diff --git a/pkg/ccl/backupccl/restore_job.go b/pkg/ccl/backupccl/restore_job.go
index afb33731b23c..e355e941b703 100644
--- a/pkg/ccl/backupccl/restore_job.go
+++ b/pkg/ccl/backupccl/restore_job.go
@@ -1153,8 +1153,18 @@ func createImportingDescriptors(
 					return err
 				}
 				for _, tenant := range details.Tenants {
-					// Mark the tenant info as adding.
-					tenant.State = descpb.TenantInfo_ADD
+					switch tenant.State {
+					case descpb.TenantInfo_ACTIVE:
+						// If the tenant was backed up in an `ACTIVE` state then we create
+						// the restored record in an `ADDING` state and mark it `ACTIVE` at
+						// the end of the restore.
+						tenant.State = descpb.TenantInfo_ADD
+					case descpb.TenantInfo_DROP, descpb.TenantInfo_ADD:
+					// If the tenant was backed up in a `DROP` or `ADD` state then we must
+					// create the restored tenant record in that state as well.
+					default:
+						return errors.AssertionFailedf("unknown tenant state %v", tenant)
+					}
 					if err := sql.CreateTenantRecord(ctx, p.ExecCfg(), txn, &tenant, initialTenantZoneConfig); err != nil {
 						return err
 					}
@@ -2042,8 +2052,20 @@ func (r *restoreResumer) publishDescriptors(
 	}
 
 	for _, tenant := range details.Tenants {
-		if err := sql.ActivateTenant(ctx, r.execCfg, txn, tenant.ID); err != nil {
-			return err
+		switch tenant.State {
+		case descpb.TenantInfo_ACTIVE:
+			// If the tenant was backed up in an `ACTIVE` state then we must activate
+			// the tenant as the final step of the restore. The tenant has already
+			// been created at an earlier stage in the restore in an `ADD` state.
+			tenant.State = descpb.TenantInfo_ADD
+			if err := sql.ActivateTenant(ctx, r.execCfg, txn, tenant.ID); err != nil {
+				return err
+			}
+		case descpb.TenantInfo_DROP, descpb.TenantInfo_ADD:
+		// If the tenant was backed up in a `DROP` or `ADD` state then we do not
+		// want to activate the tenant.
+		default:
+			return errors.AssertionFailedf("unknown tenant state %v", tenant)
 		}
 	}
 
diff --git a/pkg/ccl/backupccl/targets.go b/pkg/ccl/backupccl/targets.go
index ff2ec09d6d87..5a5450461be2 100644
--- a/pkg/ccl/backupccl/targets.go
+++ b/pkg/ccl/backupccl/targets.go
@@ -38,6 +38,7 @@ import (
 	"github.com/cockroachdb/cockroach/pkg/sql/sem/tree"
 	"github.com/cockroachdb/cockroach/pkg/util/hlc"
 	"github.com/cockroachdb/cockroach/pkg/util/timeutil"
+	"github.com/cockroachdb/cockroach/pkg/util/tracing"
 	"github.com/cockroachdb/errors"
 )
 
@@ -276,7 +277,7 @@ func fullClusterTargets(
 }
 
 func fullClusterTargetsRestore(
-	allDescs []catalog.Descriptor, lastBackupManifest backuppb.BackupManifest,
+	ctx context.Context, allDescs []catalog.Descriptor, lastBackupManifest backuppb.BackupManifest,
 ) (
 	[]catalog.Descriptor,
 	[]catalog.DatabaseDescriptor,
@@ -284,6 +285,10 @@ func fullClusterTargetsRestore(
 	[]descpb.TenantInfoWithUsage,
 	error,
 ) {
+	ctx, span := tracing.ChildSpan(ctx, "backupccl.fullClusterTargetsRestore")
+	_ = ctx // ctx is currently unused, but this new ctx should be used below in the future.
+	defer span.Finish()
+
 	fullClusterDescs, fullClusterDBs, err := fullClusterTargets(allDescs)
 	var filteredDescs []catalog.Descriptor
 	var filteredDBs []catalog.DatabaseDescriptor
@@ -354,10 +359,12 @@ func selectTargets(
 	[]descpb.TenantInfoWithUsage,
 	error,
 ) {
+	ctx, span := tracing.ChildSpan(ctx, "backupccl.selectTargets")
+	defer span.Finish()
 	allDescs, lastBackupManifest := backupinfo.LoadSQLDescsFromBackupsAtTime(backupManifests, asOf)
 
 	if descriptorCoverage == tree.AllDescriptors {
-		return fullClusterTargetsRestore(allDescs, lastBackupManifest)
+		return fullClusterTargetsRestore(ctx, allDescs, lastBackupManifest)
 	}
 
 	if descriptorCoverage == tree.SystemUsers {
diff --git a/pkg/ccl/backupccl/testdata/backup-restore/restore-tenants b/pkg/ccl/backupccl/testdata/backup-restore/restore-tenants
new file mode 100644
index 000000000000..f4c4c7a76684
--- /dev/null
+++ b/pkg/ccl/backupccl/testdata/backup-restore/restore-tenants
@@ -0,0 +1,60 @@
+new-server name=s1
+----
+
+# Create a few tenants.
+exec-sql
+SELECT crdb_internal.create_tenant(5);
+----
+
+exec-sql
+SELECT crdb_internal.create_tenant(6);
+----
+
+# Drop one of them.
+exec-sql
+SELECT crdb_internal.destroy_tenant(5);
+----
+
+query-sql
+SELECT id,active,crdb_internal.pb_to_json('cockroach.sql.sqlbase.TenantInfo', info, true) FROM system.tenants;
+----
+5 false {"id": "5", "state": "DROP"}
+6 true {"id": "6", "state": "ACTIVE"}
+
+exec-sql
+BACKUP INTO 'nodelocal://1/cluster'
+----
+
+exec-sql expect-error-regex=(tenant 5 is not active)
+BACKUP TENANT 5 INTO 'nodelocal://1/tenant5'
+----
+regex matches error
+
+exec-sql
+BACKUP TENANT 6 INTO 'nodelocal://1/tenant6'
+----
+
+new-server name=s2 share-io-dir=s1
+----
+
+exec-sql
+RESTORE FROM LATEST IN 'nodelocal://1/cluster'
+----
+
+# A dropped tenant should be restored as an inactive tenant.
+query-sql
+SELECT id,active,crdb_internal.pb_to_json('cockroach.sql.sqlbase.TenantInfo', info, true) FROM system.tenants;
+----
+5 false {"id": "5", "state": "DROP"}
+6 true {"id": "6", "state": "ACTIVE"}
+
+exec-sql
+RESTORE TENANT 6 FROM LATEST IN 'nodelocal://1/tenant6' WITH tenant = '7';
+----
+
+query-sql
+SELECT id,active,crdb_internal.pb_to_json('cockroach.sql.sqlbase.TenantInfo', info, true) FROM system.tenants;
+----
+5 false {"id": "5", "state": "DROP"}
+6 true {"id": "6", "state": "ACTIVE"}
+7 true {"id": "7", "state": "ACTIVE"}