diff --git a/internal/terraform/transform_orphan_resource.go b/internal/terraform/transform_orphan_resource.go
index b52334ea2..af8302c49 100644
--- a/internal/terraform/transform_orphan_resource.go
+++ b/internal/terraform/transform_orphan_resource.go
@@ -79,7 +79,12 @@ func (t *OrphanResourceInstanceTransformer) transform(g *Graph, ms *states.Modul
 			}
 		}
 
-		for key := range rs.Instances {
+		for key, inst := range rs.Instances {
+			// deposed instances will be taken care of separately
+			if inst.Current == nil {
+				continue
+			}
+
 			addr := rs.Addr.Instance(key)
 			abstract := NewNodeAbstractResourceInstance(addr)
 			var node dag.Vertex = abstract
diff --git a/internal/terraform/transform_orphan_resource_test.go b/internal/terraform/transform_orphan_resource_test.go
index 2f638276e..f44f08152 100644
--- a/internal/terraform/transform_orphan_resource_test.go
+++ b/internal/terraform/transform_orphan_resource_test.go
@@ -50,6 +50,26 @@ func TestOrphanResourceInstanceTransformer(t *testing.T) {
 				Module:   addrs.RootModule,
 			},
 		)
+
+		// A deposed orphan should not be handled by this transformer
+		s.SetResourceInstanceDeposed(
+			addrs.Resource{
+				Mode: addrs.ManagedResourceMode,
+				Type: "test_instance",
+				Name: "deposed",
+			}.Instance(addrs.NoKey).Absolute(addrs.RootModuleInstance),
+			states.NewDeposedKey(),
+			&states.ResourceInstanceObjectSrc{
+				AttrsFlat: map[string]string{
+					"id": "foo",
+				},
+				Status: states.ObjectReady,
+			},
+			addrs.AbsProviderConfig{
+				Provider: addrs.NewDefaultProvider("test"),
+				Module:   addrs.RootModule,
+			},
+		)
 	})
 
 	g := Graph{Path: addrs.RootModuleInstance}