diff --git a/docs/resources/environment.md b/docs/resources/environment.md
index c899947f..aa516780 100644
--- a/docs/resources/environment.md
+++ b/docs/resources/environment.md
@@ -175,7 +175,7 @@ Optional:
 - `retry_on_destroy_only_when_matches_regex` (String) if specified, will only retry (on destroy) if error matches specified regex
 - `revision` (String) source code revision (branch / tag) to use
 - `ssh_keys` (List of Map of String) an array of references to 'data_ssh_key' to use when accessing git over ssh
-- `terraform_version` (String) 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).
+- `terraform_version` (String) 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.
 - `terragrunt_version` (String) the Terragrunt version to use (example: 0.36.5)
 - `token_id` (String) the git token id to be used
 - `type` (String) template type (allowed values: terraform, terragrunt, pulumi, k8s, workflow, cloudformation, helm)
diff --git a/docs/resources/template.md b/docs/resources/template.md
index 9af1fd6b..8004a1f3 100644
--- a/docs/resources/template.md
+++ b/docs/resources/template.md
@@ -82,7 +82,7 @@ resource "env0_template_project_assignment" "assignment" {
 - `retry_on_destroy_only_when_matches_regex` (String) if specified, will only retry (on destroy) if error matches specified regex
 - `revision` (String) source code revision (branch / tag) to use
 - `ssh_keys` (List of Map of String) an array of references to 'data_ssh_key' to use when accessing git over ssh
-- `terraform_version` (String) 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).
+- `terraform_version` (String) 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.
 - `terragrunt_version` (String) the Terragrunt version to use (example: 0.36.5)
 - `token_id` (String) the git token id to be used
 - `type` (String) template type (allowed values: terraform, terragrunt, pulumi, k8s, workflow, cloudformation, helm)