diff --git a/.github/workflows/test-version.yaml b/.github/workflows/test-version.yaml
index 1c67b758..ea55e2f8 100644
--- a/.github/workflows/test-version.yaml
+++ b/.github/workflows/test-version.yaml
@@ -103,7 +103,7 @@ jobs:
       - name: Checkout
         uses: actions/checkout@v3
 
-      - name: Test terraform-version
+      - name: Test getting version from .tools-versions
         uses: ./terraform-version
         id: terraform-version
         with:
@@ -118,6 +118,21 @@ jobs:
             echo "::error:: Terraform version not set from .terraform-version"
             exit 1
           fi
+          
+          mv tests/workflows/test-version/asdf/.tool-versions .tool-versions
+
+      - name: Test getting version from root .tools-versions
+        uses: ./terraform-version
+        id: terraform-version
+        with:
+          path: tests/workflows/test-version/asdf
+
+      - name: Check the version
+        run: |
+          if [[ "${{ steps.terraform-version.outputs.terraform }}" != "0.12.11" ]]; then
+            echo "::error:: Terraform version not set from .terraform-version"
+            exit 1
+          fi
 
   env:
     runs-on: ubuntu-latest
diff --git a/image/src/terraform_version/asdf.py b/image/src/terraform_version/asdf.py
index 558428f7..98939322 100644
--- a/image/src/terraform_version/asdf.py
+++ b/image/src/terraform_version/asdf.py
@@ -28,7 +28,7 @@ def try_read_asdf(inputs: InitInputs, workspace_path: str, versions: Iterable[Ve
 
     module_path = os.path.abspath(inputs.get('INPUT_PATH', '.'))
 
-    while module_path not in ['/', workspace_path]:
+    while module_path != '/':
         asdf_path = os.path.join(module_path, '.tool-versions')
 
         if os.path.isfile(asdf_path):
@@ -38,6 +38,9 @@ def try_read_asdf(inputs: InitInputs, workspace_path: str, versions: Iterable[Ve
             except Exception as e:
                 debug(str(e))
 
+        if module_path == workspace_path:
+            break
+
         module_path = os.path.dirname(module_path)
 
     return None