diff --git a/go.mod b/go.mod
index 3c1bc6891..2feed8a2a 100644
--- a/go.mod
+++ b/go.mod
@@ -19,7 +19,7 @@ require (
 	github.com/hashicorp/terraform-exec v0.16.1
 	github.com/hashicorp/terraform-json v0.13.0
 	github.com/hashicorp/terraform-registry-address v0.0.0-20220422093245-eb7bcc2ff473
-	github.com/hashicorp/terraform-schema v0.0.0-20220425141842-cda625299dc9
+	github.com/hashicorp/terraform-schema v0.0.0-20220509053855-1e3acbcfd531
 	github.com/kylelemons/godebug v1.1.0 // indirect
 	github.com/mh-cbon/go-fmt-fail v0.0.0-20160815164508-67765b3fbcb5
 	github.com/mitchellh/cli v1.1.3
diff --git a/go.sum b/go.sum
index 9a15bc9c0..3531c405b 100644
--- a/go.sum
+++ b/go.sum
@@ -326,8 +326,8 @@ github.com/hashicorp/terraform-json v0.13.0 h1:Li9L+lKD1FO5RVFRM1mMMIBDoUHslOniy
 github.com/hashicorp/terraform-json v0.13.0/go.mod h1:y5OdLBCT+rxbwnpxZs9kGL7R9ExU76+cpdY8zHwoazk=
 github.com/hashicorp/terraform-registry-address v0.0.0-20220422093245-eb7bcc2ff473 h1:Vp3YMcnM+TvVMV5TplAhGeuzz3A0562AywL32y71y3Y=
 github.com/hashicorp/terraform-registry-address v0.0.0-20220422093245-eb7bcc2ff473/go.mod h1:bdLC+qQlJIBHKbCMA6GipcuaKjmjcvZlnVdpU583z3Y=
-github.com/hashicorp/terraform-schema v0.0.0-20220425141842-cda625299dc9 h1:lnwLYkgs6ot8QCcoLodn50IjjV0yG/vGeZDVMCVBwp0=
-github.com/hashicorp/terraform-schema v0.0.0-20220425141842-cda625299dc9/go.mod h1:R6g3l4kOXPSYVNIKt330PHRXmjVqmI2PEITTBZeGtrk=
+github.com/hashicorp/terraform-schema v0.0.0-20220509053855-1e3acbcfd531 h1:CVBByNVwgdRBKz6hdrL547Rw6RU4QF7sDnxvISdoBxM=
+github.com/hashicorp/terraform-schema v0.0.0-20220509053855-1e3acbcfd531/go.mod h1:rLQP6aOmOcA+C68h3Ea7utboW/UWwgn5m8i/pE5rm28=
 github.com/hashicorp/terraform-svchost v0.0.0-20200729002733-f050f53b9734 h1:HKLsbzeOsfXmKNpr3GiT18XAblV0BjCbzL8KQAMZGa0=
 github.com/hashicorp/terraform-svchost v0.0.0-20200729002733-f050f53b9734/go.mod h1:kNDNcF7sN4DocDLBkQYz73HGKwN1ANB1blq4lIYLYvg=
 github.com/huandu/xstrings v1.3.1/go.mod h1:y5/lhBue+AyNmUVz9RLU9xbLR0o4KIIExikq4ovT0aE=
diff --git a/internal/decoder/module_schema.go b/internal/decoder/module_schema.go
index 3e6163caa..b6b5b60b0 100644
--- a/internal/decoder/module_schema.go
+++ b/internal/decoder/module_schema.go
@@ -37,6 +37,7 @@ func schemaForModule(mod *state.Module, schemaReader state.SchemaReader, modRead
 		ProviderReferences:   mod.Meta.ProviderReferences,
 		Variables:            mod.Meta.Variables,
 		Filenames:            mod.Meta.Filenames,
+		ModuleCalls:          mod.Meta.ModuleCalls,
 	}
 
 	return sm.SchemaForModule(meta)
diff --git a/internal/decoder/path_reader.go b/internal/decoder/path_reader.go
index ef35749b1..c55e7e772 100644
--- a/internal/decoder/path_reader.go
+++ b/internal/decoder/path_reader.go
@@ -14,7 +14,7 @@ import (
 type ModuleReader interface {
 	ModuleByPath(modPath string) (*state.Module, error)
 	List() ([]*state.Module, error)
-	ModuleCalls(modPath string) ([]tfmod.ModuleCall, error)
+	ModuleCalls(modPath string) (tfmod.ModuleCalls, error)
 	ModuleMeta(modPath string) (*tfmod.Meta, error)
 }
 
diff --git a/internal/state/module.go b/internal/state/module.go
index 28b941109..2d4d9665d 100644
--- a/internal/state/module.go
+++ b/internal/state/module.go
@@ -23,6 +23,7 @@ type ModuleMetadata struct {
 	Variables            map[string]tfmod.Variable
 	Outputs              map[string]tfmod.Output
 	Filenames            []string
+	ModuleCalls          map[string]tfmod.DeclaredModuleCall
 }
 
 func (mm ModuleMetadata) Copy() ModuleMetadata {
@@ -68,6 +69,13 @@ func (mm ModuleMetadata) Copy() ModuleMetadata {
 		}
 	}
 
+	if mm.ModuleCalls != nil {
+		newMm.ModuleCalls = make(map[string]tfmod.DeclaredModuleCall, len(mm.ModuleCalls))
+		for name, moduleCall := range mm.ModuleCalls {
+			newMm.ModuleCalls[name] = moduleCall
+		}
+	}
+
 	return newMm
 }
 
@@ -306,25 +314,40 @@ func (s *ModuleStore) ModuleByPath(path string) (*Module, error) {
 	return mod, nil
 }
 
-func (s *ModuleStore) ModuleCalls(modPath string) ([]tfmod.ModuleCall, error) {
-	result := make([]tfmod.ModuleCall, 0)
-	modList, err := s.List()
-	for _, mod := range modList {
-		if mod.ModManifest != nil {
-			for _, record := range mod.ModManifest.Records {
-				if record.IsRoot() {
-					continue
-				}
-				result = append(result, tfmod.ModuleCall{
-					LocalName:  record.Key,
-					SourceAddr: record.SourceAddr,
-					Version:    record.VersionStr,
-					Path:       filepath.Join(modPath, record.Dir),
-				})
+func (s *ModuleStore) ModuleCalls(modPath string) (tfmod.ModuleCalls, error) {
+	mod, err := s.ModuleByPath(modPath)
+	if err != nil {
+		return tfmod.ModuleCalls{}, err
+	}
+
+	modCalls := tfmod.ModuleCalls{
+		Installed: make(map[string]tfmod.InstalledModuleCall),
+		Declared:  make(map[string]tfmod.DeclaredModuleCall),
+	}
+
+	if mod.ModManifest != nil {
+		for _, record := range mod.ModManifest.Records {
+			if record.IsRoot() {
+				continue
+			}
+			modCalls.Installed[record.Key] = tfmod.InstalledModuleCall{
+				LocalName:  record.Key,
+				SourceAddr: record.SourceAddr,
+				Version:    record.Version,
+				Path:       filepath.Join(modPath, record.Dir),
 			}
 		}
 	}
-	return result, err
+
+	for _, mc := range mod.Meta.ModuleCalls {
+		modCalls.Declared[mc.LocalName] = tfmod.DeclaredModuleCall{
+			LocalName:  mc.LocalName,
+			SourceAddr: mc.SourceAddr,
+			Version:    mc.Version,
+		}
+	}
+
+	return modCalls, err
 }
 
 func (s *ModuleStore) ModuleMeta(modPath string) (*tfmod.Meta, error) {
@@ -340,6 +363,7 @@ func (s *ModuleStore) ModuleMeta(modPath string) (*tfmod.Meta, error) {
 		Variables:            mod.Meta.Variables,
 		Outputs:              mod.Meta.Outputs,
 		Filenames:            mod.Meta.Filenames,
+		ModuleCalls:          mod.Meta.ModuleCalls,
 	}, nil
 }
 
@@ -705,6 +729,7 @@ func (s *ModuleStore) UpdateMetadata(path string, meta *tfmod.Meta, mErr error)
 		Variables:            meta.Variables,
 		Outputs:              meta.Outputs,
 		Filenames:            meta.Filenames,
+		ModuleCalls:          meta.ModuleCalls,
 	}
 	mod.MetaErr = mErr
 
diff --git a/internal/state/state.go b/internal/state/state.go
index 383009be2..0626ef150 100644
--- a/internal/state/state.go
+++ b/internal/state/state.go
@@ -192,7 +192,7 @@ type ModuleReader interface {
 }
 
 type ModuleCallReader interface {
-	ModuleCalls(modPath string) ([]tfmod.ModuleCall, error)
+	ModuleCalls(modPath string) (tfmod.ModuleCalls, error)
 	ModuleMeta(modPath string) (*tfmod.Meta, error)
 }
 
diff --git a/internal/terraform/module/watcher.go b/internal/terraform/module/watcher.go
index fe136eff1..09141c210 100644
--- a/internal/terraform/module/watcher.go
+++ b/internal/terraform/module/watcher.go
@@ -365,7 +365,9 @@ func decodeCalledModulesFunc(fs ReadOnlyFS, modStore *state.ModuleStore, schemaR
 			return
 		}
 
-		for _, mc := range moduleCalls {
+		// TODO: walk through declared modules too - maybe deduplicated?
+
+		for _, mc := range moduleCalls.Installed {
 			fi, err := os.Stat(mc.Path)
 			if err != nil || !fi.IsDir() {
 				continue