diff --git a/changelogs/fragments/7301-fix-backend-config-string-encapsulation.yml b/changelogs/fragments/7301-fix-backend-config-string-encapsulation.yml
new file mode 100644
index 00000000000..f8d01450f45
--- /dev/null
+++ b/changelogs/fragments/7301-fix-backend-config-string-encapsulation.yml
@@ -0,0 +1,2 @@
+bugfixes:
+  - "terraform - prevents ``-backend-config`` option double encapsulating with ``shlex_quote`` function. (https://github.com/ansible-collections/community.general/pull/7301)."
\ No newline at end of file
diff --git a/plugins/modules/terraform.py b/plugins/modules/terraform.py
index f9f809220b2..4bbd3f11992 100644
--- a/plugins/modules/terraform.py
+++ b/plugins/modules/terraform.py
@@ -325,7 +325,7 @@ def init_plugins(bin_path, project_path, backend_config, backend_config_files, i
         for key, val in backend_config.items():
             command.extend([
                 '-backend-config',
-                shlex_quote('{0}={1}'.format(key, val))
+                '{0}={1}'.format(key, val)
             ])
     if backend_config_files:
         for f in backend_config_files: