diff --git a/terraform/context_test.go b/terraform/context_test.go
index d4597f11f..a85e77db6 100644
--- a/terraform/context_test.go
+++ b/terraform/context_test.go
@@ -4128,6 +4128,48 @@ func TestContext2Apply_nilDiff(t *testing.T) {
 	}
 }
 
+func TestContext2Apply_outputOrphan(t *testing.T) {
+	m := testModule(t, "apply-output-orphan")
+	p := testProvider("aws")
+	p.ApplyFn = testApplyFn
+	p.DiffFn = testDiffFn
+
+	state := &State{
+		Modules: []*ModuleState{
+			&ModuleState{
+				Path: rootModulePath,
+				Outputs: map[string]string{
+					"foo": "bar",
+					"bar": "baz",
+				},
+			},
+		},
+	}
+
+	ctx := testContext2(t, &ContextOpts{
+		Module: m,
+		Providers: map[string]ResourceProviderFactory{
+			"aws": testProviderFuncFixed(p),
+		},
+		State: state,
+	})
+
+	if _, err := ctx.Plan(); err != nil {
+		t.Fatalf("err: %s", err)
+	}
+
+	state, err := ctx.Apply()
+	if err != nil {
+		t.Fatalf("err: %s", err)
+	}
+
+	actual := strings.TrimSpace(state.String())
+	expected := strings.TrimSpace(testTerraformApplyOutputOrphanStr)
+	if actual != expected {
+		t.Fatalf("bad: \n%s", actual)
+	}
+}
+
 func TestContext2Apply_Provisioner_compute(t *testing.T) {
 	m := testModule(t, "apply-provisioner-compute")
 	p := testProvider("aws")
diff --git a/terraform/eval_output.go b/terraform/eval_output.go
index 0d9056d70..acdc268c3 100644
--- a/terraform/eval_output.go
+++ b/terraform/eval_output.go
@@ -6,6 +6,34 @@ import (
 	"github.com/hashicorp/terraform/config"
 )
 
+// EvalDeleteOutput is an EvalNode implementation that deletes an output
+// from the state.
+type EvalDeleteOutput struct {
+	Name string
+}
+
+// TODO: test
+func (n *EvalDeleteOutput) Eval(ctx EvalContext) (interface{}, error) {
+	state, lock := ctx.State()
+	if state == nil {
+		return nil, nil
+	}
+
+	// Get a write lock so we can access this instance
+	lock.Lock()
+	defer lock.Unlock()
+
+	// Look for the module state. If we don't have one, create it.
+	mod := state.ModuleByPath(ctx.Path())
+	if mod == nil {
+		return nil, nil
+	}
+
+	delete(mod.Outputs, n.Name)
+
+	return nil, nil
+}
+
 // EvalWriteOutput is an EvalNode implementation that writes the output
 // for the given name to the current state.
 type EvalWriteOutput struct {
diff --git a/terraform/graph_builder.go b/terraform/graph_builder.go
index f08e20f16..425d2ef13 100644
--- a/terraform/graph_builder.go
+++ b/terraform/graph_builder.go
@@ -95,6 +95,9 @@ func (b *BuiltinGraphBuilder) Steps() []GraphTransformer {
 			Targeting: (len(b.Targets) > 0),
 		},
 
+		// Output-related transformations
+		&AddOutputOrphanTransformer{State: b.State},
+
 		// Provider-related transformations
 		&MissingProviderTransformer{Providers: b.Providers},
 		&ProviderTransformer{},
diff --git a/terraform/terraform_test.go b/terraform/terraform_test.go
index 38be7b9fd..09c330792 100644
--- a/terraform/terraform_test.go
+++ b/terraform/terraform_test.go
@@ -373,6 +373,13 @@ do_instance.foo:
   type = do_instance
 `
 
+const testTerraformApplyOutputOrphanStr = `
+<no state>
+Outputs:
+
+foo = bar
+`
+
 const testTerraformApplyProvisionerStr = `
 aws_instance.bar:
   ID = foo
diff --git a/terraform/test-fixtures/apply-output-orphan/main.tf b/terraform/test-fixtures/apply-output-orphan/main.tf
new file mode 100644
index 000000000..70619c4e3
--- /dev/null
+++ b/terraform/test-fixtures/apply-output-orphan/main.tf
@@ -0,0 +1 @@
+output "foo" { value = "bar" }
diff --git a/terraform/transform_output.go b/terraform/transform_output.go
index 62e127d38..7741f9d3d 100644
--- a/terraform/transform_output.go
+++ b/terraform/transform_output.go
@@ -57,3 +57,12 @@ type graphNodeOrphanOutput struct {
 func (n *graphNodeOrphanOutput) Name() string {
 	return fmt.Sprintf("output.%s (orphan)", n.OutputName)
 }
+
+func (n *graphNodeOrphanOutput) EvalTree() EvalNode {
+	return &EvalOpFilter{
+		Ops: []walkOperation{walkApply, walkRefresh},
+		Node: &EvalDeleteOutput{
+			Name: n.OutputName,
+		},
+	}
+}