diff --git a/pkg/env/shims.go b/pkg/env/shims.go
index 62c2e303a..0146368f1 100644
--- a/pkg/env/shims.go
+++ b/pkg/env/shims.go
@@ -39,6 +39,7 @@ type Shims struct {
 	LookupEnv      func(string) (string, bool)
 	Environ        func() []string
 	Getenv         func(string) string
+	Command        func(name string, arg ...string) *exec.Cmd
 }
 
 // =============================================================================
@@ -66,5 +67,6 @@ func NewShims() *Shims {
 		LookupEnv:      os.LookupEnv,
 		Environ:        os.Environ,
 		Getenv:         os.Getenv,
+		Command:        exec.Command,
 	}
 }
diff --git a/pkg/env/terraform_env.go b/pkg/env/terraform_env.go
index 9974e9869..339e066ed 100644
--- a/pkg/env/terraform_env.go
+++ b/pkg/env/terraform_env.go
@@ -6,6 +6,7 @@
 package env
 
 import (
+	"encoding/json"
 	"fmt"
 	"os"
 	"path/filepath"
@@ -25,6 +26,16 @@ type TerraformEnvPrinter struct {
 	BaseEnvPrinter
 }
 
+// TerraformOutput a struct that mimics the terraform output JSON
+type TerraformOutput struct {
+	Value     interface{} `json:"value"`
+	Type      interface{} `json:"type"`
+	Sensitive bool        `json:"sensitive"`
+}
+
+// TerraformOutputs a map of output names to TerraformOutput
+type TerraformOutputs map[string]TerraformOutput
+
 // =============================================================================
 // Constructor
 // =============================================================================
@@ -129,6 +140,15 @@ func (e *TerraformEnvPrinter) GetEnvVars() (map[string]string, error) {
 		envVars["TF_VAR_os_type"] = "unix"
 	}
 
+	outputVars, err := e.getTerraformOutputs(projectPath)
+	if err != nil {
+		return nil, fmt.Errorf("error deriving output vars: %w", err)
+	}
+
+	for k, v := range outputVars {
+		envVars[k] = v
+	}
+
 	return envVars, nil
 }
 
@@ -150,6 +170,53 @@ func (e *TerraformEnvPrinter) Print() error {
 // Private Methods
 // =============================================================================
 
+// getTerraformOutputs retrieves Terraform outputs from the specified project path.
+// It executes 'terraform output -json' and converts the outputs into environment variables.
+// Each output is prefixed with 'TF_VAR_' to make it available as a Terraform variable.
+// Returns a map of environment variable names to their formatted values, or an error if the command fails.
+func (e *TerraformEnvPrinter) getTerraformOutputs(projectPath string) (map[string]string, error) {
+	cmd := e.shims.Command("terraform", "-chdir="+projectPath, "output", "-json")
+	outputJSON, err := cmd.Output()
+	if err != nil {
+		return nil, fmt.Errorf("failed to run terraform output: %w", err)
+	}
+	var outputs TerraformOutputs
+	if err := json.Unmarshal(outputJSON, &outputs); err != nil {
+		return nil, fmt.Errorf("failed to parse terraform output: %w", err)
+	}
+
+	envVars := make(map[string]string)
+	for name, output := range outputs {
+		envVars["TF_VAR_"+name] = formatTerraformValue(output.Value)
+	}
+	return envVars, nil
+}
+
+// formatTerraformValue converts a Terraform output value to a string representation.
+// It handles different value types:
+// - Strings are returned as-is
+// - Numbers and booleans are converted to strings
+// - Lists are joined with commas
+// - Complex types are JSON marshaled
+// Returns a string representation of the value suitable for environment variables.
+func formatTerraformValue(val interface{}) string {
+	switch v := val.(type) {
+	case string:
+		return v
+	case float64, int, bool:
+		return fmt.Sprintf("%v", v)
+	case []interface{}:
+		parts := make([]string, len(v))
+		for i, elem := range v {
+			parts[i] = fmt.Sprintf("%v", elem)
+		}
+		return strings.Join(parts, ",")
+	default:
+		b, _ := json.Marshal(v)
+		return string(b)
+	}
+}
+
 // generateBackendOverrideTf creates the backend_override.tf file for the project by determining
 // the backend type and writing the appropriate configuration to the file.
 func (e *TerraformEnvPrinter) generateBackendOverrideTf() error {
diff --git a/pkg/env/terraform_env_test.go b/pkg/env/terraform_env_test.go
index 3239bf51b..6ea68bf63 100644
--- a/pkg/env/terraform_env_test.go
+++ b/pkg/env/terraform_env_test.go
@@ -3,6 +3,7 @@ package env
 import (
 	"fmt"
 	"os"
+	"os/exec"
 	"path/filepath"
 	"reflect"
 	"sort"
@@ -1291,3 +1292,157 @@ func TestTerraformEnv_processBackendConfig(t *testing.T) {
 		}
 	})
 }
+
+func TestTerraformEnv_getTerraformOutputs(t *testing.T) {
+	setup := func(t *testing.T) (*TerraformEnvPrinter, *Mocks) {
+		t.Helper()
+		mocks := setupTerraformEnvMocks(t)
+		printer := NewTerraformEnvPrinter(mocks.Injector)
+		printer.shims = mocks.Shims
+		if err := printer.Initialize(); err != nil {
+			t.Fatalf("Failed to initialize printer: %v", err)
+		}
+		return printer, mocks
+	}
+
+	t.Run("Success", func(t *testing.T) {
+		// Given a TerraformEnvPrinter with mock terraform output
+		printer, mocks := setup(t)
+		projectPath := "project/path"
+
+		// Mock terraform output command
+		mocks.Shims.Command = func(name string, arg ...string) *exec.Cmd {
+			cmd := exec.Command("echo", `{
+				"instance_id": {"value": "i-123456", "type": "string"},
+				"port": {"value": 8080, "type": "number"},
+				"tags": {"value": ["prod", "web"], "type": "list"}
+			}`)
+			return cmd
+		}
+
+		// When getTerraformOutputs is called
+		outputs, err := printer.getTerraformOutputs(projectPath)
+
+		// Then no error should occur and outputs should be correctly formatted
+		if err != nil {
+			t.Errorf("Expected no error, got %v", err)
+		}
+
+		expectedOutputs := map[string]string{
+			"TF_VAR_instance_id": "i-123456",
+			"TF_VAR_port":        "8080",
+			"TF_VAR_tags":        "prod,web",
+		}
+
+		if !reflect.DeepEqual(outputs, expectedOutputs) {
+			t.Errorf("Expected outputs %v, got %v", expectedOutputs, outputs)
+		}
+	})
+
+	t.Run("CommandError", func(t *testing.T) {
+		// Given a TerraformEnvPrinter with failing terraform command
+		printer, mocks := setup(t)
+		projectPath := "project/path"
+
+		// Mock failing terraform command
+		mocks.Shims.Command = func(name string, arg ...string) *exec.Cmd {
+			cmd := exec.Command("false")
+			return cmd
+		}
+
+		// When getTerraformOutputs is called
+		_, err := printer.getTerraformOutputs(projectPath)
+
+		// Then an error should be returned
+		if err == nil {
+			t.Errorf("Expected error, got nil")
+		}
+		if !strings.Contains(err.Error(), "failed to run terraform output") {
+			t.Errorf("Expected error message to contain 'failed to run terraform output', got %v", err)
+		}
+	})
+
+	t.Run("InvalidJSON", func(t *testing.T) {
+		// Given a TerraformEnvPrinter with invalid JSON output
+		printer, mocks := setup(t)
+		projectPath := "project/path"
+
+		// Mock terraform command with invalid JSON
+		mocks.Shims.Command = func(name string, arg ...string) *exec.Cmd {
+			cmd := exec.Command("echo", `invalid json`)
+			return cmd
+		}
+
+		// When getTerraformOutputs is called
+		_, err := printer.getTerraformOutputs(projectPath)
+
+		// Then an error should be returned
+		if err == nil {
+			t.Errorf("Expected error, got nil")
+		}
+		if !strings.Contains(err.Error(), "failed to parse terraform output") {
+			t.Errorf("Expected error message to contain 'failed to parse terraform output', got %v", err)
+		}
+	})
+}
+
+func TestTerraformEnv_formatTerraformValue(t *testing.T) {
+	tests := []struct {
+		name     string
+		input    interface{}
+		expected string
+	}{
+		{
+			name:     "String value",
+			input:    "test-string",
+			expected: "test-string",
+		},
+		{
+			name:     "Integer value",
+			input:    42,
+			expected: "42",
+		},
+		{
+			name:     "Float value",
+			input:    3.14,
+			expected: "3.14",
+		},
+		{
+			name:     "Boolean value",
+			input:    true,
+			expected: "true",
+		},
+		{
+			name:     "String array",
+			input:    []interface{}{"item1", "item2", "item3"},
+			expected: "item1,item2,item3",
+		},
+		{
+			name:     "Mixed array",
+			input:    []interface{}{"item1", 42, true},
+			expected: "item1,42,true",
+		},
+		{
+			name:     "Map value",
+			input:    map[string]interface{}{"key": "value"},
+			expected: `{"key":"value"}`,
+		},
+		{
+			name:     "Nil value",
+			input:    nil,
+			expected: "null",
+		},
+	}
+
+	for _, tt := range tests {
+		t.Run(tt.name, func(t *testing.T) {
+			// When formatTerraformValue is called
+			result := formatTerraformValue(tt.input)
+
+			// Then the result should match the expected output
+			if result != tt.expected {
+				t.Errorf("Expected %q, got %q", tt.expected, result)
+			}
+		})
+	}
+}