diff --git a/.github/workflows/terraform.yaml b/.github/workflows/terraform.yaml
index d1984a1..454ef8b 100644
--- a/.github/workflows/terraform.yaml
+++ b/.github/workflows/terraform.yaml
@@ -44,7 +44,7 @@ env:
   GITHUB_APP_INSTALLATION_ID: ${{ inputs.gh_app_installation_id || vars.GH_APP_INSTALLATION_ID }}
   GITHUB_APP_PEM_FILE: ${{ secrets.gh_app_pem_file || secrets.GH_APP_PEM_FILE }}
   TF_WORKSPACE: ${{ inputs.gh_owner || vars.GH_OWNER }}
-  TF_VAR_path: iac/${{ inputs.path || 'test.yaml' }}
+  TF_VAR_path: ../iac/${{ inputs.path || 'test.yaml' }}
 
 jobs:
   terraform:
@@ -74,12 +74,12 @@ jobs:
       
       - name: Terraform init
         id: init
-        run: terraform init
+        run: terraform -chdir=terraform init
 
       - name: Terraform plan
         id: plan
         if: github.event_name == 'pull_request'
-        run: terraform plan -no-color -input=false
+        run: terraform -chdir=terraform plan -no-color -input=false
         continue-on-error: true
       
       - name: Terraform plan as the PR comment
@@ -138,4 +138,4 @@ jobs:
 
       - name: Terraform apply
         if: github.ref == 'refs/heads/main' && github.event_name == 'push'
-        run: terraform apply -auto-approve -input=false
+        run: terraform -chdir=terraform apply -auto-approve -input=false
diff --git a/README.md b/README.md
index 1e19938..0685e2f 100644
--- a/README.md
+++ b/README.md
@@ -211,9 +211,9 @@ export GITHUB_APP_PEM_FILE=$(cat <app-private-key.pem>)
 export TF_WORKSPACE="$GITHUB_OWNER"
 export TF_VAR_path="test.yaml"
 
-terraform init
-terraform plan
-terraform apply
+terraform -chdir=terraform init
+terraform -chdir=terraform plan
+terraform -chdir=terraform apply
 ```
 
 ## Testing
diff --git a/.terraform.lock.hcl b/terraform/.terraform.lock.hcl
similarity index 100%
rename from .terraform.lock.hcl
rename to terraform/.terraform.lock.hcl
diff --git a/config.tf b/terraform/config.tf
similarity index 100%
rename from config.tf
rename to terraform/config.tf
diff --git a/input.tf b/terraform/input.tf
similarity index 100%
rename from input.tf
rename to terraform/input.tf
diff --git a/main.tf b/terraform/main.tf
similarity index 100%
rename from main.tf
rename to terraform/main.tf