diff --git a/terraform/context_validate_test.go b/terraform/context_validate_test.go
index 23eeab878d..48ff733717 100644
--- a/terraform/context_validate_test.go
+++ b/terraform/context_validate_test.go
@@ -650,6 +650,38 @@ func TestContext2Validate_providerConfig_good(t *testing.T) {
 	}
 }
 
+// In this test there is a mismatch between the provider's fqn (hashicorp/test)
+// and it's local name set in required_providers (arbitrary).
+func TestContext2Validate_requiredProviderConfig(t *testing.T) {
+	m := testModule(t, "validate-required-provider-config")
+	p := testProvider("aws")
+
+	p.GetSchemaReturn = &ProviderSchema{
+		Provider: &configschema.Block{
+			Attributes: map[string]*configschema.Attribute{
+				"required_attribute": {Type: cty.String, Required: true},
+			},
+		},
+		ResourceTypes: map[string]*configschema.Block{
+			"aws_instance": {
+				Attributes: map[string]*configschema.Attribute{},
+			},
+		},
+	}
+
+	c := testContext2(t, &ContextOpts{
+		Config: m,
+		Providers: map[addrs.Provider]providers.Factory{
+			addrs.NewDefaultProvider("aws"): testProviderFuncFixed(p),
+		},
+	})
+
+	diags := c.Validate()
+	if diags.HasErrors() {
+		t.Fatalf("unexpected error: %s", diags.Err())
+	}
+}
+
 func TestContext2Validate_provisionerConfig_bad(t *testing.T) {
 	m := testModule(t, "validate-bad-prov-conf")
 	p := testProvider("aws")
diff --git a/terraform/testdata/validate-required-provider-config/main.tf b/terraform/testdata/validate-required-provider-config/main.tf
new file mode 100644
index 0000000000..898a23fdf2
--- /dev/null
+++ b/terraform/testdata/validate-required-provider-config/main.tf
@@ -0,0 +1,20 @@
+# This test verifies that the provider local name, local config and fqn map
+# together properly when the local name does not match the type.
+
+terraform {
+  required_providers {
+    arbitrary = {
+      source = "hashicorp/aws"
+    }
+  }
+}
+
+# hashicorp/test has required provider config attributes. This "arbitrary"
+# provider configuration block should map to hashicorp/test.
+provider "arbitrary" {
+  required_attribute = "bloop"
+}
+
+resource "aws_instance" "test" {
+  provider = "arbitrary"
+}
diff --git a/terraform/transform_provider.go b/terraform/transform_provider.go
index fdfde61149..883c4f28fd 100644
--- a/terraform/transform_provider.go
+++ b/terraform/transform_provider.go
@@ -721,9 +721,12 @@ func (t *ProviderConfigTransformer) attachProviderConfigs(g *Graph) error {
 			continue
 		}
 
+		// Find the localName for the provider fqn
+		localName := mc.Module.LocalNameForProvider(addr.Provider)
+
 		// Go through the provider configs to find the matching config
 		for _, p := range mc.Module.ProviderConfigs {
-			if p.Name == addr.Provider.Type && p.Alias == addr.Alias {
+			if p.Name == localName && p.Alias == addr.Alias {
 				log.Printf("[TRACE] ProviderConfigTransformer: attaching to %q provider configuration from %s", dag.VertexName(v), p.DeclRange)
 				apn.AttachProvider(p)
 				break