diff --git a/pkg/pulumiyaml/sort.go b/pkg/pulumiyaml/sort.go
index d1f4d24d..0a827ad3 100644
--- a/pkg/pulumiyaml/sort.go
+++ b/pkg/pulumiyaml/sort.go
@@ -139,14 +139,16 @@ func topologicallySortedResources(t *ast.TemplateDecl, externalConfig []configNo
 		}
 	}
 
-	var defaultProvider *ast.StringExpr
+	// Map of package name to default provider resource and it's key.
+	defaultProviders := map[string]*ast.StringExpr{}
 	for _, kvp := range t.Resources.Entries {
 		rname, r := kvp.Key.Value, kvp.Value
 		node := resourceNode(kvp)
 
 		// Check if the resource is a default provider
 		if resourceIsDefaultProvider(node) {
-			defaultProvider = node.key()
+			pkg := strings.Split(node.Value.Type.Value, ":")[2]
+			defaultProviders[pkg] = node.key()
 		}
 
 		cdiags := checkUniqueNode(intermediates, node)
@@ -215,14 +217,22 @@ func topologicallySortedResources(t *ast.TemplateDecl, externalConfig []configNo
 				}
 			}
 
-			if resourceNodeHasNoExplicitProvider(e) && defaultProvider != name {
-				// If the resource has no explicit provider and the default provider is not set, then the
-				// (implicit) dependency is not yet met.
-				if defaultProvider != nil && !visit(defaultProvider) {
-					return false
+			if resNode, ok := e.(resourceNode); ok {
+				pkg := ""
+				if resNode.Value.Type != nil {
+					pkg = strings.Split(resNode.Value.Type.Value, ":")[0]
+				}
+				defaultProviderForPackage := defaultProviders[pkg]
+				isDefaultProvider := resNode.Value.DefaultProvider != nil && resNode.Value.DefaultProvider.Value
+				if resourceNodeHasNoExplicitProvider(e) && !isDefaultProvider {
+					// If the resource has no explicit provider and the default provider is not set, then the
+					// (implicit) dependency is not yet met.
+					if defaultProviderForPackage != nil && !visit(defaultProviderForPackage) {
+						return false
+					}
+
+					// if the defaultProviderForPackage is not set, then it may not be needed.
 				}
-
-				// if the defaultProviderForPackage is not set, then it may not be needed.
 			}
 
 			visited[name.Value] = true
diff --git a/pkg/pulumiyaml/sort_test.go b/pkg/pulumiyaml/sort_test.go
index f16a36a0..127012de 100644
--- a/pkg/pulumiyaml/sort_test.go
+++ b/pkg/pulumiyaml/sort_test.go
@@ -117,6 +117,24 @@ func TestSortUnordered(t *testing.T) {
 	assert.Equal(t, "my-object", names[1])
 }
 
+func TestSortMultipleDefaultProviders(t *testing.T) {
+	t.Parallel()
+
+	tmpl, diags, err := LoadFile("../tests/testdata/resource-ordering/Pulumi.yaml")
+	requireNoErrors(t, tmpl, diags)
+	assert.NoError(t, err)
+
+	confNodes := []configNode{}
+	resources, diags := topologicallySortedResources(tmpl, confNodes)
+	requireNoErrors(t, tmpl, diags)
+	names := sortedNames(resources)
+	assert.Len(t, names, 4)
+	assert.Equal(t, "provider", names[0])
+	assert.Equal(t, "alb", names[1])
+	assert.Equal(t, "testProvider", names[2])
+	assert.Equal(t, "echo", names[3])
+}
+
 func TestSortErrorCycle(t *testing.T) {
 	t.Parallel()
 
diff --git a/pkg/tests/testdata/resource-ordering/Pulumi.yaml b/pkg/tests/testdata/resource-ordering/Pulumi.yaml
index 67bcd7ae..f0ec7075 100644
--- a/pkg/tests/testdata/resource-ordering/Pulumi.yaml
+++ b/pkg/tests/testdata/resource-ordering/Pulumi.yaml
@@ -1,5 +1,9 @@
 name: aws-yaml
 runtime: yaml
+plugins:
+  providers:
+    - name: testprovider
+      path: ../../testprovider
 resources:
   alb:
     type: aws:alb:LoadBalancer
@@ -10,8 +14,16 @@ resources:
       subnets: 
         - subnet-eacf3697
         - subnet-939b18f8
+  echo:
+    type: testprovider:index:Echo
   provider:
     defaultProvider: true
     type: pulumi:providers:aws
     properties:
       region: us-west-2
+  testProvider:
+    defaultProvider: true
+    type: pulumi:providers:testprovider
+    properties:
+      testInput: ${alb.urn}
+
diff --git a/pkg/tests/testprovider/main.go b/pkg/tests/testprovider/main.go
index a2f737b4..5fad5c0a 100644
--- a/pkg/tests/testprovider/main.go
+++ b/pkg/tests/testprovider/main.go
@@ -52,7 +52,12 @@ var providerSchema = pschema.PackageSpec{
 			Description: "The provider type for the testprovider package.",
 			Type:        "object",
 		},
-		InputProperties: map[string]pschema.PropertySpec{},
+		InputProperties: map[string]pschema.PropertySpec{
+			"testInput": {
+				TypeSpec:    pschema.TypeSpec{Type: "string"},
+				Description: "A test input property.",
+			},
+		},
 	},
 
 	Types:     map[string]pschema.ComplexTypeSpec{},