diff --git a/action.yml b/action.yml
index 4944994..0b0c06f 100644
--- a/action.yml
+++ b/action.yml
@@ -74,6 +74,10 @@ inputs:
     description: If true it will sign-off commit
     required: false
     default: "false"
+  git-sub-dir:
+    description: Subdirectory that terraform code is checked out into
+    required: false
+    default: ""
   fail-on-diff:
     description: Fail the job if there is any diff found between the generated output and existing file (ignored if `git-push` is set)
     required: false
@@ -85,7 +89,7 @@ outputs:
 
 runs:
   using: docker
-  image: "docker://quay.io/terraform-docs/gh-actions:1.2.0"
+  image: "docker://quay.io/terraform-docs/gh-actions:1.2.1"
   env:
     INPUT_WORKING_DIR: ${{ inputs.working-dir }}
     INPUT_ATLANTIS_FILE: ${{ inputs.atlantis-file }}
@@ -105,6 +109,7 @@ runs:
     INPUT_GIT_PUSH_SIGN_OFF: ${{ inputs.git-push-sign-off }}
     INPUT_GIT_PUSH_USER_NAME: ${{ inputs.git-push-user-name }}
     INPUT_GIT_PUSH_USER_EMAIL: ${{ inputs.git-push-user-email }}
+    INPUT_GIT_SUB_DIR: ${{ inputs.git-sub-dir }}
 
 branding:
   icon: file-text
diff --git a/src/docker-entrypoint.sh b/src/docker-entrypoint.sh
index d9a61a0..6c87666 100755
--- a/src/docker-entrypoint.sh
+++ b/src/docker-entrypoint.sh
@@ -48,11 +48,16 @@ if [ -z "${INPUT_GIT_PUSH_USER_EMAIL}" ]; then
     INPUT_GIT_PUSH_USER_EMAIL="github-actions[bot]@users.noreply.github.com"
 fi
 
+if [ -n "${INPUT_GIT_SUB_DIR}" ]; then
+    GITHUB_WORKSPACE="${GITHUB_WORKSPACE}/${INPUT_GIT_SUB_DIR}"
+    echo "Using non-standard GITHUB_WORKSPACE of ${GITHUB_WORKSPACE}"
+fi
+
 git_setup() {
     # When the runner maps the $GITHUB_WORKSPACE mount, it is owned by the runner
     # user while the created folders are owned by the container user, causing this
     # error. Issue description here: https://github.com/actions/checkout/issues/766
-    git config --global --add safe.directory /github/workspace
+    git config --global --add safe.directory ${GITHUB_WORKSPACE}
 
     git config --global user.name "${INPUT_GIT_PUSH_USER_NAME}"
     git config --global user.email "${INPUT_GIT_PUSH_USER_EMAIL}"