diff --git a/terraform/context_apply_test.go b/terraform/context_apply_test.go
index fee347b63..77b0579fb 100644
--- a/terraform/context_apply_test.go
+++ b/terraform/context_apply_test.go
@@ -2708,6 +2708,49 @@ func TestContext2Apply_moduleBool(t *testing.T) {
 	}
 }
 
+// Tests that a module can be targeted and everything is properly created.
+// This adds to the plan test to also just verify that apply works.
+func TestContext2Apply_moduleTarget(t *testing.T) {
+	m := testModule(t, "plan-targeted-cross-module")
+	p := testProvider("aws")
+	p.ApplyFn = testApplyFn
+	p.DiffFn = testDiffFn
+	ctx := testContext2(t, &ContextOpts{
+		Module: m,
+		Providers: map[string]ResourceProviderFactory{
+			"aws": testProviderFuncFixed(p),
+		},
+		Targets: []string{"module.B"},
+	})
+
+	if _, err := ctx.Plan(); err != nil {
+		t.Fatalf("err: %s", err)
+	}
+
+	state, err := ctx.Apply()
+	if err != nil {
+		t.Fatalf("err: %s", err)
+	}
+
+	checkStateString(t, state, `
+<no state>
+module.A:
+  aws_instance.foo:
+    ID = foo
+    foo = bar
+    type = aws_instance
+
+  Outputs:
+
+  value = foo
+module.B:
+  aws_instance.bar:
+    ID = foo
+    foo = foo
+    type = aws_instance
+	`)
+}
+
 func TestContext2Apply_multiProvider(t *testing.T) {
 	m := testModule(t, "apply-multi-provider")
 	p := testProvider("aws")
diff --git a/terraform/context_plan_test.go b/terraform/context_plan_test.go
index 9dd6e14f4..4902def11 100644
--- a/terraform/context_plan_test.go
+++ b/terraform/context_plan_test.go
@@ -2341,6 +2341,47 @@ STATE:
 	}
 }
 
+// Test that targeting a module properly plans any inputs that depend
+// on another module.
+func TestContext2Plan_targetedCrossModule(t *testing.T) {
+	m := testModule(t, "plan-targeted-cross-module")
+	p := testProvider("aws")
+	p.DiffFn = testDiffFn
+	ctx := testContext2(t, &ContextOpts{
+		Module: m,
+		Providers: map[string]ResourceProviderFactory{
+			"aws": testProviderFuncFixed(p),
+		},
+		Targets: []string{"module.B"},
+	})
+
+	plan, err := ctx.Plan()
+	if err != nil {
+		t.Fatalf("err: %s", err)
+	}
+
+	actual := strings.TrimSpace(plan.String())
+	expected := strings.TrimSpace(`
+DIFF:
+
+module.A:
+  CREATE: aws_instance.foo
+    foo:  "" => "bar"
+    type: "" => "aws_instance"
+module.B:
+  CREATE: aws_instance.bar
+    foo:  "" => "<computed>"
+    type: "" => "aws_instance"
+
+STATE:
+
+<no state>
+	`)
+	if actual != expected {
+		t.Fatalf("expected:\n%s\n\ngot:\n%s", expected, actual)
+	}
+}
+
 func TestContext2Plan_targetedOrphan(t *testing.T) {
 	m := testModule(t, "plan-targeted-orphan")
 	p := testProvider("aws")
diff --git a/terraform/graph_builder_plan.go b/terraform/graph_builder_plan.go
index 7dd5708d3..640245fc6 100644
--- a/terraform/graph_builder_plan.go
+++ b/terraform/graph_builder_plan.go
@@ -89,6 +89,12 @@ func (b *PlanGraphBuilder) Steps() []GraphTransformer {
 		// Attach the state
 		&AttachStateTransformer{State: b.State},
 
+		// Add root variables
+		&RootVariableTransformer{Module: b.Module},
+
+		// Add module variables
+		&ModuleVariableTransformer{Module: b.Module},
+
 		// Connect so that the references are ready for targeting. We'll
 		// have to connect again later for providers and so on.
 		&ReferenceTransformer{},
@@ -103,12 +109,6 @@ func (b *PlanGraphBuilder) Steps() []GraphTransformer {
 		&ParentProviderTransformer{},
 		&AttachProviderConfigTransformer{Module: b.Module},
 
-		// Add root variables
-		&RootVariableTransformer{Module: b.Module},
-
-		// Add module variables
-		&ModuleVariableTransformer{Module: b.Module},
-
 		// Connect references again to connect the providers, module variables,
 		// etc. This is idempotent.
 		&ReferenceTransformer{},
diff --git a/terraform/node_module_variable.go b/terraform/node_module_variable.go
index 9b7ddbf2f..13fe8fc3a 100644
--- a/terraform/node_module_variable.go
+++ b/terraform/node_module_variable.go
@@ -37,6 +37,13 @@ func (n *NodeApplyableModuleVariable) Path() []string {
 	return rootModulePath
 }
 
+// RemovableIfNotTargeted
+func (n *NodeApplyableModuleVariable) RemoveIfNotTargeted() bool {
+	// We need to add this so that this node will be removed if
+	// it isn't targeted or a dependency of a target.
+	return true
+}
+
 // GraphNodeReferenceGlobal
 func (n *NodeApplyableModuleVariable) ReferenceGlobal() bool {
 	// We have to create fully qualified references because we cross
diff --git a/terraform/test-fixtures/plan-targeted-cross-module/A/main.tf b/terraform/test-fixtures/plan-targeted-cross-module/A/main.tf
new file mode 100644
index 000000000..f825ecf8a
--- /dev/null
+++ b/terraform/test-fixtures/plan-targeted-cross-module/A/main.tf
@@ -0,0 +1,5 @@
+resource "aws_instance" "foo" {
+    foo = "bar"
+}
+
+output "value" { value = "${aws_instance.foo.id}" }
diff --git a/terraform/test-fixtures/plan-targeted-cross-module/B/main.tf b/terraform/test-fixtures/plan-targeted-cross-module/B/main.tf
new file mode 100644
index 000000000..c3aeb7b76
--- /dev/null
+++ b/terraform/test-fixtures/plan-targeted-cross-module/B/main.tf
@@ -0,0 +1,5 @@
+variable "input" {}
+
+resource "aws_instance" "bar" {
+    foo = "${var.input}"
+}
diff --git a/terraform/test-fixtures/plan-targeted-cross-module/main.tf b/terraform/test-fixtures/plan-targeted-cross-module/main.tf
new file mode 100644
index 000000000..e6a83b2a0
--- /dev/null
+++ b/terraform/test-fixtures/plan-targeted-cross-module/main.tf
@@ -0,0 +1,8 @@
+module "A" {
+    source = "./A"
+}
+
+module "B" {
+    source = "./B"
+    input  = "${module.A.value}"
+}