diff --git a/CHANGELOG.next.asciidoc b/CHANGELOG.next.asciidoc
index 536c5627985..e82fc6f4a18 100644
--- a/CHANGELOG.next.asciidoc
+++ b/CHANGELOG.next.asciidoc
@@ -98,6 +98,7 @@ https://github.com/elastic/beats/compare/v8.8.1\...main[Check the HEAD diff]
 - Updated Websocket input title to align with existing inputs {pull}39006[39006]
 - Fix publication of group data from the Okta entity analytics provider. {pull}40681[40681]
 - Ensure netflow custom field configuration is applied. {issue}40735[40735] {pull}40730[40730]
+- Fix replace processor handling of zero string replacement validation. {pull}40751[40751]
 
 *Heartbeat*
 
diff --git a/libbeat/processors/actions/replace.go b/libbeat/processors/actions/replace.go
index e168e644181..48feaf193e5 100644
--- a/libbeat/processors/actions/replace.go
+++ b/libbeat/processors/actions/replace.go
@@ -45,7 +45,14 @@ type replaceStringConfig struct {
 type replaceConfig struct {
 	Field       string         `config:"field" validate:"required"`
 	Pattern     *regexp.Regexp `config:"pattern" validate:"required"`
-	Replacement string         `config:"replacement" validate:"required"`
+	Replacement *string        `config:"replacement"`
+}
+
+func (c replaceConfig) Validate() error {
+	if c.Replacement == nil {
+		return errors.New("missing replacement")
+	}
+	return nil
 }
 
 func init() {
@@ -82,7 +89,7 @@ func (f *replaceString) Run(event *beat.Event) (*beat.Event, error) {
 	}
 
 	for _, field := range f.config.Fields {
-		err := f.replaceField(field.Field, field.Pattern, field.Replacement, event)
+		err := f.replaceField(field.Field, field.Pattern, *field.Replacement, event)
 		if err != nil {
 			errMsg := fmt.Errorf("Failed to replace fields in processor: %w", err)
 			f.log.Debugw(errMsg.Error(), logp.TypeKey, logp.EventType)
diff --git a/libbeat/processors/actions/replace_test.go b/libbeat/processors/actions/replace_test.go
index 7fd6c8def13..3bf9e559890 100644
--- a/libbeat/processors/actions/replace_test.go
+++ b/libbeat/processors/actions/replace_test.go
@@ -45,7 +45,7 @@ func TestBadConfig(t *testing.T) {
 		},
 		{
 			name:        "no-regex",
-			cfg:         replaceStringConfig{Fields: []replaceConfig{{Field: "message", Replacement: "new_message"}}},
+			cfg:         replaceStringConfig{Fields: []replaceConfig{{Field: "message", Replacement: ptr("new_message")}}},
 			shouldError: true,
 		},
 		{
@@ -56,7 +56,7 @@ func TestBadConfig(t *testing.T) {
 		{
 			name: "valid-then-invalid",
 			cfg: replaceStringConfig{Fields: []replaceConfig{
-				{Field: "message", Pattern: regexp.MustCompile(`message`), Replacement: "new_message"},
+				{Field: "message", Pattern: regexp.MustCompile(`message`), Replacement: ptr("new_message")},
 				{Field: "message", Pattern: regexp.MustCompile(`message`)},
 			},
 			},
@@ -64,7 +64,12 @@ func TestBadConfig(t *testing.T) {
 		},
 		{
 			name:        "no-error",
-			cfg:         replaceStringConfig{Fields: []replaceConfig{{Field: "message", Replacement: "new_message", Pattern: regexp.MustCompile(`message`)}}},
+			cfg:         replaceStringConfig{Fields: []replaceConfig{{Field: "message", Replacement: ptr("new_message"), Pattern: regexp.MustCompile(`message`)}}},
+			shouldError: false,
+		},
+		{
+			name:        "no-error zero string",
+			cfg:         replaceStringConfig{Fields: []replaceConfig{{Field: "message", Replacement: ptr(""), Pattern: regexp.MustCompile(`message`)}}},
 			shouldError: false,
 		},
 	}
@@ -102,7 +107,7 @@ func TestReplaceRun(t *testing.T) {
 				{
 					Field:       "f",
 					Pattern:     regexp.MustCompile(`a`),
-					Replacement: "b",
+					Replacement: ptr("b"),
 				},
 			},
 			Input: mapstr.M{
@@ -115,13 +120,32 @@ func TestReplaceRun(t *testing.T) {
 			IgnoreMissing: false,
 			FailOnError:   true,
 		},
+		{
+			description: "replace with zero",
+			Fields: []replaceConfig{
+				{
+					Field:       "f",
+					Pattern:     regexp.MustCompile(`a`),
+					Replacement: ptr(""),
+				},
+			},
+			Input: mapstr.M{
+				"f": "abc",
+			},
+			Output: mapstr.M{
+				"f": "bc",
+			},
+			error:         false,
+			IgnoreMissing: false,
+			FailOnError:   true,
+		},
 		{
 			description: "Add one more hierarchy to event",
 			Fields: []replaceConfig{
 				{
 					Field:       "f.b",
 					Pattern:     regexp.MustCompile(`a`),
-					Replacement: "b",
+					Replacement: ptr("b"),
 				},
 			},
 			Input: mapstr.M{
@@ -144,12 +168,12 @@ func TestReplaceRun(t *testing.T) {
 				{
 					Field:       "f",
 					Pattern:     regexp.MustCompile(`a.*c`),
-					Replacement: "cab",
+					Replacement: ptr("cab"),
 				},
 				{
 					Field:       "g",
 					Pattern:     regexp.MustCompile(`ef`),
-					Replacement: "oor",
+					Replacement: ptr("oor"),
 				},
 			},
 			Input: mapstr.M{
@@ -170,12 +194,12 @@ func TestReplaceRun(t *testing.T) {
 				{
 					Field:       "f",
 					Pattern:     regexp.MustCompile(`abc`),
-					Replacement: "xyz",
+					Replacement: ptr("xyz"),
 				},
 				{
 					Field:       "g",
 					Pattern:     regexp.MustCompile(`def`),
-					Replacement: "",
+					Replacement: nil,
 				},
 			},
 			Input: mapstr.M{
@@ -216,11 +240,13 @@ func TestReplaceRun(t *testing.T) {
 				assert.Error(t, err)
 			}
 
-			assert.True(t, reflect.DeepEqual(newEvent.Fields, test.Output))
+			assert.Equal(t, newEvent.Fields, test.Output)
 		})
 	}
 }
 
+func ptr[T any](v T) *T { return &v }
+
 func TestReplaceField(t *testing.T) {
 	var tests = []struct {
 		Field         string
@@ -322,7 +348,7 @@ func TestReplaceField(t *testing.T) {
 					{
 						Field:       "@metadata.f",
 						Pattern:     regexp.MustCompile(`a`),
-						Replacement: "b",
+						Replacement: ptr("b"),
 					},
 				},
 			},