diff --git a/client/meta/dataset.go b/client/meta/dataset.go
index c35b13d4..885b3c5b 100644
--- a/client/meta/dataset.go
+++ b/client/meta/dataset.go
@@ -30,12 +30,6 @@ func DefaultDependencyHandling() *DependencyHandlingInput {
 	return &DependencyHandlingInput{SaveMode: &mode}
 }
 
-func DependencyHandlingSkipRematerialization() *DependencyHandlingInput {
-	saveMode := SaveModeUpdateDatasetAndDependenciesIgnoringAllErrors
-	rematMode := RematerializationModeSkiprematerialization
-	return &DependencyHandlingInput{SaveMode: &saveMode, RematerializationMode: &rematMode}
-}
-
 // SaveDataset creates and updates datasets
 func (client *Client) SaveDataset(ctx context.Context, workspaceId string, input *DatasetInput, queryInput *MultiStageQueryInput, dependencyHandling *DependencyHandlingInput) (*Dataset, error) {
 	resp, err := saveDataset(ctx, client.Gql, workspaceId, *input, *queryInput, dependencyHandling)
diff --git a/observe/resource_dataset.go b/observe/resource_dataset.go
index 73de03eb..3bd66437 100644
--- a/observe/resource_dataset.go
+++ b/observe/resource_dataset.go
@@ -21,9 +21,6 @@ const (
 	schemaDatasetDescriptionDescription = "Dataset description."
 	schemaDatasetIconDescription        = "Icon image."
 	schemaDatasetOIDDescription         = "The Observe ID for dataset."
-
-	rematerializationModeRematerialize         = "rematerialize"
-	rematerializationModeSkipRematerialization = "skip_rematerialization"
 )
 
 func resourceDataset() *schema.Resource {
@@ -154,7 +151,6 @@ func resourceDataset() *schema.Resource {
 			"rematerialization_mode": {
 				Type:             schema.TypeString,
 				Optional:         true,
-				Default:          "rematerialize",
 				ValidateDiagFunc: validateEnums(gql.AllRematerializationModes),
 				Description:      descriptions.Get("dataset", "schema", "rematerialization_mode"),
 			},
@@ -365,14 +361,13 @@ func resourceDatasetCreate(ctx context.Context, data *schema.ResourceData, meta
 	}
 
 	dependencyHandling := gql.DefaultDependencyHandling()
-	switch data.Get("rematerialization_mode").(string) {
-	case rematerializationModeRematerialize:
-	case rematerializationModeSkipRematerialization:
-		dependencyHandling = gql.DependencyHandlingSkipRematerialization()
+	if mode, ok := data.GetOk("rematerialization_mode"); ok {
+		rematerializationMode := gql.RematerializationMode(toCamel(mode.(string)))
+		dependencyHandling.RematerializationMode = &rematerializationMode
 
 		diags = append(diags, diag.Diagnostic{
 			Severity: diag.Warning,
-			Summary:  "Skipping rematerialization on a new dataset is a no-op",
+			Summary:  "rematerialization_mode on a new dataset is a no-op",
 		})
 	}
 
@@ -421,10 +416,9 @@ func resourceDatasetUpdate(ctx context.Context, data *schema.ResourceData, meta
 	wsid, _ := oid.NewOID(data.Get("workspace").(string))
 
 	dependencyHandling := gql.DefaultDependencyHandling()
-	switch data.Get("rematerialization_mode").(string) {
-	case rematerializationModeRematerialize:
-	case rematerializationModeSkipRematerialization:
-		dependencyHandling = gql.DependencyHandlingSkipRematerialization()
+	if mode, ok := data.GetOk("rematerialization_mode"); ok {
+		rematerializationMode := gql.RematerializationMode(toCamel(mode.(string)))
+		dependencyHandling.RematerializationMode = &rematerializationMode
 	}
 
 	result, err := client.SaveDataset(ctx, wsid.Id, input, queryInput, dependencyHandling)
diff --git a/observe/resource_dataset_test.go b/observe/resource_dataset_test.go
index b703ede6..8065190f 100644
--- a/observe/resource_dataset_test.go
+++ b/observe/resource_dataset_test.go
@@ -112,7 +112,7 @@ func TestAccObserveDatasetUpdate(t *testing.T) {
 					resource.TestCheckResourceAttr("observe_dataset.first", "stage.0.input", ""),
 					resource.TestCheckResourceAttr("observe_dataset.first", "stage.0.pipeline", ""),
 					resource.TestCheckResourceAttr("observe_dataset.first", "acceleration_disabled_source", "view"),
-					resource.TestCheckResourceAttr("observe_dataset.first", "rematerialization_mode", "rematerialize"),
+					resource.TestCheckNoResourceAttr("observe_dataset.first", "rematerialization_mode"),
 				),
 			},
 			{