diff --git a/CHANGELOG.md b/CHANGELOG.md
index a12237df4..2d94b9f66 100644
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -23,6 +23,7 @@ IMPROVEMENTS:
 
 * cli: The `terraform apply` command now waits for interactive approval of the generated plan before applying it, unless an explicit plan file is provided. [GH-16502]
 * cli: The `terraform versions` command now prints out the version numbers of initialized plugins as well as the version of Terraform core, so that they can be more easily shared when opening GitHub Issues, etc. [GH-16439]
+* cli: A new `TF_DATA_DIR` environment variable can be used to override the location where Terraform stores the files normally placed in the `.terraform` directory. [GH-16207]
 
 BUG FIXES: