diff --git a/CHANGELOG.md b/CHANGELOG.md
index 2a9f361fd0..884ebfe563 100644
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -44,6 +44,7 @@ BUG FIXES:
 * When rendering a diff, Terraform now quotes the name of any object attribute whose string representation is not a valid identifier. ([#30766](https://github.com/hashicorp/terraform/issues/30766))
 * Terraform will prioritize local terraform variables over remote terraform variables in operations such as `import`, `plan`, `refresh` and `apply` for workspaces in local execution mode. This behavior applies to both `remote` backend and the `cloud` integration configuration. ([#29972](https://github.com/hashicorp/terraform/issues/29972))
 * `terraform show -json`: JSON plan output now correctly maps aliased providers to their configurations, and includes the full provider source address alongside the short provider name. ([#30138](https://github.com/hashicorp/terraform/issues/30138))
+* The local token configuration now has higher priority than the token specified in a CLI configuration. ([#30664](https://github.com/hashicorp/terraform/issues/30664)) 
 
 ## Previous Releases
 
diff --git a/internal/backend/remote/backend.go b/internal/backend/remote/backend.go
index 4635fa6f26..131a9a9039 100644
--- a/internal/backend/remote/backend.go
+++ b/internal/backend/remote/backend.go
@@ -256,24 +256,25 @@ func (b *Remote) Configure(obj cty.Value) tfdiags.Diagnostics {
 		return diags
 	}
 
-	// Retrieve the token for this host as configured in the credentials
-	// section of the CLI Config File.
-	token, err := b.token()
-	if err != nil {
-		diags = diags.Append(tfdiags.AttributeValue(
-			tfdiags.Error,
-			strings.ToUpper(err.Error()[:1])+err.Error()[1:],
-			"", // no description is needed here, the error is clear
-			cty.Path{cty.GetAttrStep{Name: "hostname"}},
-		))
-		return diags
+	// Get the token from the config.
+	var token string
+	if val := obj.GetAttr("token"); !val.IsNull() {
+		token = val.AsString()
 	}
 
-	// Get the token from the config if no token was configured for this
-	// host in credentials section of the CLI Config File.
+	// Retrieve the token for this host as configured in the credentials
+	// section of the CLI Config File if no token was configured for this
+	// host in the config.
 	if token == "" {
-		if val := obj.GetAttr("token"); !val.IsNull() {
-			token = val.AsString()
+		token, err = b.token()
+		if err != nil {
+			diags = diags.Append(tfdiags.AttributeValue(
+				tfdiags.Error,
+				strings.ToUpper(err.Error()[:1])+err.Error()[1:],
+				"", // no description is needed here, the error is clear
+				cty.Path{cty.GetAttrStep{Name: "hostname"}},
+			))
+			return diags
 		}
 	}
 
diff --git a/internal/cloud/backend.go b/internal/cloud/backend.go
index 9a01af33f0..6f64a9476c 100644
--- a/internal/cloud/backend.go
+++ b/internal/cloud/backend.go
@@ -214,24 +214,24 @@ func (b *Cloud) Configure(obj cty.Value) tfdiags.Diagnostics {
 		return diags
 	}
 
-	// Retrieve the token for this host as configured in the credentials
-	// section of the CLI Config File.
-	token, err := b.token()
-	if err != nil {
-		diags = diags.Append(tfdiags.AttributeValue(
-			tfdiags.Error,
-			strings.ToUpper(err.Error()[:1])+err.Error()[1:],
-			"", // no description is needed here, the error is clear
-			cty.Path{cty.GetAttrStep{Name: "hostname"}},
-		))
-		return diags
+	// First we'll retrieve the token from the configuration
+	var token string
+	if val := obj.GetAttr("token"); !val.IsNull() {
+		token = val.AsString()
 	}
 
-	// Get the token from the config if no token was configured for this
-	// host in credentials section of the CLI Config File.
+	// Get the token from the CLI Config File in the credentials section
+	// if no token was not set in the configuration
 	if token == "" {
-		if val := obj.GetAttr("token"); !val.IsNull() {
-			token = val.AsString()
+		token, err = b.token()
+		if err != nil {
+			diags = diags.Append(tfdiags.AttributeValue(
+				tfdiags.Error,
+				strings.ToUpper(err.Error()[:1])+err.Error()[1:],
+				"", // no description is needed here, the error is clear
+				cty.Path{cty.GetAttrStep{Name: "hostname"}},
+			))
+			return diags
 		}
 	}