diff --git a/zerver/lib/event_schema.py b/zerver/lib/event_schema.py
index 5f2a7182c6..e32dfe12c3 100644
--- a/zerver/lib/event_schema.py
+++ b/zerver/lib/event_schema.py
@@ -1068,7 +1068,7 @@ check_realm_user_remove = make_checker(realm_user_remove_event)
 custom_profile_field_type = DictType(
     required_keys=[
         ("id", int),
-        ("value", str),
+        ("value", OptionalType(str)),
     ],
     optional_keys=[
         ("rendered_value", str),
diff --git a/zerver/lib/events.py b/zerver/lib/events.py
index d333cea497..b93a9e66a6 100644
--- a/zerver/lib/events.py
+++ b/zerver/lib/events.py
@@ -956,15 +956,17 @@ def apply_event(
                     p["is_billing_admin"] = person["is_billing_admin"]
 
                 if "custom_profile_field" in person:
-                    custom_field_id = person["custom_profile_field"]["id"]
+                    custom_field_id = str(person["custom_profile_field"]["id"])
                     custom_field_new_value = person["custom_profile_field"]["value"]
-                    if "rendered_value" in person["custom_profile_field"]:
-                        p["profile_data"][str(custom_field_id)] = {
+                    if custom_field_new_value is None and "profile_data" in p:
+                        p["profile_data"].pop(custom_field_id, None)
+                    elif "rendered_value" in person["custom_profile_field"]:
+                        p["profile_data"][custom_field_id] = {
                             "value": custom_field_new_value,
                             "rendered_value": person["custom_profile_field"]["rendered_value"],
                         }
                     else:
-                        p["profile_data"][str(custom_field_id)] = {
+                        p["profile_data"][custom_field_id] = {
                             "value": custom_field_new_value,
                         }
 
diff --git a/zerver/tests/test_events.py b/zerver/tests/test_events.py
index 42a6d190de..19a85c8aff 100644
--- a/zerver/tests/test_events.py
+++ b/zerver/tests/test_events.py
@@ -24,6 +24,7 @@ from zerver.actions.bots import (
 )
 from zerver.actions.create_user import do_create_user, do_reactivate_user
 from zerver.actions.custom_profile_fields import (
+    check_remove_custom_profile_field_value,
     do_remove_realm_custom_profile_field,
     do_update_user_custom_profile_data_if_changed,
     try_add_realm_custom_profile_field,
@@ -1126,6 +1127,13 @@ class NormalActionsTest(BaseAction):
         check_realm_user_update("events[0]", events[0], "custom_profile_field")
         self.assertEqual(events[0]["person"]["custom_profile_field"].keys(), {"id", "value"})
 
+        # Test event for removing custom profile data
+        events = self.verify_action(
+            lambda: check_remove_custom_profile_field_value(self.user_profile, field_id)
+        )
+        check_realm_user_update("events[0]", events[0], "custom_profile_field")
+        self.assertEqual(events[0]["person"]["custom_profile_field"].keys(), {"id", "value"})
+
     def test_presence_events(self) -> None:
         events = self.verify_action(
             lambda: do_update_user_presence(