diff --git a/action.yml b/action.yml
index 654a4ab4..2b8ae194 100644
--- a/action.yml
+++ b/action.yml
@@ -72,7 +72,7 @@ inputs:
   terragrunt-version:
     description: Terragrunt version
     required: false
-    default: v0.55.5
+    default: v0.73.7
   opentofu-version:
     description: OpenTofu version
     required: false
@@ -272,6 +272,7 @@ runs:
           format('{0}/cache', github.workspace) ||
           inputs.terraform-cache-dir }}
         echo "TF_PLUGIN_CACHE_DIR=$CACHE_DIR" >> $GITHUB_ENV
+        echo "TG_PROVIDER_CACHE_DIR=$CACHE_DIR" >> $GITHUB_ENV
         echo "TERRAGRUNT_PROVIDER_CACHE_DIR=$CACHE_DIR" >> $GITHUB_ENV
 
     - uses: actions/cache/restore@v4
@@ -400,6 +401,7 @@ runs:
         INPUT_DRIFT_DETECTION_SLACK_NOTIFICATION_URL: ${{ inputs.drift-detection-slack-notification-url }}
         NO_BACKEND: ${{ inputs.no-backend }}
         DEBUG: 'true'
+        TG_PROVIDER_CACHE: ${{ inputs.cache-dependencies == 'true' && 1 || 0 }}
         TERRAGRUNT_PROVIDER_CACHE: ${{ inputs.cache-dependencies == 'true' && 1 || 0 }}
         DIGGER_RUN_SPEC: ${{inputs.digger-spec}}
       run: |
@@ -439,6 +441,7 @@ runs:
         INPUT_DIGGER_COMMAND: ${{ inputs.command }}
         INPUT_DRIFT_DETECTION_SLACK_NOTIFICATION_URL: ${{ inputs.drift-detection-slack-notification-url }}
         NO_BACKEND: ${{ inputs.no-backend }}
+        TG_PROVIDER_CACHE: ${{ inputs.cache-dependencies == 'true' && 1 || 0 }}
         TERRAGRUNT_PROVIDER_CACHE: ${{ inputs.cache-dependencies == 'true' && 1 || 0 }}
         DIGGER_RUN_SPEC: ${{inputs.digger-spec}}
       id: digger
@@ -460,7 +463,7 @@ runs:
       with:
         path: $TF_PLUGIN_CACHE_DIR
         key: digger-cache-${{ hashFiles('**/cache') }}
-        
+
 branding:
   icon: globe
   color: purple
diff --git a/cli/pkg/digger/digger.go b/cli/pkg/digger/digger.go
index b097319b..3d2dc2b8 100644
--- a/cli/pkg/digger/digger.go
+++ b/cli/pkg/digger/digger.go
@@ -3,6 +3,12 @@ package digger
 import (
 	"errors"
 	"fmt"
+	"log"
+	"os"
+	"path"
+	"strings"
+	"time"
+
 	"github.com/diggerhq/digger/libs/backendapi"
 	"github.com/diggerhq/digger/libs/ci"
 	comment_updater "github.com/diggerhq/digger/libs/comment_utils/summary"
@@ -12,11 +18,6 @@ import (
 	"github.com/diggerhq/digger/libs/policy"
 	orchestrator "github.com/diggerhq/digger/libs/scheduler"
 	"github.com/diggerhq/digger/libs/storage"
-	"log"
-	"os"
-	"path"
-	"strings"
-	"time"
 
 	core_drift "github.com/diggerhq/digger/cli/pkg/core/drift"
 	"github.com/diggerhq/digger/cli/pkg/usage"
@@ -68,7 +69,8 @@ func RunJobs(jobs []orchestrator.Job, prService ci.PullRequestService, orgServic
 	defer reporter.Flush()
 
 	log.Printf("Info: [TF_PLUGIN_CACHE_DIR=%v] ", os.Getenv("TF_PLUGIN_CACHE_DIR"))
-	log.Printf("Info: [TERRAGRUNT_PROVIDER_CACHE_DIR=%v", os.Getenv("TERRAGRUNT_PROVIDER_CACHE_DIR"))
+	log.Printf("Info: [TG_PROVIDER_CACHE_DIR=%v] ", os.Getenv("TG_PROVIDER_CACHE_DIR"))
+	log.Printf("Info: [TERRAGRUNT_PROVIDER_CACHE_DIR=%v] ", os.Getenv("TERRAGRUNT_PROVIDER_CACHE_DIR"))
 
 	runStartedAt := time.Now()
 
diff --git a/libs/execution/terragrunt.go b/libs/execution/terragrunt.go
index d5136afa..4fb84f04 100644
--- a/libs/execution/terragrunt.go
+++ b/libs/execution/terragrunt.go
@@ -104,9 +104,12 @@ func (terragrunt Terragrunt) runTerragruntCommand(command string, printOutputToS
 	env := os.Environ()
 	env = append(env, "TF_CLI_ARGS=-no-color")
 	env = append(env, "TF_IN_AUTOMATION=true")
+	env = append(env, "TERRAGRUNT_FORWARD_TF_STDOUT=1")
 	env = append(env, "TERRAGRUNT_NO_COLOR=true")
 	env = append(env, "TERRAGRUNT_NON_INTERACTIVE=true")
-	env = append(env, "TERRAGRUNT_FORWARD_TF_STDOUT=1")
+	env = append(env, "TG_NO_COLOR=true")
+	env = append(env, "TG_NON_INTERACTIVE=true")
+	env = append(env, "TG_TF_FORWARD_STDOUT=true")
 
 	for k, v := range envs {
 		env = append(env, fmt.Sprintf("%s=%s", k, v))