diff --git a/changelogs/fragments/65044-fix-terraform-no-workspace.yaml b/changelogs/fragments/65044-fix-terraform-no-workspace.yaml
new file mode 100644
index 0000000000..3fc9f5918d
--- /dev/null
+++ b/changelogs/fragments/65044-fix-terraform-no-workspace.yaml
@@ -0,0 +1,2 @@
+bugfixes:
+- terraform module - fixes usage for providers not supporting workspaces
diff --git a/lib/ansible/modules/cloud/misc/terraform.py b/lib/ansible/modules/cloud/misc/terraform.py
index 3b7ad647d6..90b47c5bcc 100644
--- a/lib/ansible/modules/cloud/misc/terraform.py
+++ b/lib/ansible/modules/cloud/misc/terraform.py
@@ -209,7 +209,7 @@ def get_workspace_context(bin_path, project_path):
     command = [bin_path, 'workspace', 'list', '-no-color']
     rc, out, err = module.run_command(command, cwd=project_path)
     if rc != 0:
-        module.fail_json(msg="Failed to list Terraform workspaces:\r\n{0}".format(err))
+        module.warn("Failed to list Terraform workspaces:\r\n{0}".format(err))
     for item in out.split('\n'):
         stripped_item = item.strip()
         if not stripped_item: