diff --git a/internal/command/e2etest/pluggable_state_store_test.go b/internal/command/e2etest/pluggable_state_store_test.go
new file mode 100644
index 000000000000..330f6f1bdac8
--- /dev/null
+++ b/internal/command/e2etest/pluggable_state_store_test.go
@@ -0,0 +1,122 @@
+// Copyright (c) HashiCorp, Inc.
+// SPDX-License-Identifier: BUSL-1.1
+
+package e2etest
+
+import (
+	"fmt"
+	"os"
+	"path"
+	"path/filepath"
+	"strings"
+	"testing"
+
+	"github.com/hashicorp/terraform/internal/e2e"
+	"github.com/hashicorp/terraform/internal/getproviders"
+)
+
+func TestPrimary_stateStore_workspaceCmd(t *testing.T) {
+	if v := os.Getenv("TF_TEST_EXPERIMENTS"); v == "" {
+		t.Skip("can't run without enabling experiments in the executable terraform binary, enable with TF_TEST_EXPERIMENTS=1")
+	}
+
+	if !canRunGoBuild {
+		// We're running in a separate-build-then-run context, so we can't
+		// currently execute this test which depends on being able to build
+		// new executable at runtime.
+		//
+		// (See the comment on canRunGoBuild's declaration for more information.)
+		t.Skip("can't run without building a new provider executable")
+	}
+	t.Parallel()
+
+	tf := e2e.NewBinary(t, terraformBin, "testdata/full-workflow-with-state-store-fs")
+	workspaceDirName := "states" // see test fixture value for workspace_dir
+
+	// In order to test integration with PSS we need a provider plugin implementing a state store.
+	// Here will build the simple6 (built with protocol v6) provider, which implements PSS.
+	simple6Provider := filepath.Join(tf.WorkDir(), "terraform-provider-simple6")
+	simple6ProviderExe := e2e.GoBuild("github.com/hashicorp/terraform/internal/provider-simple-v6/main", simple6Provider)
+
+	// Move the provider binaries into a directory that we will point terraform
+	// to using the -plugin-dir cli flag.
+	platform := getproviders.CurrentPlatform.String()
+	hashiDir := "cache/registry.terraform.io/hashicorp/"
+	if err := os.MkdirAll(tf.Path(hashiDir, "simple6/0.0.1/", platform), os.ModePerm); err != nil {
+		t.Fatal(err)
+	}
+	if err := os.Rename(simple6ProviderExe, tf.Path(hashiDir, "simple6/0.0.1/", platform, "terraform-provider-simple6")); err != nil {
+		t.Fatal(err)
+	}
+
+	//// Init
+	_, stderr, err := tf.Run("init", "-enable-pluggable-state-storage-experiment=true", "-plugin-dir=cache", "-no-color")
+	if err != nil {
+		t.Fatalf("unexpected error: %s\nstderr:\n%s", err, stderr)
+	}
+	fi, err := os.Stat(path.Join(tf.WorkDir(), workspaceDirName, "default", "terraform.tfstate"))
+	if err != nil {
+		t.Fatalf("failed to open default workspace's state file: %s", err)
+	}
+	if fi.Size() == 0 {
+		t.Fatal("default workspace's state file should not have size 0 bytes")
+	}
+
+	//// Create Workspace: terraform workspace new
+	newWorkspace := "foobar"
+	stdout, stderr, err := tf.Run("workspace", "new", newWorkspace, "-no-color")
+	if err != nil {
+		t.Fatalf("unexpected error: %s\nstderr:\n%s", err, stderr)
+	}
+	expectedMsg := fmt.Sprintf("Created and switched to workspace %q!", newWorkspace)
+	if !strings.Contains(stdout, expectedMsg) {
+		t.Errorf("unexpected output, expected %q, but got:\n%s", expectedMsg, stdout)
+	}
+	fi, err = os.Stat(path.Join(tf.WorkDir(), workspaceDirName, newWorkspace, "terraform.tfstate"))
+	if err != nil {
+		t.Fatalf("failed to open %s workspace's state file: %s", newWorkspace, err)
+	}
+	if fi.Size() == 0 {
+		t.Fatalf("%s workspace's state file should not have size 0 bytes", newWorkspace)
+	}
+
+	//// List Workspaces: : terraform workspace list
+	stdout, stderr, err = tf.Run("workspace", "list", "-no-color")
+	if err != nil {
+		t.Fatalf("unexpected error: %s\nstderr:\n%s", err, stderr)
+	}
+	if !strings.Contains(stdout, newWorkspace) {
+		t.Errorf("unexpected output, expected the new %q workspace to be listed present, but it's missing. Got:\n%s", newWorkspace, stdout)
+	}
+
+	//// Select Workspace: terraform workspace select
+	selectedWorkspace := "default"
+	stdout, stderr, err = tf.Run("workspace", "select", selectedWorkspace, "-no-color")
+	if err != nil {
+		t.Fatalf("unexpected error: %s\nstderr:\n%s", err, stderr)
+	}
+	expectedMsg = fmt.Sprintf("Switched to workspace %q.", selectedWorkspace)
+	if !strings.Contains(stdout, expectedMsg) {
+		t.Errorf("unexpected output, expected %q, but got:\n%s", expectedMsg, stdout)
+	}
+
+	//// Show Workspace: terraform workspace show
+	stdout, stderr, err = tf.Run("workspace", "show", "-no-color")
+	if err != nil {
+		t.Fatalf("unexpected error: %s\nstderr:\n%s", err, stderr)
+	}
+	expectedMsg = fmt.Sprintf("%s\n", selectedWorkspace)
+	if stdout != expectedMsg {
+		t.Errorf("unexpected output, expected %q, but got:\n%s", expectedMsg, stdout)
+	}
+
+	//// Delete Workspace: terraform workspace delete
+	stdout, stderr, err = tf.Run("workspace", "delete", newWorkspace, "-no-color")
+	if err != nil {
+		t.Fatalf("unexpected error: %s\nstderr:\n%s", err, stderr)
+	}
+	expectedMsg = fmt.Sprintf("Deleted workspace %q!\n", newWorkspace)
+	if stdout != expectedMsg {
+		t.Errorf("unexpected output, expected %q, but got:\n%s", expectedMsg, stdout)
+	}
+}
diff --git a/internal/command/e2etest/primary_test.go b/internal/command/e2etest/primary_test.go
index 7e6745d44e19..71d170fc558d 100644
--- a/internal/command/e2etest/primary_test.go
+++ b/internal/command/e2etest/primary_test.go
@@ -4,6 +4,7 @@
 package e2etest
 
 import (
+	"fmt"
 	"os"
 	"path/filepath"
 	"reflect"
@@ -251,6 +252,7 @@ func TestPrimary_stateStore(t *testing.T) {
 	t.Parallel()
 
 	tf := e2e.NewBinary(t, terraformBin, "testdata/full-workflow-with-state-store-fs")
+	workspaceDirName := "states" // See workspace_dir value in the configuration
 
 	// In order to test integration with PSS we need a provider plugin implementing a state store.
 	// Here will build the simple6 (built with protocol v6) provider, which implements PSS.
@@ -292,7 +294,7 @@ func TestPrimary_stateStore(t *testing.T) {
 	}
 
 	// Check the statefile saved by the fs state store.
-	path := "terraform.tfstate.d/default/terraform.tfstate"
+	path := fmt.Sprintf("%s/default/terraform.tfstate", workspaceDirName)
 	f, err := tf.OpenFile(path)
 	if err != nil {
 		t.Fatalf("unexpected error opening state file %s: %s\nstderr:\n%s", path, err, stderr)
diff --git a/internal/command/e2etest/testdata/full-workflow-with-state-store-fs/main.tf b/internal/command/e2etest/testdata/full-workflow-with-state-store-fs/main.tf
index d2f5c9b4446f..d2c773a6fca9 100644
--- a/internal/command/e2etest/testdata/full-workflow-with-state-store-fs/main.tf
+++ b/internal/command/e2etest/testdata/full-workflow-with-state-store-fs/main.tf
@@ -7,6 +7,8 @@ terraform {
 
   state_store "simple6_fs" {
     provider "simple6" {}
+
+    workspace_dir = "states"
   }
 }
 
diff --git a/internal/command/workspace_command_test.go b/internal/command/workspace_command_test.go
index 5e35ccef413c..937e70f31a1b 100644
--- a/internal/command/workspace_command_test.go
+++ b/internal/command/workspace_command_test.go
@@ -4,7 +4,7 @@
 package command
 
 import (
-	"io/ioutil"
+	"fmt"
 	"os"
 	"path/filepath"
 	"strings"
@@ -16,11 +16,159 @@ import (
 	"github.com/hashicorp/terraform/internal/backend"
 	"github.com/hashicorp/terraform/internal/backend/local"
 	"github.com/hashicorp/terraform/internal/backend/remote-state/inmem"
+	"github.com/hashicorp/terraform/internal/providers"
 	"github.com/hashicorp/terraform/internal/states"
 	"github.com/hashicorp/terraform/internal/states/statefile"
 	"github.com/hashicorp/terraform/internal/states/statemgr"
 )
 
+func TestWorkspace_allCommands_pluggableStateStore(t *testing.T) {
+	// Create a temporary working directory with pluggable state storage in the config
+	td := t.TempDir()
+	testCopyDir(t, testFixturePath("state-store-new"), td)
+	t.Chdir(td)
+
+	mock := testStateStoreMockWithChunkNegotiation(t, 1000)
+	newMeta := func(provider providers.Interface) (meta Meta, ui *cli.MockUi, close func()) {
+		// Assumes the mocked provider is hashicorp/test
+		providerSource, close := newMockProviderSource(t, map[string][]string{
+			"hashicorp/test": {"1.2.3"},
+		})
+
+		ui = new(cli.MockUi)
+		view, _ := testView(t)
+		meta = Meta{
+			AllowExperimentalFeatures: true,
+			Ui:                        ui,
+			View:                      view,
+			testingOverrides: &testingOverrides{
+				Providers: map[addrs.Provider]providers.Factory{
+					addrs.NewDefaultProvider("test"): providers.FactoryFixed(mock),
+				},
+			},
+			ProviderSource: providerSource,
+		}
+		return meta, ui, close
+	}
+
+	//// Init
+	meta, ui, close := newMeta(mock)
+	defer close()
+	intCmd := &InitCommand{
+		Meta: meta,
+	}
+	args := []string{"-enable-pluggable-state-storage-experiment"} // Needed to test init changes for PSS project
+	code := intCmd.Run(args)
+	if code != 0 {
+		t.Fatalf("bad: %d\n\n%s\n%s", code, ui.ErrorWriter, ui.OutputWriter)
+	}
+	// We expect a state to have been created for the default workspace
+	if _, ok := mock.MockStates["default"]; !ok {
+		t.Fatal("expected the default workspace to exist, but it didn't")
+	}
+
+	//// Create Workspace
+	newWorkspace := "foobar"
+
+	meta, ui, close = newMeta(mock)
+	defer close()
+	newCmd := &WorkspaceNewCommand{
+		Meta: meta,
+	}
+
+	current, _ := newCmd.Workspace()
+	if current != backend.DefaultStateName {
+		t.Fatal("before creating any custom workspaces, the current workspace should be 'default'")
+	}
+
+	args = []string{newWorkspace}
+	code = newCmd.Run(args)
+	if code != 0 {
+		t.Fatalf("bad: %d\n\n%s\n%s", code, ui.ErrorWriter, ui.OutputWriter)
+	}
+	expectedMsg := fmt.Sprintf("Created and switched to workspace %q!", newWorkspace)
+	if !strings.Contains(ui.OutputWriter.String(), expectedMsg) {
+		t.Errorf("unexpected output, expected %q, but got:\n%s", expectedMsg, ui.OutputWriter)
+	}
+	// We expect a state to have been created for the new custom workspace
+	if _, ok := mock.MockStates[newWorkspace]; !ok {
+		t.Fatalf("expected the %s workspace to exist, but it didn't", newWorkspace)
+	}
+	current, _ = newCmd.Workspace()
+	if current != newWorkspace {
+		t.Fatalf("current workspace should be %q, got %q", newWorkspace, current)
+	}
+
+	//// List Workspaces
+	meta, ui, close = newMeta(mock)
+	defer close()
+	listCmd := &WorkspaceListCommand{
+		Meta: meta,
+	}
+	args = []string{}
+	code = listCmd.Run(args)
+	if code != 0 {
+		t.Fatalf("bad: %d\n\n%s\n%s", code, ui.ErrorWriter, ui.OutputWriter)
+	}
+	if !strings.Contains(ui.OutputWriter.String(), newWorkspace) {
+		t.Errorf("unexpected output, expected the new %q workspace to be listed present, but it's missing. Got:\n%s", newWorkspace, ui.OutputWriter)
+	}
+
+	//// Select Workspace
+	meta, ui, close = newMeta(mock)
+	defer close()
+	selCmd := &WorkspaceSelectCommand{
+		Meta: meta,
+	}
+	selectedWorkspace := backend.DefaultStateName
+	args = []string{selectedWorkspace}
+	code = selCmd.Run(args)
+	if code != 0 {
+		t.Fatalf("bad: %d\n\n%s\n%s", code, ui.ErrorWriter, ui.OutputWriter)
+	}
+	expectedMsg = fmt.Sprintf("Switched to workspace %q.", selectedWorkspace)
+	if !strings.Contains(ui.OutputWriter.String(), expectedMsg) {
+		t.Errorf("unexpected output, expected %q, but got:\n%s", expectedMsg, ui.OutputWriter)
+	}
+
+	//// Show Workspace
+	meta, ui, close = newMeta(mock)
+	defer close()
+	showCmd := &WorkspaceShowCommand{
+		Meta: meta,
+	}
+	args = []string{}
+	code = showCmd.Run(args)
+	if code != 0 {
+		t.Fatalf("bad: %d\n\n%s\n%s", code, ui.ErrorWriter, ui.OutputWriter)
+	}
+	expectedMsg = fmt.Sprintf("%s\n", selectedWorkspace)
+	if !strings.Contains(ui.OutputWriter.String(), expectedMsg) {
+		t.Errorf("unexpected output, expected %q, but got:\n%s", expectedMsg, ui.OutputWriter)
+	}
+
+	current, _ = newCmd.Workspace()
+	if current != backend.DefaultStateName {
+		t.Fatal("current workspace should be 'default'")
+	}
+
+	//// Delete Workspace
+	meta, ui, close = newMeta(mock)
+	defer close()
+	deleteCmd := &WorkspaceDeleteCommand{
+		Meta: meta,
+	}
+	args = []string{newWorkspace}
+	code = deleteCmd.Run(args)
+	if code != 0 {
+		t.Fatalf("bad: %d\n\n%s\n%s", code, ui.ErrorWriter, ui.OutputWriter)
+	}
+	expectedMsg = fmt.Sprintf("Deleted workspace %q!\n", newWorkspace)
+	if !strings.Contains(ui.OutputWriter.String(), expectedMsg) {
+		t.Errorf("unexpected output, expected %q, but got:\n%s", expectedMsg, ui.OutputWriter)
+	}
+}
+
 func TestWorkspace_createAndChange(t *testing.T) {
 	// Create a temporary working directory that is empty
 	td := t.TempDir()
@@ -114,7 +262,7 @@ func TestWorkspace_createAndList(t *testing.T) {
 	t.Chdir(td)
 
 	// make sure a vars file doesn't interfere
-	err := ioutil.WriteFile(
+	err := os.WriteFile(
 		DefaultVarsFilename,
 		[]byte(`foo = "bar"`),
 		0644,
@@ -162,7 +310,7 @@ func TestWorkspace_createAndShow(t *testing.T) {
 	t.Chdir(td)
 
 	// make sure a vars file doesn't interfere
-	err := ioutil.WriteFile(
+	err := os.WriteFile(
 		DefaultVarsFilename,
 		[]byte(`foo = "bar"`),
 		0644,
@@ -345,7 +493,7 @@ func TestWorkspace_delete(t *testing.T) {
 	if err := os.MkdirAll(DefaultDataDir, 0755); err != nil {
 		t.Fatal(err)
 	}
-	if err := ioutil.WriteFile(filepath.Join(DefaultDataDir, local.DefaultWorkspaceFile), []byte("test"), 0644); err != nil {
+	if err := os.WriteFile(filepath.Join(DefaultDataDir, local.DefaultWorkspaceFile), []byte("test"), 0644); err != nil {
 		t.Fatal(err)
 	}
 
diff --git a/internal/command/workspace_new.go b/internal/command/workspace_new.go
index d36c76efef61..d217fd38e945 100644
--- a/internal/command/workspace_new.go
+++ b/internal/command/workspace_new.go
@@ -10,9 +10,12 @@ import (
 	"time"
 
 	"github.com/hashicorp/cli"
+	"github.com/hashicorp/terraform/internal/backend/local"
+	backendPluggable "github.com/hashicorp/terraform/internal/backend/pluggable"
 	"github.com/hashicorp/terraform/internal/command/arguments"
 	"github.com/hashicorp/terraform/internal/command/clistate"
 	"github.com/hashicorp/terraform/internal/command/views"
+	"github.com/hashicorp/terraform/internal/states"
 	"github.com/hashicorp/terraform/internal/states/statefile"
 	"github.com/hashicorp/terraform/internal/tfdiags"
 	"github.com/posener/complete"
@@ -93,12 +96,38 @@ func (c *WorkspaceNewCommand) Run(args []string) int {
 		}
 	}
 
-	_, sDiags := b.StateMgr(workspace)
+	// Create the new workspace
+	//
+	// In local, remote and remote-state backends obtaining a state manager
+	// creates an empty state file for the new workspace as a side-effect.
+	//
+	// The cloud backend also has logic in StateMgr for creating projects and
+	// workspaces if they don't already exist.
+	sMgr, sDiags := b.StateMgr(workspace)
 	if sDiags.HasErrors() {
 		c.Ui.Error(sDiags.Err().Error())
 		return 1
 	}
 
+	if l, ok := b.(*local.Local); ok {
+		if _, ok := l.Backend.(*backendPluggable.Pluggable); ok {
+			// Obtaining the state manager would have not created the state file as a side effect
+			// if a pluggable state store is in use.
+			//
+			// Instead, explicitly create the new workspace by saving an empty state file.
+			// We only do this when the backend in use is pluggable, to avoid impacting users
+			// of remote-state backends.
+			if err := sMgr.WriteState(states.NewState()); err != nil {
+				c.Ui.Error(err.Error())
+				return 1
+			}
+			if err := sMgr.PersistState(nil); err != nil {
+				c.Ui.Error(err.Error())
+				return 1
+			}
+		}
+	}
+
 	// now set the current workspace locally
 	if err := c.SetWorkspace(workspace); err != nil {
 		c.Ui.Error(fmt.Sprintf("Error selecting new workspace: %s", err))
diff --git a/internal/plugin6/grpc_provider.go b/internal/plugin6/grpc_provider.go
index 0339cefeeea2..2f517f363af1 100644
--- a/internal/plugin6/grpc_provider.go
+++ b/internal/plugin6/grpc_provider.go
@@ -1841,6 +1841,7 @@ func (p *GRPCProvider) DeleteState(r providers.DeleteStateRequest) (resp provide
 
 	protoReq := &proto6.DeleteState_Request{
 		TypeName: r.TypeName,
+		StateId:  r.StateId,
 	}
 
 	schema := p.GetProviderSchema()
diff --git a/internal/providers/testing/provider_mock.go b/internal/providers/testing/provider_mock.go
index 8aa55051e3a2..e164593fc60c 100644
--- a/internal/providers/testing/provider_mock.go
+++ b/internal/providers/testing/provider_mock.go
@@ -361,6 +361,9 @@ func (p *MockProvider) WriteStateBytes(r providers.WriteStateBytesRequest) (resp
 
 	// If we haven't already, record in the mock that
 	// the matching workspace exists
+	if p.MockStates == nil {
+		p.MockStates = make(map[string]interface{})
+	}
 	p.MockStates[r.StateId] = true
 
 	return p.WriteStateBytesResponse