diff --git a/.github/workflows/ci.yaml b/.github/workflows/ci.yaml
index 7e14213c1..87fea9226 100644
--- a/.github/workflows/ci.yaml
+++ b/.github/workflows/ci.yaml
@@ -28,6 +28,8 @@ jobs:
         run: bun install
       - name: Run TypeScript tests
         run: bun test
+      - name: Run Terraform tests
+        run: ./scripts/terraform_test_all.sh
       - name: Run Terraform Validate
         run: bun terraform-validate
   validate-style:
diff --git a/CONTRIBUTING.md b/CONTRIBUTING.md
index 282788ec7..4f46eb674 100644
--- a/CONTRIBUTING.md
+++ b/CONTRIBUTING.md
@@ -124,18 +124,23 @@ This script generates:
    - Accurate description and usage examples
    - Correct icon path (usually `../../../../.icons/your-icon.svg`)
    - Proper tags that describe your module
-3. **Create at least one `.tftest.hcl`** to test your module with `terraform test`
+3. **Create tests for your module:**
+   - **Terraform tests**: Create a `*.tftest.hcl` file and test with `terraform test`
+   - **TypeScript tests**: Create `main.test.ts` file if your module runs scripts or has business logic that Terraform tests can't cover
 4. **Add any scripts** or additional files your module needs
 
 ### 4. Test and Submit
 
 ```bash
-# Test your module (from the module directory)
+# Test your module
+cd registry/[namespace]/modules/[module-name]
+
+# Required: Test Terraform functionality
 terraform init -upgrade
 terraform test -verbose
 
-# Or run all tests in the repo
-./scripts/terraform_test_all.sh
+# Optional: Test TypeScript files if you have main.test.ts
+bun test main.test.ts
 
 # Format code
 bun run fmt
@@ -343,8 +348,8 @@ coder templates push test-[template-name] -d .
 terraform init -upgrade
 terraform test -verbose
 
-# Test all modules
-./scripts/terraform_test_all.sh
+# Optional: If you have TypeScript tests
+bun test main.test.ts
 ```
 
 ### 3. Maintain Backward Compatibility
@@ -393,7 +398,9 @@ Example: `https://github.com/coder/registry/compare/main...your-branch?template=
 ### Every Module Must Have
 
 - `main.tf` - Terraform code
-- One or more `.tftest.hcl` files - Working tests with `terraform test`
+- **Tests**:
+  - `*.tftest.hcl` files with `terraform test` (to test terraform specific logic)
+  - `main.test.ts` file with `bun test` (to test business logic, i.e., `coder_script` to install a package.)
 - `README.md` - Documentation with frontmatter
 
 ### Every Template Must Have
@@ -493,7 +500,7 @@ When reporting bugs, include:
 2. **No tests** or broken tests
 3. **Hardcoded values** instead of variables
 4. **Breaking changes** without defaults
-5. **Not running** formatting (`bun run fmt`) and tests (`terraform test`) before submitting
+5. **Not running** formatting (`bun run fmt`) and tests (`terraform test`, and `bun test main.test.ts` if applicable) before submitting
 
 ## For Maintainers
 
diff --git a/examples/modules/MODULE_NAME.tftest.hcl b/examples/modules/MODULE_NAME.tftest.hcl
index 6f11666b5..a6ccc5240 100644
--- a/examples/modules/MODULE_NAME.tftest.hcl
+++ b/examples/modules/MODULE_NAME.tftest.hcl
@@ -15,7 +15,7 @@ run "app_url_uses_port" {
   }
 
   assert {
-    condition     = resource.coder_app.MODULE_NAME.url == "http://localhost:19999"
-    error_message = "Expected MODULE_NAME app URL to include configured port"
+    condition     = resource.coder_app.module_name.url == "http://localhost:19999"
+    error_message = "Expected module-name app URL to include configured port"
   }
 }
diff --git a/examples/modules/main.tf b/examples/modules/main.tf
index 628eb1da5..c0acfbc35 100644
--- a/examples/modules/main.tf
+++ b/examples/modules/main.tf
@@ -35,13 +35,13 @@ variable "agent_id" {
 
 variable "log_path" {
   type        = string
-  description = "The path to log MODULE_NAME to."
-  default     = "/tmp/MODULE_NAME.log"
+  description = "The path to the module log file."
+  default     = "/tmp/module_name.log"
 }
 
 variable "port" {
   type        = number
-  description = "The port to run MODULE_NAME on."
+  description = "The port to run the application on."
   default     = 19999
 }
 
@@ -59,9 +59,9 @@ variable "order" {
 # Add other variables here
 
 
-resource "coder_script" "MODULE_NAME" {
+resource "coder_script" "module_name" {
   agent_id     = var.agent_id
-  display_name = "MODULE_NAME"
+  display_name = "Module Name"
   icon         = local.icon_url
   script = templatefile("${path.module}/run.sh", {
     LOG_PATH : var.log_path,
@@ -70,10 +70,10 @@ resource "coder_script" "MODULE_NAME" {
   run_on_stop  = false
 }
 
-resource "coder_app" "MODULE_NAME" {
+resource "coder_app" "module_name" {
   agent_id     = var.agent_id
-  slug         = "MODULE_NAME"
-  display_name = "MODULE_NAME"
+  slug         = "module-name"
+  display_name = "Module Name"
   url          = "http://localhost:${var.port}"
   icon         = local.icon_url
   subdomain    = false
@@ -88,10 +88,10 @@ resource "coder_app" "MODULE_NAME" {
   }
 }
 
-data "coder_parameter" "MODULE_NAME" {
-  type         = "list(string)"
-  name         = "MODULE_NAME"
-  display_name = "MODULE_NAME"
+data "coder_parameter" "module_name" {
+  type         = "string"
+  name         = "module_name"
+  display_name = "Module Name"
   icon         = local.icon_url
   mutable      = var.mutable
   default      = local.options["Option 1"]["value"]