diff --git a/integration_test.go b/integration_test.go
index 93f829da5..0456c0caf 100644
--- a/integration_test.go
+++ b/integration_test.go
@@ -36,6 +36,7 @@ package main
 
 import (
 	"fmt"
+	"github.com/OctopusDeploy/go-octopusdeploy/v2/pkg/deployments"
 	"os"
 	"path/filepath"
 	"sort"
@@ -3410,3 +3411,64 @@ func TestVariableResource(t *testing.T) {
 		return nil
 	})
 }
+
+// TestTerraformApplyStepWithWorkerPool verifies that a terraform apply step with a custom worker pool is deployed successfully
+// See https://github.com/OctopusDeployLabs/terraform-provider-octopusdeploy/issues/601
+func TestTerraformApplyStepWithWorkerPool(t *testing.T) {
+	testFramework := test.OctopusContainerTest{}
+	testFramework.ArrangeTest(t, func(t *testing.T, container *test.OctopusContainer, spaceClient *client.Client) error {
+		// Act
+		newSpaceId, err := testFramework.Act(t, container, "./terraform", "50-applyterraformtemplateaction", []string{})
+
+		if err != nil {
+			return err
+		}
+
+		// Assert
+		client, err := octoclient.CreateClient(container.URI, newSpaceId, test.ApiKey)
+		query := projects.ProjectsQuery{
+			PartialName: "Test",
+			Skip:        0,
+			Take:        1,
+		}
+
+		resources, err := projects.Get(client, newSpaceId, query)
+		if err != nil {
+			return err
+		}
+
+		if len(resources.Items) == 0 {
+			t.Fatalf("Space must have a project called \"Test\"")
+		}
+		resource := resources.Items[0]
+
+		// Get worker pool
+		wpQuery := workerpools.WorkerPoolsQuery{
+			PartialName: "Docker",
+			Skip:        0,
+			Take:        1,
+		}
+
+		workerpools, err := workerpools.Get(client, newSpaceId, wpQuery)
+		if err != nil {
+			return err
+		}
+
+		if len(workerpools.Items) == 0 {
+			t.Fatalf("Space must have a worker pool called \"Docker\"")
+		}
+
+		// Get deployment process
+		process, err := deployments.GetDeploymentProcessByID(client, "", resource.DeploymentProcessID)
+		if err != nil {
+			return err
+		}
+
+		// Worker pool must be assigned
+		if process.Steps[0].Actions[0].WorkerPool != workerpools.Items[0].GetID() {
+			t.Fatalf("Action must use the worker pool \"Docker\"")
+		}
+
+		return nil
+	})
+}
diff --git a/octopusdeploy/schema_action_apply_terraform_template.go b/octopusdeploy/schema_action_apply_terraform_template.go
index 41c914d6d..55bdd1a4e 100644
--- a/octopusdeploy/schema_action_apply_terraform_template.go
+++ b/octopusdeploy/schema_action_apply_terraform_template.go
@@ -524,6 +524,14 @@ func flattenApplyTerraformTemplateAction(action *deployments.DeploymentAction) m
 		}
 	}
 
+	if len(action.WorkerPool) > 0 {
+		flattenedAction["worker_pool_id"] = action.WorkerPool
+	}
+
+	if len(action.WorkerPoolVariable) > 0 {
+		flattenedAction["worker_pool_variable"] = action.WorkerPoolVariable
+	}
+
 	flattenedAction["advanced_options"] = flattenTerraformTemplateAdvancedOptions(action.Properties)
 
 	return flattenedAction
@@ -539,6 +547,8 @@ func getApplyTerraformTemplateActionSchema() *schema.Schema {
 	addTerraformTemplateParametersSchema(element)
 	addTerraformTemplateSchema(element)
 	addTerraformInlineTemplateSchema(element)
+	addWorkerPoolSchema(element)
+	addWorkerPoolVariableSchema(element)
 	addPrimaryPackageSchema(element, false)
 
 	return actionSchema
diff --git a/terraform/50-applyterraformtemplateaction/config.tf b/terraform/50-applyterraformtemplateaction/config.tf
new file mode 100644
index 000000000..8a9eaf8a9
--- /dev/null
+++ b/terraform/50-applyterraformtemplateaction/config.tf
@@ -0,0 +1,7 @@
+terraform {
+  required_providers {
+    octopusdeploy = { source = "OctopusDeployLabs/octopusdeploy", version = "0.11.3" }
+    // Use the option below when debugging
+    // octopusdeploy = { source = "octopus.com/com/octopusdeploy" }
+  }
+}
diff --git a/terraform/50-applyterraformtemplateaction/project.tf b/terraform/50-applyterraformtemplateaction/project.tf
new file mode 100644
index 000000000..afdf08a17
--- /dev/null
+++ b/terraform/50-applyterraformtemplateaction/project.tf
@@ -0,0 +1,101 @@
+data "octopusdeploy_lifecycles" "lifecycle_default_lifecycle" {
+  ids          = null
+  partial_name = "Default Lifecycle"
+  skip         = 0
+  take         = 1
+}
+
+data "octopusdeploy_feeds" "feed_octopus_server__built_in_" {
+  feed_type    = "BuiltIn"
+  ids          = null
+  partial_name = ""
+  skip         = 0
+  take         = 1
+  lifecycle {
+    postcondition {
+      error_message = "Failed to resolve a feed called \"BuiltIn\". This resource must exist in the space before this Terraform configuration is applied."
+      condition     = length(self.feeds) != 0
+    }
+  }
+}
+
+resource "octopusdeploy_project" "deploy_frontend_project" {
+  auto_create_release                  = false
+  default_guided_failure_mode          = "EnvironmentDefault"
+  default_to_skip_if_already_installed = false
+  description                          = "Test project"
+  discrete_channel_release             = false
+  is_disabled                          = false
+  is_discrete_channel_release          = false
+  is_version_controlled                = false
+  lifecycle_id                         = data.octopusdeploy_lifecycles.lifecycle_default_lifecycle.lifecycles[0].id
+  name                                 = "Test"
+  project_group_id                     = octopusdeploy_project_group.project_group_test.id
+  tenanted_deployment_participation    = "Untenanted"
+  space_id                             = var.octopus_space_id
+  included_library_variable_sets       = []
+  versioning_strategy {
+    template = "#{Octopus.Version.LastMajor}.#{Octopus.Version.LastMinor}.#{Octopus.Version.LastPatch}.#{Octopus.Version.NextRevision}"
+  }
+
+  connectivity_policy {
+    allow_deployments_to_no_targets = false
+    exclude_unhealthy_targets       = false
+    skip_machine_behavior           = "SkipUnavailableMachines"
+  }
+}
+
+resource "octopusdeploy_deployment_process" "deployment_process_terraform_apply" {
+  project_id = "${octopusdeploy_project.deploy_frontend_project.id}"
+
+  step {
+    condition           = "Success"
+    name                = "Apply a Terraform template"
+    package_requirement = "LetOctopusDecide"
+    start_trigger       = "StartAfterPrevious"
+
+    apply_terraform_template_action {
+      name                               = "Terraform Apply"
+      can_be_used_for_project_versioning = true
+      channels                           = []
+      condition                          = "Success"
+      environments                       = []
+      advanced_options {
+        allow_additional_plugin_downloads = true
+        apply_parameters                  = ""
+        init_parameters                   = ""
+        plugin_cache_directory            = ""
+        workspace                         = ""
+      }
+      is_disabled = false
+      is_required = false
+
+      inline_template = "variable \"images\" {\n  type = \"map\"\n\n  default = {\n    us-east-1 = \"image-1234\"\n    us-west-2 = \"image-4567\"\n  }\n}\n\nvariable \"test2\" {\n  type    = \"map\"\n  default = {\n    val1 = [\"hi\"]\n  }\n}\n\nvariable \"test3\" {\n  type    = \"map\"\n  default = {\n    val1 = {\n      val2 = \"hi\"\n    }\n  }\n}\n\nvariable \"test4\" {\n  type    = \"map\"\n  default = {\n    val1 = {\n      val2 = [\"hi\"]\n    }\n  }\n}\n\n# Example of getting an element from a list in a map\noutput \"nestedlist\" {\n  value = \"$${element(var.test2[\"val1\"], 0)}\"\n}\n\n# Example of getting an element from a nested map\noutput \"nestedmap\" {\n  value = \"$${lookup(var.test3[\"val1\"], \"val2\")}\"\n}"
+
+      primary_package {
+        acquisition_location = "Server"
+        package_id           = "Test"
+        feed_id              = "${data.octopusdeploy_feeds.feed_octopus_server__built_in_.feeds[0].id}"
+
+        properties = {
+          "SelectionMode" = "immediate"
+        }
+      }
+
+      template {
+        additional_variable_files       = ""
+        directory                       = ""
+        run_automatic_file_substitution = true
+        target_files                    = ""
+      }
+
+      worker_pool_id = octopusdeploy_static_worker_pool.workerpool_docker.id
+      run_on_server = true
+      sort_order    = 1
+    }
+
+    properties   = {}
+    target_roles = []
+  }
+  depends_on = []
+}
\ No newline at end of file
diff --git a/terraform/50-applyterraformtemplateaction/project_group_test.tf b/terraform/50-applyterraformtemplateaction/project_group_test.tf
new file mode 100644
index 000000000..438a4f9c7
--- /dev/null
+++ b/terraform/50-applyterraformtemplateaction/project_group_test.tf
@@ -0,0 +1,4 @@
+resource "octopusdeploy_project_group" "project_group_test" {
+  name        = "Test"
+  description = "Test Description"
+}
diff --git a/terraform/50-applyterraformtemplateaction/provider.tf b/terraform/50-applyterraformtemplateaction/provider.tf
new file mode 100644
index 000000000..a04197720
--- /dev/null
+++ b/terraform/50-applyterraformtemplateaction/provider.tf
@@ -0,0 +1,5 @@
+provider "octopusdeploy" {
+  address  = "${var.octopus_server}"
+  api_key  = "${var.octopus_apikey}"
+  space_id = "${var.octopus_space_id}"
+}
diff --git a/terraform/50-applyterraformtemplateaction/provider_vars.tf b/terraform/50-applyterraformtemplateaction/provider_vars.tf
new file mode 100644
index 000000000..c7d93fe40
--- /dev/null
+++ b/terraform/50-applyterraformtemplateaction/provider_vars.tf
@@ -0,0 +1,18 @@
+variable "octopus_server" {
+  type        = string
+  nullable    = false
+  sensitive   = false
+  description = "The URL of the Octopus server e.g. https://myinstance.octopus.app."
+}
+variable "octopus_apikey" {
+  type        = string
+  nullable    = false
+  sensitive   = true
+  description = "The API key used to access the Octopus server. See https://octopus.com/docs/octopus-rest-api/how-to-create-an-api-key for details on creating an API key."
+}
+variable "octopus_space_id" {
+  type        = string
+  nullable    = false
+  sensitive   = false
+  description = "The space ID to populate"
+}
diff --git a/terraform/50-applyterraformtemplateaction/space.tf b/terraform/50-applyterraformtemplateaction/space.tf
new file mode 100644
index 000000000..ee59bdc80
--- /dev/null
+++ b/terraform/50-applyterraformtemplateaction/space.tf
@@ -0,0 +1,3 @@
+output "octopus_space_id" {
+  value = var.octopus_space_id
+}
diff --git a/terraform/50-applyterraformtemplateaction/workerpool.tf b/terraform/50-applyterraformtemplateaction/workerpool.tf
new file mode 100644
index 000000000..c1fd253fe
--- /dev/null
+++ b/terraform/50-applyterraformtemplateaction/workerpool.tf
@@ -0,0 +1,6 @@
+resource "octopusdeploy_static_worker_pool" "workerpool_docker" {
+  name        = "Docker"
+  description = "A test worker pool"
+  is_default  = false
+  sort_order  = 3
+}