diff --git a/src/v/pandaproxy/schema_registry/seq_writer.cc b/src/v/pandaproxy/schema_registry/seq_writer.cc
index 230e81aaedf15..54d206c3eebd1 100644
--- a/src/v/pandaproxy/schema_registry/seq_writer.cc
+++ b/src/v/pandaproxy/schema_registry/seq_writer.cc
@@ -444,6 +444,13 @@ ss::future<std::optional<bool>> seq_writer::do_delete_subject_version(
     batch_builder rb(write_at, sub);
     rb(std::move(key), std::move(value));
 
+    {
+        // Clear config if this is a delete of the last version
+        auto vec = co_await _store.get_versions(sub, include_deleted::no);
+        if (vec.size() == 1 && vec.front() == version) {
+            rb(co_await _store.get_subject_config_written_at(sub));
+        }
+    }
     if (co_await produce_and_apply(write_at, std::move(rb).build())) {
         co_return true;
     } else {
diff --git a/src/v/pandaproxy/schema_registry/store.h b/src/v/pandaproxy/schema_registry/store.h
index d92131c0050a8..ae96c78663ab7 100644
--- a/src/v/pandaproxy/schema_registry/store.h
+++ b/src/v/pandaproxy/schema_registry/store.h
@@ -384,7 +384,14 @@ class store {
     result<std::vector<subject_version_entry>>
     get_version_ids(const subject& sub, include_deleted inc_del) const {
         auto sub_it = BOOST_OUTCOME_TRYX(get_subject_iter(sub, inc_del));
-        return sub_it->second.versions;
+        std::vector<subject_version_entry> res;
+        absl::c_copy_if(
+          sub_it->second.versions,
+          std::back_inserter(res),
+          [inc_del](const subject_version_entry& e) {
+              return inc_del || !e.deleted;
+          });
+        return {std::move(res)};
     }
 
     ///\brief Return whether this subject has a version that references the
@@ -393,8 +400,8 @@ class store {
       const subject& sub, schema_id id, include_deleted inc_del) const {
         auto sub_it = BOOST_OUTCOME_TRYX(get_subject_iter(sub, inc_del));
         const auto& vs = sub_it->second.versions;
-        return std::any_of(vs.cbegin(), vs.cend(), [id](const auto& entry) {
-            return entry.id == id;
+        return absl::c_any_of(vs, [id, inc_del](const auto& entry) {
+            return entry.id == id && (inc_del || !entry.deleted);
         });
     }
 
diff --git a/tests/rptest/tests/schema_registry_test.py b/tests/rptest/tests/schema_registry_test.py
index 27a8cfbade226..c92df69e381fa 100644
--- a/tests/rptest/tests/schema_registry_test.py
+++ b/tests/rptest/tests/schema_registry_test.py
@@ -1110,7 +1110,18 @@ def test_post_compatibility_subject_version(self):
                                                   version=1)
         assert result_raw.status_code == requests.codes.ok
 
-        self.logger.debug("Posting schema 1 again, expect same version")
+        self.logger.debug("Posting schema 1 again, expect incompatible")
+        result_raw = self._post_subjects_subject_versions(
+            subject=f"{topic}-key", data=schema_1_data)
+        assert result_raw.status_code == requests.codes.conflict
+
+        self.logger.debug("Set subject config - NONE")
+        result_raw = self._set_config_subject(subject=f"{topic}-key",
+                                              data=json.dumps(
+                                                  {"compatibility": "NONE"}))
+        assert result_raw.status_code == requests.codes.ok
+
+        self.logger.debug("Posting schema 1 again, expect same id")
         result_raw = self._post_subjects_subject_versions(
             subject=f"{topic}-key", data=schema_1_data)
         assert result_raw.status_code == requests.codes.ok
@@ -2654,6 +2665,125 @@ def test_protobuf(self):
         assert result_raw.status_code == requests.codes.ok
         assert result_raw.json() == [2]
 
+    @cluster(num_nodes=3)
+    def test_delete_subject_bug(self):
+        topic = 'foo'
+        self.logger.debug(f"Register a schema against a subject")
+        schema_1_data = json.dumps({"schema": schema1_def})
+
+        self.logger.debug("Posting schema 1 as a subject key")
+        result_raw = self._post_subjects_subject_versions(
+            subject=f"{topic}-key", data=schema_1_data, auth=self.super_auth)
+        self.logger.debug(result_raw)
+        assert result_raw.status_code == requests.codes.ok
+
+        self.logger.debug(f"Register a schema against a subject")
+        schema_2_data = json.dumps({"schema": schema2_def})
+
+        self.logger.debug("Posting schema 2 as a subject key")
+        result_raw = self._post_subjects_subject_versions(
+            subject=f"{topic}-key", data=schema_2_data, auth=self.super_auth)
+        self.logger.debug(result_raw)
+        assert result_raw.status_code == requests.codes.ok
+
+        self.logger.debug("Soft delete subject 1 version 1")
+        result_raw = self._delete_subject_version(subject=f"{topic}-key",
+                                                  version=1,
+                                                  auth=self.super_auth)
+        assert result_raw.status_code == requests.codes.ok, f'Code: {result_raw.status_code}'
+        assert result_raw.json() == 1, f"Json: {result_raw.json()}"
+
+        self.logger.debug("Soft delete subject 1 version 2")
+        result_raw = self._delete_subject_version(subject=f"{topic}-key",
+                                                  version=2,
+                                                  auth=self.super_auth)
+        assert result_raw.status_code == requests.codes.ok, f'Code: {result_raw.status_code}'
+        assert result_raw.json() == 2, f"Json: {result_raw.json()}"
+
+        self.logger.debug("Posting schema 1 - again - as a subject key")
+        result_raw = self._post_subjects_subject_versions(
+            subject=f"{topic}-key", data=schema_1_data, auth=self.super_auth)
+        self.logger.debug(result_raw)
+        assert result_raw.status_code == requests.codes.ok
+        assert result_raw.json() == {'id': 1}, f"Json: {result_raw.json()}"
+
+        self.logger.debug("Get subject versions")
+        result_raw = self._get_subjects_subject_versions(
+            subject=f"{topic}-key", auth=self.super_auth)
+        assert result_raw.status_code == requests.codes.ok, f'Code: {result_raw.status_code}'
+        assert result_raw.json() == [3], f"Json: {result_raw.json()}"
+
+        self.logger.debug("Posting schema 2 - again - as a subject key")
+        result_raw = self._post_subjects_subject_versions(
+            subject=f"{topic}-key", data=schema_2_data, auth=self.super_auth)
+        self.logger.debug(result_raw)
+        assert result_raw.status_code == requests.codes.ok
+        assert result_raw.json() == {'id': 2}, f"Json: {result_raw.json()}"
+
+        self.logger.debug("Get subject versions")
+        result_raw = self._get_subjects_subject_versions(
+            subject=f"{topic}-key", auth=self.super_auth)
+        assert result_raw.status_code == requests.codes.ok, f'Code: {result_raw.status_code}'
+        assert result_raw.json() == [3, 4], f"Json: {result_raw.json()}"
+
+    @cluster(num_nodes=3)
+    def test_delete_subject_last_clears_config(self):
+        topic = 'foo'
+
+        self.logger.debug("Set subject config - NONE")
+        result_raw = self._set_config_subject(subject=f"{topic}-key",
+                                              data=json.dumps(
+                                                  {"compatibility": "NONE"}),
+                                              auth=self.super_auth)
+        assert result_raw.status_code == requests.codes.ok
+
+        self.logger.debug(f"Register a schema against a subject")
+        schema_1_data = json.dumps({"schema": schema1_def})
+        schema_3_data = json.dumps({"schema": schema3_def})
+
+        self.logger.debug("Posting schema 1 as a subject key")
+        result_raw = self._post_subjects_subject_versions(
+            subject=f"{topic}-key", data=schema_1_data, auth=self.super_auth)
+        self.logger.debug(result_raw)
+        assert result_raw.status_code == requests.codes.ok
+
+        self.logger.debug("Get subject config - should be overriden")
+        result_raw = self._get_config_subject(subject=f"{topic}-key",
+                                              auth=self.super_auth)
+        assert result_raw.json()["compatibilityLevel"] == "NONE"
+
+        self.logger.debug("Soft delete subject 1 version 1")
+        result_raw = self._delete_subject_version(subject=f"{topic}-key",
+                                                  version=1,
+                                                  auth=self.super_auth)
+        assert result_raw.status_code == requests.codes.ok, f'Code: {result_raw.status_code}'
+        assert result_raw.json() == 1, f"Json: {result_raw.json()}"
+
+        self.logger.debug("Get subject config - should fail")
+        result_raw = self._get_config_subject(subject=f"{topic}-key",
+                                              auth=self.super_auth)
+        assert result_raw.status_code == requests.codes.not_found
+        assert result_raw.json()["error_code"] == 40408
+
+        self.logger.debug("Posting schema 1 as a subject key")
+        result_raw = self._post_subjects_subject_versions(
+            subject=f"{topic}-key", data=schema_1_data, auth=self.super_auth)
+        self.logger.debug(result_raw)
+        assert result_raw.status_code == requests.codes.ok
+
+        self.logger.debug(
+            "Posting incompatible schema 3 as a subject key - expect conflict")
+        result_raw = self._post_subjects_subject_versions(
+            subject=f"{topic}-key", data=schema_3_data, auth=self.super_auth)
+        self.logger.debug(result_raw)
+        assert result_raw.status_code == requests.codes.conflict
+
+        self.logger.debug("Get subject config - should fail")
+        result_raw = self._get_config_subject(subject=f"{topic}-key",
+                                              auth=self.super_auth)
+        assert result_raw.status_code == requests.codes.not_found
+        assert result_raw.json()["error_code"] == 40408
+
 
 class SchemaRegistryTest(SchemaRegistryTestMethods):
     """