diff --git a/terraform/context_apply_test.go b/terraform/context_apply_test.go
index f933301bc..27f89da18 100644
--- a/terraform/context_apply_test.go
+++ b/terraform/context_apply_test.go
@@ -1014,6 +1014,61 @@ aws_instance.bar.1:
 	`)
 }
 
+// Test that when we have a deposed instance but a good primary, we still
+// destroy the deposed instance.
+func TestContext2Apply_createBeforeDestroy_deposedOnly(t *testing.T) {
+	m := testModule(t, "apply-cbd-deposed-only")
+	p := testProvider("aws")
+	p.ApplyFn = testApplyFn
+	p.DiffFn = testDiffFn
+
+	state := &State{
+		Modules: []*ModuleState{
+			&ModuleState{
+				Path: rootModulePath,
+				Resources: map[string]*ResourceState{
+					"aws_instance.bar": &ResourceState{
+						Type: "aws_instance",
+						Primary: &InstanceState{
+							ID: "bar",
+						},
+
+						Deposed: []*InstanceState{
+							&InstanceState{
+								ID: "foo",
+							},
+						},
+					},
+				},
+			},
+		},
+	}
+
+	ctx := testContext2(t, &ContextOpts{
+		Module: m,
+		Providers: map[string]ResourceProviderFactory{
+			"aws": testProviderFuncFixed(p),
+		},
+		State: state,
+	})
+
+	if p, err := ctx.Plan(); err != nil {
+		t.Fatalf("err: %s", err)
+	} else {
+		t.Logf(p.String())
+	}
+
+	state, err := ctx.Apply()
+	if err != nil {
+		t.Fatalf("err: %s", err)
+	}
+
+	checkStateString(t, state, `
+aws_instance.bar:
+  ID = bar
+	`)
+}
+
 func TestContext2Apply_destroyComputed(t *testing.T) {
 	m := testModule(t, "apply-destroy-computed")
 	p := testProvider("aws")
diff --git a/terraform/test-fixtures/apply-cbd-deposed-only/main.tf b/terraform/test-fixtures/apply-cbd-deposed-only/main.tf
new file mode 100644
index 000000000..4e5f481c5
--- /dev/null
+++ b/terraform/test-fixtures/apply-cbd-deposed-only/main.tf
@@ -0,0 +1,3 @@
+resource "aws_instance" "bar" {
+    lifecycle { create_before_destroy = true }
+}
diff --git a/terraform/test-fixtures/apply-good-create-before-count/main.tf b/terraform/test-fixtures/apply-good-create-before-count/main.tf
new file mode 100644
index 000000000..324ad5285
--- /dev/null
+++ b/terraform/test-fixtures/apply-good-create-before-count/main.tf
@@ -0,0 +1,7 @@
+resource "aws_instance" "bar" {
+    count = 2
+    require_new = "xyz"
+    lifecycle {
+        create_before_destroy = true
+    }
+}
diff --git a/terraform/transform_diff.go b/terraform/transform_diff.go
index 68e905346..ad46d3c61 100644
--- a/terraform/transform_diff.go
+++ b/terraform/transform_diff.go
@@ -58,7 +58,7 @@ func (t *DiffTransformer) Transform(g *Graph) error {
 			addr.Path = m.Path[1:]
 
 			// If we're destroying, add the destroy node
-			if inst.Destroy {
+			if inst.Destroy || inst.GetDestroyDeposed() {
 				abstract := &NodeAbstractResource{Addr: addr}
 				g.Add(&NodeDestroyResource{NodeAbstractResource: abstract})
 			}
diff --git a/test/foo/main.tf b/test/foo/main.tf
new file mode 100644
index 000000000..ce7a57d4c
--- /dev/null
+++ b/test/foo/main.tf
@@ -0,0 +1,9 @@
+resource "null_resource" "foo" {
+  count = 2
+
+  provisioner "local-exec" { command = "sleep ${count.index*3}" }
+
+  //provisioner "local-exec" { command = "exit 1" }
+
+  lifecycle { create_before_destroy = true }
+}
diff --git a/test/index.html b/test/index.html
new file mode 100644
index 000000000..3fa0d4b98
--- /dev/null
+++ b/test/index.html
@@ -0,0 +1 @@
+Hello, World
diff --git a/test/main.tf b/test/main.tf
new file mode 100644
index 000000000..09f29ef13
--- /dev/null
+++ b/test/main.tf
@@ -0,0 +1,13 @@
+variable "username" {
+  default = "bob"
+}
+
+data "template_file" "user" {
+  template = "$${USERNAME}"
+  vars {
+    USERNAME = "${var.username}"
+  }
+  provisioner "local-exec" {
+    command = "echo ${self.rendered} > user.txt"
+  }
+}
diff --git a/test/real.tfstate b/test/real.tfstate
new file mode 100644
index 000000000..807ef6963
--- /dev/null
+++ b/test/real.tfstate
@@ -0,0 +1,45 @@
+{
+    "version": 3,
+    "terraform_version": "0.7.2",
+    "serial": 393,
+    "lineage": "e8e8cc31-ebe6-4260-bb6a-eed53258cc08",
+    "modules": [
+        {
+            "path": [
+                "root"
+            ],
+            "outputs": {},
+            "resources": {
+                "aws_route53_record.rslc-xxx-test-route53-record": {
+                    "type": "aws_route53_record",
+                    "depends_on": [
+                    ],
+                    "primary": {
+                        "id": "ZKBENUPLDUDMJ_xxx-test.rslcare.com.au_A",
+                        "attributes": {
+                            "alias.#": "1",
+                            "alias.2624757427.evaluate_target_health": "false",
+                            "alias.2624757427.name": "awseb-e-3-AWSEBLoa-1OO1X7V7IRMMF-999999999.ap-southeast-2.elb.amazonaws.com.",
+                            "alias.2624757427.zone_id": "Z2999QAZ9SRTIC",
+                            "fqdn": "hws-test.rslcare.com.au",
+                            "health_check_id": "",
+                            "id": "ZKBENUPLDUDMJ_hws-test.rslcare.com.au_A",
+                            "name": "xxx-test.example.com",
+                            "records.#": "0",
+                            "set_identifier": "",
+                            "ttl": "0",
+                            "type": "A",
+                            "zone_id": "ZKBENUPLDUDMJ"
+                        },
+                        "meta": {
+                            "schema_version": "2"
+                        },
+                        "tainted": false
+                    },
+                    "deposed": [],
+                    "provider": ""
+                }
+            }
+        }
+    ]
+}