diff --git a/.changes/v1.11/BUG FIXES-20250206-155025.yaml b/.changes/v1.11/BUG FIXES-20250206-155025.yaml
new file mode 100644
index 000000000000..2c6384ba58ae
--- /dev/null
+++ b/.changes/v1.11/BUG FIXES-20250206-155025.yaml	
@@ -0,0 +1,5 @@
+kind: BUG FIXES
+body: Fixes hanging behavior seen when applying a saved plan with -auto-approve using the cloud backend
+time: 2025-02-06T15:50:25.767607-05:00
+custom:
+  Issue: "36453"
diff --git a/internal/cloud/backend_apply.go b/internal/cloud/backend_apply.go
index 26afd2b13411..27efb6951a45 100644
--- a/internal/cloud/backend_apply.go
+++ b/internal/cloud/backend_apply.go
@@ -83,8 +83,8 @@ func (b *Cloud) opApply(stopCtx, cancelCtx context.Context, op *backendrun.Opera
 
 	var r *tfe.Run
 	var err error
-
-	if cp, ok := op.PlanFile.Cloud(); ok {
+	cp, hasSavedPlanFile := op.PlanFile.Cloud()
+	if hasSavedPlanFile {
 		log.Printf("[TRACE] Loading saved cloud plan for apply")
 		// Check hostname first, for a more actionable error than a generic 404 later
 		if cp.Hostname != b.Hostname {
@@ -182,7 +182,9 @@ func (b *Cloud) opApply(stopCtx, cancelCtx context.Context, op *backendrun.Opera
 	}
 
 	// Do the apply!
-	if !op.AutoApprove && err != errRunApproved {
+	// If we have a saved plan file, we proceed to apply the run without confirmation
+	// regardless of the value of AutoApprove.
+	if (!op.AutoApprove || hasSavedPlanFile) && err != errRunApproved {
 		if err = b.client.Runs.Apply(stopCtx, r.ID, tfe.RunApplyOptions{}); err != nil {
 			return r, b.generalError("Failed to approve the apply command", err)
 		}
diff --git a/internal/cloud/backend_apply_test.go b/internal/cloud/backend_apply_test.go
index b3b73e5a24b0..969b8df31a44 100644
--- a/internal/cloud/backend_apply_test.go
+++ b/internal/cloud/backend_apply_test.go
@@ -508,6 +508,73 @@ func TestCloud_applyWithCloudPlan(t *testing.T) {
 	}
 }
 
+func TestCloud_applyAutoApprove_with_CloudPlan(t *testing.T) {
+	b, bCleanup := testBackendWithName(t)
+	defer bCleanup()
+
+	op, configCleanup, done := testOperationApply(t, "./testdata/apply-json")
+	defer configCleanup()
+	defer done(t)
+
+	op.AutoApprove = true
+	op.UIOut = b.CLI
+	op.Workspace = testBackendSingleWorkspaceName
+
+	mockSROWorkspace(t, b, op.Workspace)
+
+	ws, err := b.client.Workspaces.Read(context.Background(), b.Organization, b.WorkspaceMapping.Name)
+	if err != nil {
+		t.Fatalf("Couldn't read workspace: %s", err)
+	}
+
+	planRun, err := b.plan(context.Background(), context.Background(), op, ws)
+	if err != nil {
+		t.Fatalf("Couldn't perform plan: %s", err)
+	}
+
+	// Synthesize a cloud plan file with the plan's run ID
+	pf := &cloudplan.SavedPlanBookmark{
+		RemotePlanFormat: 1,
+		RunID:            planRun.ID,
+		Hostname:         b.Hostname,
+	}
+	op.PlanFile = planfile.NewWrappedCloud(pf)
+
+	// Start spying on the apply output (now that the plan's done)
+	stream, close := terminal.StreamsForTesting(t)
+
+	b.renderer = &jsonformat.Renderer{
+		Streams:  stream,
+		Colorize: mockColorize(),
+	}
+
+	// Try apply
+	run, err := b.Operation(context.Background(), op)
+	if err != nil {
+		t.Fatalf("error starting operation: %v", err)
+	}
+
+	<-run.Done()
+	output := close(t)
+	if run.Result != backendrun.OperationSuccess {
+		t.Fatal("expected apply operation to succeed")
+	}
+	if run.PlanEmpty {
+		t.Fatalf("expected plan to not be empty")
+	}
+
+	gotOut := output.Stdout()
+	if !strings.Contains(gotOut, "1 added, 0 changed, 0 destroyed") {
+		t.Fatalf("expected apply summary in output: %s", gotOut)
+	}
+
+	stateMgr, _ := b.StateMgr(testBackendSingleWorkspaceName)
+	// An error suggests that the state was not unlocked after apply
+	if _, err := stateMgr.Lock(statemgr.NewLockInfo()); err != nil {
+		t.Fatalf("unexpected error locking state after apply: %s", err.Error())
+	}
+}
+
 func TestCloud_applyWithoutRefresh(t *testing.T) {
 	b, bCleanup := testBackendWithName(t)
 	defer bCleanup()