diff --git a/internal/grpcwrap/provider.go b/internal/grpcwrap/provider.go
index 00e323b503..8c2f3b1eee 100644
--- a/internal/grpcwrap/provider.go
+++ b/internal/grpcwrap/provider.go
@@ -154,6 +154,7 @@ func (p *provider) ValidateResourceTypeConfig(_ context.Context, req *tfplugin5.
 		ClientCapabilities: providers.ClientCapabilities{
 			DeferralAllowed:            true,
 			WriteOnlyAttributesAllowed: true,
+			ComputedBlocksAllowed:      true,
 		},
 	})
 
@@ -867,6 +868,7 @@ func (p *provider) PlanAction(_ context.Context, req *tfplugin5.PlanAction_Reque
 		ClientCapabilities: providers.ClientCapabilities{
 			DeferralAllowed:            true,
 			WriteOnlyAttributesAllowed: true,
+			ComputedBlocksAllowed:      true,
 		},
 	})
 
@@ -899,6 +901,7 @@ func (p *provider) InvokeAction(req *tfplugin5.InvokeAction_Request, server tfpl
 		ClientCapabilities: providers.ClientCapabilities{
 			DeferralAllowed:            true,
 			WriteOnlyAttributesAllowed: true,
+			ComputedBlocksAllowed:      true,
 		},
 	})
 
diff --git a/internal/grpcwrap/provider6.go b/internal/grpcwrap/provider6.go
index c7ceab017b..4e97b3af7f 100644
--- a/internal/grpcwrap/provider6.go
+++ b/internal/grpcwrap/provider6.go
@@ -1196,6 +1196,7 @@ func (p *provider6) PlanAction(_ context.Context, req *tfplugin6.PlanAction_Requ
 		ClientCapabilities: providers.ClientCapabilities{
 			DeferralAllowed:            true,
 			WriteOnlyAttributesAllowed: true,
+			ComputedBlocksAllowed:      true,
 		},
 	})
 
@@ -1228,6 +1229,7 @@ func (p *provider6) InvokeAction(req *tfplugin6.InvokeAction_Request, server tfp
 		ClientCapabilities: providers.ClientCapabilities{
 			DeferralAllowed:            true,
 			WriteOnlyAttributesAllowed: true,
+			ComputedBlocksAllowed:      true,
 		},
 	})
 
diff --git a/internal/moduletest/graph/node_provider.go b/internal/moduletest/graph/node_provider.go
index 96a7945989..0bb56da6e5 100644
--- a/internal/moduletest/graph/node_provider.go
+++ b/internal/moduletest/graph/node_provider.go
@@ -108,6 +108,7 @@ func (n *NodeProviderConfigure) Execute(ctx *EvalContext) {
 		ClientCapabilities: providers.ClientCapabilities{
 			DeferralAllowed:            ctx.deferralAllowed,
 			WriteOnlyAttributesAllowed: true,
+			ComputedBlocksAllowed:      true,
 		},
 	})
 
diff --git a/internal/plugin6/grpc_provider.go b/internal/plugin6/grpc_provider.go
index 2b2c2f394c..bba74e2461 100644
--- a/internal/plugin6/grpc_provider.go
+++ b/internal/plugin6/grpc_provider.go
@@ -2073,6 +2073,7 @@ func clientCapabilitiesToProto(c providers.ClientCapabilities) *proto6.ClientCap
 		DeferralAllowed:            c.DeferralAllowed,
 		WriteOnlyAttributesAllowed: c.WriteOnlyAttributesAllowed,
 		StorePlannedPrivate:        c.StorePlannedPrivate,
+		ComputedBlocksAllowed:      c.ComputedBlocksAllowed,
 	}
 }
 
diff --git a/internal/providers/provider.go b/internal/providers/provider.go
index 011294ebfc..f127ab4a3e 100644
--- a/internal/providers/provider.go
+++ b/internal/providers/provider.go
@@ -312,6 +312,13 @@ type ClientCapabilities struct {
 	// returned from PlanResourceChange, and return it with the final
 	// PlanResourceChange call.
 	StorePlannedPrivate bool
+
+	// computed_blocks_allowed indicates that the client can handle optionally
+	// computed nested block values in resources. Because older versions of
+	// Terraform without this capability will ignore the computed flag in the
+	// schema, it is up to the provider to return an appropriate diagnostic when
+	// a resource requiring the computed behavior is used.
+	ComputedBlocksAllowed bool
 }
 
 type ValidateProviderConfigRequest struct {
diff --git a/internal/stacks/stackruntime/internal/stackeval/client_capabilities.go b/internal/stacks/stackruntime/internal/stackeval/client_capabilities.go
index eb39d3dfe9..781cde3907 100644
--- a/internal/stacks/stackruntime/internal/stackeval/client_capabilities.go
+++ b/internal/stacks/stackruntime/internal/stackeval/client_capabilities.go
@@ -11,5 +11,6 @@ func ClientCapabilities() providers.ClientCapabilities {
 	return providers.ClientCapabilities{
 		DeferralAllowed:            true,
 		WriteOnlyAttributesAllowed: true,
+		ComputedBlocksAllowed:      true,
 	}
 }
diff --git a/internal/terraform/context_plan_test.go b/internal/terraform/context_plan_test.go
index 22f715e5ce..6bd03d96a4 100644
--- a/internal/terraform/context_plan_test.go
+++ b/internal/terraform/context_plan_test.go
@@ -1749,6 +1749,7 @@ func TestContext2Plan_blockNestingGroup(t *testing.T) {
 			DeferralAllowed:            false,
 			WriteOnlyAttributesAllowed: true,
 			StorePlannedPrivate:        true,
+			ComputedBlocksAllowed:      true,
 		},
 	}
 	if !cmp.Equal(got, want, valueTrans) {
diff --git a/internal/terraform/eval_context_builtin.go b/internal/terraform/eval_context_builtin.go
index 09590c253b..7e50ee8d28 100644
--- a/internal/terraform/eval_context_builtin.go
+++ b/internal/terraform/eval_context_builtin.go
@@ -229,12 +229,9 @@ func (ctx *BuiltinEvalContext) ConfigureProvider(addr addrs.AbsProviderConfig, c
 	}
 
 	req := providers.ConfigureProviderRequest{
-		TerraformVersion: version.String(),
-		Config:           cfg,
-		ClientCapabilities: providers.ClientCapabilities{
-			DeferralAllowed:            ctx.Deferrals().DeferralAllowed(),
-			WriteOnlyAttributesAllowed: true,
-		},
+		TerraformVersion:   version.String(),
+		Config:             cfg,
+		ClientCapabilities: ctx.ClientCapabilities(),
 	}
 
 	resp := p.ConfigureProvider(req)
@@ -661,6 +658,7 @@ func (ctx *BuiltinEvalContext) ClientCapabilities() providers.ClientCapabilities
 		DeferralAllowed:            ctx.Deferrals().DeferralAllowed(),
 		WriteOnlyAttributesAllowed: true,
 		StorePlannedPrivate:        true,
+		ComputedBlocksAllowed:      true,
 	}
 }
 
diff --git a/internal/terraform/eval_context_mock.go b/internal/terraform/eval_context_mock.go
index e1b54ce439..9e3e7e1f0d 100644
--- a/internal/terraform/eval_context_mock.go
+++ b/internal/terraform/eval_context_mock.go
@@ -448,6 +448,8 @@ func (ctx *MockEvalContext) ClientCapabilities() providers.ClientCapabilities {
 	return providers.ClientCapabilities{
 		DeferralAllowed:            ctx.Deferrals().DeferralAllowed(),
 		WriteOnlyAttributesAllowed: true,
+		StorePlannedPrivate:        true,
+		ComputedBlocksAllowed:      true,
 	}
 }