diff --git a/terraform/spec/dependabot/terraform/file_updater_spec.rb b/terraform/spec/dependabot/terraform/file_updater_spec.rb
index 05c7326adf..328a312c4d 100644
--- a/terraform/spec/dependabot/terraform/file_updater_spec.rb
+++ b/terraform/spec/dependabot/terraform/file_updater_spec.rb
@@ -76,6 +76,52 @@ module "s3-webapp" {
       end
     end
 
+    context "with a private module with v prefix" do
+      let(:project_name) { "private_module_with_v_prefix" }
+
+      let(:dependencies) do
+        [
+          Dependabot::Dependency.new(
+            name: "example-org-5d3190/s3-webapp/aws",
+            version: "2.0.0",
+            previous_version: "v1.0.0",
+            requirements: [{
+              requirement: "2.0.0",
+              groups: [],
+              file: "main.tf",
+              source: {
+                type: "registry",
+                registry_hostname: "app.terraform.io",
+                module_identifier: "example-org-5d3190/s3-webapp/aws"
+              }
+            }],
+            previous_requirements: [{
+              requirement: "v1.0.0",
+              groups: [],
+              file: "main.tf",
+              source: {
+                type: "registry",
+                registry_hostname: "app.terraform.io",
+                module_identifier: "example-org-5d3190/s3-webapp/aws"
+              }
+            }],
+            package_manager: "terraform"
+          )
+        ]
+      end
+
+      it "updates the private module version and drops the v prefix" do
+        updated_file = subject.find { |file| file.name == "main.tf" }
+
+        expect(updated_file.content).to include(<<~HCL)
+          module "s3-webapp" {
+            source  = "app.terraform.io/example-org-5d3190/s3-webapp/aws"
+            version = "2.0.0"
+          }
+        HCL
+      end
+    end
+
     context "with a private provider" do
       let(:project_name) { "private_provider" }
 
@@ -346,6 +392,52 @@ module "consul" {
         end
       end
 
+      context "with a legacy registry dependency with v prefix" do
+        let(:project_name) { "registry_with_v_prefix" }
+        let(:dependencies) do
+          [
+            Dependabot::Dependency.new(
+              name: "hashicorp/consul/aws",
+              version: "0.3.1",
+              previous_version: "v0.1.0",
+              requirements: [{
+                requirement: "0.3.1",
+                groups: [],
+                file: "main.tf",
+                source: {
+                  type: "registry",
+                  registry_hostname: "registry.terraform.io",
+                  module_identifier: "hashicorp/consul/aws"
+                }
+              }],
+              previous_requirements: [{
+                requirement: "v0.1.0",
+                groups: [],
+                file: "main.tf",
+                source: {
+                  type: "registry",
+                  registry_hostname: "registry.terraform.io",
+                  module_identifier: "hashicorp/consul/aws"
+                }
+              }],
+              package_manager: "terraform"
+            )
+          ]
+        end
+
+        it "updates the requirement and drops the v prefix" do
+          updated_file = subject.find { |file| file.name == "main.tf" }
+
+          expect(updated_file.content).to include(
+            <<~DEP
+              module "consul" {
+                source = "hashicorp/consul/aws"
+                version = "0.3.1"
+            DEP
+          )
+        end
+      end
+
       context "with an hcl2-based registry dependency" do
         let(:project_name) { "registry_012" }
         let(:dependencies) do
@@ -393,6 +485,52 @@ module "consul" {
       end
     end
 
+    context "with an hcl2-based registry dependency with a v prefix" do
+      let(:project_name) { "registry_012_with_v_prefix" }
+      let(:dependencies) do
+        [
+          Dependabot::Dependency.new(
+            name: "hashicorp/consul/aws",
+            version: "0.3.1",
+            previous_version: "v0.1.0",
+            requirements: [{
+              requirement: "0.3.1",
+              groups: [],
+              file: "main.tf",
+              source: {
+                type: "registry",
+                registry_hostname: "registry.terraform.io",
+                module_identifier: "hashicorp/consul/aws"
+              }
+            }],
+            previous_requirements: [{
+              requirement: "v0.1.0",
+              groups: [],
+              file: "main.tf",
+              source: {
+                type: "registry",
+                registry_hostname: "registry.terraform.io",
+                module_identifier: "hashicorp/consul/aws"
+              }
+            }],
+            package_manager: "terraform"
+          )
+        ]
+      end
+
+      it "updates the requirement and drops the v prefix" do
+        updated_file = subject.find { |file| file.name == "main.tf" }
+
+        expect(updated_file.content).to include(
+          <<~DEP
+            module "consul" {
+              source  = "hashicorp/consul/aws"
+              version = "0.3.1"
+          DEP
+        )
+      end
+    end
+
     context "with an hcl-based terragrunt file" do
       let(:project_name) { "terragrunt_hcl" }
 
@@ -872,6 +1010,53 @@ module "github_terraform" {
       end
     end
 
+    describe "for a nested module with a v prefix" do
+      let(:project_name) { "nested_modules_with_v_prefix" }
+      let(:dependencies) do
+        [
+          Dependabot::Dependency.new(
+            name: "terraform-aws-modules/iam/aws",
+            version: "4.1.0",
+            previous_version: "v4.0.0",
+            requirements: [{
+              requirement: "4.1.0",
+              groups: [],
+              file: "main.tf",
+              source: {
+                type: "registry",
+                registry_hostname: "registry.terraform.io",
+                module_identifier: "iam/aws"
+              }
+            }],
+            previous_requirements: [{
+              requirement: "v4.0.0",
+              groups: [],
+              file: "main.tf",
+              source: {
+                type: "registry",
+                registry_hostname: "registry.terraform.io",
+                module_identifier: "iam/aws"
+              }
+            }],
+            package_manager: "terraform"
+          )
+        ]
+      end
+
+      it "updates the requirement and drops the v prefix" do
+        updated_file = subject.find { |file| file.name == "main.tf" }
+
+        expect(updated_file.content).to include(
+          <<~DEP
+            module "github_terraform" {
+              source  = "terraform-aws-modules/iam/aws//modules/iam-assumable-role"
+              version = "4.1.0"
+            }
+          DEP
+        )
+      end
+    end
+
     describe "with a lockfile and modules that need to be installed" do
       let(:project_name) { "lockfile_with_modules" }
       let(:dependencies) do
@@ -965,6 +1150,53 @@ module "caf" {
       end
     end
 
+    describe "when updating a module with a v prefix in a project with a provider lockfile" do
+      let(:project_name) { "lockfile_with_modules_with_v_prefix" }
+      let(:dependencies) do
+        [
+          Dependabot::Dependency.new(
+            name: "aztfmod/caf/azurerm",
+            version: "5.3.10",
+            previous_version: "v5.1.0",
+            requirements: [{
+              requirement: "5.3.10",
+              groups: [],
+              file: "caf_module.tf",
+              source: {
+                type: "registry",
+                registry_hostname: "registry.terraform.io",
+                module_identifier: "aztfmod/caf/azurerm"
+              }
+            }],
+            previous_requirements: [{
+              requirement: "v5.1.0",
+              groups: [],
+              file: "caf_module.tf",
+              source: {
+                type: "registry",
+                registry_hostname: "registry.terraform.io",
+                module_identifier: "aztfmod/caf/azurerm"
+              }
+            }],
+            package_manager: "terraform"
+          )
+        ]
+      end
+
+      it "updates the module version and drops the v prefix" do
+        module_file = subject.find { |file| file.name == "caf_module.tf" }
+
+        expect(module_file.content).to include(
+          <<~DEP
+            module "caf" {
+              source  = "aztfmod/caf/azurerm"
+              version = "5.3.10"
+            }
+          DEP
+        )
+      end
+    end
+
     describe "when updating a provider with local path modules" do
       let(:project_name) { "provider_with_local_path_modules" }
       let(:dependencies) do
diff --git a/terraform/spec/fixtures/projects/lockfile_with_modules_with_v_prefix/.terraform.lock.hcl b/terraform/spec/fixtures/projects/lockfile_with_modules_with_v_prefix/.terraform.lock.hcl
new file mode 100644
index 0000000000..29b0caf8ce
--- /dev/null
+++ b/terraform/spec/fixtures/projects/lockfile_with_modules_with_v_prefix/.terraform.lock.hcl
@@ -0,0 +1,22 @@
+# This file is maintained automatically by "terraform init".
+# Manual edits may be lost in future updates.
+
+provider "registry.terraform.io/integrations/github" {
+  version     = "4.4.0"
+  constraints = "~> 4.4"
+  hashes = [
+    "h1:dgn+oL1cC8kz3ODIuT/PyHqgso00SpItPN089ZuUGt4=",
+    "h1:eKArqtLcYoYUFf4dgNzVemqu2GsoEf7K0ZLEXjSoPBo=",
+    "zh:0ebb07c4971ca7d60fce8614270d056328a121fd4ffbda4b29a06d4a1e90e939",
+    "zh:178b333f2f285c1a59b9335320f584bd01304179c2d6a1919366945b55cfb293",
+    "zh:2c9087e987a5e1af2aad803a79fa5bd847ac060d4c766b5a187b9aabb3f734a4",
+    "zh:419597d8d284616ed93a2c13b3833b129aaba7af7a057d2f48aeb7bc3610cefc",
+    "zh:61686d578880ad76cb8e9c2cc72ad14ef2896fde973cca18b8f7c8848781c71d",
+    "zh:662e125ac42a0c113d811afd2e7a0f81ba061f00cc62ba7435bd685f889290b9",
+    "zh:87fb3d97070cae7f0b623d1a9b59e8cfad0dfece4a27ee964c4c77f228592a80",
+    "zh:e9dcc85ef2f2e09d298f3bbbb9b0d673596d62c1d7d480b2999b4badb2f4aeff",
+    "zh:f052c377a0630a6881c183ac5de0dbef4e5627638a23434a6aa7fce8977b43de",
+    "zh:f7456ec2a6a31caa5d2c85f4da660689f8bac5541c70324803de0c26a14586e1",
+    "zh:fbf6bfddde6f209dc65052ca27e0c83e96bae5fde6940edf029ca42e7e4f1110",
+  ]
+}
diff --git a/terraform/spec/fixtures/projects/lockfile_with_modules_with_v_prefix/caf_module.tf b/terraform/spec/fixtures/projects/lockfile_with_modules_with_v_prefix/caf_module.tf
new file mode 100644
index 0000000000..15c92f1e64
--- /dev/null
+++ b/terraform/spec/fixtures/projects/lockfile_with_modules_with_v_prefix/caf_module.tf
@@ -0,0 +1,4 @@
+module "caf" {
+  source  = "aztfmod/caf/azurerm"
+  version = "v5.1.0"
+}
diff --git a/terraform/spec/fixtures/projects/lockfile_with_modules_with_v_prefix/versions.tf b/terraform/spec/fixtures/projects/lockfile_with_modules_with_v_prefix/versions.tf
new file mode 100644
index 0000000000..bb84e4dfe6
--- /dev/null
+++ b/terraform/spec/fixtures/projects/lockfile_with_modules_with_v_prefix/versions.tf
@@ -0,0 +1,9 @@
+terraform {
+  required_providers {
+    github = {
+      source  = "integrations/github"
+      version = "~> 4.4, <= 4.12.0"
+    }
+  }
+  required_version = ">= v0.14"
+}
diff --git a/terraform/spec/fixtures/projects/nested_modules_with_v_prefix/main.tf b/terraform/spec/fixtures/projects/nested_modules_with_v_prefix/main.tf
new file mode 100644
index 0000000000..4c092f6481
--- /dev/null
+++ b/terraform/spec/fixtures/projects/nested_modules_with_v_prefix/main.tf
@@ -0,0 +1,4 @@
+module "github_terraform" {
+  source  = "terraform-aws-modules/iam/aws//modules/iam-assumable-role"
+  version = "v4.0.0"
+}
diff --git a/terraform/spec/fixtures/projects/private_module_with_v_prefix/main.tf b/terraform/spec/fixtures/projects/private_module_with_v_prefix/main.tf
new file mode 100644
index 0000000000..ab94e798a4
--- /dev/null
+++ b/terraform/spec/fixtures/projects/private_module_with_v_prefix/main.tf
@@ -0,0 +1,4 @@
+module "s3-webapp" {
+  source  = "app.terraform.io/example-org-5d3190/s3-webapp/aws"
+  version = "v1.0.0"
+}
diff --git a/terraform/spec/fixtures/projects/registry_012_with_v_prefix/main.tf b/terraform/spec/fixtures/projects/registry_012_with_v_prefix/main.tf
new file mode 100644
index 0000000000..d7fef2bb70
--- /dev/null
+++ b/terraform/spec/fixtures/projects/registry_012_with_v_prefix/main.tf
@@ -0,0 +1,29 @@
+module "consul" {
+  source  = "hashicorp/consul/aws"
+  version = "v0.1.0"
+}
+
+module "vpc" {
+  source  = "app.terraform.io/example_corp/vpc/aws"
+  version = "v0.9.3"
+}
+
+module "rds" {
+  source  = "terraform-aws-modules/rds/aws"
+  version = "~> v1.0.0"
+}
+
+module "members-github" {
+  source = "devops-workflow/members/github"
+}
+
+module "merged" {
+  source = "mongodb/ecs-task-definition/aws//modules/merge"
+
+  container_definitions = [
+    var.web_container_definition,
+    module.xray.container_definitions,
+    module.reverse_proxy.container_definitions,
+    module.datadog.container_definitions,
+  ]
+}
diff --git a/terraform/spec/fixtures/projects/registry_with_v_prefix/main.tf b/terraform/spec/fixtures/projects/registry_with_v_prefix/main.tf
new file mode 100644
index 0000000000..1b9d5c5b4a
--- /dev/null
+++ b/terraform/spec/fixtures/projects/registry_with_v_prefix/main.tf
@@ -0,0 +1,29 @@
+module "consul" {
+  source = "hashicorp/consul/aws"
+  version = "v0.1.0"
+}
+
+module "vpc" {
+  source = "app.terraform.io/example_corp/vpc/aws"
+  version = "v0.9.3"
+}
+
+module "rds" {
+  source = "terraform-aws-modules/rds/aws"
+  version = "~> v1.0.0"
+}
+
+module "members-github" {
+  source = "devops-workflow/members/github"
+}
+
+module "merged" {
+  source = "mongodb/ecs-task-definition/aws//modules/merge"
+
+  container_definitions = [
+    "${var.web_container_definition}",
+    "${module.xray.container_definitions}",
+    "${module.reverse_proxy.container_definitions}",
+    "${module.datadog.container_definitions}",
+  ]
+}