diff --git a/internal/configs/configschema/coerce_value.go b/internal/configs/configschema/coerce_value.go
index 4e3263df4387..d1ccc3013ef3 100644
--- a/internal/configs/configschema/coerce_value.go
+++ b/internal/configs/configschema/coerce_value.go
@@ -73,6 +73,14 @@ func (b *Block) coerceValue(in cty.Value, path cty.Path) (cty.Value, error) {
 			return cty.UnknownVal(impliedType), path.NewErrorf("attribute %q has none of required, optional, or computed set", name)
 		}
 
+		// check for NestingGroup which cannot be null
+		if attrS.NestedType != nil && attrS.NestedType.Nesting == NestingGroup && val.IsNull() {
+			// we can cheat here and use EmptyValue to get a "zero" value
+			// object, and expect the conversion to turn out the correct final
+			// object type
+			val = cty.EmptyObjectVal
+		}
+
 		val, err := convert.Convert(val, attrConvType)
 		if err != nil {
 			return cty.UnknownVal(impliedType), append(path, cty.GetAttrStep{Name: name}).NewError(err)
diff --git a/internal/configs/configschema/coerce_value_test.go b/internal/configs/configschema/coerce_value_test.go
index 3313bdca9a01..c71828fa816b 100644
--- a/internal/configs/configschema/coerce_value_test.go
+++ b/internal/configs/configschema/coerce_value_test.go
@@ -616,6 +616,54 @@ func TestCoerceValue(t *testing.T) {
 			}),
 			``,
 		},
+		"nested type nulls": {
+			// handle NestedTypes with null
+			&Block{
+				Attributes: map[string]*Attribute{
+					"foo": {
+						NestedType: &Object{
+							Nesting: NestingSingle,
+							Attributes: map[string]*Attribute{
+								"bar": {Type: cty.DynamicPseudoType, Optional: true},
+								"baz": {Type: cty.DynamicPseudoType, Optional: true},
+							},
+						},
+						Optional: true,
+					},
+					"fob": {
+						NestedType: &Object{
+							Nesting: NestingGroup,
+							Attributes: map[string]*Attribute{
+								"bar": {Type: cty.DynamicPseudoType, Optional: true},
+								"baz": {Type: cty.DynamicPseudoType, Computed: true},
+							},
+						},
+						Optional: true,
+					},
+				},
+			},
+			cty.ObjectVal(map[string]cty.Value{
+				"foo": cty.ObjectVal(map[string]cty.Value{
+					"bar": cty.StringVal("test"),
+					"baz": cty.NullVal(cty.Number),
+				}),
+				"fob": cty.ObjectVal(map[string]cty.Value{
+					"bar": cty.NullVal(cty.String),
+					"baz": cty.NullVal(cty.Number),
+				}),
+			}),
+			cty.ObjectVal(map[string]cty.Value{
+				"foo": cty.ObjectVal(map[string]cty.Value{
+					"bar": cty.StringVal("test"),
+					"baz": cty.NullVal(cty.Number),
+				}),
+				"fob": cty.ObjectVal(map[string]cty.Value{
+					"bar": cty.NullVal(cty.String),
+					"baz": cty.NullVal(cty.Number),
+				}),
+			}),
+			``,
+		},
 	}
 
 	for name, test := range tests {
@@ -633,7 +681,6 @@ func TestCoerceValue(t *testing.T) {
 				}
 				return
 			}
-
 			if !gotValue.RawEquals(test.WantValue) {
 				t.Errorf("wrong result\ninput: %#v\ngot:   %#v\nwant:  %#v", test.Input, gotValue, test.WantValue)
 			}
diff --git a/internal/configs/configschema/implied_type.go b/internal/configs/configschema/implied_type.go
index c94c6591ff1a..ced1943d6776 100644
--- a/internal/configs/configschema/implied_type.go
+++ b/internal/configs/configschema/implied_type.go
@@ -138,8 +138,9 @@ func (o *Object) specType() cty.Type {
 	} else {
 		ret = cty.Object(attrTys)
 	}
+
 	switch o.Nesting {
-	case NestingSingle:
+	case NestingSingle, NestingGroup:
 		return ret
 	case NestingList:
 		return cty.List(ret)
diff --git a/internal/configs/configschema/implied_type_test.go b/internal/configs/configschema/implied_type_test.go
index 7dbb611d388d..08887536f887 100644
--- a/internal/configs/configschema/implied_type_test.go
+++ b/internal/configs/configschema/implied_type_test.go
@@ -316,6 +316,25 @@ func TestObjectImpliedType(t *testing.T) {
 				},
 			),
 		},
+		"nesting-group-attributes": {
+			&Object{
+				Nesting: NestingGroup,
+				Attributes: map[string]*Attribute{
+					"optional":          {Type: cty.String, Optional: true},
+					"required":          {Type: cty.Number, Required: true},
+					"computed":          {Type: cty.List(cty.Bool), Computed: true},
+					"optional_computed": {Type: cty.Map(cty.Bool), Optional: true, Computed: true},
+				},
+			},
+			cty.Object(
+				map[string]cty.Type{
+					"optional":          cty.String,
+					"required":          cty.Number,
+					"computed":          cty.List(cty.Bool),
+					"optional_computed": cty.Map(cty.Bool),
+				},
+			),
+		},
 		"nested attributes": {
 			&Object{
 				Nesting: NestingSingle,