diff --git a/internal/exec/terraform.go b/internal/exec/terraform.go
index b782d325e..7b3153fd4 100644
--- a/internal/exec/terraform.go
+++ b/internal/exec/terraform.go
@@ -238,19 +238,6 @@ func ExecuteTerraform(info schema.ConfigAndStacksInfo) error {
 		}
 	}
 
-	// Run `terraform init` before running other commands
-	runTerraformInit := true
-	if info.SubCommand == "init" ||
-		info.SubCommand == "clean" ||
-		(info.SubCommand == "deploy" && !cliConfig.Components.Terraform.DeployRunInit) {
-		runTerraformInit = false
-	}
-
-	if info.SkipInit {
-		u.LogDebug(cliConfig, "Skipping over 'terraform init' due to '--skip-init' flag being passed")
-		runTerraformInit = false
-	}
-
 	// Set `TF_IN_AUTOMATION` ENV var to `true` to suppress verbose instructions after terraform commands
 	// https://developer.hashicorp.com/terraform/cli/config/environment-variables#tf_in_automation
 	info.ComponentEnvList = append(info.ComponentEnvList, "TF_IN_AUTOMATION=true")
@@ -273,11 +260,28 @@ func ExecuteTerraform(info schema.ConfigAndStacksInfo) error {
 		}
 	}
 
+	// Run `terraform init` before running other commands
+	runTerraformInit := true
+	if info.SubCommand == "init" ||
+		info.SubCommand == "clean" ||
+		(info.SubCommand == "deploy" && !cliConfig.Components.Terraform.DeployRunInit) {
+		runTerraformInit = false
+	}
+
+	if info.SkipInit {
+		u.LogDebug(cliConfig, "Skipping over 'terraform init' due to '--skip-init' flag being passed")
+		runTerraformInit = false
+	}
+
 	if runTerraformInit {
 		initCommandWithArguments := []string{"init"}
 		if info.SubCommand == "workspace" || cliConfig.Components.Terraform.InitRunReconfigure {
 			initCommandWithArguments = []string{"init", "-reconfigure"}
 		}
+
+		// Before executing `terraform init`, delete the `.terraform/environment` file from the component directory
+		cleanTerraformWorkspace(componentPath)
+
 		err = ExecuteShellCommand(
 			cliConfig,
 			info.Command,
@@ -359,6 +363,9 @@ func ExecuteTerraform(info schema.ConfigAndStacksInfo) error {
 			allArgsAndFlags = append(allArgsAndFlags, []string{varFileFlag, varFile}...)
 		}
 	case "init":
+		// Before executing `terraform init`, delete the `.terraform/environment` file from the component directory
+		cleanTerraformWorkspace(componentPath)
+
 		if cliConfig.Components.Terraform.InitRunReconfigure {
 			allArgsAndFlags = append(allArgsAndFlags, []string{"-reconfigure"}...)
 		}
diff --git a/internal/exec/terraform_utils.go b/internal/exec/terraform_utils.go
index 2228208d0..db92103d6 100644
--- a/internal/exec/terraform_utils.go
+++ b/internal/exec/terraform_utils.go
@@ -1,6 +1,9 @@
 package exec
 
 import (
+	"os"
+	"path"
+
 	"github.com/pkg/errors"
 
 	"github.com/cloudposse/atmos/pkg/schema"
@@ -14,3 +17,12 @@ func checkTerraformConfig(cliConfig schema.CliConfiguration) error {
 
 	return nil
 }
+
+// cleanTerraformWorkspace deletes the `.terraform/environment` file from the component directory.
+// The `.terraform/environment` file contains the name of the currently selected workspace,
+// helping Terraform identify the active workspace context for managing your infrastructure.
+// We delete the file to prevent the Terraform prompt asking o select the default or the
+// previously used workspace. This happens when different backends are used for the same component.
+func cleanTerraformWorkspace(componentPath string) {
+	_ = os.Remove(path.Join(componentPath, ".terraform", "environment"))
+}
diff --git a/pkg/utils/file_utils.go b/pkg/utils/file_utils.go
index 4c0d752a1..2cdb7204f 100644
--- a/pkg/utils/file_utils.go
+++ b/pkg/utils/file_utils.go
@@ -197,20 +197,21 @@ func SearchConfigFile(path string) (string, bool) {
 
 // IsURL checks if a string is a URL
 func IsURL(s string) bool {
-	url, err := url.Parse(s)
+	u, err := url.Parse(s)
 	if err != nil {
 		return false
 	}
+
 	validSchemes := []string{"http", "https"}
 	schemeValid := false
 	for _, scheme := range validSchemes {
-		if url.Scheme == scheme {
+		if u.Scheme == scheme {
 			schemeValid = true
 			break
 		}
 	}
-	return schemeValid
 
+	return schemeValid
 }
 
 // GetFileNameFromURL extracts the file name from a URL
@@ -218,16 +219,19 @@ func GetFileNameFromURL(rawURL string) (string, error) {
 	if rawURL == "" {
 		return "", fmt.Errorf("empty URL provided")
 	}
+
 	parsedURL, err := url.Parse(rawURL)
 	if err != nil {
 		return "", err
 	}
+
 	// Extract the path from the URL
 	urlPath := parsedURL.Path
+
+	// Get the base name of the path
 	fileName := path.Base(urlPath)
 	if fileName == "/" || fileName == "." {
 		return "", fmt.Errorf("unable to extract filename from URL: %s", rawURL)
 	}
-	// Get the base name of the path
 	return fileName, nil
 }
diff --git a/website/package-lock.json b/website/package-lock.json
index 8ffdc2112..42286b623 100644
--- a/website/package-lock.json
+++ b/website/package-lock.json
@@ -30,7 +30,7 @@
         "marked": "^14.1.3",
         "node-fetch": "^3.3.2",
         "posthog-docusaurus": "^2.0.1",
-        "posthog-js": "^1.178.0",
+        "posthog-js": "^1.180.1",
         "prism-react-renderer": "^2.4.0",
         "raw-loader": "^4.0.2",
         "react": "^18.3.1",
@@ -13652,9 +13652,9 @@
       }
     },
     "node_modules/posthog-js": {
-      "version": "1.178.0",
-      "resolved": "https://registry.npmjs.org/posthog-js/-/posthog-js-1.178.0.tgz",
-      "integrity": "sha512-ILD4flNh72d5dycc4ZouKORlaVr+pDzl5TlZr1JgP0NBAoduHjhE7XZYwk7zdYkry7u0qAIpfv2306zJCW2vGg==",
+      "version": "1.180.1",
+      "resolved": "https://registry.npmjs.org/posthog-js/-/posthog-js-1.180.1.tgz",
+      "integrity": "sha512-LV65maVrpqkAh0wu32YvU7FpCSEjg6o+sZFYCs1+6tnEa9VvXuz8J6ReLiyRpJABI4j1qX/PB2jaVY5tDbLalQ==",
       "license": "MIT",
       "dependencies": {
         "core-js": "^3.38.1",
diff --git a/website/package.json b/website/package.json
index bdec0e610..6fc1cddcd 100644
--- a/website/package.json
+++ b/website/package.json
@@ -36,7 +36,7 @@
     "marked": "^14.1.3",
     "node-fetch": "^3.3.2",
     "posthog-docusaurus": "^2.0.1",
-    "posthog-js": "^1.178.0",
+    "posthog-js": "^1.180.1",
     "prism-react-renderer": "^2.4.0",
     "raw-loader": "^4.0.2",
     "react": "^18.3.1",