diff --git a/command/apply_test.go b/command/apply_test.go
index 7f21aa1c2..65d341293 100644
--- a/command/apply_test.go
+++ b/command/apply_test.go
@@ -603,9 +603,7 @@ func TestApply_plan_backup(t *testing.T) {
 	if err != nil {
 		t.Fatal(err)
 	}
-
-	args := []string{
-		"-state-out", statePath,
+	args := []string{"-state-out", statePath,
 		"-backup", backupPath,
 		planPath,
 	}
@@ -1531,6 +1529,91 @@ func TestApply_disableBackup(t *testing.T) {
 	}
 }
 
+// Test that the Terraform env is passed through
+func TestApply_terraformEnv(t *testing.T) {
+	statePath := testTempFile(t)
+
+	p := testProvider()
+	ui := new(cli.MockUi)
+	c := &ApplyCommand{
+		Meta: Meta{
+			ContextOpts: testCtxConfig(p),
+			Ui:          ui,
+		},
+	}
+
+	args := []string{
+		"-state", statePath,
+		testFixturePath("apply-terraform-env"),
+	}
+	if code := c.Run(args); code != 0 {
+		t.Fatalf("bad: %d\n\n%s", code, ui.ErrorWriter.String())
+	}
+
+	expected := strings.TrimSpace(`
+<no state>
+Outputs:
+
+output = default
+	`)
+	testStateOutput(t, statePath, expected)
+}
+
+// Test that the Terraform env is passed through
+func TestApply_terraformEnvNonDefault(t *testing.T) {
+	// Create a temporary working directory that is empty
+	td := tempDir(t)
+	os.MkdirAll(td, 0755)
+	defer os.RemoveAll(td)
+	defer testChdir(t, td)()
+
+	// Create new env
+	{
+		ui := new(cli.MockUi)
+		newCmd := &EnvNewCommand{}
+		newCmd.Meta = Meta{Ui: ui}
+		if code := newCmd.Run([]string{"test"}); code != 0 {
+			t.Fatalf("bad: %d\n\n%s", code, ui.ErrorWriter)
+		}
+	}
+
+	// Switch to it
+	{
+		args := []string{"test"}
+		ui := new(cli.MockUi)
+		selCmd := &EnvSelectCommand{}
+		selCmd.Meta = Meta{Ui: ui}
+		if code := selCmd.Run(args); code != 0 {
+			t.Fatalf("bad: %d\n\n%s", code, ui.ErrorWriter)
+		}
+	}
+
+	p := testProvider()
+	ui := new(cli.MockUi)
+	c := &ApplyCommand{
+		Meta: Meta{
+			ContextOpts: testCtxConfig(p),
+			Ui:          ui,
+		},
+	}
+
+	args := []string{
+		testFixturePath("apply-terraform-env"),
+	}
+	if code := c.Run(args); code != 0 {
+		t.Fatalf("bad: %d\n\n%s", code, ui.ErrorWriter.String())
+	}
+
+	statePath := filepath.Join("terraform.tfstate.d", "test", "terraform.tfstate")
+	expected := strings.TrimSpace(`
+<no state>
+Outputs:
+
+output = test
+	`)
+	testStateOutput(t, statePath, expected)
+}
+
 func testHttpServer(t *testing.T) net.Listener {
 	ln, err := net.Listen("tcp", "127.0.0.1:0")
 	if err != nil {
diff --git a/command/meta.go b/command/meta.go
index c18c77fc7..0780c544f 100644
--- a/command/meta.go
+++ b/command/meta.go
@@ -208,11 +208,16 @@ func (m *Meta) contextOpts() *terraform.ContextOpts {
 		vs[k] = v
 	}
 	opts.Variables = vs
+
 	opts.Targets = m.targets
 	opts.UIInput = m.UIInput()
 	opts.Parallelism = m.parallelism
 	opts.Shadow = m.shadow
 
+	opts.Meta = &terraform.ContextMeta{
+		Env: m.Env(),
+	}
+
 	return &opts
 }
 
diff --git a/command/test-fixtures/apply-terraform-env/main.tf b/command/test-fixtures/apply-terraform-env/main.tf
new file mode 100644
index 000000000..6fc63dbc5
--- /dev/null
+++ b/command/test-fixtures/apply-terraform-env/main.tf
@@ -0,0 +1 @@
+output "output" { value = "${terraform.env}" }