diff --git a/command/init.go b/command/init.go
index 03e7df9ca9..d2fd632057 100644
--- a/command/init.go
+++ b/command/init.go
@@ -172,7 +172,7 @@ func (c *InitCommand) Run(args []string) int {
 					"[reset][bold]Upgrading modules...")))
 			} else {
 				c.Ui.Output(c.Colorize().Color(fmt.Sprintf(
-					"[reset][bold]Downloading modules...")))
+					"[reset][bold]Initializing modules...")))
 			}
 
 			if err := getModules(&c.Meta, path, getMode); err != nil {
diff --git a/config/module/registry.go b/config/module/registry.go
index bef8b33739..10209c4bfa 100644
--- a/config/module/registry.go
+++ b/config/module/registry.go
@@ -123,6 +123,12 @@ func (s *Storage) lookupModuleVersions(module *regsrc.Module) (*response.ModuleV
 		return nil, err
 	}
 
+	for _, mod := range versions.Modules {
+		for _, v := range mod.Versions {
+			log.Printf("[DEBUG] found available version %q for %s", v.Version, mod.Source)
+		}
+	}
+
 	return &versions, nil
 }
 
diff --git a/config/module/storage.go b/config/module/storage.go
index 730376c62e..381650ea84 100644
--- a/config/module/storage.go
+++ b/config/module/storage.go
@@ -160,6 +160,7 @@ func (s Storage) moduleVersions(source string) ([]moduleRecord, error) {
 
 	for _, m := range manifest.Modules {
 		if m.Source == source && m.Version != "" {
+			log.Printf("[DEBUG] found local version %q for module %s", m.Version, m.Source)
 			matching = append(matching, m)
 		}
 	}
@@ -207,18 +208,19 @@ func (s Storage) recordModuleRoot(dir, root string) error {
 	return s.recordModule(rec)
 }
 
+func (s Storage) output(msg string) {
+	if s.Ui == nil || s.Mode == GetModeNone {
+		return
+	}
+	s.Ui.Output(msg)
+}
+
 func (s Storage) getStorage(key string, src string) (string, bool, error) {
 	storage := &getter.FolderStorage{
 		StorageDir: s.StorageDir,
 	}
 
-	if s.Ui != nil {
-		update := ""
-		if s.Mode == GetModeUpdate {
-			update = " (update)"
-		}
-		s.Ui.Output(fmt.Sprintf("Get: %s%s", src, update))
-	}
+	log.Printf("[DEBUG] fetching module from %s", src)
 
 	// Get the module with the level specified if we were told to.
 	if s.Mode > GetModeNone {
@@ -307,6 +309,7 @@ func (s Storage) findRegistryModule(mSource, constraint string) (moduleRecord, e
 	if err != nil {
 		log.Printf("[INFO] no matching version for %q<%s>, %s", mod.Module(), constraint, err)
 	}
+	log.Printf("[DEBUG] matched %q version %s for %s", mod, match.Version, constraint)
 
 	rec.Dir = match.Dir
 	rec.Version = match.Version
@@ -339,6 +342,9 @@ func (s Storage) findRegistryModule(mSource, constraint string) (moduleRecord, e
 		if err != nil {
 			return rec, err
 		}
+
+		s.output(fmt.Sprintf("  Found version %q of %s on %s", rec.Version, mod.Module(), mod.RawHost.Display()))
+
 	}
 	return rec, nil
 }
diff --git a/config/module/tree.go b/config/module/tree.go
index 8deaf2d254..30c39597b6 100644
--- a/config/module/tree.go
+++ b/config/module/tree.go
@@ -5,6 +5,7 @@ import (
 	"bytes"
 	"fmt"
 	"log"
+	"path"
 	"path/filepath"
 	"strings"
 	"sync"
@@ -207,12 +208,16 @@ func (t *Tree) getChildren(s *Storage) (map[string]*Tree, error) {
 		}
 
 		// Determine the path to this child
-		path := make([]string, len(t.path), len(t.path)+1)
-		copy(path, t.path)
-		path = append(path, m.Name)
+		modPath := make([]string, len(t.path), len(t.path)+1)
+		copy(modPath, t.path)
+		modPath = append(modPath, m.Name)
 
 		log.Printf("[TRACE] module source: %q", m.Source)
 
+		// add the module path to help indicate where modules with relative
+		// paths are being loaded from
+		s.output(fmt.Sprintf("- Module %q", path.Join(modPath...)))
+
 		// Lookup the local location of the module.
 		// dir is the local directory where the module is stored
 		mod, err := s.findRegistryModule(m.Source, m.Version)
@@ -236,7 +241,7 @@ func (t *Tree) getChildren(s *Storage) (map[string]*Tree, error) {
 			}
 		}
 
-		if mod.Dir != "" {
+		if mod.Dir != "" && s.Mode != GetModeUpdate {
 			// We found it locally, but in order to load the Tree we need to
 			// find out if there was another subDir stored from detection.
 			subDir, err := s.getModuleRoot(mod.Dir)
@@ -245,20 +250,20 @@ func (t *Tree) getChildren(s *Storage) (map[string]*Tree, error) {
 				// recordSubdir method fix it up.  Any other filesystem errors
 				// will turn up again below.
 				log.Println("[WARN] error reading subdir record:", err)
-			} else {
-				fullDir := filepath.Join(mod.Dir, subDir)
+			}
 
-				child, err := NewTreeModule(m.Name, fullDir)
-				if err != nil {
-					return nil, fmt.Errorf("module %s: %s", m.Name, err)
-				}
-				child.path = path
-				child.parent = t
-				child.version = mod.Version
-				child.source = m.Source
-				children[m.Name] = child
-				continue
+			fullDir := filepath.Join(mod.Dir, subDir)
+
+			child, err := NewTreeModule(m.Name, fullDir)
+			if err != nil {
+				return nil, fmt.Errorf("module %s: %s", m.Name, err)
 			}
+			child.path = modPath
+			child.parent = t
+			child.version = mod.Version
+			child.source = m.Source
+			children[m.Name] = child
+			continue
 		}
 
 		// Split out the subdir if we have one.
@@ -286,6 +291,9 @@ func (t *Tree) getChildren(s *Storage) (map[string]*Tree, error) {
 			subDir = filepath.Join(detectedSubDir, subDir)
 		}
 
+		output := fmt.Sprintf("  Getting source %q", m.Source)
+		s.output(output)
+
 		dir, ok, err := s.getStorage(key, source)
 		if err != nil {
 			return nil, err
@@ -325,7 +333,7 @@ func (t *Tree) getChildren(s *Storage) (map[string]*Tree, error) {
 		if err != nil {
 			return nil, fmt.Errorf("module %s: %s", m.Name, err)
 		}
-		child.path = path
+		child.path = modPath
 		child.parent = t
 		child.version = mod.Version
 		child.source = m.Source