diff --git a/packages/amplify-graphql-api-construct-tests/src/__tests__/amplify-table-4.test.ts b/packages/amplify-graphql-api-construct-tests/src/__tests__/amplify-table-4.test.ts
index c5fc37ac5e..18aef48392 100644
--- a/packages/amplify-graphql-api-construct-tests/src/__tests__/amplify-table-4.test.ts
+++ b/packages/amplify-graphql-api-construct-tests/src/__tests__/amplify-table-4.test.ts
@@ -1,5 +1,5 @@
 import * as path from 'path';
-import { createNewProjectDir, deleteProjectDir } from 'amplify-category-api-e2e-core';
+import { createNewProjectDir, deleteProjectDir, getDDBTable, getDDBTableTags } from 'amplify-category-api-e2e-core';
 import { cdkDestroy, initCDKProject, cdkDeploy, updateCDKAppWithTemplate } from '../commands';
 import { DURATION_1_HOUR } from '../utils/duration-constants';
 
@@ -29,14 +29,34 @@ describe('CDK amplify table 4', () => {
     await initCDKProject(projRoot, templatePath);
     await expect(cdkDeploy(projRoot, '--all')).resolves.not.toThrow();
   });
+
   test('should not throw limit exceed error when creating a large number of tables with datastore disabled at first and enabled in second deployment', async () => {
     const templatePath = path.resolve(path.join(__dirname, 'backends', 'amplify-table', 'rate-limit', 'updateTableTtl', 'disabled'));
-    await initCDKProject(projRoot, templatePath);
-    await expect(cdkDeploy(projRoot, '--all')).resolves.not.toThrow();
+    const name = await initCDKProject(projRoot, templatePath);
+
+    const outputs = await cdkDeploy(projRoot, '--all');
+    const { awsAppsyncApiId: apiId, awsAppsyncRegion: region } = outputs[name];
+    const tableName = `Todo1-${apiId}-NONE`;
+    const table = await getDDBTable(tableName, region);
+    expect(table).toBeDefined();
+
+    // Verify the tags on the table
+    const tableTags = await getDDBTableTags(table.Table.TableArn, region);
+    expect(tableTags.Tags).toBeDefined();
+    expect(tableTags.Tags.length).toBe(1);
+    expect(tableTags.Tags).toEqual(expect.arrayContaining([{ Key: 'created-by', Value: 'amplify-original' }]));
+
     // deploy with datastore enabled
-    let updateTemplatePath;
-    updateTemplatePath = path.resolve(path.join(__dirname, 'backends', 'amplify-table', 'rate-limit', 'updateTableTtl', 'enabled'));
+    const updateTemplatePath = path.resolve(path.join(__dirname, 'backends', 'amplify-table', 'rate-limit', 'updateTableTtl', 'enabled'));
     updateCDKAppWithTemplate(projRoot, updateTemplatePath);
     await expect(cdkDeploy(projRoot, '--all')).resolves.not.toThrow();
+
+    const updatedTable = await getDDBTable(tableName, region);
+    expect(updatedTable).toBeDefined();
+
+    // Verify the tags on the table after update
+    const updatedTableTags = await getDDBTableTags(updatedTable.Table.TableArn, region);
+    expect(updatedTableTags.Tags).toBeDefined();
+    expect(updatedTableTags.Tags.length).toBe(0);
   });
 });
diff --git a/packages/amplify-graphql-api-construct-tests/src/__tests__/backends/amplify-table/rate-limit/createTableTtl/app.ts b/packages/amplify-graphql-api-construct-tests/src/__tests__/backends/amplify-table/rate-limit/createTableTtl/app.ts
index 1c7b768469..2653ef83b3 100644
--- a/packages/amplify-graphql-api-construct-tests/src/__tests__/backends/amplify-table/rate-limit/createTableTtl/app.ts
+++ b/packages/amplify-graphql-api-construct-tests/src/__tests__/backends/amplify-table/rate-limit/createTableTtl/app.ts
@@ -1,6 +1,6 @@
 #!/usr/bin/env node
 import 'source-map-support/register';
-import { App, Stack, Duration } from 'aws-cdk-lib';
+import { App, Stack, Duration, Tags } from 'aws-cdk-lib';
 // @ts-ignore
 import { AmplifyGraphqlApi, AmplifyGraphqlDefinition } from '@aws-amplify/graphql-api-construct';
 
@@ -37,3 +37,5 @@ new AmplifyGraphqlApi(stack, 'GraphqlApi', {
     apiKeyConfig: { expires: Duration.days(7) },
   },
 });
+
+Tags.of(stack).add('created-by', 'amplify-original');
diff --git a/packages/amplify-graphql-api-construct-tests/src/__tests__/backends/amplify-table/rate-limit/updateTableTtl/disabled/app.ts b/packages/amplify-graphql-api-construct-tests/src/__tests__/backends/amplify-table/rate-limit/updateTableTtl/disabled/app.ts
index 9b8bb47b73..e7ac62bed9 100644
--- a/packages/amplify-graphql-api-construct-tests/src/__tests__/backends/amplify-table/rate-limit/updateTableTtl/disabled/app.ts
+++ b/packages/amplify-graphql-api-construct-tests/src/__tests__/backends/amplify-table/rate-limit/updateTableTtl/disabled/app.ts
@@ -1,6 +1,6 @@
 #!/usr/bin/env node
 import 'source-map-support/register';
-import { App, Stack, Duration } from 'aws-cdk-lib';
+import { App, Stack, Duration, Tags } from 'aws-cdk-lib';
 // @ts-ignore
 import { AmplifyGraphqlApi, AmplifyGraphqlDefinition } from '@aws-amplify/graphql-api-construct';
 
@@ -31,3 +31,5 @@ new AmplifyGraphqlApi(stack, 'GraphqlApi', {
     apiKeyConfig: { expires: Duration.days(7) },
   },
 });
+
+Tags.of(stack).add('created-by', 'amplify-original');
diff --git a/packages/amplify-graphql-model-transformer/src/resources/amplify-dynamodb-table/amplify-dynamo-model-resource-generator.ts b/packages/amplify-graphql-model-transformer/src/resources/amplify-dynamodb-table/amplify-dynamo-model-resource-generator.ts
index e278b4f0c1..11508cf79f 100644
--- a/packages/amplify-graphql-model-transformer/src/resources/amplify-dynamodb-table/amplify-dynamo-model-resource-generator.ts
+++ b/packages/amplify-graphql-model-transformer/src/resources/amplify-dynamodb-table/amplify-dynamo-model-resource-generator.ts
@@ -67,6 +67,7 @@ export class AmplifyDynamoModelResourceGenerator extends DynamoModelResourceGene
             'dynamodb:UpdateContinuousBackups',
             'dynamodb:UpdateTimeToLive',
             'dynamodb:TagResource',
+            'dynamodb:UntagResource',
             'dynamodb:ListTagsOfResource',
           ],
           resources: [
diff --git a/packages/amplify-graphql-model-transformer/src/resources/amplify-dynamodb-table/amplify-table-manager-lambda/amplify-table-manager-handler.ts b/packages/amplify-graphql-model-transformer/src/resources/amplify-dynamodb-table/amplify-table-manager-lambda/amplify-table-manager-handler.ts
index d5d1c89e61..ae43017206 100644
--- a/packages/amplify-graphql-model-transformer/src/resources/amplify-dynamodb-table/amplify-table-manager-lambda/amplify-table-manager-handler.ts
+++ b/packages/amplify-graphql-model-transformer/src/resources/amplify-dynamodb-table/amplify-table-manager-lambda/amplify-table-manager-handler.ts
@@ -224,7 +224,17 @@ const processOnEvent = async (
       Object.values(tableDef.tags ?? []).forEach((tag) => {
         newTags.push({ Key: tag.key, Value: tag.value });
       });
-      if (requiresTagsUpdate(currentTableTags, newTags)) {
+      if (currentTableTags && currentTableTags.length > 0 && (!newTags || newTags.length === 0)) {
+        await ddbClient.untagResource({
+          ResourceArn: describeTableResult.Table.TableArn,
+          TagKeys: currentTableTags.map((tag) => tag.Key!),
+        });
+        await retry(
+          async () => await isTableReady(event.PhysicalResourceId!),
+          (res) => res === true,
+        );
+        console.log(`Table '${event.PhysicalResourceId}' is ready after the deletion of Tags.`);
+      } else if (requiresTagsUpdate(currentTableTags, newTags)) {
         console.log('Detected tag changes: ', tableDef.tags);
         await ddbClient.tagResource({
           ResourceArn: describeTableResult.Table.TableArn,
@@ -806,7 +816,7 @@ export const getSseUpdate = (currentState: TableDescription, endState: CustomDDB
  * @returns Boolean indicating if the tags are updated
  */
 export const requiresTagsUpdate = (currentTags: DynamoDBTag[], newTags?: DynamoDBTag[]): boolean => {
-  if (!newTags) {
+  if (!newTags || newTags.length === 0) {
     return false;
   }
   if (currentTags.length !== newTags.length) {