diff --git a/cty/value_init.go b/cty/value_init.go
index 2dafe17a..fc2d7b6f 100644
--- a/cty/value_init.go
+++ b/cty/value_init.go
@@ -247,11 +247,6 @@ func SetVal(vals []Value) Value {
 			val = unmarkedVal
 			markSets = append(markSets, marks)
 		}
-		if val.ContainsMarked() {
-			// FIXME: Allow this, but unmark the values and apply the
-			// marking to the set itself instead.
-			panic("set cannot contain marked values")
-		}
 		if elementType == DynamicPseudoType {
 			elementType = val.ty
 		} else if val.ty != DynamicPseudoType && !elementType.Equals(val.ty) {