diff --git a/agent/configmgr/fleet/from_rpc.go b/agent/configmgr/fleet/from_rpc.go
index 794541f..59864aa 100644
--- a/agent/configmgr/fleet/from_rpc.go
+++ b/agent/configmgr/fleet/from_rpc.go
@@ -62,6 +62,14 @@ func (messaging *Messaging) DispatchToHandlers(ctx context.Context, payload []by
 			return err
 		}
 		messaging.handleAgentGroupRemoval(groupRemoved.Payload, topicActions.Unsubscribe)
+
+	case messages.DatasetRemovedRPCFunc:
+		var r messages.DatasetRemovedRPC
+		if err := json.Unmarshal(payload, &r); err != nil {
+			messaging.logger.Error("error decoding dataset removal message from core", "error", messages.ErrSchemaMalformed)
+			return err
+		}
+		messaging.handleDatasetRemoval(r.Payload)
 	default:
 		messaging.logger.Debug("unknown rpc function", "func", rpc.Func)
 	}
@@ -166,3 +174,17 @@ func (messaging *Messaging) handleAgentGroupRemoval(rpc messages.GroupRemovedRPC
 		}
 	}
 }
+
+func (messaging *Messaging) handleDatasetRemoval(rpc messages.DatasetRemovedRPCPayload) {
+	policy, err := messaging.policyManager.GetRepo().Get(rpc.PolicyID)
+	if err != nil {
+		messaging.logger.Error("failed to retrieve policy", "policy_id", rpc.PolicyID, "error", err)
+		return
+	}
+	if !backend.HaveBackend(policy.Backend) {
+		messaging.logger.Error("policy backend not found", "policy_id", rpc.PolicyID, "policy_backend", policy.Backend)
+		return
+	}
+	be := backend.GetBackend(policy.Backend)
+	messaging.policyManager.RemovePolicyDataset(rpc.PolicyID, rpc.DatasetID, be)
+}
diff --git a/agent/configmgr/fleet/from_rpc_test.go b/agent/configmgr/fleet/from_rpc_test.go
index 76895e5..5c46783 100644
--- a/agent/configmgr/fleet/from_rpc_test.go
+++ b/agent/configmgr/fleet/from_rpc_test.go
@@ -200,6 +200,36 @@ func TestMessageHandlers_DispatchToHandlers(t *testing.T) {
 			expectedError:         false,
 			expectedPolicyMgrCall: true,
 		},
+		{
+			name:        "dataset_removed message type",
+			messageType: "dataset_removed",
+			rpc: messages.RPC{
+				SchemaVersion: "1.0",
+				Func:          "dataset_removed",
+				Payload: map[string]any{
+					"dataset_id": "dataset1",
+					"policy_id":  "policy1",
+				},
+			},
+			orgID:          "org123",
+			expectedTopics: []string{},
+			setupMocks: func(m *mockPolicyManager) {
+				// Register a test backend if not already registered
+				if !backend.HaveBackend("test_backend_dispatch") {
+					mockBe := &mockBackend{}
+					backend.Register("test_backend_dispatch", mockBe)
+				}
+				mockRepo := &mockPolicyRepo{}
+				mockRepo.On("Get", "policy1").Return(policies.PolicyData{
+					ID:      "policy1",
+					Backend: "test_backend_dispatch",
+				}, nil)
+				m.On("GetRepo").Return(mockRepo)
+				m.On("RemovePolicyDataset", "policy1", "dataset1", mock.Anything).Return()
+			},
+			expectedError:         false,
+			expectedPolicyMgrCall: true,
+		},
 		{
 			name:        "unknown message type",
 			messageType: "unknown_type",
@@ -972,3 +1002,123 @@ func TestMessageHandlers_DispatchToHandlers_MalformedGroupRemovedPayload(t *test
 	// Assert
 	assert.Error(t, err)
 }
+
+// Test DispatchToHandlers with malformed dataset_removed payload
+func TestMessageHandlers_DispatchToHandlers_MalformedDatasetRemovedPayload(t *testing.T) {
+	// Arrange
+	logger := slog.New(slog.NewTextHandler(os.Stderr, &slog.HandlerOptions{Level: slog.LevelError}))
+	mockPMgr := &mockPolicyManager{}
+	handlers := NewMessaging(logger, mockPMgr)
+
+	// Create malformed payload
+	malformedPayload := []byte(`{"schema_version":"1.0","func":"dataset_removed","payload":"not_a_structure"}`)
+
+	// Act
+	ctx := context.Background()
+	err := handlers.DispatchToHandlers(ctx, malformedPayload, "org123", "agent123", TopicActions{
+		Subscribe:   func(_ string) error { return nil },
+		Publish:     func(_ context.Context, _ string, _ []byte) error { return nil },
+		Unsubscribe: func(_ string) error { return nil },
+	})
+
+	// Assert
+	assert.Error(t, err)
+}
+
+// Test handleDatasetRemoval with successful dataset removal
+func TestMessageHandlers_handleDatasetRemoval_Success(t *testing.T) {
+	// Arrange
+	logger := slog.New(slog.NewTextHandler(os.Stderr, &slog.HandlerOptions{Level: slog.LevelError}))
+	mockPMgr := &mockPolicyManager{}
+	mockRepo := &mockPolicyRepo{}
+	handlers := NewMessaging(logger, mockPMgr)
+
+	// Register a mock backend for testing
+	mockBe := &mockBackend{}
+	backend.Register("test_backend", mockBe)
+	defer func() {
+		// Clean up - manually remove from registry
+		// Note: There's no Unregister function, but for isolated tests this is fine
+		// In a real scenario, we would want an Unregister function
+	}()
+
+	// Setup mock expectations
+	mockPMgr.On("GetRepo").Return(mockRepo)
+	mockRepo.On("Get", "policy1").Return(policies.PolicyData{
+		ID:      "policy1",
+		Name:    "Test Policy",
+		Backend: "test_backend",
+	}, nil)
+	mockPMgr.On("RemovePolicyDataset", "policy1", "dataset1", mockBe).Return()
+
+	// Create dataset removal payload
+	datasetRemoval := messages.DatasetRemovedRPCPayload{
+		DatasetID: "dataset1",
+		PolicyID:  "policy1",
+	}
+
+	// Act
+	handlers.handleDatasetRemoval(datasetRemoval)
+
+	// Assert
+	mockPMgr.AssertExpectations(t)
+	mockRepo.AssertExpectations(t)
+}
+
+// Test handleDatasetRemoval when policy retrieval fails
+func TestMessageHandlers_handleDatasetRemoval_PolicyRetrievalFails(t *testing.T) {
+	// Arrange
+	logger := slog.New(slog.NewTextHandler(os.Stderr, &slog.HandlerOptions{Level: slog.LevelError}))
+	mockPMgr := &mockPolicyManager{}
+	mockRepo := &mockPolicyRepo{}
+	handlers := NewMessaging(logger, mockPMgr)
+
+	// Setup mock expectations - Get fails
+	mockPMgr.On("GetRepo").Return(mockRepo)
+	mockRepo.On("Get", "policy1").Return(policies.PolicyData{}, assert.AnError)
+
+	// Create dataset removal payload
+	datasetRemoval := messages.DatasetRemovedRPCPayload{
+		DatasetID: "dataset1",
+		PolicyID:  "policy1",
+	}
+
+	// Act
+	handlers.handleDatasetRemoval(datasetRemoval)
+
+	// Assert - should return early without calling RemovePolicyDataset
+	mockPMgr.AssertNotCalled(t, "RemovePolicyDataset", mock.Anything, mock.Anything, mock.Anything)
+	mockPMgr.AssertExpectations(t)
+	mockRepo.AssertExpectations(t)
+}
+
+// Test handleDatasetRemoval when backend not found
+func TestMessageHandlers_handleDatasetRemoval_BackendNotFound(t *testing.T) {
+	// Arrange
+	logger := slog.New(slog.NewTextHandler(os.Stderr, &slog.HandlerOptions{Level: slog.LevelError}))
+	mockPMgr := &mockPolicyManager{}
+	mockRepo := &mockPolicyRepo{}
+	handlers := NewMessaging(logger, mockPMgr)
+
+	// Setup mock expectations - policy exists but with nonexistent backend
+	mockPMgr.On("GetRepo").Return(mockRepo)
+	mockRepo.On("Get", "policy1").Return(policies.PolicyData{
+		ID:      "policy1",
+		Name:    "Test Policy",
+		Backend: "nonexistent_backend",
+	}, nil)
+
+	// Create dataset removal payload
+	datasetRemoval := messages.DatasetRemovedRPCPayload{
+		DatasetID: "dataset1",
+		PolicyID:  "policy1",
+	}
+
+	// Act
+	handlers.handleDatasetRemoval(datasetRemoval)
+
+	// Assert - should return early without calling RemovePolicyDataset
+	mockPMgr.AssertNotCalled(t, "RemovePolicyDataset", mock.Anything, mock.Anything, mock.Anything)
+	mockPMgr.AssertExpectations(t)
+	mockRepo.AssertExpectations(t)
+}