diff --git a/lib/OnyxUtils.ts b/lib/OnyxUtils.ts
index 669eda86..951b5008 100644
--- a/lib/OnyxUtils.ts
+++ b/lib/OnyxUtils.ts
@@ -582,6 +582,96 @@ function tryGetCachedValue<TKey extends OnyxKey>(key: TKey): OnyxValue<OnyxKey>
     return val;
 }
 
+/**
+ * Marks items that existed in previousCollection but not in preservedCollection as null.
+ * This ensures subscribers are properly notified about item removals.
+ * @param preservedCollection - The collection to mark removed items in (mutated in place)
+ * @param previousCollection - The previous collection state to compare against
+ */
+function markRemovedItemsAsNull(preservedCollection: OnyxInputKeyValueMapping, previousCollection: OnyxCollection<KeyValueMapping[OnyxKey]>) {
+    if (!previousCollection) {
+        return preservedCollection;
+    }
+
+    const mutablePreservedCollection = {...preservedCollection};
+    Object.keys(previousCollection).forEach((key) => {
+        if (key in preservedCollection) {
+            return;
+        }
+
+        mutablePreservedCollection[key] = null;
+    });
+
+    return mutablePreservedCollection;
+}
+
+/**
+ * Utility function to preserve object references for unchanged items in collection operations.
+ * Compares new values with cached values using deep equality and preserves references when data is identical.
+ * @param keyValuePairs - Array of key-value pairs to process
+ * @param previousCollection - Optional previous collection state. If provided, removed items will be included as null
+ * @returns The preserved collection with unchanged references maintained and removed items marked as null
+ */
+function preserveCollectionReferences(keyValuePairs: StorageKeyValuePair[], previousCollection?: OnyxCollection<KeyValueMapping[OnyxKey]>): OnyxInputKeyValueMapping {
+    const preservedCollection: OnyxInputKeyValueMapping = {};
+
+    keyValuePairs.forEach(([key, value]) => {
+        const cachedValue = cache.get(key, false);
+
+        // If no cached value exists, we need to add the new value (skip expensive deep equality check)
+        // Use deep equality check to preserve references for unchanged items
+        if (cachedValue !== undefined && deepEqual(value, cachedValue)) {
+            // Keep the existing reference
+            preservedCollection[key] = cachedValue;
+        } else {
+            // Update cache only for changed items
+            cache.set(key, value);
+            preservedCollection[key] = value;
+        }
+    });
+
+    if (previousCollection) {
+        return markRemovedItemsAsNull(preservedCollection, previousCollection);
+    }
+
+    return preservedCollection;
+}
+
+/**
+ * Utility function for merge operations that preserves references after cache merge has been performed.
+ * Compares merged values with original cached values and preserves references when data is unchanged.
+ * @param collection - Collection of merged data
+ * @param originalCachedValues - Original cached values before merge
+ * @param previousCollection - Optional previous collection state. If provided, removed items will be included as null
+ * @returns The preserved collection with unchanged references maintained and removed items marked as null
+ */
+function preserveCollectionReferencesAfterMerge(
+    collection: Record<string, OnyxValue<OnyxKey>>,
+    originalCachedValues: Record<string, OnyxValue<OnyxKey>>,
+    previousCollection?: Record<string, OnyxValue<OnyxKey>>,
+): Record<string, OnyxValue<OnyxKey>> {
+    const preservedCollection: Record<string, OnyxValue<OnyxKey>> = {};
+
+    Object.keys(collection).forEach((key) => {
+        const newMergedValue = cache.get(key, false);
+        const originalValue = originalCachedValues[key];
+
+        // Use deep equality check to preserve references for unchanged items
+        if (originalValue !== undefined && deepEqual(newMergedValue, originalValue)) {
+            // Keep the existing reference for subscribers
+            preservedCollection[key] = originalValue;
+        } else {
+            preservedCollection[key] = newMergedValue;
+        }
+    });
+
+    if (previousCollection) {
+        return markRemovedItemsAsNull(preservedCollection, previousCollection);
+    }
+
+    return preservedCollection;
+}
+
 function getCachedCollection<TKey extends CollectionKeyBase>(collectionKey: TKey, collectionMemberKeys?: string[]): NonNullable<OnyxCollection<KeyValueMapping[TKey]>> {
     // Use optimized collection data retrieval when cache is populated
     const collectionData = cache.getCollectionData(collectionKey);
@@ -1469,9 +1559,10 @@ function setCollectionWithRetry<TKey extends CollectionKeyBase>({collectionKey,
         const keyValuePairs = OnyxUtils.prepareKeyValuePairsForStorage(mutableCollection, true, undefined, true);
         const previousCollection = OnyxUtils.getCachedCollection(collectionKey);
 
-        keyValuePairs.forEach(([key, value]) => cache.set(key, value));
+        // Preserve references for unchanged items and include removed items as null in setCollection
+        const preservedCollection = preserveCollectionReferences(keyValuePairs, previousCollection);
 
-        const updatePromise = OnyxUtils.scheduleNotifyCollectionSubscribers(collectionKey, mutableCollection, previousCollection);
+        const updatePromise = OnyxUtils.scheduleNotifyCollectionSubscribers(collectionKey, preservedCollection, previousCollection);
 
         return Storage.multiSet(keyValuePairs)
             .catch((error) => OnyxUtils.retryOperation(error, setCollectionWithRetry, {collectionKey, collection}, retryAttempt))
@@ -1532,6 +1623,9 @@ function mergeCollectionWithPatches<TKey extends CollectionKeyBase>(
 
     return getAllKeys()
         .then((persistedKeys) => {
+            // Capture keys that will be removed (before calling remove())
+            const keysToRemove = resultCollectionKeys.filter((key) => resultCollection[key] === null && persistedKeys.has(key));
+
             // Split to keys that exist in storage and keys that don't
             const keys = resultCollectionKeys.filter((key) => {
                 if (resultCollection[key] === null) {
@@ -1543,6 +1637,8 @@ function mergeCollectionWithPatches<TKey extends CollectionKeyBase>(
 
             const existingKeys = keys.filter((key) => persistedKeys.has(key));
 
+            // Get previous values for both existing keys and keys that will be removed
+            const allAffectedKeys = [...existingKeys, ...keysToRemove];
             const cachedCollectionForExistingKeys = getCachedCollection(collectionKey, existingKeys);
 
             const existingKeyCollection = existingKeys.reduce((obj: OnyxInputKeyValueMapping, key) => {
@@ -1579,7 +1675,8 @@ function mergeCollectionWithPatches<TKey extends CollectionKeyBase>(
 
             // We need to get the previously existing values so we can compare the new ones
             // against them, to avoid unnecessary subscriber updates.
-            const previousCollectionPromise = Promise.all(existingKeys.map((key) => get(key).then((value) => [key, value]))).then(Object.fromEntries);
+            // Include keys that will be removed so subscribers are notified about removals
+            const previousCollectionPromise = Promise.all(allAffectedKeys.map((key) => get(key).then((value) => [key, value]))).then(Object.fromEntries);
 
             // New keys will be added via multiSet while existing keys will be updated using multiMerge
             // This is because setting a key that doesn't exist yet with multiMerge will throw errors
@@ -1597,8 +1694,19 @@ function mergeCollectionWithPatches<TKey extends CollectionKeyBase>(
             // Prefill cache if necessary by calling get() on any existing keys and then merge original data to cache
             // and update all subscribers
             const promiseUpdate = previousCollectionPromise.then((previousCollection) => {
+                // Capture the original cached values before merging
+                const originalCachedValues: Record<string, OnyxValue<OnyxKey>> = {};
+                Object.keys(finalMergedCollection).forEach((key) => {
+                    originalCachedValues[key] = cache.get(key, false);
+                });
+
+                // Then merge all the data into cache as normal
+
                 cache.merge(finalMergedCollection);
-                return scheduleNotifyCollectionSubscribers(collectionKey, finalMergedCollection, previousCollection);
+
+                // Finally, preserve references for items that didn't actually change and include removed items as null
+                const preservedCollection = preserveCollectionReferencesAfterMerge(finalMergedCollection, originalCachedValues, previousCollection);
+                return scheduleNotifyCollectionSubscribers(collectionKey, preservedCollection, previousCollection);
             });
 
             return Promise.all(promises)
@@ -1662,9 +1770,10 @@ function partialSetCollection<TKey extends CollectionKeyBase>({collectionKey, co
         const previousCollection = getCachedCollection(collectionKey, existingKeys);
         const keyValuePairs = prepareKeyValuePairsForStorage(mutableCollection, true, undefined, true);
 
-        keyValuePairs.forEach(([key, value]) => cache.set(key, value));
+        // Preserve references for unchanged items and include removed items as null in partialSetCollection
+        const preservedCollection = preserveCollectionReferences(keyValuePairs, previousCollection);
 
-        const updatePromise = scheduleNotifyCollectionSubscribers(collectionKey, mutableCollection, previousCollection);
+        const updatePromise = scheduleNotifyCollectionSubscribers(collectionKey, preservedCollection, previousCollection);
 
         return Storage.multiSet(keyValuePairs)
             .catch((error) => retryOperation(error, partialSetCollection, {collectionKey, collection}, retryAttempt))
diff --git a/tests/unit/onyxUtilsTest.ts b/tests/unit/onyxUtilsTest.ts
index a390ed79..2744f6e5 100644
--- a/tests/unit/onyxUtilsTest.ts
+++ b/tests/unit/onyxUtilsTest.ts
@@ -228,6 +228,157 @@ describe('OnyxUtils', () => {
 
             await Onyx.disconnect(connection);
         });
+
+        it('should notify subscribers when removing collection items with null values', async () => {
+            let collectionResult: OnyxCollection<unknown>;
+            let callbackCount = 0;
+            const routeA = `${ONYXKEYS.COLLECTION.ROUTES}A`;
+            const routeB = `${ONYXKEYS.COLLECTION.ROUTES}B`;
+            const routeC = `${ONYXKEYS.COLLECTION.ROUTES}C`;
+
+            // Test with waitForCollectionCallback: true
+            const connection = Onyx.connect({
+                key: ONYXKEYS.COLLECTION.ROUTES,
+                initWithStoredValues: false,
+                callback: (value) => {
+                    collectionResult = value;
+                    callbackCount++;
+                },
+                waitForCollectionCallback: true,
+            });
+
+            // Set initial collection state
+            await Onyx.setCollection(ONYXKEYS.COLLECTION.ROUTES, {
+                [routeA]: {name: 'Route A'},
+                [routeB]: {name: 'Route B'},
+                [routeC]: {name: 'Route C'},
+            } as GenericCollection);
+
+            callbackCount = 0; // Reset counter after initial set
+
+            // Remove items by setting them to null
+            await OnyxUtils.partialSetCollection({
+                collectionKey: ONYXKEYS.COLLECTION.ROUTES,
+                collection: {
+                    [routeA]: null,
+                    [routeB]: null,
+                } as GenericCollection,
+            });
+
+            // Should be notified about the removal
+            expect(callbackCount).toBeGreaterThan(0);
+            expect(collectionResult).toEqual({
+                [routeC]: {name: 'Route C'},
+            });
+
+            await Onyx.disconnect(connection);
+        });
+
+        it('should notify individual key subscribers when removing collection items with null values', async () => {
+            let routeAValue: unknown;
+            let routeBValue: unknown;
+            let routeCValue: unknown;
+            const routeA = `${ONYXKEYS.COLLECTION.ROUTES}A`;
+            const routeB = `${ONYXKEYS.COLLECTION.ROUTES}B`;
+            const routeC = `${ONYXKEYS.COLLECTION.ROUTES}C`;
+
+            // Test with waitForCollectionCallback: false (individual callbacks)
+            const connectionA = Onyx.connect({
+                key: routeA,
+                initWithStoredValues: false,
+                callback: (value) => {
+                    routeAValue = value;
+                },
+            });
+
+            const connectionB = Onyx.connect({
+                key: routeB,
+                initWithStoredValues: false,
+                callback: (value) => {
+                    routeBValue = value;
+                },
+            });
+
+            const connectionC = Onyx.connect({
+                key: routeC,
+                initWithStoredValues: false,
+                callback: (value) => {
+                    routeCValue = value;
+                },
+            });
+
+            // Set initial collection state
+            await Onyx.setCollection(ONYXKEYS.COLLECTION.ROUTES, {
+                [routeA]: {name: 'Route A'},
+                [routeB]: {name: 'Route B'},
+                [routeC]: {name: 'Route C'},
+            } as GenericCollection);
+
+            // Remove items by setting them to null
+            await OnyxUtils.partialSetCollection({
+                collectionKey: ONYXKEYS.COLLECTION.ROUTES,
+                collection: {
+                    [routeA]: null,
+                    [routeB]: null,
+                } as GenericCollection,
+            });
+
+            // Individual subscribers should be notified about removals
+            expect(routeAValue).toBeUndefined();
+            expect(routeBValue).toBeUndefined();
+            expect(routeCValue).toEqual({name: 'Route C'});
+
+            await Onyx.disconnect(connectionA);
+            await Onyx.disconnect(connectionB);
+            await Onyx.disconnect(connectionC);
+        });
+
+        it('should notify collection subscribers without waitForCollectionCallback when removing items', async () => {
+            const callbackResults: Array<{value: unknown; key: string}> = [];
+            const routeA = `${ONYXKEYS.COLLECTION.ROUTES}A`;
+            const routeB = `${ONYXKEYS.COLLECTION.ROUTES}B`;
+            const routeC = `${ONYXKEYS.COLLECTION.ROUTES}C`;
+
+            // Test without waitForCollectionCallback (gets called for each item)
+            const connection = Onyx.connect({
+                key: ONYXKEYS.COLLECTION.ROUTES,
+                initWithStoredValues: false,
+                callback: (value, key) => {
+                    callbackResults.push({value, key});
+                },
+                waitForCollectionCallback: false,
+            });
+
+            // Set initial collection state
+            await Onyx.setCollection(ONYXKEYS.COLLECTION.ROUTES, {
+                [routeA]: {name: 'Route A'},
+                [routeB]: {name: 'Route B'},
+                [routeC]: {name: 'Route C'},
+            } as GenericCollection);
+
+            callbackResults.length = 0; // Clear after initial set
+
+            // Remove items by setting them to null
+            await OnyxUtils.partialSetCollection({
+                collectionKey: ONYXKEYS.COLLECTION.ROUTES,
+                collection: {
+                    [routeA]: null,
+                    [routeB]: null,
+                } as GenericCollection,
+            });
+
+            // Should be notified about removals (value will be undefined for removed keys)
+            const removalCallbacks = callbackResults.filter((result) => result.value === undefined);
+
+            // We expect at least routeA or routeB to have undefined callback
+            // Both should ideally be notified, but the exact behavior depends on iteration order
+            expect(removalCallbacks.length).toBeGreaterThanOrEqual(1);
+            const hasRouteARemoval = removalCallbacks.some((result) => result.key === routeA);
+            const hasRouteBRemoval = removalCallbacks.some((result) => result.key === routeB);
+            expect(hasRouteARemoval || hasRouteBRemoval).toBe(true);
+
+            await Onyx.disconnect(connection);
+        });
     });
 
     describe('keysChanged', () => {