diff --git a/README.md b/README.md
index 82fadcf..eee95f6 100644
--- a/README.md
+++ b/README.md
@@ -129,7 +129,7 @@ ftf add-variable [OPTIONS] /path/to/module
 
 #### Validate Directory
 
-Perform validation on Terraform directories including formatting checks and security scans using Checkov.
+Perform validation on Terraform directories including formatting checks, provider block checks, and security scans using Checkov.
 
 ```bash
 ftf validate-directory /path/to/module [OPTIONS]
@@ -140,6 +140,7 @@ ftf validate-directory /path/to/module [OPTIONS]
 
 **Notes**:
 - Runs `terraform fmt` for formatting verification.
+- Checks for provider blocks in all .tf files (provider blocks are not allowed in modules; use exposed providers in facets.yaml instead).
 - Runs `terraform init` to ensure initialization completeness.
 - Uses Checkov to scan Terraform files for security misconfigurations.
 - Designed for fast feedback on module quality and security.
diff --git a/TESTING.md b/TESTING.md
index 9257f66..a11c31a 100644
--- a/TESTING.md
+++ b/TESTING.md
@@ -94,6 +94,10 @@ def test_generate_module(temp_module_dir):  # temp_module_dir fixture from conft
     assert os.path.exists(os.path.join(temp_module_dir, 'expected_file'))
 ```
 
+### Provider Block Validation
+
+All validation commands now check for provider blocks in any .tf file (including nested folders). If a provider block is found, validation fails with a clear error. Modules must not contain provider blocks; use exposed providers in facets.yaml instead. This is covered by tests in `tests/test_utils.py`.
+
 ## Fixtures
 
 Common test fixtures are provided in `tests/conftest.py`:
diff --git a/ftf_cli/commands/validate_directory.py b/ftf_cli/commands/validate_directory.py
index 244ea59..05055e7 100644
--- a/ftf_cli/commands/validate_directory.py
+++ b/ftf_cli/commands/validate_directory.py
@@ -4,6 +4,7 @@
     validate_facets_yaml,
     validate_boolean,
     validate_facets_tf_vars,
+    validate_no_provider_blocks,
 )
 from checkov.runner_filter import RunnerFilter
 from checkov.terraform.runner import Runner
@@ -55,6 +56,7 @@ def validate_directory(path, check_only, skip_terraform_validation):
             click.echo(line)
 
         validate_facets_tf_vars(path)
+        validate_no_provider_blocks(path)
         click.echo(
             "✅ Terraform files are correctly formatted."
             if check_only
diff --git a/ftf_cli/utils.py b/ftf_cli/utils.py
index 41970d0..012844d 100644
--- a/ftf_cli/utils.py
+++ b/ftf_cli/utils.py
@@ -932,4 +932,26 @@ def transform_properties_to_terraform(properties_obj, level=1):
         # Fallback for unknown types or empty objects
         if not properties_obj:
             return "object({})"
-        return "any"
\ No newline at end of file
+        return "any"
+
+def validate_no_provider_blocks(path):
+    """
+    Recursively scan all *.tf files under path, parse with python-hcl2, and raise UsageError if any provider block is found.
+    Fail fast on parse errors.
+    """
+    tf_files = glob.glob(os.path.join(path, "**", "*.tf"), recursive=True)
+    provider_violations = []
+    for tf_file in tf_files:
+        try:
+            with open(tf_file, "r") as fp:
+                terraform_tree = hcl2.load(fp)
+            if "provider" in terraform_tree and terraform_tree["provider"]:
+                provider_violations.append(tf_file)
+        except Exception as e:
+            raise click.UsageError(f"❌ Failed to parse {tf_file}: {e}")
+    if provider_violations:
+        file_list = "\n".join(os.path.relpath(f, path) for f in provider_violations)
+        raise click.UsageError(
+            f"❌ Provider blocks are not allowed in module files. Found provider block(s) in:\n{file_list}\nUse exposed providers in facets.yaml instead."
+        )
+    click.echo("✅ No provider blocks found in Terraform files.")
\ No newline at end of file
diff --git a/setup.py b/setup.py
index a9803bb..5435157 100644
--- a/setup.py
+++ b/setup.py
@@ -26,6 +26,7 @@
         "questionary",
         "facets-hcl",
         "ruamel.yaml",
+        "python-hcl2",
     ],
     packages=find_packages(
         include=["ftf_cli", "ftf_cli.commands", "ftf_cli.commands.templates"]
@@ -36,6 +37,7 @@
             "pytest>=8.3.5",
             "pytest-mock",
             "pyhcl>=0.4.5",
+            "python-hcl2",
         ],
     },
     entry_points="""
diff --git a/tests/test_utils.py b/tests/test_utils.py
index 9d061db..6373e0c 100644
--- a/tests/test_utils.py
+++ b/tests/test_utils.py
@@ -190,6 +190,8 @@ def test_lookup_tree_mixed_nested_lists():
 
 import pytest
 from ftf_cli.utils import properties_to_lookup_tree, transform_properties_to_terraform
+from ftf_cli.utils import validate_no_provider_blocks
+import os
 
 
 class TestPropertiesToLookupTree:
@@ -545,3 +547,26 @@ def test_indentation_levels(self):
         assert any('  level1 = object({' in line for line in lines)
         assert any('    level2 = object({' in line for line in lines)
         assert any('      field = string' in line for line in lines)
+
+
+def test_validate_no_provider_blocks_detects_provider(tmp_path):
+    tf_file = tmp_path / "main.tf"
+    tf_file.write_text('provider "aws" { region = "us-west-2" }')
+    with pytest.raises(Exception) as excinfo:
+        validate_no_provider_blocks(str(tmp_path))
+    assert "Provider blocks are not allowed" in str(excinfo.value)
+
+
+def test_validate_no_provider_blocks_allows_no_provider(tmp_path):
+    tf_file = tmp_path / "main.tf"
+    tf_file.write_text('resource "aws_instance" "example" { ami = "ami-123" }')
+    # Should not raise
+    validate_no_provider_blocks(str(tmp_path))
+
+
+def test_validate_no_provider_blocks_parse_error(tmp_path):
+    tf_file = tmp_path / "main.tf"
+    tf_file.write_text('this is not valid hcl')
+    with pytest.raises(Exception) as excinfo:
+        validate_no_provider_blocks(str(tmp_path))
+    assert "Failed to parse" in str(excinfo.value)