diff --git a/pkg/terraform/hcl/backend.go b/pkg/terraform/hcl/backend.go
index 03b63ce2..324ec316 100644
--- a/pkg/terraform/hcl/backend.go
+++ b/pkg/terraform/hcl/backend.go
@@ -32,7 +32,7 @@ func (b BackendBlock) SupplierConfig(workspace string) *config.SupplierConfig {
 	case "gcs":
 		return b.parseGCSBackend(workspace)
 	case "azurerm":
-		return b.parseAzurermBackend()
+		return b.parseAzurermBackend(workspace)
 	}
 	return nil
 }
@@ -79,10 +79,13 @@ func (b BackendBlock) parseGCSBackend(ws string) *config.SupplierConfig {
 	}
 }
 
-func (b BackendBlock) parseAzurermBackend() *config.SupplierConfig {
+func (b BackendBlock) parseAzurermBackend(ws string) *config.SupplierConfig {
 	if b.ContainerName == "" || b.Key == "" {
 		return nil
 	}
+	if ws != DefaultStateName {
+		b.Key = fmt.Sprintf("%senv:%s", b.Key, ws)
+	}
 	return &config.SupplierConfig{
 		Key:     state.TerraformStateReaderSupplier,
 		Backend: backend.BackendKeyAzureRM,
diff --git a/pkg/terraform/hcl/backend_test.go b/pkg/terraform/hcl/backend_test.go
index 3076fd85..1b05fde5 100644
--- a/pkg/terraform/hcl/backend_test.go
+++ b/pkg/terraform/hcl/backend_test.go
@@ -96,6 +96,15 @@ func TestBackend_SupplierConfig(t *testing.T) {
 				Path:    "states/prod.terraform.tfstate",
 			},
 		},
+		{
+			name:     "test with Azure backend block with non-default workspace",
+			filename: "testdata/azurerm_backend_workspace/azurerm_backend_block.tf",
+			want: &config.SupplierConfig{
+				Key:     "tfstate",
+				Backend: "azurerm",
+				Path:    "states/prod.terraform.tfstateenv:bar",
+			},
+		},
 		{
 			name:     "test with unknown backend",
 			filename: "testdata/unknown_backend_block.tf",
diff --git a/pkg/terraform/hcl/testdata/azurerm_backend_workspace/.gitignore b/pkg/terraform/hcl/testdata/azurerm_backend_workspace/.gitignore
new file mode 100644
index 00000000..e920ea56
--- /dev/null
+++ b/pkg/terraform/hcl/testdata/azurerm_backend_workspace/.gitignore
@@ -0,0 +1 @@
+!.terraform
diff --git a/pkg/terraform/hcl/testdata/azurerm_backend_workspace/.terraform/environment b/pkg/terraform/hcl/testdata/azurerm_backend_workspace/.terraform/environment
new file mode 100644
index 00000000..5716ca59
--- /dev/null
+++ b/pkg/terraform/hcl/testdata/azurerm_backend_workspace/.terraform/environment
@@ -0,0 +1 @@
+bar
diff --git a/pkg/terraform/hcl/testdata/azurerm_backend_workspace/azurerm_backend_block.tf b/pkg/terraform/hcl/testdata/azurerm_backend_workspace/azurerm_backend_block.tf
new file mode 100644
index 00000000..b47475ce
--- /dev/null
+++ b/pkg/terraform/hcl/testdata/azurerm_backend_workspace/azurerm_backend_block.tf
@@ -0,0 +1,12 @@
+terraform {
+    backend "azurerm" {
+        resource_group_name  = "StorageAccount-ResourceGroup"
+        storage_account_name = "abcd1234"
+        container_name       = "states"
+        key                  = "prod.terraform.tfstate"
+    }
+}
+
+provider "azurerm" {
+    features {}
+}