diff --git a/docs/examples/terraform/cloud-resource-provision-and-consume/application-aws-s3.yaml b/docs/examples/terraform/cloud-resource-provision-and-consume/application-aws-s3.yaml
new file mode 100644
index 000000000..1bbeda59b
--- /dev/null
+++ b/docs/examples/terraform/cloud-resource-provision-and-consume/application-aws-s3.yaml
@@ -0,0 +1,14 @@
+apiVersion: core.oam.dev/v1beta1
+kind: Application
+metadata:
+  name: app-aws-s3
+spec:
+  components:
+    - name: sample-s3
+      type: aws-s3
+      properties:
+        bucket: vela-website-202110191745
+        acl: private
+
+        writeConnectionSecretToRef:
+          name: s3-conn
\ No newline at end of file
diff --git a/pkg/appfile/appfile.go b/pkg/appfile/appfile.go
index b2b9b9e14..a799f72a4 100644
--- a/pkg/appfile/appfile.go
+++ b/pkg/appfile/appfile.go
@@ -704,7 +704,14 @@ func generateTerraformConfigurationWorkload(wl *Workload, ns string) (*unstructu
 	}
 	if spec.ProviderReference != nil && !reflect.DeepEqual(configuration.Spec.ProviderReference, spec.ProviderReference) {
 		configuration.Spec.ProviderReference = spec.ProviderReference
+	} else if wl.FullTemplate != nil && wl.FullTemplate.ComponentDefinition != nil &&
+		wl.FullTemplate.ComponentDefinition.Spec.Schematic != nil &&
+		wl.FullTemplate.ComponentDefinition.Spec.Schematic.Terraform != nil &&
+		wl.FullTemplate.ComponentDefinition.Spec.Schematic.Terraform.ProviderReference != nil {
+		// Check whether the provider reference is set in ComponentDefinition
+		configuration.Spec.ProviderReference = wl.FullTemplate.ComponentDefinition.Spec.Schematic.Terraform.ProviderReference
 	}
+
 	if spec.Region != "" && configuration.Spec.Region != spec.Region {
 		configuration.Spec.Region = spec.Region
 	}
diff --git a/pkg/appfile/appfile_test.go b/pkg/appfile/appfile_test.go
index 36274d0ad..3aade2a77 100644
--- a/pkg/appfile/appfile_test.go
+++ b/pkg/appfile/appfile_test.go
@@ -944,7 +944,6 @@ func TestGenerateTerraformConfigurationWorkload(t *testing.T) {
 		},
 
 		"workload's params is bad": {
-
 			args: args{
 				params: badParam,
 				hcl:    "abc",
@@ -952,8 +951,7 @@ func TestGenerateTerraformConfigurationWorkload(t *testing.T) {
 			want: want{err: errors.Wrap(badParamMarshalError, errFailToConvertTerraformComponentProperties)},
 		},
 
-		"terraform workload has a provider reference": {
-
+		"terraform workload has a provider reference, but parameters are bad": {
 			args: args{
 				params:      badParam,
 				hcl:         "abc",
@@ -961,6 +959,14 @@ func TestGenerateTerraformConfigurationWorkload(t *testing.T) {
 			},
 			want: want{err: errors.Wrap(badParamMarshalError, errFailToConvertTerraformComponentProperties)},
 		},
+		"terraform workload has a provider reference": {
+			args: args{
+				params:      variable,
+				hcl:         "variable \"name\" {\n      description = \"Name to be used on all resources as prefix. Default to 'TF-Module-EIP'.\"\n      default = \"TF-Module-EIP\"\n      type = string\n    }",
+				providerRef: &terraformtypes.Reference{Name: "aws", Namespace: "default"},
+			},
+			want: want{err: nil},
+		},
 	}
 
 	for tcName, tc := range testcases {
@@ -1021,7 +1027,16 @@ func TestGenerateTerraformConfigurationWorkload(t *testing.T) {
 			configSpec.WriteConnectionSecretToReference = tc.args.writeConnectionSecretToRef
 		}
 		if tc.args.providerRef != nil {
-			template.Terraform.ProviderReference = tc.args.providerRef
+			tf := &common.Terraform{}
+			tf.ProviderReference = tc.args.providerRef
+			template.ComponentDefinition = &v1beta1.ComponentDefinition{
+				Spec: v1beta1.ComponentDefinitionSpec{
+					Schematic: &common.Schematic{
+						Terraform: tf,
+					},
+				},
+			}
+			configSpec.ProviderReference = tc.args.providerRef
 		}
 
 		wl := &Workload{