<ul><li>Understanding how Terraform prioritizes variable files can streamline configuration management and avoid unexpected results.</li><li>Automatic .tfvars files (abc.auto.tfvars and terraform.tfvars) are picked up automatically by Terraform.</li><li>Custom .tfvars files require explicit specification using the -var-file option and override all other .tfvars settings.</li><li>When using custom .tfvars files, missing variables will fallback to values from terraform.tfvars or abc.auto.tfvars.</li></ul>

Your DevOps Tip#2 - On Managing Terraform Variables

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