diff --git a/server/core/runtime/apply_step_runner.go b/server/core/runtime/apply_step_runner.go
index d4bcd90c69..0f9d5458d8 100644
--- a/server/core/runtime/apply_step_runner.go
+++ b/server/core/runtime/apply_step_runner.go
@@ -16,11 +16,17 @@ import (
 // ApplyStepRunner runs `terraform apply`.
 type ApplyStepRunner struct {
 	TerraformExecutor   TerraformExec
+	DefaultTFVersion    *version.Version
 	CommitStatusUpdater StatusUpdater
 	AsyncTFExec         AsyncTFExec
 }
 
 func (a *ApplyStepRunner) Run(ctx models.ProjectCommandContext, extraArgs []string, path string, envs map[string]string) (string, error) {
+	tfVersion := a.DefaultTFVersion
+	if ctx.TerraformVersion != nil {
+		tfVersion = ctx.TerraformVersion
+	}
+
 	if a.hasTargetFlag(ctx, extraArgs) {
 		return "", errors.New("cannot run apply with -target because we are applying an already generated plan. Instead, run -target with atlantis plan")
 	}
@@ -40,7 +46,7 @@ func (a *ApplyStepRunner) Run(ctx models.ProjectCommandContext, extraArgs []stri
 	// TODO: Leverage PlanTypeStepRunnerDelegate here
 	if IsRemotePlan(contents) {
 		args := append(append([]string{"apply", "-input=false", "-no-color"}, extraArgs...), ctx.EscapedCommentArgs...)
-		out, err = a.runRemoteApply(ctx, args, path, planPath, ctx.TerraformVersion, envs)
+		out, err = a.runRemoteApply(ctx, args, path, planPath, tfVersion, envs)
 		if err == nil {
 			out = a.cleanRemoteApplyOutput(out)
 		}
@@ -48,7 +54,7 @@ func (a *ApplyStepRunner) Run(ctx models.ProjectCommandContext, extraArgs []stri
 		// NOTE: we need to quote the plan path because Bitbucket Server can
 		// have spaces in its repo owner names which is part of the path.
 		args := append(append(append([]string{"apply", "-input=false", "-no-color"}, extraArgs...), ctx.EscapedCommentArgs...), fmt.Sprintf("%q", planPath))
-		out, err = a.TerraformExecutor.RunCommandWithVersion(ctx.Log, path, args, envs, ctx.TerraformVersion, ctx.Workspace)
+		out, err = a.TerraformExecutor.RunCommandWithVersion(ctx.Log, path, args, envs, tfVersion, ctx.Workspace)
 	}
 
 	// If the apply was successful, delete the plan.
diff --git a/server/server.go b/server/server.go
index 94ce797039..7d1e6af36b 100644
--- a/server/server.go
+++ b/server/server.go
@@ -487,6 +487,7 @@ func NewServer(userConfig UserConfig, config Config) (*Server, error) {
 		PolicyCheckStepRunner: policyCheckRunner,
 		ApplyStepRunner: &runtime.ApplyStepRunner{
 			TerraformExecutor:   terraformClient,
+			DefaultTFVersion:    defaultTfVersion,
 			CommitStatusUpdater: commitStatusUpdater,
 			AsyncTFExec:         terraformClient,
 		},