diff --git a/apis/v1alpha1/ack-generate-metadata.yaml b/apis/v1alpha1/ack-generate-metadata.yaml
index f6f340a..6c531a0 100755
--- a/apis/v1alpha1/ack-generate-metadata.yaml
+++ b/apis/v1alpha1/ack-generate-metadata.yaml
@@ -1,13 +1,13 @@
 ack_generate_info:
-  build_date: "2026-06-26T00:25:13Z"
-  build_hash: 2ae5d2cfadaa2a10b2ccb9e73a111b2a91c36642
+  build_date: "2026-06-26T18:51:59Z"
+  build_hash: 016cc97b328515c8db205ad1091916a0cc66614b
   go_version: go1.26.4
-  version: v0.60.0
+  version: v0.60.0-2-g016cc97
 api_directory_checksum: ce4e1b9e43ddbbd1de4d42cb5734359c61a0040c
 api_version: v1alpha1
 aws_sdk_go_version: v1.41.5
 generator_config_info:
-  file_checksum: 84db182faab650d546e93c61de79c969df4a9c50
+  file_checksum: a44e7bd907fefe1b00641992a05da31c16efb5ab
   original_file_name: generator.yaml
 last_modification:
   reason: API generation
diff --git a/apis/v1alpha1/generator.yaml b/apis/v1alpha1/generator.yaml
index 328ce6e..97619df 100644
--- a/apis/v1alpha1/generator.yaml
+++ b/apis/v1alpha1/generator.yaml
@@ -253,6 +253,10 @@ resources:
         code: customPreCompare(delta, a, b)
       sdk_read_one_post_set_output:
         template_path: hooks/eventsourcemapping/sdk_read_one_post_set_output.go.tpl
+      sdk_create_post_set_output:
+        template_path: hooks/eventsourcemapping/clean_destination_config.go.tpl
+      sdk_update_post_set_output:
+        template_path: hooks/eventsourcemapping/clean_destination_config.go.tpl
       sdk_update_pre_build_request:
         template_path: hooks/eventsourcemapping/sdk_update_pre_build_request.go.tpl
       sdk_update_post_build_request:
diff --git a/generator.yaml b/generator.yaml
index 328ce6e..97619df 100644
--- a/generator.yaml
+++ b/generator.yaml
@@ -253,6 +253,10 @@ resources:
         code: customPreCompare(delta, a, b)
       sdk_read_one_post_set_output:
         template_path: hooks/eventsourcemapping/sdk_read_one_post_set_output.go.tpl
+      sdk_create_post_set_output:
+        template_path: hooks/eventsourcemapping/clean_destination_config.go.tpl
+      sdk_update_post_set_output:
+        template_path: hooks/eventsourcemapping/clean_destination_config.go.tpl
       sdk_update_pre_build_request:
         template_path: hooks/eventsourcemapping/sdk_update_pre_build_request.go.tpl
       sdk_update_post_build_request:
diff --git a/pkg/resource/event_source_mapping/sdk.go b/pkg/resource/event_source_mapping/sdk.go
index 7f891c6..9807a50 100644
--- a/pkg/resource/event_source_mapping/sdk.go
+++ b/pkg/resource/event_source_mapping/sdk.go
@@ -384,6 +384,17 @@ func (rm *resourceManager) sdkFind(
 	if err != nil {
 		return nil, err
 	}
+	if ko.Spec.DestinationConfig != nil {
+		if ko.Spec.DestinationConfig.OnFailure != nil && ko.Spec.DestinationConfig.OnFailure.Destination == nil {
+			ko.Spec.DestinationConfig.OnFailure = nil
+		}
+		if ko.Spec.DestinationConfig.OnSuccess != nil && ko.Spec.DestinationConfig.OnSuccess.Destination == nil {
+			ko.Spec.DestinationConfig.OnSuccess = nil
+		}
+		if ko.Spec.DestinationConfig.OnFailure == nil && ko.Spec.DestinationConfig.OnSuccess == nil {
+			ko.Spec.DestinationConfig = nil
+		}
+	}
 
 	return &resource{ko}, nil
 }
@@ -729,6 +740,18 @@ func (rm *resourceManager) sdkCreate(
 	}
 
 	rm.setStatusDefaults(ko)
+	if ko.Spec.DestinationConfig != nil {
+		if ko.Spec.DestinationConfig.OnFailure != nil && ko.Spec.DestinationConfig.OnFailure.Destination == nil {
+			ko.Spec.DestinationConfig.OnFailure = nil
+		}
+		if ko.Spec.DestinationConfig.OnSuccess != nil && ko.Spec.DestinationConfig.OnSuccess.Destination == nil {
+			ko.Spec.DestinationConfig.OnSuccess = nil
+		}
+		if ko.Spec.DestinationConfig.OnFailure == nil && ko.Spec.DestinationConfig.OnSuccess == nil {
+			ko.Spec.DestinationConfig = nil
+		}
+	}
+
 	return &resource{ko}, nil
 }
 
@@ -1326,6 +1349,18 @@ func (rm *resourceManager) sdkUpdate(
 	}
 
 	rm.setStatusDefaults(ko)
+	if ko.Spec.DestinationConfig != nil {
+		if ko.Spec.DestinationConfig.OnFailure != nil && ko.Spec.DestinationConfig.OnFailure.Destination == nil {
+			ko.Spec.DestinationConfig.OnFailure = nil
+		}
+		if ko.Spec.DestinationConfig.OnSuccess != nil && ko.Spec.DestinationConfig.OnSuccess.Destination == nil {
+			ko.Spec.DestinationConfig.OnSuccess = nil
+		}
+		if ko.Spec.DestinationConfig.OnFailure == nil && ko.Spec.DestinationConfig.OnSuccess == nil {
+			ko.Spec.DestinationConfig = nil
+		}
+	}
+
 	return &resource{ko}, nil
 }
 
diff --git a/templates/hooks/eventsourcemapping/clean_destination_config.go.tpl b/templates/hooks/eventsourcemapping/clean_destination_config.go.tpl
new file mode 100644
index 0000000..cad282b
--- /dev/null
+++ b/templates/hooks/eventsourcemapping/clean_destination_config.go.tpl
@@ -0,0 +1,11 @@
+	if ko.Spec.DestinationConfig != nil {
+		if ko.Spec.DestinationConfig.OnFailure != nil && ko.Spec.DestinationConfig.OnFailure.Destination == nil {
+			ko.Spec.DestinationConfig.OnFailure = nil
+		}
+		if ko.Spec.DestinationConfig.OnSuccess != nil && ko.Spec.DestinationConfig.OnSuccess.Destination == nil {
+			ko.Spec.DestinationConfig.OnSuccess = nil
+		}
+		if ko.Spec.DestinationConfig.OnFailure == nil && ko.Spec.DestinationConfig.OnSuccess == nil {
+			ko.Spec.DestinationConfig = nil
+		}
+	}
diff --git a/templates/hooks/eventsourcemapping/sdk_read_one_post_set_output.go.tpl b/templates/hooks/eventsourcemapping/sdk_read_one_post_set_output.go.tpl
index f91d97d..f66b818 100644
--- a/templates/hooks/eventsourcemapping/sdk_read_one_post_set_output.go.tpl
+++ b/templates/hooks/eventsourcemapping/sdk_read_one_post_set_output.go.tpl
@@ -2,3 +2,14 @@
 	if err != nil {
 		return nil, err
 	}
+	if ko.Spec.DestinationConfig != nil {
+		if ko.Spec.DestinationConfig.OnFailure != nil && ko.Spec.DestinationConfig.OnFailure.Destination == nil {
+			ko.Spec.DestinationConfig.OnFailure = nil
+		}
+		if ko.Spec.DestinationConfig.OnSuccess != nil && ko.Spec.DestinationConfig.OnSuccess.Destination == nil {
+			ko.Spec.DestinationConfig.OnSuccess = nil
+		}
+		if ko.Spec.DestinationConfig.OnFailure == nil && ko.Spec.DestinationConfig.OnSuccess == nil {
+			ko.Spec.DestinationConfig = nil
+		}
+	}