diff --git a/terraform/context_apply_test.go b/terraform/context_apply_test.go
index 032310aac..2f4d43296 100644
--- a/terraform/context_apply_test.go
+++ b/terraform/context_apply_test.go
@@ -894,6 +894,43 @@ func TestContext2Apply_moduleProviderAliasTargets(t *testing.T) {
 	}
 }
 
+func TestContext2Apply_moduleProviderCloseNested(t *testing.T) {
+	m := testModule(t, "apply-module-provider-close-nested")
+	p := testProvider("aws")
+	p.ApplyFn = testApplyFn
+	p.DiffFn = testDiffFn
+	ctx := testContext2(t, &ContextOpts{
+		Module: m,
+		Providers: map[string]ResourceProviderFactory{
+			"aws": testProviderFuncFixed(p),
+		},
+		State: &State{
+			Modules: []*ModuleState{
+				&ModuleState{
+					Path: []string{"root", "child", "subchild"},
+					Resources: map[string]*ResourceState{
+						"aws_instance.foo": &ResourceState{
+							Type: "aws_instance",
+							Primary: &InstanceState{
+								ID: "bar",
+							},
+						},
+					},
+				},
+			},
+		},
+		Destroy: true,
+	})
+
+	if _, err := ctx.Plan(); err != nil {
+		t.Fatalf("err: %s", err)
+	}
+
+	if _, err := ctx.Apply(); err != nil {
+		t.Fatalf("err: %s", err)
+	}
+}
+
 func TestContext2Apply_moduleVarResourceCount(t *testing.T) {
 	m := testModule(t, "apply-module-var-resource-count")
 	p := testProvider("aws")
diff --git a/terraform/graph_config_node_resource.go b/terraform/graph_config_node_resource.go
index 936398d2a..2235f4925 100644
--- a/terraform/graph_config_node_resource.go
+++ b/terraform/graph_config_node_resource.go
@@ -335,6 +335,13 @@ func (n *graphNodeResourceDestroyFlat) CreateNode() dag.Vertex {
 	return n.FlatCreateNode
 }
 
+func (n *graphNodeResourceDestroyFlat) ProvidedBy() []string {
+	prefix := modulePrefixStr(n.PathValue)
+	return modulePrefixList(
+		n.GraphNodeConfigResource.ProvidedBy(),
+		prefix)
+}
+
 // graphNodeResourceDestroy represents the logical destruction of a
 // resource. This node doesn't mean it will be destroyed for sure, but
 // instead that if a destroy were to happen, it must happen at this point.
diff --git a/terraform/test-fixtures/apply-module-provider-close-nested/child/main.tf b/terraform/test-fixtures/apply-module-provider-close-nested/child/main.tf
new file mode 100644
index 000000000..852bce8b9
--- /dev/null
+++ b/terraform/test-fixtures/apply-module-provider-close-nested/child/main.tf
@@ -0,0 +1,3 @@
+module "subchild" {
+    source = "./subchild"
+}
diff --git a/terraform/test-fixtures/apply-module-provider-close-nested/child/subchild/main.tf b/terraform/test-fixtures/apply-module-provider-close-nested/child/subchild/main.tf
new file mode 100644
index 000000000..919f140bb
--- /dev/null
+++ b/terraform/test-fixtures/apply-module-provider-close-nested/child/subchild/main.tf
@@ -0,0 +1 @@
+resource "aws_instance" "foo" {}
diff --git a/terraform/test-fixtures/apply-module-provider-close-nested/main.tf b/terraform/test-fixtures/apply-module-provider-close-nested/main.tf
new file mode 100644
index 000000000..0f6991c53
--- /dev/null
+++ b/terraform/test-fixtures/apply-module-provider-close-nested/main.tf
@@ -0,0 +1,3 @@
+module "child" {
+    source = "./child"
+}
diff --git a/terraform/transform_provider.go b/terraform/transform_provider.go
index fb8857c96..8a6655182 100644
--- a/terraform/transform_provider.go
+++ b/terraform/transform_provider.go
@@ -130,7 +130,7 @@ func (t *CloseProviderTransformer) Transform(g *Graph) error {
 					provider, ok := pm[p]
 					if !ok {
 						err = multierror.Append(err, fmt.Errorf(
-							"%s: provider %s couldn't be found",
+							"%s: provider %s couldn't be found for closing",
 							dag.VertexName(v), p))
 						continue
 					}