diff --git a/internal/command/test.go b/internal/command/test.go
index cde82a7792..96456c5175 100644
--- a/internal/command/test.go
+++ b/internal/command/test.go
@@ -1,16 +1,18 @@
 package command
 
 import (
+	"context"
+	"fmt"
 	"sort"
 	"strings"
 
 	"github.com/hashicorp/hcl/v2"
 
-	"github.com/hashicorp/terraform/internal/addrs"
 	"github.com/hashicorp/terraform/internal/backend"
 	"github.com/hashicorp/terraform/internal/command/arguments"
 	"github.com/hashicorp/terraform/internal/command/views"
 	"github.com/hashicorp/terraform/internal/configs"
+	"github.com/hashicorp/terraform/internal/logging"
 	"github.com/hashicorp/terraform/internal/moduletest"
 	"github.com/hashicorp/terraform/internal/plans"
 	"github.com/hashicorp/terraform/internal/states"
@@ -85,8 +87,72 @@ func (c *TestCommand) Run(rawArgs []string) int {
 		}(),
 	}
 
+	runningCtx, done := context.WithCancel(context.Background())
+	stopCtx, stop := context.WithCancel(runningCtx)
+	cancelCtx, cancel := context.WithCancel(context.Background())
+
+	runner := &TestRunner{
+		command: c,
+
+		Suite:  &suite,
+		Config: config,
+		View:   view,
+
+		CancelledCtx: cancelCtx,
+		StoppedCtx:   stopCtx,
+
+		// Just to be explicit, we'll set the following fields even though they
+		// default to these values.
+		Cancelled: false,
+		Stopped:   false,
+	}
+
 	view.Abstract(&suite)
-	c.ExecuteTestSuite(&suite, config, view)
+
+	go func() {
+		defer logging.PanicHandler()
+		defer done() // We completed successfully.
+		defer stop()
+		defer cancel()
+
+		runner.Start()
+	}()
+
+	// Wait for the operation to complete, or for an interrupt to occur.
+	select {
+	case <-c.ShutdownCh:
+		// Nice request to be cancelled.
+
+		view.Interrupted()
+		runner.Stopped = true
+		stop()
+
+		select {
+		case <-c.ShutdownCh:
+			// The user pressed it again, now we have to get it to stop as
+			// fast as possible.
+
+			view.FatalInterrupt()
+			runner.Cancelled = true
+			cancel()
+
+			// TODO(liamcervante): Should we add a timer here? That would mean
+			//   after 5 seconds we just give up and don't even print out the
+			//   lists of resources left behind?
+			<-runningCtx.Done() // Nothing left to do now but wait.
+
+		case <-runningCtx.Done():
+			// The application finished nicely after the request was stopped.
+		}
+	case <-runningCtx.Done():
+		// tests finished normally with no interrupts.
+	}
+
+	if runner.Cancelled {
+		// Don't print out the conclusion if the test was cancelled.
+		return 1
+	}
+
 	view.Conclusion(&suite)
 
 	if suite.Status != moduletest.Pass {
@@ -95,50 +161,74 @@ func (c *TestCommand) Run(rawArgs []string) int {
 	return 0
 }
 
-func (c *TestCommand) ExecuteTestSuite(suite *moduletest.Suite, config *configs.Config, view views.Test) {
-	var diags tfdiags.Diagnostics
+// test runner
 
-	opts, err := c.contextOpts()
-	diags = diags.Append(err)
-	if err != nil {
-		suite.Status = suite.Status.Merge(moduletest.Error)
-		view.Diagnostics(nil, nil, diags)
-		return
-	}
+type TestRunner struct {
+	command *TestCommand
 
-	ctx, ctxDiags := terraform.NewContext(opts)
-	diags = diags.Append(ctxDiags)
-	if ctxDiags.HasErrors() {
-		suite.Status = suite.Status.Merge(moduletest.Error)
-		view.Diagnostics(nil, nil, diags)
-		return
-	}
-	view.Diagnostics(nil, nil, diags) // Print out any warnings from the setup.
+	Suite  *moduletest.Suite
+	Config *configs.Config
 
+	View views.Test
+
+	// Stopped and Cancelled track whether the user requested the testing
+	// process to be interrupted. Stopped is a nice graceful exit, we'll still
+	// tidy up any state that was created and mark the tests with relevant
+	// `skipped` status updates. Cancelled is a hard stop right now exit, we
+	// won't attempt to clean up any state left hanging, and tests will just
+	// be left showing `pending` as the status. We will still print out the
+	// destroy summary diagnostics that tell the user what state has been left
+	// behind and needs manual clean up.
+	Stopped   bool
+	Cancelled bool
+
+	// StoppedCtx and CancelledCtx allow in progress Terraform operations to
+	// respond to external calls from the test command.
+	StoppedCtx   context.Context
+	CancelledCtx context.Context
+}
+
+func (runner *TestRunner) Start() {
 	var files []string
-	for name := range suite.Files {
+	for name := range runner.Suite.Files {
 		files = append(files, name)
 	}
 	sort.Strings(files) // execute the files in alphabetical order
 
-	suite.Status = moduletest.Pass
+	runner.Suite.Status = moduletest.Pass
 	for _, name := range files {
-		file := suite.Files[name]
-		c.ExecuteTestFile(ctx, file, config, view)
+		if runner.Cancelled {
+			return
+		}
 
-		suite.Status = suite.Status.Merge(file.Status)
+		file := runner.Suite.Files[name]
+		runner.ExecuteTestFile(file)
+		runner.Suite.Status = runner.Suite.Status.Merge(file.Status)
 	}
 }
 
-func (c *TestCommand) ExecuteTestFile(ctx *terraform.Context, file *moduletest.File, config *configs.Config, view views.Test) {
-
+func (runner *TestRunner) ExecuteTestFile(file *moduletest.File) {
 	mgr := new(TestStateManager)
-	mgr.c = c
+	mgr.runner = runner
 	mgr.State = states.NewState()
-	defer mgr.cleanupStates(ctx, view, file, config)
+	defer mgr.cleanupStates(file)
 
 	file.Status = file.Status.Merge(moduletest.Pass)
 	for _, run := range file.Runs {
+		if runner.Cancelled {
+			// This means a hard stop has been requested, in this case we don't
+			// even stop to mark future tests as having been skipped. They'll
+			// just show up as pending in the printed summary.
+			return
+		}
+
+		if runner.Stopped {
+			// Then the test was requested to be stopped, so we just mark each
+			// following test as skipped and move on.
+			run.Status = moduletest.Skip
+			continue
+		}
+
 		if file.Status == moduletest.Error {
 			// If the overall test file has errored, we don't keep trying to
 			// execute tests. Instead, we mark all remaining run blocks as
@@ -150,95 +240,52 @@ func (c *TestCommand) ExecuteTestFile(ctx *terraform.Context, file *moduletest.F
 		if run.Config.ConfigUnderTest != nil {
 			// Then we want to execute a different module under a kind of
 			// sandbox.
-			state := c.ExecuteTestRun(ctx, run, file, states.NewState(), run.Config.ConfigUnderTest)
+			state := runner.ExecuteTestRun(run, file, states.NewState(), run.Config.ConfigUnderTest)
 			mgr.States = append(mgr.States, &TestModuleState{
 				State: state,
 				Run:   run,
 			})
 		} else {
-			mgr.State = c.ExecuteTestRun(ctx, run, file, mgr.State, config)
+			mgr.State = runner.ExecuteTestRun(run, file, mgr.State, runner.Config)
 		}
 		file.Status = file.Status.Merge(run.Status)
 	}
 
-	view.File(file)
+	runner.View.File(file)
 	for _, run := range file.Runs {
-		view.Run(run, file)
+		runner.View.Run(run, file)
 	}
 }
 
-func (c *TestCommand) ExecuteTestRun(ctx *terraform.Context, run *moduletest.Run, file *moduletest.File, state *states.State, config *configs.Config) *states.State {
-
-	// Since we don't want to modify the actual plan and apply operations for
-	// tests where possible, we insert provider blocks directly into the config
-	// under test for each test run.
-	//
-	// This function transforms the config under test by inserting relevant
-	// provider blocks. It returns a reset function which restores the config
-	// back to the original state.
-	cfgReset, cfgDiags := config.TransformForTest(run.Config, file.Config)
-	defer cfgReset()
-	run.Diagnostics = run.Diagnostics.Append(cfgDiags)
-	if cfgDiags.HasErrors() {
-		run.Status = moduletest.Error
+func (runner *TestRunner) ExecuteTestRun(run *moduletest.Run, file *moduletest.File, state *states.State, config *configs.Config) *states.State {
+	if runner.Cancelled {
+		// Don't do anything, just give up and return immediately.
+		// The surrounding functions should stop this even being called, but in
+		// case of race conditions or something we can still verify this.
 		return state
 	}
 
-	var targets []addrs.Targetable
-	for _, target := range run.Config.Options.Target {
-		addr, diags := addrs.ParseTarget(target)
-		run.Diagnostics = run.Diagnostics.Append(diags)
-		if diags.HasErrors() {
-			run.Status = moduletest.Error
-			return state
-		}
-
-		targets = append(targets, addr.Subject)
+	if runner.Stopped {
+		// Basically the same as above, except we'll be a bit nicer.
+		run.Status = moduletest.Skip
+		return state
 	}
 
-	var replaces []addrs.AbsResourceInstance
-	for _, replace := range run.Config.Options.Replace {
-		addr, diags := addrs.ParseAbsResourceInstance(replace)
-		run.Diagnostics = run.Diagnostics.Append(diags)
-		if diags.HasErrors() {
-			run.Status = moduletest.Error
-			return state
-		}
-
-		if addr.Resource.Resource.Mode != addrs.ManagedResourceMode {
-			run.Diagnostics = run.Diagnostics.Append(hcl.Diagnostic{
-				Severity: hcl.DiagError,
-				Summary:  "can only target managed resources for forced replacements",
-				Detail:   addr.String(),
-				Subject:  replace.SourceRange().Ptr(),
-			})
-			return state
-		}
-
-		replaces = append(replaces, addr)
-	}
-
-	variables, diags := c.GetInputValues(run.Config.Variables, file.Config.Variables, config)
+	targets, diags := run.GetTargets()
+	run.Diagnostics = run.Diagnostics.Append(diags)
+
+	replaces, diags := run.GetReplaces()
+	run.Diagnostics = run.Diagnostics.Append(diags)
+
+	references, diags := run.GetReferences()
 	run.Diagnostics = run.Diagnostics.Append(diags)
-	if diags.HasErrors() {
-		run.Status = moduletest.Error
-		return state
-	}
 
-	var references []*addrs.Reference
-	for _, assert := range run.Config.CheckRules {
-		for _, variable := range assert.Condition.Variables() {
-			reference, diags := addrs.ParseRef(variable)
-			run.Diagnostics = run.Diagnostics.Append(diags)
-			references = append(references, reference)
-		}
-	}
 	if run.Diagnostics.HasErrors() {
 		run.Status = moduletest.Error
 		return state
 	}
 
-	plan, diags := ctx.Plan(config, state, &terraform.PlanOpts{
+	ctx, plan, state, diags := runner.execute(run, file, config, state, &terraform.PlanOpts{
 		Mode: func() plans.Mode {
 			switch run.Config.Options.Mode {
 			case configs.RefreshOnlyTestMode:
@@ -247,12 +294,32 @@ func (c *TestCommand) ExecuteTestRun(ctx *terraform.Context, run *moduletest.Run
 				return plans.NormalMode
 			}
 		}(),
-		SetVariables:       variables,
 		Targets:            targets,
 		ForceReplace:       replaces,
 		SkipRefresh:        !run.Config.Options.Refresh,
 		ExternalReferences: references,
-	})
+	}, run.Config.Command)
+	run.Diagnostics = run.Diagnostics.Append(diags)
+
+	if runner.Cancelled {
+		// Print out the diagnostics from the run now, since it was cancelled
+		// the normal set of diagnostics will not be printed otherwise.
+		runner.View.Diagnostics(run, file, run.Diagnostics)
+		run.Status = moduletest.Error
+		return state
+	}
+
+	if diags.HasErrors() {
+		run.Status = moduletest.Error
+		return state
+	}
+
+	if runner.Stopped {
+		run.Status = moduletest.Skip
+		return state
+	}
+
+	variables, diags := buildInputVariablesForAssertions(run, file, config)
 	run.Diagnostics = run.Diagnostics.Append(diags)
 	if diags.HasErrors() {
 		run.Status = moduletest.Error
@@ -260,13 +327,6 @@ func (c *TestCommand) ExecuteTestRun(ctx *terraform.Context, run *moduletest.Run
 	}
 
 	if run.Config.Command == configs.ApplyTestCommand {
-		state, diags = ctx.Apply(plan, config)
-		run.Diagnostics = run.Diagnostics.Append(diags)
-		if diags.HasErrors() {
-			run.Status = moduletest.Error
-			return state
-		}
-
 		ctx.TestContext(config, state, plan, variables).EvaluateAgainstState(run)
 		return state
 	}
@@ -275,98 +335,185 @@ func (c *TestCommand) ExecuteTestRun(ctx *terraform.Context, run *moduletest.Run
 	return state
 }
 
-func (c *TestCommand) GetInputValues(locals map[string]hcl.Expression, globals map[string]hcl.Expression, config *configs.Config) (terraform.InputValues, tfdiags.Diagnostics) {
-	variables := make(map[string]hcl.Expression)
-	for name := range config.Module.Variables {
-		if expr, exists := locals[name]; exists {
-			// Local variables take precedence.
-			variables[name] = expr
-			continue
-		}
-
-		if expr, exists := globals[name]; exists {
-			// If it's not set locally, it maybe set globally.
-			variables[name] = expr
-			continue
-		}
-
-		// If it's not set at all that might be okay if the variable is optional
-		// so we'll just not add anything to the map.
+// execute executes Terraform plan and apply operations for the given arguments.
+//
+// The command argument decides whether it executes only a plan or also applies
+// the plan it creates during the planning.
+func (runner *TestRunner) execute(run *moduletest.Run, file *moduletest.File, config *configs.Config, state *states.State, opts *terraform.PlanOpts, command configs.TestCommand) (*terraform.Context, *plans.Plan, *states.State, tfdiags.Diagnostics) {
+	if opts.Mode == plans.DestroyMode && state.Empty() {
+		// Nothing to do!
+		return nil, nil, state, nil
 	}
 
-	unparsed := make(map[string]backend.UnparsedVariableValue)
-	for key, value := range variables {
-		unparsed[key] = unparsedVariableValueExpression{
-			expr:       value,
-			sourceType: terraform.ValueFromConfig,
-		}
-	}
-	return backend.ParseVariableValues(unparsed, config.Module.Variables)
-}
-
-func (c *TestCommand) cleanupState(ctx *terraform.Context, view views.Test, run *moduletest.Run, file *moduletest.File, config *configs.Config, state *states.State) {
-	if state.Empty() {
-		// Nothing to do.
-		return
-	}
-
-	var locals, globals map[string]hcl.Expression
+	identifier := file.Name
 	if run != nil {
-		locals = run.Config.Variables
-	}
-	if file != nil {
-		globals = file.Config.Variables
+		identifier = fmt.Sprintf("%s/%s", identifier, run.Name)
 	}
 
-	var cfgDiags tfdiags.Diagnostics
+	// First, transform the config for the given test run and test file.
+
+	var diags tfdiags.Diagnostics
 	if run == nil {
-		cfgReset, diags := config.TransformForTest(nil, file.Config)
-		defer cfgReset()
-		cfgDiags = cfgDiags.Append(diags)
+		reset, cfgDiags := config.TransformForTest(nil, file.Config)
+		defer reset()
+		diags = diags.Append(cfgDiags)
 	} else {
-		cfgReset, diags := config.TransformForTest(run.Config, file.Config)
-		defer cfgReset()
-		cfgDiags = cfgDiags.Append(diags)
+		reset, cfgDiags := config.TransformForTest(run.Config, file.Config)
+		defer reset()
+		diags = diags.Append(cfgDiags)
 	}
-	if cfgDiags.HasErrors() {
-		// This shouldn't really trigger, as we will have applied this transform
-		// earlier and it will have worked so a problem now would be strange.
-		// To be safe, we'll handle it anyway.
-		view.DestroySummary(cfgDiags, run, file, state)
-		return
+	if diags.HasErrors() {
+		return nil, nil, state, diags
 	}
-	c.View.Diagnostics(cfgDiags)
 
-	variables, variableDiags := c.GetInputValues(locals, globals, config)
+	// Second, gather any variables and give them to the plan options.
+
+	variables, variableDiags := buildInputVariablesForTest(run, file, config)
+	diags = diags.Append(variableDiags)
 	if variableDiags.HasErrors() {
-		// This shouldn't really trigger, as we will have created something
-		// using these variables at an earlier stage so for them to have a
-		// problem now would be strange. But just to be safe we'll handle this.
-		view.DestroySummary(variableDiags, run, file, state)
-		return
+		return nil, nil, state, diags
 	}
-	view.Diagnostics(nil, file, variableDiags)
+	opts.SetVariables = variables
 
-	plan, planDiags := ctx.Plan(config, state, &terraform.PlanOpts{
-		Mode:         plans.DestroyMode,
-		SetVariables: variables,
-	})
-	if planDiags.HasErrors() {
-		// This is bad, we need to tell the user that we couldn't clean up
-		// and they need to go and manually delete some resources.
-		view.DestroySummary(planDiags, run, file, state)
-		return
+	// Third, execute planning stage.
+
+	tfCtxOpts, err := runner.command.contextOpts()
+	diags = diags.Append(err)
+	if err != nil {
+		return nil, nil, state, diags
 	}
-	view.Diagnostics(nil, file, planDiags) // Print out any warnings from the destroy plan.
 
-	finalState, applyDiags := ctx.Apply(plan, config)
-	view.DestroySummary(applyDiags, run, file, finalState)
+	tfCtx, ctxDiags := terraform.NewContext(tfCtxOpts)
+	diags = diags.Append(ctxDiags)
+	if ctxDiags.HasErrors() {
+		return nil, nil, state, diags
+	}
+
+	runningCtx, done := context.WithCancel(context.Background())
+
+	var plan *plans.Plan
+	var planDiags tfdiags.Diagnostics
+	go func() {
+		defer done()
+		plan, planDiags = tfCtx.Plan(config, state, opts)
+	}()
+	waitDiags, cancelled := runner.wait(tfCtx, runningCtx, opts, identifier)
+	planDiags = planDiags.Append(waitDiags)
+
+	diags = diags.Append(planDiags)
+	if planDiags.HasErrors() || command == configs.PlanTestCommand {
+		// Either the plan errored, or we only wanted to see the plan. Either
+		// way, just return what we have: The plan and diagnostics from making
+		// it and the unchanged state.
+		return tfCtx, plan, state, diags
+	}
+
+	if cancelled {
+		// If the execution was cancelled during the plan, we'll exit here to
+		// stop the plan being applied and using more time.
+		return tfCtx, plan, state, diags
+	}
+
+	// Fourth, execute apply stage.
+	tfCtx, ctxDiags = terraform.NewContext(tfCtxOpts)
+	diags = diags.Append(ctxDiags)
+	if ctxDiags.HasErrors() {
+		return nil, nil, state, diags
+	}
+
+	runningCtx, done = context.WithCancel(context.Background())
+
+	var updated *states.State
+	var applyDiags tfdiags.Diagnostics
+
+	go func() {
+		defer done()
+		updated, applyDiags = tfCtx.Apply(plan, config)
+	}()
+	waitDiags, _ = runner.wait(tfCtx, runningCtx, opts, identifier)
+	applyDiags = applyDiags.Append(waitDiags)
+
+	diags = diags.Append(applyDiags)
+	return tfCtx, plan, updated, diags
 }
 
+func (runner *TestRunner) wait(ctx *terraform.Context, runningCtx context.Context, opts *terraform.PlanOpts, identifier string) (diags tfdiags.Diagnostics, cancelled bool) {
+	select {
+	case <-runner.StoppedCtx.Done():
+
+		if opts.Mode != plans.DestroyMode {
+			// It takes more impetus from the user to cancel the cleanup
+			// operations, so we only do this during the actual tests.
+			cancelled = true
+			go ctx.Stop()
+		}
+
+		select {
+		case <-runner.CancelledCtx.Done():
+
+			// If the user still really wants to cancel, then we'll oblige
+			// even during the destroy mode at this point.
+			if opts.Mode == plans.DestroyMode {
+				cancelled = true
+				go ctx.Stop()
+			}
+
+			diags = diags.Append(tfdiags.Sourceless(
+				tfdiags.Error,
+				"Terraform Test Interrupted",
+				fmt.Sprintf("Terraform test was interrupted while executing %s. This means resources that were created during the test may have been left active, please monitor the rest of the output closely as any dangling resources will be listed.", identifier)))
+
+			// It is actually quite disastrous if we exist early at this
+			// point as it means we'll have created resources that we
+			// haven't tracked at all. So for now, we won't ever actually
+			// forcibly terminate the test. When cancelled, we make the
+			// clean up faster by not performing it but we should still
+			// always manage it give an accurate list of resources left
+			// alive.
+			// TODO(liamcervante): Consider adding a timer here, so that we
+			//   exit early even if that means some resources are just lost
+			//   forever.
+			<-runningCtx.Done() // Just wait for things to finish now.
+
+		case <-runningCtx.Done():
+			// The operation exited nicely when asked!
+		}
+	case <-runner.CancelledCtx.Done():
+		// This shouldn't really happen, as we'd expect to see the StoppedCtx
+		// being triggered first. But, just in case.
+		cancelled = true
+		go ctx.Stop()
+
+		diags = diags.Append(tfdiags.Sourceless(
+			tfdiags.Error,
+			"Terraform Test Interrupted",
+			fmt.Sprintf("Terraform test was interrupted while executing %s. This means resources that were created during the test may have been left active, please monitor the rest of the output closely as any dangling resources will be listed.", identifier)))
+
+		// It is actually quite disastrous if we exist early at this
+		// point as it means we'll have created resources that we
+		// haven't tracked at all. So for now, we won't ever actually
+		// forcibly terminate the test. When cancelled, we make the
+		// clean up faster by not performing it but we should still
+		// always manage it give an accurate list of resources left
+		// alive.
+		// TODO(liamcervante): Consider adding a timer here, so that we
+		//   exit early even if that means some resources are just lost
+		//   forever.
+		<-runningCtx.Done() // Just wait for things to finish now.
+
+	case <-runningCtx.Done():
+		// The operation exited normally.
+	}
+
+	return diags, cancelled
+}
+
+// state management
+
 // TestStateManager is a helper struct to maintain the various state objects
 // that a test file has to keep track of.
 type TestStateManager struct {
-	c *TestCommand
+	runner *TestRunner
 
 	// State is the main state of the module under test during a single test
 	// file execution. This state will be updated by every run block without
@@ -387,22 +534,132 @@ type TestModuleState struct {
 	// State is the state after the module executed.
 	State *states.State
 
-	// File is the config for the file containing the Run.
-	File *moduletest.File
-
 	// Run is the config for the given run block, that contains the config
 	// under test and the variable values.
 	Run *moduletest.Run
 }
 
-func (manager *TestStateManager) cleanupStates(ctx *terraform.Context, view views.Test, file *moduletest.File, config *configs.Config) {
+func (manager *TestStateManager) cleanupStates(file *moduletest.File) {
+	if manager.runner.Cancelled {
+
+		// We are still going to print out the resources that we have left
+		// even though the user asked for an immediate exit.
+
+		var diags tfdiags.Diagnostics
+		diags = diags.Append(tfdiags.Sourceless(tfdiags.Error, "Test cleanup skipped due to immediate exit", "Terraform could not clean up the state left behind due to immediate interrupt."))
+		manager.runner.View.DestroySummary(diags, nil, file, manager.State)
+
+		for _, module := range manager.States {
+			manager.runner.View.DestroySummary(diags, module.Run, file, module.State)
+		}
+
+		return
+	}
+
 	// First, we'll clean up the main state.
-	manager.c.cleanupState(ctx, view, nil, file, config, manager.State)
+	_, _, state, diags := manager.runner.execute(nil, file, manager.runner.Config, manager.State, &terraform.PlanOpts{
+		Mode: plans.DestroyMode,
+	}, configs.ApplyTestCommand)
+	manager.runner.View.DestroySummary(diags, nil, file, state)
 
 	// Then we'll clean up the additional states for custom modules in reverse
 	// order.
 	for ix := len(manager.States); ix > 0; ix-- {
-		state := manager.States[ix-1]
-		manager.c.cleanupState(ctx, view, state.Run, file, state.Run.Config.ConfigUnderTest, state.State)
+		module := manager.States[ix-1]
+
+		if manager.runner.Cancelled {
+			// In case the cancellation came while a previous state was being
+			// destroyed.
+			manager.runner.View.DestroySummary(diags, module.Run, file, module.State)
+			continue
+		}
+
+		_, _, state, diags := manager.runner.execute(module.Run, file, module.Run.Config.ConfigUnderTest, module.State, &terraform.PlanOpts{
+			Mode: plans.DestroyMode,
+		}, configs.ApplyTestCommand)
+		manager.runner.View.DestroySummary(diags, module.Run, file, state)
 	}
 }
+
+// helper functions
+
+// buildInputVariablesForTest creates a terraform.InputValues mapping for
+// variable values that are relevant to the config being tested.
+//
+// Crucially, it differs from buildInputVariablesForAssertions in that it only
+// includes variables that are reference by the config and not everything that
+// is defined within the test run block and test file.
+func buildInputVariablesForTest(run *moduletest.Run, file *moduletest.File, config *configs.Config) (terraform.InputValues, tfdiags.Diagnostics) {
+	variables := make(map[string]hcl.Expression)
+	for name := range config.Module.Variables {
+		if run != nil {
+			if expr, exists := run.Config.Variables[name]; exists {
+				// Local variables take precedence.
+				variables[name] = expr
+				continue
+			}
+		}
+
+		if file != nil {
+			if expr, exists := file.Config.Variables[name]; exists {
+				// If it's not set locally, it maybe set globally.
+				variables[name] = expr
+				continue
+			}
+		}
+
+		// If it's not set at all that might be okay if the variable is optional
+		// so we'll just not add anything to the map.
+	}
+
+	unparsed := make(map[string]backend.UnparsedVariableValue)
+	for key, value := range variables {
+		unparsed[key] = unparsedVariableValueExpression{
+			expr:       value,
+			sourceType: terraform.ValueFromConfig,
+		}
+	}
+	return backend.ParseVariableValues(unparsed, config.Module.Variables)
+}
+
+// buildInputVariablesForAssertions creates a terraform.InputValues mapping that
+// contains all the variables defined for a given run and file, alongside any
+// unset variables that have defaults within the provided config.
+//
+// Crucially, it differs from buildInputVariablesForTest in that the returned
+// input values include all variables available even if they are not defined
+// within the config.
+//
+// This does mean the returned diags might contain warnings about variables not
+// defined within the config. We might want to remove these warnings in the
+// future, since it is actually okay for test files to have variables defined
+// outside the configuration.
+func buildInputVariablesForAssertions(run *moduletest.Run, file *moduletest.File, config *configs.Config) (terraform.InputValues, tfdiags.Diagnostics) {
+	merged := make(map[string]hcl.Expression)
+
+	if run != nil {
+		for name, expr := range run.Config.Variables {
+			merged[name] = expr
+		}
+	}
+
+	if file != nil {
+		for name, expr := range file.Config.Variables {
+			if _, exists := merged[name]; exists {
+				// Then this variable was defined at the run level and we want
+				// that value to take precedence.
+				continue
+			}
+			merged[name] = expr
+		}
+	}
+
+	unparsed := make(map[string]backend.UnparsedVariableValue)
+	for key, value := range merged {
+		unparsed[key] = unparsedVariableValueExpression{
+			expr:       value,
+			sourceType: terraform.ValueFromConfig,
+		}
+	}
+	return backend.ParseVariableValues(unparsed, config.Module.Variables)
+}
diff --git a/internal/command/test_test.go b/internal/command/test_test.go
index ad4e3faad8..2baf5ce472 100644
--- a/internal/command/test_test.go
+++ b/internal/command/test_test.go
@@ -137,6 +137,72 @@ func TestTest(t *testing.T) {
 	}
 }
 
+func TestTest_Interrupt(t *testing.T) {
+	td := t.TempDir()
+	testCopyDir(t, testFixturePath(path.Join("test", "with_interrupt")), td)
+	defer testChdir(t, td)()
+
+	provider := testing_command.NewProvider(nil)
+	view, done := testView(t)
+
+	interrupt := make(chan struct{})
+	provider.Interrupt = interrupt
+
+	c := &TestCommand{
+		Meta: Meta{
+			testingOverrides: metaOverridesForProvider(provider.Provider),
+			View:             view,
+			ShutdownCh:       interrupt,
+		},
+	}
+
+	c.Run(nil)
+	output := done(t).All()
+
+	if !strings.Contains(output, "Interrupt received") {
+		t.Errorf("output didn't produce the right output:\n\n%s", output)
+	}
+
+	if provider.ResourceCount() > 0 {
+		// we asked for a nice stop in this one, so it should still have tidied everything up.
+		t.Errorf("should have deleted all resources on completion but left %v", provider.ResourceString())
+	}
+}
+
+func TestTest_DoubleInterrupt(t *testing.T) {
+	td := t.TempDir()
+	testCopyDir(t, testFixturePath(path.Join("test", "with_double_interrupt")), td)
+	defer testChdir(t, td)()
+
+	provider := testing_command.NewProvider(nil)
+	view, done := testView(t)
+
+	interrupt := make(chan struct{})
+	provider.Interrupt = interrupt
+
+	c := &TestCommand{
+		Meta: Meta{
+			testingOverrides: metaOverridesForProvider(provider.Provider),
+			View:             view,
+			ShutdownCh:       interrupt,
+		},
+	}
+
+	c.Run(nil)
+	output := done(t).All()
+
+	if !strings.Contains(output, "Terraform Test Interrupted") {
+		t.Errorf("output didn't produce the right output:\n\n%s", output)
+	}
+
+	// This time the test command shouldn't have cleaned up the resource because
+	// of the hard interrupt.
+	if provider.ResourceCount() != 3 {
+		// we asked for a nice stop in this one, so it should still have tidied everything up.
+		t.Errorf("should not have deleted all resources on completion but left %v", provider.ResourceString())
+	}
+}
+
 func TestTest_ProviderAlias(t *testing.T) {
 	td := t.TempDir()
 	testCopyDir(t, testFixturePath(path.Join("test", "with_provider_alias")), td)
diff --git a/internal/command/testdata/test/with_double_interrupt/main.tf b/internal/command/testdata/test/with_double_interrupt/main.tf
new file mode 100644
index 0000000000..92846111d7
--- /dev/null
+++ b/internal/command/testdata/test/with_double_interrupt/main.tf
@@ -0,0 +1,25 @@
+
+variable "interrupts" {
+  type = number
+}
+
+resource "test_resource" "primary" {
+  value = "primary"
+}
+
+resource "test_resource" "secondary" {
+  value = "secondary"
+  interrupt_count = var.interrupts
+
+  depends_on = [
+    test_resource.primary
+  ]
+}
+
+resource "test_resource" "tertiary" {
+  value = "tertiary"
+
+  depends_on = [
+    test_resource.secondary
+  ]
+}
diff --git a/internal/command/testdata/test/with_double_interrupt/main.tftest b/internal/command/testdata/test/with_double_interrupt/main.tftest
new file mode 100644
index 0000000000..4743976709
--- /dev/null
+++ b/internal/command/testdata/test/with_double_interrupt/main.tftest
@@ -0,0 +1,17 @@
+variables {
+  interrupts = 0
+}
+
+run "primary" {
+
+}
+
+run "secondary" {
+  variables {
+    interrupts = 2
+  }
+}
+
+run "tertiary" {
+
+}
diff --git a/internal/command/testdata/test/with_interrupt/main.tf b/internal/command/testdata/test/with_interrupt/main.tf
new file mode 100644
index 0000000000..92846111d7
--- /dev/null
+++ b/internal/command/testdata/test/with_interrupt/main.tf
@@ -0,0 +1,25 @@
+
+variable "interrupts" {
+  type = number
+}
+
+resource "test_resource" "primary" {
+  value = "primary"
+}
+
+resource "test_resource" "secondary" {
+  value = "secondary"
+  interrupt_count = var.interrupts
+
+  depends_on = [
+    test_resource.primary
+  ]
+}
+
+resource "test_resource" "tertiary" {
+  value = "tertiary"
+
+  depends_on = [
+    test_resource.secondary
+  ]
+}
diff --git a/internal/command/testdata/test/with_interrupt/main.tftest b/internal/command/testdata/test/with_interrupt/main.tftest
new file mode 100644
index 0000000000..e2260f96a7
--- /dev/null
+++ b/internal/command/testdata/test/with_interrupt/main.tftest
@@ -0,0 +1,17 @@
+variables {
+  interrupts = 0
+}
+
+run "primary" {
+
+}
+
+run "secondary" {
+  variables {
+    interrupts = 1
+  }
+}
+
+run "tertiary" {
+
+}
diff --git a/internal/command/testing/test_provider.go b/internal/command/testing/test_provider.go
index a1cedddc75..351c4f7bb6 100644
--- a/internal/command/testing/test_provider.go
+++ b/internal/command/testing/test_provider.go
@@ -28,8 +28,9 @@ var (
 			"test_resource": {
 				Block: &configschema.Block{
 					Attributes: map[string]*configschema.Attribute{
-						"id":    {Type: cty.String, Optional: true, Computed: true},
-						"value": {Type: cty.String, Optional: true},
+						"id":              {Type: cty.String, Optional: true, Computed: true},
+						"value":           {Type: cty.String, Optional: true},
+						"interrupt_count": {Type: cty.Number, Optional: true},
 					},
 				},
 			},
@@ -38,8 +39,9 @@ var (
 			"test_data_source": {
 				Block: &configschema.Block{
 					Attributes: map[string]*configschema.Attribute{
-						"id":    {Type: cty.String, Required: true},
-						"value": {Type: cty.String, Computed: true},
+						"id":              {Type: cty.String, Required: true},
+						"value":           {Type: cty.String, Computed: true},
+						"interrupt_count": {Type: cty.Number, Computed: true},
 					},
 				},
 			},
@@ -54,6 +56,8 @@ type TestProvider struct {
 
 	data, resource cty.Value
 
+	Interrupt chan<- struct{}
+
 	Store *ResourceStore
 }
 
@@ -207,6 +211,14 @@ func (provider *TestProvider) ApplyResourceChange(request providers.ApplyResourc
 		resource = cty.ObjectVal(vals)
 	}
 
+	interrupts := resource.GetAttr("interrupt_count")
+	if !interrupts.IsNull() && interrupts.IsKnown() && provider.Interrupt != nil {
+		count, _ := interrupts.AsBigFloat().Int64()
+		for ix := 0; ix < int(count); ix++ {
+			provider.Interrupt <- struct{}{}
+		}
+	}
+
 	provider.Store.Put(provider.GetResourceKey(id.AsString()), resource)
 	return providers.ApplyResourceChangeResponse{
 		NewState: resource,
diff --git a/internal/command/views/test.go b/internal/command/views/test.go
index c0697eabc9..b5dce1c2d2 100644
--- a/internal/command/views/test.go
+++ b/internal/command/views/test.go
@@ -38,6 +38,14 @@ type Test interface {
 
 	// Diagnostics prints out the provided diagnostics.
 	Diagnostics(run *moduletest.Run, file *moduletest.File, diags tfdiags.Diagnostics)
+
+	// Interrupted prints out a message stating that an interrupt has been
+	// received and testing will stop.
+	Interrupted()
+
+	// FatalInterrupt prints out a message stating that a hard interrupt has
+	// been received and testing will stop and cleanup will be skipped.
+	FatalInterrupt()
 }
 
 func NewTest(vt arguments.ViewType, view *View) Test {
@@ -139,13 +147,21 @@ func (t *TestHuman) Diagnostics(_ *moduletest.Run, _ *moduletest.File, diags tfd
 	t.view.Diagnostics(diags)
 }
 
+func (t *TestHuman) Interrupted() {
+	t.view.streams.Print(interrupted)
+}
+
+func (t *TestHuman) FatalInterrupt() {
+	t.view.streams.Print(fatalInterrupt)
+}
+
 type TestJSON struct {
 	view *JSONView
 }
 
 var _ Test = (*TestJSON)(nil)
 
-func (t TestJSON) Abstract(suite *moduletest.Suite) {
+func (t *TestJSON) Abstract(suite *moduletest.Suite) {
 	var fileCount, runCount int
 
 	abstract := json.TestSuiteAbstract{}
@@ -176,7 +192,7 @@ func (t TestJSON) Abstract(suite *moduletest.Suite) {
 		json.MessageTestAbstract, abstract)
 }
 
-func (t TestJSON) Conclusion(suite *moduletest.Suite) {
+func (t *TestJSON) Conclusion(suite *moduletest.Suite) {
 	summary := json.TestSuiteSummary{
 		Status: json.ToTestStatus(suite.Status),
 	}
@@ -225,7 +241,7 @@ func (t TestJSON) Conclusion(suite *moduletest.Suite) {
 		json.MessageTestSummary, summary)
 }
 
-func (t TestJSON) File(file *moduletest.File) {
+func (t *TestJSON) File(file *moduletest.File) {
 	t.view.log.Info(
 		fmt.Sprintf("%s... %s", file.Name, testStatus(file.Status)),
 		"type", json.MessageTestFile,
@@ -233,7 +249,7 @@ func (t TestJSON) File(file *moduletest.File) {
 		"@testfile", file.Name)
 }
 
-func (t TestJSON) Run(run *moduletest.Run, file *moduletest.File) {
+func (t *TestJSON) Run(run *moduletest.Run, file *moduletest.File) {
 	t.view.log.Info(
 		fmt.Sprintf("  %q... %s", run.Name, testStatus(run.Status)),
 		"type", json.MessageTestRun,
@@ -244,7 +260,7 @@ func (t TestJSON) Run(run *moduletest.Run, file *moduletest.File) {
 	t.Diagnostics(run, file, run.Diagnostics)
 }
 
-func (t TestJSON) DestroySummary(diags tfdiags.Diagnostics, run *moduletest.Run, file *moduletest.File, state *states.State) {
+func (t *TestJSON) DestroySummary(diags tfdiags.Diagnostics, run *moduletest.Run, file *moduletest.File, state *states.State) {
 	if state.HasManagedResourceInstanceObjects() {
 		cleanup := json.TestFileCleanup{}
 		for _, resource := range state.AllResourceInstanceObjectAddrs() {
@@ -274,7 +290,7 @@ func (t TestJSON) DestroySummary(diags tfdiags.Diagnostics, run *moduletest.Run,
 	t.Diagnostics(run, file, diags)
 }
 
-func (t TestJSON) Diagnostics(run *moduletest.Run, file *moduletest.File, diags tfdiags.Diagnostics) {
+func (t *TestJSON) Diagnostics(run *moduletest.Run, file *moduletest.File, diags tfdiags.Diagnostics) {
 	var metadata []interface{}
 	if file != nil {
 		metadata = append(metadata, "@testfile", file.Name)
@@ -285,6 +301,14 @@ func (t TestJSON) Diagnostics(run *moduletest.Run, file *moduletest.File, diags
 	t.view.Diagnostics(diags, metadata...)
 }
 
+func (t *TestJSON) Interrupted() {
+	t.view.Log(interrupted)
+}
+
+func (t *TestJSON) FatalInterrupt() {
+	t.view.Log(fatalInterrupt)
+}
+
 func colorizeTestStatus(status moduletest.Status, color *colorstring.Colorize) string {
 	switch status {
 	case moduletest.Error, moduletest.Fail:
diff --git a/internal/moduletest/run.go b/internal/moduletest/run.go
index 88c5a75139..d31c5fa9c7 100644
--- a/internal/moduletest/run.go
+++ b/internal/moduletest/run.go
@@ -19,6 +19,72 @@ type Run struct {
 	Diagnostics tfdiags.Diagnostics
 }
 
+func (run *Run) GetTargets() ([]addrs.Targetable, tfdiags.Diagnostics) {
+	var diagnostics tfdiags.Diagnostics
+	var targets []addrs.Targetable
+
+	for _, target := range run.Config.Options.Target {
+		addr, diags := addrs.ParseTarget(target)
+		diagnostics = diagnostics.Append(diags)
+		if addr != nil {
+			targets = append(targets, addr.Subject)
+		}
+	}
+
+	return targets, diagnostics
+}
+
+func (run *Run) GetReplaces() ([]addrs.AbsResourceInstance, tfdiags.Diagnostics) {
+	var diagnostics tfdiags.Diagnostics
+	var replaces []addrs.AbsResourceInstance
+
+	for _, replace := range run.Config.Options.Replace {
+		addr, diags := addrs.ParseAbsResourceInstance(replace)
+		diagnostics = diagnostics.Append(diags)
+		if diags.HasErrors() {
+			continue
+		}
+
+		if addr.Resource.Resource.Mode != addrs.ManagedResourceMode {
+			diagnostics = diagnostics.Append(&hcl.Diagnostic{
+				Severity: hcl.DiagError,
+				Summary:  "Can only target managed resources for forced replacements.",
+				Detail:   addr.String(),
+				Subject:  replace.SourceRange().Ptr(),
+			})
+			continue
+		}
+
+		replaces = append(replaces, addr)
+	}
+
+	return replaces, diagnostics
+}
+
+func (run *Run) GetReferences() ([]*addrs.Reference, tfdiags.Diagnostics) {
+	var diagnostics tfdiags.Diagnostics
+	var references []*addrs.Reference
+
+	for _, rule := range run.Config.CheckRules {
+		for _, variable := range rule.Condition.Variables() {
+			reference, diags := addrs.ParseRef(variable)
+			diagnostics = diagnostics.Append(diags)
+			if reference != nil {
+				references = append(references, reference)
+			}
+		}
+		for _, variable := range rule.ErrorMessage.Variables() {
+			reference, diags := addrs.ParseRef(variable)
+			diagnostics = diagnostics.Append(diags)
+			if reference != nil {
+				references = append(references, reference)
+			}
+		}
+	}
+
+	return references, diagnostics
+}
+
 // ValidateExpectedFailures steps through the provided diagnostics (which should
 // be the result of a plan or an apply operation), and does 3 things:
 //  1. Removes diagnostics that match the expected failures from the config.
@@ -35,8 +101,8 @@ type Run struct {
 // already processing the diagnostics from check blocks in here anyway.
 //
 // The way the function works out which diagnostics are relevant to expected
-// failures is by using the tfdiags.ValuedDiagnostic functionality to detect
-// which diagnostics were generated by custom conditions. Terraform adds the
+// failures is by using the tfdiags Extra functionality to detect which
+// diagnostics were generated by custom conditions. Terraform adds the
 // addrs.CheckRule that generated each diagnostic to the diagnostic itself so we
 // can tell which diagnostics can be expected.
 func (run *Run) ValidateExpectedFailures(originals tfdiags.Diagnostics) tfdiags.Diagnostics {