diff --git a/remote/remote_state_gcs.go b/remote/remote_state_gcs.go
index be5cda40f..3b42295f9 100644
--- a/remote/remote_state_gcs.go
+++ b/remote/remote_state_gcs.go
@@ -9,6 +9,8 @@ import (
 	"strconv"
 	"time"
 
+	"google.golang.org/api/impersonate"
+
 	"cloud.google.com/go/storage"
 	"github.com/gruntwork-io/terragrunt/options"
 	"github.com/gruntwork-io/terragrunt/pkg/errors"
@@ -470,9 +472,15 @@ func CreateGCSClient(gcsConfigRemote RemoteStateConfigGCS) (*storage.Client, err
 	}
 
 	if gcsConfigRemote.ImpersonateServiceAccount != "" {
-		opts = append(opts, option.ImpersonateCredentials(
-			gcsConfigRemote.ImpersonateServiceAccount,
-			gcsConfigRemote.ImpersonateServiceAccountDelegates...))
+		ts, err := impersonate.CredentialsTokenSource(ctx, impersonate.CredentialsConfig{
+			TargetPrincipal: gcsConfigRemote.ImpersonateServiceAccount,
+			Scopes:          []string{storage.ScopeFullControl},
+			Delegates:       gcsConfigRemote.ImpersonateServiceAccountDelegates,
+		})
+		if err != nil {
+			return nil, err
+		}
+		opts = append(opts, option.WithTokenSource(ts))
 	}
 
 	client, err := storage.NewClient(ctx, opts...)
diff --git a/test/fixture-gcs-impersonate/main.tf b/test/fixture-gcs-impersonate/main.tf
new file mode 100644
index 000000000..f110804e3
--- /dev/null
+++ b/test/fixture-gcs-impersonate/main.tf
@@ -0,0 +1,7 @@
+terraform {
+  backend "gcs" {}
+}
+
+output "value" {
+  value = "42"
+}
diff --git a/test/fixture-gcs-impersonate/terragrunt.hcl b/test/fixture-gcs-impersonate/terragrunt.hcl
new file mode 100644
index 000000000..0ab02651f
--- /dev/null
+++ b/test/fixture-gcs-impersonate/terragrunt.hcl
@@ -0,0 +1,16 @@
+remote_state {
+  backend = "gcs"
+
+  config = {
+    project                     = "__FILL_IN_PROJECT__"
+    location                    = "__FILL_IN_LOCATION__"
+    bucket                      = "__FILL_IN_BUCKET_NAME__"
+    impersonate_service_account = "__FILL_IN_GCP_EMAIL__"
+    prefix                      = "terraform.tfstate"
+
+    gcs_bucket_labels = {
+      owner = "terragrunt_test"
+      name  = "terraform_state_storage"
+    }
+  }
+}
diff --git a/test/integration_serial_test.go b/test/integration_serial_test.go
index b054dc018..058405007 100644
--- a/test/integration_serial_test.go
+++ b/test/integration_serial_test.go
@@ -352,3 +352,39 @@ func TestTerragruntParallelism(t *testing.T) {
 		})
 	}
 }
+
+func TestTerragruntWorksWithImpersonateGCSBackend(t *testing.T) {
+	defaultCreds := os.Getenv("GOOGLE_APPLICATION_CREDENTIALS")
+	defer os.Setenv("GOOGLE_APPLICATION_CREDENTIALS", defaultCreds)
+
+	impersonatorKey := os.Getenv("GCLOUD_SERVICE_KEY_IMPERSONATOR")
+	if impersonatorKey == "" {
+		t.Fatalf("Required environment variable `%s` - not found", "GCLOUD_SERVICE_KEY_IMPERSONATOR")
+	}
+	tmpImpersonatorCreds := createTmpTerragruntConfigContent(t, impersonatorKey, "impersonator-key.json")
+	defer removeFile(t, tmpImpersonatorCreds)
+	os.Setenv("GOOGLE_APPLICATION_CREDENTIALS", tmpImpersonatorCreds)
+
+	project := os.Getenv("GOOGLE_CLOUD_PROJECT")
+	gcsBucketName := fmt.Sprintf("terragrunt-test-bucket-%s", strings.ToLower(uniqueId()))
+
+	// run with impersonation
+	tmpTerragruntImpersonateGCSConfigPath := createTmpTerragruntGCSConfig(t, TEST_FIXTURE_GCS_IMPERSONATE_PATH, project, TERRAFORM_REMOTE_STATE_GCP_REGION, gcsBucketName, config.DefaultTerragruntConfigPath)
+	runTerragrunt(t, fmt.Sprintf("terragrunt apply -auto-approve --terragrunt-non-interactive --terragrunt-config %s --terragrunt-working-dir %s", tmpTerragruntImpersonateGCSConfigPath, TEST_FIXTURE_GCS_IMPERSONATE_PATH))
+
+	var expectedGCSLabels = map[string]string{
+		"owner": "terragrunt_test",
+		"name":  "terraform_state_storage"}
+	validateGCSBucketExistsAndIsLabeled(t, TERRAFORM_REMOTE_STATE_GCP_REGION, gcsBucketName, expectedGCSLabels)
+
+	email := os.Getenv("GOOGLE_IDENTITY_EMAIL")
+	attrs := gcsObjectAttrs(t, gcsBucketName, "terraform.tfstate/default.tfstate")
+	ownerEmail := false
+	for _, a := range attrs.ACL {
+		if (a.Role == "OWNER") && (a.Email == email) {
+			ownerEmail = true
+			break
+		}
+	}
+	assert.True(t, ownerEmail, "Identity email should match the impersonated account")
+}
diff --git a/test/integration_test.go b/test/integration_test.go
index f4ad75a8f..9817131ad 100644
--- a/test/integration_test.go
+++ b/test/integration_test.go
@@ -162,6 +162,7 @@ const (
 	TEST_FIXTURE_STRCONTAINS                                                 = "fixture-strcontains"
 	TEST_FIXTURE_INIT_CACHE                                                  = "fixture-init-cache"
 	TEST_FIXTURE_NULL_VALUE                                                  = "fixture-null-values"
+	TEST_FIXTURE_GCS_IMPERSONATE_PATH                                        = "fixture-gcs-impersonate/"
 	TERRAFORM_BINARY                                                         = "terraform"
 	TERRAFORM_FOLDER                                                         = ".terraform"
 	TERRAFORM_STATE                                                          = "terraform.tfstate"
@@ -4077,6 +4078,9 @@ func copyTerragruntGCSConfigAndFillPlaceholders(t *testing.T, configSrcPath stri
 	contents = strings.Replace(contents, "__FILL_IN_LOCATION__", location, -1)
 	contents = strings.Replace(contents, "__FILL_IN_BUCKET_NAME__", gcsBucketName, -1)
 
+	email := os.Getenv("GOOGLE_IDENTITY_EMAIL")
+	contents = strings.Replace(contents, "__FILL_IN_GCP_EMAIL__", email, -1)
+
 	if err := ioutil.WriteFile(configDestPath, []byte(contents), 0444); err != nil {
 		t.Fatalf("Error writing temp Terragrunt config to %s: %v", configDestPath, err)
 	}
@@ -4382,7 +4386,6 @@ func validateGCSBucketExistsAndIsLabeled(t *testing.T, location string, bucketNa
 	// verify the bucket location
 	ctx := context.Background()
 	bucket := gcsClient.Bucket(bucketName)
-
 	attrs, err := bucket.Attrs(ctx)
 	if err != nil {
 		t.Fatal(err)
@@ -4395,6 +4398,26 @@ func validateGCSBucketExistsAndIsLabeled(t *testing.T, location string, bucketNa
 	}
 }
 
+// gcsObjectAttrs returns the attributes of the specified object in the bucket
+func gcsObjectAttrs(t *testing.T, bucketName string, objectName string) *storage.ObjectAttrs {
+	remoteStateConfig := remote.RemoteStateConfigGCS{Bucket: bucketName}
+
+	gcsClient, err := remote.CreateGCSClient(remoteStateConfig)
+	if err != nil {
+		t.Fatalf("Error creating GCS client: %v", err)
+	}
+
+	ctx := context.Background()
+	bucket := gcsClient.Bucket(bucketName)
+
+	handle := bucket.Object(objectName)
+	attrs, err := handle.Attrs(ctx)
+	if err != nil {
+		t.Fatalf("Error reading object attributes %s %v", objectName, err)
+	}
+	return attrs
+}
+
 func assertGCSLabels(t *testing.T, expectedLabels map[string]string, bucketName string, client *storage.Client) {
 	ctx := context.Background()
 	bucket := client.Bucket(bucketName)