diff --git a/ls/ls.go b/ls/ls.go
index 1c4c48eda2..096c76cab5 100644
--- a/ls/ls.go
+++ b/ls/ls.go
@@ -7,7 +7,7 @@ package tmls
 import (
 	"context"
 	"encoding/json"
-	"fmt"
+	stdfmt "fmt"
 	"os"
 	"path/filepath"
 	"sort"
@@ -18,6 +18,7 @@ import (
 	"github.com/terramate-io/terramate/config"
 	"github.com/terramate-io/terramate/errors"
 	"github.com/terramate-io/terramate/hcl"
+	"github.com/terramate-io/terramate/hcl/fmt"
 	"go.lsp.dev/jsonrpc2"
 	lsp "go.lsp.dev/protocol"
 	"go.lsp.dev/uri"
@@ -68,6 +69,7 @@ func (s *Server) buildHandlers() {
 		lsp.MethodTextDocumentDidChange:  s.handleDocumentChange,
 		lsp.MethodTextDocumentDidSave:    s.handleDocumentSaved,
 		lsp.MethodTextDocumentCompletion: s.handleCompletion,
+		lsp.MethodTextDocumentFormatting: s.handleFormatting,
 
 		// commands
 		MethodExecuteCommand: s.handleExecuteCommand,
@@ -116,7 +118,8 @@ func (s *Server) handleInitialize(
 	s.workspace = string(uri.New(params.RootURI).Filename())
 	err := reply(ctx, lsp.InitializeResult{
 		Capabilities: lsp.ServerCapabilities{
-			CompletionProvider: &lsp.CompletionOptions{},
+			DocumentFormattingProvider: true,
+			CompletionProvider:         &lsp.CompletionOptions{},
 
 			// if we support `goto` definition.
 			DefinitionProvider: false,
@@ -197,7 +200,7 @@ func (s *Server) handleDocumentChange(
 	}
 
 	if len(params.ContentChanges) != 1 {
-		err := fmt.Errorf("expected content changes = 1, got = %d", len(params.ContentChanges))
+		err := stdfmt.Errorf("expected content changes = 1, got = %d", len(params.ContentChanges))
 		log.Error().Err(err).Send()
 		return err
 	}
@@ -300,6 +303,52 @@ func (s *Server) handleCompletion(
 	return reply(ctx, nil, nil)
 }
 
+func (s *Server) handleFormatting(
+	ctx context.Context,
+	reply jsonrpc2.Replier,
+	r jsonrpc2.Request,
+	log zerolog.Logger,
+) error {
+	var params lsp.CompletionParams
+	if err := json.Unmarshal(r.Params(), &params); err != nil {
+		log.Error().Err(err).Msg("failed to unmarshal params")
+		return jsonrpc2.ErrParse
+	}
+	log.Debug().Str("params", string(r.Params()))
+	fname := params.TextDocument.URI.Filename()
+	content, err := os.ReadFile(fname)
+	if err != nil {
+		log.Error().Err(err).Msg("failed to read file for formatting")
+		return reply(ctx, nil, err)
+	}
+	formatted, err := fmt.Format(string(content), fname)
+	if err != nil {
+		log.Error().Err(err).Msg("failed to format file")
+		return reply(ctx, nil, err)
+	}
+	log.Info().Msgf("formatted:'%s'", formatted)
+	oldlines := strings.Split(string(content), "\n")
+	return reply(ctx, []lsp.TextEdit{
+		// remove old content
+		{
+			NewText: "",
+			Range: lsp.Range{
+				Start: lsp.Position{
+					Line:      0,
+					Character: 0,
+				},
+				End: lsp.Position{
+					Line:      uint32(len(oldlines) - 1),
+					Character: uint32(len(oldlines[len(oldlines)-1])),
+				},
+			},
+		},
+		{
+			NewText: formatted,
+		},
+	}, nil)
+}
+
 func (s *Server) sendDiagnostics(ctx context.Context, uri lsp.URI, diags []lsp.Diagnostic) {
 	err := s.conn.Notify(ctx, lsp.MethodTextDocumentPublishDiagnostics, lsp.PublishDiagnosticsParams{
 		URI:         uri,
diff --git a/ls/ls_test.go b/ls/ls_test.go
index f62d67fcc6..95aeb9d794 100644
--- a/ls/ls_test.go
+++ b/ls/ls_test.go
@@ -6,6 +6,7 @@ package tmls_test
 import (
 	"encoding/json"
 	"fmt"
+	"path"
 	"path/filepath"
 	"sort"
 	"testing"
@@ -45,6 +46,42 @@ func TestDocumentOpen(t *testing.T) {
 		params.URI.Filename())
 }
 
+func TestDocumentFormat(t *testing.T) {
+	t.Parallel()
+	f := lstest.Setup(t)
+
+	stack := f.Sandbox.CreateStack("stack")
+	f.Editor.CheckInitialize(f.Sandbox.RootDir())
+
+	fileContent := "  stack {\n  }"
+	stack.CreateFile(stackpkg.DefaultFilename, fileContent)
+	gotEdits, err := f.Editor.Format(path.Join(stack.RelPath(), stackpkg.DefaultFilename))
+	assert.NoError(t, err)
+
+	want := []lsp.TextEdit{
+		{
+			NewText: "",
+			Range: lsp.Range{
+				Start: lsp.Position{
+					Line:      0,
+					Character: 0,
+				},
+				End: lsp.Position{
+					Line:      1,
+					Character: 3,
+				},
+			},
+		},
+		{
+			NewText: "stack {\n}",
+		},
+	}
+
+	if diff := cmp.Diff(gotEdits, want); diff != "" {
+		t.Fatalf(diff)
+	}
+}
+
 func TestDocumentOpenWithoutRootConfig(t *testing.T) {
 	t.Parallel()
 	f := lstest.SetupNoRootConfig(t)
diff --git a/test/ls/editor.go b/test/ls/editor.go
index 9b72142fc9..6a2f11362c 100644
--- a/test/ls/editor.go
+++ b/test/ls/editor.go
@@ -128,6 +128,20 @@ func (e *Editor) Change(path, content string) {
 	assert.NoError(t, err, "call %q", lsp.MethodTextDocumentDidChange)
 }
 
+func (e *Editor) Format(path string) ([]lsp.TextEdit, error) {
+	t := e.t
+	t.Helper()
+	abspath := filepath.Join(e.sandbox.RootDir(), path)
+	var edits []lsp.TextEdit
+	_, err := e.call(lsp.MethodTextDocumentFormatting, lsp.DocumentFormattingParams{
+		TextDocument: lsp.TextDocumentIdentifier{
+			URI: uri.File(abspath),
+		},
+	}, &edits)
+
+	return edits, err
+}
+
 // Command invokes the provided command in the LSP server.
 func (e *Editor) Command(cmd lsp.ExecuteCommandParams) (interface{}, error) {
 	t := e.t
@@ -150,6 +164,7 @@ func DefaultInitializeResult() lsp.InitializeResult {
 				"openClose": true,
 				"save":      map[string]interface{}{},
 			},
+			DocumentFormattingProvider: true,
 		},
 	}
 }