diff --git a/acceptance/bundle/migrate/auto/run-no-commit/databricks.yml b/acceptance/bundle/migrate/auto/run-no-commit/databricks.yml
index 40404a02b8d..9227b4b8b99 100644
--- a/acceptance/bundle/migrate/auto/run-no-commit/databricks.yml
+++ b/acceptance/bundle/migrate/auto/run-no-commit/databricks.yml
@@ -1,5 +1,4 @@
-bundle:
-  name: test-bundle
+bundle: {name: test-bundle}
 
 resources:
   jobs:
diff --git a/acceptance/bundle/migrate/auto/run-no-commit/output.txt b/acceptance/bundle/migrate/auto/run-no-commit/output.txt
index 950329c8541..449bbd59f9a 100644
--- a/acceptance/bundle/migrate/auto/run-no-commit/output.txt
+++ b/acceptance/bundle/migrate/auto/run-no-commit/output.txt
@@ -5,7 +5,7 @@
 === bundle run on direct migrates the terraform state IN MEMORY (no commit) to resolve the job
 >>> DATABRICKS_BUNDLE_ENGINE=direct errcode [CLI] bundle run test_job --no-wait
 Notice: migrating your bundle to direct deployment engine (https://github.com/databricks/cli/issues/6765).
-Run URL: [DATABRICKS_URL]/jobs/[NUMID]/runs/[NUMID]?o=[NUMID]
+Run URL: [DATABRICKS_URL]/jobs/[TEST_JOB_ID]/runs/[NUMID]?o=[NUMID]
 
 
 >>> print_migration_telemetry
@@ -18,3 +18,34 @@ Run URL: [DATABRICKS_URL]/jobs/[NUMID]/runs/[NUMID]?o=[NUMID]
 >>> MSYS_NO_PATHCONV=1 [CLI] workspace list /Workspace/Users/[USERNAME]/.bundle/test-bundle/default/state
 ID                   Type  Language  Path
 [NUMID]  FILE            /Workspace/Users/[USERNAME]/.bundle/test-bundle/default/state/terraform.tfstate
+
+=== bundle run works with engine: terraform: warns and runs the job from the terraform state
+>>> update_file.py databricks.yml {name: test-bundle} {name: test-bundle, engine: terraform}
+
+>>> [CLI] bundle run test_job --no-wait
+Warning: the Terraform deployment engine has been removed in Databricks CLI v1.20.0
+  in databricks.yml:1:37
+
+Remove the "bundle.engine" setting (or set it to "direct") to deploy with the direct engine; existing Terraform state is migrated automatically. To keep using Terraform, revert to Databricks CLI v1.19.x.
+See https://docs.databricks.com/dev-tools/bundles/direct for details
+
+Notice: migrating your bundle to direct deployment engine (https://github.com/databricks/cli/issues/6765).
+Run URL: [DATABRICKS_URL]/jobs/[TEST_JOB_ID]/runs/[NUMID]?o=[NUMID]
+
+
+>>> print_requests.py //jobs
+{
+  "headers": {
+    "User-Agent": [
+      "cli/[CLI_VERSION] databricks-sdk-go/[SDK_VERSION] go/[GO_VERSION] os/[OS] cmd/bundle_run cmd-exec-id/[UUID] interactive/none engine/direct auth/pat"
+    ]
+  },
+  "method": "POST",
+  "path": "/api/2.2/jobs/run-now",
+  "body": {
+    "job_id": [TEST_JOB_ID]
+  }
+}
+
+>>> find.py \.databricks/.*(\.tfstate|resources.*\.json|\.wal)
+.databricks/bundle/default/terraform/terraform.tfstate
diff --git a/acceptance/bundle/migrate/auto/run-no-commit/script b/acceptance/bundle/migrate/auto/run-no-commit/script
index 4d65ccbf135..2640ea4e235 100644
--- a/acceptance/bundle/migrate/auto/run-no-commit/script
+++ b/acceptance/bundle/migrate/auto/run-no-commit/script
@@ -2,6 +2,7 @@ export DATABRICKS_BUNDLE_ENGINE=
 
 title "Replay a prior terraform deployment"
 trace replay_tfstate.py terraform-requests.json terraform.tfstate
+replace_ids.py
 rm -f "$OUT_REQUESTS"
 
 title "bundle run on direct migrates the terraform state IN MEMORY (no commit) to resolve the job"
@@ -17,3 +18,10 @@ title "Nothing durable written: still on terraform (local state files + remote),
 # cache under .terraform/ is excluded by matching only state files (tfstate/.backup, resources*.json, WAL).
 trace find.py '\.databricks/.*(\.tfstate|resources.*\.json|\.wal)'
 trace MSYS_NO_PATHCONV=1 $CLI workspace list "/Workspace/Users/${CURRENT_USER_NAME}/.bundle/test-bundle/default/state"
+
+title "bundle run works with engine: terraform: warns and runs the job from the terraform state"
+# Set after the replay: replay_tfstate.py runs bundle validate, which rejects engine: terraform.
+trace update_file.py databricks.yml "{name: test-bundle}" "{name: test-bundle, engine: terraform}"
+trace $CLI bundle run test_job --no-wait
+trace print_requests.py //jobs
+trace find.py '\.databricks/.*(\.tfstate|resources.*\.json|\.wal)'
diff --git a/cmd/bundle/run.go b/cmd/bundle/run.go
index 35061f23105..17199a6cabf 100644
--- a/cmd/bundle/run.go
+++ b/cmd/bundle/run.go
@@ -138,6 +138,9 @@ Example usage:
 		if cmd.ArgsLenAtDash() == 0 && len(args) > 0 {
 			b, err := utils.ProcessBundle(cmd, utils.ProcessOptions{
 				SkipInitialize: true,
+				InitFunc: func(b *bundle.Bundle) {
+					b.AllowTerraformEngineConfig = true
+				},
 			})
 			if err != nil {
 				return err
@@ -154,6 +157,10 @@ Example usage:
 		_, _, err := utils.ProcessBundleRet(cmd, utils.ProcessOptions{
 			AlwaysPull:        true,
 			ErrorOnEmptyState: true,
+			// Let users run a bundle that pins the removed Terraform engine.
+			InitFunc: func(b *bundle.Bundle) {
+				b.AllowTerraformEngineConfig = true
+			},
 			PostInitFunc: func(ctx context.Context, b *bundle.Bundle) error {
 				var err error
 				key, runArgs, err = resolveRunArgument(ctx, b, args)