diff --git a/staging/src/k8s.io/apiextensions-apiserver/pkg/controller/openapi/builder/builder_test.go b/staging/src/k8s.io/apiextensions-apiserver/pkg/controller/openapi/builder/builder_test.go
index 78de23af7ec..fac53c71b58 100644
--- a/staging/src/k8s.io/apiextensions-apiserver/pkg/controller/openapi/builder/builder_test.go
+++ b/staging/src/k8s.io/apiextensions-apiserver/pkg/controller/openapi/builder/builder_test.go
@@ -172,8 +172,7 @@ func TestNewBuilder(t *testing.T) {
     },
     "embedded-object": {
       "x-kubernetes-embedded-resource": true,
-      "x-kubernetes-preserve-unknown-fields": true,
-      "type":"object"
+      "x-kubernetes-preserve-unknown-fields": true
     }
   },
   "x-kubernetes-group-version-kind":[{"group":"bar.k8s.io","kind":"Foo","version":"v1"}]
diff --git a/staging/src/k8s.io/apiextensions-apiserver/pkg/controller/openapi/v2/conversion.go b/staging/src/k8s.io/apiextensions-apiserver/pkg/controller/openapi/v2/conversion.go
index 320529bf68d..ae5b86a1932 100644
--- a/staging/src/k8s.io/apiextensions-apiserver/pkg/controller/openapi/v2/conversion.go
+++ b/staging/src/k8s.io/apiextensions-apiserver/pkg/controller/openapi/v2/conversion.go
@@ -81,6 +81,13 @@ func ToStructuralOpenAPIV2(in *structuralschema.Structural) *structuralschema.St
 				changed = true
 			}
 
+			if s.XPreserveUnknownFields && s.Type == "object" {
+				// similar as above, kubectl doesn't properly handle object fields with `x-kubernetes-preserve-unknown-fields: true`
+				s.Type = ""
+
+				changed = true
+			}
+
 			for f, fs := range s.Properties {
 				if fs.Nullable {
 					s.ValueValidation.Required, changed = filterOut(s.ValueValidation.Required, f)
diff --git a/staging/src/k8s.io/apiextensions-apiserver/pkg/controller/openapi/v2/conversion_test.go b/staging/src/k8s.io/apiextensions-apiserver/pkg/controller/openapi/v2/conversion_test.go
index eacb92efb98..7a8cb5aabe6 100644
--- a/staging/src/k8s.io/apiextensions-apiserver/pkg/controller/openapi/v2/conversion_test.go
+++ b/staging/src/k8s.io/apiextensions-apiserver/pkg/controller/openapi/v2/conversion_test.go
@@ -666,8 +666,7 @@ func Test_ConvertJSONSchemaPropsToOpenAPIv2SchemaByType(t *testing.T) {
 					},
 				},
 			},
-			expected: withVendorExtensions(new(spec.Schema), "x-kubernetes-preserve-unknown-fields", true).
-				Typed("object", ""),
+			expected: withVendorExtensions(new(spec.Schema), "x-kubernetes-preserve-unknown-fields", true),
 		},
 	}
 
diff --git a/test/e2e/apimachinery/crd_publish_openapi.go b/test/e2e/apimachinery/crd_publish_openapi.go
index d4e141bd47e..5cae2d273ab 100644
--- a/test/e2e/apimachinery/crd_publish_openapi.go
+++ b/test/e2e/apimachinery/crd_publish_openapi.go
@@ -231,7 +231,7 @@ var _ = SIGDescribe("CustomResourcePublishOpenAPI [Privileged:ClusterAdmin]", fu
 		ns := fmt.Sprintf("--namespace=%v", f.Namespace.Name)
 
 		ginkgo.By("client-side validation (kubectl create and apply) allows request with any unknown properties")
-		randomCR := fmt.Sprintf(`{%s,"spec":{"b":[{"c":"d"}]}}`, meta)
+		randomCR := fmt.Sprintf(`{%s,"spec":{"a":null,"b":[{"c":"d"}]}}`, meta)
 		if _, err := framework.RunKubectlInput(f.Namespace.Name, randomCR, ns, "create", "-f", "-"); err != nil {
 			framework.Failf("failed to create random CR %s for CRD that allows unknown properties in a nested object: %v", randomCR, err)
 		}