diff --git a/CHANGELOG.md b/CHANGELOG.md
index af2ec0d..0e04e0e 100644
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -69,6 +69,7 @@
 
 1. dsp: platform: Fix location of closing paren in overflow detection
 2. libpldm: Install api header, update changelog
+3. pdr: Remove PDR if the contained entity to be removed is the last one
 
 ## [0.10.0] 2024-11-01
 
diff --git a/src/dsp/pdr.c b/src/dsp/pdr.c
index 0ef1686..142c4f7 100644
--- a/src/dsp/pdr.c
+++ b/src/dsp/pdr.c
@@ -35,6 +35,14 @@
 } pldm_pdr;
 
 LIBPLDM_CC_NONNULL
+static pldm_pdr_record *pldm_pdr_get_prev_record(pldm_pdr *repo,
+						 pldm_pdr_record *record);
+
+LIBPLDM_CC_NONNULL_ARGS(1, 2)
+static int pldm_pdr_remove_record(pldm_pdr *repo, pldm_pdr_record *record,
+				  pldm_pdr_record *prev);
+
+LIBPLDM_CC_NONNULL
 static inline uint32_t get_next_record_handle(const pldm_pdr *repo,
 					      const pldm_pdr_record *record)
 {
@@ -1852,8 +1860,9 @@
 
 	// Initialize new PDR record with data from original PDR record.
 	// Start with adding the header of original PDR
-	rc = pldm_msgbuf_init_errno(dst, PDR_ENTITY_ASSOCIATION_MIN_SIZE,
-				    new_record->data, new_record->size);
+	rc = pldm_msgbuf_init_errno(
+		dst, (PDR_ENTITY_ASSOCIATION_MIN_SIZE - sizeof(pldm_entity)),
+		new_record->data, new_record->size);
 	if (rc) {
 		goto cleanup_new_record_data;
 	}
@@ -1885,9 +1894,9 @@
 		goto cleanup_new_record_data;
 	}
 	if (num_children == 1) {
-		prev->next = record->next;
-		free(record->data);
-		free(record);
+		// This is the last child which is getting removed so we need to delete the Entity Association PDR.
+		pldm_pdr_remove_record(repo, record,
+				       pldm_pdr_get_prev_record(repo, record));
 		goto cleanup_new_record_data;
 	} else if (num_children < 1) {
 		rc = -EOVERFLOW;
diff --git a/tests/dsp/pdr.cpp b/tests/dsp/pdr.cpp
index 30ea9ea..2ca79b7 100644
--- a/tests/dsp/pdr.cpp
+++ b/tests/dsp/pdr.cpp
@@ -1,6 +1,7 @@
 #include <endian.h>
 #include <libpldm/pdr.h>
 #include <libpldm/platform.h>
+#include <msgbuf.h>
 
 #include <array>
 #include <cstdint>
@@ -2102,15 +2103,34 @@
 
     EXPECT_EQ(pldm_pdr_get_record_count(repo), 1u);
 
+    // Remove first contained entity from the entity association PDR
     uint32_t removed_record_handle{};
     struct pldm_entity entity[1] = {
-        {.entity_type = 2, .entity_instance_num = 1, .entity_container_id = 2}};
+        {.entity_type = 4, .entity_instance_num = 1, .entity_container_id = 2}};
 
     EXPECT_EQ(pldm_entity_association_pdr_remove_contained_entity(
                   repo, entity, false, &removed_record_handle),
               0);
     EXPECT_EQ(removed_record_handle, 3);
 
+    // Remove second contained entity from the entity association PDR
+    removed_record_handle = 0;
+    EXPECT_EQ(pldm_entity_association_pdr_remove_contained_entity(
+                  repo, &entities[1], false, &removed_record_handle),
+              0);
+    EXPECT_EQ(removed_record_handle, 3);
+
+    // Remove third contained entity from the entity association PDR
+    removed_record_handle = 0;
+    EXPECT_EQ(pldm_entity_association_pdr_remove_contained_entity(
+                  repo, &entities[2], false, &removed_record_handle),
+              0);
+    EXPECT_EQ(removed_record_handle, 3);
+
+    // As all the contained entities are removed the entity association PDR
+    // also gets deleted
+    EXPECT_EQ(pldm_pdr_get_record_count(repo), 0u);
+
     pldm_pdr_destroy(repo);
     pldm_entity_association_tree_destroy(tree);
 }