diff --git a/src/extension.ts b/src/extension.ts
index 06c66ac331..4b18bbfe96 100644
--- a/src/extension.ts
+++ b/src/extension.ts
@@ -35,6 +35,7 @@ import { TerraformLSCommands } from './commands/terraformls';
 import { TerraformCommands } from './commands/terraform';
 import * as lsStatus from './status/language';
 import { TerraformCloudFeature } from './features/terraformCloud';
+import { TerminalLinkProvider } from './providers/terminalLinkProvider';
 
 const id = 'terraform';
 const brand = `HashiCorp Terraform`;
@@ -216,6 +217,9 @@ export async function activate(context: vscode.ExtensionContext): Promise<void>
   } catch (error) {
     await handleLanguageClientStartError(error, context, reporter);
   }
+
+  const provider = new TerminalLinkProvider(client);
+  context.subscriptions.push(vscode.window.registerTerminalLinkProvider(provider));
 }
 
 export async function deactivate(): Promise<void> {
diff --git a/src/providers/terminalLinkProvider.ts b/src/providers/terminalLinkProvider.ts
new file mode 100644
index 0000000000..4ff468731d
--- /dev/null
+++ b/src/providers/terminalLinkProvider.ts
@@ -0,0 +1,95 @@
+import * as vscode from 'vscode';
+import { ExecuteCommandParams, ExecuteCommandRequest } from 'vscode-languageclient';
+import { LanguageClient } from 'vscode-languageclient/node';
+
+export class TerminalLinkProvider implements vscode.TerminalLinkProvider {
+  constructor(private client: LanguageClient) {}
+
+  async handleTerminalLink(link: TerraformTerminalLink): Promise<void> {
+    const document = await vscode.workspace.openTextDocument(link.uri);
+    await vscode.window.showTextDocument(document, { selection: link.range });
+  }
+
+  async provideTerminalLinks(
+    context: vscode.TerminalLinkContext,
+    token: vscode.CancellationToken,
+  ): Promise<vscode.TerminalLink[]> {
+    const links: vscode.TerminalLink[] = [];
+
+    //   # docker_image.nginx will be created
+    const potential = context.line.trimStart();
+    if (!potential.startsWith('#')) {
+      return links;
+    }
+    let address = potential.split(' ')[1];
+    const startIndex = potential.indexOf(address);
+    const endIndex = startIndex + address.length;
+
+    if (address.startsWith('module')) {
+      address = 'module.' + address.split('.')[1];
+    }
+
+    // TODO: Figure out cwd to send as moduleDir
+    // this isn't ideal, but it's the only way to get the folder for the terminal
+    // right now. terminal doesn't reliably expose the cwd in all cases
+    let folder: vscode.Uri | vscode.WorkspaceFolder | undefined;
+    if ('cwd' in context.terminal.creationOptions && context.terminal.creationOptions.cwd) {
+      folder = vscode.workspace.getWorkspaceFolder(
+        typeof context.terminal.creationOptions.cwd === 'string'
+          ? vscode.Uri.file(context.terminal.creationOptions.cwd)
+          : context.terminal.creationOptions.cwd,
+      );
+    } else {
+      folder = vscode.workspace.workspaceFolders?.[0].uri;
+    }
+    const modDir = vscode.Uri.parse(folder?.toString() ?? '');
+
+    const params: ExecuteCommandParams = {
+      command: 'terraform-ls.terraform.plan.lookup',
+      arguments: [`uri=${modDir.toString()}`, `line=${address}`],
+    };
+
+    const response = await this.client.sendRequest<ExecuteCommandParams, TerraformPlanLookupResponse, void>(
+      ExecuteCommandRequest.type,
+      params,
+    );
+    if (!response || !response.fileUri || !response.range) {
+      return links;
+    }
+
+    const uri = vscode.Uri.parse(response.fileUri);
+    const range = new vscode.Range(
+      response.range.startLine,
+      response.range.startCharacter,
+      response.range.endLine,
+      response.range.endCharacter,
+    );
+
+    links.push(new TerraformTerminalLink(startIndex, endIndex, 'Open the file', uri, range));
+
+    return links;
+  }
+}
+
+class TerraformTerminalLink extends vscode.TerminalLink {
+  constructor(
+    startIndex: number,
+    endIndex: number,
+    tooltip: string,
+    public uri: vscode.Uri,
+    public range: vscode.Range,
+  ) {
+    super(startIndex, endIndex, tooltip);
+  }
+}
+
+interface TerraformPlanLookupResponse {
+  v: number;
+  range: {
+    startLine: number;
+    startCharacter: number;
+    endLine: number;
+    endCharacter: number;
+  };
+  fileUri: string;
+}