diff --git a/CHANGELOG.md b/CHANGELOG.md
index 2d5605b..569cd3f 100644
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -1,3 +1,7 @@
+## 0.1.19 (unreleased)
+
+- Fix issue with tags removal from templates in `catalystcenter_assign_templates_to_tag` resource, [link](https://github.com/CiscoDevNet/terraform-provider-catalystcenter/issues/165)
+
 ## 0.1.18
 
 - Add `catalystcenter_fabric_l3_virtual_network` resource and data source
diff --git a/docs/guides/changelog.md b/docs/guides/changelog.md
index 751777b..2d0726a 100644
--- a/docs/guides/changelog.md
+++ b/docs/guides/changelog.md
@@ -7,6 +7,10 @@ description: |-
 
 # Changelog
 
+## 0.1.19 (unreleased)
+
+- Fix issue with tags removal from templates in `catalystcenter_assign_templates_to_tag` resource, [link](https://github.com/CiscoDevNet/terraform-provider-catalystcenter/issues/165)
+
 ## 0.1.18
 
 - Add `catalystcenter_fabric_l3_virtual_network` resource and data source
diff --git a/gen/definitions/assign_templates_to_tag.yaml b/gen/definitions/assign_templates_to_tag.yaml
index a41de28..b3eaeaf 100644
--- a/gen/definitions/assign_templates_to_tag.yaml
+++ b/gen/definitions/assign_templates_to_tag.yaml
@@ -3,7 +3,7 @@ name: Assign Templates to Tag
 rest_endpoint: /dna/intent/api/v1/tag/%v/member
 get_extra_query_params: '?memberType=template'
 get_no_id: true
-# Manual updates in Delete function to handle removal of templates from tag in resource file, and fromBody, updateFromBody functions in model file
+# Manual updates in Update and Delete function to handle removal of templates from tag in resource file, and fromBody, updateFromBody functions in model file
 res_description: 'This resource is responsible for assigning templates to a specified tag during creation
   and removing the template from the tag during destroy operation.'
 post_update: true
diff --git a/internal/provider/resource_catalystcenter_assign_templates_to_tag.go b/internal/provider/resource_catalystcenter_assign_templates_to_tag.go
index 7881863..a410fe3 100644
--- a/internal/provider/resource_catalystcenter_assign_templates_to_tag.go
+++ b/internal/provider/resource_catalystcenter_assign_templates_to_tag.go
@@ -163,7 +163,6 @@ func (r *AssignTemplatesToTagResource) Read(ctx context.Context, req resource.Re
 
 // End of section. //template:end read
 
-// Section below is generated&owned by "gen/generator.go". //template:begin update
 func (r *AssignTemplatesToTagResource) Update(ctx context.Context, req resource.UpdateRequest, resp *resource.UpdateResponse) {
 	var plan, state AssignTemplatesToTag
 
@@ -182,6 +181,37 @@ func (r *AssignTemplatesToTagResource) Update(ctx context.Context, req resource.
 
 	tflog.Debug(ctx, fmt.Sprintf("%s: Beginning Update", plan.Id.ValueString()))
 
+	// Handle removed template IDs
+	stateTemplateIds := make(map[string]struct{})
+	planTemplateIds := make(map[string]struct{})
+
+	if !state.TemplateIds.IsNull() {
+		var stateValues []string
+		state.TemplateIds.ElementsAs(ctx, &stateValues, false)
+		for _, id := range stateValues {
+			stateTemplateIds[id] = struct{}{}
+		}
+	}
+
+	if !plan.TemplateIds.IsNull() {
+		var planValues []string
+		plan.TemplateIds.ElementsAs(ctx, &planValues, false)
+		for _, id := range planValues {
+			planTemplateIds[id] = struct{}{}
+		}
+	}
+
+	for id := range stateTemplateIds {
+		if _, exists := planTemplateIds[id]; !exists {
+			_, err := r.client.Delete(plan.getPath() + "/" + url.QueryEscape(id))
+			if err != nil {
+				resp.Diagnostics.AddError("Client Error", fmt.Sprintf("Failed to delete template (%s), got error: %s", id, err))
+				return
+			}
+		}
+	}
+	//
+
 	body := plan.toBody(ctx, state)
 	params := ""
 	res, err := r.client.Post(plan.getPath()+params, body)
@@ -196,8 +226,6 @@ func (r *AssignTemplatesToTagResource) Update(ctx context.Context, req resource.
 	resp.Diagnostics.Append(diags...)
 }
 
-// End of section. //template:end update
-
 func (r *AssignTemplatesToTagResource) Delete(ctx context.Context, req resource.DeleteRequest, resp *resource.DeleteResponse) {
 	var state AssignTemplatesToTag
 
diff --git a/templates/guides/changelog.md.tmpl b/templates/guides/changelog.md.tmpl
index 751777b..2d0726a 100644
--- a/templates/guides/changelog.md.tmpl
+++ b/templates/guides/changelog.md.tmpl
@@ -7,6 +7,10 @@ description: |-
 
 # Changelog
 
+## 0.1.19 (unreleased)
+
+- Fix issue with tags removal from templates in `catalystcenter_assign_templates_to_tag` resource, [link](https://github.com/CiscoDevNet/terraform-provider-catalystcenter/issues/165)
+
 ## 0.1.18
 
 - Add `catalystcenter_fabric_l3_virtual_network` resource and data source