diff --git a/internal/stacks/stackaddrs/removed.go b/internal/stacks/stackaddrs/removed.go
new file mode 100644
index 0000000000..d71da104df
--- /dev/null
+++ b/internal/stacks/stackaddrs/removed.go
@@ -0,0 +1,137 @@
+// Copyright (c) HashiCorp, Inc.
+// SPDX-License-Identifier: BUSL-1.1
+
+package stackaddrs
+
+import (
+	"github.com/hashicorp/hcl/v2"
+	"github.com/hashicorp/hcl/v2/hclsyntax"
+
+	"github.com/hashicorp/terraform/internal/tfdiags"
+)
+
+// ParseRemovedFrom parses the "from" attribute of a "removed" block in a
+// configuration and returns the address of the configuration object being
+// removed.
+//
+// In addition to the address, this function also returns a traversal that
+// represents the unparsed index within the from expression. Users can
+// optionally specify a specific index of a component to target.
+func ParseRemovedFrom(expr hcl.Expression) (Component, hcl.Expression, tfdiags.Diagnostics) {
+	var component Component
+	var diags tfdiags.Diagnostics
+
+	traversal, index, hclDiags := exprToComponentTraversal(expr)
+	diags = diags.Append(hclDiags)
+	if hclDiags.HasErrors() {
+		return component, index, diags
+	}
+
+	if len(traversal) < 2 {
+		return component, index, diags.Append(&hcl.Diagnostic{
+			Severity: hcl.DiagError,
+			Summary:  "Invalid 'from' attribute",
+			Detail:   "The 'from' attribute must designate a component that has been removed, in the form `component.component_name` or `component.component_name[\"key\"].",
+			Subject:  expr.Range().Ptr(),
+		})
+	}
+
+	root, ok := traversal[0].(hcl.TraverseRoot)
+	if !ok || root.Name != "component" {
+		return component, index, diags.Append(&hcl.Diagnostic{
+			Severity: hcl.DiagError,
+			Summary:  "Invalid 'from' attribute",
+			Detail:   "The 'from' attribute must designate a component that has been removed, in the form `component.component_name` or `component.component_name[\"key\"].",
+			Subject:  expr.Range().Ptr(),
+		})
+	}
+
+	name, ok := traversal[1].(hcl.TraverseAttr)
+	if !ok {
+		return component, index, diags.Append(&hcl.Diagnostic{
+			Severity: hcl.DiagError,
+			Summary:  "Invalid 'from' attribute",
+			Detail:   "The 'from' attribute must designate a component that has been removed, in the form `component.component_name` or `component.component_name[\"key\"].",
+			Subject:  expr.Range().Ptr(),
+		})
+	}
+	component.Name = name.Name
+
+	return component, index, diags
+}
+
+// exprToComponentTraversal converts an HCL expression into a traversal that
+// represents the component being targeted. We have to handle parsing this
+// ourselves because removed block from arguments can contain index expressions
+// which are not supported by hcl.AbsTraversalForExpr.
+func exprToComponentTraversal(expr hcl.Expression) (hcl.Traversal, hcl.Expression, hcl.Diagnostics) {
+	var diags hcl.Diagnostics
+
+	switch e := expr.(type) {
+	case *hclsyntax.IndexExpr:
+		t, d := hcl.AbsTraversalForExpr(e.Collection)
+		diags = diags.Extend(d)
+		if d.HasErrors() {
+			return nil, nil, diags
+		}
+		return t, e.Key, diags
+	case *hclsyntax.RelativeTraversalExpr:
+
+		// This is an expression of the form `component.component_name[each.key].attribute`.
+		// This is invalid at the moment, as we only support direct component
+		// references. We'll return our own diagnostic here.
+
+		return nil, nil, diags.Append(&hcl.Diagnostic{
+			Severity: hcl.DiagError,
+			Summary:  "Invalid 'from' attribute",
+			Detail:   "The 'from' attribute must designate a component that has been removed, in the form `component.component_name` or `component.component_name[\"key\"].",
+			Subject:  expr.Range().Ptr(),
+		})
+
+	default:
+
+		// For anything else, just rely on the default traversal logic.
+
+		t, d := hcl.AbsTraversalForExpr(expr)
+		diags = diags.Extend(d)
+		if d.HasErrors() {
+			return nil, nil, diags
+		}
+
+		if len(t) < 2 {
+			return nil, nil, diags.Append(&hcl.Diagnostic{
+				Severity: hcl.DiagError,
+				Summary:  "Invalid 'from' attribute",
+				Detail:   "The 'from' attribute must designate a component that has been removed, in the form `component.component_name` or `component.component_name[\"key\"].",
+				Subject:  expr.Range().Ptr(),
+			})
+		}
+
+		// For now, removed blocks only support direct component references.
+		// ie. you can't target a resource within a component, the next check
+		// ensures this is true.
+
+		if len(t) > 3 {
+			return nil, nil, diags.Append(&hcl.Diagnostic{
+				Severity: hcl.DiagError,
+				Summary:  "Invalid 'from' attribute",
+				Detail:   "The 'from' attribute must designate a component that has been removed, in the form `component.component_name` or `component.component_name[\"key\"].",
+				Subject:  expr.Range().Ptr(),
+			})
+		}
+
+		if len(t) == 2 {
+			return t, nil, diags
+		}
+
+		if index, ok := t[2].(hcl.TraverseIndex); ok {
+			return t[:2], hcl.StaticExpr(index.Key, index.SrcRange), diags
+		}
+
+		return nil, nil, diags.Append(&hcl.Diagnostic{
+			Severity: hcl.DiagError,
+			Summary:  "Invalid 'from' attribute",
+			Detail:   "The 'from' attribute must designate a component that has been removed, in the form `component.component_name` or `component.component_name[\"key\"].",
+		})
+	}
+}
diff --git a/internal/stacks/stackaddrs/removed_test.go b/internal/stacks/stackaddrs/removed_test.go
new file mode 100644
index 0000000000..f000a54196
--- /dev/null
+++ b/internal/stacks/stackaddrs/removed_test.go
@@ -0,0 +1,270 @@
+// Copyright (c) HashiCorp, Inc.
+// SPDX-License-Identifier: BUSL-1.1
+
+package stackaddrs
+
+import (
+	"testing"
+
+	"github.com/google/go-cmp/cmp"
+	"github.com/hashicorp/hcl/v2"
+	"github.com/hashicorp/hcl/v2/hclsyntax"
+	"github.com/zclconf/go-cty-debug/ctydebug"
+	"github.com/zclconf/go-cty/cty"
+
+	"github.com/hashicorp/terraform/internal/tfdiags"
+)
+
+func TestParseRemovedFrom(t *testing.T) {
+
+	mustExpr := func(t *testing.T, expr string) hcl.Expression {
+		ret, diags := hclsyntax.ParseExpression([]byte(expr), "", hcl.InitialPos)
+		if diags.HasErrors() {
+			t.Fatal(diags.Error())
+		}
+		return ret
+	}
+
+	tcs := []struct {
+		from      string
+		component Component
+		index     cty.Value
+		vars      map[string]cty.Value
+		diags     func() tfdiags.Diagnostics
+	}{
+		{
+			from: "component.component_name",
+			component: Component{
+				Name: "component_name",
+			},
+		},
+		{
+			from: "component.component_name[0]",
+			component: Component{
+				Name: "component_name",
+			},
+			index: cty.NumberIntVal(0),
+		},
+		{
+			from: "component.component_name[\"key\"]",
+			component: Component{
+				Name: "component_name",
+			},
+			index: cty.StringVal("key"),
+		},
+		{
+			from: "component.component_name[each.key]",
+			component: Component{
+				Name: "component_name",
+			},
+			index: cty.StringVal("key"),
+			vars: map[string]cty.Value{
+				"each": cty.ObjectVal(map[string]cty.Value{
+					"key": cty.StringVal("key"),
+				}),
+			},
+		},
+		{
+			from: "component.component_name[each.value.attribute]",
+			component: Component{
+				Name: "component_name",
+			},
+			index: cty.StringVal("attribute"),
+			vars: map[string]cty.Value{
+				"each": cty.ObjectVal(map[string]cty.Value{
+					"value": cty.ObjectVal(map[string]cty.Value{
+						"attribute": cty.StringVal("attribute"),
+					}),
+				}),
+			},
+		},
+		{
+			from: "component.component_name[each.value[\"key\"]]",
+			component: Component{
+				Name: "component_name",
+			},
+			index: cty.StringVal("key"),
+			vars: map[string]cty.Value{
+				"each": cty.ObjectVal(map[string]cty.Value{
+					"value": cty.MapVal(map[string]cty.Value{
+						"key": cty.StringVal("key"),
+					}),
+				}),
+			},
+		},
+		{
+			from: "component.component_name[each.value[\"key\"].attribute]",
+			component: Component{
+				Name: "component_name",
+			},
+			index: cty.StringVal("attribute"),
+			vars: map[string]cty.Value{
+				"each": cty.ObjectVal(map[string]cty.Value{
+					"value": cty.MapVal(map[string]cty.Value{
+						"key": cty.ObjectVal(map[string]cty.Value{
+							"attribute": cty.StringVal("attribute"),
+						}),
+					}),
+				}),
+			},
+		},
+		{
+			from: "component.component_name[each.value[local.key]]",
+			component: Component{
+				Name: "component_name",
+			},
+			index: cty.StringVal("key"),
+			vars: map[string]cty.Value{
+				"each": cty.ObjectVal(map[string]cty.Value{
+					"value": cty.MapVal(map[string]cty.Value{
+						"key": cty.StringVal("key"),
+					}),
+				}),
+				"local": cty.ObjectVal(map[string]cty.Value{
+					"key": cty.StringVal("key"),
+				}),
+			},
+		},
+		{
+			from: "component.component_name[each.value[local.key].attribute]",
+			component: Component{
+				Name: "component_name",
+			},
+			index: cty.StringVal("attribute"),
+			vars: map[string]cty.Value{
+				"each": cty.ObjectVal(map[string]cty.Value{
+					"value": cty.MapVal(map[string]cty.Value{
+						"key": cty.ObjectVal(map[string]cty.Value{
+							"attribute": cty.StringVal("attribute"),
+						}),
+					}),
+				}),
+				"local": cty.ObjectVal(map[string]cty.Value{
+					"key": cty.StringVal("key"),
+				}),
+			},
+		},
+		{
+			from: "component.component_name.attribute_key",
+			diags: func() tfdiags.Diagnostics {
+				var diags tfdiags.Diagnostics
+				diags = diags.Append(&hcl.Diagnostic{
+					Severity: hcl.DiagError,
+					Summary:  "Invalid 'from' attribute",
+					Detail:   "The 'from' attribute must designate a component that has been removed, in the form `component.component_name` or `component.component_name[\"key\"].",
+				})
+				return diags
+			},
+		},
+		{
+			from: "component.component_name[0].attribute_key",
+			diags: func() tfdiags.Diagnostics {
+				var diags tfdiags.Diagnostics
+				diags = diags.Append(&hcl.Diagnostic{
+					Severity: hcl.DiagError,
+					Summary:  "Invalid 'from' attribute",
+					Detail:   "The 'from' attribute must designate a component that has been removed, in the form `component.component_name` or `component.component_name[\"key\"].",
+				})
+				return diags
+			},
+		},
+		{
+			from: "component.component_name[\"key\"].attribute_key",
+			diags: func() tfdiags.Diagnostics {
+				var diags tfdiags.Diagnostics
+				diags = diags.Append(&hcl.Diagnostic{
+					Severity: hcl.DiagError,
+					Summary:  "Invalid 'from' attribute",
+					Detail:   "The 'from' attribute must designate a component that has been removed, in the form `component.component_name` or `component.component_name[\"key\"].",
+				})
+				return diags
+			},
+		},
+		{
+			from: "component.component_name[each.key].attribute_key",
+			diags: func() tfdiags.Diagnostics {
+				var diags tfdiags.Diagnostics
+				diags = diags.Append(&hcl.Diagnostic{
+					Severity: hcl.DiagError,
+					Summary:  "Invalid 'from' attribute",
+					Detail:   "The 'from' attribute must designate a component that has been removed, in the form `component.component_name` or `component.component_name[\"key\"].",
+				})
+				return diags
+			},
+		},
+		{
+			from: "component.component_name.attribute_key[0]",
+			diags: func() tfdiags.Diagnostics {
+				var diags tfdiags.Diagnostics
+				diags = diags.Append(&hcl.Diagnostic{
+					Severity: hcl.DiagError,
+					Summary:  "Invalid 'from' attribute",
+					Detail:   "The 'from' attribute must designate a component that has been removed, in the form `component.component_name` or `component.component_name[\"key\"].",
+				})
+				return diags
+			},
+		},
+		{
+			from: "component[0].component_name",
+			diags: func() tfdiags.Diagnostics {
+				var diags tfdiags.Diagnostics
+				diags = diags.Append(&hcl.Diagnostic{
+					Severity: hcl.DiagError,
+					Summary:  "Invalid 'from' attribute",
+					Detail:   "The 'from' attribute must designate a component that has been removed, in the form `component.component_name` or `component.component_name[\"key\"].",
+				})
+				return diags
+			},
+		},
+	}
+
+	for _, tc := range tcs {
+		t.Run(tc.from, func(t *testing.T) {
+			expr := mustExpr(t, tc.from)
+			component, index, gotDiags := ParseRemovedFrom(expr)
+
+			// validate the component first
+			if diff := cmp.Diff(tc.component, component); len(diff) > 0 {
+				t.Errorf("unexpected result\n%s", diff)
+			}
+
+			// validate the index
+			if index == nil {
+				if tc.index != cty.NilVal {
+					t.Errorf("expected index but got nil")
+				}
+			} else {
+				gotIndex, indexDiags := index.Value(&hcl.EvalContext{
+					Variables: tc.vars,
+				})
+				if len(indexDiags) > 0 {
+					t.Errorf("unexpected index diagnostics: %s", indexDiags.Error())
+				}
+				if diff := cmp.Diff(tc.index, gotIndex, ctydebug.CmpOptions); len(diff) > 0 {
+					t.Errorf("unexpected index\n%s", diff)
+				}
+			}
+
+			// validate the diagnostics
+
+			var wantDiags tfdiags.Diagnostics
+			if tc.diags != nil {
+				wantDiags = tc.diags()
+			}
+			if len(gotDiags) != len(wantDiags) {
+				t.Errorf("wrong number of diagnostics")
+			}
+			for ix, got := range gotDiags {
+				want := wantDiags[ix]
+
+				if want.Severity() != got.Severity() {
+					t.Errorf("unexpected severity: got %s, want %s", got.Severity(), want.Severity())
+				}
+				if diff := cmp.Diff(want.Description(), got.Description()); len(diff) > 0 {
+					t.Errorf("unexpected description\n%s", diff)
+				}
+			}
+		})
+	}
+
+}
diff --git a/internal/stacks/stackconfig/component.go b/internal/stacks/stackconfig/component.go
index 52274d503a..dc2bba7e3d 100644
--- a/internal/stacks/stackconfig/component.go
+++ b/internal/stacks/stackconfig/component.go
@@ -128,81 +128,9 @@ func decodeComponentBlock(block *hcl.Block) (*Component, tfdiags.Diagnostics) {
 		ret.Inputs = attr.Expr
 	}
 	if attr, ok := content.Attributes["providers"]; ok {
-		// This particular argument has some enforced static structure because
-		// it's populating an inflexible part of Terraform Core's input.
-		// This argument, if present, must always be an object constructor
-		// whose attributes are Terraform Core-style provider configuration
-		// addresses, but whose values are just arbitrary expressions for now
-		// and will be resolved into specific provider configuration addresses
-		// dynamically at runtime.
-		pairs, hclDiags := hcl.ExprMap(attr.Expr)
-		diags = diags.Append(hclDiags)
-		if !hclDiags.HasErrors() {
-			ret.ProviderConfigs = make(map[addrs.LocalProviderConfig]hcl.Expression, len(pairs))
-			for _, pair := range pairs {
-				insideAddrExpr := pair.Key
-				outsideAddrExpr := pair.Value
-
-				traversal, hclDiags := hcl.AbsTraversalForExpr(insideAddrExpr)
-				diags = diags.Append(hclDiags)
-				if hclDiags.HasErrors() {
-					continue
-				}
-
-				if len(traversal) < 1 || len(traversal) > 2 {
-					diags = diags.Append(&hcl.Diagnostic{
-						Severity: hcl.DiagError,
-						Summary:  "Invalid provider configuration reference",
-						Detail:   "Each item in the providers argument requires a provider local name, optionally followed by a period and then a configuration alias, matching one of the provider configuration import slots declared by the component's root module.",
-						Subject:  insideAddrExpr.Range().Ptr(),
-					})
-					continue
-				}
-
-				localName := traversal.RootName()
-				if !hclsyntax.ValidIdentifier(localName) {
-					diags = diags.Append(invalidNameDiagnostic(
-						"Invalid provider local name",
-						traversal[0].SourceRange(),
-					))
-					continue
-				}
-
-				var alias string
-				if len(traversal) > 1 {
-					aliasStep, ok := traversal[1].(hcl.TraverseAttr)
-					if !ok {
-						diags = diags.Append(&hcl.Diagnostic{
-							Severity: hcl.DiagError,
-							Summary:  "Invalid provider configuration reference",
-							Detail:   "Provider local name must either stand alone or be followed by a period and then a configuration alias.",
-							Subject:  traversal[1].SourceRange().Ptr(),
-						})
-						continue
-					}
-					alias = aliasStep.Name
-				}
-
-				addr := addrs.LocalProviderConfig{
-					LocalName: localName,
-					Alias:     alias,
-				}
-				if existing, exists := ret.ProviderConfigs[addr]; exists {
-					diags = diags.Append(&hcl.Diagnostic{
-						Severity: hcl.DiagError,
-						Summary:  "Duplicate provider configuration assignment",
-						Detail: fmt.Sprintf(
-							"A provider configuration for %s was already assigned at %s.",
-							addr.StringCompact(), existing.Range().Ptr(),
-						),
-						Subject: outsideAddrExpr.Range().Ptr(),
-					})
-					continue
-				} else {
-					ret.ProviderConfigs[addr] = outsideAddrExpr
-				}
-			}
-		}
+		var providerDiags tfdiags.Diagnostics
+		ret.ProviderConfigs, providerDiags = decodeProvidersAttribute(attr)
+		diags = diags.Append(providerDiags)
 	}
 	if attr, exists := content.Attributes["depends_on"]; exists {
 		ret.DependsOn, hclDiags = configs.DecodeDependsOn(attr)
@@ -281,6 +209,90 @@ func decodeSourceAddrArguments(sourceAttr, versionAttr *hcl.Attribute) (sourcead
 	return sourceAddr, versionConstraints, diags
 }
 
+func decodeProvidersAttribute(attr *hcl.Attribute) (map[addrs.LocalProviderConfig]hcl.Expression, tfdiags.Diagnostics) {
+	var diags tfdiags.Diagnostics
+
+	// This particular argument has some enforced static structure because
+	// it's populating an inflexible part of Terraform Core's input.
+	// This argument, if present, must always be an object constructor
+	// whose attributes are Terraform Core-style provider configuration
+	// addresses, but whose values are just arbitrary expressions for now
+	// and will be resolved into specific provider configuration addresses
+	// dynamically at runtime.
+	pairs, hclDiags := hcl.ExprMap(attr.Expr)
+	diags = diags.Append(hclDiags)
+	if hclDiags.HasErrors() {
+		return nil, diags
+	}
+
+	ret := map[addrs.LocalProviderConfig]hcl.Expression{}
+	for _, pair := range pairs {
+		insideAddrExpr := pair.Key
+		outsideAddrExpr := pair.Value
+
+		traversal, hclDiags := hcl.AbsTraversalForExpr(insideAddrExpr)
+		diags = diags.Append(hclDiags)
+		if hclDiags.HasErrors() {
+			continue
+		}
+
+		if len(traversal) < 1 || len(traversal) > 2 {
+			diags = diags.Append(&hcl.Diagnostic{
+				Severity: hcl.DiagError,
+				Summary:  "Invalid provider configuration reference",
+				Detail:   "Each item in the providers argument requires a provider local name, optionally followed by a period and then a configuration alias, matching one of the provider configuration import slots declared by the component's root module.",
+				Subject:  insideAddrExpr.Range().Ptr(),
+			})
+			continue
+		}
+
+		localName := traversal.RootName()
+		if !hclsyntax.ValidIdentifier(localName) {
+			diags = diags.Append(invalidNameDiagnostic(
+				"Invalid provider local name",
+				traversal[0].SourceRange(),
+			))
+			continue
+		}
+
+		var alias string
+		if len(traversal) > 1 {
+			aliasStep, ok := traversal[1].(hcl.TraverseAttr)
+			if !ok {
+				diags = diags.Append(&hcl.Diagnostic{
+					Severity: hcl.DiagError,
+					Summary:  "Invalid provider configuration reference",
+					Detail:   "Provider local name must either stand alone or be followed by a period and then a configuration alias.",
+					Subject:  traversal[1].SourceRange().Ptr(),
+				})
+				continue
+			}
+			alias = aliasStep.Name
+		}
+
+		addr := addrs.LocalProviderConfig{
+			LocalName: localName,
+			Alias:     alias,
+		}
+		if existing, exists := ret[addr]; exists {
+			diags = diags.Append(&hcl.Diagnostic{
+				Severity: hcl.DiagError,
+				Summary:  "Duplicate provider configuration assignment",
+				Detail: fmt.Sprintf(
+					"A provider configuration for %s was already assigned at %s.",
+					addr.StringCompact(), existing.Range().Ptr(),
+				),
+				Subject: outsideAddrExpr.Range().Ptr(),
+			})
+			continue
+		} else {
+			ret[addr] = outsideAddrExpr
+		}
+	}
+
+	return ret, diags
+}
+
 var componentBlockSchema = &hcl.BodySchema{
 	Attributes: []hcl.AttributeSchema{
 		{Name: "source", Required: true},
diff --git a/internal/stacks/stackconfig/config.go b/internal/stacks/stackconfig/config.go
index 402895a21f..dfd33d21d3 100644
--- a/internal/stacks/stackconfig/config.go
+++ b/internal/stacks/stackconfig/config.go
@@ -12,11 +12,12 @@ import (
 	"github.com/hashicorp/go-slug/sourceaddrs"
 	"github.com/hashicorp/go-slug/sourcebundle"
 	"github.com/hashicorp/hcl/v2"
+	"github.com/zclconf/go-cty/cty"
+
 	"github.com/hashicorp/terraform/internal/addrs"
 	"github.com/hashicorp/terraform/internal/stacks/stackconfig/stackconfigtypes"
 	"github.com/hashicorp/terraform/internal/stacks/stackconfig/typeexpr"
 	"github.com/hashicorp/terraform/internal/tfdiags"
-	"github.com/zclconf/go-cty/cty"
 )
 
 // maxEmbeddedStackNesting is an arbitrary, hopefully-reasonable limit on
@@ -190,6 +191,24 @@ func loadConfigDir(sourceAddr sourceaddrs.FinalSource, sources *sourcebundle.Bun
 		cmpn.FinalSourceAddr = effectiveSourceAddr
 	}
 
+	for _, rmvd := range stack.Removed {
+		effectiveSourceAddr, err := resolveFinalSourceAddr(sourceAddr, rmvd.SourceAddr, rmvd.VersionConstraints, sources)
+		if err != nil {
+			diags = diags.Append(&hcl.Diagnostic{
+				Severity: hcl.DiagError,
+				Summary:  "Invalid source address",
+				Detail: fmt.Sprintf(
+					"Cannot use %q as a source address here: %s.",
+					rmvd.SourceAddr, err,
+				),
+				Subject: rmvd.SourceAddrRange.ToHCL().Ptr(),
+			})
+			continue
+		}
+
+		rmvd.FinalSourceAddr = effectiveSourceAddr
+	}
+
 	return ret, diags
 }
 
diff --git a/internal/stacks/stackconfig/config_test.go b/internal/stacks/stackconfig/config_test.go
index 02a2957fc5..e21a4105e4 100644
--- a/internal/stacks/stackconfig/config_test.go
+++ b/internal/stacks/stackconfig/config_test.go
@@ -4,13 +4,73 @@
 package stackconfig
 
 import (
+	"sort"
 	"testing"
 
 	"github.com/hashicorp/go-slug/sourceaddrs"
 	"github.com/hashicorp/go-slug/sourcebundle"
 	"github.com/zclconf/go-cty/cty"
+
+	"github.com/hashicorp/terraform/internal/tfdiags"
 )
 
+func TestLoadConfigDirErrors(t *testing.T) {
+	bundle, err := sourcebundle.OpenDir("testdata/basics-bundle")
+	if err != nil {
+		t.Fatal(err)
+	}
+
+	rootAddr := sourceaddrs.MustParseSource("git::https://example.com/errored.git").(sourceaddrs.RemoteSource)
+	_, gotDiags := LoadConfigDir(rootAddr, bundle)
+
+	sort.SliceStable(gotDiags, func(i, j int) bool {
+		if gotDiags[i].Severity() != gotDiags[j].Severity() {
+			return gotDiags[i].Severity() < gotDiags[j].Severity()
+		}
+
+		if gotDiags[i].Description().Summary != gotDiags[j].Description().Summary {
+			return gotDiags[i].Description().Summary < gotDiags[j].Description().Summary
+		}
+
+		return gotDiags[i].Description().Detail < gotDiags[j].Description().Detail
+	})
+
+	wantDiags := tfdiags.Diagnostics{
+		tfdiags.Sourceless(tfdiags.Error, "Component exists for removed block", "A removed block for component \"a\" was declared without an index, but a component block with the same name was declared at git::https://example.com/errored.git//main.tfstack.hcl:10,1-14.\n\nA removed block without an index indicates that the component and all instances were removed from the configuration, and this is not the case."),
+	}
+
+	count := len(wantDiags)
+	if len(gotDiags) > count {
+		count = len(gotDiags)
+	}
+
+	for i := 0; i < count; i++ {
+		if i >= len(wantDiags) {
+			t.Errorf("unexpected diagnostic:\n%s", gotDiags[i])
+			continue
+		}
+
+		if i >= len(gotDiags) {
+			t.Errorf("missing diagnostic:\n%s", wantDiags[i])
+			continue
+		}
+
+		got, want := gotDiags[i], wantDiags[i]
+
+		if got, want := got.Severity(), want.Severity(); got != want {
+			t.Errorf("diagnostics[%d] severity\ngot:  %s\nwant: %s", i, got, want)
+		}
+
+		if got, want := got.Description().Summary, want.Description().Summary; got != want {
+			t.Errorf("diagnostics[%d] summary\ngot:  %s\nwant: %s", i, got, want)
+		}
+
+		if got, want := got.Description().Detail, want.Description().Detail; got != want {
+			t.Errorf("diagnostics[%d] detail\ngot:  %s\nwant: %s", i, got, want)
+		}
+	}
+}
+
 func TestLoadConfigDirBasics(t *testing.T) {
 	bundle, err := sourcebundle.OpenDir("testdata/basics-bundle")
 	if err != nil {
diff --git a/internal/stacks/stackconfig/declarations.go b/internal/stacks/stackconfig/declarations.go
index f0222618cf..13167f9bfe 100644
--- a/internal/stacks/stackconfig/declarations.go
+++ b/internal/stacks/stackconfig/declarations.go
@@ -7,6 +7,7 @@ import (
 	"fmt"
 
 	"github.com/hashicorp/hcl/v2"
+
 	"github.com/hashicorp/terraform/internal/addrs"
 	"github.com/hashicorp/terraform/internal/tfdiags"
 )
@@ -43,6 +44,10 @@ type Declarations struct {
 	// particular stack configuration. Other stack configurations in the
 	// overall tree might have their own provider configurations.
 	ProviderConfigs map[addrs.LocalProviderConfig]*ProviderConfig
+
+	// Removed are the list of components that have been removed from the
+	// configuration.
+	Removed map[string]*Removed
 }
 
 func makeDeclarations() Declarations {
@@ -53,6 +58,7 @@ func makeDeclarations() Declarations {
 		LocalValues:     make(map[string]*LocalValue),
 		OutputValues:    make(map[string]*OutputValue),
 		ProviderConfigs: make(map[addrs.LocalProviderConfig]*ProviderConfig),
+		Removed:         make(map[string]*Removed),
 	}
 }
 
@@ -76,6 +82,26 @@ func (d *Declarations) addComponent(decl *Component) tfdiags.Diagnostics {
 		return diags
 	}
 
+	if removed, exists := d.Removed[name]; exists && removed.FromIndex == nil {
+		// If a component has been removed, we should not also find it in the
+		// configuration.
+		//
+		// If the removed block has an index, then it's possible that only a
+		// specific instance was removed and not the whole thing. This is okay
+		// at this point, and will be validated more later. See the addRemoved
+		// method for more information.
+		diags = diags.Append(&hcl.Diagnostic{
+			Severity: hcl.DiagError,
+			Summary:  "Component exists for removed block",
+			Detail: fmt.Sprintf(
+				"A removed block for component %q was declared without an index, but a component block with the same name was declared at %s.\n\nA removed block without an index indicates that the component and all instances were removed from the configuration, and this is not the case.",
+				name, decl.DeclRange.ToHCL(),
+			),
+			Subject: removed.DeclRange.ToHCL().Ptr(),
+		})
+		return diags
+	}
+
 	d.Components[name] = decl
 	return diags
 }
@@ -221,6 +247,58 @@ func (d *Declarations) addProviderConfig(decl *ProviderConfig) tfdiags.Diagnosti
 	return diags
 }
 
+func (d *Declarations) addRemoved(decl *Removed) tfdiags.Diagnostics {
+	var diags tfdiags.Diagnostics
+
+	if decl == nil {
+		return diags
+	}
+	name := decl.FromComponent.Name
+
+	// We're going to make sure that all the removed blocks that share the same
+	// FromComponent are consistent.
+	if existing, exists := d.Removed[name]; exists {
+		diags = diags.Append(&hcl.Diagnostic{
+			Severity: hcl.DiagError,
+			Summary:  "Duplicate removed block",
+			Detail: fmt.Sprintf(
+				"A removed block for component %q was already declared at %s.",
+				name, existing.DeclRange.ToHCL(),
+			),
+			Subject: decl.DeclRange.ToHCL().Ptr(),
+		})
+		return diags
+	}
+
+	if decl.FromIndex == nil {
+		// If the removed block does not have an index, then we shouldn't also
+		// have a component block with the same name. A removed block without
+		// an index indicates that the component and all instances were removed
+		// from the configuration.
+		//
+		// Note that a removed block with an index is allowed to coexist with a
+		// component block with the same name, because it indicates that only
+		// a specific instance was removed and not the whole thing. During the
+		// validate and planning stages we will validate that the clashing
+		// component and removed blocks are not both pointing to the same index.
+		if component, exists := d.Components[name]; exists {
+			diags = diags.Append(&hcl.Diagnostic{
+				Severity: hcl.DiagError,
+				Summary:  "Component exists for removed block",
+				Detail: fmt.Sprintf(
+					"A removed block for component %q was declared without an index, but a component block with the same name was declared at %s.\n\nA removed block without an index indicates that the component and all instances were removed from the configuration, and this is not the case.",
+					name, component.DeclRange.ToHCL(),
+				),
+				Subject: decl.DeclRange.ToHCL().Ptr(),
+			})
+			return diags
+		}
+	}
+
+	d.Removed[name] = decl
+	return diags
+}
+
 func (d *Declarations) merge(other *Declarations) tfdiags.Diagnostics {
 	var diags tfdiags.Diagnostics
 	for _, decl := range other.EmbeddedStacks {
@@ -256,5 +334,11 @@ func (d *Declarations) merge(other *Declarations) tfdiags.Diagnostics {
 			d.addProviderConfig(decl),
 		)
 	}
+	for _, decl := range other.Removed {
+		diags = diags.Append(
+			d.addRemoved(decl),
+		)
+	}
+
 	return diags
 }
diff --git a/internal/stacks/stackconfig/file.go b/internal/stacks/stackconfig/file.go
index e3e1d6f337..260d9323e4 100644
--- a/internal/stacks/stackconfig/file.go
+++ b/internal/stacks/stackconfig/file.go
@@ -11,6 +11,7 @@ import (
 	"github.com/hashicorp/hcl/v2"
 	"github.com/hashicorp/hcl/v2/hclsyntax"
 	hcljson "github.com/hashicorp/hcl/v2/json"
+
 	"github.com/hashicorp/terraform/internal/tfdiags"
 )
 
@@ -136,6 +137,13 @@ func DecodeFileBody(body hcl.Body, fileAddr sourceaddrs.FinalSource) (*File, tfd
 				ret.Declarations.addRequiredProviders(decl),
 			)
 
+		case "removed":
+			decl, moreDiags := decodeRemovedBlock(block)
+			diags = diags.Append(moreDiags)
+			diags = diags.Append(
+				ret.Declarations.addRemoved(decl),
+			)
+
 		default:
 			// Should not get here because the cases above should be exhaustive
 			// for everything declared in rootConfigSchema.
@@ -220,5 +228,6 @@ var rootConfigSchema = &hcl.BodySchema{
 		{Type: "output", LabelNames: []string{"name"}},
 		{Type: "provider", LabelNames: []string{"type", "name"}},
 		{Type: "required_providers"},
+		{Type: "removed"},
 	},
 }
diff --git a/internal/stacks/stackconfig/removed.go b/internal/stacks/stackconfig/removed.go
new file mode 100644
index 0000000000..b65f1f1d46
--- /dev/null
+++ b/internal/stacks/stackconfig/removed.go
@@ -0,0 +1,172 @@
+// Copyright (c) HashiCorp, Inc.
+// SPDX-License-Identifier: BUSL-1.1
+
+package stackconfig
+
+import (
+	"github.com/apparentlymart/go-versions/versions/constraints"
+	"github.com/hashicorp/go-slug/sourceaddrs"
+	"github.com/hashicorp/hcl/v2"
+	"github.com/hashicorp/hcl/v2/gohcl"
+
+	"github.com/hashicorp/terraform/internal/addrs"
+	"github.com/hashicorp/terraform/internal/stacks/stackaddrs"
+	"github.com/hashicorp/terraform/internal/tfdiags"
+)
+
+// Removed represents a component that was removed from the configuration.
+//
+// Removed blocks don't have labels associated with them, instead they have
+// a "from" attribute that points directly to the old component that was
+// removed. Removed blocks can also point to component instances specifically,
+// using an index expression. The "for_each" attribute also means that the
+// "from" attribute can't always be evaluated statically.
+//
+// Removed blocks are, therefore, represented by the FromComponent and FromIndex
+// fields, which together represent the address of the removed component. The
+// FromComponent field is the address of the component itself, and the FromIndex
+// field is the index expression that will be evaluated to determine the
+// specific instance of the component that was removed.
+//
+// FromIndex can be null if either the removed block is pointing to a component
+// that was not instanced, or is pointing to all the instances of a removed
+// component.
+//
+// For this reason, multiple Removed blocks can be associated with the same
+// FromComponent, but with different FromIndex values. When the FromIndex values
+// are evaluated, during the planning stage, we will validate that the FromIndex
+// values are unique.
+type Removed struct {
+	FromComponent stackaddrs.Component
+	FromIndex     hcl.Expression
+
+	SourceAddr                               sourceaddrs.Source
+	VersionConstraints                       constraints.IntersectionSpec
+	SourceAddrRange, VersionConstraintsRange tfdiags.SourceRange
+
+	// FinalSourceAddr is populated only when a configuration is loaded
+	// through [LoadConfigDir], and in that case contains the finalized
+	// address produced by resolving the SourceAddr field relative to
+	// the address of the file where the component was declared. This
+	// is the address to use if you intend to load the component's
+	// root module from a source bundle.
+	FinalSourceAddr sourceaddrs.FinalSource
+
+	ForEach hcl.Expression
+
+	// ProviderConfigs describes the mapping between the static provider
+	// configuration slots declared in the component's root module and the
+	// dynamic provider configuration objects in scope in the calling
+	// stack configuration.
+	//
+	// This map deals with the slight schism between the stacks language's
+	// treatment of provider configurations as regular values of a special
+	// data type vs. the main Terraform language's treatment of provider
+	// configurations as something special passed out of band from the
+	// input variables. The overall structure and the map keys are fixed
+	// statically during decoding, but the final provider configuration objects
+	// are determined only at runtime by normal expression evaluation.
+	//
+	// The keys of this map refer to provider configuration slots inside
+	// the module being called, but use the local names defined in the
+	// calling stack configuration. The stacks language runtime will
+	// translate the caller's local names into the callee's declared provider
+	// configurations by using the stack configuration's table of local
+	// provider names.
+	ProviderConfigs map[addrs.LocalProviderConfig]hcl.Expression
+
+	// Destroy controls whether this removed block will actually destroy all
+	// instances of resources within this component, or just removed them from
+	// the state. Defaults to true.
+	Destroy bool
+
+	DeclRange tfdiags.SourceRange
+}
+
+func decodeRemovedBlock(block *hcl.Block) (*Removed, tfdiags.Diagnostics) {
+	var diags tfdiags.Diagnostics
+	ret := &Removed{
+		DeclRange: tfdiags.SourceRangeFromHCL(block.DefRange),
+	}
+
+	content, hclDiags := block.Body.Content(removedBlockSchema)
+	diags = diags.Append(hclDiags)
+	if hclDiags.HasErrors() {
+		return nil, diags
+	}
+
+	// We're splitting out the component and the index now, as we can decode and
+	// analyse the component now. The index might be referencing the for_each
+	// variable, which we can't decode yet.
+	component, index, moreDiags := stackaddrs.ParseRemovedFrom(content.Attributes["from"].Expr)
+	diags = diags.Append(moreDiags)
+	if moreDiags.HasErrors() {
+		return nil, diags
+	}
+	ret.FromComponent = component
+	ret.FromIndex = index
+
+	sourceAddr, versionConstraints, moreDiags := decodeSourceAddrArguments(
+		content.Attributes["source"],
+		content.Attributes["version"],
+	)
+	diags = diags.Append(moreDiags)
+	if moreDiags.HasErrors() {
+		return nil, diags
+	}
+
+	ret.SourceAddr = sourceAddr
+	ret.VersionConstraints = versionConstraints
+	ret.SourceAddrRange = tfdiags.SourceRangeFromHCL(content.Attributes["source"].Range)
+	if content.Attributes["version"] != nil {
+		ret.VersionConstraintsRange = tfdiags.SourceRangeFromHCL(content.Attributes["version"].Range)
+	}
+	// Now that we've populated the mandatory source location fields we can
+	// safely return a partial ret if we encounter any further errors, as
+	// long as we leave the other fields either unset or in some other
+	// reasonable state for careful partial analysis.
+
+	if attr, ok := content.Attributes["for_each"]; ok {
+		ret.ForEach = attr.Expr
+	}
+	if attr, ok := content.Attributes["providers"]; ok {
+		var providerDiags tfdiags.Diagnostics
+		ret.ProviderConfigs, providerDiags = decodeProvidersAttribute(attr)
+		diags = diags.Append(providerDiags)
+	}
+
+	ret.Destroy = true // default to true
+	for _, block := range content.Blocks {
+		switch block.Type {
+		case "lifecycle":
+			lcContent, lcDiags := block.Body.Content(removedLifecycleBlockSchema)
+			diags = diags.Append(lcDiags)
+
+			if attr, ok := lcContent.Attributes["destroy"]; ok {
+				valDiags := gohcl.DecodeExpression(attr.Expr, nil, &ret.Destroy)
+				diags = diags.Append(valDiags)
+			}
+		}
+	}
+
+	return ret, diags
+}
+
+var removedBlockSchema = &hcl.BodySchema{
+	Blocks: []hcl.BlockHeaderSchema{
+		{Type: "lifecycle"},
+	},
+	Attributes: []hcl.AttributeSchema{
+		{Name: "from", Required: true},
+		{Name: "source", Required: true},
+		{Name: "version", Required: false},
+		{Name: "for_each", Required: false},
+		{Name: "providers", Required: false},
+	},
+}
+
+var removedLifecycleBlockSchema = &hcl.BodySchema{
+	Attributes: []hcl.AttributeSchema{
+		{Name: "destroy"},
+	},
+}
diff --git a/internal/stacks/stackconfig/testdata/basics-bundle/errored/main.tf b/internal/stacks/stackconfig/testdata/basics-bundle/errored/main.tf
new file mode 100644
index 0000000000..5ab385503e
--- /dev/null
+++ b/internal/stacks/stackconfig/testdata/basics-bundle/errored/main.tf
@@ -0,0 +1,17 @@
+variable "name" {
+  type = string
+}
+
+resource "null_resource" "example" {
+  triggers = {
+    name = var.name
+  }
+}
+
+output "greeting" {
+  value = "Hello, ${var.name}!"
+}
+
+output "resource_id" {
+  value = null_resource.example.id
+}
diff --git a/internal/stacks/stackconfig/testdata/basics-bundle/errored/main.tfstack.hcl b/internal/stacks/stackconfig/testdata/basics-bundle/errored/main.tfstack.hcl
new file mode 100644
index 0000000000..ea5e907f8a
--- /dev/null
+++ b/internal/stacks/stackconfig/testdata/basics-bundle/errored/main.tfstack.hcl
@@ -0,0 +1,32 @@
+required_providers {
+  null = {
+    source  = "hashicorp/null"
+    version = "3.2.1"
+  }
+}
+
+provider "null" "a" {}
+
+component "a" {
+  source = "./"
+
+  inputs = {
+      name = var.name
+  }
+
+  providers = {
+      null = provider.null.a
+  }
+}
+
+removed {
+  // This is invalid, you can't reference the whole component like this if
+  // the target component is still in the config.
+  from = component.a
+
+  source = "./"
+
+  providers = {
+    null = provider.null.a
+  }
+}
diff --git a/internal/stacks/stackconfig/testdata/basics-bundle/nested/subdir/main.tfstack.hcl b/internal/stacks/stackconfig/testdata/basics-bundle/nested/subdir/main.tfstack.hcl
index e008899b42..a4efeb44e2 100644
--- a/internal/stacks/stackconfig/testdata/basics-bundle/nested/subdir/main.tfstack.hcl
+++ b/internal/stacks/stackconfig/testdata/basics-bundle/nested/subdir/main.tfstack.hcl
@@ -24,6 +24,19 @@ component "a" {
   }
 }
 
+removed {
+  from = component.b
+
+  source = "../"
+  providers = {
+    null = var.provider
+  }
+
+  lifecycle {
+    destroy = true
+  }
+}
+
 output "greeting" {
   type  = string
   value = component.a.greeting
diff --git a/internal/stacks/stackconfig/testdata/basics-bundle/terraform-sources.json b/internal/stacks/stackconfig/testdata/basics-bundle/terraform-sources.json
index 46f747517c..b40f78defd 100644
--- a/internal/stacks/stackconfig/testdata/basics-bundle/terraform-sources.json
+++ b/internal/stacks/stackconfig/testdata/basics-bundle/terraform-sources.json
@@ -10,6 +10,11 @@
             "source": "git::https://example.com/nested.git",
             "local": "nested",
             "meta": {}
+        },
+        {
+            "source": "git::https://example.com/errored.git",
+            "local": "errored",
+            "meta": {}
         }
     ],
     "registry": [