diff --git a/config/config.go b/config/config.go
index 5814141f8..ed4aaaf88 100644
--- a/config/config.go
+++ b/config/config.go
@@ -290,6 +290,14 @@ func (c *Config) Validate() error {
 			raw[k] = strVal
 		}
 
+		// Check for invalid count variables
+		for _, v := range m.RawConfig.Variables {
+			if _, ok := v.(*CountVariable); ok {
+				errs = append(errs, fmt.Errorf(
+					"%s: count variables are only valid within resources", m.Name))
+			}
+		}
+
 		// Update the raw configuration to only contain the string values
 		m.RawConfig, err = NewRawConfig(raw)
 		if err != nil {
@@ -472,6 +480,13 @@ func (c *Config) Validate() error {
 			errs = append(errs, fmt.Errorf(
 				"%s: output should only have 'value' field", o.Name))
 		}
+
+		for _, v := range o.RawConfig.Variables {
+			if _, ok := v.(*CountVariable); ok {
+				errs = append(errs, fmt.Errorf(
+					"%s: count variables are only valid within resources", o.Name))
+			}
+		}
 	}
 
 	// Check that all variables are in the proper context
diff --git a/config/config_test.go b/config/config_test.go
index 0503d2e66..3f67bdbf6 100644
--- a/config/config_test.go
+++ b/config/config_test.go
@@ -3,6 +3,7 @@ package config
 import (
 	"path/filepath"
 	"reflect"
+	"strings"
 	"testing"
 )
 
@@ -60,6 +61,22 @@ func TestConfigValidate_countInt(t *testing.T) {
 	}
 }
 
+func TestConfigValidate_countBadContext(t *testing.T) {
+	c := testConfig(t, "validate-count-bad-context")
+
+	err := c.Validate()
+
+	expected := []string{
+		"no_count_in_output: count variables are only valid within resources",
+		"no_count_in_module: count variables are only valid within resources",
+	}
+	for _, exp := range expected {
+		if !strings.Contains(err.Error(), exp) {
+			t.Fatalf("expected: %q,\nto contain: %q", err, exp)
+		}
+	}
+}
+
 func TestConfigValidate_countCountVar(t *testing.T) {
 	c := testConfig(t, "validate-count-count-var")
 	if err := c.Validate(); err == nil {
diff --git a/config/test-fixtures/validate-count-bad-context/main.tf b/config/test-fixtures/validate-count-bad-context/main.tf
new file mode 100644
index 000000000..2d3833b65
--- /dev/null
+++ b/config/test-fixtures/validate-count-bad-context/main.tf
@@ -0,0 +1,11 @@
+resource "aws_instance" "foo" {
+}
+
+output "no_count_in_output" {
+  value = "${count.index}"
+}
+
+module "no_count_in_module" {
+  source = "./child"
+  somevar = "${count.index}"
+}
diff --git a/terraform/interpolate.go b/terraform/interpolate.go
index a1e6d37af..aee283a78 100644
--- a/terraform/interpolate.go
+++ b/terraform/interpolate.go
@@ -85,6 +85,9 @@ func (i *Interpolater) valueCountVar(
 	result map[string]ast.Variable) error {
 	switch v.Type {
 	case config.CountValueIndex:
+		if scope.Resource == nil {
+			return fmt.Errorf("%s: count.index is only valid within resources", n)
+		}
 		result[n] = ast.Variable{
 			Value: scope.Resource.CountIndex,
 			Type:  ast.TypeInt,
diff --git a/terraform/interpolate_test.go b/terraform/interpolate_test.go
index 13d56fffb..52896a54b 100644
--- a/terraform/interpolate_test.go
+++ b/terraform/interpolate_test.go
@@ -1,6 +1,7 @@
 package terraform
 
 import (
+	"fmt"
 	"os"
 	"reflect"
 	"sync"
@@ -24,6 +25,31 @@ func TestInterpolater_countIndex(t *testing.T) {
 	})
 }
 
+func TestInterpolater_countIndexInWrongContext(t *testing.T) {
+	i := &Interpolater{}
+
+	scope := &InterpolationScope{
+		Path: rootModulePath,
+	}
+
+	n := "count.index"
+
+	v, err := config.NewInterpolatedVariable(n)
+	if err != nil {
+		t.Fatalf("err: %s", err)
+	}
+
+	expectedErr := fmt.Errorf("foo: count.index is only valid within resources")
+
+	_, err = i.Values(scope, map[string]config.InterpolatedVariable{
+		"foo": v,
+	})
+
+	if !reflect.DeepEqual(expectedErr, err) {
+		t.Fatalf("expected: %#v, got %#v", expectedErr, err)
+	}
+}
+
 func TestInterpolater_moduleVariable(t *testing.T) {
 	lock := new(sync.RWMutex)
 	state := &State{