Migrating an existing IAM policy into Terraform usually means wrapping it in an aws_iam_policy resource and choosing how to represent the policy document. IAM Policy to Terraform HCL Converter paste your policy JSON and produces an aws_iam_policy resource block that embeds the document using Terraform's jsonencode(...) function — the standard, idiomatic way most real-world Terraform codebases embed a raw IAM policy, since jsonencode() accepts a JSON-compatible literal directly and keeps the policy easy to read and diff.
The output is a starting point, not a finished module: the resource name and the policy's name argument are clearly labeled placeholders (aws_iam_policy.example, "example-policy") that you should rename to match your own project's conventions, and if your policy needs to reference another resource dynamically (say, a bucket ARN via aws_s3_bucket.example.arn) you will need to add that interpolation by hand — this tool only converts the static JSON you paste, it cannot infer which values should become dynamic Terraform references.
The JSON itself is not rewritten or reinterpreted at all beyond re-indenting it to fit inside the HCL block — every key, action, resource, and condition is preserved exactly as pasted.