diff --git a/letta/services/agent_manager.py b/letta/services/agent_manager.py
index d2261327..4df469e0 100644
--- a/letta/services/agent_manager.py
+++ b/letta/services/agent_manager.py
@@ -824,7 +824,7 @@ class AgentManager:
                 )
                 session.expire(agent, ["tags"])
 
-            agent_secrets = agent_update.secrets or agent_update.tool_exec_environment_variables
+            agent_secrets = agent_update.secrets if agent_update.secrets is not None else agent_update.tool_exec_environment_variables
             if agent_secrets is not None:
                 # Fetch existing environment variables to check if values changed
                 result = await session.execute(select(AgentEnvironmentVariable).where(AgentEnvironmentVariable.agent_id == aid))
diff --git a/tests/managers/test_agent_manager.py b/tests/managers/test_agent_manager.py
index 44273221..c374a764 100644
--- a/tests/managers/test_agent_manager.py
+++ b/tests/managers/test_agent_manager.py
@@ -1519,6 +1519,46 @@ async def test_agent_environment_variables_update_encryption(server: SyncServer,
                 pytest.fail(f"Unexpected key: {env_var.key}")
 
 
+@pytest.mark.asyncio
+async def test_agent_secrets_clear_with_empty_dict(server: SyncServer, default_user, encryption_key):
+    """Test that updating agent secrets with empty dict clears all secrets."""
+    from letta.orm.sandbox_config import AgentEnvironmentVariable as AgentEnvironmentVariableModel
+
+    # Create agent with initial secrets
+    agent_create = CreateAgent(
+        name="test-agent-clear-secrets",
+        agent_type="memgpt_v2_agent",
+        llm_config=LLMConfig.default_config("gpt-4o-mini"),
+        embedding_config=DEFAULT_EMBEDDING_CONFIG,
+        include_base_tools=False,
+        secrets={
+            "SECRET_KEY_1": "secret-value-1",
+            "SECRET_KEY_2": "secret-value-2",
+        },
+    )
+
+    created_agent = await server.agent_manager.create_agent_async(agent_create, actor=default_user)
+    agent_id = created_agent.id
+
+    # Verify secrets were created
+    assert created_agent.secrets is not None
+    assert len(created_agent.secrets) == 2
+
+    # Update with empty dict to clear all secrets
+    agent_update = UpdateAgent(secrets={})
+    updated_agent = await server.agent_manager.update_agent_async(agent_id=agent_id, agent_update=agent_update, actor=default_user)
+
+    # Verify secrets are cleared
+    assert updated_agent.secrets is not None
+    assert len(updated_agent.secrets) == 0
+
+    # Verify in database
+    async with db_registry.async_session() as session:
+        env_vars = await session.execute(select(AgentEnvironmentVariableModel).where(AgentEnvironmentVariableModel.agent_id == agent_id))
+        env_var_list = list(env_vars.scalars().all())
+        assert len(env_var_list) == 0
+
+
 @pytest.mark.asyncio
 async def test_agent_state_schema_unchanged(server: SyncServer):
     """