diff --git a/Dockerfile b/Dockerfile
index 311d53ffab..b15ac2b241 100644
--- a/Dockerfile
+++ b/Dockerfile
@@ -5,7 +5,7 @@ ARG DEBIAN_TAG=12.8-slim@sha256:1537a6a1cbc4b4fd401da800ee9480207e7dc1f23560c212
 ARG GOLANG_TAG=1.23.3-alpine@sha256:c694a4d291a13a9f9d94933395673494fc2cc9d4777b85df3a7e70b3492d3574
 
 # renovate: datasource=github-releases depName=hashicorp/terraform versioning=hashicorp
-ARG DEFAULT_TERRAFORM_VERSION=1.9.8
+ARG DEFAULT_TERRAFORM_VERSION=1.10.1
 # renovate: datasource=github-releases depName=opentofu/opentofu versioning=hashicorp
 ARG DEFAULT_OPENTOFU_VERSION=1.8.6
 # renovate: datasource=github-releases depName=open-policy-agent/conftest
diff --git a/testdrive/utils.go b/testdrive/utils.go
index a447e976bb..3f7a5de416 100644
--- a/testdrive/utils.go
+++ b/testdrive/utils.go
@@ -35,7 +35,7 @@ import (
 )
 
 const hashicorpReleasesURL = "https://releases.hashicorp.com"
-const terraformVersion = "1.9.8" // renovate: datasource=github-releases depName=hashicorp/terraform versioning=hashicorp
+const terraformVersion = "1.10.1" // renovate: datasource=github-releases depName=hashicorp/terraform versioning=hashicorp
 const ngrokDownloadURL = "https://bin.equinox.io/c/4VmDzA7iaHb"
 const ngrokAPIURL = "localhost:41414" // We hope this isn't used.
 const atlantisPort = 4141
diff --git a/testing/Dockerfile b/testing/Dockerfile
index 208f19bc88..2504772784 100644
--- a/testing/Dockerfile
+++ b/testing/Dockerfile
@@ -6,7 +6,7 @@ RUN apt-get update && apt-get --no-install-recommends -y install unzip \
 
 # Install Terraform
 # renovate: datasource=github-releases depName=hashicorp/terraform versioning=hashicorp
-ENV TERRAFORM_VERSION=1.9.8
+ENV TERRAFORM_VERSION=1.10.1
 RUN case $(uname -m) in x86_64|amd64) ARCH="amd64" ;; aarch64|arm64|armv7l) ARCH="arm64" ;; esac && \
     wget -nv -O terraform.zip https://releases.hashicorp.com/terraform/${TERRAFORM_VERSION}/terraform_${TERRAFORM_VERSION}_linux_${ARCH}.zip && \
     mkdir -p /usr/local/bin/tf/versions/${TERRAFORM_VERSION} && \