diff --git a/containers/azure-terraform/.devcontainer/Dockerfile b/containers/azure-terraform/.devcontainer/Dockerfile
index c34e941289..aeb3e649c9 100644
--- a/containers/azure-terraform/.devcontainer/Dockerfile
+++ b/containers/azure-terraform/.devcontainer/Dockerfile
@@ -35,11 +35,12 @@ RUN if [ "${INSTALL_AZURE_CLI}" = "true" ]; then bash /tmp/library-scripts/azcli
     fi \
     && rm -rf /var/lib/apt/lists/*
 
-# Install Terraform, tflint, Terragrunt
+# Install Terraform, tflint, Terragrunt, terraform-docs
 ARG TERRAFORM_VERSION=0.12.16
 ARG TFLINT_VERSION=0.8.2
 ARG TERRAGRUNT_VERSION=0.28.1
-RUN bash /tmp/library-scripts/terraform-debian.sh "${TERRAFORM_VERSION}" "${TFLINT_VERSION}" "${TERRAGRUNT_VERSION}" \
+ARG TERRAFORM_DOCS_VERSION=0.14.1
+RUN bash /tmp/library-scripts/terraform-debian.sh "${TERRAFORM_VERSION}" "${TFLINT_VERSION}" "${TERRAGRUNT_VERSION}" "${TERRAFORM_DOCS_VERSION}" \
     && rm -rf /tmp/library-scripts
 
 
diff --git a/containers/azure-terraform/.devcontainer/devcontainer.json b/containers/azure-terraform/.devcontainer/devcontainer.json
index 554683d866..6c0cd6b0fc 100644
--- a/containers/azure-terraform/.devcontainer/devcontainer.json
+++ b/containers/azure-terraform/.devcontainer/devcontainer.json
@@ -6,6 +6,7 @@
 			"TERRAFORM_VERSION": "0.14.5",
 			"TFLINT_VERSION": "0.24.1",
 			"TERRAGRUNT_VERSION": "0.28.1",
+			"TERRAFORM_DOCS_VERSION": "0.16.0",
 			"INSTALL_AZURE_CLI": "true",
 			"INSTALL_DOCKER": "true",
 			"NODE_VERSION": "lts/*"
diff --git a/containers/azure-terraform/.devcontainer/library-scripts/terraform-debian.sh b/containers/azure-terraform/.devcontainer/library-scripts/terraform-debian.sh
index f2614aeb8c..3b0e138ed5 100755
--- a/containers/azure-terraform/.devcontainer/library-scripts/terraform-debian.sh
+++ b/containers/azure-terraform/.devcontainer/library-scripts/terraform-debian.sh
@@ -14,9 +14,11 @@ set -e
 TERRAFORM_VERSION="${1:-"latest"}"
 TFLINT_VERSION="${2:-"latest"}"
 TERRAGRUNT_VERSION="${3:-"latest"}"
-TERRAFORM_SHA256="${4:-"automatic"}"
-TFLINT_SHA256="${5:-"automatic"}"
-TERRAGRUNT_SHA256="${6:-"automatic"}"
+TERRAFORM_DOCS_VERSION="${4:-"latest"}"
+TERRAFORM_SHA256="${5:-"automatic"}"
+TFLINT_SHA256="${6:-"automatic"}"
+TERRAGRUNT_SHA256="${7:-"automatic"}"
+TERRAFORM_DOCS_SHA256="${8:-"automatic"}"
 
 TERRAFORM_GPG_KEY="72D7468F"
 TFLINT_GPG_KEY_URI="https://raw.githubusercontent.com/terraform-linters/tflint/master/8CE69160EB3F2FE9.key"
@@ -156,11 +158,12 @@ fi
 find_version_from_git_tags TERRAFORM_VERSION 'https://github.com/hashicorp/terraform'
 find_version_from_git_tags TFLINT_VERSION 'https://github.com/terraform-linters/tflint'
 find_version_from_git_tags TERRAGRUNT_VERSION 'https://github.com/gruntwork-io/terragrunt'
+find_version_from_git_tags TERRAFORM_DOCS_VERSION 'https://github.com/terraform-docs/terraform-docs'
 
 mkdir -p /tmp/tf-downloads
 cd /tmp/tf-downloads
 
-# Install Terraform, tflint, Terragrunt
+# Install Terraform, tflint, Terragrunt, terraform-docs
 echo "Downloading terraform..."
 terraform_filename="terraform_${TERRAFORM_VERSION}_linux_${architecture}.zip"
 curl -sSL -o ${terraform_filename} "https://releases.hashicorp.com/terraform/${TERRAFORM_VERSION}/${terraform_filename}"
@@ -198,6 +201,7 @@ if [ "${TFLINT_VERSION}" != "none" ]; then
     unzip /tmp/tf-downloads/${TFLINT_FILENAME}
     mv -f tflint /usr/local/bin/
 fi
+
 if [ "${TERRAGRUNT_VERSION}" != "none" ]; then
     echo "Downloading Terragrunt..."
     terragrunt_filename="terragrunt_linux_${architecture}"
@@ -214,5 +218,21 @@ if [ "${TERRAGRUNT_VERSION}" != "none" ]; then
     mv -f /tmp/tf-downloads/${terragrunt_filename} /usr/local/bin/terragrunt
 fi
 
+if [ "${TERRAFORM_DOCS_VERSION}" != "none" ]; then
+    echo "Downloading terraform-docs..."
+    terraform_docs_filename="terraform-docs-v${TERRAFORM_DOCS_VERSION}-linux-${architecture}.tar.gz"
+    curl -sSL -o "/tmp/tf-downloads/${terraform_docs_filename}" "https://github.com/terraform-docs/terraform-docs/releases/download/v${TERRAFORM_DOCS_VERSION}/${terraform_docs_filename}"
+    if [ "${TERRAFORM_DOCS_SHA256}" != "dev-mode" ]; then
+        if [ "${TERRAFORM_DOCS_SHA256}" = "automatic" ]; then
+            curl -sSL -o terraform_docs_sha256sum "https://github.com/terraform-docs/terraform-docs/releases/download/v${TERRAFORM_DOCS_VERSION}/terraform-docs-v${TERRAFORM_DOCS_VERSION}.sha256sum"
+        else
+            echo "${TERRAFORM_DOCS_SHA256} *${terraform_docs_filename}" > terraform_docs_sha256sum
+        fi
+        sha256sum --ignore-missing -c terraform_docs_sha256sum
+    fi
+    tar -zxvof "/tmp/tf-downloads/${terraform_docs_filename}"
+    mv -f "/tmp/tf-downloads/terraform-docs" /usr/local/bin/
+fi
+
 rm -rf /tmp/tf-downloads ${GNUPGHOME}
 echo "Done!"
diff --git a/containers/azure-terraform/.vscode/tasks.json b/containers/azure-terraform/.vscode/tasks.json
index 67dedd4ef6..e546c8b360 100644
--- a/containers/azure-terraform/.vscode/tasks.json
+++ b/containers/azure-terraform/.vscode/tasks.json
@@ -52,6 +52,15 @@
             },
             "command": "tflint",
             "problemMatcher": []
-        }
+        },
+		{
+			"label": "terraform docs",
+			"type": "shell",
+			"options": {
+				"cwd": "${workspaceFolder}/test-project/templates"
+			},
+			"command": "terraform-docs markdown table --output-file README.md ./",
+			"problemMatcher": []
+		}
     ]
 }
diff --git a/containers/azure-terraform/README.md b/containers/azure-terraform/README.md
index f4dd4f739c..e0168048d4 100644
--- a/containers/azure-terraform/README.md
+++ b/containers/azure-terraform/README.md
@@ -29,9 +29,10 @@ You can also choose the specific version of Terraform installed by updating the
 
 ```Dockerfile
 "arg": {
-   "TERRAFORM_VERSION": "0.14.5"
+   "TERRAFORM_VERSION": "0.14.5",
    "TFLINT_VERSION": "0.24.1",
-   "TERRAGRUNT_VERSION": "0.28.1"
+   "TERRAGRUNT_VERSION": "0.28.1",
+   "TERRAFORM_DOCS_VERSION": "0.16.0",
    "INSTALL_AZURE_CLI": "true",
    "INSTALL_DOCKER": "true",
    "NODE_VERSION": "lts"
@@ -80,6 +81,7 @@ Once the environment settings are configured with the `.devcontainer/devcontaine
 - `terraform init`: installs plugins and connect to terraform remote backend
 - `terraform format`: fix formatting issues
 - `terraform lint`: fix linting issues
+- `terraform docs`: generate terraform module documentation
 
 For additional terraform commands, you can use the [Azure Terraform extension](https://marketplace.visualstudio.com/items?itemName=ms-azuretools.vscode-azureterraform). 
 - Navigate to the directory where the templates are located (`test-project/templates`)