diff --git a/internal/lang/funcs/sensitive.go b/internal/lang/funcs/sensitive.go
index 69fd703b90ff..4910e01fbd17 100644
--- a/internal/lang/funcs/sensitive.go
+++ b/internal/lang/funcs/sensitive.go
@@ -70,8 +70,14 @@ var IssensitiveFunc = function.New(&function.Spec{
 		return cty.Bool, nil
 	},
 	Impl: func(args []cty.Value, retType cty.Type) (cty.Value, error) {
-		s := args[0].HasMark(marks.Sensitive)
-		return cty.BoolVal(s), nil
+		switch v := args[0]; {
+		case v.HasMark(marks.Sensitive):
+			return cty.True, nil
+		case !v.IsKnown():
+			return cty.UnknownVal(cty.Bool), nil
+		default:
+			return cty.False, nil
+		}
 	},
 })
 
diff --git a/internal/lang/funcs/sensitive_test.go b/internal/lang/funcs/sensitive_test.go
index 865635e3d35a..bd86252f8c67 100644
--- a/internal/lang/funcs/sensitive_test.go
+++ b/internal/lang/funcs/sensitive_test.go
@@ -166,47 +166,47 @@ func TestNonsensitive(t *testing.T) {
 func TestIssensitive(t *testing.T) {
 	tests := []struct {
 		Input     cty.Value
-		Sensitive bool
+		Sensitive cty.Value
 		WantErr   string
 	}{
 		{
 			cty.NumberIntVal(1).Mark(marks.Sensitive),
-			true,
+			cty.True,
 			``,
 		},
 		{
 			cty.NumberIntVal(1),
-			false,
+			cty.False,
 			``,
 		},
 		{
 			cty.DynamicVal.Mark(marks.Sensitive),
-			true,
+			cty.True,
 			``,
 		},
 		{
 			cty.UnknownVal(cty.String).Mark(marks.Sensitive),
-			true,
+			cty.True,
 			``,
 		},
 		{
 			cty.NullVal(cty.EmptyObject).Mark(marks.Sensitive),
-			true,
+			cty.True,
 			``,
 		},
 		{
 			cty.NullVal(cty.String),
-			false,
+			cty.False,
 			``,
 		},
 		{
 			cty.DynamicVal,
-			false,
+			cty.UnknownVal(cty.Bool),
 			``,
 		},
 		{
 			cty.UnknownVal(cty.String),
-			false,
+			cty.UnknownVal(cty.Bool),
 			``,
 		},
 	}
@@ -227,7 +227,7 @@ func TestIssensitive(t *testing.T) {
 				t.Fatalf("unexpected error: %s", err)
 			}
 
-			if (got.True() && !test.Sensitive) || (got.False() && test.Sensitive) {
+			if !got.RawEquals(test.Sensitive) {
 				t.Errorf("wrong result \ngot:  %#v\nwant: %#v", got, test.Sensitive)
 			}
 		})