diff --git a/env0/resource_configuration_variable.go b/env0/resource_configuration_variable.go
index 38c162b0..4c3ce016 100644
--- a/env0/resource_configuration_variable.go
+++ b/env0/resource_configuration_variable.go
@@ -5,9 +5,11 @@ import (
 	"encoding/json"
 	"errors"
 	"fmt"
+	"log"
 	"strings"
 
 	"github.com/env0/terraform-provider-env0/client"
+	"github.com/env0/terraform-provider-env0/client/http"
 	"github.com/hashicorp/terraform-plugin-sdk/v2/diag"
 	"github.com/hashicorp/terraform-plugin-sdk/v2/helper/schema"
 )
@@ -199,6 +201,13 @@ func resourceConfigurationVariableRead(ctx context.Context, d *schema.ResourceDa
 	variable, err := apiClient.ConfigurationVariablesById(id)
 
 	if err != nil {
+		if frerr, ok := err.(*http.FailedResponseError); ok {
+			if frerr.NotFound() {
+				log.Printf("[WARN] Drift Detected: Terraform will remove %s from state", d.Id())
+				d.SetId("")
+				return nil
+			}
+		}
 		return diag.Errorf("could not get configurationVariable: %v", err)
 	}
 
diff --git a/env0/resource_configuration_variable_test.go b/env0/resource_configuration_variable_test.go
index 0a65938d..95a8ab57 100644
--- a/env0/resource_configuration_variable_test.go
+++ b/env0/resource_configuration_variable_test.go
@@ -10,6 +10,7 @@ import (
 	"text/template"
 
 	"github.com/env0/terraform-provider-env0/client"
+	"github.com/env0/terraform-provider-env0/client/http"
 	"github.com/golang/mock/gomock"
 	"github.com/hashicorp/terraform-plugin-sdk/v2/helper/resource"
 )
@@ -374,6 +375,30 @@ resource "%s" "test" {
 		})
 	})
 
+	t.Run("Configuration Removed in UI", func(t *testing.T) {
+		createTestCase := resource.TestCase{
+			Steps: []resource.TestStep{
+				{
+					Config: stepConfig,
+				},
+				{
+					Config: stepConfig,
+				},
+			},
+		}
+
+		runUnitTest(t, createTestCase, func(mock *client.MockApiClientInterface) {
+			gomock.InOrder(
+				mock.EXPECT().ConfigurationVariableCreate(configurationVariableCreateParams).Times(1).Return(configVar, nil),
+				mock.EXPECT().ConfigurationVariablesById(configVar.Id).Times(1).Return(configVar, nil),
+				mock.EXPECT().ConfigurationVariablesById(configVar.Id).Times(1).Return(client.ConfigurationVariable{}, http.NewMockFailedResponseError(404)),
+				mock.EXPECT().ConfigurationVariableCreate(configurationVariableCreateParams).Times(1).Return(configVar, nil),
+				mock.EXPECT().ConfigurationVariablesById(configVar.Id).Times(1).Return(configVar, nil),
+				mock.EXPECT().ConfigurationVariableDelete(configVar.Id).Times(1).Return(nil),
+			)
+		})
+	})
+
 	t.Run("Update", func(t *testing.T) {
 		newIsReadonly := false
 		newIsRequired := true