diff --git a/builtin/providers/aws/resource_aws_elastic_beanstalk_environment.go b/builtin/providers/aws/resource_aws_elastic_beanstalk_environment.go
index 1c0e632b5..114056166 100644
--- a/builtin/providers/aws/resource_aws_elastic_beanstalk_environment.go
+++ b/builtin/providers/aws/resource_aws_elastic_beanstalk_environment.go
@@ -334,13 +334,15 @@ func resourceAwsElasticBeanstalkEnvironmentUpdate(d *schema.ResourceData, meta i
 		// Additions and removals of options are done in a single API call, so we
 		// can't do our normal "remove these" and then later "add these", re-adding
 		// any updated settings.
-		// Because of this, we need to remove any settings in the "removable"
+		// Because of this, we need to exclude any settings in the "removable"
 		// settings that are also found in the "add" settings, otherwise they
 		// conflict. Here we loop through all the initial removables from the set
-		// difference, and delete from the slice any items found in both `add` and
-		// `rm` above
+		// difference, and create a new slice `remove` that contains those settings
+		// found in `rm` but not in `add`
+		var remove []*elasticbeanstalk.ConfigurationOptionSetting
 		if len(add) > 0 {
-			for i, r := range rm {
+			for _, r := range rm {
+				var update = false
 				for _, a := range add {
 					// ResourceNames are optional. Some defaults come with it, some do
 					// not. We need to guard against nil/empty in state as well as
@@ -354,14 +356,21 @@ func resourceAwsElasticBeanstalkEnvironmentUpdate(d *schema.ResourceData, meta i
 						}
 					}
 					if *r.Namespace == *a.Namespace && *r.OptionName == *a.OptionName {
-						log.Printf("[DEBUG] Removing Beanstalk setting: (%s::%s)", *a.Namespace, *a.OptionName)
-						rm = append(rm[:i], rm[i+1:]...)
+						log.Printf("[DEBUG] Updating Beanstalk setting (%s::%s) \"%s\" => \"%s\"", *a.Namespace, *a.OptionName, *r.Value, *a.Value)
+						update = true
+						break
 					}
 				}
+				// Only remove options that are not updates
+				if !update {
+					remove = append(remove, r)
+				}
 			}
+		} else {
+			remove = rm
 		}
 
-		for _, elem := range rm {
+		for _, elem := range remove {
 			updateOpts.OptionsToRemove = append(updateOpts.OptionsToRemove, &elasticbeanstalk.OptionSpecification{
 				Namespace:  elem.Namespace,
 				OptionName: elem.OptionName,
diff --git a/builtin/providers/aws/resource_aws_elastic_beanstalk_environment_test.go b/builtin/providers/aws/resource_aws_elastic_beanstalk_environment_test.go
index 94c8aa224..06667dd2e 100644
--- a/builtin/providers/aws/resource_aws_elastic_beanstalk_environment_test.go
+++ b/builtin/providers/aws/resource_aws_elastic_beanstalk_environment_test.go
@@ -235,14 +235,14 @@ func TestAccAWSBeanstalkEnv_basic_settings_update(t *testing.T) {
 				Config: testAccBeanstalkEnvConfig_settings(rInt),
 				Check: resource.ComposeTestCheckFunc(
 					testAccCheckBeanstalkEnvExists("aws_elastic_beanstalk_environment.tfenvtest", &app),
-					testAccVerifyBeanstalkConfig(&app, []string{"TF_LOG", "TF_SOME_VAR"}),
+					testAccVerifyBeanstalkConfig(&app, []string{"ENV_STATIC", "ENV_UPDATE"}),
 				),
 			},
 			resource.TestStep{
 				Config: testAccBeanstalkEnvConfig_settings_update(rInt),
 				Check: resource.ComposeTestCheckFunc(
 					testAccCheckBeanstalkEnvExists("aws_elastic_beanstalk_environment.tfenvtest", &app),
-					testAccVerifyBeanstalkConfig(&app, []string{"TF_LOG", "TF_SOME_VAR"}),
+					testAccVerifyBeanstalkConfig(&app, []string{"ENV_STATIC", "ENV_UPDATE"}),
 				),
 			},
 			resource.TestStep{
@@ -280,7 +280,7 @@ func testAccVerifyBeanstalkConfig(env *elasticbeanstalk.EnvironmentDescription,
 		cs := resp.ConfigurationSettings[0]
 
 		var foundEnvs []string
-		testStrings := []string{"TF_LOG", "TF_SOME_VAR"}
+		testStrings := []string{"ENV_STATIC", "ENV_UPDATE"}
 		for _, os := range cs.OptionSettings {
 			for _, k := range testStrings {
 				if *os.OptionName == k {
@@ -504,13 +504,19 @@ resource "aws_elastic_beanstalk_environment" "tfenvtest" {
 
   setting {
     namespace = "aws:elasticbeanstalk:application:environment"
-    name      = "TF_LOG"
+    name      = "ENV_STATIC"
     value     = "true"
   }
 
   setting {
     namespace = "aws:elasticbeanstalk:application:environment"
-    name      = "TF_SOME_VAR"
+    name      = "ENV_UPDATE"
+    value     = "true"
+  }
+
+  setting {
+    namespace = "aws:elasticbeanstalk:application:environment"
+    name      = "ENV_REMOVE"
     value     = "true"
   }
 
@@ -553,19 +559,19 @@ resource "aws_elastic_beanstalk_environment" "tfenvtest" {
 
   setting {
     namespace = "aws:elasticbeanstalk:application:environment"
-    name      = "TF_LOG"
+    name      = "ENV_STATIC"
     value     = "true"
   }
 
   setting {
     namespace = "aws:elasticbeanstalk:application:environment"
-    name      = "TF_SOME_VAR"
+    name      = "ENV_UPDATE"
     value     = "false"
   }
 
-	  setting {
+  setting {
     namespace = "aws:elasticbeanstalk:application:environment"
-    name      = "TF_SOME_NEW_VAR"
+    name      = "ENV_ADD"
     value     = "true"
   }