diff --git a/agent/consul/acl.go b/agent/consul/acl.go
index 471a9b76fd..1dc2030d65 100644
--- a/agent/consul/acl.go
+++ b/agent/consul/acl.go
@@ -417,6 +417,9 @@ func (r *ACLResolver) fetchAndCacheIdentityFromToken(token string, cached *struc
 		if resp.Token == nil {
 			r.cache.PutIdentity(cacheID, nil)
 			return nil, acl.ErrNotFound
+		} else if resp.Token.Local && r.config.Datacenter != resp.SourceDatacenter {
+			r.cache.PutIdentity(cacheID, nil)
+			return nil, acl.PermissionDeniedError{Cause: fmt.Sprintf("This is a local token in datacenter %q", resp.SourceDatacenter)}
 		} else {
 			r.cache.PutIdentity(cacheID, resp.Token)
 			return resp.Token, nil
diff --git a/agent/consul/acl_endpoint.go b/agent/consul/acl_endpoint.go
index 1c15677bf2..835e7bf442 100644
--- a/agent/consul/acl_endpoint.go
+++ b/agent/consul/acl_endpoint.go
@@ -260,6 +260,7 @@ func (a *ACL) TokenRead(args *structs.ACLTokenGetRequest, reply *structs.ACLToke
 			}
 
 			reply.Index, reply.Token = index, token
+			reply.SourceDatacenter = args.Datacenter
 			return nil
 		})
 }
diff --git a/agent/consul/acl_test.go b/agent/consul/acl_test.go
index 55020b36a4..c49ac1a057 100644
--- a/agent/consul/acl_test.go
+++ b/agent/consul/acl_test.go
@@ -3703,3 +3703,49 @@ func TestDedupeServiceIdentities(t *testing.T) {
 		})
 	}
 }
+func TestACL_LocalToken(t *testing.T) {
+	t.Run("local token in same dc", func(t *testing.T) {
+		d := &ACLResolverTestDelegate{
+			datacenter: "dc1",
+			tokenReadFn: func(_ *structs.ACLTokenGetRequest, reply *structs.ACLTokenResponse) error {
+				reply.Token = &structs.ACLToken{Local: true}
+				// different dc
+				reply.SourceDatacenter = "dc1"
+				return nil
+			},
+		}
+		r := newTestACLResolver(t, d, nil)
+		_, err := r.fetchAndCacheIdentityFromToken("", nil)
+		require.NoError(t, err)
+	})
+
+	t.Run("non local token in remote dc", func(t *testing.T) {
+		d := &ACLResolverTestDelegate{
+			datacenter: "dc1",
+			tokenReadFn: func(_ *structs.ACLTokenGetRequest, reply *structs.ACLTokenResponse) error {
+				reply.Token = &structs.ACLToken{Local: false}
+				// different dc
+				reply.SourceDatacenter = "remote"
+				return nil
+			},
+		}
+		r := newTestACLResolver(t, d, nil)
+		_, err := r.fetchAndCacheIdentityFromToken("", nil)
+		require.NoError(t, err)
+	})
+
+	t.Run("local token in remote dc", func(t *testing.T) {
+		d := &ACLResolverTestDelegate{
+			datacenter: "dc1",
+			tokenReadFn: func(_ *structs.ACLTokenGetRequest, reply *structs.ACLTokenResponse) error {
+				reply.Token = &structs.ACLToken{Local: true}
+				// different dc
+				reply.SourceDatacenter = "remote"
+				return nil
+			},
+		}
+		r := newTestACLResolver(t, d, nil)
+		_, err := r.fetchAndCacheIdentityFromToken("", nil)
+		require.Equal(t, acl.PermissionDeniedError{Cause: "This is a local token in datacenter \"remote\""}, err)
+	})
+}
diff --git a/agent/structs/acl.go b/agent/structs/acl.go
index 769f66e731..0045bef72d 100644
--- a/agent/structs/acl.go
+++ b/agent/structs/acl.go
@@ -1258,8 +1258,9 @@ type ACLTokenBootstrapRequest struct {
 
 // ACLTokenResponse returns a single Token + metadata
 type ACLTokenResponse struct {
-	Token    *ACLToken
-	Redacted bool // whether the token's secret was redacted
+	Token            *ACLToken
+	Redacted         bool // whether the token's secret was redacted
+	SourceDatacenter string
 	QueryMeta
 }