diff --git a/pkg/iac/scanners/terraform/module_test.go b/pkg/iac/scanners/terraform/module_test.go
index d0d289a9d562..ec4291fd59e4 100644
--- a/pkg/iac/scanners/terraform/module_test.go
+++ b/pkg/iac/scanners/terraform/module_test.go
@@ -567,7 +567,7 @@ resource "something" "else" {
 		for_each = toset(["true"])
 
 		content {
-			ok = each.value
+			ok = blah.value
 		}
 	}
 }
diff --git a/pkg/iac/scanners/terraform/parser/evaluator.go b/pkg/iac/scanners/terraform/parser/evaluator.go
index 809498f35c63..8e2e737b5d9b 100644
--- a/pkg/iac/scanners/terraform/parser/evaluator.go
+++ b/pkg/iac/scanners/terraform/parser/evaluator.go
@@ -260,36 +260,17 @@ func (e *evaluator) evaluateSteps() {
 }
 
 func (e *evaluator) expandBlocks(blocks terraform.Blocks) terraform.Blocks {
-	return e.expandDynamicBlocks(e.expandBlockForEaches(e.expandBlockCounts(blocks), false)...)
+	return e.expandDynamicBlocks(e.expandBlockForEaches(e.expandBlockCounts(blocks))...)
 }
 
 func (e *evaluator) expandDynamicBlocks(blocks ...*terraform.Block) terraform.Blocks {
 	for _, b := range blocks {
-		e.expandDynamicBlock(b)
-	}
-	return blocks
-}
-
-func (e *evaluator) expandDynamicBlock(b *terraform.Block) {
-	for _, sub := range b.AllBlocks() {
-		e.expandDynamicBlock(sub)
-	}
-	for _, sub := range b.AllBlocks().OfType("dynamic") {
-		if sub.IsExpanded() {
-			continue
-		}
-		blockName := sub.TypeLabel()
-		expanded := e.expandBlockForEaches(terraform.Blocks{sub}, true)
-		for _, ex := range expanded {
-			if content := ex.GetBlock("content"); content.IsNotNil() {
-				_ = e.expandDynamicBlocks(content)
-				b.InjectBlock(content, blockName)
-			}
-		}
-		if len(expanded) > 0 {
-			sub.MarkExpanded()
+		if err := b.ExpandBlock(); err != nil {
+			e.logger.Error(`Failed to expand dynamic block.`,
+				log.String("block", b.FullName()), log.Err(err))
 		}
 	}
+	return blocks
 }
 
 func isBlockSupportsForEachMetaArgument(block *terraform.Block) bool {
@@ -297,11 +278,10 @@ func isBlockSupportsForEachMetaArgument(block *terraform.Block) bool {
 		"module",
 		"resource",
 		"data",
-		"dynamic",
 	}, block.Type())
 }
 
-func (e *evaluator) expandBlockForEaches(blocks terraform.Blocks, isDynamic bool) terraform.Blocks {
+func (e *evaluator) expandBlockForEaches(blocks terraform.Blocks) terraform.Blocks {
 
 	var forEachFiltered terraform.Blocks
 
@@ -348,7 +328,7 @@ func (e *evaluator) expandBlockForEaches(blocks terraform.Blocks, isDynamic bool
 			// is the value of the collection. The exception is the use of for-each inside a dynamic block,
 			// because in this case the collection element may not be a primitive value.
 			if (forEachVal.Type().IsCollectionType() || forEachVal.Type().IsTupleType()) &&
-				!forEachVal.Type().IsMapType() && !isDynamic {
+				!forEachVal.Type().IsMapType() {
 				stringVal, err := convert.Convert(val, cty.String)
 				if err != nil {
 					e.logger.Error(
@@ -374,22 +354,7 @@ func (e *evaluator) expandBlockForEaches(blocks terraform.Blocks, isDynamic bool
 
 			ctx.Set(eachObj, "each")
 			ctx.Set(eachObj, block.TypeLabel())
-
-			if isDynamic {
-				if iterAttr := block.GetAttribute("iterator"); iterAttr.IsNotNil() {
-					refs := iterAttr.AllReferences()
-					if len(refs) == 1 {
-						ctx.Set(idx, refs[0].TypeLabel(), "key")
-						ctx.Set(val, refs[0].TypeLabel(), "value")
-					} else {
-						e.logger.Debug("Ignoring iterator attribute in dynamic block, expected one reference",
-							log.Int("refs", len(refs)))
-					}
-				}
-			}
-
 			forEachFiltered = append(forEachFiltered, clone)
-
 			clones[idx.AsString()] = clone.Values()
 		})
 
diff --git a/pkg/iac/scanners/terraform/parser/parser_test.go b/pkg/iac/scanners/terraform/parser/parser_test.go
index e3bd817748f6..540338afb57f 100644
--- a/pkg/iac/scanners/terraform/parser/parser_test.go
+++ b/pkg/iac/scanners/terraform/parser/parser_test.go
@@ -1367,139 +1367,284 @@ func TestCountMetaArgumentInModule(t *testing.T) {
 }
 
 func TestDynamicBlocks(t *testing.T) {
-	t.Run("arg is list of int", func(t *testing.T) {
-		modules := parse(t, map[string]string{
-			"main.tf": `
-resource "aws_security_group" "sg-webserver" {
-  vpc_id = "1111"
-  dynamic "ingress" {
+	tests := []struct {
+		name     string
+		src      string
+		expected []any
+	}{
+		{
+			name: "for-each use tuple of int",
+			src: `resource "test_resource" "test" {
+  dynamic "foo" {
     for_each = [80, 443]
     content {
-      from_port   = ingress.value
-      to_port     = ingress.value
-      protocol    = "tcp"
-      cidr_blocks = ["0.0.0.0/0"]
+      bar = foo.value
     }
   }
-}
-`,
-		})
-		require.Len(t, modules, 1)
-
-		secGroups := modules.GetResourcesByType("aws_security_group")
-		assert.Len(t, secGroups, 1)
-		ingressBlocks := secGroups[0].GetBlocks("ingress")
-		assert.Len(t, ingressBlocks, 2)
-
-		var inboundPorts []int
-		for _, ingress := range ingressBlocks {
-			fromPort := ingress.GetAttribute("from_port").AsIntValueOrDefault(-1, ingress).Value()
-			inboundPorts = append(inboundPorts, fromPort)
-		}
-
-		assert.True(t, compareSets([]int{80, 443}, inboundPorts))
-	})
-
-	t.Run("empty for-each", func(t *testing.T) {
-		modules := parse(t, map[string]string{
-			"main.tf": `
-resource "aws_lambda_function" "analyzer" {
-  dynamic "vpc_config" {
+}`,
+			expected: []any{float64(80), float64(443)},
+		},
+		{
+			name: "for-each use list of int",
+			src: `resource "test_resource" "test" {
+  dynamic "foo" {
+    for_each = tolist([80, 443])
+    content {
+      bar = foo.value
+    }
+  }
+}`,
+			expected: []any{float64(80), float64(443)},
+		},
+		{
+			name: "for-each use set of int",
+			src: `resource "test_resource" "test" {
+  dynamic "foo" {
+    for_each = toset([80, 443])
+    content {
+      bar = foo.value
+    }
+  }
+}`,
+			expected: []any{float64(80), float64(443)},
+		},
+		{
+			name: "for-each use list of bool",
+			src: `resource "test_resource" "test" {
+  dynamic "foo" {
+    for_each = tolist([true])
+    content {
+      bar = foo.value
+    }
+  }
+}`,
+			expected: []any{true},
+		},
+		{
+			name: "empty for-each",
+			src: `resource "test_resource" "test" {
+  dynamic "foo" {
     for_each = []
     content {}
   }
+}`,
+			expected: []any{},
+		},
+		{
+			name: "for-each use tuple of objects",
+			src: `variable "test_var" {
+  type    = list(object({ enabled = bool }))
+  default = [{ enabled = true }]
 }
-`,
-		})
-		require.Len(t, modules, 1)
 
-		functions := modules.GetResourcesByType("aws_lambda_function")
-		assert.Len(t, functions, 1)
-		vpcConfigs := functions[0].GetBlocks("vpc_config")
-		assert.Empty(t, vpcConfigs)
-	})
+resource "test_resource" "test" {
+  dynamic "foo" {
+    for_each = var.test_var
 
-	t.Run("arg is list of bool", func(t *testing.T) {
-		modules := parse(t, map[string]string{
-			"main.tf": `
-resource "aws_lambda_function" "analyzer" {
-  dynamic "vpc_config" {
-    for_each = [true]
-    content {}
+    content {
+      bar = foo.value.enabled
+    }
+  }
+}`,
+			expected: []any{true},
+		},
+		{
+			name: "attribute ref to object key",
+			src: `variable "some_var" {
+  type = map(
+    object({
+      tag = string
+    })
+  )
+  default = {
+    ssh   = { "tag" = "login" }
+    http  = { "tag" = "proxy" }
+    https = { "tag" = "proxy" }
   }
 }
-`,
-		})
-		require.Len(t, modules, 1)
-
-		functions := modules.GetResourcesByType("aws_lambda_function")
-		assert.Len(t, functions, 1)
-		vpcConfigs := functions[0].GetBlocks("vpc_config")
-		assert.Len(t, vpcConfigs, 1)
-	})
 
-	t.Run("arg is list of objects", func(t *testing.T) {
-		modules := parse(t, map[string]string{
-			"main.tf": `locals {
-  cluster_network_policy = [{
-    enabled = true
-  }]
+resource "test_resource" "test" {
+  dynamic "foo" {
+    for_each = { for name, values in var.some_var : name => values }
+    content {
+      bar = foo.key
+    }
+  }
+}`,
+			expected: []any{"ssh", "http", "https"},
+		},
+		{
+			name: "attribute ref to object value",
+			src: `variable "some_var" {
+  type = map(
+    object({
+      tag = string
+    })
+  )
+  default = {
+    ssh   = { "tag" = "login" }
+    http  = { "tag" = "proxy" }
+    https = { "tag" = "proxy" }
+  }
 }
 
-resource "google_container_cluster" "primary" {
-  name = "test"
+resource "test_resource" "test" {
+  dynamic "foo" {
+    for_each = { for name, values in var.some_var : name => values }
+    content {
+      bar = foo.value.tag
+    }
+  }
+}`,
+			expected: []any{"login", "proxy", "proxy"},
+		},
+		{
+			name: "attribute ref to map key",
+			src: `variable "some_var" {
+  type = map
+  default = {
+    ssh   = { "tag" = "login" }
+    http  = { "tag" = "proxy" }
+    https = { "tag" = "proxy" }
+  }
+}
 
-  dynamic "network_policy" {
-    for_each = local.cluster_network_policy
+resource "test_resource" "test" {
+  dynamic "foo" {
+    for_each = var.some_var
+    content {
+      bar = foo.key
+    }
+  }
+}`,
+			expected: []any{"ssh", "http", "https"},
+		},
+		{
+			name: "attribute ref to map value",
+			src: `variable "some_var" {
+  type = map
+  default = {
+    ssh   = { "tag" = "login" }
+    http  = { "tag" = "proxy" }
+    https = { "tag" = "proxy" }
+  }
+}
 
+resource "test_resource" "test" {
+  dynamic "foo" {
+    for_each = var.some_var
     content {
-      enabled = network_policy.value.enabled
+      bar = foo.value.tag
     }
   }
 }`,
-		})
-		require.Len(t, modules, 1)
+			expected: []any{"login", "proxy", "proxy"},
+		},
+		{
+			name: "dynamic block with iterator",
+			src: `resource "test_resource" "test" {
+  dynamic "foo" {
+    for_each = ["foo", "bar"]
+	iterator = some_iterator
+    content {
+      bar = some_iterator.value
+    }
+  }
+}`,
+			expected: []any{"foo", "bar"},
+		},
+		{
+			name: "iterator and parent block with same name",
+			src: `resource "test_resource" "test" {
+  dynamic "foo" {
+    for_each = ["foo", "bar"]
+	iterator = foo
+    content {
+      bar = foo.value
+    }
+  }
+}`,
+			expected: []any{"foo", "bar"},
+		},
+		{
+			name: "for-each use null value",
+			src: `resource "test_resource" "test" {
+  dynamic "foo" {
+    for_each = null
+    content {
+      bar = foo.value
+	}
+  }
+}`,
+			expected: []any{},
+		},
+		{
+			name: "no for-each attribute",
+			src: `resource "test_resource" "test" {
+  dynamic "foo" {
+    content {
+      bar = foo.value
+	}
+  }
+}`,
+			expected: []any{},
+		},
+	}
 
-		clusters := modules.GetResourcesByType("google_container_cluster")
-		assert.Len(t, clusters, 1)
+	for _, tt := range tests {
+		t.Run(tt.name, func(t *testing.T) {
+			modules := parse(t, map[string]string{
+				"main.tf": tt.src,
+			})
+			require.Len(t, modules, 1)
 
-		networkPolicies := clusters[0].GetBlocks("network_policy")
-		assert.Len(t, networkPolicies, 1)
+			resource := modules.GetResourcesByType("test_resource")
+			require.Len(t, resource, 1)
+			blocks := resource[0].GetBlocks("foo")
 
-		enabled := networkPolicies[0].GetAttribute("enabled")
-		assert.True(t, enabled.Value().True())
-	})
+			var vals []any
+			for _, attr := range blocks {
+				vals = append(vals, attr.GetAttribute("bar").GetRawValue())
+			}
 
-	t.Run("nested dynamic", func(t *testing.T) {
-		modules := parse(t, map[string]string{
-			"main.tf": `
-resource "test_block" "this" {
-  name     = "name"
-  location = "loc"
-  dynamic "env" {
-	for_each = ["1", "2"]
-	content {
-	  dynamic "value_source" {
-		for_each = [true, true]
-		content {}
-	  }
+			assert.ElementsMatch(t, tt.expected, vals)
+		})
 	}
+}
+
+func TestNestedDynamicBlock(t *testing.T) {
+	modules := parse(t, map[string]string{
+		"main.tf": `resource "test_resource" "test" {
+  dynamic "foo" {
+    for_each = ["1", "1"]
+    content {
+      dynamic "bar" {
+        for_each = [true, true]
+        content {
+          baz = foo.value
+          qux = bar.value
+        }
+      }
+    }
   }
 }`,
-		})
-		require.Len(t, modules, 1)
+	})
+	require.Len(t, modules, 1)
 
-		testResources := modules.GetResourcesByType("test_block")
-		assert.Len(t, testResources, 1)
-		envs := testResources[0].GetBlocks("env")
-		assert.Len(t, envs, 2)
+	testResources := modules.GetResourcesByType("test_resource")
+	assert.Len(t, testResources, 1)
+	blocks := testResources[0].GetBlocks("foo")
+	assert.Len(t, blocks, 2)
 
-		var sources []*terraform.Block
-		for _, env := range envs {
-			sources = append(sources, env.GetBlocks("value_source")...)
+	var nested []*terraform.Block
+	for _, block := range blocks {
+		nested = append(nested, block.GetBlocks("bar")...)
+		for _, b := range nested {
+			assert.Equal(t, "1", b.GetAttribute("baz").GetRawValue())
+			assert.Equal(t, true, b.GetAttribute("qux").GetRawValue())
 		}
-		assert.Len(t, sources, 4)
-	})
+	}
+	assert.Len(t, nested, 4)
 }
 
 func parse(t *testing.T, files map[string]string) terraform.Modules {
@@ -1513,21 +1658,6 @@ func parse(t *testing.T, files map[string]string) terraform.Modules {
 	return modules
 }
 
-func compareSets(a, b []int) bool {
-	m := make(map[int]bool)
-	for _, el := range a {
-		m[el] = true
-	}
-
-	for _, el := range b {
-		if !m[el] {
-			return false
-		}
-	}
-
-	return true
-}
-
 func TestModuleRefersToOutputOfAnotherModule(t *testing.T) {
 	files := map[string]string{
 		"main.tf": `
@@ -1775,42 +1905,6 @@ variable "foo" {}
 	assert.Equal(t, "bar", blocks[0].GetAttribute("foo").Value().AsString())
 }
 
-func TestDynamicWithIterator(t *testing.T) {
-	fsys := fstest.MapFS{
-		"main.tf": &fstest.MapFile{
-			Data: []byte(`resource "aws_s3_bucket" "this" {
-  dynamic versioning {
-    for_each = [true]
-    iterator = ver
-
-    content {
-      enabled = ver.value
-    }
-  }
-}`),
-		},
-	}
-
-	parser := New(
-		fsys, "",
-		OptionStopOnHCLError(true),
-		OptionWithDownloads(false),
-	)
-	require.NoError(t, parser.ParseFS(context.TODO(), "."))
-
-	modules, _, err := parser.EvaluateAll(context.TODO())
-	require.NoError(t, err)
-
-	assert.Len(t, modules, 1)
-
-	buckets := modules.GetResourcesByType("aws_s3_bucket")
-	assert.Len(t, buckets, 1)
-
-	attr, _ := buckets[0].GetNestedAttribute("versioning.enabled")
-
-	assert.True(t, attr.Value().True())
-}
-
 func Test_AWSRegionNameDefined(t *testing.T) {
 
 	fs := testutil.CreateFS(t, map[string]string{
diff --git a/pkg/iac/terraform/attribute.go b/pkg/iac/terraform/attribute.go
index 39161a72a379..9c5536357283 100644
--- a/pkg/iac/terraform/attribute.go
+++ b/pkg/iac/terraform/attribute.go
@@ -729,15 +729,16 @@ func (a *Attribute) IsTrue() bool {
 	if a == nil {
 		return false
 	}
-	switch a.Value().Type() {
+	val := a.Value()
+	switch val.Type() {
 	case cty.Bool:
-		return a.Value().True()
+		return val.True()
 	case cty.String:
-		val := a.Value().AsString()
+		val := val.AsString()
 		val = strings.Trim(val, "\"")
 		return strings.EqualFold(val, "true")
 	case cty.Number:
-		val := a.Value().AsBigFloat()
+		val := val.AsBigFloat()
 		f, _ := val.Float64()
 		return f > 0
 	}
diff --git a/pkg/iac/terraform/block.go b/pkg/iac/terraform/block.go
index dbf7352959d0..dd6d8446c124 100644
--- a/pkg/iac/terraform/block.go
+++ b/pkg/iac/terraform/block.go
@@ -1,6 +1,7 @@
 package terraform
 
 import (
+	"errors"
 	"fmt"
 	"io/fs"
 	"strconv"
@@ -137,16 +138,15 @@ func (b *Block) GetRawValue() any {
 	return nil
 }
 
-func (b *Block) InjectBlock(block *Block, name string) {
-	block.hclBlock.Labels = []string{}
-	block.hclBlock.Type = name
+func (b *Block) injectBlock(block *Block) {
 	for attrName, attr := range block.Attributes() {
-		b.context.Root().SetByDot(attr.Value(), fmt.Sprintf("%s.%s.%s", b.reference.String(), name, attrName))
+		path := fmt.Sprintf("%s.%s.%s", b.reference.String(), block.hclBlock.Type, attrName)
+		b.context.Root().SetByDot(attr.Value(), path)
 	}
 	b.childBlocks = append(b.childBlocks, block)
 }
 
-func (b *Block) MarkExpanded() {
+func (b *Block) markExpanded() {
 	b.expanded = true
 }
 
@@ -154,17 +154,26 @@ func (b *Block) IsExpanded() bool {
 	return b.expanded
 }
 
-func (b *Block) Clone(index cty.Value) *Block {
-	var childCtx *context.Context
-	if b.context != nil {
-		childCtx = b.context.NewChild()
-	} else {
-		childCtx = context.NewContext(&hcl.EvalContext{}, nil)
+func (b *Block) inherit(ctx *context.Context, index ...cty.Value) *Block {
+	return NewBlock(b.copyBlock(), ctx, b.moduleBlock, b.parentBlock, b.moduleSource, b.moduleFS, index...)
+}
+
+func (b *Block) copyBlock() *hcl.Block {
+	hclBlock := *b.hclBlock
+	return &hclBlock
+}
+
+func (b *Block) childContext() *context.Context {
+	if b.context == nil {
+		return context.NewContext(&hcl.EvalContext{}, nil)
 	}
+	return b.context.NewChild()
+}
 
-	cloneHCL := *b.hclBlock
+func (b *Block) Clone(index cty.Value) *Block {
+	childCtx := b.childContext()
+	clone := b.inherit(childCtx, index)
 
-	clone := NewBlock(&cloneHCL, childCtx, b.moduleBlock, b.parentBlock, b.moduleSource, b.moduleFS, index)
 	if len(clone.hclBlock.Labels) > 0 {
 		position := len(clone.hclBlock.Labels) - 1
 		labels := make([]string, len(clone.hclBlock.Labels))
@@ -188,7 +197,7 @@ func (b *Block) Clone(index cty.Value) *Block {
 	}
 	indexVal, _ := gocty.ToCtyValue(index, cty.Number)
 	clone.context.SetByDot(indexVal, "count.index")
-	clone.MarkExpanded()
+	clone.markExpanded()
 	b.cloneIndex++
 	return clone
 }
@@ -446,6 +455,17 @@ func (b *Block) LocalName() string {
 	return b.reference.String()
 }
 
+func (b *Block) FullLocalName() string {
+	if b.parentBlock != nil {
+		return fmt.Sprintf(
+			"%s.%s",
+			b.parentBlock.FullLocalName(),
+			b.LocalName(),
+		)
+	}
+	return b.LocalName()
+}
+
 func (b *Block) FullName() string {
 
 	if b.moduleBlock != nil {
@@ -576,3 +596,118 @@ func (b *Block) IsNil() bool {
 func (b *Block) IsNotNil() bool {
 	return !b.IsNil()
 }
+
+func (b *Block) ExpandBlock() error {
+	var (
+		expanded []*Block
+		errs     []error
+	)
+
+	for _, child := range b.childBlocks {
+		if child.Type() == "dynamic" {
+			blocks, err := child.expandDynamic()
+			if err != nil {
+				errs = append(errs, err)
+				continue
+			}
+			expanded = append(expanded, blocks...)
+		}
+	}
+
+	for _, block := range expanded {
+		b.injectBlock(block)
+	}
+
+	return errors.Join(errs...)
+}
+
+func (b *Block) expandDynamic() ([]*Block, error) {
+	if b.IsExpanded() || b.Type() != "dynamic" {
+		return nil, nil
+	}
+
+	realBlockType := b.TypeLabel()
+	if realBlockType == "" {
+		return nil, errors.New("dynamic block must have 1 label")
+	}
+
+	forEachVal, err := b.validateForEach()
+	if err != nil {
+		return nil, fmt.Errorf("invalid for-each in %s block: %w", b.FullLocalName(), err)
+	}
+
+	var (
+		expanded []*Block
+		errs     []error
+	)
+
+	forEachVal.ForEachElement(func(key, val cty.Value) (stop bool) {
+		if val.IsNull() {
+			return
+		}
+
+		iteratorName, err := b.iteratorName(realBlockType)
+		if err != nil {
+			errs = append(errs, err)
+			return
+		}
+
+		forEachCtx := b.childContext()
+		obj := cty.ObjectVal(map[string]cty.Value{
+			"key":   key,
+			"value": val,
+		})
+		forEachCtx.Set(obj, iteratorName)
+
+		if content := b.GetBlock("content"); content != nil {
+			inherited := content.inherit(forEachCtx)
+			inherited.hclBlock.Labels = []string{}
+			inherited.hclBlock.Type = realBlockType
+			if err := inherited.ExpandBlock(); err != nil {
+				errs = append(errs, err)
+				return
+			}
+			expanded = append(expanded, inherited)
+		}
+		return
+	})
+
+	if len(expanded) > 0 {
+		b.markExpanded()
+	}
+
+	return expanded, errors.Join(errs...)
+}
+
+func (b *Block) validateForEach() (cty.Value, error) {
+	forEachAttr := b.GetAttribute("for_each")
+	if forEachAttr == nil {
+		return cty.NilVal, errors.New("for_each attribute required")
+	}
+
+	forEachVal := forEachAttr.Value()
+
+	if !forEachVal.CanIterateElements() {
+		return cty.NilVal, fmt.Errorf("cannot use a %s value in for_each. An iterable collection is required", forEachVal.GoString())
+	}
+
+	return forEachVal, nil
+}
+
+func (b *Block) iteratorName(blockType string) (string, error) {
+	iteratorAttr := b.GetAttribute("iterator")
+	if iteratorAttr == nil {
+		return blockType, nil
+	}
+
+	traversal, diags := hcl.AbsTraversalForExpr(iteratorAttr.hclAttribute.Expr)
+	if diags.HasErrors() {
+		return "", diags
+	}
+
+	if len(traversal) != 1 {
+		return "", fmt.Errorf("dynamic iterator must be a single variable name")
+	}
+
+	return traversal.RootName(), nil
+}