diff --git a/app/client/src/entities/DataTree/dataTreeAction.ts b/app/client/src/entities/DataTree/dataTreeAction.ts
index c99388e5fb..ab528cae64 100644
--- a/app/client/src/entities/DataTree/dataTreeAction.ts
+++ b/app/client/src/entities/DataTree/dataTreeAction.ts
@@ -47,7 +47,7 @@ export const generateDataTreeAction = (
     pluginType: action.config.pluginType,
     config: action.config.actionConfiguration,
     dynamicBindingPathList,
-    data: action.data ? action.data.body : {},
+    data: action.data ? action.data.body : undefined,
     responseMeta: {
       statusCode: action.data?.statusCode,
       isExecutionSuccess: action.data?.isExecutionSuccess || false,
diff --git a/app/client/src/workers/DataTreeEvaluator.ts b/app/client/src/workers/DataTreeEvaluator.ts
index a02ae2ff80..a849900254 100644
--- a/app/client/src/workers/DataTreeEvaluator.ts
+++ b/app/client/src/workers/DataTreeEvaluator.ts
@@ -1385,6 +1385,7 @@ export default class DataTreeEvaluator {
               // In this case if the path exists in the dependency map
               // remove it.
               else if (fullPropertyPath in this.dependencyMap) {
+                didUpdateDependencyMap = true;
                 delete this.dependencyMap[fullPropertyPath];
               }
             }
diff --git a/app/client/src/workers/evaluationUtils.test.ts b/app/client/src/workers/evaluationUtils.test.ts
index 4c2b86733f..d88d91a807 100644
--- a/app/client/src/workers/evaluationUtils.test.ts
+++ b/app/client/src/workers/evaluationUtils.test.ts
@@ -8,13 +8,18 @@ import {
   PrivateWidgets,
 } from "entities/DataTree/dataTreeFactory";
 import {
+  DataTreeDiff,
+  DataTreeDiffEvent,
   getAllPaths,
   getAllPrivateWidgetsInDataTree,
   getDataTreeWithoutPrivateWidgets,
   isPrivateEntityPath,
   makeParentsDependOnChildren,
+  translateDiffEventToDataTreeDiffEvent,
 } from "./evaluationUtils";
 import { warn as logWarn } from "loglevel";
+import { Diff } from "deep-diff";
+import { flatten } from "lodash";
 
 // to check if logWarn was called.
 // use jest.unmock, if the mock needs to be removed.
@@ -274,3 +279,118 @@ describe("makeParentsDependOnChildren", () => {
     );
   });
 });
+
+describe("translateDiffEvent", () => {
+  it("noop when diff path does not exist", () => {
+    const noDiffPath: Diff<any, any> = {
+      kind: "E",
+      lhs: undefined,
+      rhs: undefined,
+    };
+    const result = translateDiffEventToDataTreeDiffEvent(noDiffPath, {});
+    expect(result).toStrictEqual({
+      payload: {
+        propertyPath: "",
+        value: "",
+      },
+      event: DataTreeDiffEvent.NOOP,
+    });
+  });
+  it("translates new and delete events", () => {
+    const diffs: Diff<any, any>[] = [
+      {
+        kind: "N",
+        path: ["Widget1"],
+        rhs: {},
+      },
+      {
+        kind: "N",
+        path: ["Widget1", "name"],
+        rhs: "Widget1",
+      },
+      {
+        kind: "D",
+        path: ["Widget1"],
+        lhs: {},
+      },
+      {
+        kind: "D",
+        path: ["Widget1", "name"],
+        lhs: "Widget1",
+      },
+      {
+        kind: "E",
+        path: ["Widget2", "name"],
+        rhs: "test",
+        lhs: "test2",
+      },
+    ];
+
+    const expectedTranslations: DataTreeDiff[] = [
+      {
+        payload: {
+          propertyPath: "Widget1",
+        },
+        event: DataTreeDiffEvent.NEW,
+      },
+      {
+        payload: {
+          propertyPath: "Widget1.name",
+        },
+        event: DataTreeDiffEvent.NEW,
+      },
+      {
+        payload: {
+          propertyPath: "Widget1",
+        },
+        event: DataTreeDiffEvent.DELETE,
+      },
+      {
+        payload: {
+          propertyPath: "Widget1.name",
+        },
+        event: DataTreeDiffEvent.DELETE,
+      },
+      {
+        payload: {
+          propertyPath: "",
+          value: "",
+        },
+        event: DataTreeDiffEvent.NOOP,
+      },
+    ];
+
+    const actualTranslations = flatten(
+      diffs.map((diff) => translateDiffEventToDataTreeDiffEvent(diff, {})),
+    );
+
+    expect(expectedTranslations).toStrictEqual(actualTranslations);
+  });
+
+  it("properly categorises the edit events", () => {
+    const diffs: Diff<any, any>[] = [
+      {
+        kind: "E",
+        path: ["Widget2", "name"],
+        rhs: "test",
+        lhs: "test2",
+      },
+    ];
+
+    const expectedTranslations: DataTreeDiff[] = [
+      {
+        payload: {
+          propertyPath: "",
+          value: "",
+        },
+        event: DataTreeDiffEvent.NOOP,
+      },
+    ];
+
+    const actualTranslations = flatten(
+      diffs.map((diff) => translateDiffEventToDataTreeDiffEvent(diff, {})),
+    );
+
+    expect(expectedTranslations).toStrictEqual(actualTranslations);
+  });
+});
diff --git a/app/client/src/workers/evaluationUtils.ts b/app/client/src/workers/evaluationUtils.ts
index bc734e5598..502b615b8b 100644
--- a/app/client/src/workers/evaluationUtils.ts
+++ b/app/client/src/workers/evaluationUtils.ts
@@ -164,11 +164,17 @@ export const translateDiffEventToDataTreeDiffEvent = (
       } else if (difference.lhs === undefined || difference.rhs === undefined) {
         // Handle static value changes that change structure that can lead to
         // old bindings being eligible
-        if (difference.lhs === undefined && isTrueObject(difference.rhs)) {
+        if (
+          difference.lhs === undefined &&
+          (isTrueObject(difference.rhs) || Array.isArray(difference.rhs))
+        ) {
           result.event = DataTreeDiffEvent.NEW;
           result.payload = { propertyPath };
         }
-        if (difference.rhs === undefined && isTrueObject(difference.lhs)) {
+        if (
+          difference.rhs === undefined &&
+          (isTrueObject(difference.lhs) || Array.isArray(difference.lhs))
+        ) {
           result.event = DataTreeDiffEvent.DELETE;
           result.payload = { propertyPath };
         }