diff --git a/pkg/diff/diff.go b/pkg/diff/diff.go
index 0eb6a0a..39ab040 100644
--- a/pkg/diff/diff.go
+++ b/pkg/diff/diff.go
@@ -599,6 +599,35 @@ func (sc *Syncer) Solve(ctx context.Context, parallelism int, dry bool, isJSONOu
 		var err error
 		var result crud.Arg
 
+		// holds the original event with the unchanged configuration
+		// below the config may be updated, to render the diff correctly
+		originalE := e
+
+		// If the event is for a plugin, inject defaults in the plugin's Config
+		// This is required for computing a diff that takes defaults into account
+		// Defaults are populated by Kong Gateway when a plugin is created and
+		// values are not provided; the diff should not display these values as changes
+		if plugin, ok := e.Obj.(*state.Plugin); ok {
+			pluginCopy := &state.Plugin{
+				Plugin: *plugin.DeepCopy(),
+				Meta:   plugin.Meta,
+			}
+			e.Obj = pluginCopy
+
+			exists, err := utils.WorkspaceExists(ctx, sc.kongClient)
+			if err != nil && exists {
+				var schema map[string]interface{}
+				schema, err = sc.kongClient.Plugins.GetFullSchema(ctx, pluginCopy.Plugin.Name)
+				if err != nil {
+					return nil, err
+				}
+
+				if err := kong.FillPluginsDefaults(&pluginCopy.Plugin, schema); err != nil {
+					return nil, fmt.Errorf("failed filling plugin defaults: %w", err)
+				}
+			}
+		}
+
 		c := e.Obj.(state.ConsoleString)
 		objDiff := map[string]interface{}{
 			"old": e.OldObj,
@@ -679,8 +708,8 @@ func (sc *Syncer) Solve(ctx context.Context, parallelism int, dry bool, isJSONOu
 
 		if !dry {
 			// sync mode
-			// fire the request to Kong
-			result, err = sc.processor.Do(ctx, e.Kind, e.Op, e)
+			// fire the request to Kong; Pass the original event, with the unchanged configuration.
+			result, err = sc.processor.Do(ctx, originalE.Kind, originalE.Op, originalE)
 			// TODO https://github.com/Kong/go-database-reconciler/issues/22 this does not print, but is switched on
 			// sc.enableEntityActions because the existing behavior returns a result from the anon Run function.
 			// Refactoring should use only the channel and simplify the return, probably to just an error (all the other
diff --git a/pkg/file/builder.go b/pkg/file/builder.go
index c0bf27f..d24687b 100644
--- a/pkg/file/builder.go
+++ b/pkg/file/builder.go
@@ -1443,44 +1443,6 @@ func (b *stateBuilder) ingestRoute(r FRoute) error {
 	return nil
 }
 
-func (b *stateBuilder) getPluginSchema(pluginName string) (map[string]interface{}, error) {
-	var schema map[string]interface{}
-
-	// lookup in cache
-	if schema, ok := b.schemasCache[pluginName]; ok {
-		return schema, nil
-	}
-
-	exists, err := utils.WorkspaceExists(b.ctx, b.client)
-	if err != nil {
-		return nil, fmt.Errorf("ensure workspace exists: %w", err)
-	}
-	if !exists {
-		return schema, ErrWorkspaceNotFound
-	}
-
-	schema, err = b.client.Plugins.GetFullSchema(b.ctx, &pluginName)
-	if err != nil {
-		return schema, err
-	}
-	b.schemasCache[pluginName] = schema
-	return schema, nil
-}
-
-func (b *stateBuilder) addPluginDefaults(plugin *FPlugin) error {
-	if b.client == nil {
-		return nil
-	}
-	schema, err := b.getPluginSchema(*plugin.Name)
-	if err != nil {
-		if errors.Is(err, ErrWorkspaceNotFound) {
-			return nil
-		}
-		return fmt.Errorf("retrieve schema for %v from Kong: %w", *plugin.Name, err)
-	}
-	return kong.FillPluginsDefaults(&plugin.Plugin, schema)
-}
-
 func (b *stateBuilder) ingestPlugins(plugins []FPlugin) error {
 	for _, p := range plugins {
 		p := p
@@ -1504,9 +1466,6 @@ func (b *stateBuilder) ingestPlugins(plugins []FPlugin) error {
 		if err != nil {
 			return err
 		}
-		if err := b.addPluginDefaults(&p); err != nil {
-			return fmt.Errorf("add defaults to plugin '%v': %w", *p.Name, err)
-		}
 		utils.MustMergeTags(&p, b.selectTags)
 		if plugin != nil {
 			p.Plugin.CreatedAt = plugin.CreatedAt