diff --git a/terraform/context_plan_test.go b/terraform/context_plan_test.go
index 465695c96..c8f6e3fd4 100644
--- a/terraform/context_plan_test.go
+++ b/terraform/context_plan_test.go
@@ -5948,6 +5948,61 @@ resource "aws_instance" "foo" {
 	}
 }
 
+func TestContext2Plan_targetResourceInModuleInstance(t *testing.T) {
+	m := testModuleInline(t, map[string]string{
+		"main.tf": `
+module "mod" {
+  count = 3
+  source = "./mod"
+}
+`,
+		"mod/main.tf": `
+resource "aws_instance" "foo" {
+}
+`,
+	})
+
+	p := testProvider("aws")
+	p.DiffFn = testDiffFn
+
+	target, diags := addrs.ParseTargetStr("module.mod[1].aws_instance.foo")
+	if diags.HasErrors() {
+		t.Fatal(diags.ErrWithWarnings())
+	}
+
+	targets := []addrs.Targetable{target.Subject}
+
+	ctx := testContext2(t, &ContextOpts{
+		Config: m,
+		Providers: map[addrs.Provider]providers.Factory{
+			addrs.NewDefaultProvider("aws"): testProviderFuncFixed(p),
+		},
+		Targets: targets,
+	})
+
+	plan, diags := ctx.Plan()
+	if diags.HasErrors() {
+		t.Fatal(diags.ErrWithWarnings())
+	}
+
+	expected := map[string]plans.Action{
+		// the single targeted mod[1] instance
+		`module.mod[1].aws_instance.foo`: plans.Create,
+	}
+
+	for _, res := range plan.Changes.Resources {
+		want := expected[res.Addr.String()]
+		if res.Action != want {
+			t.Fatalf("expected %s action, got: %q %s", want, res.Addr, res.Action)
+		}
+		delete(expected, res.Addr.String())
+	}
+
+	for res, action := range expected {
+		t.Errorf("missing %s change for %s", action, res)
+	}
+}
+
 func TestContext2Plan_moduleRefIndex(t *testing.T) {
 	m := testModuleInline(t, map[string]string{
 		"main.tf": `
diff --git a/terraform/graph_builder_plan.go b/terraform/graph_builder_plan.go
index 1cb0e5ee2..0354ce238 100644
--- a/terraform/graph_builder_plan.go
+++ b/terraform/graph_builder_plan.go
@@ -157,12 +157,6 @@ func (b *PlanGraphBuilder) Steps() []GraphTransformer {
 		// Target
 		&TargetsTransformer{
 			Targets: b.Targets,
-
-			// Resource nodes from config have not yet been expanded for
-			// "count", so we must apply targeting without indices. Exact
-			// targeting will be dealt with later when these resources
-			// DynamicExpand.
-			IgnoreIndices: true,
 		},
 
 		// Detect when create_before_destroy must be forced on for a particular
diff --git a/terraform/graph_builder_refresh.go b/terraform/graph_builder_refresh.go
index 546fdff63..e91123a1c 100644
--- a/terraform/graph_builder_refresh.go
+++ b/terraform/graph_builder_refresh.go
@@ -176,12 +176,6 @@ func (b *RefreshGraphBuilder) Steps() []GraphTransformer {
 		// Target
 		&TargetsTransformer{
 			Targets: b.Targets,
-
-			// Resource nodes from config have not yet been expanded for
-			// "count", so we must apply targeting without indices. Exact
-			// targeting will be dealt with later when these resources
-			// DynamicExpand.
-			IgnoreIndices: true,
 		},
 
 		// Close opened plugin connections
diff --git a/terraform/transform_targets.go b/terraform/transform_targets.go
index e2b2cf525..abbc92d4f 100644
--- a/terraform/transform_targets.go
+++ b/terraform/transform_targets.go
@@ -22,12 +22,6 @@ type GraphNodeTargetable interface {
 type TargetsTransformer struct {
 	// List of targeted resource names specified by the user
 	Targets []addrs.Targetable
-
-	// If set, the index portions of resource addresses will be ignored
-	// for comparison. This is used when transforming a graph where
-	// counted resources have not yet been expanded, since otherwise
-	// the unexpanded nodes (which never have indices) would not match.
-	IgnoreIndices bool
 }
 
 func (t *TargetsTransformer) Transform(g *Graph) error {
@@ -133,25 +127,27 @@ func (t *TargetsTransformer) nodeIsTarget(v dag.Vertex, targets []addrs.Targetab
 		vertexAddr = r.ResourceInstanceAddr()
 	case GraphNodeConfigResource:
 		vertexAddr = r.ResourceAddr()
+
 	default:
 		// Only resource and resource instance nodes can be targeted.
 		return false
 	}
 
 	for _, targetAddr := range targets {
-		if t.IgnoreIndices {
-			// If we're ignoring indices then we'll convert any resource instance
-			// addresses into resource addresses. We don't need to convert
-			// vertexAddr because instance addresses are contained within
-			// their associated resources, and so .TargetContains will take
-			// care of this for us.
-			switch instance := targetAddr.(type) {
+		switch vertexAddr.(type) {
+		case addrs.ConfigResource:
+			// Before expansion happens, we only have nodes that know their
+			// ConfigResource address.  We need to take the more specific
+			// target addresses and generalize them in order to compare with a
+			// ConfigResource.
+			switch target := targetAddr.(type) {
 			case addrs.AbsResourceInstance:
-				targetAddr = instance.ContainingResource().Config()
-			case addrs.ModuleInstance:
-				targetAddr = instance.Module()
+				targetAddr = target.ContainingResource().Config()
+			case addrs.AbsResource:
+				targetAddr = target.Config()
 			}
 		}
+
 		if targetAddr.TargetContains(vertexAddr) {
 			return true
 		}