diff --git a/.changelog/7433.txt b/.changelog/7433.txt
new file mode 100644
index 00000000000..d62dcb903da
--- /dev/null
+++ b/.changelog/7433.txt
@@ -0,0 +1,3 @@
+```release-note:bug
+bigquery: fixed a permadiff when `friendly_name` is removed from `google_bigquery_dataset`
+```
diff --git a/google/resource_big_query_dataset_test.go b/google/resource_big_query_dataset_test.go
index e083807fd4b..8c36e10fd47 100644
--- a/google/resource_big_query_dataset_test.go
+++ b/google/resource_big_query_dataset_test.go
@@ -35,6 +35,14 @@ func TestAccBigQueryDataset_basic(t *testing.T) {
 				ImportState:       true,
 				ImportStateVerify: true,
 			},
+			{
+				Config: testAccBigQueryDatasetUpdated2(datasetID),
+			},
+			{
+				ResourceName:      "google_bigquery_dataset.test",
+				ImportState:       true,
+				ImportStateVerify: true,
+			},
 		},
 	})
 }
@@ -212,6 +220,24 @@ resource "google_bigquery_dataset" "test" {
 `, datasetID)
 }
 
+func testAccBigQueryDatasetUpdated2(datasetID string) string {
+	return fmt.Sprintf(`
+resource "google_bigquery_dataset" "test" {
+  dataset_id                      = "%s"
+  # friendly_name                   = "bar"
+  description                     = "This is a bar description"
+  location                        = "EU"
+  default_partition_expiration_ms = 7200000
+  default_table_expiration_ms     = 7200000
+
+  labels = {
+    env                         = "bar"
+    default_table_expiration_ms = 7200000
+  }
+}
+`, datasetID)
+}
+
 func testAccBigQueryDatasetDeleteContents(datasetID string) string {
 	return fmt.Sprintf(`
 resource "google_bigquery_dataset" "contents_test" {
diff --git a/google/resource_bigquery_dataset.go b/google/resource_bigquery_dataset.go
index 83aaf87c00f..8971f608dd5 100644
--- a/google/resource_bigquery_dataset.go
+++ b/google/resource_bigquery_dataset.go
@@ -424,7 +424,7 @@ func resourceBigQueryDatasetCreate(d *schema.ResourceData, meta interface{}) err
 	friendlyNameProp, err := expandBigQueryDatasetFriendlyName(d.Get("friendly_name"), d, config)
 	if err != nil {
 		return err
-	} else if v, ok := d.GetOkExists("friendly_name"); !isEmptyValue(reflect.ValueOf(friendlyNameProp)) && (ok || !reflect.DeepEqual(v, friendlyNameProp)) {
+	} else if v, ok := d.GetOkExists("friendly_name"); ok || !reflect.DeepEqual(v, friendlyNameProp) {
 		obj["friendlyName"] = friendlyNameProp
 	}
 	labelsProp, err := expandBigQueryDatasetLabels(d.Get("labels"), d, config)
@@ -635,7 +635,7 @@ func resourceBigQueryDatasetUpdate(d *schema.ResourceData, meta interface{}) err
 	friendlyNameProp, err := expandBigQueryDatasetFriendlyName(d.Get("friendly_name"), d, config)
 	if err != nil {
 		return err
-	} else if v, ok := d.GetOkExists("friendly_name"); !isEmptyValue(reflect.ValueOf(v)) && (ok || !reflect.DeepEqual(v, friendlyNameProp)) {
+	} else if v, ok := d.GetOkExists("friendly_name"); ok || !reflect.DeepEqual(v, friendlyNameProp) {
 		obj["friendlyName"] = friendlyNameProp
 	}
 	labelsProp, err := expandBigQueryDatasetLabels(d.Get("labels"), d, config)