diff --git a/README.md b/README.md
index c5cbc3ac..5be1765d 100644
--- a/README.md
+++ b/README.md
@@ -75,6 +75,15 @@ steps:
 - run: echo ${{ steps.plan.outputs.exitcode }}
 ```
 
+Temporary directory could be deleted after all steps by setting the `cleanup_workspace` variable to `true`:
+
+```yaml
+steps:
+- uses: hashicorp/setup-terraform@v3
+  with:
+     cleanup_workspace: true
+```
+
 Outputs can be used in subsequent steps to comment on the pull request:
 
 > **Notice:** There's a limit to the number of characters inside a GitHub comment (65535).
@@ -254,6 +263,8 @@ The action supports the following inputs:
 - `terraform_wrapper` - (optional) Whether to install a wrapper to wrap subsequent calls of
    the `terraform` binary and expose its STDOUT, STDERR, and exit code as outputs
    named `stdout`, `stderr`, and `exitcode` respectively. Defaults to `true`.
+- `cleanup_workspace` - (optional) The Terraform binary file is downloaded to a temporary directory.
+   This parameter will be used to clean that directory. Defaults to `true`.
 
 ## Outputs
 
diff --git a/action.yml b/action.yml
index 9009be1c..fa6d4d10 100644
--- a/action.yml
+++ b/action.yml
@@ -17,9 +17,15 @@ inputs:
     description: 'Whether or not to install a wrapper to wrap subsequent calls of the `terraform` binary and expose its STDOUT, STDERR, and exit code as outputs named `stdout`, `stderr`, and `exitcode` respectively. Defaults to `true`.'
     default: 'true'
     required: false
+  cleanup_workspace:
+    description: 'The Terraform binary file is downloaded to a temporary directory. This parameter will be used to clean that directory. Defaults to `true`.'
+    default: 'false'
+    required: false
 runs:
   using: 'node20'
   main: 'dist/index.js'
+  post: 'dist/cleanup.js'
+  post-if: cleanup_workspace
 branding:
   icon: 'terminal'
   color: 'purple'
diff --git a/dist/cleanup.js b/dist/cleanup.js
new file mode 100644
index 00000000..789c829a
--- /dev/null
+++ b/dist/cleanup.js
@@ -0,0 +1,37 @@
+/**
+ * Copyright (c) HashiCorp, Inc.
+ * SPDX-License-Identifier: MPL-2.0
+ */
+
+const fs = require('fs');
+const path = require('path');
+
+// Retrieve environment variables and parameters
+const terraformCliPath = process.env.TERRAFORM_CLI_PATH;
+
+// Function to recursively delete a directory
+const deleteDirectoryRecursive = function(directoryPath) {
+    if (fs.existsSync(directoryPath)) {
+        fs.readdirSync(directoryPath).forEach((file) => {
+            const curPath = path.join(directoryPath, file);
+            if (fs.lstatSync(curPath).isDirectory()) {
+                // Recurse
+                deleteDirectoryRecursive(curPath);
+            } else {
+                // Delete file
+                fs.unlinkSync(curPath);
+            }
+        });
+        fs.rmdirSync(directoryPath);
+    }
+};
+
+
+// Check if cleanup is required
+if (terraformCliPath) {
+    console.log(`Cleaning up directory: ${terraformCliPath}`);
+    deleteDirectoryRecursive(terraformCliPath);
+    console.log('Cleanup completed.');
+} else {
+    console.log('No cleanup required.');
+}