diff --git a/lib/helpers.sh b/lib/helpers.sh
index 535232d..822469f 100755
--- a/lib/helpers.sh
+++ b/lib/helpers.sh
@@ -126,6 +126,8 @@ function cleanup() {
   rm -rf ./.terraform-version;
   log 'debug' "Deleting ${pwd}/latest_allowed.tf";
   rm -rf ./latest_allowed.tf;
+  log 'debug' "Deleting ${pwd}/latest_allowed_stable.tf";
+    rm -rf ./latest_allowed_stable.tf;
   log 'debug' "Deleting ${pwd}/min_required.tf";
   rm -rf ./min_required.tf;
   log 'debug' "Deleting ${pwd}/chdir-dir";
@@ -149,6 +151,25 @@ function check_dependencies() {
     alias grep=ggrep;
   fi;
 };
+
+function generate_regex_for_latest_allowed_stable() {
+    local constraint="$1"
+
+    # Extract major, minor, patch, and optional pre-release tag
+    local major minor patch pre_release
+    IFS='.-' read -r major minor patch pre_release <<< "$constraint"
+
+    # Start building the regex pattern
+    local regex="^${major}\."
+    regex+="("
+    regex+="${minor}\.${patch}-${pre_release}"
+    regex+="|$(seq 0 $(($minor - 1)) | sed 's/[0-9]*/&\.[0-9]+|/g' | tr -d '\n')"
+    regex="${regex%|}"
+    regex+=")$"
+
+    echo "$regex"
+}
+
 export -f check_dependencies;
 
 source "$TFENV_ROOT/lib/tfenv-exec.sh";
diff --git a/libexec/tfenv-resolve-version b/libexec/tfenv-resolve-version
index 69468e5..4d0e325 100755
--- a/libexec/tfenv-resolve-version
+++ b/libexec/tfenv-resolve-version
@@ -127,7 +127,7 @@ if [[ "${version_requested}" =~ ^min-required$ ]]; then
   version_requested="${min_required}";
 fi;
 
-if [[ "${version_requested}" =~ ^latest-allowed$ ]]; then
+if [[ "${version_requested}" =~ ^latest-allowed(-stable)?$ ]]; then
   log 'debug' 'Detecting latest allowable version...';
   version_spec="$(grep -h required_version "${TFENV_DIR:-$(pwd)}"/{*.tf,*.tf.json} 2>/dev/null | { IFS='"' read -r _ ver _; echo "${ver%%,*}"; })";
   version_num="$(echo "${version_spec}" | sed -E 's/[^0-9.]+//')";
@@ -138,11 +138,39 @@ if [[ "${version_requested}" =~ ^latest-allowed$ ]]; then
       version_requested=latest;
       ;;
     '<='*)
-      version_requested="${version_num}";
+      IFS='.-' read -r major minor patch pre_release <<< "${version_num}"
+      if [[ "${version_requested}" =~ latest-allowed-stable$ && -n "${pre_release}" ]]; then
+        constraint_regex="^"
+        if [[ "$major" != 0 ]]; then
+          constraint_regex="^$(seq 0 $((major - 1)) | sed "s/[0-9]*/&\\\.[0-9]\\\+\\\.[0-9]\\\+\\\|/g" | tr -d '\n')"
+        fi
+
+        if [[ "$minor" != 0 ]]; then
+          constraint_regex+="$(seq 0 $((minor - 1)) | sed "s/[0-9]*/${major}\\\.&\\\.[0-9]\\\+\\\|/g" | tr -d '\n')"
+        fi
+
+        constraint_regex="${constraint_regex%\\|}" # Remove trailing '|'
+        constraint_regex+="$"
+        version_requested="latest:${constraint_regex}"
+      else
+        version_requested="${version_num}";
+      fi
       ;;
     '~>'*)
       version_without_rightmost="${version_num%.*}";
-      version_requested="latest:^${version_without_rightmost}";
+      if [[ "${version_without_rightmost}" == "${version_num}" ]]; then
+        version_requested=latest
+      elif [[ "${version_requested}" =~ ^latest-allowed-stable$ ]]; then
+        IFS='.' read -ra version_without_rightmost_parts <<< "${version_without_rightmost}"
+        version_without_rightmost_count=${#version_without_rightmost_parts[@]}
+        version_requested="latest:^${version_without_rightmost}"
+        for (( i = version_without_rightmost_count; i < 3; i++ )); do
+            version_requested+="\.[0-9]\+"
+        done
+        version_requested+="$"
+      else
+        version_requested="latest:^${version_without_rightmost}"
+      fi
       ;;
     *)
       log 'error' "Unsupported version spec: '${version_spec}', only >, >=, <=, and ~> are supported.";
diff --git a/test/test_use_latestallowed.sh b/test/test_use_latestallowedstable.sh
similarity index 67%
rename from test/test_use_latestallowed.sh
rename to test/test_use_latestallowedstable.sh
index 10af0d5..13ad876 100755
--- a/test/test_use_latestallowed.sh
+++ b/test/test_use_latestallowedstable.sh
@@ -53,62 +53,74 @@ declare -a errors=();
 cleanup || log 'error' 'Cleanup failed?!';
 
 
-log 'info' '### Install latest-allowed normal version (#.#.#)';
+log 'info' '### Install latest-allowed-stable normal version (#.#.#)';
 
 echo "terraform {
   required_version = \"~> 1.1.0\"
-}" > latest_allowed.tf;
+}" > latest_allowed_stable.tf;
 
 (
-  tfenv install latest-allowed;
-  tfenv use latest-allowed;
+  tfenv install latest-allowed-stable;
+  tfenv use latest-allowed-stable;
   check_active_version 1.1.9;
-) || error_and_proceed 'Latest allowed version does not match';
+) || error_and_proceed 'Latest allowed stable version does not match';
 
 cleanup || log 'error' 'Cleanup failed?!';
 
-
-log 'info' '### Install latest-allowed tagged version (#.#.#-tag#)'
+log 'info' '### Install latest-allowed-stable tagged version (#.#.#-tag#)'
 
 echo "terraform {
     required_version = \"<=0.13.0-rc1\"
-}" > latest_allowed.tf;
+}" > latest_allowed_stable.tf;
 
 (
-  tfenv install latest-allowed;
-  tfenv use latest-allowed;
-  check_active_version 0.13.0-rc1;
-) || error_and_proceed 'Latest allowed tagged-version does not match';
+  tfenv install latest-allowed-stable;
+  tfenv use latest-allowed-stable;
+  check_active_version 0.12.31;
+) || error_and_proceed 'Latest allowed stable tagged-version does not match';
+
+cleanup || log 'error' 'Cleanup failed?!';
+
+
+echo "terraform {
+    required_version = \"<=1.1.0-alpha20211006\"
+}" > latest_allowed_stable.tf;
+
+(
+  tfenv install latest-allowed-stable;
+  tfenv use latest-allowed-stable;
+  check_active_version 1.0.11;
+) || error_and_proceed 'Latest allowed stable tagged-version does not match';
 
 cleanup || log 'error' 'Cleanup failed?!';
 
 
-log 'info' '### Install latest-allowed incomplete version (#.#.<missing>)'
+log 'info' '### Install latest-allowed-stable incomplete version (#.#.<missing>)'
 
 echo "terraform {
   required_version = \"~> 0.12\"
-}" >> latest_allowed.tf;
+}" >> latest_allowed_stable.tf;
 
 (
-  tfenv install latest-allowed;
-  tfenv use latest-allowed;
+  tfenv install latest-allowed-stable;
+  tfenv use latest-allowed-stable;
   check_active_version 0.15.5;
-) || error_and_proceed 'Latest allowed incomplete-version does not match';
+) || error_and_proceed 'Latest allowed stable incomplete-version does not match';
 
 cleanup || log 'error' 'Cleanup failed?!';
 
 
-log 'info' '### Install latest-allowed with TFENV_AUTO_INSTALL';
+log 'info' '### Install latest-allowed-stable with TFENV_AUTO_INSTALL';
 
 echo "terraform {
   required_version = \"~> 1.0.0\"
-}" >> latest_allowed.tf;
-echo 'latest-allowed' > .terraform-version;
+}" >> latest_allowed_stable.tf;
+echo 'latest-allowed-stable' > .terraform-version;
 
 (
   TFENV_AUTO_INSTALL=true terraform version;
   check_active_version 1.0.11;
-) || error_and_proceed 'Latest allowed auto-installed version does not match';
+) || error_and_proceed 'Latest allowed stable auto-installed version does not match';
 
 cleanup || log 'error' 'Cleanup failed?!';
 
@@ -119,7 +131,7 @@ mkdir -p chdir-dir
 echo "terraform {
   required_version = \"~> 0.14.3\"
 }" >> chdir-dir/latest_allowed.tf;
-echo 'latest-allowed' > chdir-dir/.terraform-version
+echo 'latest-allowed-stable' > chdir-dir/.terraform-version
 
 (
   TFENV_AUTO_INSTALL=true terraform -chdir=chdir-dir version;