diff --git a/backend/local/backend_apply_test.go b/backend/local/backend_apply_test.go
index e7e7a53a9503..f8de90479c3c 100644
--- a/backend/local/backend_apply_test.go
+++ b/backend/local/backend_apply_test.go
@@ -123,8 +123,7 @@ func TestLocal_applyError(t *testing.T) {
 	b, cleanup := TestLocal(t)
 	defer cleanup()
 
-	p := TestLocalProvider(t, b, "test", nil)
-	p.GetSchemaReturn = &terraform.ProviderSchema{
+	schema := &terraform.ProviderSchema{
 		ResourceTypes: map[string]*configschema.Block{
 			"test_instance": {
 				Attributes: map[string]*configschema.Attribute{
@@ -134,6 +133,7 @@ func TestLocal_applyError(t *testing.T) {
 			},
 		},
 	}
+	p := TestLocalProvider(t, b, "test", schema)
 
 	var lock sync.Mutex
 	errored := false
diff --git a/backend/local/testing.go b/backend/local/testing.go
index 05f7600f9ae7..dccddb5daeed 100644
--- a/backend/local/testing.go
+++ b/backend/local/testing.go
@@ -6,7 +6,11 @@ import (
 	"path/filepath"
 	"testing"
 
+	"github.com/zclconf/go-cty/cty"
+
+	"github.com/hashicorp/terraform/addrs"
 	"github.com/hashicorp/terraform/backend"
+	"github.com/hashicorp/terraform/configs/configschema"
 	"github.com/hashicorp/terraform/providers"
 	"github.com/hashicorp/terraform/states"
 	"github.com/hashicorp/terraform/states/statemgr"
@@ -38,9 +42,14 @@ func TestLocal(t *testing.T) (*Local, func()) {
 			// function, t.Helper doesn't apply and so the log source
 			// isn't correctly shown in the test log output. This seems
 			// unavoidable as long as this is happening so indirectly.
-			t.Log(diag.Description().Summary)
+			desc := diag.Description()
+			if desc.Detail != "" {
+				t.Logf("%s: %s", desc.Summary, desc.Detail)
+			} else {
+				t.Log(desc.Summary)
+			}
 			if local.CLI != nil {
-				local.CLI.Error(diag.Description().Summary)
+				local.CLI.Error(desc.Summary)
 			}
 		}
 	}
@@ -59,10 +68,34 @@ func TestLocal(t *testing.T) (*Local, func()) {
 func TestLocalProvider(t *testing.T, b *Local, name string, schema *terraform.ProviderSchema) *terraform.MockProvider {
 	// Build a mock resource provider for in-memory operations
 	p := new(terraform.MockProvider)
+
+	if schema == nil {
+		schema = &terraform.ProviderSchema{} // default schema is empty
+	}
 	p.GetSchemaReturn = schema
+
 	p.PlanResourceChangeFn = func(req providers.PlanResourceChangeRequest) providers.PlanResourceChangeResponse {
+		rSchema, _ := schema.SchemaForResourceType(addrs.ManagedResourceMode, req.TypeName)
+		if rSchema == nil {
+			rSchema = &configschema.Block{} // default schema is empty
+		}
+		plannedVals := map[string]cty.Value{}
+		for name, attrS := range rSchema.Attributes {
+			val := req.ProposedNewState.GetAttr(name)
+			if attrS.Computed && val.IsNull() {
+				val = cty.UnknownVal(attrS.Type)
+			}
+			plannedVals[name] = val
+		}
+		for name := range rSchema.BlockTypes {
+			// For simplicity's sake we just copy the block attributes over
+			// verbatim, since this package's mock providers are all relatively
+			// simple -- we're testing the backend, not esoteric provider features.
+			plannedVals[name] = req.ProposedNewState.GetAttr(name)
+		}
+
 		return providers.PlanResourceChangeResponse{
-			PlannedState:   req.ProposedNewState,
+			PlannedState:   cty.ObjectVal(plannedVals),
 			PlannedPrivate: req.PriorPrivate,
 		}
 	}
diff --git a/builtin/providers/test/resource_list_test.go b/builtin/providers/test/resource_list_test.go
index 76c82f15a80d..e39b575219cc 100644
--- a/builtin/providers/test/resource_list_test.go
+++ b/builtin/providers/test/resource_list_test.go
@@ -133,3 +133,58 @@ resource "test_resource_list" "foo" {
 		},
 	})
 }
+
+func TestResourceList_interpolationChanges(t *testing.T) {
+	resource.UnitTest(t, resource.TestCase{
+		Providers:    testAccProviders,
+		CheckDestroy: testAccCheckResourceDestroy,
+		Steps: []resource.TestStep{
+			resource.TestStep{
+				Config: strings.TrimSpace(`
+resource "test_resource_list" "foo" {
+	list_block {
+		string = "x"
+	}
+}
+resource "test_resource_list" "bar" {
+	list_block {
+		string = test_resource_list.foo.id
+	}
+}
+				`),
+				Check: resource.ComposeTestCheckFunc(
+					resource.TestCheckResourceAttr(
+						"test_resource_list.foo", "list_block.0.string", "x",
+					),
+					resource.TestCheckResourceAttr(
+						"test_resource_list.bar", "list_block.0.string", "testId",
+					),
+				),
+			},
+			resource.TestStep{
+				Config: strings.TrimSpace(`
+resource "test_resource_list" "baz" {
+	list_block {
+		string = "x"
+		int = 1
+	}
+}
+resource "test_resource_list" "bar" {
+	list_block {
+		string = test_resource_list.baz.id
+		int = 3
+	}
+}
+				`),
+				Check: resource.ComposeTestCheckFunc(
+					resource.TestCheckResourceAttr(
+						"test_resource_list.baz", "list_block.0.string", "x",
+					),
+					resource.TestCheckResourceAttr(
+						"test_resource_list.bar", "list_block.0.string", "testId",
+					),
+				),
+			},
+		},
+	})
+}
diff --git a/builtin/providers/test/resource_nested_set_test.go b/builtin/providers/test/resource_nested_set_test.go
index e47f1ac5883e..e782bb7fb5e1 100644
--- a/builtin/providers/test/resource_nested_set_test.go
+++ b/builtin/providers/test/resource_nested_set_test.go
@@ -527,3 +527,56 @@ resource "test_resource_nested_set" "c" {
 		},
 	})
 }
+
+func TestResourceNestedSet_interpolationChanges(t *testing.T) {
+	resource.UnitTest(t, resource.TestCase{
+		Providers:    testAccProviders,
+		CheckDestroy: testAccCheckResourceDestroy,
+		Steps: []resource.TestStep{
+			resource.TestStep{
+				Config: strings.TrimSpace(`
+resource "test_resource_nested_set" "foo" {
+	single {
+		value = "x"
+	}
+}
+resource "test_resource_nested_set" "bar" {
+	single {
+		value = test_resource_nested_set.foo.id
+	}
+}
+				`),
+				Check: resource.ComposeTestCheckFunc(
+					resource.TestCheckResourceAttr(
+						"test_resource_nested_set.foo", "single.#", "1",
+					),
+					resource.TestCheckResourceAttr(
+						"test_resource_nested_set.bar", "single.#", "1",
+					),
+				),
+			},
+			resource.TestStep{
+				Config: strings.TrimSpace(`
+resource "test_resource_nested_set" "baz" {
+	single {
+		value = "x"
+	}
+}
+resource "test_resource_nested_set" "bar" {
+	single {
+		value = test_resource_nested_set.baz.id
+	}
+}
+				`),
+				Check: resource.ComposeTestCheckFunc(
+					resource.TestCheckResourceAttr(
+						"test_resource_nested_set.baz", "single.#", "1",
+					),
+					resource.TestCheckResourceAttr(
+						"test_resource_nested_set.bar", "single.#", "1",
+					),
+				),
+			},
+		},
+	})
+}
diff --git a/command/show_test.go b/command/show_test.go
index 746ea1706151..5febe857818b 100644
--- a/command/show_test.go
+++ b/command/show_test.go
@@ -244,13 +244,29 @@ func showFixtureProvider() *terraform.MockProvider {
 	p := testProvider()
 	p.GetSchemaReturn = showFixtureSchema()
 	p.PlanResourceChangeFn = func(req providers.PlanResourceChangeRequest) providers.PlanResourceChangeResponse {
+		idVal := req.ProposedNewState.GetAttr("id")
+		amiVal := req.ProposedNewState.GetAttr("ami")
+		if idVal.IsNull() {
+			idVal = cty.UnknownVal(cty.String)
+		}
 		return providers.PlanResourceChangeResponse{
-			PlannedState: req.ProposedNewState,
+			PlannedState: cty.ObjectVal(map[string]cty.Value{
+				"id":  idVal,
+				"ami": amiVal,
+			}),
 		}
 	}
 	p.ApplyResourceChangeFn = func(req providers.ApplyResourceChangeRequest) providers.ApplyResourceChangeResponse {
+		idVal := req.PlannedState.GetAttr("id")
+		amiVal := req.PlannedState.GetAttr("ami")
+		if !idVal.IsKnown() {
+			idVal = cty.StringVal("placeholder")
+		}
 		return providers.ApplyResourceChangeResponse{
-			NewState: cty.UnknownAsNull(req.PlannedState),
+			NewState: cty.ObjectVal(map[string]cty.Value{
+				"id":  idVal,
+				"ami": amiVal,
+			}),
 		}
 	}
 	return p
diff --git a/command/test-fixtures/show-json/basic-delete/output.json b/command/test-fixtures/show-json/basic-delete/output.json
index 297ded0e7702..837ed5d010e3 100644
--- a/command/test-fixtures/show-json/basic-delete/output.json
+++ b/command/test-fixtures/show-json/basic-delete/output.json
@@ -18,7 +18,7 @@
                     "schema_version": 0,
                     "values": {
                         "ami": "bar",
-                        "id": null
+                        "id": "placeholder"
                     }
                 }
             ]
@@ -37,11 +37,11 @@
                 ],
                 "before": {
                     "ami": "foo",
-                    "id": null
+                    "id": "placeholder"
                 },
                 "after": {
                     "ami": "bar",
-                    "id": null
+                    "id": "placeholder"
                 },
                 "after_unknown": {
                     "ami": false,
@@ -61,7 +61,7 @@
                 ],
                 "before": {
                     "ami": "foo",
-                    "id": null
+                    "id": "placeholder"
                 },
                 "after": null,
                 "after_unknown": false
diff --git a/command/test-fixtures/show-json/basic-delete/terraform.tfstate b/command/test-fixtures/show-json/basic-delete/terraform.tfstate
index 4cf6ed7fb932..db49d3e6846f 100644
--- a/command/test-fixtures/show-json/basic-delete/terraform.tfstate
+++ b/command/test-fixtures/show-json/basic-delete/terraform.tfstate
@@ -14,7 +14,8 @@
         {
           "schema_version": 0,
           "attributes": {
-            "ami": "foo"
+            "ami": "foo",
+            "id": "placeholder"
           }
         }
       ]
@@ -28,7 +29,8 @@
         {
           "schema_version": 0,
           "attributes": {
-            "ami": "foo"
+            "ami": "foo",
+            "id": "placeholder"
           }
         }
       ]
diff --git a/command/test-fixtures/show-json/basic-update/output.json b/command/test-fixtures/show-json/basic-update/output.json
index d065edaf0168..4f5f115fb9df 100644
--- a/command/test-fixtures/show-json/basic-update/output.json
+++ b/command/test-fixtures/show-json/basic-update/output.json
@@ -18,7 +18,7 @@
                     "schema_version": 0,
                     "values": {
                         "ami": "bar",
-                        "id": null
+                        "id": "placeholder"
                     }
                 }
             ]
@@ -37,11 +37,11 @@
                 ],
                 "before": {
                     "ami": "bar",
-                    "id": null
+                    "id": "placeholder"
                 },
                 "after": {
                     "ami": "bar",
-                    "id": null
+                    "id": "placeholder"
                 },
                 "after_unknown": {
                     "ami": false,
diff --git a/command/test-fixtures/show-json/basic-update/terraform.tfstate b/command/test-fixtures/show-json/basic-update/terraform.tfstate
index f980cdfd5909..dfc796a88408 100644
--- a/command/test-fixtures/show-json/basic-update/terraform.tfstate
+++ b/command/test-fixtures/show-json/basic-update/terraform.tfstate
@@ -14,7 +14,8 @@
                 {
                     "schema_version": 0,
                     "attributes": {
-                        "ami": "bar"
+                        "ami": "bar",
+                        "id": "placeholder"
                     }
                 }
             ]
diff --git a/configs/configschema/coerce_value.go b/configs/configschema/coerce_value.go
index bae5733df711..877e860f3f44 100644
--- a/configs/configschema/coerce_value.go
+++ b/configs/configschema/coerce_value.go
@@ -225,7 +225,29 @@ func (b *Block) coerceValue(in cty.Value, path cty.Path) (cty.Value, error) {
 						elems[key.AsString()] = val
 					}
 				}
-				attrs[typeName] = cty.MapVal(elems)
+
+				// If the attribute values here contain any DynamicPseudoTypes,
+				// the concrete type must be an object.
+				useObject := false
+				switch {
+				case coll.Type().IsObjectType():
+					useObject = true
+				default:
+					// It's possible that we were given a map, and need to coerce it to an object
+					ety := coll.Type().ElementType()
+					for _, v := range elems {
+						if !v.Type().Equals(ety) {
+							useObject = true
+							break
+						}
+					}
+				}
+
+				if useObject {
+					attrs[typeName] = cty.ObjectVal(elems)
+				} else {
+					attrs[typeName] = cty.MapVal(elems)
+				}
 			default:
 				attrs[typeName] = cty.MapValEmpty(blockS.ImpliedType())
 			}
diff --git a/configs/configschema/coerce_value_test.go b/configs/configschema/coerce_value_test.go
index b7cc5f632df5..3286751a3527 100644
--- a/configs/configschema/coerce_value_test.go
+++ b/configs/configschema/coerce_value_test.go
@@ -436,6 +436,101 @@ func TestCoerceValue(t *testing.T) {
 			}),
 			``,
 		},
+		"dynamic value attributes": {
+			&Block{
+				BlockTypes: map[string]*NestedBlock{
+					"foo": {
+						Nesting: NestingMap,
+						Block: Block{
+							Attributes: map[string]*Attribute{
+								"bar": {
+									Type:     cty.String,
+									Optional: true,
+									Computed: true,
+								},
+								"baz": {
+									Type:     cty.DynamicPseudoType,
+									Optional: true,
+									Computed: true,
+								},
+							},
+						},
+					},
+				},
+			},
+			cty.ObjectVal(map[string]cty.Value{
+				"foo": cty.ObjectVal(map[string]cty.Value{
+					"a": cty.ObjectVal(map[string]cty.Value{
+						"bar": cty.StringVal("beep"),
+					}),
+					"b": cty.ObjectVal(map[string]cty.Value{
+						"bar": cty.StringVal("boop"),
+						"baz": cty.NumberIntVal(8),
+					}),
+				}),
+			}),
+			cty.ObjectVal(map[string]cty.Value{
+				"foo": cty.ObjectVal(map[string]cty.Value{
+					"a": cty.ObjectVal(map[string]cty.Value{
+						"bar": cty.StringVal("beep"),
+						"baz": cty.NullVal(cty.DynamicPseudoType),
+					}),
+					"b": cty.ObjectVal(map[string]cty.Value{
+						"bar": cty.StringVal("boop"),
+						"baz": cty.NumberIntVal(8),
+					}),
+				}),
+			}),
+			``,
+		},
+		"dynamic attributes in map": {
+			// Convert a block represented as a map to an object if a
+			// DynamicPseudoType causes the element types to mismatch.
+			&Block{
+				BlockTypes: map[string]*NestedBlock{
+					"foo": {
+						Nesting: NestingMap,
+						Block: Block{
+							Attributes: map[string]*Attribute{
+								"bar": {
+									Type:     cty.String,
+									Optional: true,
+									Computed: true,
+								},
+								"baz": {
+									Type:     cty.DynamicPseudoType,
+									Optional: true,
+									Computed: true,
+								},
+							},
+						},
+					},
+				},
+			},
+			cty.ObjectVal(map[string]cty.Value{
+				"foo": cty.MapVal(map[string]cty.Value{
+					"a": cty.ObjectVal(map[string]cty.Value{
+						"bar": cty.StringVal("beep"),
+					}),
+					"b": cty.ObjectVal(map[string]cty.Value{
+						"bar": cty.StringVal("boop"),
+					}),
+				}),
+			}),
+			cty.ObjectVal(map[string]cty.Value{
+				"foo": cty.ObjectVal(map[string]cty.Value{
+					"a": cty.ObjectVal(map[string]cty.Value{
+						"bar": cty.StringVal("beep"),
+						"baz": cty.NullVal(cty.DynamicPseudoType),
+					}),
+					"b": cty.ObjectVal(map[string]cty.Value{
+						"bar": cty.StringVal("boop"),
+						"baz": cty.NullVal(cty.DynamicPseudoType),
+					}),
+				}),
+			}),
+			``,
+		},
 	}
 
 	for name, test := range tests {
diff --git a/helper/plugin/grpc_provider.go b/helper/plugin/grpc_provider.go
index 8291445c83b8..709441b475f4 100644
--- a/helper/plugin/grpc_provider.go
+++ b/helper/plugin/grpc_provider.go
@@ -511,23 +511,30 @@ func (s *GRPCProviderServer) PlanResourceChange(_ context.Context, req *proto.Pl
 
 	// turn the proposed state into a legacy configuration
 	cfg := terraform.NewResourceConfigShimmed(proposedNewStateVal, block)
+
 	diff, err := s.provider.SimpleDiff(info, priorState, cfg)
 	if err != nil {
 		resp.Diagnostics = convert.AppendProtoDiag(resp.Diagnostics, err)
 		return resp, nil
 	}
 
+	// if this is a new instance, we need to make sure ID is going to be computed
+	if priorStateVal.IsNull() {
+		if diff == nil {
+			diff = terraform.NewInstanceDiff()
+		}
+
+		diff.Attributes["id"] = &terraform.ResourceAttrDiff{
+			NewComputed: true,
+		}
+	}
+
 	if diff == nil || len(diff.Attributes) == 0 {
 		// schema.Provider.Diff returns nil if it ends up making a diff with no
 		// changes, but our new interface wants us to return an actual change
-		// description that _shows_ there are no changes. This is usually the
-		// PriorSate, however if there was no prior state and no diff, then we
-		// use the ProposedNewState.
-		if !priorStateVal.IsNull() {
-			resp.PlannedState = req.PriorState
-		} else {
-			resp.PlannedState = req.ProposedNewState
-		}
+		// description that _shows_ there are no changes. This is always the
+		// prior state, because we force a diff above if this is a new instance.
+		resp.PlannedState = req.PriorState
 		return resp, nil
 	}
 
@@ -561,7 +568,7 @@ func (s *GRPCProviderServer) PlanResourceChange(_ context.Context, req *proto.Pl
 
 	plannedStateVal = copyTimeoutValues(plannedStateVal, proposedNewStateVal)
 
-	// The old SDK code has some inprecisions that cause it to sometimes
+	// The old SDK code has some imprecisions that cause it to sometimes
 	// generate differences that the SDK itself does not consider significant
 	// but Terraform Core would. To avoid producing weird do-nothing diffs
 	// in that case, we'll check if the provider as produced something we
@@ -575,6 +582,12 @@ func (s *GRPCProviderServer) PlanResourceChange(_ context.Context, req *proto.Pl
 		forceNoChanges = true
 	}
 
+	// if this was creating the resource, we need to set any remaining computed
+	// fields
+	if priorStateVal.IsNull() {
+		plannedStateVal = SetUnknowns(plannedStateVal, block)
+	}
+
 	plannedMP, err := msgpack.Marshal(plannedStateVal, block.ImpliedType())
 	if err != nil {
 		resp.Diagnostics = convert.AppendProtoDiag(resp.Diagnostics, err)
diff --git a/helper/plugin/unknown.go b/helper/plugin/unknown.go
new file mode 100644
index 000000000000..48e24e5d621c
--- /dev/null
+++ b/helper/plugin/unknown.go
@@ -0,0 +1,131 @@
+package plugin
+
+import (
+	"fmt"
+
+	"github.com/hashicorp/terraform/configs/configschema"
+	"github.com/zclconf/go-cty/cty"
+)
+
+// SetUnknowns takes a cty.Value, and compares it to the schema setting any null
+// values which are computed to unknown.
+func SetUnknowns(val cty.Value, schema *configschema.Block) cty.Value {
+	if !val.IsKnown() {
+		return val
+	}
+
+	// If the object was null, we still need to handle the top level attributes
+	// which might be computed, but we don't need to expand the blocks.
+	if val.IsNull() {
+		objMap := map[string]cty.Value{}
+		allNull := true
+		for name, attr := range schema.Attributes {
+			switch {
+			case attr.Computed:
+				objMap[name] = cty.UnknownVal(attr.Type)
+				allNull = false
+			default:
+				objMap[name] = cty.NullVal(attr.Type)
+			}
+		}
+
+		// If this object has no unknown attributes, then we can leave it null.
+		if allNull {
+			return val
+		}
+
+		return cty.ObjectVal(objMap)
+	}
+
+	valMap := val.AsValueMap()
+	newVals := make(map[string]cty.Value)
+
+	for name, attr := range schema.Attributes {
+		v := valMap[name]
+
+		if attr.Computed && v.IsNull() {
+			newVals[name] = cty.UnknownVal(attr.Type)
+			continue
+		}
+
+		newVals[name] = v
+	}
+
+	for name, blockS := range schema.BlockTypes {
+		blockVal := valMap[name]
+		if blockVal.IsNull() || !blockVal.IsKnown() {
+			newVals[name] = blockVal
+			continue
+		}
+
+		blockValType := blockVal.Type()
+		blockElementType := blockS.Block.ImpliedType()
+
+		// This switches on the value type here, so we can correctly switch
+		// between Tuples/Lists and Maps/Objects.
+		switch {
+		case blockS.Nesting == configschema.NestingSingle:
+			// NestingSingle is the only exception here, where we treat the
+			// block directly as an object
+			newVals[name] = SetUnknowns(blockVal, &blockS.Block)
+
+		case blockValType.IsSetType(), blockValType.IsListType(), blockValType.IsTupleType():
+			listVals := blockVal.AsValueSlice()
+			newListVals := make([]cty.Value, 0, len(listVals))
+
+			for _, v := range listVals {
+				newListVals = append(newListVals, SetUnknowns(v, &blockS.Block))
+			}
+
+			switch {
+			case blockValType.IsSetType():
+				switch len(newListVals) {
+				case 0:
+					newVals[name] = cty.SetValEmpty(blockElementType)
+				default:
+					newVals[name] = cty.SetVal(newListVals)
+				}
+			case blockValType.IsListType():
+				switch len(newListVals) {
+				case 0:
+					newVals[name] = cty.ListValEmpty(blockElementType)
+				default:
+					newVals[name] = cty.ListVal(newListVals)
+				}
+			case blockValType.IsTupleType():
+				newVals[name] = cty.TupleVal(newListVals)
+			}
+
+		case blockValType.IsMapType(), blockValType.IsObjectType():
+			mapVals := blockVal.AsValueMap()
+			newMapVals := make(map[string]cty.Value)
+
+			for k, v := range mapVals {
+				newMapVals[k] = SetUnknowns(v, &blockS.Block)
+			}
+
+			switch {
+			case blockValType.IsMapType():
+				switch len(newMapVals) {
+				case 0:
+					newVals[name] = cty.MapValEmpty(blockElementType)
+				default:
+					newVals[name] = cty.MapVal(newMapVals)
+				}
+			case blockValType.IsObjectType():
+				if len(newMapVals) == 0 {
+					// We need to populate empty values to make a valid object.
+					for attr, ty := range blockElementType.AttributeTypes() {
+						newMapVals[attr] = cty.NullVal(ty)
+					}
+				}
+				newVals[name] = cty.ObjectVal(newMapVals)
+			}
+
+		default:
+			panic(fmt.Sprintf("failed to set unknown values for nested block %q:%#v", name, blockValType))
+		}
+	}
+
+	return cty.ObjectVal(newVals)
+}
diff --git a/helper/plugin/unknown_test.go b/helper/plugin/unknown_test.go
new file mode 100644
index 000000000000..4214b18497f7
--- /dev/null
+++ b/helper/plugin/unknown_test.go
@@ -0,0 +1,483 @@
+package plugin
+
+import (
+	"testing"
+
+	"github.com/hashicorp/terraform/configs/configschema"
+	"github.com/zclconf/go-cty/cty"
+)
+
+func TestSetUnknowns(t *testing.T) {
+	for n, tc := range map[string]struct {
+		Schema   *configschema.Block
+		Val      cty.Value
+		Expected cty.Value
+	}{
+		"empty": {
+			&configschema.Block{},
+			cty.EmptyObjectVal,
+			cty.EmptyObjectVal,
+		},
+		"no prior": {
+			&configschema.Block{
+				Attributes: map[string]*configschema.Attribute{
+					"foo": {
+						Type:     cty.String,
+						Optional: true,
+					},
+					"bar": {
+						Type:     cty.String,
+						Computed: true,
+					},
+				},
+				BlockTypes: map[string]*configschema.NestedBlock{
+					"baz": {
+						Nesting: configschema.NestingSingle,
+						Block: configschema.Block{
+							Attributes: map[string]*configschema.Attribute{
+								"boz": {
+									Type:     cty.String,
+									Optional: true,
+									Computed: true,
+								},
+								"biz": {
+									Type:     cty.String,
+									Optional: true,
+									Computed: true,
+								},
+							},
+						},
+					},
+				},
+			},
+			cty.NullVal(cty.Object(map[string]cty.Type{
+				"foo": cty.String,
+				"bar": cty.String,
+				"baz": cty.Object(map[string]cty.Type{
+					"boz": cty.String,
+					"biz": cty.String,
+				}),
+			})),
+			cty.ObjectVal(map[string]cty.Value{
+				"foo": cty.NullVal(cty.String),
+				"bar": cty.UnknownVal(cty.String),
+			}),
+		},
+		"null stays null": {
+			// if the object has no computed attributes, it should stay null
+			&configschema.Block{
+				Attributes: map[string]*configschema.Attribute{
+					"foo": &configschema.Attribute{
+						Type: cty.String,
+					},
+				},
+				BlockTypes: map[string]*configschema.NestedBlock{
+					"baz": {
+						Nesting: configschema.NestingSet,
+						Block: configschema.Block{
+							Attributes: map[string]*configschema.Attribute{
+								"boz": {
+									Type:     cty.String,
+									Optional: true,
+									Computed: true,
+								},
+							},
+						},
+					},
+				},
+			},
+			cty.NullVal(cty.Object(map[string]cty.Type{
+				"foo": cty.String,
+				"baz": cty.Set(cty.Object(map[string]cty.Type{
+					"boz": cty.String,
+				})),
+			})),
+			cty.NullVal(cty.Object(map[string]cty.Type{
+				"foo": cty.String,
+				"baz": cty.Set(cty.Object(map[string]cty.Type{
+					"boz": cty.String,
+				})),
+			})),
+		},
+		"no prior with set": {
+			// the set value should remain null
+			&configschema.Block{
+				Attributes: map[string]*configschema.Attribute{
+					"foo": &configschema.Attribute{
+						Type:     cty.String,
+						Computed: true,
+					},
+				},
+				BlockTypes: map[string]*configschema.NestedBlock{
+					"baz": {
+						Nesting: configschema.NestingSet,
+						Block: configschema.Block{
+							Attributes: map[string]*configschema.Attribute{
+								"boz": {
+									Type:     cty.String,
+									Optional: true,
+									Computed: true,
+								},
+							},
+						},
+					},
+				},
+			},
+			cty.NullVal(cty.Object(map[string]cty.Type{
+				"foo": cty.String,
+				"baz": cty.Set(cty.Object(map[string]cty.Type{
+					"boz": cty.String,
+				})),
+			})),
+			cty.ObjectVal(map[string]cty.Value{
+				"foo": cty.UnknownVal(cty.String),
+			}),
+		},
+		"prior attributes": {
+			&configschema.Block{
+				Attributes: map[string]*configschema.Attribute{
+					"foo": {
+						Type:     cty.String,
+						Optional: true,
+					},
+					"bar": {
+						Type:     cty.String,
+						Computed: true,
+					},
+					"baz": {
+						Type:     cty.String,
+						Optional: true,
+						Computed: true,
+					},
+					"boz": {
+						Type:     cty.String,
+						Optional: true,
+						Computed: true,
+					},
+				},
+			},
+			cty.ObjectVal(map[string]cty.Value{
+				"foo": cty.StringVal("bonjour"),
+				"bar": cty.StringVal("petit dejeuner"),
+				"baz": cty.StringVal("grande dejeuner"),
+			}),
+			cty.ObjectVal(map[string]cty.Value{
+				"foo": cty.StringVal("bonjour"),
+				"bar": cty.StringVal("petit dejeuner"),
+				"baz": cty.StringVal("grande dejeuner"),
+				"boz": cty.UnknownVal(cty.String),
+			}),
+		},
+		"prior nested single": {
+			&configschema.Block{
+				BlockTypes: map[string]*configschema.NestedBlock{
+					"foo": {
+						Nesting: configschema.NestingSingle,
+						Block: configschema.Block{
+							Attributes: map[string]*configschema.Attribute{
+								"bar": {
+									Type:     cty.String,
+									Optional: true,
+									Computed: true,
+								},
+								"baz": {
+									Type:     cty.String,
+									Optional: true,
+									Computed: true,
+								},
+							},
+						},
+					},
+				},
+			},
+			cty.ObjectVal(map[string]cty.Value{
+				"foo": cty.ObjectVal(map[string]cty.Value{
+					"bar": cty.StringVal("beep"),
+				}),
+			}),
+			cty.ObjectVal(map[string]cty.Value{
+				"foo": cty.ObjectVal(map[string]cty.Value{
+					"bar": cty.StringVal("beep"),
+					"baz": cty.UnknownVal(cty.String),
+				}),
+			}),
+		},
+		"prior nested list": {
+			&configschema.Block{
+				BlockTypes: map[string]*configschema.NestedBlock{
+					"foo": {
+						Nesting: configschema.NestingList,
+						Block: configschema.Block{
+							Attributes: map[string]*configschema.Attribute{
+								"bar": {
+									Type:     cty.String,
+									Optional: true,
+									Computed: true,
+								},
+								"baz": {
+									Type:     cty.String,
+									Optional: true,
+									Computed: true,
+								},
+							},
+						},
+					},
+				},
+			},
+			cty.ObjectVal(map[string]cty.Value{
+				"foo": cty.ListVal([]cty.Value{
+					cty.ObjectVal(map[string]cty.Value{
+						"bar": cty.StringVal("bap"),
+					}),
+					cty.ObjectVal(map[string]cty.Value{
+						"bar": cty.StringVal("blep"),
+					}),
+				}),
+			}),
+			cty.ObjectVal(map[string]cty.Value{
+				"foo": cty.ListVal([]cty.Value{
+					cty.ObjectVal(map[string]cty.Value{
+						"bar": cty.StringVal("bap"),
+						"baz": cty.UnknownVal(cty.String),
+					}),
+					cty.ObjectVal(map[string]cty.Value{
+						"bar": cty.StringVal("blep"),
+						"baz": cty.UnknownVal(cty.String),
+					}),
+				}),
+			}),
+		},
+		"prior nested map": {
+			&configschema.Block{
+				BlockTypes: map[string]*configschema.NestedBlock{
+					"foo": {
+						Nesting: configschema.NestingMap,
+						Block: configschema.Block{
+							Attributes: map[string]*configschema.Attribute{
+								"bar": {
+									Type:     cty.String,
+									Optional: true,
+									Computed: true,
+								},
+								"baz": {
+									Type:     cty.String,
+									Optional: true,
+									Computed: true,
+								},
+							},
+						},
+					},
+				},
+			},
+			cty.ObjectVal(map[string]cty.Value{
+				"foo": cty.MapVal(map[string]cty.Value{
+					"a": cty.ObjectVal(map[string]cty.Value{
+						"bar": cty.NullVal(cty.String),
+						"baz": cty.StringVal("boop"),
+					}),
+					"b": cty.ObjectVal(map[string]cty.Value{
+						"bar": cty.StringVal("blep"),
+						"baz": cty.NullVal(cty.String),
+					}),
+				}),
+			}),
+			cty.ObjectVal(map[string]cty.Value{
+				"foo": cty.MapVal(map[string]cty.Value{
+					"a": cty.ObjectVal(map[string]cty.Value{
+						"bar": cty.UnknownVal(cty.String),
+						"baz": cty.StringVal("boop"),
+					}),
+					"b": cty.ObjectVal(map[string]cty.Value{
+						"bar": cty.StringVal("blep"),
+						"baz": cty.UnknownVal(cty.String),
+					}),
+				}),
+			}),
+		},
+		"prior nested set": {
+			&configschema.Block{
+				BlockTypes: map[string]*configschema.NestedBlock{
+					"foo": {
+						Nesting: configschema.NestingSet,
+						Block: configschema.Block{
+							Attributes: map[string]*configschema.Attribute{
+								"bar": {
+									Type:     cty.String,
+									Optional: true,
+								},
+								"baz": {
+									Type:     cty.String,
+									Optional: true,
+									Computed: true,
+								},
+							},
+						},
+					},
+				},
+			},
+			cty.ObjectVal(map[string]cty.Value{
+				"foo": cty.SetVal([]cty.Value{
+					cty.ObjectVal(map[string]cty.Value{
+						"bar": cty.StringVal("blep"),
+						"baz": cty.NullVal(cty.String),
+					}),
+					cty.ObjectVal(map[string]cty.Value{
+						"bar": cty.StringVal("boop"),
+						"baz": cty.NullVal(cty.String),
+					}),
+				}),
+			}),
+			cty.ObjectVal(map[string]cty.Value{
+				"foo": cty.SetVal([]cty.Value{
+					cty.ObjectVal(map[string]cty.Value{
+						"bar": cty.StringVal("blep"),
+						"baz": cty.UnknownVal(cty.String),
+					}),
+					cty.ObjectVal(map[string]cty.Value{
+						"bar": cty.StringVal("boop"),
+						"baz": cty.UnknownVal(cty.String),
+					}),
+				}),
+			}),
+		},
+		"sets differing only by unknown": {
+			&configschema.Block{
+				BlockTypes: map[string]*configschema.NestedBlock{
+					"foo": {
+						Nesting: configschema.NestingSet,
+						Block: configschema.Block{
+							Attributes: map[string]*configschema.Attribute{
+								"bar": {
+									Type:     cty.String,
+									Optional: true,
+								},
+								"baz": {
+									Type:     cty.String,
+									Optional: true,
+									Computed: true,
+								},
+							},
+						},
+					},
+				},
+			},
+			cty.ObjectVal(map[string]cty.Value{
+				"foo": cty.SetVal([]cty.Value{
+					cty.ObjectVal(map[string]cty.Value{
+						"bar": cty.StringVal("boop"),
+						"baz": cty.NullVal(cty.String),
+					}),
+					cty.ObjectVal(map[string]cty.Value{
+						"bar": cty.StringVal("boop"),
+						"baz": cty.UnknownVal(cty.String),
+					}),
+				}),
+			}),
+			cty.ObjectVal(map[string]cty.Value{
+				"foo": cty.SetVal([]cty.Value{
+					cty.ObjectVal(map[string]cty.Value{
+						"bar": cty.StringVal("boop"),
+						"baz": cty.UnknownVal(cty.String),
+					}),
+					cty.ObjectVal(map[string]cty.Value{
+						"bar": cty.StringVal("boop"),
+						"baz": cty.UnknownVal(cty.String),
+					}),
+				}),
+			}),
+		},
+		"prior nested list with dynamic": {
+			&configschema.Block{
+				BlockTypes: map[string]*configschema.NestedBlock{
+					"foo": {
+						Nesting: configschema.NestingList,
+						Block: configschema.Block{
+							Attributes: map[string]*configschema.Attribute{
+								"bar": {
+									Type:     cty.String,
+									Optional: true,
+									Computed: true,
+								},
+								"baz": {
+									Type:     cty.DynamicPseudoType,
+									Optional: true,
+									Computed: true,
+								},
+							},
+						},
+					},
+				},
+			},
+			cty.ObjectVal(map[string]cty.Value{
+				"foo": cty.TupleVal([]cty.Value{
+					cty.ObjectVal(map[string]cty.Value{
+						"bar": cty.NullVal(cty.String),
+						"baz": cty.NumberIntVal(8),
+					}),
+				}),
+			}),
+			cty.ObjectVal(map[string]cty.Value{
+				"foo": cty.TupleVal([]cty.Value{
+					cty.ObjectVal(map[string]cty.Value{
+						"bar": cty.UnknownVal(cty.String),
+						"baz": cty.NumberIntVal(8),
+					}),
+				}),
+			}),
+		},
+		"prior nested map with dynamic": {
+			&configschema.Block{
+				BlockTypes: map[string]*configschema.NestedBlock{
+					"foo": {
+						Nesting: configschema.NestingMap,
+						Block: configschema.Block{
+							Attributes: map[string]*configschema.Attribute{
+								"bar": {
+									Type:     cty.String,
+									Optional: true,
+									Computed: true,
+								},
+								"baz": {
+									Type:     cty.DynamicPseudoType,
+									Optional: true,
+									Computed: true,
+								},
+							},
+						},
+					},
+				},
+			},
+			cty.ObjectVal(map[string]cty.Value{
+				"foo": cty.ObjectVal(map[string]cty.Value{
+					"a": cty.ObjectVal(map[string]cty.Value{
+						"bar": cty.StringVal("beep"),
+						"baz": cty.NullVal(cty.DynamicPseudoType),
+					}),
+					"b": cty.ObjectVal(map[string]cty.Value{
+						"bar": cty.StringVal("boop"),
+						"baz": cty.NumberIntVal(8),
+					}),
+				}),
+			}),
+			cty.ObjectVal(map[string]cty.Value{
+				"foo": cty.ObjectVal(map[string]cty.Value{
+					"a": cty.ObjectVal(map[string]cty.Value{
+						"bar": cty.StringVal("beep"),
+						"baz": cty.UnknownVal(cty.DynamicPseudoType),
+					}),
+					"b": cty.ObjectVal(map[string]cty.Value{
+						"bar": cty.StringVal("boop"),
+						"baz": cty.NumberIntVal(8),
+					}),
+				}),
+			}),
+		},
+	} {
+		t.Run(n, func(t *testing.T) {
+			got := SetUnknowns(tc.Val, tc.Schema)
+			if !got.RawEquals(tc.Expected) {
+				t.Fatalf("\nexpected: %#v\ngot:      %#v\n", tc.Expected, got)
+			}
+		})
+	}
+}
diff --git a/lang/funcs/string.go b/lang/funcs/string.go
index cb3d03cbd477..c9ddf19e368d 100644
--- a/lang/funcs/string.go
+++ b/lang/funcs/string.go
@@ -39,10 +39,18 @@ var JoinFunc = function.New(&function.Spec{
 		}
 
 		items := make([]string, 0, l)
-		for _, list := range listVals {
+		for ai, list := range listVals {
+			ei := 0
 			for it := list.ElementIterator(); it.Next(); {
 				_, val := it.Element()
+				if val.IsNull() {
+					if len(listVals) > 1 {
+						return cty.UnknownVal(cty.String), function.NewArgErrorf(ai+1, "element %d of list %d is null; cannot concatenate null values", ei, ai+1)
+					}
+					return cty.UnknownVal(cty.String), function.NewArgErrorf(ai+1, "element %d is null; cannot concatenate null values", ei)
+				}
 				items = append(items, val.AsString())
+				ei++
 			}
 		}
 
diff --git a/plans/objchange/all_null.go b/plans/objchange/all_null.go
new file mode 100644
index 000000000000..b1acb253afe4
--- /dev/null
+++ b/plans/objchange/all_null.go
@@ -0,0 +1,68 @@
+package objchange
+
+import (
+	"fmt"
+
+	"github.com/hashicorp/terraform/configs/configschema"
+	"github.com/zclconf/go-cty/cty"
+)
+
+// AllAttributesNull constructs a non-null cty.Value of the object type implied
+// by the given schema that has all of its leaf attributes set to null and all
+// of its nested block collections set to zero-length.
+//
+// This simulates what would result from decoding an empty configuration block
+// with the given schema, except that it does not produce errors
+func AllAttributesNull(schema *configschema.Block) cty.Value {
+	vals := make(map[string]cty.Value)
+	ty := schema.ImpliedType()
+
+	for name := range schema.Attributes {
+		aty := ty.AttributeType(name)
+		vals[name] = cty.NullVal(aty)
+	}
+
+	for name, blockS := range schema.BlockTypes {
+		aty := ty.AttributeType(name)
+
+		switch blockS.Nesting {
+		case configschema.NestingSingle:
+			// NestingSingle behaves like an object attribute, which decodes
+			// as null when it's not present in configuration.
+			vals[name] = cty.NullVal(aty)
+		default:
+			// All other nesting types decode as "empty" when not present, but
+			// empty values take different forms depending on the type.
+			switch {
+			case aty.IsListType():
+				vals[name] = cty.ListValEmpty(aty.ElementType())
+			case aty.IsSetType():
+				vals[name] = cty.SetValEmpty(aty.ElementType())
+			case aty.IsMapType():
+				vals[name] = cty.MapValEmpty(aty.ElementType())
+			case aty.Equals(cty.DynamicPseudoType):
+				// We use DynamicPseudoType in situations where there's a
+				// nested attribute of DynamicPseudoType, since the schema
+				// system cannot predict the final type until it knows exactly
+				// how many elements there will be. However, since we're
+				// trying to behave as if there are _no_ elements, we know
+				// we're producing either an empty tuple or empty object
+				// and just need to distinguish these two cases.
+				switch blockS.Nesting {
+				case configschema.NestingList:
+					vals[name] = cty.EmptyTupleVal
+				case configschema.NestingMap:
+					vals[name] = cty.EmptyObjectVal
+				}
+			}
+		}
+
+		// By the time we get down here we should always have set a value.
+		// If not, that suggests a missing case in the above switches.
+		if _, ok := vals[name]; !ok {
+			panic(fmt.Sprintf("failed to create empty value for nested block %q", name))
+		}
+	}
+
+	return cty.ObjectVal(vals)
+}
diff --git a/plans/objchange/objchange.go b/plans/objchange/objchange.go
index 33e82dd52ff5..15565a400694 100644
--- a/plans/objchange/objchange.go
+++ b/plans/objchange/objchange.go
@@ -26,11 +26,38 @@ import (
 // block where _all_ attributes are computed.
 func ProposedNewObject(schema *configschema.Block, prior, config cty.Value) cty.Value {
 	if prior.IsNull() {
-		// In this case, we will treat the prior value as unknown so that
-		// any computed attributes not overridden in config will show as
-		// unknown values, rather than null values.
-		prior = cty.UnknownVal(schema.ImpliedType())
+		// In this case, we will construct a synthetic prior value that is
+		// similar to the result of decoding an empty configuration block,
+		// which simplifies our handling of the top-level attributes/blocks
+		// below by giving us one non-null level of object to pull values from.
+		prior = AllAttributesNull(schema)
 	}
+	return proposedNewObject(schema, prior, config)
+}
+
+// PlannedDataResourceObject is similar to ProposedNewObject but tailored for
+// planning data resources in particular. Specifically, it replaces the values
+// of any Computed attributes not set in the configuration with an unknown
+// value, which serves as a placeholder for a value to be filled in by the
+// provider when the data resource is finally read.
+//
+// Data resources are different because the planning of them is handled
+// entirely within Terraform Core and not subject to customization by the
+// provider. This function is, in effect, producing an equivalent result to
+// passing the ProposedNewObject result into a provider's PlanResourceChange
+// function, assuming a fixed implementation of PlanResourceChange that just
+// fills in unknown values as needed.
+func PlannedDataResourceObject(schema *configschema.Block, config cty.Value) cty.Value {
+	// Our trick here is to run the ProposedNewObject logic with an
+	// entirely-unknown prior value. Because of cty's unknown short-circuit
+	// behavior, any operation on prior returns another unknown, and so
+	// unknown values propagate into all of the parts of the resulting value
+	// that would normally be filled in by preserving the prior state.
+	prior := cty.UnknownVal(schema.ImpliedType())
+	return proposedNewObject(schema, prior, config)
+}
+
+func proposedNewObject(schema *configschema.Block, prior, config cty.Value) cty.Value {
 	if config.IsNull() || !config.IsKnown() {
 		// This is a weird situation, but we'll allow it anyway to free
 		// callers from needing to specifically check for these cases.
diff --git a/plans/objchange/objchange_test.go b/plans/objchange/objchange_test.go
index b2f6402544b9..91f9df1f21c7 100644
--- a/plans/objchange/objchange_test.go
+++ b/plans/objchange/objchange_test.go
@@ -44,6 +44,11 @@ func TestProposedNewObject(t *testing.T) {
 									Optional: true,
 									Computed: true,
 								},
+								"biz": {
+									Type:     cty.String,
+									Optional: true,
+									Computed: true,
+								},
 							},
 						},
 					},
@@ -55,13 +60,26 @@ func TestProposedNewObject(t *testing.T) {
 				"bar": cty.NullVal(cty.String),
 				"baz": cty.ObjectVal(map[string]cty.Value{
 					"boz": cty.StringVal("world"),
+
+					// An unknown in the config represents a situation where
+					// an argument is explicitly set to an expression result
+					// that is derived from an unknown value. This is distinct
+					// from leaving it null, which allows the provider itself
+					// to decide the value during PlanResourceChange.
+					"biz": cty.UnknownVal(cty.String),
 				}),
 			}),
 			cty.ObjectVal(map[string]cty.Value{
 				"foo": cty.StringVal("hello"),
-				"bar": cty.UnknownVal(cty.String),
+
+				// unset computed attributes are null in the proposal; provider
+				// usually changes them to "unknown" during PlanResourceChange,
+				// to indicate that the value will be decided during apply.
+				"bar": cty.NullVal(cty.String),
+
 				"baz": cty.ObjectVal(map[string]cty.Value{
 					"boz": cty.StringVal("world"),
+					"biz": cty.UnknownVal(cty.String), // explicit unknown preserved from config
 				}),
 			}),
 		},
@@ -468,7 +486,49 @@ func TestProposedNewObject(t *testing.T) {
 					}),
 					cty.ObjectVal(map[string]cty.Value{
 						"bar": cty.StringVal("bosh"),
-						"baz": cty.UnknownVal(cty.String),
+						"baz": cty.NullVal(cty.String),
+					}),
+				}),
+			}),
+		},
+		"sets differing only by unknown": {
+			&configschema.Block{
+				BlockTypes: map[string]*configschema.NestedBlock{
+					"multi": {
+						Nesting: configschema.NestingSet,
+						Block: configschema.Block{
+							Attributes: map[string]*configschema.Attribute{
+								"optional": {
+									Type:     cty.String,
+									Optional: true,
+									Computed: true,
+								},
+							},
+						},
+					},
+				},
+			},
+			cty.NullVal(cty.DynamicPseudoType),
+			cty.ObjectVal(map[string]cty.Value{
+				"multi": cty.SetVal([]cty.Value{
+					cty.ObjectVal(map[string]cty.Value{
+						"optional": cty.UnknownVal(cty.String),
+					}),
+					cty.ObjectVal(map[string]cty.Value{
+						"optional": cty.UnknownVal(cty.String),
+					}),
+				}),
+			}),
+			cty.ObjectVal(map[string]cty.Value{
+				"multi": cty.SetVal([]cty.Value{
+					// These remain distinct because unknown values never
+					// compare equal. They may be consolidated together once
+					// the values become known, though.
+					cty.ObjectVal(map[string]cty.Value{
+						"optional": cty.UnknownVal(cty.String),
+					}),
+					cty.ObjectVal(map[string]cty.Value{
+						"optional": cty.UnknownVal(cty.String),
 					}),
 				}),
 			}),
diff --git a/terraform/context_plan_test.go b/terraform/context_plan_test.go
index f5eadd40b909..a58035233227 100644
--- a/terraform/context_plan_test.go
+++ b/terraform/context_plan_test.go
@@ -1985,8 +1985,12 @@ func TestContext2Plan_dataResourceBecomesComputed(t *testing.T) {
 	}
 
 	p.PlanResourceChangeFn = func(req providers.PlanResourceChangeRequest) providers.PlanResourceChangeResponse {
+		fooVal := req.ProposedNewState.GetAttr("foo")
 		return providers.PlanResourceChangeResponse{
-			PlannedState:   req.ProposedNewState,
+			PlannedState: cty.ObjectVal(map[string]cty.Value{
+				"foo":      fooVal,
+				"computed": cty.UnknownVal(cty.String),
+			}),
 			PlannedPrivate: req.PriorPrivate,
 		}
 	}
@@ -1995,9 +1999,9 @@ func TestContext2Plan_dataResourceBecomesComputed(t *testing.T) {
 	ty := schema.ImpliedType()
 
 	p.ReadDataSourceResponse = providers.ReadDataSourceResponse{
-		State: cty.ObjectVal(map[string]cty.Value{
-			"foo": cty.UnknownVal(cty.String),
-		}),
+		// This should not be called, because the configuration for the
+		// data resource contains an unknown value for "foo".
+		Diagnostics: tfdiags.Diagnostics(nil).Append(fmt.Errorf("ReadDataSource called, but should not have been")),
 	}
 
 	ctx := testContext2(t, &ContextOpts{
@@ -4986,8 +4990,20 @@ func TestContext2Plan_createBeforeDestroy_depends_datasource(t *testing.T) {
 		},
 	}
 	p.PlanResourceChangeFn = func(req providers.PlanResourceChangeRequest) providers.PlanResourceChangeResponse {
+		computedVal := req.ProposedNewState.GetAttr("computed")
+		if computedVal.IsNull() {
+			computedVal = cty.UnknownVal(cty.String)
+		}
 		return providers.PlanResourceChangeResponse{
-			PlannedState: req.ProposedNewState,
+			PlannedState: cty.ObjectVal(map[string]cty.Value{
+				"num":      req.ProposedNewState.GetAttr("num"),
+				"computed": computedVal,
+			}),
+		}
+	}
+	p.ReadDataSourceFn = func(req providers.ReadDataSourceRequest) providers.ReadDataSourceResponse {
+		return providers.ReadDataSourceResponse{
+			Diagnostics: tfdiags.Diagnostics(nil).Append(fmt.Errorf("ReadDataSource called, but should not have been")),
 		}
 	}
 
@@ -5000,11 +5016,20 @@ func TestContext2Plan_createBeforeDestroy_depends_datasource(t *testing.T) {
 		),
 	})
 
+	// We're skipping ctx.Refresh here, which simulates what happens when
+	// running "terraform plan -refresh=false". As a result, we don't get our
+	// usual opportunity to read the data source during the refresh step and
+	// thus the plan call below is forced to produce a deferred read action.
+
 	plan, diags := ctx.Plan()
+	if p.ReadDataSourceCalled {
+		t.Errorf("ReadDataSource was called on the provider, but should not have been because we didn't refresh")
+	}
 	if diags.HasErrors() {
 		t.Fatalf("unexpected errors: %s", diags.Err())
 	}
 
+	seenAddrs := make(map[string]struct{})
 	for _, res := range plan.Changes.Resources {
 		var schema *configschema.Block
 		switch res.Addr.Resource.Resource.Mode {
@@ -5019,6 +5044,8 @@ func TestContext2Plan_createBeforeDestroy_depends_datasource(t *testing.T) {
 			t.Fatal(err)
 		}
 
+		seenAddrs[ric.Addr.String()] = struct{}{}
+
 		t.Run(ric.Addr.String(), func(t *testing.T) {
 			switch i := ric.Addr.String(); i {
 			case "aws_instance.foo[0]":
@@ -5042,6 +5069,10 @@ func TestContext2Plan_createBeforeDestroy_depends_datasource(t *testing.T) {
 					t.Fatalf("resource %s should be read, got %s", ric.Addr, ric.Action)
 				}
 				checkVals(t, objectVal(t, schema, map[string]cty.Value{
+					// In a normal flow we would've read an exact value in
+					// ReadDataSource, but because this test doesn't run
+					// cty.Refresh we have no opportunity to do that lookup
+					// and a deferred read is forced.
 					"id":  cty.UnknownVal(cty.String),
 					"foo": cty.StringVal("0"),
 				}), ric.After)
@@ -5050,6 +5081,10 @@ func TestContext2Plan_createBeforeDestroy_depends_datasource(t *testing.T) {
 					t.Fatalf("resource %s should be read, got %s", ric.Addr, ric.Action)
 				}
 				checkVals(t, objectVal(t, schema, map[string]cty.Value{
+					// In a normal flow we would've read an exact value in
+					// ReadDataSource, but because this test doesn't run
+					// cty.Refresh we have no opportunity to do that lookup
+					// and a deferred read is forced.
 					"id":  cty.UnknownVal(cty.String),
 					"foo": cty.StringVal("1"),
 				}), ric.After)
@@ -5058,6 +5093,16 @@ func TestContext2Plan_createBeforeDestroy_depends_datasource(t *testing.T) {
 			}
 		})
 	}
+
+	wantAddrs := map[string]struct{}{
+		"aws_instance.foo[0]": struct{}{},
+		"aws_instance.foo[1]": struct{}{},
+		"data.aws_vpc.bar[0]": struct{}{},
+		"data.aws_vpc.bar[1]": struct{}{},
+	}
+	if !cmp.Equal(seenAddrs, wantAddrs) {
+		t.Errorf("incorrect addresses in changeset:\n%s", cmp.Diff(wantAddrs, seenAddrs))
+	}
 }
 
 // interpolated lists need to be stored in the original order.
diff --git a/terraform/eval_read_data.go b/terraform/eval_read_data.go
index e9096909eb0f..d89d02ba9113 100644
--- a/terraform/eval_read_data.go
+++ b/terraform/eval_read_data.go
@@ -104,7 +104,7 @@ func (n *EvalReadData) Eval(ctx EvalContext) (interface{}, error) {
 		return nil, diags.Err()
 	}
 
-	proposedNewVal := objchange.ProposedNewObject(schema, priorVal, configVal)
+	proposedNewVal := objchange.PlannedDataResourceObject(schema, configVal)
 
 	// If our configuration contains any unknown values then we must defer the
 	// read to the apply phase by producing a "Read" change for this resource,
@@ -119,7 +119,11 @@ func (n *EvalReadData) Eval(ctx EvalContext) (interface{}, error) {
 				absAddr,
 			)
 		}
-		log.Printf("[TRACE] EvalReadData: %s configuration not fully known yet, so deferring to apply phase", absAddr)
+		if n.ForcePlanRead {
+			log.Printf("[TRACE] EvalReadData: %s configuration is fully known, but we're forcing a read plan to be created", absAddr)
+		} else {
+			log.Printf("[TRACE] EvalReadData: %s configuration not fully known yet, so deferring to apply phase", absAddr)
+		}
 
 		err := ctx.Hook(func(h Hook) (HookAction, error) {
 			return h.PreDiff(absAddr, states.CurrentGen, priorVal, proposedNewVal)
@@ -227,6 +231,24 @@ func (n *EvalReadData) Eval(ctx EvalContext) (interface{}, error) {
 			),
 		))
 	}
+	if !newVal.IsWhollyKnown() {
+		diags = diags.Append(tfdiags.Sourceless(
+			tfdiags.Error,
+			"Provider produced invalid object",
+			fmt.Sprintf(
+				"Provider %q produced a value for %s that is not wholly known.\n\nThis is a bug in the provider, which should be reported in the provider's own issue tracker.",
+				n.ProviderAddr.ProviderConfig.Type, absAddr,
+			),
+		))
+
+		// We'll still save the object, but we need to eliminate any unknown
+		// values first because we can't serialize them in the state file.
+		// Note that this may cause set elements to be coalesced if they
+		// differed only by having unknown values, but we don't worry about
+		// that here because we're saving the value only for inspection
+		// purposes; the error we added above will halt the graph walk.
+		newVal = cty.UnknownAsNull(newVal)
+	}
 
 	// Since we've completed the read, we actually have no change to make, but
 	// we'll produce a NoOp one anyway to preserve the usual flow of the