diff --git a/packages/slate-editor/src/extensions/variables/VariableMenu.tsx b/packages/slate-editor/src/extensions/variables/VariableMenu.tsx
index a39cec1a1..e131e7269 100644
--- a/packages/slate-editor/src/extensions/variables/VariableMenu.tsx
+++ b/packages/slate-editor/src/extensions/variables/VariableMenu.tsx
@@ -48,10 +48,6 @@ export function VariableMenu({ container, element, onClose, variables }: Props)
 
     useEffect(() => {
         if (!option?.withFallback) {
-            // Even though the API supports `null` for the fallback,
-            // we can't use it here because Slate will remove this property
-            // and the API will add it back upon saving, creating an endless loop
-            // since the two values will differ.
             updateVariable(editor, { fallback: '' });
         }
     }, [option?.withFallback]);
diff --git a/packages/slate-editor/src/extensions/variables/VariablesExtension.tsx b/packages/slate-editor/src/extensions/variables/VariablesExtension.tsx
index b5b59474c..8a52e3697 100644
--- a/packages/slate-editor/src/extensions/variables/VariablesExtension.tsx
+++ b/packages/slate-editor/src/extensions/variables/VariablesExtension.tsx
@@ -8,6 +8,7 @@ import { MentionsExtension } from '#extensions/mentions';
 import { parseSerializedElement } from './lib';
 import {
     convertLegacyPlaceholderNodesToVariables,
+    removeFallbackPropertyIfEmpty,
     removeUnknownVariableNodeAttributes,
     removeUnknownVariables,
 } from './normalization';
@@ -25,6 +26,7 @@ export function VariablesExtension({ variables }: VariablesExtensionParameters):
             convertLegacyPlaceholderNodesToVariables,
             removeUnknownVariables(variablesNames),
             removeUnknownVariableNodeAttributes,
+            removeFallbackPropertyIfEmpty,
         ],
         parseSerializedElement,
         renderElement: ({ attributes, children, element }: RenderElementProps) => {
diff --git a/packages/slate-editor/src/extensions/variables/lib/createVariableNode.ts b/packages/slate-editor/src/extensions/variables/lib/createVariableNode.ts
index 40d2712d4..8cff550f3 100644
--- a/packages/slate-editor/src/extensions/variables/lib/createVariableNode.ts
+++ b/packages/slate-editor/src/extensions/variables/lib/createVariableNode.ts
@@ -4,7 +4,6 @@ export function createVariableNode(key: VariableNode['key']): VariableNode {
     return {
         children: [{ text: '' }],
         key,
-        fallback: null,
         type: VARIABLE_NODE_TYPE,
     };
 }
diff --git a/packages/slate-editor/src/extensions/variables/normalization/index.ts b/packages/slate-editor/src/extensions/variables/normalization/index.ts
index b321e1b1f..e1b8d9c05 100644
--- a/packages/slate-editor/src/extensions/variables/normalization/index.ts
+++ b/packages/slate-editor/src/extensions/variables/normalization/index.ts
@@ -1,3 +1,4 @@
 export { convertLegacyPlaceholderNodesToVariables } from './convertLegacyPlaceholderNodesToVariables';
+export { removeFallbackPropertyIfEmpty } from './removeFallbackPropertyIfEmpty';
 export { removeUnknownVariableNodeAttributes } from './removeUnknownVariableNodeAttributes';
 export { removeUnknownVariables } from './removeUnknownVariables';
diff --git a/packages/slate-editor/src/extensions/variables/normalization/normalization.test.tsx b/packages/slate-editor/src/extensions/variables/normalization/normalization.test.tsx
index b60e1aa8b..e8d174309 100644
--- a/packages/slate-editor/src/extensions/variables/normalization/normalization.test.tsx
+++ b/packages/slate-editor/src/extensions/variables/normalization/normalization.test.tsx
@@ -9,12 +9,14 @@ import {
     convertLegacyPlaceholderNodesToVariables,
     removeUnknownVariables,
     removeUnknownVariableNodeAttributes,
+    removeFallbackPropertyIfEmpty,
 } from './';
 
 const normalizations = [
     convertLegacyPlaceholderNodesToVariables,
     removeUnknownVariables(['contact.firstname', 'contact.lastname']),
     removeUnknownVariableNodeAttributes,
+    removeFallbackPropertyIfEmpty,
 ];
 
 function normalizeNode(editor: Editor, entry: NodeEntry) {
@@ -154,4 +156,40 @@ describe('VariablesExtension', () => {
             expect(editor.children).toEqual(expected.children);
         });
     });
+
+    describe('removeFallbackPropertyIfEmpty', () => {
+        it("should remove fallback property, if it's an empty string", () => {
+            const editor = (
+                <editor>
+                    <h:paragraph>
+                        <h:text>Hello, </h:text>
+                        <h:variable key="contact.firstname" fallback="">
+                            <h:text>%contact.firstname%</h:text>
+                        </h:variable>
+                        <h:text>!</h:text>
+                    </h:paragraph>
+                </editor>
+            ) as unknown as Editor;
+
+            const expected = (
+                <editor>
+                    <h:paragraph>
+                        <h:text>Hello, </h:text>
+                        <h:variable key="contact.firstname">
+                            <h:text>%contact.firstname%</h:text>
+                        </h:variable>
+                        <h:text>!</h:text>
+                    </h:paragraph>
+                </editor>
+            ) as unknown as Editor;
+
+            editor.normalizeNode = function (entry) {
+                normalizeNode(editor, entry);
+            };
+
+            Editor.normalize(editor, { force: true });
+
+            expect(editor.children).toEqual(expected.children);
+        });
+    });
 });
diff --git a/packages/slate-editor/src/extensions/variables/normalization/removeFallbackPropertyIfEmpty.ts b/packages/slate-editor/src/extensions/variables/normalization/removeFallbackPropertyIfEmpty.ts
new file mode 100644
index 000000000..159065f53
--- /dev/null
+++ b/packages/slate-editor/src/extensions/variables/normalization/removeFallbackPropertyIfEmpty.ts
@@ -0,0 +1,18 @@
+import { type VariableNode, isVariableNode } from '@prezly/slate-types';
+import { Transforms, type Editor, type NodeEntry } from 'slate';
+
+export function removeFallbackPropertyIfEmpty(
+    editor: Editor,
+    [node, path]: NodeEntry,
+): boolean {
+    if (!isVariableNode(node)) {
+        return false;
+    }
+
+    if (node.fallback === '') {
+        Transforms.setNodes<VariableNode>(editor, { fallback: undefined }, { at: path });
+        return true;
+    }
+
+    return false;
+}
diff --git a/packages/slate-types/src/nodes/VariableNode.ts b/packages/slate-types/src/nodes/VariableNode.ts
index 1024e7a5b..05a579521 100644
--- a/packages/slate-types/src/nodes/VariableNode.ts
+++ b/packages/slate-types/src/nodes/VariableNode.ts
@@ -5,7 +5,7 @@ export const VARIABLE_NODE_TYPE = 'variable';
 
 export interface VariableNode extends ElementNode {
     type: typeof VARIABLE_NODE_TYPE;
-    fallback?: string | null;
+    fallback?: string;
     key: string;
 }