diff --git a/terraform/context_plan_test.go b/terraform/context_plan_test.go
index 8b680879d..8afb4c320 100644
--- a/terraform/context_plan_test.go
+++ b/terraform/context_plan_test.go
@@ -2969,6 +2969,28 @@ STATE:
 	}
 }
 
+// ensure that outputs missing references due to targetting are removed from
+// the graph.
+func TestContext2Plan_outputContainsTargetedResource(t *testing.T) {
+	m := testModule(t, "plan-untargeted-resource-output")
+	p := testProvider("aws")
+	p.DiffFn = testDiffFn
+	ctx := testContext2(t, &ContextOpts{
+		Module: m,
+		ProviderResolver: ResourceProviderResolverFixed(
+			map[string]ResourceProviderFactory{
+				"aws": testProviderFuncFixed(p),
+			},
+		),
+		Targets: []string{"module.mod.aws_instance.a"},
+	})
+
+	_, err := ctx.Plan()
+	if err != nil {
+		t.Fatalf("err: %s", err)
+	}
+}
+
 // https://github.com/hashicorp/terraform/issues/4515
 func TestContext2Plan_targetedOverTen(t *testing.T) {
 	m := testModule(t, "plan-targeted-over-ten")
diff --git a/terraform/test-fixtures/plan-untargeted-resource-output/main.tf b/terraform/test-fixtures/plan-untargeted-resource-output/main.tf
new file mode 100644
index 000000000..9d4a1c882
--- /dev/null
+++ b/terraform/test-fixtures/plan-untargeted-resource-output/main.tf
@@ -0,0 +1,8 @@
+module "mod" {
+  source = "./mod"
+}
+
+
+resource "aws_instance" "c" {
+  name = "${module.mod.output}"
+}
diff --git a/terraform/test-fixtures/plan-untargeted-resource-output/mod/main.tf b/terraform/test-fixtures/plan-untargeted-resource-output/mod/main.tf
new file mode 100644
index 000000000..d7ee9a7fa
--- /dev/null
+++ b/terraform/test-fixtures/plan-untargeted-resource-output/mod/main.tf
@@ -0,0 +1,15 @@
+locals {
+  "one" = 1
+}
+
+resource "aws_instance" "a" {
+  count = "${local.one}"
+}
+
+resource "aws_instance" "b" {
+  count = "${local.one}"
+}
+
+output "output" {
+  value = "${join("", coalescelist(aws_instance.a.*.id, aws_instance.b.*.id))}"
+}
diff --git a/terraform/transform_targets.go b/terraform/transform_targets.go
index 0cfcb0ac0..af6defe36 100644
--- a/terraform/transform_targets.go
+++ b/terraform/transform_targets.go
@@ -217,6 +217,12 @@ func filterPartialOutputs(v interface{}, targetedNodes *dag.Set, g *Graph) bool
 		if _, ok := d.(*NodeCountBoundary); ok {
 			continue
 		}
+
+		if !targetedNodes.Include(d) {
+			// this one is going to be removed, so it doesn't count
+			continue
+		}
+
 		// as soon as we see a real dependency, we mark this as
 		// non-removable
 		return true