diff --git a/internal/refactoring/move_statement.go b/internal/refactoring/move_statement.go
index a363602c3..08fffeb6f 100644
--- a/internal/refactoring/move_statement.go
+++ b/internal/refactoring/move_statement.go
@@ -149,7 +149,7 @@ func impliedMoveStatements(cfg *configs.Config, prevRunState *states.State, expl
 	}
 
 	for _, childCfg := range cfg.Children {
-		into = findMoveStatements(childCfg, into)
+		into = impliedMoveStatements(childCfg, prevRunState, explicitStmts, into)
 	}
 
 	return into
diff --git a/internal/refactoring/move_statement_test.go b/internal/refactoring/move_statement_test.go
index c6f7c2d79..249d7df7e 100644
--- a/internal/refactoring/move_statement_test.go
+++ b/internal/refactoring/move_statement_test.go
@@ -18,6 +18,15 @@ func TestImpliedMoveStatements(t *testing.T) {
 			Name: name,
 		}.Absolute(addrs.RootModuleInstance)
 	}
+
+	nestedResourceAddr := func(mod, name string) addrs.AbsResource {
+		return addrs.Resource{
+			Mode: addrs.ManagedResourceMode,
+			Type: "foo",
+			Name: name,
+		}.Absolute(addrs.RootModuleInstance.Child(mod, addrs.NoKey))
+	}
+
 	instObjState := func() *states.ResourceInstanceObjectSrc {
 		return &states.ResourceInstanceObjectSrc{}
 	}
@@ -86,6 +95,19 @@ func TestImpliedMoveStatements(t *testing.T) {
 			instObjState(),
 			providerAddr,
 		)
+
+		// Add two resource nested in a module to ensure we find these
+		// recursively.
+		s.SetResourceInstanceCurrent(
+			nestedResourceAddr("child", "formerly_count").Instance(addrs.IntKey(0)),
+			instObjState(),
+			providerAddr,
+		)
+		s.SetResourceInstanceCurrent(
+			nestedResourceAddr("child", "now_count").Instance(addrs.NoKey),
+			instObjState(),
+			providerAddr,
+		)
 	})
 
 	explicitStmts := FindMoveStatements(rootCfg)
@@ -101,6 +123,19 @@ func TestImpliedMoveStatements(t *testing.T) {
 				End:      tfdiags.SourcePos{Line: 5, Column: 32, Byte: 211},
 			},
 		},
+
+		// Found implied moves in a nested module, ignoring the explicit moves
+		{
+			From:    addrs.ImpliedMoveStatementEndpoint(nestedResourceAddr("child", "formerly_count").Instance(addrs.IntKey(0)), tfdiags.SourceRange{}),
+			To:      addrs.ImpliedMoveStatementEndpoint(nestedResourceAddr("child", "formerly_count").Instance(addrs.NoKey), tfdiags.SourceRange{}),
+			Implied: true,
+			DeclRange: tfdiags.SourceRange{
+				Filename: "testdata/move-statement-implied/child/move-statement-implied.tf",
+				Start:    tfdiags.SourcePos{Line: 5, Column: 1, Byte: 180},
+				End:      tfdiags.SourcePos{Line: 5, Column: 32, Byte: 211},
+			},
+		},
+
 		{
 			From:    addrs.ImpliedMoveStatementEndpoint(resourceAddr("now_count").Instance(addrs.NoKey), tfdiags.SourceRange{}),
 			To:      addrs.ImpliedMoveStatementEndpoint(resourceAddr("now_count").Instance(addrs.IntKey(0)), tfdiags.SourceRange{}),
@@ -112,6 +147,18 @@ func TestImpliedMoveStatements(t *testing.T) {
 			},
 		},
 
+		// Found implied moves in a nested module, ignoring the explicit moves
+		{
+			From:    addrs.ImpliedMoveStatementEndpoint(nestedResourceAddr("child", "now_count").Instance(addrs.NoKey), tfdiags.SourceRange{}),
+			To:      addrs.ImpliedMoveStatementEndpoint(nestedResourceAddr("child", "now_count").Instance(addrs.IntKey(0)), tfdiags.SourceRange{}),
+			Implied: true,
+			DeclRange: tfdiags.SourceRange{
+				Filename: "testdata/move-statement-implied/child/move-statement-implied.tf",
+				Start:    tfdiags.SourcePos{Line: 10, Column: 11, Byte: 282},
+				End:      tfdiags.SourcePos{Line: 10, Column: 12, Byte: 283},
+			},
+		},
+
 		// We generate foo.ambiguous[0] to foo.ambiguous here, even though
 		// there's already a foo.ambiguous in the state, because it's the
 		// responsibility of the later ApplyMoves step to deal with the
diff --git a/internal/refactoring/testdata/move-statement-implied/child/move-statement-implied.tf b/internal/refactoring/testdata/move-statement-implied/child/move-statement-implied.tf
new file mode 100644
index 000000000..87d09c827
--- /dev/null
+++ b/internal/refactoring/testdata/move-statement-implied/child/move-statement-implied.tf
@@ -0,0 +1,16 @@
+# This fixture is useful only in conjunction with a previous run state that
+# conforms to the statements encoded in the resource names. It's for
+# TestImpliedMoveStatements only.
+
+resource "foo" "formerly_count" {
+  # but not count anymore
+}
+
+resource "foo" "now_count" {
+  count = 1
+}
+
+moved {
+  from = foo.no_longer_present[1]
+  to   = foo.no_longer_present
+}
diff --git a/internal/refactoring/testdata/move-statement-implied/move-statement-implied.tf b/internal/refactoring/testdata/move-statement-implied/move-statement-implied.tf
index 498ead305..4ea628ea6 100644
--- a/internal/refactoring/testdata/move-statement-implied/move-statement-implied.tf
+++ b/internal/refactoring/testdata/move-statement-implied/move-statement-implied.tf
@@ -48,3 +48,7 @@ resource "foo" "ambiguous" {
   # set it up to have both no-key and zero-key instances in the
   # state.
 }
+
+module "child" {
+  source = "./child"
+}