diff --git a/client/recipient.go b/client/recipient.go
index c78111f6..eb4723ef 100644
--- a/client/recipient.go
+++ b/client/recipient.go
@@ -76,7 +76,7 @@ type NotificationRecipientDetails struct {
 
 type WebhookPayloads struct {
 	PayloadTemplates  PayloadTemplates   `json:"payload_templates"`
-	TemplateVariables []TemplateVariable `json:"template_variables,omitempty"`
+	TemplateVariables []TemplateVariable `json:"template_variables"`
 }
 
 type PayloadTemplates struct {
diff --git a/internal/provider/webhook_recipient_resource.go b/internal/provider/webhook_recipient_resource.go
index fd3474a3..5184f124 100644
--- a/internal/provider/webhook_recipient_resource.go
+++ b/internal/provider/webhook_recipient_resource.go
@@ -298,6 +298,8 @@ func (r *webhookRecipientResource) Update(ctx context.Context, req resource.Upda
 		state.Templates = plan.Templates
 		if rcpt.Details.WebhookPayloads.TemplateVariables != nil {
 			state.Variables = plan.Variables
+		} else {
+			state.Variables = types.SetNull(types.ObjectType{AttrTypes: models.TemplateVariableAttrType})
 		}
 	} else {
 		state.Templates = types.SetNull(types.ObjectType{AttrTypes: models.WebhookTemplateAttrType})
diff --git a/internal/provider/webhook_recipient_resource_test.go b/internal/provider/webhook_recipient_resource_test.go
index ae497d13..6f64fb05 100644
--- a/internal/provider/webhook_recipient_resource_test.go
+++ b/internal/provider/webhook_recipient_resource_test.go
@@ -302,6 +302,82 @@ resource "honeycombio_webhook_recipient" "test" {
 		})
 	})
 
+	t.Run("custom webhook when a variable is removed", func(t *testing.T) {
+		name := test.RandomStringWithPrefix("test.", 20)
+		url := test.RandomURL()
+		body := `<<EOT
+		{
+			"name": " {{ .Name }}",
+			"id": " {{ .ID }}"
+		}
+		EOT`
+
+		resource.Test(t, resource.TestCase{
+			PreCheck:                 testAccPreCheck(t),
+			ProtoV5ProviderFactories: testAccProtoV5MuxServerFactory,
+			CheckDestroy:             testAccEnsureRecipientDestroyed(t),
+			Steps: []resource.TestStep{
+				{
+					Config: fmt.Sprintf(`
+resource "honeycombio_webhook_recipient" "test" {
+  name = "%s"
+	url  = "%s"
+
+	variable {
+	  name = "severity"
+      default_value = "critical"
+	}
+
+	template {
+	  type   = "trigger"
+      body = %s
+    }
+}`, name, url, body),
+					Check: resource.ComposeAggregateTestCheckFunc(
+						testAccEnsureRecipientExists(t, "honeycombio_webhook_recipient.test"),
+						resource.TestCheckResourceAttrSet("honeycombio_webhook_recipient.test", "id"),
+						resource.TestCheckResourceAttr("honeycombio_webhook_recipient.test", "name", name),
+						resource.TestCheckResourceAttr("honeycombio_webhook_recipient.test", "url", url),
+						resource.TestCheckResourceAttr("honeycombio_webhook_recipient.test", "template.#", "1"),
+						resource.TestCheckResourceAttr("honeycombio_webhook_recipient.test", "template.0.type", "trigger"),
+						resource.TestCheckResourceAttr("honeycombio_webhook_recipient.test", "variable.#", "1"),
+						resource.TestCheckResourceAttr("honeycombio_webhook_recipient.test", "variable.0.name", "severity"),
+						resource.TestCheckResourceAttr("honeycombio_webhook_recipient.test", "variable.0.default_value", "critical"),
+						resource.TestCheckNoResourceAttr("honeycombio_webhook_recipient.test", "secret"),
+					),
+				},
+				{
+					Config: fmt.Sprintf(`
+resource "honeycombio_webhook_recipient" "test" {
+  name = "%s"
+	url  = "%s"
+
+	secret = "so-secret"
+
+	template {
+	  type   = "trigger"
+      body = %s
+    }
+}`, name, url, body),
+					Check: resource.ComposeAggregateTestCheckFunc(
+						testAccEnsureRecipientExists(t, "honeycombio_webhook_recipient.test"),
+						resource.TestCheckResourceAttrSet("honeycombio_webhook_recipient.test", "id"),
+						resource.TestCheckResourceAttr("honeycombio_webhook_recipient.test", "name", name),
+						resource.TestCheckResourceAttr("honeycombio_webhook_recipient.test", "url", url),
+						resource.TestCheckResourceAttr("honeycombio_webhook_recipient.test", "secret", "so-secret"),
+						resource.TestCheckResourceAttr("honeycombio_webhook_recipient.test", "template.#", "1"),
+						resource.TestCheckResourceAttr("honeycombio_webhook_recipient.test", "template.0.type", "trigger"),
+						resource.TestCheckResourceAttr("honeycombio_webhook_recipient.test", "variable.#", "0"),
+					),
+				},
+				{
+					ResourceName: "honeycombio_webhook_recipient.test",
+					ImportState:  true,
+				},
+			},
+		})
+	})
+
 	t.Run("custom webhook validations error when they should", func(t *testing.T) {
 		name := test.RandomStringWithPrefix("test.", 20)
 		url := test.RandomURL()