diff --git a/changelogs/fragments/10961-terraform-complexvars-null-bugfix.yaml b/changelogs/fragments/10961-terraform-complexvars-null-bugfix.yaml
new file mode 100644
index 0000000000..284da1f888
--- /dev/null
+++ b/changelogs/fragments/10961-terraform-complexvars-null-bugfix.yaml
@@ -0,0 +1,2 @@
+bugfixes:
+ - terraform - fix bug when ``null`` values inside complex vars are throwing error instead of being passed to terraform. Now terraform can handle ``null``s in ``complex_vars`` itself (https://github.com/ansible-collections/community.general/pull/10961).
diff --git a/plugins/modules/terraform.py b/plugins/modules/terraform.py
index 6a8ba58974..05bbf140c4 100644
--- a/plugins/modules/terraform.py
+++ b/plugins/modules/terraform.py
@@ -548,7 +548,9 @@ def main():
         command.append('-parallelism=%d' % module.params.get('parallelism'))
 
     def format_args(vars):
-        if isinstance(vars, str):
+        if vars is None:
+            return 'null'
+        elif isinstance(vars, str):
             return '"{string}"'.format(string=vars.replace('\\', '\\\\').replace('"', '\\"')).replace('\n', '\\n')
         elif isinstance(vars, bool):
             if vars:
@@ -565,7 +567,7 @@ def main():
                     ret_out.append('{0}={{{1}}}'.format(k, process_complex_args(v)))
                 elif isinstance(v, list):
                     ret_out.append("{0}={1}".format(k, process_complex_args(v)))
-                elif isinstance(v, (integer_types, float, str, bool)):
+                elif isinstance(v, (integer_types, float, str, bool)) or v is None:
                     ret_out.append('{0}={1}'.format(k, format_args(v)))
                 else:
                     # only to handle anything unforeseen
@@ -577,7 +579,7 @@ def main():
                     l_out.append("{{{0}}}".format(process_complex_args(item)))
                 elif isinstance(item, list):
                     l_out.append("{0}".format(process_complex_args(item)))
-                elif isinstance(item, (str, integer_types, float, bool)):
+                elif isinstance(item, (str, integer_types, float, bool)) or item is None:
                     l_out.append(format_args(item))
                 else:
                     # only to handle anything unforeseen