diff --git a/server/src-lib/Hasura/RQL/DDL/Schema/Catalog.hs b/server/src-lib/Hasura/RQL/DDL/Schema/Catalog.hs
index 8504f97147db5..f14f4985cad9c 100644
--- a/server/src-lib/Hasura/RQL/DDL/Schema/Catalog.hs
+++ b/server/src-lib/Hasura/RQL/DDL/Schema/Catalog.hs
@@ -6,6 +6,7 @@ module Hasura.RQL.DDL.Schema.Catalog
   , updateTableIsEnumInCatalog
   , updateTableConfig
   , deleteTableFromCatalog
+  , getTableConfig
   ) where
 
 import           Hasura.Prelude
@@ -56,3 +57,11 @@ deleteTableFromCatalog (QualifiedObject sn tn) = liftTx $ Q.unitQE defaultTxErro
     DELETE FROM "hdb_catalog"."hdb_table"
     WHERE table_schema = $1 AND table_name = $2
   |] (sn, tn) False
+
+getTableConfig :: MonadTx m => QualifiedTable -> m TableConfig
+getTableConfig (QualifiedObject sn tn) = liftTx $
+  Q.getAltJ . runIdentity . Q.getRow <$> Q.withQE defaultTxErrorHandler
+    [Q.sql|
+       SELECT configuration::json FROM hdb_catalog.hdb_table
+        WHERE table_schema = $1 AND table_name = $2
+    |] (sn, tn) True
diff --git a/server/src-lib/Hasura/RQL/DDL/Schema/Rename.hs b/server/src-lib/Hasura/RQL/DDL/Schema/Rename.hs
index 919a861e9d295..84223ed427dcd 100644
--- a/server/src-lib/Hasura/RQL/DDL/Schema/Rename.hs
+++ b/server/src-lib/Hasura/RQL/DDL/Schema/Rename.hs
@@ -16,6 +16,7 @@ import qualified Hasura.RQL.DDL.EventTrigger        as DS
 import           Hasura.RQL.DDL.Permission
 import           Hasura.RQL.DDL.Permission.Internal
 import           Hasura.RQL.DDL.Relationship.Types
+import           Hasura.RQL.DDL.Schema.Catalog
 import           Hasura.RQL.Types
 import           Hasura.SQL.Types
 
@@ -97,6 +98,8 @@ renameColInCatalog oCol nCol qt ti = do
     SOTableObj _ (TOTrigger triggerName) ->
       updateColInEventTriggerDef triggerName $ RenameItem qt oCol nCol
     d -> otherDeps errMsg d
+  -- Update custom column names
+  possiblyUpdateCustomColumnNames qt oCol nCol
   where
     errMsg = "cannot rename column " <> oCol <<> " to " <>> nCol
     assertFldNotExists =
@@ -414,6 +417,16 @@ updateColMap fromQT toQT rnCol colMap =
     RenameItem qt oCol nCol = rnCol
     modCol colQt col = if colQt == qt && col == oCol then nCol else col
 
+possiblyUpdateCustomColumnNames
+  :: MonadTx m => QualifiedTable -> PGCol -> PGCol -> m ()
+possiblyUpdateCustomColumnNames qt oCol nCol = do
+  TableConfig customRootFields customColumns <- getTableConfig qt
+  let updatedCustomColumns =
+        M.fromList $ flip map (M.toList customColumns) $
+        \(dbCol, val) -> (, val) $ if dbCol == oCol then nCol else dbCol
+  when (updatedCustomColumns /= customColumns) $
+    updateTableConfig qt $ TableConfig customRootFields updatedCustomColumns
+
 -- database functions for relationships
 getRelDef :: QualifiedTable -> RelName -> Q.TxE QErr Value
 getRelDef (QualifiedObject sn tn) rn =
diff --git a/server/src-lib/Hasura/RQL/DDL/Schema/Table.hs b/server/src-lib/Hasura/RQL/DDL/Schema/Table.hs
index f426453856863..71b1c5c9625f6 100644
--- a/server/src-lib/Hasura/RQL/DDL/Schema/Table.hs
+++ b/server/src-lib/Hasura/RQL/DDL/Schema/Table.hs
@@ -190,9 +190,8 @@ runSetTableCustomFieldsQV2
   => SetTableCustomFields -> m EncJSON
 runSetTableCustomFieldsQV2 (SetTableCustomFields tableName rootFields columnNames) = do
   adminOnly
-  tableInfo <- askTabInfo tableName
+  void $ askTabInfo tableName
   let tableConfig = TableConfig rootFields columnNames
-  validateTableConfig tableInfo tableConfig
   updateTableConfig tableName tableConfig
   buildSchemaCacheFor (MOTable tableName)
   return successMsg
@@ -249,30 +248,31 @@ processTableChanges ti tableDiff = do
   -- process dropped/added columns, because schema reload happens eventually
   sc <- askSchemaCache
   let tn = _tiName ti
-      withOldTabName = do
+      withOldTabName ccn = do
         replaceConstraints tn
         -- replace description
         replaceDescription tn
         -- for all the dropped columns
         procDroppedCols tn
-        procAddedCols tn
-        procAlteredCols sc tn
+        procAddedCols ccn tn
+        procAlteredCols sc ccn tn
 
-      withNewTabName newTN = do
+      withNewTabName ccn newTN = do
         let tnGQL = GS.qualObjectToName newTN
             defGCtx = scDefaultRemoteGCtx sc
         -- check for GraphQL schema conflicts on new name
         GS.checkConflictingNode defGCtx tnGQL
-        void $ procAlteredCols sc tn
+        void $ procAlteredCols sc ccn tn
         -- update new table in catalog
         renameTableInCatalog newTN tn
         return True
 
-  maybe withOldTabName withNewTabName mNewName
+  -- Drop custom column names for dropped columns
+  customColumnNames <- possiblyDropCustomColumnNames tn
+  maybe (withOldTabName customColumnNames) (withNewTabName customColumnNames) mNewName
 
   where
     TableDiff mNewName droppedCols addedCols alteredCols _ constraints descM = tableDiff
-    customFields = _tcCustomColumnNames $ _tiCustomConfig ti
     replaceConstraints tn = flip modTableInCache tn $ \tInfo ->
       return $ tInfo {_tiUniqOrPrimConstraints = constraints}
 
@@ -284,7 +284,20 @@ processTableChanges ti tableDiff = do
         -- Drop the column from the cache
         delColFromCache droppedCol tn
 
-    procAddedCols tn =
+    possiblyDropCustomColumnNames tn = do
+      let TableConfig customFields customColumnNames = _tiCustomConfig ti
+          modifiedCustomColumnNames = foldl' (flip M.delete) customColumnNames droppedCols
+      if modifiedCustomColumnNames == customColumnNames then
+        pure customColumnNames
+      else do
+        let updatedTableConfig =
+              TableConfig customFields modifiedCustomColumnNames
+        flip modTableInCache tn $ \tInfo ->
+          pure $ tInfo{_tiCustomConfig = updatedTableConfig}
+        liftTx $ updateTableConfig tn updatedTableConfig
+        pure modifiedCustomColumnNames
+
+    procAddedCols customColumnNames tn =
       -- In the newly added columns check that there is no conflict with relationships
       forM_ addedCols $ \rawInfo -> do
         let colName = prciName rawInfo
@@ -294,14 +307,14 @@ processTableChanges ti tableDiff = do
             <<> " in table " <> tn <<>
             " as a relationship with the name already exists"
           _ -> do
-            info <- processColumnInfoUsingCache tn customFields rawInfo
+            info <- processColumnInfoUsingCache tn customColumnNames rawInfo
             addColToCache colName info tn
 
-    procAlteredCols sc tn = fmap or $ forM alteredCols $
+    procAlteredCols sc customColumnNames tn = fmap or $ forM alteredCols $
       \( PGRawColumnInfo oldName oldType _ _ _
        , newRawInfo@(PGRawColumnInfo newName newType _ _ _) ) -> do
         let performColumnUpdate = do
-              newInfo <- processColumnInfoUsingCache tn customFields newRawInfo
+              newInfo <- processColumnInfoUsingCache tn customColumnNames newRawInfo
               updColInCache newName newInfo tn
 
         if | oldName /= newName -> renameColInCatalog oldName newName tn ti $> True
@@ -404,6 +417,7 @@ buildTableCache = processTableCache <=< buildRawTableCache
       where
         enumTables = M.mapMaybe _tiEnumValues rawTables
 
+
 -- | “Processes” a 'PGRawColumnInfo' into a 'PGColumnInfo' by resolving its type using a map of known
 -- enum tables.
 processColumnInfo
diff --git a/server/tests-py/queries/v1/set_table_custom_fields/alter_column.yaml b/server/tests-py/queries/v1/set_table_custom_fields/alter_column.yaml
new file mode 100644
index 0000000000000..85a687f92974e
--- /dev/null
+++ b/server/tests-py/queries/v1/set_table_custom_fields/alter_column.yaml
@@ -0,0 +1,47 @@
+- description: Set custom column names
+  url: /v1/query
+  status: 200
+  response:
+    message: success
+  query:
+    type: set_table_custom_fields
+    version: 2
+    args:
+      table: author
+      custom_root_fields:
+        select: Authors
+      custom_column_names:
+        id: AuthorId
+        name: AuthorName
+
+- description: "Rename column 'id' and drop column 'name'"
+  url: /v1/query
+  status: 200
+  response:
+    result_type: CommandOk
+    result: null
+  query:
+    type: run_sql
+    args:
+      sql: |
+        ALTER TABLE author DROP COLUMN name;
+        ALTER TABLE author RENAME COLUMN id to author_id;
+
+- description: Test if custom column names are updated
+  url: /v1/graphql
+  status: 200
+  response:
+    data:
+      Authors:
+      - AuthorId: 1
+        age: 23
+      - AuthorId: 2
+        age: null
+  query:
+    query: |
+      query {
+        Authors{
+          AuthorId
+          age
+        }
+      }
diff --git a/server/tests-py/test_v1_queries.py b/server/tests-py/test_v1_queries.py
index 9688285823aa3..ccb9e0ecce287 100644
--- a/server/tests-py/test_v1_queries.py
+++ b/server/tests-py/test_v1_queries.py
@@ -646,3 +646,6 @@ def test_set_and_unset(self, hge_ctx):
 
     def test_set_invalid_table(self, hge_ctx):
         check_query_f(hge_ctx, self.dir() + '/set_invalid_table.yaml')
+
+    def test_alter_column(self, hge_ctx):
+        check_query_f(hge_ctx, self.dir() + '/alter_column.yaml')