diff --git a/internal/state/errors.go b/internal/state/errors.go
index ebc7d5d9b..792f40d61 100644
--- a/internal/state/errors.go
+++ b/internal/state/errors.go
@@ -1,6 +1,10 @@
 package state
 
-import "fmt"
+import (
+	"fmt"
+
+	"github.com/hashicorp/terraform-ls/internal/job"
+)
 
 type AlreadyExistsError struct {
 	Idx string
@@ -39,3 +43,25 @@ func IsModuleNotFound(err error) bool {
 	_, ok := err.(*ModuleNotFoundError)
 	return ok
 }
+
+type jobAlreadyRunning struct {
+	ID job.ID
+}
+
+func (e jobAlreadyRunning) Error() string {
+	if e.ID != "" {
+		return fmt.Sprintf("job %q is already running", e.ID)
+	}
+	return "job is already running"
+}
+
+type jobNotFound struct {
+	ID job.ID
+}
+
+func (e jobNotFound) Error() string {
+	if e.ID != "" {
+		return fmt.Sprintf("job %q not found", e.ID)
+	}
+	return "job not found"
+}
diff --git a/internal/state/jobs.go b/internal/state/jobs.go
index 894e3c451..a54acb484 100644
--- a/internal/state/jobs.go
+++ b/internal/state/jobs.go
@@ -2,6 +2,7 @@ package state
 
 import (
 	"context"
+	"errors"
 	"fmt"
 	"log"
 	"sync"
@@ -207,10 +208,20 @@ func (js *JobStore) awaitNextJob(ctx context.Context, openDir bool) (job.ID, job
 
 	err = js.markJobAsRunning(sJob)
 	if err != nil {
+		// Although we hold a write db-wide lock when marking job as running
+		// we may still end up passing the same job from the above read-only
+		// transaction, which does *not* hold a db-wide lock.
+		//
+		// Instead of adding more sync primitives here we simply retry.
+		if errors.Is(err, jobAlreadyRunning{ID: sJob.ID}) || errors.Is(err, jobNotFound{ID: sJob.ID}) {
+			js.logger.Printf("retrying next job: %s", err)
+			return js.awaitNextJob(ctx, openDir)
+		}
+
 		return "", job.Job{}, err
 	}
 
-	js.logger.Printf("JOBS: Dispatching next job: %q for %q", sJob.Type, sJob.Dir)
+	js.logger.Printf("JOBS: Dispatching next job %q: %q for %q", sJob.ID, sJob.Type, sJob.Dir)
 	return sJob.ID, sJob.Job, nil
 }
 
@@ -294,6 +305,10 @@ func (js *JobStore) markJobAsRunning(sJob *ScheduledJob) error {
 		return err
 	}
 
+	if sj.State == StateRunning {
+		return jobAlreadyRunning{ID: sJob.ID}
+	}
+
 	_, err = txn.DeleteAll(js.tableName, "id", sJob.ID)
 	if err != nil {
 		return err
@@ -458,5 +473,5 @@ func copyJob(txn *memdb.Txn, id job.ID) (*ScheduledJob, error) {
 		sj := obj.(*ScheduledJob)
 		return sj.Copy(), nil
 	}
-	return nil, fmt.Errorf("%q: job not found", id)
+	return nil, jobNotFound{ID: id}
 }