diff --git a/scripts/tools/zap/tests/outputs/all-clusters-app/app-templates/endpoint_config.h b/scripts/tools/zap/tests/outputs/all-clusters-app/app-templates/endpoint_config.h
index a28eb56c6eb299..6ea480e199be51 100644
--- a/scripts/tools/zap/tests/outputs/all-clusters-app/app-templates/endpoint_config.h
+++ b/scripts/tools/zap/tests/outputs/all-clusters-app/app-templates/endpoint_config.h
@@ -2217,6 +2217,7 @@
     };                                                                                                                             \
     const EmberAfGenericClusterFunction chipFuncArrayThermostatServer[] = {                                                        \
         (EmberAfGenericClusterFunction) emberAfThermostatClusterServerInitCallback,                                                \
+        (EmberAfGenericClusterFunction) MatterThermostatClusterServerAttributeChangedCallback,                                     \
         (EmberAfGenericClusterFunction) MatterThermostatClusterServerShutdownCallback,                                             \
         (EmberAfGenericClusterFunction) MatterThermostatClusterServerPreAttributeChangedCallback,                                  \
     };                                                                                                                             \
@@ -3756,7 +3757,7 @@
       .attributes = ZAP_ATTRIBUTE_INDEX(616), \
       .attributeCount = 26, \
       .clusterSize = 72, \
-      .mask = ZAP_CLUSTER_MASK(SERVER) | ZAP_CLUSTER_MASK(INIT_FUNCTION) | ZAP_CLUSTER_MASK(SHUTDOWN_FUNCTION) | ZAP_CLUSTER_MASK(PRE_ATTRIBUTE_CHANGED_FUNCTION), \
+      .mask = ZAP_CLUSTER_MASK(SERVER) | ZAP_CLUSTER_MASK(INIT_FUNCTION) | ZAP_CLUSTER_MASK(ATTRIBUTE_CHANGED_FUNCTION) | ZAP_CLUSTER_MASK(SHUTDOWN_FUNCTION) | ZAP_CLUSTER_MASK(PRE_ATTRIBUTE_CHANGED_FUNCTION), \
       .functions = chipFuncArrayThermostatServer, \
       .acceptedCommandList = ZAP_GENERATED_COMMANDS_INDEX( 241 ), \
       .generatedCommandList = ZAP_GENERATED_COMMANDS_INDEX( 246 ), \
diff --git a/src/app/clusters/thermostat-server/thermostat-server.cpp b/src/app/clusters/thermostat-server/thermostat-server.cpp
index fe8ccf8aab3cf0..9e6e0f074d5e52 100644
--- a/src/app/clusters/thermostat-server/thermostat-server.cpp
+++ b/src/app/clusters/thermostat-server/thermostat-server.cpp
@@ -468,6 +468,52 @@ void ThermostatAttrAccess::OnFabricRemoved(const FabricTable & fabricTable, Fabr
     }
 }
 
+void MatterThermostatClusterServerAttributeChangedCallback(const ConcreteAttributePath & attributePath)
+{
+    uint32_t flags;
+    if (FeatureMap::Get(attributePath.mEndpointId, &flags) != Status::Success)
+    {
+        ChipLogError(Zcl, "MatterThermostatClusterServerAttributeChangedCallback: could not get feature flags");
+        return;
+    }
+
+    auto featureMap = BitMask<Feature, uint32_t>(flags);
+    if (!featureMap.Has(Feature::kPresets))
+    {
+        // This server does not support presets, so nothing to do
+        return;
+    }
+
+    bool occupied = true;
+    if (featureMap.Has(Feature::kOccupancy))
+    {
+        BitMask<OccupancyBitmap, uint8_t> occupancy;
+        if (Occupancy::Get(attributePath.mEndpointId, &occupancy) == Status::Success)
+        {
+            occupied = occupancy.Has(OccupancyBitmap::kOccupied);
+        }
+    }
+
+    bool clearActivePreset = false;
+    switch (attributePath.mAttributeId)
+    {
+    case OccupiedHeatingSetpoint::Id:
+    case OccupiedCoolingSetpoint::Id:
+        clearActivePreset = occupied;
+        break;
+    case UnoccupiedHeatingSetpoint::Id:
+    case UnoccupiedCoolingSetpoint::Id:
+        clearActivePreset = !occupied;
+        break;
+    }
+    if (!clearActivePreset)
+    {
+        return;
+    }
+    ChipLogProgress(Zcl, "Setting active preset to null");
+    gThermostatAttrAccess.SetActivePreset(attributePath.mEndpointId, std::nullopt);
+}
+
 } // namespace Thermostat
 } // namespace Clusters
 } // namespace app
@@ -762,6 +808,11 @@ MatterThermostatClusterServerPreAttributeChangedCallback(const app::ConcreteAttr
     }
 }
 
+void MatterThermostatClusterServerAttributeChangedCallback(const ConcreteAttributePath & attributePath)
+{
+    Thermostat::MatterThermostatClusterServerAttributeChangedCallback(attributePath);
+}
+
 bool emberAfThermostatClusterClearWeeklyScheduleCallback(app::CommandHandler * commandObj,
                                                          const app::ConcreteCommandPath & commandPath,
                                                          const Commands::ClearWeeklySchedule::DecodableType & commandData)
diff --git a/src/app/clusters/thermostat-server/thermostat-server.h b/src/app/clusters/thermostat-server/thermostat-server.h
index cc941cfa766d92..2d365ffd8288d1 100644
--- a/src/app/clusters/thermostat-server/thermostat-server.h
+++ b/src/app/clusters/thermostat-server/thermostat-server.h
@@ -207,6 +207,7 @@ class ThermostatAttrAccess : public chip::app::AttributeAccessInterface, public
     friend void TimerExpiredCallback(System::Layer * systemLayer, void * callbackContext);
 
     friend void MatterThermostatClusterServerShutdownCallback(EndpointId endpoint);
+    friend void MatterThermostatClusterServerAttributeChangedCallback(const chip::app::ConcreteAttributePath & attributePath);
 
     friend bool emberAfThermostatClusterSetActivePresetRequestCallback(
         CommandHandler * commandObj, const ConcreteCommandPath & commandPath,
diff --git a/src/app/common/templates/config-data.yaml b/src/app/common/templates/config-data.yaml
index 660ca0b3aa1df4..61e7c45582268a 100644
--- a/src/app/common/templates/config-data.yaml
+++ b/src/app/common/templates/config-data.yaml
@@ -72,6 +72,7 @@ ClustersWithAttributeChangedFunctions:
     - Pump Configuration and Control
     - Window Covering
     - Fan Control
+    - Thermostat
 
 ClustersWithShutdownFunctions:
     - Barrier Control
diff --git a/src/python_testing/TC_TSTAT_4_2.py b/src/python_testing/TC_TSTAT_4_2.py
index 641c827b388882..56cf356b6b8098 100644
--- a/src/python_testing/TC_TSTAT_4_2.py
+++ b/src/python_testing/TC_TSTAT_4_2.py
@@ -291,6 +291,11 @@ async def test_TC_TSTAT_4_2(self):
             logger.info(f"Rx'd Presets: {presets}")
             asserts.assert_equal(presets, new_presets_with_handle, "Presets were not updated which is not expected")
 
+            # Send the SetActivePresetRequest command
+            await self.send_set_active_preset_handle_request_command(value=b'\x03')
+
+            activePresetHandle = await self.read_single_attribute_check_success(endpoint=endpoint, cluster=cluster, attribute=cluster.Attributes.ActivePresetHandle)
+
         self.step("5")
         if self.pics_guard(self.check_pics("TSTAT.S.F08") and self.check_pics("TSTAT.S.A0050") and self.check_pics("TSTAT.S.Cfe.Rsp")):
 
@@ -327,6 +332,13 @@ async def test_TC_TSTAT_4_2(self):
             # Send the AtomicRequest commit command and expect InvalidInState for presets.
             await self.send_atomic_request_commit_command(expected_overall_status=Status.Failure, expected_preset_status=Status.InvalidInState)
 
+            # Write the occupied cooling setpoint to a different value
+            await self.write_single_attribute(attribute_value=cluster.Attributes.OccupiedCoolingSetpoint(2300), endpoint_id=endpoint)
+
+            activePresetHandle = await self.read_single_attribute_check_success(endpoint=endpoint, cluster=cluster, attribute=cluster.Attributes.ActivePresetHandle)
+            logger.info(f"Rx'd ActivePresetHandle: {activePresetHandle}")
+            asserts.assert_equal(activePresetHandle, NullValue, "Active preset handle was not cleared as expected")
+
         self.step("7")
         if self.pics_guard(self.check_pics("TSTAT.S.F08") and self.check_pics("TSTAT.S.A0050") and self.check_pics("TSTAT.S.Cfe.Rsp")):