diff --git a/changelog/pending/20230314--sdk-go--fixes-use-of-provider-option-from-parent-resources-with-mismatched-packages.yaml b/changelog/pending/20230314--sdk-go--fixes-use-of-provider-option-from-parent-resources-with-mismatched-packages.yaml
new file mode 100644
index 000000000000..e8e8e260a091
--- /dev/null
+++ b/changelog/pending/20230314--sdk-go--fixes-use-of-provider-option-from-parent-resources-with-mismatched-packages.yaml
@@ -0,0 +1,4 @@
+changes:
+- type: fix
+  scope: sdk/go
+  description: Fixes use of Provider option from parent resources with mismatched packages.
diff --git a/sdk/go/pulumi/context.go b/sdk/go/pulumi/context.go
index 04648fd71750..f83b71cfd627 100644
--- a/sdk/go/pulumi/context.go
+++ b/sdk/go/pulumi/context.go
@@ -1062,8 +1062,8 @@ func (ctx *Context) mergeProviders(t string, parent Resource, provider ProviderR
 
 // getProvider gets the provider for the resource.
 func getProvider(t string, provider ProviderResource, providers map[string]ProviderResource) ProviderResource {
-	if provider == nil {
-		pkg := getPackage(t)
+	pkg := getPackage(t)
+	if provider == nil || provider.getPackage() != pkg {
 		provider = providers[pkg]
 	}
 	return provider
diff --git a/sdk/go/pulumi/resource_test.go b/sdk/go/pulumi/resource_test.go
index 783401b2a419..a7220c639281 100644
--- a/sdk/go/pulumi/resource_test.go
+++ b/sdk/go/pulumi/resource_test.go
@@ -784,6 +784,63 @@ func TestComponentResourcePropagatesProvider(t *testing.T) {
 	})
 }
 
+// Verifies that if we pass an explicit provider to the provider plugin
+// via the Provider() option,
+// that the provider propagates this down to its children.
+//
+// Regression test for https://github.com/pulumi/pulumi/issues/12430
+func TestRemoteComponentResourcePropagatesProvider(t *testing.T) {
+	t.Parallel()
+
+	err := RunErr(func(ctx *Context) error {
+		var prov struct{ ProviderResourceState }
+		require.NoError(t,
+			ctx.RegisterResource("pulumi:providers:aws", "myprovider", nil /* props */, &prov),
+			"error registering provider")
+
+		var comp struct{ ResourceState }
+		require.NoError(t,
+			ctx.RegisterRemoteComponentResource("awsx:ec2:Vpc", "myvpc", nil /* props */, &comp, Provider(&prov)),
+			"error registering component")
+
+		var custom struct{ ResourceState }
+		require.NoError(t,
+			ctx.RegisterResource("aws:ec2/vpc:Vpc", "myvpc", nil /* props */, &custom, Parent(&comp)),
+			"error registering resource")
+
+		assert.True(t, &prov == custom.provider, "provider not propagated: %v", custom.provider)
+		return nil
+	}, WithMocks("project", "stack", &testMonitor{
+		NewResourceF: func(args MockResourceArgs) (string, resource.PropertyMap, error) {
+			switch args.Name {
+			case "myprovider":
+				assert.Equal(t, "pulumi:providers:aws", args.RegisterRPC.Type)
+
+			case "myvpc":
+				// The remote component resource and the custom resource both
+				// have the same name.
+				//
+				// However, only the custom resource should have the provider set.
+				switch args.RegisterRPC.Type {
+				case "awsx:ec2:Vpc":
+					assert.Empty(t, args.Provider,
+						"provider must not be set on remote component resource")
+
+				case "aws:ec2/vpc:Vpc":
+					assert.NotEmpty(t, args.Provider,
+						"provider must be set on component resource")
+
+				default:
+					assert.Fail(t, "unexpected resource type: %s", args.RegisterRPC.Type)
+				}
+			}
+
+			return args.Name, resource.PropertyMap{}, nil
+		},
+	}))
+	assert.NoError(t, err)
+}
+
 // Verifies that Provider takes precedence over Providers.
 func TestResourceProviderVersusProviders(t *testing.T) {
 	t.Parallel()