diff --git a/helper/schema/grpc_provider.go b/helper/schema/grpc_provider.go
index 0695fc648d6..4ed1253decf 100644
--- a/helper/schema/grpc_provider.go
+++ b/helper/schema/grpc_provider.go
@@ -1123,7 +1123,11 @@ func (s *GRPCProviderServer) ReadDataSource(ctx context.Context, req *tfprotov5.
 		return resp, nil
 	}
 
-	diff.RawConfig = configVal
+	// Not setting RawConfig here is okay, as ResourceData.GetRawConfig()
+	// will return a NullVal of the schema if there is no InstanceDiff.
+	if diff != nil {
+		diff.RawConfig = configVal
+	}
 
 	// now we can get the new complete data source
 	newInstanceState, diags := res.ReadDataApply(ctx, diff, s.provider.Meta())
diff --git a/helper/schema/grpc_provider_test.go b/helper/schema/grpc_provider_test.go
index 9fbf8d30f5f..dac6b28c238 100644
--- a/helper/schema/grpc_provider_test.go
+++ b/helper/schema/grpc_provider_test.go
@@ -1006,6 +1006,401 @@ func TestApplyResourceChange_bigint(t *testing.T) {
 	}
 }
 
+func TestReadDataSource(t *testing.T) {
+	t.Parallel()
+
+	testCases := map[string]struct {
+		server   *GRPCProviderServer
+		req      *tfprotov5.ReadDataSourceRequest
+		expected *tfprotov5.ReadDataSourceResponse
+	}{
+		"missing-set-id": {
+			server: NewGRPCProviderServer(&Provider{
+				DataSourcesMap: map[string]*Resource{
+					"test": {
+						SchemaVersion: 1,
+						Schema: map[string]*Schema{
+							"id": {
+								Type:     TypeString,
+								Computed: true,
+							},
+						},
+						ReadContext: func(ctx context.Context, d *ResourceData, meta interface{}) diag.Diagnostics {
+							return nil
+						},
+					},
+				},
+			}),
+			req: &tfprotov5.ReadDataSourceRequest{
+				TypeName: "test",
+				Config: &tfprotov5.DynamicValue{
+					MsgPack: mustMsgpackMarshal(
+						cty.Object(map[string]cty.Type{
+							"id": cty.String,
+						}),
+						cty.NullVal(cty.Object(map[string]cty.Type{
+							"id": cty.String,
+						})),
+					),
+				},
+			},
+			expected: &tfprotov5.ReadDataSourceResponse{
+				State: &tfprotov5.DynamicValue{
+					MsgPack: mustMsgpackMarshal(
+						cty.Object(map[string]cty.Type{
+							"id": cty.String,
+						}),
+						cty.ObjectVal(map[string]cty.Value{
+							"id": cty.NullVal(cty.String),
+						}),
+					),
+				},
+			},
+		},
+		"empty": {
+			server: NewGRPCProviderServer(&Provider{
+				DataSourcesMap: map[string]*Resource{
+					"test": {
+						SchemaVersion: 1,
+						Schema: map[string]*Schema{
+							"id": {
+								Type:     TypeString,
+								Computed: true,
+							},
+						},
+						ReadContext: func(ctx context.Context, d *ResourceData, meta interface{}) diag.Diagnostics {
+							d.SetId("test-id")
+							return nil
+						},
+					},
+				},
+			}),
+			req: &tfprotov5.ReadDataSourceRequest{
+				TypeName: "test",
+				Config: &tfprotov5.DynamicValue{
+					MsgPack: mustMsgpackMarshal(
+						cty.EmptyObject,
+						cty.NullVal(cty.EmptyObject),
+					),
+				},
+			},
+			expected: &tfprotov5.ReadDataSourceResponse{
+				State: &tfprotov5.DynamicValue{
+					MsgPack: mustMsgpackMarshal(
+						cty.Object(map[string]cty.Type{
+							"id": cty.String,
+						}),
+						cty.ObjectVal(map[string]cty.Value{
+							"id": cty.StringVal("test-id"),
+						}),
+					),
+				},
+			},
+		},
+		"null-object": {
+			server: NewGRPCProviderServer(&Provider{
+				DataSourcesMap: map[string]*Resource{
+					"test": {
+						SchemaVersion: 1,
+						Schema: map[string]*Schema{
+							"id": {
+								Type:     TypeString,
+								Computed: true,
+							},
+						},
+						ReadContext: func(ctx context.Context, d *ResourceData, meta interface{}) diag.Diagnostics {
+							d.SetId("test-id")
+							return nil
+						},
+					},
+				},
+			}),
+			req: &tfprotov5.ReadDataSourceRequest{
+				TypeName: "test",
+				Config: &tfprotov5.DynamicValue{
+					MsgPack: mustMsgpackMarshal(
+						cty.Object(map[string]cty.Type{
+							"id": cty.String,
+						}),
+						cty.NullVal(cty.Object(map[string]cty.Type{
+							"id": cty.String,
+						})),
+					),
+				},
+			},
+			expected: &tfprotov5.ReadDataSourceResponse{
+				State: &tfprotov5.DynamicValue{
+					MsgPack: mustMsgpackMarshal(
+						cty.Object(map[string]cty.Type{
+							"id": cty.String,
+						}),
+						cty.ObjectVal(map[string]cty.Value{
+							"id": cty.StringVal("test-id"),
+						}),
+					),
+				},
+			},
+		},
+		"computed-id": {
+			server: NewGRPCProviderServer(&Provider{
+				DataSourcesMap: map[string]*Resource{
+					"test": {
+						SchemaVersion: 1,
+						Schema: map[string]*Schema{
+							"id": {
+								Type:     TypeString,
+								Computed: true,
+							},
+						},
+						ReadContext: func(ctx context.Context, d *ResourceData, meta interface{}) diag.Diagnostics {
+							d.SetId("test-id")
+							return nil
+						},
+					},
+				},
+			}),
+			req: &tfprotov5.ReadDataSourceRequest{
+				TypeName: "test",
+				Config: &tfprotov5.DynamicValue{
+					MsgPack: mustMsgpackMarshal(
+						cty.Object(map[string]cty.Type{
+							"id": cty.String,
+						}),
+						cty.ObjectVal(map[string]cty.Value{
+							"id": cty.NullVal(cty.String),
+						}),
+					),
+				},
+			},
+			expected: &tfprotov5.ReadDataSourceResponse{
+				State: &tfprotov5.DynamicValue{
+					MsgPack: mustMsgpackMarshal(
+						cty.Object(map[string]cty.Type{
+							"id": cty.String,
+						}),
+						cty.ObjectVal(map[string]cty.Value{
+							"id": cty.StringVal("test-id"),
+						}),
+					),
+				},
+			},
+		},
+		"optional-computed-id": {
+			server: NewGRPCProviderServer(&Provider{
+				DataSourcesMap: map[string]*Resource{
+					"test": {
+						SchemaVersion: 1,
+						Schema: map[string]*Schema{
+							"id": {
+								Type:     TypeString,
+								Optional: true,
+								Computed: true,
+							},
+						},
+						ReadContext: func(ctx context.Context, d *ResourceData, meta interface{}) diag.Diagnostics {
+							d.SetId("test-id")
+							return nil
+						},
+					},
+				},
+			}),
+			req: &tfprotov5.ReadDataSourceRequest{
+				TypeName: "test",
+				Config: &tfprotov5.DynamicValue{
+					MsgPack: mustMsgpackMarshal(
+						cty.Object(map[string]cty.Type{
+							"id": cty.String,
+						}),
+						cty.ObjectVal(map[string]cty.Value{
+							"id": cty.NullVal(cty.String),
+						}),
+					),
+				},
+			},
+			expected: &tfprotov5.ReadDataSourceResponse{
+				State: &tfprotov5.DynamicValue{
+					MsgPack: mustMsgpackMarshal(
+						cty.Object(map[string]cty.Type{
+							"id": cty.String,
+						}),
+						cty.ObjectVal(map[string]cty.Value{
+							"id": cty.StringVal("test-id"),
+						}),
+					),
+				},
+			},
+		},
+		"optional-no-id": {
+			server: NewGRPCProviderServer(&Provider{
+				DataSourcesMap: map[string]*Resource{
+					"test": {
+						SchemaVersion: 1,
+						Schema: map[string]*Schema{
+							"test": {
+								Type:     TypeString,
+								Optional: true,
+							},
+						},
+						ReadContext: func(ctx context.Context, d *ResourceData, meta interface{}) diag.Diagnostics {
+							d.SetId("test-id")
+							return nil
+						},
+					},
+				},
+			}),
+			req: &tfprotov5.ReadDataSourceRequest{
+				TypeName: "test",
+				Config: &tfprotov5.DynamicValue{
+					MsgPack: mustMsgpackMarshal(
+						cty.Object(map[string]cty.Type{
+							"id":   cty.String,
+							"test": cty.String,
+						}),
+						cty.ObjectVal(map[string]cty.Value{
+							"id":   cty.NullVal(cty.String),
+							"test": cty.NullVal(cty.String),
+						}),
+					),
+				},
+			},
+			expected: &tfprotov5.ReadDataSourceResponse{
+				State: &tfprotov5.DynamicValue{
+					MsgPack: mustMsgpackMarshal(
+						cty.Object(map[string]cty.Type{
+							"id":   cty.String,
+							"test": cty.String,
+						}),
+						cty.ObjectVal(map[string]cty.Value{
+							"id":   cty.StringVal("test-id"),
+							"test": cty.NullVal(cty.String),
+						}),
+					),
+				},
+			},
+		},
+		"required-id": {
+			server: NewGRPCProviderServer(&Provider{
+				DataSourcesMap: map[string]*Resource{
+					"test": {
+						SchemaVersion: 1,
+						Schema: map[string]*Schema{
+							"id": {
+								Type:     TypeString,
+								Required: true,
+							},
+						},
+						ReadContext: func(ctx context.Context, d *ResourceData, meta interface{}) diag.Diagnostics {
+							d.SetId("test-id")
+							return nil
+						},
+					},
+				},
+			}),
+			req: &tfprotov5.ReadDataSourceRequest{
+				TypeName: "test",
+				Config: &tfprotov5.DynamicValue{
+					MsgPack: mustMsgpackMarshal(
+						cty.Object(map[string]cty.Type{
+							"id": cty.String,
+						}),
+						cty.ObjectVal(map[string]cty.Value{
+							"id": cty.StringVal("test-id"),
+						}),
+					),
+				},
+			},
+			expected: &tfprotov5.ReadDataSourceResponse{
+				State: &tfprotov5.DynamicValue{
+					MsgPack: mustMsgpackMarshal(
+						cty.Object(map[string]cty.Type{
+							"id": cty.String,
+						}),
+						cty.ObjectVal(map[string]cty.Value{
+							"id": cty.StringVal("test-id"),
+						}),
+					),
+				},
+			},
+		},
+		"required-no-id": {
+			server: NewGRPCProviderServer(&Provider{
+				DataSourcesMap: map[string]*Resource{
+					"test": {
+						SchemaVersion: 1,
+						Schema: map[string]*Schema{
+							"test": {
+								Type:     TypeString,
+								Required: true,
+							},
+						},
+						ReadContext: func(ctx context.Context, d *ResourceData, meta interface{}) diag.Diagnostics {
+							d.SetId("test-id")
+							return nil
+						},
+					},
+				},
+			}),
+			req: &tfprotov5.ReadDataSourceRequest{
+				TypeName: "test",
+				Config: &tfprotov5.DynamicValue{
+					MsgPack: mustMsgpackMarshal(
+						cty.Object(map[string]cty.Type{
+							"id":   cty.String,
+							"test": cty.String,
+						}),
+						cty.ObjectVal(map[string]cty.Value{
+							"id":   cty.NullVal(cty.String),
+							"test": cty.StringVal("test-string"),
+						}),
+					),
+				},
+			},
+			expected: &tfprotov5.ReadDataSourceResponse{
+				State: &tfprotov5.DynamicValue{
+					MsgPack: mustMsgpackMarshal(
+						cty.Object(map[string]cty.Type{
+							"id":   cty.String,
+							"test": cty.String,
+						}),
+						cty.ObjectVal(map[string]cty.Value{
+							"id":   cty.StringVal("test-id"),
+							"test": cty.StringVal("test-string"),
+						}),
+					),
+				},
+			},
+		},
+	}
+
+	for name, testCase := range testCases {
+		name, testCase := name, testCase
+
+		t.Run(name, func(t *testing.T) {
+			t.Parallel()
+
+			resp, err := testCase.server.ReadDataSource(context.Background(), testCase.req)
+
+			if err != nil {
+				t.Fatal(err)
+			}
+
+			if diff := cmp.Diff(resp, testCase.expected, valueComparer); diff != "" {
+				ty := testCase.server.getDatasourceSchemaBlock("test").ImpliedType()
+
+				if resp != nil && resp.State != nil {
+					t.Logf("resp.State.MsgPack: %s", mustMsgpackUnmarshal(ty, resp.State.MsgPack))
+				}
+
+				if testCase.expected != nil && testCase.expected.State != nil {
+					t.Logf("expected: %s", mustMsgpackUnmarshal(ty, testCase.expected.State.MsgPack))
+				}
+
+				t.Error(diff)
+			}
+		})
+	}
+}
+
 func TestPrepareProviderConfig(t *testing.T) {
 	for _, tc := range []struct {
 		Name         string
@@ -2086,3 +2481,23 @@ func Test_pathToAttributePath_noSteps(t *testing.T) {
 		t.Errorf("Expected nil attribute path, got %+v", res)
 	}
 }
+
+func mustMsgpackMarshal(ty cty.Type, val cty.Value) []byte {
+	result, err := msgpack.Marshal(val, ty)
+
+	if err != nil {
+		panic(fmt.Sprintf("cannot marshal msgpack: %s\n\ntype: %v\n\nvalue: %v", err, ty, val))
+	}
+
+	return result
+}
+
+func mustMsgpackUnmarshal(ty cty.Type, b []byte) cty.Value {
+	result, err := msgpack.Unmarshal(b, ty)
+
+	if err != nil {
+		panic(fmt.Sprintf("cannot unmarshal msgpack: %s\n\ntype: %v\n\nvalue: %v", err, ty, b))
+	}
+
+	return result
+}