diff --git a/provisioner/terraform/serve.go b/provisioner/terraform/serve.go
index 4e0dd87189..66e819fbdb 100644
--- a/provisioner/terraform/serve.go
+++ b/provisioner/terraform/serve.go
@@ -16,9 +16,9 @@ import (
 
 // This is the exact version of Terraform used internally
 // when Terraform is missing on the system.
-var terraformVersion = version.Must(version.NewVersion("1.1.9"))
+var terraformVersion = version.Must(version.NewVersion("1.2.1"))
 var minTerraformVersion = version.Must(version.NewVersion("1.1.0"))
-var maxTerraformVersion = version.Must(version.NewVersion("1.2.0"))
+var maxTerraformVersion = version.Must(version.NewVersion("1.2.1"))
 
 var (
 	// The minimum version of Terraform supported by the provisioner.
@@ -67,7 +67,7 @@ func absoluteBinaryPath(ctx context.Context) (string, error) {
 		return "", xerrors.Errorf("Terraform binary get version failed: %w", err)
 	}
 
-	if version.LessThan(minTerraformVersion) || version.GreaterThanOrEqual(maxTerraformVersion) {
+	if version.LessThan(minTerraformVersion) || version.GreaterThan(maxTerraformVersion) {
 		return "", terraformMinorVersionMismatch
 	}