input {
+		if r == '$' || r == '%' {
+			sb.WriteRune(r)
+			remain := input[i+1:]
+
+			// it's not a special sequence
+			if remain == "" || remain[0] != '{' {
+				continue
+			}
+
+			// sequence is already escaped
+			if i > 0 && rune(input[i-1]) == r {
+				continue
+			}
+
+			sb.WriteRune(r)
+		} else {
+			sb.WriteRune(r)
+		}
+	}
+	return sb.String()
+}
diff --git a/pkg/iac/terraform/resource_block_test.go b/pkg/iac/terraform/resource_block_test.go
new file mode 100644
index 000000000000..37fb1d32fdcb
--- /dev/null
+++ b/pkg/iac/terraform/resource_block_test.go
@@ -0,0 +1,62 @@
+package terraform
+
+import (
+	"testing"
+
+	"github.com/hashicorp/hcl/v2"
+	"github.com/hashicorp/hcl/v2/hclsyntax"
+	"github.com/stretchr/testify/assert"
+	"github.com/stretchr/testify/require"
+)
+
+func Test_EscapeSpecialSequences(t *testing.T) {
+	tests := []struct {
+		name     string
+		inp      string
+		expected string
+	}{
+		{
+			name:     "without special sequences",
+			inp:      `"hello world\\"`,
+			expected: `"hello world\\"`,
+		},
+		{
+			name:     "interpolation",
+			inp:      `"Hello, ${var.name}!"`,
+			expected: `"Hello, $${var.name}!"`,
+		},
+		{
+			name:     "directive",
+			inp:      `"Hello, %{ if true }foo%{ else }bar%{ endif }!"`,
+			expected: `"Hello, %%{ if true }foo%%{ else }bar%%{ endif }!"`,
+		},
+		{
+			name:     "interpolation already escaped",
+			inp:      `"Hello, $${var.name}!"`,
+			expected: `"Hello, $${var.name}!"`,
+		},
+		{
+			name:     "start with special character",
+			inp:      `${var.name}!"`,
+			expected: `$${var.name}!"`,
+		},
+		{
+			name:     "grok pattern",
+			inp:      "# Grok Pattern Template\ngrok_pattern = \"%{TIMESTAMP_ISO8601:time} \\\\[%{NUMBER:pid}\\\\] %{GREEDYDATA:message}\"",
+			expected: "# Grok Pattern Template\ngrok_pattern = \"%%{TIMESTAMP_ISO8601:time} \\\\[%%{NUMBER:pid}\\\\] %%{GREEDYDATA:message}\"",
+		},
+	}
+
+	for _, tt := range tests {
+		t.Run(tt.name, func(t *testing.T) {
+			got := escapeSpecialSequences(tt.inp)
+			assert.Equal(t, tt.expected, got)
+
+			// We make sure that the characters are properly escaped
+			_, diag := hclsyntax.ParseTemplate([]byte(got), "", hcl.InitialPos)
+			if diag.HasErrors() {
+				require.NoError(t, diag)
+			}
+		})
+	}
+}