diff --git a/proxy/service.py b/proxy/service.py
index 7ad3bc9..c69b467 100644
--- a/proxy/service.py
+++ b/proxy/service.py
@@ -1164,7 +1164,11 @@ def set_deployment_schedule(deployment_id: str, status: str) -> None:
         del schedule["updated"]
         del schedule["deployment_id"]
         schedule["active"] = status == "active"
-        prefect_patch(f"deployments/{deployment_id}", {"schedules": [schedule]})
+
+        prefect_patch(
+            f"deployments/{deployment_id}",
+            {"schedules": [schedule], "paused": status == "inactive"},
+        )
 
     return None
 
diff --git a/tests/test_service.py b/tests/test_service.py
index b762621..106a906 100644
--- a/tests/test_service.py
+++ b/tests/test_service.py
@@ -1518,7 +1518,7 @@ def test_set_deployment_schedule_result_1():
         set_deployment_schedule(deployment_id, "active")
         mock_patch.assert_called_once_with(
             f"deployments/{deployment_id}",
-            {"schedules": [{"schedule": {"cron": "0 0 * * *"}, "active": True}]},
+            {"schedules": [{"schedule": {"cron": "0 0 * * *"}, "active": True}], "paused": False},
         )
 
 
@@ -1542,7 +1542,7 @@ def test_set_deployment_schedule_result_2():
         set_deployment_schedule(deployment_id, "inactive")
         mock_patch.assert_called_once_with(
             f"deployments/{deployment_id}",
-            {"schedules": [{"schedule": {"cron": "0 0 * * *"}, "active": False}]},
+            {"schedules": [{"schedule": {"cron": "0 0 * * *"}, "active": False}], "paused": True},
         )
 
 
diff --git a/uv.lock b/uv.lock
index 30d47e4..af02612 100644
--- a/uv.lock
+++ b/uv.lock
@@ -2015,8 +2015,8 @@ wheels = [
 
 [[package]]
 name = "prefect-airbyte"
-version = "0.4"
-source = { git = "https://github.com/Ishankoradia/prefect-airbyte.git?rev=v0.4#6b0fa81e8f38890097de0cac0cfd7ce0f144e280" }
+version = "0.5"
+source = { git = "https://github.com/Ishankoradia/prefect-airbyte.git?rev=v0.5#14bd1d0978c728c8364ed72150cecf61396f44b8" }
 dependencies = [
     { name = "prefect" },
     { name = "tenacity" },
@@ -2362,7 +2362,7 @@ requires-dist = [
     { name = "pluggy", specifier = "==1.5.0" },
     { name = "pre-commit", specifier = "==4.2.0" },
     { name = "prefect", specifier = "==3.1.15" },
-    { name = "prefect-airbyte", git = "https://github.com/Ishankoradia/prefect-airbyte.git?rev=v0.4" },
+    { name = "prefect-airbyte", git = "https://github.com/Ishankoradia/prefect-airbyte.git?rev=v0.5" },
     { name = "prefect-dbt", specifier = "==0.6.6" },
     { name = "prefect-gcp", specifier = "==0.6.4" },
     { name = "prefect-github", specifier = "==0.3.1" },