diff --git a/.changes/v1.13/BUG FIXES-20250910-095424.yaml b/.changes/v1.13/BUG FIXES-20250910-095424.yaml
new file mode 100644
index 0000000000..d34da5672b
--- /dev/null
+++ b/.changes/v1.13/BUG FIXES-20250910-095424.yaml	
@@ -0,0 +1,5 @@
+kind: BUG FIXES
+body: 'apply: hide sensitive inputs when values have changed between plan and apply'
+time: 2025-09-10T09:54:24.889605+02:00
+custom:
+    Issue: "37582"
diff --git a/internal/backend/local/backend_apply.go b/internal/backend/local/backend_apply.go
index cc734777a3..0dd3704950 100644
--- a/internal/backend/local/backend_apply.go
+++ b/internal/backend/local/backend_apply.go
@@ -17,6 +17,7 @@ import (
 	"github.com/hashicorp/terraform/internal/backend/backendrun"
 	"github.com/hashicorp/terraform/internal/command/views"
 	"github.com/hashicorp/terraform/internal/configs"
+	"github.com/hashicorp/terraform/internal/lang/marks"
 	"github.com/hashicorp/terraform/internal/logging"
 	"github.com/hashicorp/terraform/internal/plans"
 	"github.com/hashicorp/terraform/internal/states"
@@ -345,6 +346,14 @@ func (b *Local) opApply(
 						Subject:  rng,
 					})
 				} else {
+					markedPlannedVar := plannedVar
+					markedParsedVar := parsedVar.Value
+
+					if decl.Sensitive {
+						markedPlannedVar = markedPlannedVar.Mark(marks.Sensitive)
+						markedParsedVar = markedParsedVar.Mark(marks.Sensitive)
+					}
+
 					// The user can't override the planned variables, so we
 					// error when possible to avoid confusion.
 					if parsedVar.Value.Equals(plannedVar).False() {
@@ -361,7 +370,7 @@ func (b *Local) opApply(
 									"because a saved plan includes the variable values that were set when it was created. "+
 									"The saved plan specifies %s as the value whereas during apply the value %s was %s. "+
 									"To declare an ephemeral variable which is not saved in the plan file, use ephemeral = true.",
-									varName, tfdiags.CompactValueStr(plannedVar), tfdiags.CompactValueStr(parsedVar.Value),
+									varName, tfdiags.CompactValueStr(markedPlannedVar), tfdiags.CompactValueStr(markedParsedVar),
 									parsedVar.SourceType.DiagnosticLabel()),
 								Subject: rng,
 							})
@@ -374,7 +383,7 @@ func (b *Local) opApply(
 									"set when it was created. The saved plan specifies %s as the value whereas during apply "+
 									"the value %s was %s. To declare an ephemeral variable which is not saved in the plan "+
 									"file, use ephemeral = true.",
-									varName, tfdiags.CompactValueStr(plannedVar), tfdiags.CompactValueStr(parsedVar.Value),
+									varName, tfdiags.CompactValueStr(markedPlannedVar), tfdiags.CompactValueStr(markedParsedVar),
 									parsedVar.SourceType.DiagnosticLabel()),
 								Subject: rng,
 							})
@@ -386,7 +395,7 @@ func (b *Local) opApply(
 							panic(fmt.Sprintf("Attempted to change variable %s when applying a saved plan. "+
 								"The saved plan specifies %s as the value whereas during apply the value %s was %s. "+
 								"This is a bug in Terraform, please report it.",
-								varName, tfdiags.CompactValueStr(plannedVar), tfdiags.CompactValueStr(parsedVar.Value),
+								varName, tfdiags.CompactValueStr(markedPlannedVar), tfdiags.CompactValueStr(markedParsedVar),
 								parsedVar.SourceType.DiagnosticLabel()))
 						}
 					}
diff --git a/internal/command/apply_test.go b/internal/command/apply_test.go
index ddad5084c1..0d392be6ff 100644
--- a/internal/command/apply_test.go
+++ b/internal/command/apply_test.go
@@ -1053,6 +1053,78 @@ func TestApply_planWithEnvVars(t *testing.T) {
 	}
 }
 
+func TestApply_planWithSensitiveEnvVars(t *testing.T) {
+	_, snap := testModuleWithSnapshot(t, "apply-sensitive-variable")
+	plan := testPlan(t)
+
+	addr, diags := addrs.ParseAbsOutputValueStr("output.shadow")
+	if diags.HasErrors() {
+		t.Fatal(diags.Err())
+	}
+
+	shadowVal := mustNewDynamicValue("noot", cty.DynamicPseudoType)
+	plan.VariableValues = map[string]plans.DynamicValue{
+		"shadow": shadowVal,
+	}
+	plan.Changes.Outputs = append(plan.Changes.Outputs, &plans.OutputChangeSrc{
+		Addr: addr,
+		ChangeSrc: plans.ChangeSrc{
+			Action: plans.Create,
+			After:  shadowVal,
+		},
+	})
+	planPath := testPlanFileMatchState(
+		t,
+		snap,
+		states.NewState(),
+		plan,
+		statemgr.SnapshotMeta{},
+	)
+
+	statePath := testTempFile(t)
+
+	p := applyFixtureProvider()
+	view, done := testView(t)
+	c := &ApplyCommand{
+		Meta: Meta{
+			testingOverrides: metaOverridesForProvider(p),
+			View:             view,
+		},
+	}
+
+	t.Setenv("TF_VAR_shadow", "unique")
+
+	args := []string{
+		"-state", statePath,
+		"-no-color",
+		planPath,
+	}
+	code := c.Run(args)
+	output := done(t)
+	if code != 0 {
+		t.Fatal("unexpected failure: ", output.All())
+	}
+
+	out := output.Stdout()
+
+	expectedWarn := "Warning: Ignoring variable when applying a saved plan\n"
+	if !strings.Contains(out, expectedWarn) {
+		t.Fatalf("expected warning in output, given: %q", out)
+	}
+
+	if !strings.Contains(out, "(sensitive value)") {
+		t.Error("should have elided sensitive value")
+	}
+
+	if strings.Contains(out, "noot") {
+		t.Error("should have elided sensitive input, but contained value")
+	}
+
+	if strings.Contains(out, "unique") {
+		t.Error("should have elided sensitive input, but contained value")
+	}
+}
+
 // A saved plan includes a list of "apply-time variables", i.e. ephemeral
 // input variables that were set during the plan, and must therefore be set
 // during apply. No other variables may be set during apply.
diff --git a/internal/command/testdata/apply-sensitive-variable/main.tf b/internal/command/testdata/apply-sensitive-variable/main.tf
new file mode 100644
index 0000000000..566ff97928
--- /dev/null
+++ b/internal/command/testdata/apply-sensitive-variable/main.tf
@@ -0,0 +1,9 @@
+variable "shadow" {
+  type = string
+  sensitive = true
+}
+
+output "foo" {
+  value = var.shadow
+  sensitive = true
+}