diff --git a/extensions/sql-database-projects/src/models/project.ts b/extensions/sql-database-projects/src/models/project.ts
index d5d7be147b..b8843946d5 100644
--- a/extensions/sql-database-projects/src/models/project.ts
+++ b/extensions/sql-database-projects/src/models/project.ts
@@ -1052,9 +1052,8 @@ export class Project implements ISqlProject {
 		// again when they convert to an SDK-style project
 		if (this.isSdkStyleProject) {
 			// update sqlproj if a node was deleted and load files and folders again
-			if (deleted) {
-				await this.writeToSqlProjAndUpdateFilesFolders();
-			}
+			await this.writeToSqlProjAndUpdateFilesFolders();
+
 			// get latest folders to see if it still exists
 			const currentFolders = await this.readFolders();
 
diff --git a/extensions/sql-database-projects/src/test/baselines/openSdkStyleSqlProjectWithFilesSpecifiedBaseline.xml b/extensions/sql-database-projects/src/test/baselines/openSdkStyleSqlProjectWithFilesSpecifiedBaseline.xml
index 8c6f83a0aa..d7eecc0273 100644
--- a/extensions/sql-database-projects/src/test/baselines/openSdkStyleSqlProjectWithFilesSpecifiedBaseline.xml
+++ b/extensions/sql-database-projects/src/test/baselines/openSdkStyleSqlProjectWithFilesSpecifiedBaseline.xml
@@ -35,7 +35,7 @@
   </ItemGroup>
   <ItemGroup>
     <PostDeploy Include="Script.PostDeployment1.sql" />
-    <None Include="folder1\Script.PostDeployment1.sql" />
+    <None Include="folder1\Script.PostDeployment2.sql" />
   </ItemGroup>
   <ItemGroup>
     <ArtifactReference Condition="'$(NetCoreBuild)' == 'true'" Include="$(NETCoreTargetsPath)\SystemDacpacs\150\master.dacpac">
diff --git a/extensions/sql-database-projects/src/test/project.test.ts b/extensions/sql-database-projects/src/test/project.test.ts
index 50310f8e7d..92de05b087 100644
--- a/extensions/sql-database-projects/src/test/project.test.ts
+++ b/extensions/sql-database-projects/src/test/project.test.ts
@@ -1253,6 +1253,97 @@ describe('Project: sdk style project content operations', function (): void {
 		should(project.files.find(f => f.relativePath === 'folder3\\')!).not.equal(undefined, 'folder3\\ should be loaded');
 		should(project.files.find(f => f.relativePath === 'folder3\\innerFolder\\')!).not.equal(undefined, 'folder3\\innerFolder\\ should be loaded');
 	});
+
+	it('Should handle deleting empty folders', async function (): Promise<void> {
+		const testFolderPath = await testUtils.generateTestFolderPath();
+		projFilePath = await testUtils.createTestSqlProjFile(baselines.newSdkStyleProjectSdkNodeBaseline, testFolderPath);
+
+		const project: Project = await Project.openProject(projFilePath);
+		const beforeProjFileText = (await fs.readFile(projFilePath)).toString();
+
+		should(project.files.filter(f => f.type === EntryType.File).length).equal(0);
+		should(project.files.filter(f => f.type === EntryType.Folder).length).equal(0);
+
+		// add an empty folder
+		await project.addFolderItem('folder1');
+
+		// verify folder was added
+		should(project.files.filter(f => f.type === EntryType.Folder).length).equal(1);
+		should(project.files.filter(f => f.type === EntryType.File).length).equal(0);
+		should(project.files.find(f => f.relativePath === 'folder1\\')).not.equal(undefined, 'folder1 should have been added');
+
+		// verify entry was added for the new empty folder in the sqlproj
+		let projFileText = (await fs.readFile(projFilePath)).toString();
+		should(projFileText.includes('<Folder Include="folder1\\" />')).equal(true, projFileText);
+
+		// delete the empty folder
+		await project.deleteFileFolder(project.files.find(f => f.relativePath === 'folder1\\')!);
+
+		should(project.files.filter(f => f.type === EntryType.Folder).length).equal(0, 'folder1 should have been deleted');
+
+		// verify the folder entry was removed from the sqlproj and a Build Remove was not added
+		projFileText = (await fs.readFile(projFilePath)).toString();
+		should(projFileText.trimEnd() === beforeProjFileText.trimEnd()).equal(true, 'The sqlproj should not have changed after deleting folder1');
+	});
+
+	it('Should handle deleting not empty glob included folders', async function (): Promise<void> {
+		const testFolderPath = await testUtils.generateTestFolderPath();
+		projFilePath = await testUtils.createTestSqlProjFile(baselines.openSdkStyleSqlProjectBaseline, testFolderPath);
+		await testUtils.createDummyFileStructureWithPrePostDeployScripts(false, undefined, path.dirname(projFilePath));
+
+		const project: Project = await Project.openProject(projFilePath);
+		const beforeProjFileText = (await fs.readFile(projFilePath)).toString();
+
+		should(project.files.filter(f => f.type === EntryType.File).length).equal(13);
+		should(project.files.filter(f => f.type === EntryType.Folder).length).equal(3);
+
+		// delete a folder with contents
+		await project.deleteFileFolder(project.files.find(f => f.relativePath === 'folder2\\')!);
+
+		should(project.files.filter(f => f.type === EntryType.File).length).equal(8);
+		should(project.files.filter(f => f.type === EntryType.Folder).length).equal(2);
+
+		// verify the folder entry was removed from the sqlproj and a Build Remove was not added
+		const projFileText = (await fs.readFile(projFilePath)).toString();
+		should(projFileText.trimEnd() === beforeProjFileText.trimEnd()).equal(true, 'The sqlproj should not have changed after deleting folder2');
+	});
+
+	it('Should handle deleting explicitly included folders', async function (): Promise<void> {
+		const testFolderPath = await testUtils.generateTestFolderPath();
+		projFilePath = await testUtils.createTestSqlProjFile(baselines.openSdkStyleSqlProjectWithFilesSpecifiedBaseline, testFolderPath);
+		await testUtils.createDummyFileStructureWithPrePostDeployScripts(false, undefined, path.dirname(projFilePath));
+
+		const project: Project = await Project.openProject(projFilePath);
+
+		should(project.files.filter(f => f.type === EntryType.File).length).equal(13);
+		should(project.files.filter(f => f.type === EntryType.Folder).length).equal(3);
+		should(project.files.find(f => f.relativePath === 'folder1\\')!).not.equal(undefined);
+		should(project.files.find(f => f.relativePath === 'folder2\\')!).not.equal(undefined);
+
+		// try to delete an explicitly included folder with the trailing \ in sqlproj
+		await project.deleteFileFolder(project.files.find(f => f.relativePath === 'folder2\\')!);
+
+		// verify the project not longer has folder2 and its contents
+		should(project.files.filter(f => f.type === EntryType.Folder).length).equal(2);
+		should(project.files.filter(f => f.type === EntryType.File).length).equal(8);
+		should(project.files.find(f => f.relativePath === 'folder2\\')).equal(undefined);
+
+		// try to delete an explicitly included folder without trailing \ in sqlproj
+		await project.deleteFileFolder(project.files.find(f => f.relativePath === 'folder1\\')!);
+
+		// verify the project not longer has folder1 and its contents
+		should(project.files.filter(f => f.type === EntryType.Folder).length).equal(0);
+		should(project.files.filter(f => f.type === EntryType.File).length).equal(1);
+		should(project.files.find(f => f.relativePath === 'folder1\\')).equal(undefined);
+
+		// make sure both folders are removed from sqlproj and Build Remove entries were not added
+		const projFileText = (await fs.readFile(projFilePath)).toString();
+		should(projFileText.includes('<Folder Include="folder1" />')).equal(false, projFileText);
+		should(projFileText.includes('<Folder Include="folder2\\" />')).equal(false, projFileText);
+
+		should(projFileText.includes('<Build Remove="folder1\\**" />')).equal(false, projFileText);
+		should(projFileText.includes('<Build Remove="folder2\\**" />')).equal(false, projFileText);
+	});
 });
 
 describe('Project: add SQLCMD Variables', function (): void {