diff --git a/builtin/providers/aws/resource_aws_lambda_function.go b/builtin/providers/aws/resource_aws_lambda_function.go
index f123298e6..5f8a81684 100644
--- a/builtin/providers/aws/resource_aws_lambda_function.go
+++ b/builtin/providers/aws/resource_aws_lambda_function.go
@@ -495,6 +495,11 @@ func resourceAwsLambdaFunctionUpdate(d *schema.ResourceData, meta interface{}) e
 				}
 				configUpdate = true
 			}
+		} else {
+			configReq.Environment = &lambda.Environment{
+				Variables: aws.StringMap(map[string]string{}),
+			}
+			configUpdate = true
 		}
 	}
 
diff --git a/builtin/providers/aws/resource_aws_lambda_function_test.go b/builtin/providers/aws/resource_aws_lambda_function_test.go
index 349270d84..06c7a64db 100644
--- a/builtin/providers/aws/resource_aws_lambda_function_test.go
+++ b/builtin/providers/aws/resource_aws_lambda_function_test.go
@@ -77,6 +77,16 @@ func TestAccAWSLambdaFunction_envVariables(t *testing.T) {
 					resource.TestCheckResourceAttr("aws_lambda_function.lambda_function_test", "environment.0.variables.foo1", "bar1"),
 				),
 			},
+			{
+				Config: testAccAWSLambdaConfigEnvVariablesModifiedWithoutEnvironment(rName),
+				Check: resource.ComposeTestCheckFunc(
+					testAccCheckAwsLambdaFunctionExists("aws_lambda_function.lambda_function_test", rName, &conf),
+					testAccCheckAwsLambdaFunctionName(&conf, rName),
+					testAccCheckAwsLambdaFunctionArnHasSuffix(&conf, ":"+rName),
+					resource.TestCheckResourceAttr("aws_lambda_function.lambda_function_test", "environment.0.variables.foo", ""),
+					resource.TestCheckResourceAttr("aws_lambda_function.lambda_function_test", "environment.0.variables.foo1", ""),
+				),
+			},
 		},
 	})
 }
@@ -648,6 +658,17 @@ resource "aws_lambda_function" "lambda_function_test" {
 `, rName)
 }
 
+func testAccAWSLambdaConfigEnvVariablesModifiedWithoutEnvironment(rName string) string {
+	return fmt.Sprintf(baseAccAWSLambdaConfig+`
+resource "aws_lambda_function" "lambda_function_test" {
+    filename = "test-fixtures/lambdatest.zip"
+    function_name = "%s"
+    role = "${aws_iam_role.iam_for_lambda.arn}"
+    handler = "exports.example"
+}
+`, rName)
+}
+
 func testAccAWSLambdaConfigEncryptedEnvVariables(rName string) string {
 	return fmt.Sprintf(baseAccAWSLambdaConfig+`
 resource "aws_kms_key" "foo" {