Skill: Refactor Module
Overview
This skill guides AI agents in transforming monolithic Terraform configurations into reusable, maintainable modules following HashiCorp's module design principles and community best practices.
Capability Statement
The agent will analyze existing Terraform code and systematically refactor it into well-structured modules with:
- Clear interface contracts (variables and outputs)
- Proper encapsulation and abstraction
- Versioning and documentation
- Testing frameworks
- Migration path for existing state
Prerequisites
- Existing Terraform configuration to refactor
- Understanding of resource dependencies
- Access to inspect current state via
terraform state list/terraform show -json(for migration planning) - Knowledge of module registry patterns
Input Parameters
Execution Steps
1. Analysis Phase
2. Module Design
Interface Design
Encapsulation Strategy
3. Code Transformation
Before: Monolithic Configuration
After: Modular Structure
4. State Migration
Inspecting Current State
Before writing moved blocks or state mv commands, inspect the current state to map
existing resource addresses. Prefer the documented, stable, and more token-efficient
commands over reading the raw state file:
terraform show -json requires providers to be installed (terraform init), since it
renders values against provider schemas. Fall back to the raw state
(terraform state pull / terraform.tfstate) only when providers aren't available and
init can't run, you need only coarse info (addresses, outputs, serial/lineage), or you
must avoid executing Terraform. Avoid parsing the raw version-4 state format as a stable
interface. Note: state contains sensitive values in plaintext in every format — never
echo state contents into logs or output.
Generate Migration Plan
Manual State Migration (Pre-1.1)
5. Module Documentation
6. Testing
Use skill terraform-test
Test File: A .tftest.hcl or .tftest.json file containing test configuration and run blocks that validate your Terraform configuration.
Test Block: Optional configuration block that defines test-wide settings (available since Terraform 1.6.0).
Run Block: Defines a single test scenario with optional variables, provider configurations, and assertions. Each test file requires at least one run block.
Assert Block: Contains conditions that must evaluate to true for the test to pass. Failed assertions cause the test to fail.
Mock Provider: Simulates provider behavior without creating real infrastructure (available since Terraform 1.7.0).
Test Modes: Tests run in apply mode (default, creates real infrastructure) or plan mode (validates logic without creating resources).
File Structure
Terraform test files use the .tftest.hcl or .tftest.json extension and are typically organized in a tests/ directory. Use clear naming conventions to distinguish between unit tests (plan mode) and integration tests (apply mode):
Refactoring Patterns
Pattern 1: Resource Grouping
Extract related resources into cohesive modules:
- Networking (VPC, Subnets, Route Tables)
- Compute (ASG, Launch Templates, Load Balancers)
- Data (RDS, ElastiCache, S3)
Pattern 2: Configuration Layering
Pattern 3: Composition
Common Pitfalls
1. Over-Abstraction
2. Tight Coupling
3. State Migration Errors
Always test migration in non-production first:
Version Control Strategy
Success Criteria
- Module has single, well-defined responsibility
- All variables have descriptions and types
- Validation rules prevent invalid configurations
- Outputs provide sufficient information for consumers
- Documentation includes usage examples
- Tests verify module behavior
- State migration completed without resource recreation
- No plan differences after refactoring
Related Skills
- Terraform code generation - Style guide for the new Terraform Module
- Azure Verified Modules - Recommended module specifications for Azure


