diff --git a/airflow-core/src/airflow/jobs/triggerer_job_runner.py b/airflow-core/src/airflow/jobs/triggerer_job_runner.py
index 8d2bdf99795e0..512f8a4f0e6aa 100644
--- a/airflow-core/src/airflow/jobs/triggerer_job_runner.py
+++ b/airflow-core/src/airflow/jobs/triggerer_job_runner.py
@@ -875,8 +875,16 @@ async def create_triggers(self):
             await asyncio.sleep(0)
 
             try:
-                kwargs = Trigger._decrypt_kwargs(workload.encrypted_kwargs)
-                trigger_instance = trigger_class(**kwargs)
+                from airflow.serialization.serialized_objects import smart_decode_trigger_kwargs
+
+                # Decrypt and clean trigger kwargs before for execution
+                # Note: We only clean up serialization artifacts (__var, __type keys) here,
+                # not in `_decrypt_kwargs` because it is used during hash comparison in
+                # add_asset_trigger_references and could lead to adverse effects like hash mismatches
+                # that could cause None values in collections.
+                kw = Trigger._decrypt_kwargs(workload.encrypted_kwargs)
+                deserialised_kwargs = {k: smart_decode_trigger_kwargs(v) for k, v in kw.items()}
+                trigger_instance = trigger_class(**deserialised_kwargs)
             except TypeError as err:
                 self.log.error("Trigger failed to inflate", error=err)
                 self.failed_triggers.append((trigger_id, err))
diff --git a/airflow-core/src/airflow/serialization/serialized_objects.py b/airflow-core/src/airflow/serialization/serialized_objects.py
index f3e49c4fabd34..e3cf0f019d5d1 100644
--- a/airflow-core/src/airflow/serialization/serialized_objects.py
+++ b/airflow-core/src/airflow/serialization/serialized_objects.py
@@ -337,19 +337,20 @@ def decode_asset_condition(var: dict[str, Any]) -> BaseAsset:
     raise ValueError(f"deserialization not implemented for DAT {dat!r}")
 
 
-def decode_asset(var: dict[str, Any]):
-    def _smart_decode_trigger_kwargs(d):
-        """
-        Slightly clean up kwargs for display.
+def smart_decode_trigger_kwargs(d):
+    """
+    Slightly clean up kwargs for display or execution.
 
-        This detects one level of BaseSerialization and tries to deserialize the
-        content, removing some __type __var ugliness when the value is displayed
-        in UI to the user.
-        """
-        if not isinstance(d, dict) or Encoding.TYPE not in d:
-            return d
-        return BaseSerialization.deserialize(d)
+    This detects one level of BaseSerialization and tries to deserialize the
+    content, removing some __type __var ugliness when the value is displayed
+    in UI to the user and/or while execution.
+    """
+    if not isinstance(d, dict) or Encoding.TYPE not in d:
+        return d
+    return BaseSerialization.deserialize(d)
 
+
+def decode_asset(var: dict[str, Any]):
     watchers = var.get("watchers", [])
     return Asset(
         name=var["name"],
@@ -361,7 +362,7 @@ def _smart_decode_trigger_kwargs(d):
                 name=watcher["name"],
                 trigger={
                     "classpath": watcher["trigger"]["classpath"],
-                    "kwargs": _smart_decode_trigger_kwargs(watcher["trigger"]["kwargs"]),
+                    "kwargs": smart_decode_trigger_kwargs(watcher["trigger"]["kwargs"]),
                 },
             )
             for watcher in watchers
diff --git a/airflow-core/tests/unit/jobs/test_triggerer_job.py b/airflow-core/tests/unit/jobs/test_triggerer_job.py
index 08e08f08c4fcb..dd1f2b174c838 100644
--- a/airflow-core/tests/unit/jobs/test_triggerer_job.py
+++ b/airflow-core/tests/unit/jobs/test_triggerer_job.py
@@ -326,6 +326,51 @@ async def test_invalid_trigger(self, supervisor_builder):
         assert trigger_id == 1
         assert traceback[-1] == "ModuleNotFoundError: No module named 'fake'\n"
 
+    @pytest.mark.asyncio
+    async def test_trigger_kwargs_serialization_cleanup(self, session):
+        """
+        Test that trigger kwargs are properly cleaned of serialization artifacts
+        (__var, __type keys).
+        """
+        from airflow.serialization.serialized_objects import BaseSerialization
+
+        kw = {"simple": "test", "tuple": (), "dict": {}, "list": []}
+
+        serialized_kwargs = BaseSerialization.serialize(kw)
+
+        trigger_orm = Trigger(classpath="airflow.triggers.testing.SuccessTrigger", kwargs=serialized_kwargs)
+        session.add(trigger_orm)
+        session.commit()
+
+        stored_kwargs = trigger_orm.kwargs
+        assert stored_kwargs == {
+            "Encoding.TYPE": "dict",
+            "Encoding.VAR": {
+                "dict": {"Encoding.TYPE": "dict", "Encoding.VAR": {}},
+                "list": [],
+                "simple": "test",
+                "tuple": {"Encoding.TYPE": "tuple", "Encoding.VAR": []},
+            },
+        }
+
+        runner = TriggerRunner()
+        runner.to_create.append(
+            workloads.RunTrigger.model_construct(
+                id=trigger_orm.id,
+                ti=None,
+                classpath=trigger_orm.classpath,
+                encrypted_kwargs=trigger_orm.encrypted_kwargs,
+            )
+        )
+
+        await runner.create_triggers()
+        assert trigger_orm.id in runner.triggers
+        trigger_instance = runner.triggers[trigger_orm.id]["task"]
+
+        # The test passes if no exceptions were raised during trigger creation
+        trigger_instance.cancel()
+        await runner.cleanup_finished_triggers()
+
 
 @pytest.mark.asyncio
 async def test_trigger_create_race_condition_38599(session, supervisor_builder):