diff --git a/env0/resource_template.go b/env0/resource_template.go
index 8b23f76c..6b3bdd04 100644
--- a/env0/resource_template.go
+++ b/env0/resource_template.go
@@ -165,7 +165,6 @@ func getTemplateSchema(prefix string) map[string]*schema.Schema {
 			Description:      "the Terraform version to use (example: 0.15.1). Setting to `RESOLVE_FROM_TERRAFORM_CODE` defaults to the version of `terraform.required_version` during run-time (resolve from terraform code). Setting to `latest`, the version used will be the most recent one available for Terraform.",
 			Optional:         true,
 			ValidateDiagFunc: NewRegexValidator(`^(?:[0-9]\.[0-9]{1,2}\.[0-9]{1,2})|RESOLVE_FROM_TERRAFORM_CODE|latest$`),
-			Default:          "0.15.1",
 		},
 		"terragrunt_version": {
 			Type:             schema.TypeString,
diff --git a/env0/resource_template_test.go b/env0/resource_template_test.go
index 57fb4d25..384377de 100644
--- a/env0/resource_template_test.go
+++ b/env0/resource_template_test.go
@@ -734,8 +734,9 @@ func TestUnitTemplateResource(t *testing.T) {
 
 		basicTemplateResourceConfig := func(resourceType string, resourceName string, template client.Template) string {
 			return resourceConfigCreate(resourceType, resourceName, map[string]interface{}{
-				"name":       template.Name,
-				"repository": template.Repository,
+				"name":              template.Name,
+				"repository":        template.Repository,
+				"terraform_version": defaultVersion,
 			})
 		}
 
@@ -1014,8 +1015,9 @@ func TestUnitTemplateResource(t *testing.T) {
 
 		basicTemplateResourceConfig := func(resourceType string, resourceName string, template client.Template) string {
 			return resourceConfigCreate(resourceType, resourceName, map[string]interface{}{
-				"name":       template.Name,
-				"repository": template.Repository,
+				"name":              template.Name,
+				"repository":        template.Repository,
+				"terraform_version": defaultVersion,
 			})
 		}
 
@@ -1093,9 +1095,10 @@ func TestUnitTemplateResource(t *testing.T) {
 			Steps: []resource.TestStep{
 				{
 					Config: resourceConfigCreate(resourceType, resourceName, map[string]interface{}{
-						"name":       pathTemplate.Name,
-						"path":       "/" + pathTemplate.Path,
-						"repository": pathTemplate.Repository,
+						"name":              pathTemplate.Name,
+						"path":              "/" + pathTemplate.Path,
+						"repository":        pathTemplate.Repository,
+						"terraform_version": pathTemplate.TerraformVersion,
 					}),
 					Check: resource.ComposeAggregateTestCheckFunc(
 						resource.TestCheckResourceAttr(resourceFullName, "id", pathTemplate.Id),
@@ -1108,9 +1111,10 @@ func TestUnitTemplateResource(t *testing.T) {
 				},
 				{
 					Config: resourceConfigCreate(resourceType, resourceName, map[string]interface{}{
-						"name":       updatedPathTemplate.Name,
-						"path":       "/" + updatedPathTemplate.Path,
-						"repository": updatedPathTemplate.Repository,
+						"name":              updatedPathTemplate.Name,
+						"path":              "/" + updatedPathTemplate.Path,
+						"repository":        updatedPathTemplate.Repository,
+						"terraform_version": updatedPathTemplate.TerraformVersion,
 					}),
 					Check: resource.ComposeAggregateTestCheckFunc(
 						resource.TestCheckResourceAttr(resourceFullName, "id", updatedPathTemplate.Id),
diff --git a/tests/integration/005_ssh_key/main.tf b/tests/integration/005_ssh_key/main.tf
index d60049a9..1f640e00 100644
--- a/tests/integration/005_ssh_key/main.tf
+++ b/tests/integration/005_ssh_key/main.tf
@@ -35,4 +35,5 @@ resource "env0_template" "usage" {
   type        = "terraform"
   repository  = "https://github.com/env0/templates"
   ssh_keys    = [env0_ssh_key.tested]
+  terraform_version = "1.3.1"
 }
diff --git a/tests/integration/007_template_project_assignment/main.tf b/tests/integration/007_template_project_assignment/main.tf
index 7bbc90ce..bb3beb73 100644
--- a/tests/integration/007_template_project_assignment/main.tf
+++ b/tests/integration/007_template_project_assignment/main.tf
@@ -14,6 +14,7 @@ resource "env0_template" "test_template" {
   description = "test template"
   type        = "terraform"
   repository  = "https://github.com/env0/templates"
+  terraform_version = "1.5.1"
 }
 
 resource "env0_project" "test_project" {