diff --git a/command/apply.go b/command/apply.go
index 52caa3307..cd6f7af9f 100644
--- a/command/apply.go
+++ b/command/apply.go
@@ -19,9 +19,11 @@ type ApplyCommand struct {
 }
 
 func (c *ApplyCommand) Run(args []string) int {
+	var init bool
 	var statePath, stateOutPath string
 
 	cmdFlags := flag.NewFlagSet("apply", flag.ContinueOnError)
+	cmdFlags.BoolVar(&init, "init", false, "init")
 	cmdFlags.StringVar(&statePath, "state", "terraform.tfstate", "path")
 	cmdFlags.StringVar(&stateOutPath, "state-out", "", "path")
 	cmdFlags.Usage = func() { c.Ui.Error(c.Help()) }
@@ -48,6 +50,23 @@ func (c *ApplyCommand) Run(args []string) int {
 		stateOutPath = statePath
 	}
 
+	// Load up the state
+	var state *terraform.State
+	if !init {
+		f, err := os.Open(statePath)
+		if err != nil {
+			c.Ui.Error(fmt.Sprintf("Error loading state: %s", err))
+			return 1
+		}
+
+		state, err = terraform.ReadState(f)
+		f.Close()
+		if err != nil {
+			c.Ui.Error(fmt.Sprintf("Error loading state: %s", err))
+			return 1
+		}
+	}
+
 	b, err := config.Load(args[0])
 	if err != nil {
 		c.Ui.Error(fmt.Sprintf("Error loading blueprint: %s", err))
@@ -63,13 +82,13 @@ func (c *ApplyCommand) Run(args []string) int {
 		return 1
 	}
 
-	diff, err := tf.Diff(nil)
+	diff, err := tf.Diff(state)
 	if err != nil {
 		c.Ui.Error(fmt.Sprintf("Error running diff: %s", err))
 		return 1
 	}
 
-	state, err := tf.Apply(nil, diff)
+	state, err = tf.Apply(state, diff)
 	if err != nil {
 		c.Ui.Error(fmt.Sprintf("Error applying diff: %s", err))
 		return 1
diff --git a/command/apply_test.go b/command/apply_test.go
index 5f405423c..2ef558589 100644
--- a/command/apply_test.go
+++ b/command/apply_test.go
@@ -3,6 +3,7 @@ package command
 import (
 	"io/ioutil"
 	"os"
+	"reflect"
 	"testing"
 
 	"github.com/hashicorp/terraform/terraform"
@@ -26,6 +27,7 @@ func TestApply(t *testing.T) {
 	}
 
 	args := []string{
+		"-init",
 		"-state", statePath,
 		testFixturePath("apply"),
 	}
@@ -69,6 +71,72 @@ func TestApply_noState(t *testing.T) {
 	}
 }
 
+func TestApply_state(t *testing.T) {
+	// Write out some prior state
+	tf, err := ioutil.TempFile("", "tf")
+	if err != nil {
+		t.Fatalf("err: %s", err)
+	}
+	statePath := tf.Name()
+	defer os.Remove(tf.Name())
+
+	originalState := &terraform.State{
+		Resources: map[string]*terraform.ResourceState{
+			"test_instance.foo": &terraform.ResourceState{
+				ID:   "bar",
+				Type: "test_instance",
+			},
+		},
+	}
+
+	err = terraform.WriteState(originalState, tf)
+	tf.Close()
+	if err != nil {
+		t.Fatalf("err: %s", err)
+	}
+
+	p := testProvider()
+	ui := new(cli.MockUi)
+	c := &ApplyCommand{
+		TFConfig: testTFConfig(p),
+		Ui:       ui,
+	}
+
+	// Run the apply command pointing to our existing state
+	args := []string{
+		"-state", statePath,
+		testFixturePath("apply"),
+	}
+	if code := c.Run(args); code != 0 {
+		t.Fatalf("bad: %d\n\n%s", code, ui.ErrorWriter.String())
+	}
+
+	// Verify that the provider was called with the existing state
+	expectedState := originalState.Resources["test_instance.foo"]
+	if !reflect.DeepEqual(p.ApplyState, expectedState) {
+		t.Fatalf("bad: %#v", p.ApplyState)
+	}
+
+	// Verify a new state exists
+	if _, err := os.Stat(statePath); err != nil {
+		t.Fatalf("err: %s", err)
+	}
+
+	f, err := os.Open(statePath)
+	if err != nil {
+		t.Fatalf("err: %s", err)
+	}
+	defer f.Close()
+
+	state, err := terraform.ReadState(f)
+	if err != nil {
+		t.Fatalf("err: %s", err)
+	}
+	if state == nil {
+		t.Fatal("state should not be nil")
+	}
+}
+
 func TestApply_stateNoExist(t *testing.T) {
 	p := testProvider()
 	ui := new(cli.MockUi)