diff --git a/go.mod b/go.mod
index a1c072521..3586aa367 100644
--- a/go.mod
+++ b/go.mod
@@ -3,7 +3,7 @@ module github.com/PagerDuty/terraform-provider-pagerduty
 go 1.20
 
 require (
-	github.com/PagerDuty/go-pagerduty v1.8.1-0.20241104145658-2a0050d437ac
+	github.com/PagerDuty/go-pagerduty v1.8.1-0.20241111225923-0ef8f340dd3c
 	github.com/hashicorp/go-cty v1.4.1-0.20200414143053-d3edf31b6320
 	github.com/hashicorp/go-version v1.6.0
 	github.com/hashicorp/hc-install v0.6.2
diff --git a/go.sum b/go.sum
index a710df66d..e62897a25 100644
--- a/go.sum
+++ b/go.sum
@@ -1,11 +1,7 @@
 dario.cat/mergo v1.0.0 h1:AGCNq9Evsj31mOgNPcLyXc+4PNABt905YmuqPYYpBWk=
 github.com/Microsoft/go-winio v0.6.1 h1:9/kr64B9VUZrLm5YYwbGtUJnMgqWVOdUAXu6Migciow=
-github.com/PagerDuty/go-pagerduty v1.8.1-0.20241002154647-8ceedfd04d88 h1:y/icahuphX4xGMW4nLN+Bl4MbFUU4rEA9spwgcPIDJk=
-github.com/PagerDuty/go-pagerduty v1.8.1-0.20241002154647-8ceedfd04d88/go.mod h1:ilimTqwHSBjmvKeYA/yayDBZvzf/CX4Pwa9Qbhekzok=
-github.com/PagerDuty/go-pagerduty v1.8.1-0.20241025123418-0c3fc7303be4 h1:egkL94FTYFe3GfnJMpY2aAj6tA2wXXYRfGPJPfC90BQ=
-github.com/PagerDuty/go-pagerduty v1.8.1-0.20241025123418-0c3fc7303be4/go.mod h1:ilimTqwHSBjmvKeYA/yayDBZvzf/CX4Pwa9Qbhekzok=
-github.com/PagerDuty/go-pagerduty v1.8.1-0.20241104145658-2a0050d437ac h1:GtkaaoQH3DSWt9hxC71pAp31pyhKFxU1nBfa5iZWecE=
-github.com/PagerDuty/go-pagerduty v1.8.1-0.20241104145658-2a0050d437ac/go.mod h1:ilimTqwHSBjmvKeYA/yayDBZvzf/CX4Pwa9Qbhekzok=
+github.com/PagerDuty/go-pagerduty v1.8.1-0.20241111225923-0ef8f340dd3c h1:Bnw38sqsVdQVOiuTealk57GnuRb86zyd5v/XW3BcPl8=
+github.com/PagerDuty/go-pagerduty v1.8.1-0.20241111225923-0ef8f340dd3c/go.mod h1:ilimTqwHSBjmvKeYA/yayDBZvzf/CX4Pwa9Qbhekzok=
 github.com/ProtonMail/go-crypto v0.0.0-20230923063757-afb1ddc0824c h1:kMFnB0vCcX7IL/m9Y5LO+KQYv+t1CQOiFe6+SV2J7bE=
 github.com/ProtonMail/go-crypto v0.0.0-20230923063757-afb1ddc0824c/go.mod h1:EjAoLdwvbIOoOQr3ihjnSoLZRtE8azugULFRteWMNc0=
 github.com/agext/levenshtein v1.2.3 h1:YB2fHEn0UJagG8T1rrWknE3ZQzWM06O8AMAatNn7lmo=
diff --git a/pagerdutyplugin/resource_pagerduty_alert_grouping_setting_test.go b/pagerdutyplugin/resource_pagerduty_alert_grouping_setting_test.go
index abee54526..cec9f0681 100644
--- a/pagerdutyplugin/resource_pagerduty_alert_grouping_setting_test.go
+++ b/pagerdutyplugin/resource_pagerduty_alert_grouping_setting_test.go
@@ -213,6 +213,28 @@ func TestAccPagerDutyAlertGroupingSetting_Time_WithTimeoutZero(t *testing.T) {
 	})
 }
 
+func TestAccPagerDutyAlertGroupingSetting_serviceNotExist(t *testing.T) {
+	ref := fmt.Sprint("tf-", acctest.RandString(5))
+	service := fmt.Sprint("tf-", acctest.RandString(5))
+	name := fmt.Sprintf("%s grouping", service)
+
+	resource.Test(t, resource.TestCase{
+		PreCheck:                 func() { testAccPreCheck(t) },
+		ProtoV5ProviderFactories: testAccProtoV5ProviderFactories(),
+		CheckDestroy:             testAccCheckPagerDutyAlertGroupingSettingDestroy,
+		Steps: []resource.TestStep{
+			{
+				Config: testAccPagerDutyAlertGroupingSettingServiceNotExist(ref, service, name),
+				Check: resource.ComposeTestCheckFunc(
+					testAccCheckPagerDutyAlertGroupingSettingExists("pagerduty_alert_grouping_setting."+ref),
+					resource.TestCheckResourceAttr("pagerduty_alert_grouping_setting."+ref, "name", name),
+					resource.TestCheckResourceAttrSet("pagerduty_alert_grouping_setting."+ref, "description"),
+				),
+			},
+		},
+	})
+}
+
 func testAccCheckPagerDutyAlertGroupingSettingDestroy(s *terraform.State) error {
 	for _, r := range s.RootModule().Resources {
 		if r.Type != "pagerduty_alert_grouping_setting" {
@@ -407,3 +429,37 @@ resource "pagerduty_alert_grouping_setting" "foo" {
 	services = [pagerduty_service.foo.id]
 }`, service1, name)
 }
+
+func testAccPagerDutyAlertGroupingSettingServiceNotExist(ref, service, name string) string {
+	return fmt.Sprintf(`
+data "pagerduty_escalation_policy" "default" {
+  name = "Default"
+}
+
+resource "pagerduty_service" "foo" {
+  name                    = "%[2]s"
+  auto_resolve_timeout    = "null"
+  acknowledgement_timeout = 1800
+  escalation_policy       = data.pagerduty_escalation_policy.default.id
+  alert_creation          = "create_alerts_and_incidents"
+
+  auto_pause_notifications_parameters {
+    enabled = true
+    timeout = 120
+  }
+
+  incident_urgency_rule {
+    type    = "constant"
+    urgency = "high"
+  }
+}
+
+resource "pagerduty_alert_grouping_setting" "%[1]s" {
+  name     = "%[3]s"
+  services = [pagerduty_service.foo.id]
+  type     = "intelligent"
+  config {
+    time_window = 300
+  }
+}`, ref, service, name)
+}
diff --git a/vendor/github.com/PagerDuty/go-pagerduty/alert_grouping_setting.go b/vendor/github.com/PagerDuty/go-pagerduty/alert_grouping_setting.go
index c7e0cb3c7..a7f08180f 100644
--- a/vendor/github.com/PagerDuty/go-pagerduty/alert_grouping_setting.go
+++ b/vendor/github.com/PagerDuty/go-pagerduty/alert_grouping_setting.go
@@ -107,6 +107,12 @@ func (c *Client) ListAlertGroupingSettings(ctx context.Context, o ListAlertGroup
 	}
 
 	resp, err := c.get(ctx, "/alert_grouping_settings?"+v.Encode(), nil)
+
+	// If there are no alert grouping settings, return an empty response.
+	if resp.StatusCode == 404 {
+		return &ListAlertGroupingSettingsResponse{}, nil
+	}
+
 	if err != nil {
 		return nil, err
 	}
diff --git a/vendor/modules.txt b/vendor/modules.txt
index bc372a9cb..5e46b9f90 100644
--- a/vendor/modules.txt
+++ b/vendor/modules.txt
@@ -1,4 +1,4 @@
-# github.com/PagerDuty/go-pagerduty v1.8.1-0.20241104145658-2a0050d437ac
+# github.com/PagerDuty/go-pagerduty v1.8.1-0.20241111225923-0ef8f340dd3c
 ## explicit; go 1.19
 github.com/PagerDuty/go-pagerduty
 # github.com/ProtonMail/go-crypto v0.0.0-20230923063757-afb1ddc0824c