diff --git a/src/RadixDlt.NetworkGateway.PostgresIntegration/LedgerExtension/EntitySchemaProcessor.cs b/src/RadixDlt.NetworkGateway.PostgresIntegration/LedgerExtension/EntitySchemaProcessor.cs
index ca4b24db2..3d5c1a824 100644
--- a/src/RadixDlt.NetworkGateway.PostgresIntegration/LedgerExtension/EntitySchemaProcessor.cs
+++ b/src/RadixDlt.NetworkGateway.PostgresIntegration/LedgerExtension/EntitySchemaProcessor.cs
@@ -68,33 +68,40 @@
 using RadixDlt.NetworkGateway.PostgresIntegration.Models;
 using System.Collections.Generic;
 using System.Collections.Immutable;
+using System.Diagnostics;
 using System.Linq;
 using System.Threading.Tasks;
 using CoreModel = RadixDlt.CoreApiSdk.Model;
 
 namespace RadixDlt.NetworkGateway.PostgresIntegration.LedgerExtension;
 
+internal record struct SchemaDefinitionEntryDbLookup(long EntityId, ValueBytes SchemaHash);
 internal record struct SchemaChangePointerLookup(long EntityId, long StateVersion);
 
 internal record SchemaChangePointer
 {
     public List<CoreModel.SchemaEntrySubstate> Entries { get; } = new();
+
+    public List<string> DeletedSchemaHashes { get; } = new();
 }
 
 internal class EntitySchemaProcessor
 {
     private readonly ProcessorContext _context;
+    private readonly byte _networkId;
 
     private readonly ChangeTracker<SchemaChangePointerLookup, SchemaChangePointer> _changes = new();
 
     private readonly Dictionary<long, SchemaEntryAggregateHistory> _mostRecentAggregates = new();
+    private readonly Dictionary<SchemaDefinitionEntryDbLookup, SchemaEntryDefinition> _existingSchemas = new();
 
     private readonly List<SchemaEntryAggregateHistory> _aggregatesToAdd = new();
     private readonly List<SchemaEntryDefinition> _definitionsToAdd = new();
 
-    public EntitySchemaProcessor(ProcessorContext context)
+    public EntitySchemaProcessor(ProcessorContext context, byte networkId)
     {
         _context = context;
+        _networkId = networkId;
     }
 
     public void VisitUpsert(CoreModel.Substate substateData, ReferencedEntity referencedEntity, long stateVersion)
@@ -108,9 +115,24 @@ public void VisitUpsert(CoreModel.Substate substateData, ReferencedEntity refere
         }
     }
 
+    public void VisitDelete(CoreModel.SubstateId substateId, ReferencedEntity referencedEntity, long stateVersion)
+    {
+        if (substateId.SubstateType == CoreModel.SubstateType.SchemaEntry)
+        {
+            var keyHex = ((CoreModel.MapSubstateKey)substateId.SubstateKey).KeyHex;
+            var schemaHash = ScryptoSborUtils.DataToProgrammaticScryptoSborValueBytes(keyHex.ConvertFromHex(), _networkId);
+
+            _changes
+                .GetOrAdd(new SchemaChangePointerLookup(referencedEntity.DatabaseId, stateVersion), _ => new SchemaChangePointer())
+                .DeletedSchemaHashes
+                .Add(schemaHash.Hex);
+        }
+    }
+
     public async Task LoadDependencies()
     {
         _mostRecentAggregates.AddRange(await MostRecentSchemaEntryAggregateHistory());
+        _existingSchemas.AddRange(await LoadExistingSchemas());
     }
 
     public void ProcessChanges()
@@ -157,6 +179,29 @@ public void ProcessChanges()
 
                 aggregate.EntryIds.Insert(0, entryDefinition.Id);
             }
+
+            foreach (var deletedSchemaHash in change.DeletedSchemaHashes)
+            {
+                var entryLookup = new SchemaDefinitionEntryDbLookup(lookup.EntityId, deletedSchemaHash.ConvertFromHex());
+
+                if (_existingSchemas.TryGetValue(entryLookup, out var previousEntry))
+                {
+                    var currentPosition = aggregate.EntryIds.IndexOf(previousEntry.Id);
+
+                    if (currentPosition != -1)
+                    {
+                        aggregate.EntryIds.RemoveAt(currentPosition);
+                    }
+                    else
+                    {
+                        throw new UnreachableException($"Unexpected situation where SchemaEntryDefinition with EntityId:{entryLookup.EntityId}, SchemaHash:{deletedSchemaHash} got deleted but wasn't found in aggregate table.");
+                    }
+                }
+                else
+                {
+                    throw new UnreachableException($"Unexpected situation where SchemaEntryDefinition with EntityId:{entryLookup.EntityId}, SchemaHash:{deletedSchemaHash} got deleted but wasn't found in gateway database.");
+                }
+            }
         }
     }
 
@@ -196,6 +241,31 @@ LIMIT 1
             e => e.EntityId);
     }
 
+    private async Task<IDictionary<SchemaDefinitionEntryDbLookup, SchemaEntryDefinition>> LoadExistingSchemas()
+    {
+        var lookupSet = new HashSet<SchemaDefinitionEntryDbLookup>();
+
+        foreach (var (lookup, change) in _changes.AsEnumerable())
+        {
+            foreach (var deletedSchemaHash in change.DeletedSchemaHashes)
+            {
+                lookupSet.Add(new SchemaDefinitionEntryDbLookup(lookup.EntityId, deletedSchemaHash.ConvertFromHex()));
+            }
+        }
+
+        if (!lookupSet.Unzip(x => x.EntityId, x => (byte[])x.SchemaHash, out var entityIds, out var schemaHashes))
+        {
+            return ImmutableDictionary<SchemaDefinitionEntryDbLookup, SchemaEntryDefinition>.Empty;
+        }
+
+        return await _context.ReadHelper.LoadDependencies<SchemaDefinitionEntryDbLookup, SchemaEntryDefinition>(
+            @$"
+SELECT *
+FROM schema_entry_definition
+WHERE (entity_id, schema_hash) IN (SELECT UNNEST({entityIds}), UNNEST({schemaHashes}));",
+            e => new SchemaDefinitionEntryDbLookup(e.EntityId, e.SchemaHash));
+    }
+
     private Task<int> CopySchemaEntryDefinitions() => _context.WriteHelper.Copy(
         _definitionsToAdd,
         "COPY schema_entry_definition (id, from_state_version, entity_id, schema_hash, schema) FROM STDIN (FORMAT BINARY)",
diff --git a/src/RadixDlt.NetworkGateway.PostgresIntegration/LedgerExtension/PostgresLedgerExtenderService.cs b/src/RadixDlt.NetworkGateway.PostgresIntegration/LedgerExtension/PostgresLedgerExtenderService.cs
index 6d06cd87e..1930e333c 100644
--- a/src/RadixDlt.NetworkGateway.PostgresIntegration/LedgerExtension/PostgresLedgerExtenderService.cs
+++ b/src/RadixDlt.NetworkGateway.PostgresIntegration/LedgerExtension/PostgresLedgerExtenderService.cs
@@ -808,7 +808,7 @@ private async Task<ExtendLedgerReport> ProcessTransactions(ReadWriteDbContext db
         var processorContext = new ProcessorContext(sequences, readHelper, writeHelper, token);
         var entityStateProcessor = new EntityStateProcessor(processorContext, referencedEntities);
         var entityMetadataProcessor = new EntityMetadataProcessor(processorContext);
-        var entitySchemaProcessor = new EntitySchemaProcessor(processorContext);
+        var entitySchemaProcessor = new EntitySchemaProcessor(processorContext, networkConfiguration.Id);
         var componentMethodRoyaltyProcessor = new ComponentMethodRoyaltyProcessor(processorContext);
         var entityRoleAssignmentProcessor = new EntityRoleAssignmentProcessor(processorContext);
         var packageCodeProcessor = new PackageCodeProcessor(processorContext, networkConfiguration.Id);
@@ -999,6 +999,7 @@ private async Task<ExtendLedgerReport> ProcessTransactions(ReadWriteDbContext db
                         }
 
                         packageCodeProcessor.VisitDelete(substateId, referencedEntity, stateVersion);
+                        entitySchemaProcessor.VisitDelete(substateId, referencedEntity, stateVersion);
                     }
 
                     var transaction = ledgerTransactionsToAdd.Single(x => x.StateVersion == stateVersion);