diff --git a/internal/backend/local/backend.go b/internal/backend/local/backend.go
index 19ed8d1869..0bfa12b3bb 100644
--- a/internal/backend/local/backend.go
+++ b/internal/backend/local/backend.go
@@ -309,19 +309,24 @@ func (b *Local) Operation(ctx context.Context, op *backend.Operation) (*backend.
 	b.opLock.Lock()
 
 	// Build our running operation
-	// the runningCtx is only used to block until the operation returns.
-	runningCtx, done := context.WithCancel(context.Background())
+	// the runningCtx is only used to block until the operation returns. We
+	// intentionally detach it from any upstream cancellation because we
+	// need this to cancel only once our goroutine below is finished.
+	runningCtx, done := context.WithCancel(context.WithoutCancel(ctx))
 	runningOp := &backend.RunningOperation{
 		Context: runningCtx,
 	}
 
 	// stopCtx wraps the context passed in, and is used to signal a graceful Stop.
+	// This one _does_ inherit cancellations from the caller.
 	stopCtx, stop := context.WithCancel(ctx)
 	runningOp.Stop = stop
 
 	// cancelCtx is used to cancel the operation immediately, usually
-	// indicating that the process is exiting.
-	cancelCtx, cancel := context.WithCancel(context.Background())
+	// indicating that the process is exiting. This is intentionally
+	// detached from any upstream cancellation so that it will be
+	// cancelled only once our goroutine below is finished.
+	cancelCtx, cancel := context.WithCancel(context.WithoutCancel(ctx))
 	runningOp.Cancel = cancel
 
 	op.StateLocker = op.StateLocker.WithContext(stopCtx)
diff --git a/internal/command/apply.go b/internal/command/apply.go
index 194ca59cd1..e9fc6b3c80 100644
--- a/internal/command/apply.go
+++ b/internal/command/apply.go
@@ -29,6 +29,7 @@ type ApplyCommand struct {
 
 func (c *ApplyCommand) Run(rawArgs []string) int {
 	var diags tfdiags.Diagnostics
+	ctx := c.CommandContext()
 
 	// Parse and apply global view arguments
 	common, rawArgs := arguments.ParseView(rawArgs)
@@ -134,7 +135,7 @@ func (c *ApplyCommand) Run(rawArgs []string) int {
 	diags = nil
 
 	// Run the operation
-	op, diags := c.RunOperation(be, opReq)
+	op, diags := c.RunOperation(ctx, be, opReq)
 	view.Diagnostics(diags)
 	if diags.HasErrors() {
 		return 1
diff --git a/internal/command/meta.go b/internal/command/meta.go
index ab4af57346..0e6c8a98ce 100644
--- a/internal/command/meta.go
+++ b/internal/command/meta.go
@@ -488,7 +488,7 @@ func (m *Meta) CommandContext() context.Context {
 // If the operation runs to completion then no error is returned even if the
 // operation itself is unsuccessful. Use the "Result" field of the
 // returned operation object to recognize operation-level failure.
-func (m *Meta) RunOperation(b backend.Enhanced, opReq *backend.Operation) (*backend.RunningOperation, tfdiags.Diagnostics) {
+func (m *Meta) RunOperation(ctx context.Context, b backend.Enhanced, opReq *backend.Operation) (*backend.RunningOperation, tfdiags.Diagnostics) {
 	if opReq.View == nil {
 		panic("RunOperation called with nil View")
 	}
@@ -505,7 +505,7 @@ func (m *Meta) RunOperation(b backend.Enhanced, opReq *backend.Operation) (*back
 		return nil, diags
 	}
 
-	op, err := b.Operation(context.Background(), opReq)
+	op, err := b.Operation(ctx, opReq)
 	if err != nil {
 		return nil, diags.Append(fmt.Errorf("error starting operation: %w", err))
 	}
diff --git a/internal/command/plan.go b/internal/command/plan.go
index ecdab84fb0..0e0620a60c 100644
--- a/internal/command/plan.go
+++ b/internal/command/plan.go
@@ -23,6 +23,8 @@ type PlanCommand struct {
 }
 
 func (c *PlanCommand) Run(rawArgs []string) int {
+	ctx := c.CommandContext()
+
 	// Parse and apply global view arguments
 	common, rawArgs := arguments.ParseView(rawArgs)
 	c.View.Configure(common)
@@ -105,7 +107,7 @@ func (c *PlanCommand) Run(rawArgs []string) int {
 	diags = nil
 
 	// Perform the operation
-	op, diags := c.RunOperation(be, opReq)
+	op, diags := c.RunOperation(ctx, be, opReq)
 	view.Diagnostics(diags)
 	if diags.HasErrors() {
 		return 1
diff --git a/internal/command/refresh.go b/internal/command/refresh.go
index f5b651291d..18d7f23191 100644
--- a/internal/command/refresh.go
+++ b/internal/command/refresh.go
@@ -24,6 +24,7 @@ type RefreshCommand struct {
 
 func (c *RefreshCommand) Run(rawArgs []string) int {
 	var diags tfdiags.Diagnostics
+	ctx := c.CommandContext()
 
 	// Parse and apply global view arguments
 	common, rawArgs := arguments.ParseView(rawArgs)
@@ -103,7 +104,7 @@ func (c *RefreshCommand) Run(rawArgs []string) int {
 	diags = nil
 
 	// Perform the operation
-	op, diags := c.RunOperation(be, opReq)
+	op, diags := c.RunOperation(ctx, be, opReq)
 	view.Diagnostics(diags)
 	if diags.HasErrors() {
 		return 1