diff --git a/content/terraform-docs-common/docs/cloud-docs/workspaces/variables/index.mdx b/content/terraform-docs-common/docs/cloud-docs/workspaces/variables/index.mdx
index 72ed22a84..a37517242 100644
--- a/content/terraform-docs-common/docs/cloud-docs/workspaces/variables/index.mdx
+++ b/content/terraform-docs-common/docs/cloud-docs/workspaces/variables/index.mdx
@@ -26,7 +26,7 @@ Environment variables can store provider credentials and other data. Refer to yo
 
 #### Parallelism
 
-You can use the `TFE_PARALLELISM` environment variable when your infrastructure providers produce errors on concurrent operations or use non-standard rate limiting. The `TFE_PARALLELISM` variable sets the  `-parallelism=<N>` flag for  `terraform plan` and `terraform apply`  ([more about `parallelism`](/terraform/internals/graph#walking-the-graph)). Valid values are between 1 and 256, inclusive, and the default is `10`. HCP Terraform agents do not support `TFE_PARALLELISM`, but you can specify flags as environment variables directly via [`TF_CLI_ARGS_name`](/terraform/cli/config/environment-variables#tf-cli-args). In these cases, use `TF_CLI_ARGS_plan="-parallelism=<N>"` or `TF_CLI_ARGS_apply="-parallelism=<N>"` instead.
+The `TFE_PARALLELISM` environment variable sets the `-parallelism=<N>` flag for `terraform plan` and `terraform apply` when running Terraform locally via CLI ([more about `parallelism`](/terraform/internals/graph#walking-the-graph)). Valid values are between 1 and 256, inclusive, and the default is `10`. Note that `TFE_PARALLELISM` has no effect when using remote operations in Terraform Cloud. To control parallelism in remote runs, use [`TF_CLI_ARGS_plan`](/terraform/cli/config/environment-variables#tf-cli-args) and [`TF_CLI_ARGS_apply`](/terraform/cli/config/environment-variables#tf-cli-args) instead. For more information, see [this support article](https://support.hashicorp.com/hc/en-us/articles/12116956529683-TFE-PARRALLELISM-1-is-not-the-same-as-running-parallelism-1). HCP Terraform agents also do not support `TFE_PARALLELISM`, and likewise require `TF_CLI_ARGS_*` variables.
 
 !> **Warning:** We recommend reading and understanding [Terraform parallelism](https://support.hashicorp.com/hc/en-us/articles/10348130482451) prior to setting `TFE_PARALLELISM`. You can also contact HashiCorp support for direct advice.