diff --git a/configs/config.go b/configs/config.go
index cc88981781..6f1603bfa7 100644
--- a/configs/config.go
+++ b/configs/config.go
@@ -329,6 +329,53 @@ func (c *Config) addProviderRequirements(reqs getproviders.Requirements, recurse
 	return diags
 }
 
+// resolveProviderTypes walks through the providers in the module and ensures
+// the true types are assigned based on the provider requirements for the
+// module.
+func (c *Config) resolveProviderTypes() {
+	for _, child := range c.Children {
+		child.resolveProviderTypes()
+	}
+
+	// collect the required_providers, and then add any missing default providers
+	providers := map[string]addrs.Provider{}
+	for name, p := range c.Module.ProviderRequirements.RequiredProviders {
+		providers[name] = p.Type
+	}
+
+	// ensure all provider configs know their correct type
+	for _, p := range c.Module.ProviderConfigs {
+		addr, required := providers[p.Name]
+		if required {
+			p.providerType = addr
+		} else {
+			addr := addrs.NewDefaultProvider(p.Name)
+			p.providerType = addr
+			providers[p.Name] = addr
+		}
+	}
+
+	// connect module call providers to the correct type
+	for _, mod := range c.Module.ModuleCalls {
+		for _, p := range mod.Providers {
+			if addr, known := providers[p.InParent.Name]; known {
+				p.InParent.providerType = addr
+			}
+		}
+	}
+
+	// fill in parent module calls too
+	if c.Parent != nil {
+		for _, mod := range c.Parent.Module.ModuleCalls {
+			for _, p := range mod.Providers {
+				if addr, known := providers[p.InChild.Name]; known {
+					p.InChild.providerType = addr
+				}
+			}
+		}
+	}
+}
+
 // ProviderTypes returns the FQNs of each distinct provider type referenced
 // in the receiving configuration.
 //
diff --git a/configs/config_build.go b/configs/config_build.go
index 345c678144..1083a1a2d3 100644
--- a/configs/config_build.go
+++ b/configs/config_build.go
@@ -23,6 +23,10 @@ func BuildConfig(root *Module, walker ModuleWalker) (*Config, hcl.Diagnostics) {
 	cfg.Root = cfg // Root module is self-referential.
 	cfg.Children, diags = buildChildModules(cfg, walker)
 
+	// Now that the config is built, we can connect the provider names to all
+	// the known types for validation.
+	cfg.resolveProviderTypes()
+
 	diags = append(diags, validateProviderConfigs(nil, cfg, false)...)
 
 	return cfg, diags
diff --git a/configs/provider.go b/configs/provider.go
index 7fd39b174f..3bbba30521 100644
--- a/configs/provider.go
+++ b/configs/provider.go
@@ -25,6 +25,13 @@ type Provider struct {
 	Config hcl.Body
 
 	DeclRange hcl.Range
+
+	// TODO: this may not be set in some cases, so it is not yet suitable for
+	// use outside of this package. We currently only use it for internal
+	// validation, but once we verify that this can be set in all cases, we can
+	// export this so providers don't need to be re-resolved.
+	// This same field is also added to the ProviderConfigRef struct.
+	providerType addrs.Provider
 }
 
 func decodeProviderBlock(block *hcl.Block) (*Provider, hcl.Diagnostics) {
diff --git a/configs/provider_validation.go b/configs/provider_validation.go
index 57ad0fcdf8..ec8bda2f30 100644
--- a/configs/provider_validation.go
+++ b/configs/provider_validation.go
@@ -136,9 +136,18 @@ func validateProviderConfigs(call *ModuleCall, cfg *Config, noProviderConfig boo
 
 	// You cannot pass in a provider that cannot be used
 	for name, passed := range passedIn {
+		childTy := passed.InChild.providerType
+		// get a default type if there was none set
+		if childTy.IsZero() {
+			// This means the child module is only using an inferred
+			// provider type. We allow this but will generate a warning to
+			// declare provider_requirements below.
+			childTy = addrs.NewDefaultProvider(passed.InChild.Name)
+		}
+
 		providerAddr := addrs.AbsProviderConfig{
 			Module:   cfg.Path,
-			Provider: addrs.NewDefaultProvider(passed.InChild.Name),
+			Provider: childTy,
 			Alias:    passed.InChild.Alias,
 		}
 
@@ -172,9 +181,12 @@ func validateProviderConfigs(call *ModuleCall, cfg *Config, noProviderConfig boo
 		}
 
 		// The provider being passed in must also be of the correct type.
-		// While we would like to ensure required_providers exists here,
-		// implied default configuration is still allowed.
-		pTy := addrs.NewDefaultProvider(passed.InParent.Name)
+		pTy := passed.InParent.providerType
+		if pTy.IsZero() {
+			// While we would like to ensure required_providers exists here,
+			// implied default configuration is still allowed.
+			pTy = addrs.NewDefaultProvider(passed.InParent.Name)
+		}
 
 		// use the full address for a nice diagnostic output
 		parentAddr := addrs.AbsProviderConfig{
diff --git a/configs/resource.go b/configs/resource.go
index 05bb60c3af..73c0d7c897 100644
--- a/configs/resource.go
+++ b/configs/resource.go
@@ -374,6 +374,13 @@ type ProviderConfigRef struct {
 	NameRange  hcl.Range
 	Alias      string
 	AliasRange *hcl.Range // nil if alias not set
+
+	// TODO: this may not be set in some cases, so it is not yet suitable for
+	// use outside of this package. We currently only use it for internal
+	// validation, but once we verify that this can be set in all cases, we can
+	// export this so providers don't need to be re-resolved.
+	// This same field is also added to the Provider struct.
+	providerType addrs.Provider
 }
 
 func decodeProviderConfigRef(expr hcl.Expression, argName string) (*ProviderConfigRef, hcl.Diagnostics) {
diff --git a/configs/testdata/valid-modules/nested-providers-fqns/child/main.tf b/configs/testdata/valid-modules/nested-providers-fqns/child/main.tf
index 1973912d5c..79e449bf46 100644
--- a/configs/testdata/valid-modules/nested-providers-fqns/child/main.tf
+++ b/configs/testdata/valid-modules/nested-providers-fqns/child/main.tf
@@ -3,11 +3,13 @@ terraform {
     bar-test = {
       source = "bar/test"
     }
+    foo-test = {
+      source = "foo/test"
+      configuration_aliases = [foo-test.other]
+    }
   }
 }
 
-provider "bar-test" {}
-
 resource "test_instance" "explicit" {
   // explicitly setting provider bar-test
   provider = bar-test
@@ -17,3 +19,7 @@ resource "test_instance" "implicit" {
   // since the provider type name "test" does not match an entry in
   // required_providers, the default provider "test" should be used
 }
+
+resource "test_instance" "other" {
+  provider = foo-test.other
+}
diff --git a/configs/testdata/valid-modules/nested-providers-fqns/main.tf b/configs/testdata/valid-modules/nested-providers-fqns/main.tf
index 3a9dc4a13e..27988f42b2 100644
--- a/configs/testdata/valid-modules/nested-providers-fqns/main.tf
+++ b/configs/testdata/valid-modules/nested-providers-fqns/main.tf
@@ -10,6 +10,9 @@ provider "foo-test" {}
 
 module "child" {
   source = "./child"
+  providers = {
+    foo-test.other = foo-test
+  }
 }
 
 resource "test_instance" "explicit" {