diff --git a/terraform/context_apply_test.go b/terraform/context_apply_test.go
index 4bc016e9f..c61cd8881 100644
--- a/terraform/context_apply_test.go
+++ b/terraform/context_apply_test.go
@@ -11099,3 +11099,121 @@ func TestContext2Apply_taintedDestroyFailure(t *testing.T) {
 		t.Fatalf("unexpected attrs for c: %q\n", c.Current.AttrsJSON)
 	}
 }
+
+func TestContext2Apply_cbdCycle(t *testing.T) {
+	m, snap := testModuleWithSnapshot(t, "apply-cbd-cycle")
+	p := testProvider("test")
+	p.ApplyFn = testApplyFn
+	p.DiffFn = testDiffFn
+
+	state := states.NewState()
+	root := state.EnsureModule(addrs.RootModuleInstance)
+	root.SetResourceInstanceCurrent(
+		addrs.Resource{
+			Mode: addrs.ManagedResourceMode,
+			Type: "test_instance",
+			Name: "a",
+		}.Instance(addrs.NoKey),
+		&states.ResourceInstanceObjectSrc{
+			Status:    states.ObjectReady,
+			AttrsJSON: []byte(`{"id":"a","require_new":"old","foo":"b"}`),
+			Dependencies: []addrs.AbsResource{
+				addrs.AbsResource{
+					Resource: addrs.Resource{
+						Mode: addrs.ManagedResourceMode,
+						Type: "test_instance",
+						Name: "b",
+					},
+					Module: addrs.RootModuleInstance,
+				},
+				addrs.AbsResource{
+					Resource: addrs.Resource{
+						Mode: addrs.ManagedResourceMode,
+						Type: "test_instance",
+						Name: "c",
+					},
+					Module: addrs.RootModuleInstance,
+				},
+			},
+		},
+		addrs.ProviderConfig{
+			Type: "test",
+		}.Absolute(addrs.RootModuleInstance),
+	)
+	root.SetResourceInstanceCurrent(
+		addrs.Resource{
+			Mode: addrs.ManagedResourceMode,
+			Type: "test_instance",
+			Name: "b",
+		}.Instance(addrs.NoKey),
+		&states.ResourceInstanceObjectSrc{
+			Status:    states.ObjectReady,
+			AttrsJSON: []byte(`{"id":"b","require_new":"old","foo":"c"}`),
+			Dependencies: []addrs.AbsResource{
+				addrs.AbsResource{
+					Resource: addrs.Resource{
+						Mode: addrs.ManagedResourceMode,
+						Type: "test_instance",
+						Name: "c",
+					},
+					Module: addrs.RootModuleInstance,
+				},
+			},
+		},
+		addrs.ProviderConfig{
+			Type: "test",
+		}.Absolute(addrs.RootModuleInstance),
+	)
+	root.SetResourceInstanceCurrent(
+		addrs.Resource{
+			Mode: addrs.ManagedResourceMode,
+			Type: "test_instance",
+			Name: "c",
+		}.Instance(addrs.NoKey),
+		&states.ResourceInstanceObjectSrc{
+			Status:    states.ObjectReady,
+			AttrsJSON: []byte(`{"id":"c","require_new":"old"}`),
+		},
+		addrs.ProviderConfig{
+			Type: "test",
+		}.Absolute(addrs.RootModuleInstance),
+	)
+
+	providerResolver := providers.ResolverFixed(
+		map[string]providers.Factory{
+			"test": testProviderFuncFixed(p),
+		},
+	)
+
+	hook := &testHook{}
+	ctx := testContext2(t, &ContextOpts{
+		Config:           m,
+		ProviderResolver: providerResolver,
+		State:            state,
+		Hooks:            []Hook{hook},
+	})
+
+	plan, diags := ctx.Plan()
+	diags.HasErrors()
+	if diags.HasErrors() {
+		t.Fatalf("diags: %s", diags.Err())
+	}
+
+	// We'll marshal and unmarshal the plan here, to ensure that we have
+	// a clean new context as would be created if we separately ran
+	// terraform plan -out=tfplan && terraform apply tfplan
+	ctxOpts, err := contextOptsForPlanViaFile(snap, state, plan)
+	if err != nil {
+		t.Fatal(err)
+	}
+	ctxOpts.ProviderResolver = providerResolver
+	ctx, diags = NewContext(ctxOpts)
+	if diags.HasErrors() {
+		t.Fatalf("failed to create context for plan: %s", diags.Err())
+	}
+
+	_, diags = ctx.Apply()
+	if diags.HasErrors() {
+		t.Fatalf("diags: %s", diags.Err())
+	}
+}
diff --git a/terraform/testdata/apply-cbd-cycle/main.tf b/terraform/testdata/apply-cbd-cycle/main.tf
new file mode 100644
index 000000000..5ac53107e
--- /dev/null
+++ b/terraform/testdata/apply-cbd-cycle/main.tf
@@ -0,0 +1,19 @@
+resource "test_instance" "a" {
+  foo = test_instance.b.id
+  require_new = "changed"
+
+  lifecycle {
+    create_before_destroy = true
+  }
+}
+
+resource "test_instance" "b" {
+  foo = test_instance.c.id
+  require_new = "changed"
+}
+
+
+resource "test_instance" "c" {
+  require_new = "changed"
+}
+