diff --git a/pkg/tfbridge/provider.go b/pkg/tfbridge/provider.go
index 5144271e3..3922b1b6c 100644
--- a/pkg/tfbridge/provider.go
+++ b/pkg/tfbridge/provider.go
@@ -960,7 +960,7 @@ func (p *Provider) Diff(ctx context.Context, req *pulumirpc.DiffRequest) (*pulum
 	// We will still use `detailedDiff` for diff display purposes.
 
 	// See also https://github.com/pulumi/pulumi-terraform-bridge/issues/1501.
-	if p.info.XSkipDetailedDiffForChanges && len(diff.Attributes()) > 0 {
+	if p.info.XSkipDetailedDiffForChanges && !diff.HasNoChanges() {
 		changes = pulumirpc.DiffResponse_DIFF_SOME
 		// Perhaps collectionDiffs can shed some light and locate the changes to the end-user.
 		for path, diff := range dd.collectionDiffs {
diff --git a/pkg/tfbridge/tests/provider_test.go b/pkg/tfbridge/tests/provider_test.go
index c7296ed85..02c1cf0a1 100644
--- a/pkg/tfbridge/tests/provider_test.go
+++ b/pkg/tfbridge/tests/provider_test.go
@@ -3,6 +3,7 @@ package tfbridgetests
 import (
 	"context"
 	"encoding/json"
+	"fmt"
 	"io"
 	"testing"
 
@@ -68,6 +69,136 @@ func TestWithNewTestProvider(t *testing.T) {
 	`)
 }
 
+func TestReproMinimalDiffCycle(t *testing.T) {
+	customResponseSchema := func() *schema.Schema {
+		return &schema.Schema{
+			Type:     schema.TypeList,
+			Optional: true,
+			MaxItems: 1,
+			Elem: &schema.Resource{
+				Schema: map[string]*schema.Schema{
+					"custom_response_body_key": {
+						Type:     schema.TypeString,
+						Optional: true,
+					},
+				},
+			},
+		}
+	}
+	blockConfigSchema := func() *schema.Schema {
+		return &schema.Schema{
+			Type:     schema.TypeList,
+			Optional: true,
+			MaxItems: 1,
+			Elem: &schema.Resource{
+				Schema: map[string]*schema.Schema{
+					"custom_response": customResponseSchema(),
+				},
+			},
+		}
+	}
+	ruleElement := &schema.Resource{
+		Schema: map[string]*schema.Schema{
+			"action": {
+				Type:     schema.TypeList,
+				Optional: true,
+				MaxItems: 1,
+				Elem: &schema.Resource{
+					Schema: map[string]*schema.Schema{
+						"block": blockConfigSchema(),
+					},
+				},
+			},
+		},
+	}
+
+	resource := &schema.Resource{
+		Schema: map[string]*schema.Schema{
+			"rule": {
+				Type:     schema.TypeSet,
+				Optional: true,
+				Elem:     ruleElement,
+			},
+		},
+	}
+
+	// Here i may receive maps or slices over base types and *schema.Set which is not friendly to diffing.
+	resource.Schema["rule"].Set = func(i interface{}) int {
+		actual := schema.HashResource(resource.Schema["rule"].Elem.(*schema.Resource))(i)
+		fmt.Printf("hashing %#v as %d\n", i, actual)
+		return actual
+	}
+	ctx := context.Background()
+	p := newTestProvider(ctx, tfbridge.ProviderInfo{
+		P: shimv2.NewProvider(&schema.Provider{
+			Schema: map[string]*schema.Schema{},
+			ResourcesMap: map[string]*schema.Resource{
+				"example_resource": resource,
+			},
+		}, shimv2.WithPlanResourceChange(func(tfResourceType string) bool {
+			return true
+		})),
+		Name:           "testprov",
+		ResourcePrefix: "example",
+		Resources: map[string]*tfbridge.ResourceInfo{
+			"example_resource": {Tok: "testprov:index:ExampleResource"},
+		},
+	}, newTestProviderOptions{})
+
+	replay.Replay(t, p, `
+	{
+	  "method": "/pulumirpc.ResourceProvider/Diff",
+	  "request": {
+	    "id": "newid",
+	    "urn": "urn:pulumi:test::project::testprov:index:ExampleResource::example",
+	    "olds": {
+	      "id": "newid",
+	      "rules": [
+		{
+		  "action": {
+		    "block": {
+		      "customResponse": null
+		    }
+		  }
+		}
+	      ]
+	    },
+	    "news": {
+	      "__defaults": [],
+	      "rules": [
+		{
+		  "__defaults": [],
+		  "action": {
+		    "__defaults": [],
+		    "block": {
+		      "__defaults": []
+		    }
+		  }
+		}
+	      ]
+	    },
+	    "oldInputs": {
+	      "__defaults": [],
+	      "rules": [
+		{
+		  "__defaults": [],
+		  "action": {
+		    "__defaults": [],
+		    "block": {
+		      "__defaults": []
+		    }
+		  }
+		}
+	      ]
+	    }
+	  },
+	  "response": {
+	    "changes": "DIFF_NONE",
+	    "hasDetailedDiff": true
+	  }
+	}`)
+}
+
 func nilSink() diag.Sink {
 	nilSink := diag.DefaultSink(io.Discard, io.Discard, diag.FormatOptions{
 		Color: colors.Never,
diff --git a/pkg/tfshim/sdk-v1/instance_diff.go b/pkg/tfshim/sdk-v1/instance_diff.go
index d347a1dc7..2badd8c27 100644
--- a/pkg/tfshim/sdk-v1/instance_diff.go
+++ b/pkg/tfshim/sdk-v1/instance_diff.go
@@ -57,6 +57,10 @@ func (d v1InstanceDiff) Attribute(key string) *shim.ResourceAttrDiff {
 	return resourceAttrDiffToShim(d.tf.Attributes[key])
 }
 
+func (d v1InstanceDiff) HasNoChanges() bool {
+	return len(d.Attributes()) == 0
+}
+
 func (d v1InstanceDiff) Attributes() map[string]shim.ResourceAttrDiff {
 	m := map[string]shim.ResourceAttrDiff{}
 	for k, v := range d.tf.Attributes {
diff --git a/pkg/tfshim/sdk-v2/instance_diff.go b/pkg/tfshim/sdk-v2/instance_diff.go
index aaac5c00f..c12ad306a 100644
--- a/pkg/tfshim/sdk-v2/instance_diff.go
+++ b/pkg/tfshim/sdk-v2/instance_diff.go
@@ -46,6 +46,10 @@ func (d v2InstanceDiff) Attribute(key string) *shim.ResourceAttrDiff {
 	return resourceAttrDiffToShim(d.tf.Attributes[key])
 }
 
+func (d v2InstanceDiff) HasNoChanges() bool {
+	return len(d.Attributes()) == 0
+}
+
 func (d v2InstanceDiff) Attributes() map[string]shim.ResourceAttrDiff {
 	m := map[string]shim.ResourceAttrDiff{}
 	for k, v := range d.tf.Attributes {
diff --git a/pkg/tfshim/sdk-v2/provider2.go b/pkg/tfshim/sdk-v2/provider2.go
index e4428670e..627eeb8bc 100644
--- a/pkg/tfshim/sdk-v2/provider2.go
+++ b/pkg/tfshim/sdk-v2/provider2.go
@@ -444,6 +444,17 @@ func (s *grpcServer) PlanResourceChange(
 	if err != nil {
 		return nil, err
 	}
+
+	// There are cases where planned state is equal to the original state, but InstanceDiff still displays changes.
+	// Pulumi considers this to be a no-change diff, and as a workaround here any InstanceDiff changes are deleted
+	// and ignored (simlar to processIgnoreChanges).
+	//
+	// See pulumi/pulumi-aws#3880
+	same := plannedState.Equals(priorState)
+	if same.IsKnown() && same.True() {
+		resp.InstanceDiff.Attributes = map[string]*terraform.ResourceAttrDiff{}
+	}
+
 	var meta map[string]interface{}
 	if resp.PlannedPrivate != nil {
 		if err := json.Unmarshal(resp.PlannedPrivate, &meta); err != nil {
diff --git a/pkg/tfshim/shim.go b/pkg/tfshim/shim.go
index 38b7175b5..23b3f4161 100644
--- a/pkg/tfshim/shim.go
+++ b/pkg/tfshim/shim.go
@@ -43,7 +43,7 @@ type ResourceAttrDiff struct {
 
 type InstanceDiff interface {
 	Attribute(key string) *ResourceAttrDiff
-	Attributes() map[string]ResourceAttrDiff
+	HasNoChanges() bool
 	ProposedState(res Resource, priorState InstanceState) (InstanceState, error)
 	Destroy() bool
 	RequiresNew() bool
diff --git a/pkg/tfshim/tfplugin5/instance_diff.go b/pkg/tfshim/tfplugin5/instance_diff.go
index 75f6d206c..c8848f6cb 100644
--- a/pkg/tfshim/tfplugin5/instance_diff.go
+++ b/pkg/tfshim/tfplugin5/instance_diff.go
@@ -63,6 +63,10 @@ func (d *instanceDiff) Attributes() map[string]shim.ResourceAttrDiff {
 	return d.attributes
 }
 
+func (d *instanceDiff) HasNoChanges() bool {
+	return len(d.attributes) == 0
+}
+
 func (d *instanceDiff) ProposedState(res shim.Resource, priorState shim.InstanceState) (shim.InstanceState, error) {
 	plannedObject, err := ctyToGo(d.planned)
 	if err != nil {
diff --git a/pkg/tfshim/tfplugin5/provider_test.go b/pkg/tfshim/tfplugin5/provider_test.go
index 06adfc438..0865bf506 100644
--- a/pkg/tfshim/tfplugin5/provider_test.go
+++ b/pkg/tfshim/tfplugin5/provider_test.go
@@ -1180,7 +1180,7 @@ func TestApply(t *testing.T) {
 			diff, err := p.Diff(ctx, "example_resource", state, config, shim.DiffOptions{})
 			require.NoError(t, err)
 
-			if len(diff.Attributes()) == 0 {
+			if diff.HasNoChanges() {
 				return
 			}