diff --git a/terraform/context_test.go b/terraform/context_test.go
index e880bb499..ccd304eb9 100644
--- a/terraform/context_test.go
+++ b/terraform/context_test.go
@@ -3424,8 +3424,7 @@ func TestContext2Apply_provisionerFail_createBeforeDestroy(t *testing.T) {
 	}
 }
 
-/*
-func TestContextApply_error_createBeforeDestroy(t *testing.T) {
+func TestContext2Apply_error_createBeforeDestroy(t *testing.T) {
 	m := testModule(t, "apply-error-create-before")
 	p := testProvider("aws")
 	state := &State{
@@ -3446,7 +3445,7 @@ func TestContextApply_error_createBeforeDestroy(t *testing.T) {
 			},
 		},
 	}
-	ctx := testContext(t, &ContextOpts{
+	ctx := testContext2(t, &ContextOpts{
 		Module: m,
 		Providers: map[string]ResourceProviderFactory{
 			"aws": testProviderFuncFixed(p),
@@ -3470,10 +3469,11 @@ func TestContextApply_error_createBeforeDestroy(t *testing.T) {
 	actual := strings.TrimSpace(state.String())
 	expected := strings.TrimSpace(testTerraformApplyErrorCreateBeforeDestroyStr)
 	if actual != expected {
-		t.Fatalf("bad: \n%s\n\n\n%s", actual, expected)
+		t.Fatalf("bad: \n%s\n\nExpected:\n\n%s", actual, expected)
 	}
 }
 
+/*
 func TestContextApply_errorDestroy_createBeforeDestroy(t *testing.T) {
 	m := testModule(t, "apply-error-create-before")
 	p := testProvider("aws")
diff --git a/terraform/eval_state.go b/terraform/eval_state.go
index 93225e2f9..cf315dade 100644
--- a/terraform/eval_state.go
+++ b/terraform/eval_state.go
@@ -103,6 +103,8 @@ func (n *EvalWriteState) Eval(
 	rs.Type = n.ResourceType
 	rs.Dependencies = n.Dependencies
 
+	println(fmt.Sprintf("%#v", rs))
+	println(fmt.Sprintf("%#v", *n.State))
 	if n.Tainted != nil && *n.Tainted {
 		if n.TaintedIndex != -1 {
 			rs.Tainted[n.TaintedIndex] = *n.State
diff --git a/terraform/transform_resource.go b/terraform/transform_resource.go
index 940a53fa1..dfa06b913 100644
--- a/terraform/transform_resource.go
+++ b/terraform/transform_resource.go
@@ -315,8 +315,9 @@ func (n *graphNodeExpandedResource) EvalTree() EvalNode {
 				},
 				&EvalIf{
 					If: func(ctx EvalContext) (bool, error) {
-						return n.Resource.Lifecycle.CreateBeforeDestroy &&
-							tainted, nil
+						failure := tainted || err != nil
+						tainted = n.Resource.Lifecycle.CreateBeforeDestroy
+						return n.Resource.Lifecycle.CreateBeforeDestroy && failure, nil
 					},
 					Node: &EvalUndeposeState{
 						Name: n.stateId(),