diff --git a/README.md b/README.md
index c13b81e..63064fb 100644
--- a/README.md
+++ b/README.md
@@ -1,2 +1,80 @@
 # terraform-validate
-Composite Action for Terraform-Validate
+
+A GitHub composite action that runs `terraform validate` on a workspace after initializing it.
+
+## Description
+
+The `terraform-validate` action automates the validation of Terraform configurations by running `terraform init` followed by `terraform validate`. It handles backend configuration and variable files, making it easy to validate Terraform code in your CI/CD pipelines.
+
+## Features
+
+- Automatically runs `terraform init` before validation
+- Supports custom working directories
+- Handles backend configuration variables
+- Supports tfvars files
+- Provides detailed validation output
+- Returns validation status as an output
+
+## Inputs
+
+| Name | Description | Required | Default |
+|------|-------------|----------|---------|
+| `working-directory` | Directory containing Terraform configuration files | false | `.` |
+| `backend-config` | Backend configuration variables, one per line | false | N/A |
+| `var-file` | Path to a Terraform tfvars file | false | N/A |
+
+## Outputs
+
+| Name | Description |
+|------|-------------|
+| `is_valid` | Whether the Terraform configuration is valid (true/false) |
+| `stdout` | Output from terraform validate command |
+| `stderr` | Any error output from terraform validate command |
+
+## Usage Examples
+
+### Basic Validation
+
+```yaml
+jobs:
+  validate:
+    runs-on: ubuntu-latest
+    steps:
+      - uses: actions/checkout@v4
+      
+      - name: Setup Terraform
+        uses: hashicorp/setup-terraform@v3
+        
+      - name: Validate Terraform Configuration
+        uses: CSVD/terraform-validate@v1
+        with:
+          working-directory: './terraform'
+```
+
+### With Backend Configuration
+
+```yaml
+jobs:
+  validate:
+    runs-on: ubuntu-latest
+    steps:
+      - uses: actions/checkout@v4
+      
+      - name: Setup Terraform
+        uses: hashicorp/setup-terraform@v3
+        
+      - name: Validate Terraform Configuration
+        uses: CSVD/terraform-validate@v1
+        with:
+          working-directory: './terraform'
+          backend-config: |
+            bucket=my-terraform-state
+            key=prod/terraform.tfstate
+            region=us-east-1
+```
+
+## Requirements
+
+- Terraform must be installed in the runner environment (typically using `hashicorp/setup-terraform` action)
+- Repository must be checked out before running this action
+- Appropriate AWS credentials if using remote state in S3 (or similar backend configuration)
diff --git a/action.yml b/action.yml
new file mode 100644
index 0000000..4cbecdb
--- /dev/null
+++ b/action.yml
@@ -0,0 +1,67 @@
+name: 'Terraform Validate'
+description: 'Runs terraform validate on a workspace'
+
+inputs:
+  working-directory:
+    description: 'Directory containing Terraform configuration files'
+    required: false
+    default: '.'
+  backend-config:
+    description: 'Backend configuration variables, one per line'
+    required: false
+  var-file:
+    description: 'Path to a Terraform tfvars file'
+    required: false
+
+outputs:
+  is_valid:
+    description: 'Whether the Terraform configuration is valid (true/false)'
+  stdout:
+    description: 'Output from terraform validate command'
+  stderr:
+    description: 'Any error output from terraform validate command'
+
+runs:
+  using: "composite"
+  steps:
+    - name: Terraform Init
+      shell: bash
+      run: |
+        cd ${{ inputs.working-directory }}
+        INIT_ARGS=""
+        if [[ -n "${{ inputs.backend-config }}" ]]; then
+          while IFS= read -r config; do
+            INIT_ARGS="$INIT_ARGS -backend-config='$config'"
+          done <<< "${{ inputs.backend-config }}"
+        fi
+        terraform init -input=false $INIT_ARGS
+        
+    - name: Terraform Validate
+      id: validate
+      shell: bash
+      run: |
+        cd ${{ inputs.working-directory }}
+        VALIDATE_ARGS=""
+        if [[ -n "${{ inputs.var-file }}" ]]; then
+          VALIDATE_ARGS="$VALIDATE_ARGS -var-file=${{ inputs.var-file }}"
+        fi
+        
+        # Capture both stdout and stderr
+        OUTPUT=$(terraform validate -no-color $VALIDATE_ARGS 2>&1)
+        EXIT_CODE=$?
+        
+        # Set outputs
+        echo "stdout<<EOF" >> $GITHUB_OUTPUT
+        echo "$OUTPUT" >> $GITHUB_OUTPUT
+        echo "EOF" >> $GITHUB_OUTPUT
+        
+        echo "stderr<<EOF" >> $GITHUB_OUTPUT
+        if [ $EXIT_CODE -ne 0 ]; then
+          echo "$OUTPUT" >> $GITHUB_OUTPUT
+        fi
+        echo "EOF" >> $GITHUB_OUTPUT
+        
+        echo "is_valid=$([ $EXIT_CODE -eq 0 ] && echo 'true' || echo 'false')" >> $GITHUB_OUTPUT
+        
+        # Exit with the original exit code
+        exit $EXIT_CODE
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