diff --git a/api/CHANGELOG.md b/api/CHANGELOG.md
index 020860ed03..f780945529 100644
--- a/api/CHANGELOG.md
+++ b/api/CHANGELOG.md
@@ -6,6 +6,7 @@ All notable changes to the **Prowler API** are documented in this file.
 
 ### Fixed
 - Fix typo in PDF reporting [(#9322)](https://github.com/prowler-cloud/prowler/pull/9322)
+- Fix IaC provider initialization failure when mutelist processor is configured [(#9331)](https://github.com/prowler-cloud/prowler/pull/9331)
 
 ---
 
diff --git a/api/src/backend/api/tests/test_utils.py b/api/src/backend/api/tests/test_utils.py
index d67df93ff5..2229a2f98e 100644
--- a/api/src/backend/api/tests/test_utils.py
+++ b/api/src/backend/api/tests/test_utils.py
@@ -21,6 +21,7 @@ from prowler.providers.aws.lib.security_hub.security_hub import SecurityHubConne
 from prowler.providers.azure.azure_provider import AzureProvider
 from prowler.providers.gcp.gcp_provider import GcpProvider
 from prowler.providers.github.github_provider import GithubProvider
+from prowler.providers.iac.iac_provider import IacProvider
 from prowler.providers.kubernetes.kubernetes_provider import KubernetesProvider
 from prowler.providers.m365.m365_provider import M365Provider
 from prowler.providers.mongodbatlas.mongodbatlas_provider import MongodbatlasProvider
@@ -114,6 +115,7 @@ class TestReturnProwlerProvider:
             (Provider.ProviderChoices.GITHUB.value, GithubProvider),
             (Provider.ProviderChoices.MONGODBATLAS.value, MongodbatlasProvider),
             (Provider.ProviderChoices.ORACLECLOUD.value, OraclecloudProvider),
+            (Provider.ProviderChoices.IAC.value, IacProvider),
         ],
     )
     def test_return_prowler_provider(self, provider_type, expected_provider):
@@ -254,6 +256,72 @@ class TestGetProwlerProviderKwargs:
         expected_result = {**secret_dict, "mutelist_content": {"key": "value"}}
         assert result == expected_result
 
+    def test_get_prowler_provider_kwargs_iac_provider(self):
+        """Test that IaC provider gets correct kwargs with repository URL."""
+        provider_uid = "https://github.com/org/repo"
+        secret_dict = {"access_token": "test_token"}
+        secret_mock = MagicMock()
+        secret_mock.secret = secret_dict
+
+        provider = MagicMock()
+        provider.provider = Provider.ProviderChoices.IAC.value
+        provider.secret = secret_mock
+        provider.uid = provider_uid
+
+        result = get_prowler_provider_kwargs(provider)
+
+        expected_result = {
+            "scan_repository_url": provider_uid,
+            "oauth_app_token": "test_token",
+        }
+        assert result == expected_result
+
+    def test_get_prowler_provider_kwargs_iac_provider_without_token(self):
+        """Test that IaC provider works without access token for public repos."""
+        provider_uid = "https://github.com/org/public-repo"
+        secret_dict = {}
+        secret_mock = MagicMock()
+        secret_mock.secret = secret_dict
+
+        provider = MagicMock()
+        provider.provider = Provider.ProviderChoices.IAC.value
+        provider.secret = secret_mock
+        provider.uid = provider_uid
+
+        result = get_prowler_provider_kwargs(provider)
+
+        expected_result = {"scan_repository_url": provider_uid}
+        assert result == expected_result
+
+    def test_get_prowler_provider_kwargs_iac_provider_ignores_mutelist(self):
+        """Test that IaC provider does NOT receive mutelist_content.
+
+        IaC provider uses Trivy's built-in mutelist logic, so it should not
+        receive mutelist_content even when a mutelist processor is configured.
+        """
+        provider_uid = "https://github.com/org/repo"
+        secret_dict = {"access_token": "test_token"}
+        secret_mock = MagicMock()
+        secret_mock.secret = secret_dict
+
+        mutelist_processor = MagicMock()
+        mutelist_processor.configuration = {"Mutelist": {"key": "value"}}
+
+        provider = MagicMock()
+        provider.provider = Provider.ProviderChoices.IAC.value
+        provider.secret = secret_mock
+        provider.uid = provider_uid
+
+        result = get_prowler_provider_kwargs(provider, mutelist_processor)
+
+        # IaC provider should NOT have mutelist_content
+        assert "mutelist_content" not in result
+        expected_result = {
+            "scan_repository_url": provider_uid,
+            "oauth_app_token": "test_token",
+        }
+        assert result == expected_result
+
     def test_get_prowler_provider_kwargs_unsupported_provider(self):
         # Setup
         provider_uid = "provider_uid"
diff --git a/api/src/backend/api/utils.py b/api/src/backend/api/utils.py
index 958f24b3f0..866088f64a 100644
--- a/api/src/backend/api/utils.py
+++ b/api/src/backend/api/utils.py
@@ -158,7 +158,8 @@ def get_prowler_provider_kwargs(
 
     if mutelist_processor:
         mutelist_content = mutelist_processor.configuration.get("Mutelist", {})
-        if mutelist_content:
+        # IaC provider doesn't support mutelist (uses Trivy's built-in logic)
+        if mutelist_content and provider.provider != Provider.ProviderChoices.IAC.value:
             prowler_provider_kwargs["mutelist_content"] = mutelist_content
 
     return prowler_provider_kwargs