diff --git a/terraform-apply/README.md b/terraform-apply/README.md
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+# terraform-apply
+
+Apply Terraform configuration files using the official Terraform CLI.
+
+## Inputs
+
+| Input | Required | Default | Description |
+|-------|----------|---------|-------------|
+| `terraform-dir` | No | `terraform` | Directory containing `.tf` files |
+| `terraform-version` | No | `~1.15` | Terraform version to use |
+| `var-file` | No | `""` | Path to `.tfvars` file, relative to `terraform-dir` |
+| `workspace` | No | `""` | Terraform workspace to select |
+| `jfrog-token` | No | `""` | JFrog Artifactory token for the Terraform provider registry (`TF_TOKEN_schmalz_jfrog_io`) |
+
+## Usage
+
+```yaml
+- uses: https://schmalz-git.git.onstackit.cloud/schmalz/shared-actions/terraform-apply@terraform-apply-v1
+  with:
+    workspace: stage
+    var-file: stage.tfvars
+    jfrog-token: ${{ secrets.JFROG_TOKEN }}
+```
+
+## Notes
+
+- Runs `terraform init`, selects the workspace (if provided), and applies with `-auto-approve`.
+- Sets `TF_TOKEN_schmalz_jfrog_io` on both `init` and `apply` steps if `jfrog-token` is provided.
+- If `var-file` is provided, it is passed as `-var-file` to the apply command.
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diff --git a/terraform-apply/action.yml b/terraform-apply/action.yml
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+name: Terraform Apply
+description: >
+  Init and apply Terraform configuration files using the official Terraform CLI.
+
+inputs:
+  terraform-dir:
+    description: Directory containing .tf files
+    required: false
+    default: terraform
+  terraform-version:
+    description: Terraform version to use
+    required: false
+    default: "~1.15"
+  var-file:
+    description: Path to .tfvars file, relative to terraform-dir
+    required: false
+    default: ""
+  workspace:
+    description: Terraform workspace to use
+    required: false
+    default: ""
+  jfrog-token:
+    description: JFrog Artifactory token used for Terraform provider registry (sets TF_TOKEN_schmalz_jfrog_io)
+    required: false
+    default: ""
+
+runs:
+  using: composite
+  steps:
+    # Pinned to commit SHA instead of a tag to prevent supply chain attacks.
+    # hashicorp/setup-terraform v4.0.0 — https://github.com/hashicorp/setup-terraform/commits/v4.0.0/
+    - name: Setup Terraform
+      uses: hashicorp/setup-terraform@5e8dbf3c6d9deaf4193ca7a8fb23f2ac83bb6c85
+      with:
+        terraform_version: ${{ inputs.terraform-version }}
+
+    - name: Terraform Init
+      shell: bash
+      env:
+        TF_TOKEN_schmalz_jfrog_io: ${{ inputs.jfrog-token }}
+        TF_DIR: ${{ inputs.terraform-dir }}
+      run: terraform -chdir="$TF_DIR" init -no-color
+
+    - name: Terraform Select Workspace
+      if: ${{ inputs.workspace != '' }}
+      shell: bash
+      env:
+        TF_DIR: ${{ inputs.terraform-dir }}
+        TF_WORKSPACE_NAME: ${{ inputs.workspace }}
+      run: |
+        terraform -chdir="$TF_DIR" workspace select "$TF_WORKSPACE_NAME"
+
+    - name: Terraform Apply
+      shell: bash
+      env:
+        TF_TOKEN_schmalz_jfrog_io: ${{ inputs.jfrog-token }}
+        TF_DIR: ${{ inputs.terraform-dir }}
+        VAR_FILE: ${{ inputs.var-file }}
+      run: |
+        ARGS="-auto-approve -no-color"
+        if [ -n "$VAR_FILE" ]; then
+          ARGS="$ARGS -var-file=$VAR_FILE"
+        fi
+        terraform -chdir="$TF_DIR" apply $ARGS
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