diff --git a/pkg/tests/schema_pulumi_test.go b/pkg/tests/schema_pulumi_test.go
index aeeb70f32..3b17a109d 100644
--- a/pkg/tests/schema_pulumi_test.go
+++ b/pkg/tests/schema_pulumi_test.go
@@ -3,10 +3,13 @@ package tests
 import (
 	"context"
 	"fmt"
+	"os"
+	"path/filepath"
 	"testing"
 
 	"github.com/hashicorp/terraform-plugin-sdk/v2/diag"
 	"github.com/hashicorp/terraform-plugin-sdk/v2/helper/schema"
+	"github.com/hexops/autogold/v2"
 	"github.com/pulumi/pulumi-terraform-bridge/v3/pkg/tests/internal/pulcheck"
 	"github.com/pulumi/pulumi/sdk/v3/go/auto/optpreview"
 	"github.com/pulumi/pulumi/sdk/v3/go/auto/optrefresh"
@@ -684,3 +687,726 @@ outputs:
 		})
 	}
 }
+
+func TestUnknownBlocks(t *testing.T) {
+	resMap := map[string]*schema.Resource{
+		"prov_test": {
+			Schema: map[string]*schema.Schema{
+				"test": {
+					Type:     schema.TypeList,
+					Optional: true,
+					Elem: &schema.Resource{
+						Schema: map[string]*schema.Schema{
+							"test_prop": {
+								Type:     schema.TypeString,
+								Optional: true,
+							},
+						},
+					},
+				},
+			},
+		},
+		"prov_nested_test": {
+			Schema: map[string]*schema.Schema{
+				"test": {
+					Type:     schema.TypeList,
+					Optional: true,
+					Elem: &schema.Resource{
+						Schema: map[string]*schema.Schema{
+							"nested_prop": {
+								Type:     schema.TypeList,
+								Optional: true,
+								Elem: &schema.Resource{
+									Schema: map[string]*schema.Schema{
+										"test_prop": {
+											Type:     schema.TypeList,
+											Optional: true,
+											Elem: &schema.Schema{
+												Type: schema.TypeString,
+											},
+										},
+									},
+								},
+							},
+						},
+					},
+				},
+			},
+		},
+		"prov_aux": {
+			Schema: map[string]*schema.Schema{
+				"aux": {
+					Type:     schema.TypeList,
+					Computed: true,
+					Optional: true,
+					Elem: &schema.Resource{
+						Schema: map[string]*schema.Schema{
+							"test_prop": {
+								Type:     schema.TypeString,
+								Computed: true,
+								Optional: true,
+							},
+						},
+					},
+				},
+				"nested_aux": {
+					Type:     schema.TypeList,
+					Optional: true,
+					Computed: true,
+					Elem: &schema.Resource{
+						Schema: map[string]*schema.Schema{
+							"nested_prop": {
+								Type:     schema.TypeList,
+								Optional: true,
+								Computed: true,
+								Elem: &schema.Resource{
+									Schema: map[string]*schema.Schema{
+										"test_prop": {
+											Type:     schema.TypeList,
+											Optional: true,
+											Computed: true,
+											Elem: &schema.Schema{
+												Type: schema.TypeString,
+											},
+										},
+									},
+								},
+							},
+						},
+					},
+				},
+			},
+			CreateContext: func(_ context.Context, d *schema.ResourceData, _ interface{}) diag.Diagnostics {
+				d.SetId("aux")
+				if d.Get("aux") == nil {
+					err := d.Set("aux", []map[string]interface{}{{"test_prop": "aux"}})
+					require.NoError(t, err)
+				}
+				if d.Get("nested_aux") == nil {
+					err := d.Set("nested_aux", []map[string]interface{}{
+						{
+							"nested_prop": []map[string]interface{}{
+								{"test_prop": []string{"aux"}},
+							},
+						},
+					})
+					require.NoError(t, err)
+				}
+				return nil
+			},
+		},
+	}
+	bridgedProvider := pulcheck.BridgedProvider(t, "prov", resMap)
+
+	provTestKnownProgram := `
+name: test
+runtime: yaml
+resources:
+    mainRes:
+        type: prov:index:Test
+        properties:
+            tests:
+                - testProp: "known_val"
+`
+	nestedProvTestKnownProgram := `
+name: test
+runtime: yaml
+resources:
+    mainRes:
+        type: prov:index:NestedTest
+        properties:
+            tests:
+                - nestedProps:
+                    - testProps:
+                        - "known_val"
+`
+
+	for _, tc := range []struct {
+		name                string
+		program             string
+		initialKnownProgram string
+		expectedInitial     autogold.Value
+		expectedUpdate      autogold.Value
+	}{
+		{
+			"list of objects",
+			`
+name: test
+runtime: yaml
+resources:
+    auxRes:
+        type: prov:index:Aux
+        properties:
+            auxes: %s
+            nestedAuxes: %s
+    mainRes:
+        type: prov:index:Test
+        properties:
+            tests: ${auxRes.auxes}
+`,
+			provTestKnownProgram,
+			autogold.Expect(`Previewing update (test):
++ pulumi:pulumi:Stack: (create)
+    [urn=urn:pulumi:test::test::pulumi:pulumi:Stack::test-test]
+    + prov:index/aux:Aux: (create)
+        [urn=urn:pulumi:test::test::prov:index/aux:Aux::auxRes]
+    + prov:index/test:Test: (create)
+        [urn=urn:pulumi:test::test::prov:index/test:Test::mainRes]
+        tests     : [
+            [0]: {}
+        ]
+Resources:
+    + 3 to create
+`),
+			autogold.Expect(`Previewing update (test):
+  pulumi:pulumi:Stack: (same)
+    [urn=urn:pulumi:test::test::pulumi:pulumi:Stack::test-test]
+    + prov:index/aux:Aux: (create)
+        [urn=urn:pulumi:test::test::prov:index/aux:Aux::auxRes]
+    ~ prov:index/test:Test: (update)
+        [id=newid]
+        [urn=urn:pulumi:test::test::prov:index/test:Test::mainRes]
+      ~ tests: [
+          ~ [0]: {
+                  - testProp: "known_val"
+                }
+        ]
+Resources:
+    + 1 to create
+    ~ 1 to update
+    2 changes. 1 unchanged
+`),
+		},
+		{
+			"unknown object",
+			`
+name: test
+runtime: yaml
+resources:
+    auxRes:
+        type: prov:index:Aux
+        properties:
+            auxes: %s
+            nestedAuxes: %s
+    mainRes:
+        type: prov:index:Test
+        properties:
+            tests:
+                - ${auxRes.auxes[0]}
+`,
+			provTestKnownProgram,
+
+			autogold.Expect(`Previewing update (test):
++ pulumi:pulumi:Stack: (create)
+    [urn=urn:pulumi:test::test::pulumi:pulumi:Stack::test-test]
+    + prov:index/aux:Aux: (create)
+        [urn=urn:pulumi:test::test::prov:index/aux:Aux::auxRes]
+    + prov:index/test:Test: (create)
+        [urn=urn:pulumi:test::test::prov:index/test:Test::mainRes]
+        tests     : [
+            [0]: output<string>
+        ]
+Resources:
+    + 3 to create
+`),
+			autogold.Expect(`Previewing update (test):
+  pulumi:pulumi:Stack: (same)
+    [urn=urn:pulumi:test::test::pulumi:pulumi:Stack::test-test]
+    + prov:index/aux:Aux: (create)
+        [urn=urn:pulumi:test::test::prov:index/aux:Aux::auxRes]
+    ~ prov:index/test:Test: (update)
+        [id=newid]
+        [urn=urn:pulumi:test::test::prov:index/test:Test::mainRes]
+      ~ tests: [
+          - [0]: {
+                  - testProp: "known_val"
+                }
+          + [0]: output<string>
+        ]
+Resources:
+    + 1 to create
+    ~ 1 to update
+    2 changes. 1 unchanged
+`),
+		},
+		{
+			"unknown object with others",
+			`
+name: test
+runtime: yaml
+resources:
+    auxRes:
+        type: prov:index:Aux
+        properties:
+            auxes: %s
+            nestedAuxes: %s
+    mainRes:
+        type: prov:index:Test
+        properties:
+            tests:
+                - ${auxRes.auxes[0]}
+                - {"testProp": "val"}
+`,
+			provTestKnownProgram,
+
+			autogold.Expect(`Previewing update (test):
++ pulumi:pulumi:Stack: (create)
+    [urn=urn:pulumi:test::test::pulumi:pulumi:Stack::test-test]
+    + prov:index/aux:Aux: (create)
+        [urn=urn:pulumi:test::test::prov:index/aux:Aux::auxRes]
+    + prov:index/test:Test: (create)
+        [urn=urn:pulumi:test::test::prov:index/test:Test::mainRes]
+        tests     : [
+            [0]: output<string>
+            [1]: {
+                testProp  : "val"
+            }
+        ]
+Resources:
+    + 3 to create
+`),
+			autogold.Expect(`Previewing update (test):
+  pulumi:pulumi:Stack: (same)
+    [urn=urn:pulumi:test::test::pulumi:pulumi:Stack::test-test]
+    + prov:index/aux:Aux: (create)
+        [urn=urn:pulumi:test::test::prov:index/aux:Aux::auxRes]
+    ~ prov:index/test:Test: (update)
+        [id=newid]
+        [urn=urn:pulumi:test::test::prov:index/test:Test::mainRes]
+      ~ tests: [
+          - [0]: {
+                  - testProp: "known_val"
+                }
+          + [0]: output<string>
+          + [1]: {
+                  + testProp  : "val"
+                }
+        ]
+Resources:
+    + 1 to create
+    ~ 1 to update
+    2 changes. 1 unchanged
+`),
+		},
+		{
+			"unknown nested",
+			`
+name: test
+runtime: yaml
+resources:
+    auxRes:
+        type: prov:index:Aux
+        properties:
+            auxes: %s
+            nestedAuxes: %s
+    mainRes:
+        type: prov:index:NestedTest
+        properties:
+            tests: ${auxRes.nestedAuxes}
+`,
+			nestedProvTestKnownProgram,
+			autogold.Expect(`Previewing update (test):
++ pulumi:pulumi:Stack: (create)
+    [urn=urn:pulumi:test::test::pulumi:pulumi:Stack::test-test]
+    + prov:index/aux:Aux: (create)
+        [urn=urn:pulumi:test::test::prov:index/aux:Aux::auxRes]
+    + prov:index/nestedTest:NestedTest: (create)
+        [urn=urn:pulumi:test::test::prov:index/nestedTest:NestedTest::mainRes]
+        tests     : [
+            [0]: {}
+        ]
+Resources:
+    + 3 to create
+`),
+			autogold.Expect(`Previewing update (test):
+  pulumi:pulumi:Stack: (same)
+    [urn=urn:pulumi:test::test::pulumi:pulumi:Stack::test-test]
+    + prov:index/aux:Aux: (create)
+        [urn=urn:pulumi:test::test::prov:index/aux:Aux::auxRes]
+    ~ prov:index/nestedTest:NestedTest: (update)
+        [id=newid]
+        [urn=urn:pulumi:test::test::prov:index/nestedTest:NestedTest::mainRes]
+      ~ tests: [
+          ~ [0]: {
+                  - nestedProps: [
+                  -     [0]: {
+                          - testProps: [
+                          -     [0]: "known_val"
+                            ]
+                        }
+                    ]
+                  - nestedProps: [
+                  -     [0]: {
+                          - testProps: [
+                          -     [0]: "known_val"
+                            ]
+                        }
+                    ]
+                }
+        ]
+Resources:
+    + 1 to create
+    ~ 1 to update
+    2 changes. 1 unchanged
+`),
+		},
+		{
+			"unknown nested level 1",
+			`
+name: test
+runtime: yaml
+resources:
+    auxRes:
+        type: prov:index:Aux
+        properties:
+            auxes: %s
+            nestedAuxes: %s
+    mainRes:
+        type: prov:index:NestedTest
+        properties:
+            tests:
+                - ${auxRes.nestedAuxes[0]}
+`,
+			nestedProvTestKnownProgram,
+			autogold.Expect(`Previewing update (test):
++ pulumi:pulumi:Stack: (create)
+    [urn=urn:pulumi:test::test::pulumi:pulumi:Stack::test-test]
+    + prov:index/aux:Aux: (create)
+        [urn=urn:pulumi:test::test::prov:index/aux:Aux::auxRes]
+    + prov:index/nestedTest:NestedTest: (create)
+        [urn=urn:pulumi:test::test::prov:index/nestedTest:NestedTest::mainRes]
+        tests     : [
+            [0]: output<string>
+        ]
+Resources:
+    + 3 to create
+`),
+			autogold.Expect(`Previewing update (test):
+  pulumi:pulumi:Stack: (same)
+    [urn=urn:pulumi:test::test::pulumi:pulumi:Stack::test-test]
+    + prov:index/aux:Aux: (create)
+        [urn=urn:pulumi:test::test::prov:index/aux:Aux::auxRes]
+    ~ prov:index/nestedTest:NestedTest: (update)
+        [id=newid]
+        [urn=urn:pulumi:test::test::prov:index/nestedTest:NestedTest::mainRes]
+      ~ tests: [
+          - [0]: {
+                  - nestedProps: [
+                  -     [0]: {
+                          - testProps: [
+                          -     [0]: "known_val"
+                            ]
+                        }
+                    ]
+                }
+          + [0]: output<string>
+        ]
+Resources:
+    + 1 to create
+    ~ 1 to update
+    2 changes. 1 unchanged
+`),
+		},
+		{
+			"unknown nested level 2",
+			`
+name: test
+runtime: yaml
+resources:
+    auxRes:
+        type: prov:index:Aux
+        properties:
+            auxes: %s
+            nestedAuxes: %s
+    mainRes:
+        type: prov:index:NestedTest
+        properties:
+            tests:
+                - nestedProps: ${auxRes.nestedAuxes[0].nestedProps}
+`,
+			nestedProvTestKnownProgram,
+			autogold.Expect(`Previewing update (test):
++ pulumi:pulumi:Stack: (create)
+    [urn=urn:pulumi:test::test::pulumi:pulumi:Stack::test-test]
+    + prov:index/aux:Aux: (create)
+        [urn=urn:pulumi:test::test::prov:index/aux:Aux::auxRes]
+    + prov:index/nestedTest:NestedTest: (create)
+        [urn=urn:pulumi:test::test::prov:index/nestedTest:NestedTest::mainRes]
+        tests     : [
+            [0]: {
+                nestedProps: [
+                    [0]: {}
+                ]
+            }
+        ]
+Resources:
+    + 3 to create
+`),
+			autogold.Expect(`Previewing update (test):
+  pulumi:pulumi:Stack: (same)
+    [urn=urn:pulumi:test::test::pulumi:pulumi:Stack::test-test]
+    + prov:index/aux:Aux: (create)
+        [urn=urn:pulumi:test::test::prov:index/aux:Aux::auxRes]
+    ~ prov:index/nestedTest:NestedTest: (update)
+        [id=newid]
+        [urn=urn:pulumi:test::test::prov:index/nestedTest:NestedTest::mainRes]
+      ~ tests: [
+          ~ [0]: {
+                  ~ nestedProps: [
+                      ~ [0]: {
+                              - testProps: [
+                              -     [0]: "known_val"
+                                ]
+                              - testProps: [
+                              -     [0]: "known_val"
+                                ]
+                            }
+                    ]
+                }
+        ]
+Resources:
+    + 1 to create
+    ~ 1 to update
+    2 changes. 1 unchanged
+`),
+		},
+		{
+			"unknown nested level 3",
+			`
+name: test
+runtime: yaml
+resources:
+    auxRes:
+        type: prov:index:Aux
+        properties:
+            auxes: %s
+            nestedAuxes: %s
+    mainRes:
+        type: prov:index:NestedTest
+        properties:
+            tests:
+                - nestedProps:
+                    - ${auxRes.nestedAuxes[0].nestedProps[0]}
+`,
+			nestedProvTestKnownProgram,
+			autogold.Expect(`Previewing update (test):
++ pulumi:pulumi:Stack: (create)
+    [urn=urn:pulumi:test::test::pulumi:pulumi:Stack::test-test]
+    + prov:index/aux:Aux: (create)
+        [urn=urn:pulumi:test::test::prov:index/aux:Aux::auxRes]
+    + prov:index/nestedTest:NestedTest: (create)
+        [urn=urn:pulumi:test::test::prov:index/nestedTest:NestedTest::mainRes]
+        tests     : [
+            [0]: {
+                nestedProps: [
+                    [0]: output<string>
+                ]
+            }
+        ]
+Resources:
+    + 3 to create
+`),
+			autogold.Expect(`Previewing update (test):
+  pulumi:pulumi:Stack: (same)
+    [urn=urn:pulumi:test::test::pulumi:pulumi:Stack::test-test]
+    + prov:index/aux:Aux: (create)
+        [urn=urn:pulumi:test::test::prov:index/aux:Aux::auxRes]
+    ~ prov:index/nestedTest:NestedTest: (update)
+        [id=newid]
+        [urn=urn:pulumi:test::test::prov:index/nestedTest:NestedTest::mainRes]
+      ~ tests: [
+          ~ [0]: {
+                  ~ nestedProps: [
+                      - [0]: {
+                              - testProps: [
+                              -     [0]: "known_val"
+                                ]
+                            }
+                      + [0]: output<string>
+                    ]
+                }
+        ]
+Resources:
+    + 1 to create
+    ~ 1 to update
+    2 changes. 1 unchanged
+`),
+		},
+		{
+			"unknown nested level 4",
+			`
+name: test
+runtime: yaml
+resources:
+    auxRes:
+        type: prov:index:Aux
+        properties:
+            auxes: %s
+            nestedAuxes: %s
+    mainRes:
+        type: prov:index:NestedTest
+        properties:
+            tests:
+                - nestedProps:
+                    - testProps: ${auxRes.nestedAuxes[0].nestedProps[0].testProps}
+`,
+			nestedProvTestKnownProgram,
+			autogold.Expect(`Previewing update (test):
++ pulumi:pulumi:Stack: (create)
+    [urn=urn:pulumi:test::test::pulumi:pulumi:Stack::test-test]
+    + prov:index/aux:Aux: (create)
+        [urn=urn:pulumi:test::test::prov:index/aux:Aux::auxRes]
+    + prov:index/nestedTest:NestedTest: (create)
+        [urn=urn:pulumi:test::test::prov:index/nestedTest:NestedTest::mainRes]
+        tests     : [
+            [0]: {
+                nestedProps: [
+                    [0]: {
+                        testProps : [
+                            [0]: output<string>
+                        ]
+                    }
+                ]
+            }
+        ]
+Resources:
+    + 3 to create
+`),
+			autogold.Expect(`Previewing update (test):
+  pulumi:pulumi:Stack: (same)
+    [urn=urn:pulumi:test::test::pulumi:pulumi:Stack::test-test]
+    + prov:index/aux:Aux: (create)
+        [urn=urn:pulumi:test::test::prov:index/aux:Aux::auxRes]
+    ~ prov:index/nestedTest:NestedTest: (update)
+        [id=newid]
+        [urn=urn:pulumi:test::test::prov:index/nestedTest:NestedTest::mainRes]
+      ~ tests: [
+          ~ [0]: {
+                  ~ nestedProps: [
+                      ~ [0]: {
+                              ~ testProps: [
+                                  ~ [0]: "known_val" => output<string>
+                                ]
+                            }
+                    ]
+                }
+        ]
+Resources:
+    + 1 to create
+    ~ 1 to update
+    2 changes. 1 unchanged
+`),
+		},
+		{
+			"unknown nested level 5",
+			`
+name: test
+runtime: yaml
+resources:
+    auxRes:
+        type: prov:index:Aux
+        properties:
+            auxes: %s
+            nestedAuxes: %s
+    mainRes:
+        type: prov:index:NestedTest
+        properties:
+            tests:
+                - nestedProps:
+                    - testProps:
+                        - ${auxRes.nestedAuxes[0].nestedProps[0].testProps[0]}
+`,
+			nestedProvTestKnownProgram,
+			autogold.Expect(`Previewing update (test):
++ pulumi:pulumi:Stack: (create)
+    [urn=urn:pulumi:test::test::pulumi:pulumi:Stack::test-test]
+    + prov:index/aux:Aux: (create)
+        [urn=urn:pulumi:test::test::prov:index/aux:Aux::auxRes]
+    + prov:index/nestedTest:NestedTest: (create)
+        [urn=urn:pulumi:test::test::prov:index/nestedTest:NestedTest::mainRes]
+        tests     : [
+            [0]: {
+                nestedProps: [
+                    [0]: {
+                        testProps : [
+                            [0]: output<string>
+                        ]
+                    }
+                ]
+            }
+        ]
+Resources:
+    + 3 to create
+`),
+			autogold.Expect(`Previewing update (test):
+  pulumi:pulumi:Stack: (same)
+    [urn=urn:pulumi:test::test::pulumi:pulumi:Stack::test-test]
+    + prov:index/aux:Aux: (create)
+        [urn=urn:pulumi:test::test::prov:index/aux:Aux::auxRes]
+    ~ prov:index/nestedTest:NestedTest: (update)
+        [id=newid]
+        [urn=urn:pulumi:test::test::prov:index/nestedTest:NestedTest::mainRes]
+      ~ tests: [
+          ~ [0]: {
+                  ~ nestedProps: [
+                      ~ [0]: {
+                              ~ testProps: [
+                                  ~ [0]: "known_val" => output<string>
+                                ]
+                            }
+                    ]
+                }
+        ]
+Resources:
+    + 1 to create
+    ~ 1 to update
+    2 changes. 1 unchanged
+`),
+		},
+	} {
+		t.Run(tc.name, func(t *testing.T) {
+			computedProgram := fmt.Sprintf(tc.program, "null", "null")
+
+			t.Run("initial preview", func(t *testing.T) {
+				pt := pulcheck.PulCheck(t, bridgedProvider, computedProgram)
+				res := pt.Preview(optpreview.Diff())
+				t.Logf(res.StdOut)
+
+				tc.expectedInitial.Equal(t, res.StdOut)
+			})
+
+			t.Run("update preview", func(t *testing.T) {
+				t.Skipf("Skipping this test as it this case is not handled by the TF plugin sdk")
+				// The TF plugin SDK does not handle removing an input for a computed value, even if the provider implements it.
+				// The plugin SDK always fills an empty Computed property with the value from the state.
+				// Diff in these cases always returns no diff and the old state value is used.
+				nonComputedProgram := fmt.Sprintf(tc.program, "[{testProp: \"val1\"}]", "[{nestedProps: [{testProps: [\"val1\"]}]}]")
+				pt := pulcheck.PulCheck(t, bridgedProvider, nonComputedProgram)
+				pt.Up()
+
+				pulumiYamlPath := filepath.Join(pt.CurrentStack().Workspace().WorkDir(), "Pulumi.yaml")
+
+				err := os.WriteFile(pulumiYamlPath, []byte(computedProgram), 0o600)
+				require.NoError(t, err)
+
+				res := pt.Preview(optpreview.Diff())
+				t.Logf(res.StdOut)
+				tc.expectedUpdate.Equal(t, res.StdOut)
+			})
+
+			t.Run("update preview with computed", func(t *testing.T) {
+				pt := pulcheck.PulCheck(t, bridgedProvider, tc.initialKnownProgram)
+				pt.Up()
+
+				pulumiYamlPath := filepath.Join(pt.CurrentStack().Workspace().WorkDir(), "Pulumi.yaml")
+
+				err := os.WriteFile(pulumiYamlPath, []byte(computedProgram), 0o600)
+				require.NoError(t, err)
+
+				res := pt.Preview(optpreview.Diff())
+				t.Logf(res.StdOut)
+				tc.expectedUpdate.Equal(t, res.StdOut)
+			})
+		})
+	}
+}